Name: Lakeside Holding Ltd Q4 2024 Earnings Call
Start: 2025-02-14T00:00:00.000Z

Executive Summary

Q4 2024 revenue fell to $3,595,589, down 26.9% year over year, with an overall gross loss of $42,231 and diluted EPS of $(0.26); management cited industry-wide headwinds and sharply lower airfreight volumes as primary drivers .
Cross-border airfreight revenue declined 35.5% to $2.0M (tons processed down to ~4,459 from ~8,217), and ocean freight revenue decreased 24.2% to $1.4M (TEU down to 1,046 from 1,330) .
Asia-based customer revenue grew 5.7% YoY in Q4 to $2.75M and 29.4% YoY in 1H to $5.56M, while U.S.-based customer revenue fell 72.9% YoY in Q4 to $0.63M, reflecting a strategic shift toward Asia-based e-commerce customers .
New pharmaceutical distribution launched in December contributed $218,086 of revenue at a 44.2% gross margin in Q4; recent partnerships with Sinopharm and Kelun plus the DFW expansion underpin diversification and potential catalysts for medium-term growth .

What Went Well and What Went Wrong

Pharmaceutical distribution revenue began at $218,086 in Q4 with a 44.2% gross margin, adding a new, higher-margin revenue stream .
Asia-based customer revenue increased 5.7% YoY in Q4 and 29.4% YoY in 1H, validating the strategic focus on cross-border e-commerce; management: “The strong growth in our Asia-based customer revenues, up 29.4% in the first half, validates our strategic shift…” .
Operational scaling: DFW warehouse space more than doubled to 46,657 sq. ft. to support demand; CEO: “We have expanded our production capacity to accommodate higher volumes…” .

Airfreight volumes fell sharply to ~4,459 tons (from ~8,217), driving revenue down 35.5% to $2.0M; ocean TEU declined to 1,046 (from 1,330), with ocean revenue down 24.2% to $1.4M .
Gross profitability deteriorated to a Q4 gross loss of $42,231 (vs $1,064,509 gross profit in Q4 2023) amid higher cost of revenue and fixed overhead burden .
G&A expenses rose to $1,911,853 in Q4 (53.2% of revenue), up 94.1% YoY, reflecting salaries/benefits and public company costs; net loss was $1.9M vs $0.06M net income in Q4 2023 .

Metric	Q2 FY2024 (Q4 2023)	Q1 FY2025 (Q3 2024)	Q2 FY2025 (Q4 2024)
Revenue ($USD)	$4,916,103	$4,081,554	$3,595,589
Gross Profit ($USD)	$1,064,509	$522,539	$(42,231)
Income (Loss) from Operations ($USD)	$81,987	$(1,327,504)	$(1,997,691)
Net Income (Loss) ($USD)	$64,224	$(1,335,407)	$(1,900,000) (approximate textual figure)
Diluted EPS ($USD)	$0.01	$(0.18)	$(0.26)

Segment revenue

Segment	Q2 FY2024 (Q4 2023)	Q2 FY2025 (Q4 2024)
Cross-border Airfreight Revenue ($USD)	$3,100,000	$2,000,000
Cross-border Ocean Freight Revenue ($USD)	$1,800,000	$1,400,000
Pharmaceutical Distribution Revenue ($USD)	$0	$218,086

Quarterly KPIs and mix

KPI	Q2 FY2024 (Q4 2023)	Q2 FY2025 (Q4 2024)
Airfreight Volume (tons)	~8,217	~4,459
Ocean Volume (TEU)	1,330	1,046
Asia-based Customers Revenue ($USD)	$2,602,745	$2,750,202
U.S.-based Customers Revenue ($USD)	$2,313,358	$627,301

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (directional)	Q3 FY2025 (next quarter)	None disclosed	“Anticipate a rebound in revenue for the next quarter”	Qualitative only
Gross Margin (Cross-border Freight)	1H FY2025 vs 1H FY2024	Not applicable	5.1% (1H FY2025) vs 18.9% (1H FY2024)	Deteriorated
OpEx (G&A)	Q2 FY2025	None disclosed	$1,911,853; 53.2% of revenue	Higher operating costs

Note: No quantitative ranges provided for revenue/EPS/EBITDA/tax rate/segment guidance in the quarter’s materials; commentary was directional only .

Topic	Previous Mentions (Q-2: Q1 FY2025)	Previous Mentions (Q-1: FY2024)	Current Period (Q2 FY2025)	Trend
Asia-based e-commerce focus	Asia-based revenues up 65.8% YoY in Q1; partnerships with major Asian platforms and social commerce	Annual narrative highlights cross-border airfreight surge and e-commerce demand	Asia-based revenue up 5.7% YoY in Q4; 1H up 29.4% YoY; shift away from U.S. customer base	Strengthening Asia mix
Airfreight demand	“Temporary challenges in airfreight” noted in Q1 commentary	FY2024 airfreight growth, but no quarterly headwinds highlighted	Volumes down sharply to ~4,459 tons; revenue down 35.5%; industry-wide decline cited	Deteriorating in Q4
Ocean freight activity	Q1 ocean revenue +7.8% YoY; volume up to 1,430 TEU	FY2024 ocean revenue slightly down, but overall logistics expansion	Ocean revenue down 24.2%; TEU down to 1,046	Softening
Pharmaceutical distribution & China healthcare	Acquisition of Hupan; hospital and Sinopharm relationships	Not applicable annually (pre-acquisition)	Pharma revenue $218,086 at 44.2% margin; Kelun and Sinopharm agreements	Accelerating diversification
Facilities & tech	DFW expansion to 46,657 sq. ft.; API integrations with platforms	FY2024 operations expanded and tech-enabled services	Continued emphasis on multi-hub strategy and capacity	Capacity building

“While we faced industry-wide headwinds in the second quarter, we’ve made tremendous strategic progress… The strong growth in our Asia-based customer revenues, up 29.4% in the first half, validates our strategic shift…” — Henry Liu, Chairman & CEO .
“We anticipate a rebound in revenue for the next quarter, driven by increased air freight demand for the upcoming holiday season… backed by our investments in advanced logistics technology and strategic facility expansions, including our new Dallas-Fort Worth site.” — Henry Liu .
On diversification: Acquisition of Hupan Pharmaceutical expected ~$7M annual revenue, new agreements with Sinopharm and Kelun to deepen China healthcare logistics presence .

No earnings call transcript was available; management scheduled an earnings conference call for February 17 with webcast access, but a published transcript could not be located in the document set .
Key clarifications from press materials centered on airfreight headwinds, Asia mix shift, and the launch of pharmaceutical distribution (no numerical guidance ranges provided) .

S&P Global consensus estimates for Q4 2024 could not be retrieved at query time due to SPGI request limits; therefore, quantitative comparisons to Street estimates are unavailable in this recap. Values retrieved from S&P Global.*

The quarter’s miss vs prior year was driven by airfreight volume collapse and higher fixed overhead costs, resulting in a Q4 gross loss and EPS of $(0.26) .
Mix shift toward Asia-based customers continues to build, with 1H revenues +29.4% YoY and Q4 Asia revenue +5.7% YoY; U.S. customer revenue fell 72.9% YoY in Q4 .
New pharma distribution is an emerging growth pillar with attractive margins (44.2% in Q4); diversified partnerships (Sinopharm, Kelun, Huiyu) bolster medium-term optionality .
Operating leverage is a near-term headwind: G&A reached $1.91M (53.2% of revenue) in Q4; stabilizing costs and scaling pharma and Asia e-commerce volumes are critical to margin recovery .
Capacity investments (DFW expansion to 46,657 sq. ft.) and platform integrations (API) position Lakeside to capture demand recovery, but visibility remains directional rather than quantified .
With directional guidance only and the lack of available Street estimates, investors should monitor subsequent disclosures for quantitative outlook and watch Q3 FY2025 execution on airfreight recovery and pharma scaling .
Tactical implication: near-term sentiment likely hinges on evidence of airfreight volume stabilization and margin recapture; medium-term thesis depends on successful diversification and Asia-focused growth translating into sustained gross profit expansion .