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Lakeside Holding Limited (LSH) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $7,677,143 from $9,064,579 in the same quarter the previous year. The decrease is attributed to a decline in cross-border air freight solutions revenue.
Cost of revenue for the quarter was $7,196,835, representing 93.7% of total revenue, compared to 81.1% in the same quarter of the previous year. This increase in cost ratio is due to high fixed overhead costs and increased warehouse lease expenses.
The company reported a gross profit of $480,308 for the quarter, compared to $1,712,052 in the previous year, with the decline attributed to reduced air freight volumes and increased costs.
Selling expenses for the quarter were $54,488, primarily due to salaries for the sales team as part of the new pharmaceutical product business.
General and administrative expenses increased to $3,749,059 from $1,840,831, primarily due to higher salaries, employee benefits, and professional fees.
Net loss for the quarter was $3,282,227, compared to a net loss of $243,061 in the previous year. The increase in net loss is attributed to decreased revenue and increased operating expenses.
The filing also details the acquisition of Hupan Pharmaceutical, a new business segment generating $218,086 in revenue from pharmaceutical product distribution.
Lakeside had a working capital deficit of $1,054,241 as of December 31, 2024. The company acknowledges its dependence on future cash flow and potential financing to meet obligations.
The company identified material weaknesses in its internal controls over financial reporting due to inadequate segregation of duties and insufficient written policies.
Lakeside continues to focus on expanding its customer base and controlling costs to improve financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lakeside Holding Limited quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.