Revenue Performance - Revenue decreased by $2,046,349, or 11.0%, from $18,586,528 for the year ended September 30, 2023 to $16,540,179 for the year ended September 30, 2024[367] - Revenue from integrated cross-border logistics services decreased by $1,755,756, or 10.4%, from $16,872,539 to $15,116,783[368] - Revenue from air freight forwarding services decreased by $290,593, or 17.0%, from $1,713,989 to $1,423,396[368] - Revenue from integrated cross-border logistics services decreased by $2,571,643, or 13.2%, from $19,444,182 for the year ended September 30, 2022 to $16,872,539 for the year ended September 30, 2023[396] Gross Profit and Margins - Gross profit increased by 27.0% to $2,419,402 for the year ended September 30, 2024, from $1,905,587 for the year ended September 30, 2023[376] - Gross profit margin increased to 14.6% for the year ended September 30, 2024, from 10.3% for the year ended September 30, 2023[376] - Gross profit increased by 35.5% to $1,905,587 for the year ended September 30, 2023, from $1,405,878 for the year ended September 30, 2022, with a gross profit margin increase to 10.3%[404] Cost of Revenue - Cost of revenue decreased by $2,560,164, or 15.3%, from $16,680,941 to $14,120,777[370] - Air freight charges decreased by $3,593,641, or 50.5%, from $7,113,911 to $3,520,270[371] - Cost of revenue decreased by $5,934,377, or 26.2%, from $22,615,318 for the year ended September 30, 2022 to $16,680,941 for the year ended September 30, 2023, mainly due to reduced air freight and courier expenses[398] Operating Expenses - General and administrative expenses increased by $320,623, or 42.3%, from $758,726 for the year ended September 30, 2023 to $1,079,349 for the year ended September 30, 2024[377] - Travel expenses surged by $146,964, or 326.2%, from $45,056 for the year ended September 30, 2023 to $192,020 for the year ended September 30, 2024, primarily due to increased travel activities[380] - Legal and professional fees rose by $158,937, or 489.2%, from $32,491 for the year ended September 30, 2023 to $191,428 for the year ended September 30, 2024, mainly due to increased legal consulting fees[381] - Staff costs decreased by $19,671, or 5.3%, from $370,826 for the year ended September 30, 2023 to $351,155 for the year ended September 30, 2024, attributed to reduced discretionary bonuses[379] - Audit fees increased by $18,589, or 10.8%, from $171,667 for the year ended September 30, 2023 to $190,256 for the year ended September 30, 2024, primarily due to professional services fees related to the audit[378] - Audit fees increased by $170,000, or 10,198.0%, from $1,667 for the year ended September 30, 2022, to $171,667 for the year ended September 30, 2023[406] - Staff costs decreased by $13,133, or 3.4%, from $383,959 for the year ended September 30, 2022, to $370,826 for the year ended September 30, 2023[407] - Travel expenses decreased by $24,327, or 35.1%, from $69,383 for the year ended September 30, 2022, to $45,056 for the year ended September 30, 2023[408] Net Income - Net income increased by 24.3% to $1,339,008 for the year ended September 30, 2024, compared to $1,077,392 for the year ended September 30, 2023, driven by increased gross profit[392] - Net income increased by 33.0% to $1,077,392 for the year ended September 30, 2023, compared to $810,227 for the year ended September 30, 2022[418] Cash and Liquidity - Cash and cash equivalents increased from $554,132 as of September 30, 2023, to $2,296,462 as of September 30, 2024, an increase of $1,742,330[422] - Accounts receivable, net increased by $255,345, or 17.9%, from $1,429,299 as of September 30, 2023, to $1,684,644 as of September 30, 2024[423] - Contract assets increased by $353,571, or 65.0%, from $543,838 as of September 30, 2023, to $897,409 as of September 30, 2024[428] - Deferred costs decreased by $932,155, or 71.4%, from $1,306,441 as of September 30, 2023, to $374,286 as of September 30, 2024[430] - Accounts payable decreased by $1,952,070, or 75.0%, from $2,601,253 as of September 30, 2023, to $649,183 as of September 30, 2024[431] - Other payables and accrued liabilities decreased by $860,823, or 78.5%, from $1,096,016 as of September 30, 2023, to $235,194 as of September 30, 2024[433] - Cash and cash equivalents at the end of the year increased to $2,296,462 as of September 30, 2024, compared to $554,132 as of September 30, 2023[450] - The company anticipates that its cash and cash equivalents will be sufficient to meet its anticipated cash needs for at least the next twelve months[458] - The company reported cash and cash equivalents sufficient to meet working capital needs for the next 12 months, with no material trends or uncertainties identified in liquidity or capital resources[468] - The company had a banking facility arrangement with a maximum amount of HK$3,690,000, with an outstanding principal of nil as of September 30, 2024[469] - The company may seek to issue equity or debt securities in the future if cash requirements exceed available cash, which could lead to shareholder dilution[470] Accounts and Assets - The average daily number of packages decreased from 5,890 in 2022 to 5,654 in 2023, while the average daily freight weight dropped from 2,765 kg to 2,459 kg[397] - Accounts receivable increased by $317,301, or 28.5%, from $1,111,998 as of September 30, 2022, to $1,429,299 as of September 30, 2023[440] - Contract assets rose by $109,081, or 25.1%, from $434,757 as of September 30, 2022, to $543,838 as of September 30, 2023, due to more in-transit deliveries[443] - Accounts payable increased by $1,290,186, or 98.4%, from $1,311,067 as of September 30, 2022, to $2,601,253 as of September 30, 2023, primarily due to outstanding supplier invoices[445] - Other payables and accrued liabilities surged by $1,082,973, or 8,303.1%, from $13,043 as of September 30, 2022, to $1,096,016 as of September 30, 2023[447] - Total current assets increased by 90.0%, from $2,116,028 on September 30, 2022, to $4,021,110 on September 30, 2023, mainly due to an increase in deferred costs[465] - Total current liabilities increased by 140.8%, from $1,616,528 on September 30, 2022, to $3,892,365 as of September 30, 2023, primarily due to an increase in accounts payables[465] - Working capital improved significantly from $128,745 as of September 30, 2023, to $2,670,291 as of September 30, 2024[466] - As of September 30, 2024, accounts receivable increased from $1,429,299 to $1,684,644, while working capital surged from $128,745 to $2,670,291, primarily due to proceeds from the issuance of ordinary shares[467] Risk Management - For the years ended September 30, 2022, 2023, and 2024, foreign currency costs represented 47.7%, 54.3%, and 62.0% of the cost of revenue, respectively, with foreign exchange gains of $72,974, $118,508, and $156,937[691] - The company has designed credit policies to minimize exposure to credit risk, with maximum exposure equaling the carrying amount of cash, accounts receivable, and other financial assets[688] - Liquidity risk management ensures sufficient cash on demand to meet operational expenses for 60 days, excluding extreme circumstances[693]
Globavend (GVH) - 2024 Q4 - Annual Report