Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lakeside Holding Ltd (LSH, Financial) has successfully expanded into the pharmaceutical distribution sector, with the acquisition of Huiyu Pharmaceutical contributing $715,362 in revenue for the nine months ended March 31, 2025.
- The company raised approximately $6.75 million through its initial public offering, providing necessary capital to fuel strategic initiatives.
- Lakeside Holding Ltd (LSH) is leveraging its logistics expertise to optimize Huiyu Pharmaceutical's supply chain and distribution network in China, enhancing operational efficiency.
- The company is actively pursuing new distribution agreements with major pharmaceutical producers, such as Kelun Pharmaceutical, to tap into the growing Chinese healthcare market.
- Lakeside Holding Ltd (LSH) is focusing on providing high-volume, customized logistics solutions, which differentiates it from competitors and helps maintain competitiveness in the cross-border freight market.
Negative Points
- Lakeside Holding Ltd (LSH) reported a decrease in total revenues to $11.48 million for the nine months ended March 31, 2025, down from $13.53 million in the same period last year.
- The company's cross-border freight solutions saw a decline in revenue due to normalization of global shipping demands and persistent pricing pressures in the freight sector.
- Operating expenses increased to $5.6 million for the nine months, reflecting investments related to expansion and increased general and administrative expenses.
- Lakeside Holding Ltd (LSH) recorded a net loss of $4.35 million for the nine months, highlighting the financial challenges faced during this period.
- The ongoing tariff discussions between the United States and China present uncertainties that could impact Lakeside Holding Ltd (LSH)'s operations and profitability.
Q & A Highlights
Q: Can you elaborate on the early synergies you're seeing from Huiyu Pharmaceutical and how you envision this segment driving Lakeside's growth in the rapidly expanding Chinese healthcare market, especially given your efforts with companies like Kelun Pharmaceutical?
A: We are pleased with the initial contribution from Huiyu Pharmaceutical, which is a cornerstone of our diversification strategy. We are leveraging our logistics expertise to optimize Huiyu's supply chain in China and building partnerships with major players like Kelun Pharmaceutical. The Chinese healthcare market is growing significantly, and we believe Huiyu is well-positioned to capture a meaningful share of this growth, driving revenue and profitability for Lakeside.
Q: Regarding the cross-border freight business, what strategies is Lakeside employing to maintain competitiveness and serve customers effectively in the Asia Pacific to US trade lane during this period of market adjustment?
A: American Bear Logistics focuses on customized high-volume logistics solutions rather than competing solely on price. We leverage technology to enhance efficiency and maintain strong relationships with carrier partners and customers. Despite market softening, we focus on serving specific niches and managing costs diligently to ensure profitability.
Q: Can you share your long-term vision for the company and how the new pharmaceutical venture is expected to create sustained shareholder value over the next few years?
A: Our long-term vision is to build a diversified global supply chain solutions provider with a strong presence in high-growth markets, particularly in the Asia Pacific region. We aim to scale our pharmaceutical distribution operations in China and optimize our logistics business. This multi-pronged approach will lead to consistent revenue growth and improved profitability, translating into sustained long-term value for shareholders.
Q: How is Lakeside managing the financial challenges and investments related to its expansion efforts?
A: We are taking proactive steps to manage costs and optimize operations. The successful completion of our IPO and a convertible debt financing agreement provide necessary capital to support our growth initiatives, particularly in the medical distribution business, enhancing our financial flexibility.
Q: What is Lakeside's outlook on international trade relations, particularly between the US and China, and how does it impact your operations?
A: We are closely monitoring developments in US-China trade relations. Recent signals suggest potential easing of tensions, which could benefit global trade flows. A more stable trade environment would positively impact our cross-border logistics operations and support our expansion efforts in China.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
