Lakeside Announces Fiscal 2025 Second Quarter and Six-Month Results

Lakeside Holding Limited (“Lakeside” or the “Company”) (Nasdaq: LSH), a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market operating through two specialized subsidiaries-American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd., today announced financial results for its fiscal 2025 second quarter and first half ended December 31, 2024.

Management Commentary

Henry Liu, Chairman and Chief Executive Officer of Lakeside commented, “While we faced industry-wide headwinds in the second quarter, we've made tremendous strategic progress in positioning Lakeside for long-term growth. Our expansion into pharmaceutical logistics through Hupan Pharmaceutical, our new partnerships with major e-commerce platforms, and our significantly-expanded Dallas-Fort Worth facilities demonstrate our commitment to diversifying and strengthening our business. The strong growth in our Asia-based customer revenues, up 29.4% in the first half, validates our strategic shift toward serving the rapidly expanding cross-border e-commerce market. With these foundational pieces in place and our continued investment in operational capabilities, we're excited about the opportunities ahead as we build a more robust, diversified logistics enterprise.”

Operational Highlights

E-Commerce & Cross-Border Logistics:

— Entered one-year agreement with a major Asian e-commerce platform

— Partnered with a leading global social media and e-commerce platform for customs brokerage services

— Launched new Pick & Pack Fulfillment service for a major Chinese logistics partner

U.S. Facilities Expansion:

— Expanded Dallas-Fort Worth operations:

— More than doubled warehouse space from 20,000 to 46,657 square feet

— Added staff to support expanded operations

— Part of multi-hub strategy including ChicagoO'Hare (ORD), Dallas-Fort Worth (DFW), and Los Angeles (LAX)

Medical/Pharmaceutical Business Development:

— Acquired Hupan Pharmaceutical (Hubei) Co., Ltd:

— Purchase price:RMB 4.0M ($0.6M)

— Expected annual revenue contribution: $7M

— Gained licenses for drug wholesale, retail, and medical device distribution

— Partnerships with 15 majorWuhan hospitals

— Established partnership with Sinopharm Group Hubei Co., Ltd. for:

— Essential medicine storage

— Transportation services

— Logistics services

— Signed RMB 11.0M ($1.5M) sales agreement with Sinopharm Holding Hubei New Special Medicine Co., Ltd:

— One-year contract effective January 1, 2025

— Covers critical medicines including Sodium Bicarbonate, Glucose, and Glucose Sodium Chloride

Financial Results for the Three Months Ending December 31, 2024:

Total revenues decreased by $1.5 million, or 31.3% to $3.4 million for the three months ended December 31, 2024, compared with $4.9 million for the three months ended December 31, 2023. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.

— Revenues from our cross-border airfreight solutions decreased by $1.1 million or 35.5%, from $3.1 million in the three months ended December 31, 2023, to $2.0 million in the three months ended December 31, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 8,217 tons for the three months ended December 31, 2023, to approximately 4,459 tons for the three months ended December 31, 2024.

— Revenues from our cross-border ocean freight solutions decreased by $0.4 million, or 24.2%, from $1.8 million in the three months ended December 31, 2023, to $1.4 million in the three months ended December 31, 2024. This reduction was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded, dropping from 1,330 TEU in the three months ended December 31, 2023, to 1,046 TEU in the three months ended December 31, 2024.

— For the three months ended December 31, 2024, our total revenue from pharmaceutical product distribution amounted to $0.2 million, compared to no revenue from this segment in the same period of the prior year. Starting from December 2024, we established a new revenue stream through the distribution of pharmaceutical products. We procured pharmaceuticals-primarily pharmaceutical solutions-directly from manufacturers and supplied them to distributors, hospitals, and clinics.

Revenues by Customer Geographic

For the three months ended December31, 2024 2023Revenues Amount % of Amount % of Amount Percentage total total Increase Increase Revenues Revenues (Decrease) (Decrease)Revenue from cross-border freight solutionsAsia-based customers $ 2,750,202 76.5 % $ 2,602,745 52.9 % $ 147,457 5.7 %U.S.-basedcustomers 627,301 17.4 % 2,313,358 47.1 % (1,686,057) (72.9) % 3,377,503 93.9 % 4,916,103 100.0 % (1,538,600) (31.3) %Revenue from distribution of pharmaceuticalsAsia-based customers 218,086 6.1 % – – 218,086 N/ATotal revenues $ 3,595,587 100.0 % $ 4,916,103 100.0 % $ (1,320,514) (26.9) %

— Revenues from Asia-based customers increased by $0.1 million, or 5.7%, from $2.6 million in the three months ended December 31, 2023, to $2.8 million in the three months ended December 31, 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 $1.7 million, or 72.9%, from $2.3 million in the three months ended December 31, 2023 to $0.6 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31, 2024, compared to the same period in 2023, was primarily due to our strategic shift toward Asia-based e-commerce customers.

Total cost of revenues decreased by $0.2 million, or 5.6%, from $3.9 million in the three months ended December 31, 2023, to $3.6 million in the three months ended December 31, 2024.

Our overall gross loss was $42,231 in the three months ended December 31, 2024, compared to gross profit of $1,064,509 in same period last year . Our gross margin was mainly impacted by higher cost of revenue, particular in fixed overhead costs, and an industry-wide decline in revenue.

Our gross margin of distribution of pharmaceuticals was 44.2% for the three months ended December 31, 2024.

General and administrative expenses increased by $0.9 million, or 94.1%, from $1.0 million in the three months ended December 31, 2023, to $1.9 million in the three months ended December 31, 2024. These expenses represented 53.2% and 20.0% of our total revenues for the three months ended December 31, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses and professional fees operating as a listed company.

Net loss was $1.9 million for the three months ended December 31, 2024, compared to a net income of $0.06 million for the three months ended December 31, 2023.

Financial Results for the Six Months Ending December 31, 2024:

Total revenues decreased by $1.6 million, or 17.7%, from $9.1 million for the six months ended December 31, 2023, to $7.5 million for the six months ended December 31, 2024. The decrease was primarily driven by a significant decline in volume we handled from our cross-border airfreight solutions.

— Revenues from our cross-border airfreight solutions decreased by $1.3 million or 23.4%, from $5.5 million in the six months ended December 31, 2023, to $4.2 million in the six months ended December 31, 2024. The decrease was primarily due to a decrease in the volume of cross-border air freight processed, from approximately 16,034 tons for the six months ended December 31, 2023, to approximately 11,732 tons for the six months ended December 31, 2024.

— Revenues from our cross-border ocean freight solutions decreased by $0.3 million, or 8.7%, from $3.5 million in the six months ended December 31, 2023, to $3.2 million in the six months ended December 31, 2024. This growth was primarily due to a decrease in the volume of cross-border ocean freights processed and forwarded, dropping from 2,620 TEU in the six months ended December 31, 2023, to 2,476 TEU in the six months ended December 31, 2024.

Revenues by Customer Geographic

For the six months ended December31, 2024 2023Revenues Amount % of Amount % of Amount Percentage total total Increase Increase Revenues Revenues (Decrease) (Decrease)Revenue from cross-border freight solutionsAsia-based customers $ 5,559,837 72.4 % $ 4,296,968 47.4 % $ 1,262,869 29.4 %U.S.-basedcustomers 1,899,220 24.7 % 4,767,611 52.6 % (2,868,391) (60.2) % 7,459,057 97.2 % 9,064,579 100.0 % (1,605,522) (17.7) %Revenue from distribution of pharmaceuticalsAsia-based customers 218,086 2.8 % – – 218,086 N/ATotal revenues $ 7,677,143 100.0 % $ 9,064,579 100.0 % $ (1,387,436) (15.3) %

— Revenues from Asia-based customers increased by $1.3 million, or 29.4%, from $4.3 million in the six months ended December 31, 2023, to $5.6 million in the six months ended December 31, 2024. The increase in revenues from Asia-based customers was driven by an increase 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 cross-border freight solutions for the U.S.-based customers decreased by $2.9 million, or 60.2%, from $4.8 million in the six months ended December 31, 2023 to $1.9 million in the same period in 2024. The decrease in revenue from the U.S.-based customers in the three months ended December 31, 2024, compared to the same period in 2023, was primarily due to our strategic shift toward Asia-based e-commerce customers.

Cost of revenues decreased by $0.2 million, or 2.1%, from $7.4 million in the six months ended December 31, 2023, to $7.2 million in the six months ended December 31, 2024.

Gross profit decreased by $1.2 million, or 71.9%, from $1.7 million in the six months ended December 31, 2023, to $0.5 million in the six months ended December 31, 2024. Our gross margin of cross-border freight solution was 5.1% for the six months ended December 31, 2024, compared to 18.9% for the six months ended December 31, 2023. The decline in gross margin was primarily attributable to reduced revenue from cross-border airfreight solutions and an increase in our cost of revenue in warehouse services, custom declaration and terminal charges, freights arranged charges and overhead costs allocated.

General and administrative expenses increased by $1.9 million, or 103.7%, from $1.8 million in the six months ended December 31, 2023, to $3.7 million in the six months ended December 31, 2024. These expenses represented 48.8% and 20.3% of our total revenues for the six months ended December 31, 2024 and 2023, respectively. The increase was primarily attributed to higher salary and employee benefit expenses, professional fees, office expenses and traveling, insurance expenses and entertainment expenses, operating as a listed company.

Net loss was $3.3 million for the six months ended December 31, 2024, compared to a net loss of $0.2 million for the six months ended December 31, 2023.

Conference Call & Audio Webcast

Lakeside's management team will hold an earnings conference call at 4:30 PM Eastern Time (3:30 PM Central Time) on Tuesday, February 17 to discuss the Company's financial results and provide an overview of the Company's operations. Management will lead the conference call and be available to answer questions.

To access the call by phone, please dial 1- 877-407-9716 (international callers, please dial 1- 201-493-6779) approximately 10 minutes before the start of the call. Refer to conference ID: LAKESIDE. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY

A live audio conference call webcast will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1708554&tp_key=b4f1b10725

About Lakeside Holding Limited

Lakeside Holding Limited is a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market. Through two specialized subsidiaries-American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd.-Lakeside delivers tailored logistics solutions spanning general and specialized sectors.

American Bear Logistics, with strategic hubs in Chicago, Dallas, Los Angeles, and New York, offers customized cross-border ocean and airfreight solutions, connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.

Lakeside recently acquired Hupan Pharmaceutical (Hubei) Co., Ltd., expanding its service scope and enhancing its pharmaceutical logistics and distribution capabilities within China. This strategic move underscores Lakeside's commitment to advancing integrated cross-border logistics solutions.

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 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

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LAKESIDE HOLDING LIMITEDCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED) As of As of December 31, June30, 2024 2024 (unaudited) (audited)ASSETSCURRENT ASSETSCash $ 1,123,414 $ 123,550Accounts receivable-third parties, net 1,645,774 2,082,152Accounts receivable-related party, net 207,293 763,285Prepayment and other receivable 49,476 -Contract assets 31,388 129,506Inventory, net 10,328 -Due from related parties 682,980 441,279Loan to a third party 686,697 -Total current assets 4,437,350 3,539,772NON-CURRENT ASSETSInvestment in other entity 15,741 15,741Property and equipment at cost, net of accumulated depreciation 514,073 344,883Intangible asset, net 418,867 -Right of use operating lease assets 4,074,617 3,471,172Right of use financing lease assets 110,998 37,476Deferred tax asset – 89,581Deferred offering costs – 1,492,798Deposit and prepayment 265,480 202,336Total non-current assets 5,399,776 5,653,987TOTAL ASSETS $ 9,837,126 $ 9,193,759LIABILITIES AND EQUITYCURRENT LIABILITIESAccounts payables-third parties $ 1,233,142 $ 1,161,858Accounts payables-related parties 71,557 227,722Accrued liabilities and other payables 1,244,501 1,335,804Current portion of obligations under operating leases 2,203,766 1,186,809Current portion of obligations under financing leases 48,865 37,619Loans payable, current 609,935 746,962Dividend payable – 98,850Tax payable 79,825 79,825Due to shareholders – 1,018,281Total current liabilities 5,491,591 5,893,730NON-CURRENT LIABILITIESLoans payable, non-current 174,846 136,375Deferred tax liabilities 104,717 -Obligations under operating leases, non-current 2,339,439 2,506,402Obligations under financing leases, non-current 80,252 17,460Total non-current liabilities 2,699,254 2,660,237TOTAL LIABILITIES $ 8,190,845 $ 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 of December 31,2024 and June 30, 2024, respectivelySubscription receivable – (600)Additional paid-in capital 4,942,791 642,639Accumulated other comprehensive income (9,214) 2,972Deficits (3,288,046) (5,819)Total equity 1,646,281 639,792TOTAL LIABILITIES AND EQUITY $ 9,837,126 $ 9,193,759LAKESIDE HOLDING LIMITEDCONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)(UNAUDITED) Six Months Ended Three Months Ended December 31, December 31, 2024 2023 2024 2023Revenue from cross-border freight $ 6,702,063 $ 8,639,983 $ 3,102,276 $ 4,585,696solutions – third partyRevenue from cross-border freight 756,994 424,596 275,227 330,407solutions – related partiesRevenue from distribution of pharmaceutical 218,086 – 218,086 -products – third partiesTotal revenue 7,677,143 9,064,579 3,595,589 4,916,103Cost of revenue from cross-border 6,153,994 6,329,650 3,159,709 3,424,053freight solutions – third partyCost of revenue from cross-border 921,050 1,022,877 356,320 427,541freight solutions – related partyCost of revenue from pharmaceutical 121,791 – 121,791 -products – related partiesTotal cost of revenue 7,196,835 7,352,527 3,637,820 3,851,594Gross profit (loss) 480,308 1,712,052 (42,231) 1,064,509Operating expenses:Selling expenses 54,488 – 54,488 -General and administrative expenses 3,749,059 1,840,831 1,911,853 985,053Loss from deconsolidation of a subsidiary – 73,151 – -Provision (reversal) of allowance for expected 1,956 49,591 (10,881) (2,531)creditlossTotal operating expenses 3,805,503 1,963,573 1,955,460 982,522Income (loss) from operations (3,325,195) (251,521) (1,997,691) 81,987Other incomeOther income, net 201,541 88,449 91,753 41,500Interest expense (68,992) (53,864) (40,882) (31,079)Total other income 132,549 34,585 50,871 10,421(Loss) income before income taxes (3,192,646) (216,936) (1,946,820) 92,408Income tax expense (credit) 89,581 26,125 – 28,184Net (loss) income (3,282,227) (243,061) (1,946,820) 64,224Less: net loss attributable to non-controlling interest – (3,025) – -Net (loss) income attributable to the Company (3,282,227) (240,036) (1,946,820) 64,224Other comprehensive (loss) income:Foreign currency translation income (12,186) 3,122 (25,179) -Comprehensive (loss) income (3,294,413) (239,939) (1,971,999) 64,224Less: comprehensive loss attributable to – (3,119) – -non-controlling interestComprehensive (loss) income attributable $ (3,294,413) $ (236,820) $ (1,971,999) $ 64,224to the Company(Loss) earnings per share – basic and diluted $ (0.44) $ (0.04) $ (0.26) $ 0.01Weighted Average Shares Outstanding – 7,500,000 6,000,000 7,500,000 6,000,000basic and dilutedLAKESIDE HOLDING LIMITEDCONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED) For theSix Months Ended December 31, 2024 2023Cash flows from operating activities:Net loss $ (3,282,227) $ (243,061)Adjustments to reconcile net loss to net cash provided byoperating activities:Depreciation – G&A 50,804 35,991Depreciation – cost of revenue 36,328 36,328Amortization and interest expense of operating lease assets 989,003 439,142Depreciation of right-of-use finance assets 15,480 14,385Provision of allowance for expected credit loss 1,956 49,591Deferred tax expense 89,581 26,125Loss from derecognition of shares in subsidiary – 73,151Changes in operating assets and liabilities:Accounts receivable – third parties 424,648 (479,056)Accounts receivable – related parties 565,766 (192,609)Contract assets 98,118 (27,169)Inventories, net (10,328) -Due from related parties (241,702) 40,740Prepayment, other deposit (112,620) (23,269)Accounts payables – third parties 28,285 539,542Accounts payables – related parties (156,165) 241,721Accrued expense and other payables 312,722 122,547Operating lease liabilities (742,649) (396,263)Net cash (used in) provided by operating activities (1,933,000) 257,836Cash flows from investing activities:Purchase of furniture and equipment (36,072) -Payment for leasehold improvement (75,008) -Net cash payment for asset acquisition (552,721) -Loan to a third party (686,697) -Payment made for investment in other entity – (29,906)Net cash outflow from deconsolidation of a subsidiary – (48,893)(Appendix A)Net cash used in investing activities (1,350,498) (78,799)Cash flows from financing activities:Proceeds from loans 195,000 225,000Repayment of loans (339,914) (185,856)Repayment of equipment and vehicle loans (55,877) (59,708)Principal payment of finance lease liabilities (14,964) (13,429)Payment for deferring offering cost – (140,000)Advances from Hupan Pharmaceutical prior to acquisition 276,365 -Proceeds from initial public offering, net of share issuance 5,351,281 -costsAdvanced to related parties (311,185) -Proceeds from shareholders – 158,455Repayment to shareholders (805,345) -Net cash provided by (used in) financing activities 4,295,361 (15,538)Effect of exchange rate changes on cash (11,999) 3,216Net increase in cash 999,864 166,715Cash, beginning of the period 123,550 174,018Cash, end of the period $ 1,123,414 $ 340,733SUPPLEMENTAL DISCLOSURES OF CASH FLOWINFORMATION:Cash paid for income tax $ – $ -Cash paid for interest $ 45,953 $ 15,503SUPPLEMENTAL SCHEDULE OF NON-CASH ININVESTING AND FINANCING ACTIVITIESDeferred offering costs within due to shareholders $ – $ 500,826Deferred offering costs within accrued expense and other $ – $ 241,176payablesAdditions to property and equipment included in loan $ 102,235 -payableAdditions to leasehold improvement and furniture and $ 42,803 $ -fixture through account payableSettlement of due to shareholder and advance to related $ 311,815 -partyNON-CASH ACTIVITIESRight of use assets obtained in exchange for operating lease $ 1,445,498 $ -obligationsRight of use assets obtained in exchange for finance lease $ 89,003 $ 19,982obligationAPPENDIX A – Net cash outflow from deconsolidation ofa subsidiaryWorking 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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