Lakeside Holding Limited, incorporated on August 28, 2023, and focused on customized cross-border ocean and airfreight solutions, reported its financial results for the three months ended September 30, 2024. The company generated total revenue of $4.1 million, a slight decrease of 1.6% from $4.15 million in the same period of 2023. Revenue from cross-border ocean freight solutions increased to $1.84 million, up 7.8% from $1.70 million, while revenue from Asia-based customers surged to $2.81 million, a 65.8% increase from $1.69 million. Conversely, revenue from U.S.-based customers fell significantly to $1.27 million, down 48.2% from $2.45 million, attributed to a strategic shift towards Asia-based e-commerce customers.

The company's gross profit for the quarter was $0.52 million, down from $0.65 million in the prior year, reflecting a gross margin decrease from 15.6% to 12.8%. Total operating expenses rose sharply to $1.85 million, compared to $0.98 million in Q3 2023, leading to a loss from operations of $1.33 million, compared to a loss of $0.33 million in the same quarter last year. The net loss for the period was $1.34 million, significantly higher than the $0.31 million loss reported in Q3 2023, resulting in a loss per share of $0.18, compared to $0.05 in the previous year.

Lakeside's cash and cash equivalents increased to $2.74 million as of September 30, 2024, from $0.12 million at the end of June 2024, bolstered by net proceeds of approximately $5.79 million from its initial public offering (IPO) on July 1, 2024. The IPO involved the sale of 1.5 million shares at $4.50 each, with proceeds allocated for marketing, business expansion, and working capital needs.

The company’s total assets grew to $10.81 million, up from $9.19 million, while total equity surged to $3.62 million from $0.64 million. However, the increase in operating expenses was driven by higher salaries, professional fees, and insurance costs, which collectively contributed to the overall financial strain.

In terms of strategic developments, Lakeside's subsidiary, Sichuan Hupan, entered into an agreement to acquire Hupan Pharmaceutical for RMB 4 million (approximately $0.6 million), indicating ongoing efforts to expand its business footprint. The company continues to focus on enhancing its service offerings and customer base, particularly in the Asian market, while managing the challenges posed by rising operational costs and market volatility.