LAKESIDE HOLDING PROVIDES FIRST QUARTER OF FISCAL YEAR 2025 RESULTS

Lakeside Holding Limited (“Lakeside” or the “Company”) (Nasdaq: LSH), a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market operating under the brand American Bear Logistics (“ABL”), today announced financial results for the first quarter of fiscal 2025, ended September 30, 2024.

Q1 2025 Financial Results:

— Total revenues decreased by $66,922, or 1.6%, from $4,148,476 for the three months ended September 30, 2023, to $4,081,554 for the three months ended September 30, 2024. The decrease was primarily driven by a decrease in revenues from our cross-border airfreight solutions, partially offset by an increase in revenues from our cross-border ocean freight solutions.

— Revenue from our cross-border airfreight solutions segment decreased by $0.2 million or 8.2%, from $2.4 million in the three months ended September 30, 2023, to $2.2 million in the three months ended September 30, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 7,816 tons for the three months ended September 30, 2023, to approximately 7,273 tons for the three months ended September 30, 2024.

— Revenue from our cross-border ocean freight solutions segment increased by $0.1 million, or 7.8%, from $1.7 million in the three months ended September 30, 2023, to $1.8 million in the three months ended September 30, 2024. This growth was primarily due to an increase in the volume of cross-border ocean freights processed and forwarded, rising from 1,290 TEU in the three months ended September 30, 2023, to 1,430 TEU in the three months ended September 30, 2024.

Revenues by Customer Geographic

For the three months ended September 30, 2024 2023Revenues Amount % of Amount % of Amount Percentage total total Increase Increase Revenues Revenues (Decrease) (Decrease)Asia-based $ 2,809,636 68.8 % $ 1,694,223 40.8 % $ 1,115,413 65.8 %customersU.S.- 1,271,918 31.2 % 2,454,253 59.2 % (1,182,335) (48.2) %based customersTotal revenues $ 4,081,554 100.0 % $ 4,148,476 100.0 % $ (66,922) (1.6) %

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— Revenues from Asia-based customers increased by $1.1 million, or 65.8%, from $1.7 million in the three months ended September 30, 2023, to $2.8 million in the three months ended September 30, 2024. The increase in revenues from Asia-based customers was driven by a surge in volume from these customers, particularly those serving large e-commerce platforms. This growth reflects the rising demand for our services, a direct result of the overall expansion of the U.S. e-commerce market.

— Revenues from U.S.-based customers decreased by $1.2 million, or 48.2%, from $2.5 million in the three months ended September 30, 2023, to $1.3 million in the same period in 2024.

— Cost of revenues increased by $0.1 million, or 1.7%, from $3.5 million in the three months ended September 30, 2023, to $3.6 million in the three months ended September 30, 2024.

— Gross profit decreased by $0.1 million, or 19.3%, from $0.6 million in the three months ended September 30, 2023, to $0.5 million in the three months ended September 30, 2024. Our gross margin was 12.8% for the three months ended September 30, 2024, compared to 15.6% for the three months ended September 30, 2023. The decline in gross margin was primarily attributable to reduced revenue from the airfreight solutions segment and 2) an increase in our cost of revenue in warehouse services, customs declaration, and terminal charges.

— General and administrative expenses increased by $1.0 million, or 114.7%, from $0.9 million in the three months ended September 30, 2023, to $1.8 million in the three months ended September 30, 2024. These expenses represented 45.0% and 20.6% of our total revenues for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses, professional fees, office and travel expenses, insurance, and entertainment expenses. The increase was primarily attributed to the following:

— Salaries and employee benefits expenses increased by $0.3 million, or 116.9%, from $0.5 million in the three months ended September 30, 2023, to $0.8 million in the three months ended September 30, 2024. Our salaries and employee benefits expenses represented 50.3% and 66.8% of our total general and administrative expenses for the three months ended September 30, 2024, and 2023, respectively. The increase was mainly due to recruiting additional sales, customer services, and back-office support personnel to support our business growth.

— Professional fees increased by $0.3 million, or 1,839.6%, from $17,535 in the three months ended September 30, 2023, to $340,114 in the three months ended September 30, 2024. Our professional fee represented 18.5% and 2.0% of our total general and administrative expenses for the three months ended September 30, 2024 and 2023, respectively. The increase was primarily due to audit fees, legal fees, consulting expenses, investor-related expenses, and financial reporting service fees for the three months ended September 30, 2024. In the three months ended September 30, 2023, most expenses directly related to the offering were not included in professional fees, as they were accounted for as deferred initial public offering assets.

— Net loss was $1.3 million and $0.3 million for the three months ended September 30, 2024 and 2023, respectively.

Management Commentary

Henry Liu, Chairman and Chief Executive Officer of Lakeside, commented, “Our first quarter results for fiscal year 2025 reflect both ongoing growth opportunities and some temporary challenges in our cross-border airfreight segment. Although total revenue declined slightly by 1.6% compared to the same quarter last year, we achieved solid gains in cross-border ocean freight, with segment revenues increasing by 7.8% due to stronger demand from Asia-based customers. This demand surge, particularly among large e-commerce clients, affirms our strategy to focus on expanding high-growth markets and highlights the success of our operational partnerships in the region.”

“As we look ahead, we anticipate a rebound in revenue for the next quarter, driven by increased air freight demand for the upcoming holiday season as online purchases ramp up. We have expanded our production capacity to accommodate higher volumes and are prepared to meet rising customer demand efficiently. Additionally, the continued decrease in ocean freight charges is fueling import and export activities, while the broader shift toward e-commerce underscores the need for timely and competitively priced deliveries. We are confident in our ability to deliver on these needs, backed by our investments in advanced logistics technology and strategic facility expansions, including our new Dallas-Fort Worth site. We believe these efforts position us well for the quarters ahead as we strive to enhance value for our shareholders and customers, ” said Mr. Liu.

Q1 2025 Operational Highlights

— In July, we closed our upsized initial public offering of 1,500,000 shares of common stock at a public offering price of $4.50 per share to the public for a total of $6,750,000 of gross proceeds to the Company before deducting underwriting discounts and offering expenses.

— In July, we entered into a one-year renewable agreement with a leading Asia-based e-commerce platform to provide logistics services, including freight, customs, and parcel handling. The partnership uses advanced API integration to offer real-time supply chain visibility for sellers, enhancing the customer experience.

— In August, we announced a partnership to provide customs brokerage services for a major social media and e-commerce platform, offering real-time logistics data through API integration. This deal streamlines customs clearance and enhances inventory and delivery visibility for platform sellers.

— In September, we announced the launch of a Pick & Pack Fulfillment service for a major Chinese logistics company, offering inventory management and order processing across U.S. hubs. The service improves lead times and optimizes fulfillment efficiency.

— In September, we announced the expansion of our Dallas-Fort Worth operations, more than doubling its space to 46,657 sq. ft. and increasing staff to meet growing demand. The new facility is equipped with advanced technology to improve logistics efficiency and support business growth.

About Lakeside Holding Limited

Lakeside Holding Limited, based inItasca, IL, is a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market, includingChinaandSouth Korea. Operating under the brand American Bear Logistics, we primarily provide customized cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customers' requirements and needs in transporting goods into the U.S. We are an Asian American-owned business rooted in the U.S. with in-depth understanding of both the U.S. and Asian international trading and logistics service markets. Our customers are typicallyAsia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce platforms, and manufacturers to sell and transport consumer and industrial goods made inAsiainto the U.S. For more information, please visithttps://lakeside-holding.com.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Investor Relations Contact:

Matthew Abenante, IRC President Strategic Investor Relations, LLC Tel: 347-947-2093 Email: matthew@strategic-ir.com

*** tables follow ***

LAKESIDE HOLDING LIMITEDCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED) As of As of September30, June30, 2024 2024 (unaudited) (audited)ASSETSCURRENT ASSETSCash and cash equivalent $ 2,739,275 $ 123,550Accounts receivable – third parties, net 1,786,451 2,082,152Accounts receivable – related party, net 505,361 763,285Prepayment and other receivable 113,198 -Contract assets 41,301 129,506Due from related parties 645,318 441,279Total current assets 5,830,904 3,539,772NON-CURRENT ASSETSInvestment in other entity 15,741 15,741Property and equipment at cost, net of accumulated depreciation 314,496 344,883Right of use operating lease assets 4,320,579 3,471,172Right of use financing lease assets 29,881 37,476Deferred tax asset – 89,581Deferred offering costs – 1,492,798Deposit and repayment 298,217 202,336Total non-current assets 4,978,914 5,653,987TOTAL ASSETS $ 10,809,818 $ 9,193,759LIABILITIES AND EQUITYCURRENT LIABILITIESAccounts payables – third parties $ 758,963 $ 1,161,858Accounts payables – related parties 70,872 227,722Accrued liabilities and other payables 869,109 1,335,804Current portion of obligations under operating leases 1,891,877 1,186,809Current portion of obligations under financing leases 34,214 37,619Loans payable, current 484,725 746,962Dividend payable 98,850 98,850Tax payable 79,825 79,825Due to shareholders 138,107 1,018,281Total current liabilities 4,426,542 5,893,730NON-CURRENT LIABILITIESLoans payable, non-current 105,166 136,375Obligations under operating leases, non-current 2,646,597 2,506,402Obligations under financing leases, non-current 13,233 17,460Total non-current liabilities 2,764,996 2,660,237TOTAL LIABILITIES $ 7,191,538 $ 8,553,967Commitments and ContingenciesEQUITYCommon stocks, $0.0001 par value, 200,000,000 shares authorized, 750 6007,500,000 and 6,000,000 issued and outstanding as ofSeptember 30, 2024 and June 30, 2024, respectively*Subscription receivable – (600)Additional paid-in capital 4,942,791 642,639Accumulated other comprehensive income 15,965 2,972Deficits (1,341,226) (5,819)Total equity 3,618,280 639,792TOTAL LIABILITIES AND EQUITY $ 10,809,818 $ 9,193,759LAKESIDE HOLDING LIMITEDCONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) ANDCOMPREHENSIVE INCOME (LOSS)(UNAUDITED) For theThree Months Ended September30, 2024 2023Revenue from third party $ 3,599,787 $ 4,054,287Revenue from related parties 481,767 94,189Total revenue 4,081,554 4,148,476Cost of revenue from third party 2,994,285 2,905,597Cost of revenue from related parties 564,730 595,336Total cost of revenue 3,559,015 3,500,933Gross profit 522,539 647,543Operating expenses:General and administrative expenses 1,837,206 855,778Loss from deconsolidation of a subsidiary – 73,151Provision of allowance for expected credit loss 12,837 52,122Total operating expenses 1,850,043 981,051Loss from operations (1,327,504) (333,508)Other income (expense):Other income, net 109,788 46,949Interest expense (28,110) (22,785)Total other income, net 81,678 24,164Loss before income taxes (1,245,826) (309,344)Income taxes expense (recovery) 89,581 (2,059)Net loss and comprehensive loss (1,335,407) (307,285)Net loss attributable to non-controlling interest – (3,025)Net loss attributable to common stockholders (1,335,407) (304,260)Other comprehensive lossForeign currency translation gain 12,993 3,122Comprehensive loss (1,322,414) (304,163)Less: comprehensive loss attributable to non-controlling interest – (3,119)Comprehensive loss attributable to the common shareholders $ (1,322,414) $ (301,044)Loss per share-basic and diluted $ (0.18) $ (0.05)Weighted average shares outstanding-basic and diluted* 7,500,000 6,000,000LAKESIDE HOLDING LIMITEDCONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) For theThree Months Ended September30, 2024 2023Cash flows from operating activities:Net loss $ (1,335,407) $ (307,285)Adjustments to reconcile net loss to net cash provided by operatingactivities:Depreciation – G&A 17,995 17,995Depreciation – cost of revenue 18,164 18,165Amortization of operating lease assets 466,723 219,571Depreciation of right-of-use finance assets 7,595 7,332Provision of allowance for expected credit loss 12,837 52,122Deferred tax expense (benefit) 89,581 (2,059)Loss from derecognition of shares in subsidiary – 73,151Changes in operating assets and liabilities:Accounts receivable – third parties 282,864 (138,491)Accounts receivable – related parties 257,924 (65,995)Contract assets 88,205 26,213Due from related parties (77,812) 49,182Prepayment, other deposit (176,572) 2,623Accounts payables – third parties (402,895) 133,904Accounts payables – related parties (156,850) 141,213Accrued expense and other payables (24,876) 37,739Operating lease liabilities (470,260) (225,023)Net cash (used in) provided by operating activities (1,402,784) 40,357Cash flows from investing activities:Payment made for investment in other entity – (29,906)Net cash outflow from deconsolidation of a subsidiary (Appendix A) – (48,893)Prepayment for system installation (32,507) -Acquisition of property and equipment (5,772) -Net cash used in investing activities (38,279) (78,799)Cash flows from financing activities:Proceeds from loans – 225,000Repayment of loans (265,456) (122,137)Repayment of equipment and vehicle loans (27,990) (29,678)Principal payment of finance lease liabilities (7,632) (6,425)Proceeds from initial public offering, net of share issuance costs 5,351,281 -Advanced to related parties (126,227) -Repayment to shareholders (879,574) -Net cash provided by financing activities 4,044,402 66,760Effect of exchange rate changes on cash and cash equivalents 12,386 3,216Net decrease in cash and cash equivalent 2,615,725 31,534Cash and cash equivalent, beginning of the period 123,550 174,018Cash and cash equivalent, end of the period $ 2,739,275 $ 205,552SUPPLEMENTAL DISCLOSURES OF CASH FLOWINFORMATION:Cash paid for income tax $ – $ -Cash paid for interest $ 6,274 $ 6,462SUPPLEMENTAL SCHEDULE OF NON-CASH IN FINANCINGACTIVITIESDeferred offering costs within due to shareholders $ – $ 230,000NON-CASH ACTIVITIESRight of use assets obtained in exchange for operating lease $ 1,244,140 $ -obligationsRight of use assets obtained in exchange for finance lease obligation $ – $ -APPENDIX A – Net cash outflow from deconsolidation of asubsidiaryWorking capital, net $ 29,812Investment in other entity recognized (15,741)Elimination of NCl at deconsolidation of a subsidiary 10,187Loss from deconsolidation of a subsidiary (73,151)Cash $ (48,893)

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