Core Insights - Armlogi Holding Corp. has reported a significant increase in small parcel shipping volume, attributed to its integration with the Temu marketplace [1][2][3] Group 1: Shipping Volume Growth - Small parcel shipping volume rose from 128,744 parcels in November 2024 to 167,298 in December 2024, reflecting a 30% increase [2] - In January 2025, shipping volumes further increased to 194,304 parcels, marking a 16% growth from December [2] - The company has seen consistent month-over-month growth in shipping volumes since being designated as an official authorized warehouse provider for Temu sellers in June 2024 [3] Group 2: Customer Base Expansion - Armlogi now serves over 200 Temu customers, a 29% increase from 155 customers reported in October 2024 [3] Group 3: Operational Strategy - The CEO of Armlogi emphasized the importance of operational excellence and adaptability in logistics infrastructure, particularly in the context of cross-border e-commerce logistics [4] - The company is monitoring potential changes in international trade policies that could impact trade relations with China [4] Group 4: Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, offering comprehensive supply-chain solutions for cross-border e-commerce merchants [5] - The company operates ten warehouses covering over 3.5 million square feet, equipped for handling large and bulky items [5]

Core Insights - Armlogi Holding Corp. has integrated Roadie, a logistics management and crowdsourced delivery platform, to enhance its operational capabilities in last-mile delivery solutions [1][2][3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, specializing in supply-chain solutions related to warehouse management and order fulfillment [1][4] - The company operates ten warehouses covering over 3.5 million square feet, catering to cross-border e-commerce merchants looking to establish a presence in the U.S. market [4] Operational Enhancements - The integration of Roadie allows Armlogi to leverage a network of over 200,000 independent drivers, covering more than 97% of the U.S., providing fast and flexible delivery options [2][3] - This collaboration is expected to enhance customer service and operational flexibility across various industries [2][3] Leadership Commentary - Aidy Chou, Chairman and CEO of Armlogi, emphasized the importance of this integration in expanding the company's ability to serve clients with faster and more flexible fulfillment solutions [3]

Financial Data and Key Metrics Changes - For Q2 FY 2025, the company generated revenue of $51.1 million, representing a growth of 21.8% compared to the same period last year, indicating strong market demand [6] - The gross profit margin decreased to 0.9% in Q2 FY 2025 from 18.3% in Q2 FY 2024 due to significant cost pressures [10] - The net loss for Q2 FY 2025 was RMB 1.6 million, compared to a net income of RMB 3.7 million for the same period in 2023, representing a decrease of RMB 5.4 million [10] - Total revenue for the first half of FY 2025 grew 12.5% to RMB 93.6 million, but the company reported a net loss of RMB 6.3 million compared to a net income of RMB 6.5 million for the same period in 2023 [11] Business Line Data and Key Metrics Changes - Transportation services revenue grew 20.8% to RMB 36.1 million, driven by increased shipment volumes from the expanded warehouse network [8] - Warehousing services revenue increased 25.7% to RMB 15 million, reflecting the successful addition of new facilities [9] - Revenue from other services, primarily customs brokerage, decreased to RMB 6,243 as the company focused on core operations [9] Market Data and Key Metrics Changes - The company expanded its warehouse footprint from nine to twelve locations, increasing total space from 2 million to over 3.5 million square feet, enhancing access to 70% of the U.S. population within a two-day drive [6][7] - The customer base grew from 105 in June 2024 to 298 active customers as of December 31, 2024, demonstrating strong market demand despite margin pressures [12] Company Strategy and Development Direction - The company is focused on optimizing its expanded facilities while maintaining high service levels, with a long-term strategy aimed at improving operational efficiency and managing costs [7][12] - Key financial strategies include improving deterioration rates at new facilities, implementing automation, optimizing working capital, and maintaining adequate liquidity for growth initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant cost pressures, particularly from increased freight expenses and labor costs, but expressed confidence in the long-term strategy and market demand [6][10] - The company is strategically addressing cost increases through integration with alternative carriers and optimizing shipping routes [14][15] Other Important Information - The company secured a RMB 50 million standby equity purchase agreement and established up to RMB 21 million in convertible promissory notes to strengthen financial flexibility [12] - The cash position at the end of the quarter was RMB 7.4 million in cash and restricted cash, with only RMB 10 million drawn from a $15 million standby equity purchase facility [18] Q&A Session Summary Question: Can you provide more color on the UPS cost increases and what steps you're taking to mitigate the impact on margin? - The UPS cost increase contributed significantly to RMB 8.3 million in freight expenses this quarter. The company is addressing this through integration with Amazon Shipping for alternative carrier options and leveraging new transportation management software for optimization [14] Question: Your warehousing footprint has grown significantly, but utilization seems mixed. What's your target utilization rate and timeline for reaching it across the new facility? - The Savannah facility has reached 70% utilization within six months, while other facilities are ramping up. The company expects most facilities to reach an 85% utilization rate within 12 to 18 months [16][17] Question: Given the cash burn this quarter and current market conditions, do you anticipate needing to draw down more of the SEPA facility in the near term? - The company ended the quarter with $7.4 million in cash and has only drawn $10 million of its $15 million SEPA facility. Current liquidity is deemed adequate for near-term needs, with the facility providing important flexibility [18] Question: You mentioned AI integration in your WMS. Can you quantify the expected efficiency gains and timeline for implementation? - The AI-enhanced WMS is being rolled out with full implementation expected by fiscal year-end. Early results show potential for 15% to 20% improvement in efficiency and a 25% reduction in worker distance, with full benefits expected in six to twelve months [19]

Core Viewpoint - Armlogi Holding Corp. reported significant revenue growth in Q2 and the first half of fiscal 2025, but faced challenges with increased costs and net losses due to operational expansion and higher shipping charges. Financial Results for the Three Months Ending December 31, 2024 - Total revenue increased by $9.1 million, or 21.8%, to $51.1 million compared to $42.0 million in Q2 2023 [5] - Revenue from transportation services rose by $6.2 million, or 20.8%, to $36.1 million, driven by new warehouse locations [5] - Warehousing services revenue increased by $3.1 million, or 25.7%, to $15.0 million, attributed to new warehouse acquisitions [5] - Costs of sales increased by $16.3 million, or 47.6%, to $50.7 million, primarily due to higher freight and lease expenses [5] - Gross profit margin decreased from 18.3% to 0.9% due to increased UPS surcharges and underutilization of new facilities [5] - Net loss was $1.7 million compared to net income of $3.7 million in Q2 2023, a decrease of $5.4 million [5] Financial Results for the Six Months Ending December 31, 2024 - Total revenue increased by $10.4 million, or 12.5%, to $93.6 million compared to $83.2 million in the same period in 2023 [9] - Transportation services revenue rose by $5.0 million, or 8.3%, to $64.6 million, supported by new warehouse locations [9] - Warehousing services revenue increased by $5.7 million, or 24.7%, to $29.0 million, driven by new acquisitions [9] - Costs of sales increased by $26.4 million, or 37.5%, to $96.7 million, influenced by rising freight and lease expenses [9] - Gross profit margin decreased from 15.5% to 3.3% due to increased surcharges and lower customer order volumes [9] - Net loss for the six months was $6.3 million compared to net income of $6.5 million in the same period in 2023, a decrease of $12.8 million [9] Operational Highlights - Expanded from 9 to 10 warehouses, increasing total warehouse space from 2 million to over 3.5 million square feet [4] - Major presence established in California, Georgia, and Illinois [4] - Incorporated electric forklifts in California warehouses as part of sustainability initiatives [8] - Enhanced warehouse management systems and upgraded technology to optimize operations [16] Liquidity and Financing - Cash and restricted cash balance as of December 31, 2024, was $7.4 million, down from $10.0 million as of June 30, 2024 [6] - Entered into a $50 million Standby Equity Purchase Agreement and $21 million in convertible promissory notes [10] Management Commentary - The CEO highlighted the commitment to long-term growth despite challenges from increased UPS surcharges and underutilization of new facilities [11] - Focus on optimizing operations and improving facility utilization rates is emphasized for future performance [11]

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $51,143,682, an increase of 21.7% compared to $42,004,083 for the same period in 2023[11]. - Total revenue for the six months ended December 31, 2024, was $93,625,578, representing an increase of 12.5% compared to $83,249,928 for the same period in 2023[37]. - Revenue from transportation services was $64,617,825, up 8.3% from $59,639,714 in the prior year[37]. - Warehousing services revenue increased by 24.7% to $28,984,064 from $23,234,845 year-over-year[37]. - Revenue for the three months ended December 31, 2024, increased by $9.1 million, or 21.8%, to $51.1 million compared to $42.0 million for the same period in 2023[120]. - The company experienced a net loss of $6.3 million for the six months ended December 31, 2024, compared to a net income of $6.5 million for the same period in 2023[116]. - The basic and diluted earnings per share for the six months ended December 31, 2024, were both $(0.15), down from $0.16 in 2023[99]. - Net loss for the three months ended December 31, 2024, was $(1.7) million, compared to a net income of $3.7 million for the same period in 2023, representing a decrease of $5.4 million[131]. Expenses and Costs - Gross profit for the six months ended December 31, 2024, was a loss of $3,123,798, compared to a profit of $12,904,281 for the same period in 2023[11]. - Operating costs and expenses for the three months ended December 31, 2024, were $2,659,156, a decrease from $2,919,547 for the same period in 2023[11]. - Total costs of sales for the six months ended December 31, 2024, increased by $26.4 million, or 37.5%, compared to the same period in 2023[121]. - Costs of sales for the three months ended December 31, 2024, increased by $16.3 million, or 47.6%, primarily due to higher freight expenses and increased lease and labor costs[120]. - General and administrative expenses for the six months ended December 31, 2024, were $6.3 million, compared to $4.8 million in 2023, reflecting an increase of approximately 30.9%[118]. - The Company recorded depreciation expenses of $637,990 for the three months ended December 31, 2024, compared to $485,906 for the same period in 2023, representing an increase of approximately 31.2%[66]. - The company recorded depreciation expenses of $1.2 million for the six months ended December 31, 2024, compared to $919,272 for the same period in 2023[149]. Assets and Liabilities - Total current assets increased to $42,920,445 as of December 31, 2024, from $37,984,932 as of June 30, 2024, reflecting a growth of 13.5%[9]. - Total liabilities increased to $130,533,116 as of December 31, 2024, compared to $127,796,151 as of June 30, 2024, indicating a rise of 2.0%[9]. - As of December 31, 2024, accounts receivable from third parties increased to $31,125,059 from $24,239,599 as of June 30, 2024, representing a growth of approximately 28.5%[64]. - The total loan receivable balance increased to $3,812,293 as of December 31, 2024, compared to $1,877,131 as of June 30, 2024, indicating a growth of approximately 103.5%[70]. - The allowance for credit loss increased to $547,610 as of December 31, 2024, from $407,182 as of June 30, 2024, reflecting a rise of approximately 34.4%[65]. - As of December 31, 2024, accounts payable and accrued liabilities totaled US$5,533,126, a decrease from US$7,502,339 as of June 30, 2024[80]. Cash Flow - Cash and restricted cash at the end of the six months period was $7,378,747, a decrease from $9,950,384 at the beginning of the year[15]. - The company reported a net cash used in operating activities of $9,232,468 for the six months ended December 31, 2024, compared to a net cash provided of $3,494,935 for the same period in 2023[15]. - Net cash used in operating activities was $9.2 million for the six months ended December 31, 2024, a decrease of $12.7 million compared to a net cash inflow of $3.5 million for the same period in 2023[136]. - Net cash used in investing activities was $1.0 million for the six months ended December 31, 2024, down from $3.9 million in the same period in 2023[137][138]. - Net cash provided from financing activities was $7.7 million for the six months ended December 31, 2024, compared to $0.9 million for the same period in 2023[140][139]. Operational Overview - The company operates as a third-party logistics provider, focusing on multi-modal transportation and logistics services primarily in the United States[17]. - The company operates in one segment, with all business activities conducted in the U.S., simplifying performance evaluation and resource allocation[56]. - The company has no recorded impairment losses for long-lived assets during the three and six months ended December 31, 2024, and 2023[29]. - The company operates with a 100% ownership structure across its subsidiaries, enhancing operational control and integration[22]. - The company utilizes independent contractors and third-party carriers for transportation services, maintaining control over pricing and shipment processes[36]. - The company had an active customer base of 298 as of December 31, 2024, up from 105 in June 2024 and 83 in December 2023[115]. - The company generated approximately 86% of its revenue from PRC-based customers during the six months ended December 31, 2024, down from 96% in the same period of 2023[117]. Lease and Financing - The Company has elected to account for leases with both lease and non-lease components as a single lease component, simplifying financial reporting[48]. - Operating lease expenses for the six months ended December 31, 2024, were US$15,858,308, an increase of 41.5% compared to US$11,245,735 for the same period in 2023[76]. - For the three months ended December 31, 2024, operating lease expenses were US$7,746,884, up 28.6% from US$6,027,177 in 2023[75]. - Total minimum lease payments amount to US$157,938,073, with a non-current portion of US$90,172,693 as of December 31, 2024[77]. - The weighted average remaining lease term for operating leases is 5.67 years, with a discount rate of 10.28%[79]. - The effective interest rate on the convertible notes is 13.85%, with a 0% interest rate that increases to 18% upon an event of default[93][90]. - The Company has entered into a Standby Equity Purchase Agreement allowing it to sell up to US$50 million of common stock, with an initial advance of US$5 million received[81][84]. Corporate Actions - The company completed its initial public offering in May 2024, raising $8.0 million by issuing 1,600,000 shares at $5.00 per share[159]. - The net proceeds from the initial public offering were $5.2 million after deducting expenses, which have been fully spent for working capital and general corporate purposes[161]. - The company amended its Articles of Incorporation on February 22, 2023, for correction of par value[3.2]. - A Standby Equity Purchase Agreement was established on November 25, 2024, with YA II PN, LTD[10.1]. - The First Tranche Convertible Promissory Note was issued on November 25, 2024, in favor of YA II PN, LTD[10.2]. - A Global Guaranty Agreement was signed on November 25, 2024, involving multiple subsidiaries of Armlogi[10.3]. - The company has filed certifications pursuant to the Sarbanes-Oxley Act of 2002 for both the Principal Executive Officer and Principal Financial Officer[31.1][31.2]. - The Inline XBRL Instance Document was filed along with the report[101.INS]. - The report was signed by CEO Aidy Chou on February 14, 2025[172].

Core Viewpoint - Armlogi Holding Corp. is set to release its financial results for the second quarter and first half of the fiscal year ending December 31, 2024, on February 13, 2025, after market close [1] Financial Results Announcement - The financial results will be discussed in an earnings conference call scheduled for February 14, 2025, at 8:00 A.M. Pacific Time [2] - Investors can submit questions via email by February 12, 2025, and access the call by phone or through a live audio webcast [3] Company Overview - Armlogi Holding Corp. is a U.S.-based warehousing and logistics service provider, focusing on supply-chain solutions for warehouse management and order fulfillment [4] - The company operates eleven warehouses covering over 3.5 million square feet, catering primarily to cross-border e-commerce merchants [4]

Company to Donate Over $110,000 in Essential Equipment to Support Local Emergency Response WALNUT, CA, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced a significant donation initiative to support Los Angeles communities affected by the recent California wildfires. The C ...

WALNUT, CA, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced the integration of Amazon Shipping into its suite of shipping solutions. This new addition is expected to enhance Armlogi’s shipping capabilities, providing customers with more efficient and cost-effective opti ...

Sheng-Kai (Scott) Hsu Appointed as Chief Financial Officer of Armlogi, Transitioning from Board Secretary Zhiliang (Ian) Zhou to Remain with Armlogi in an Advisory Role WALNUT, CA, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced a transition in its executive leadershi ...

WALNUT, CA, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced the sublease of a 500,000-square-foot e-commerce facility in Edwardsville, Illinois, part of the St. Louis Metro Area. The facility is located in Gateway Commerce Center, providing immediate access to Interstat ...