Revenue Growth - Revenue increased by $7,023,778, or 42.5%, from $16,540,179 for the year ended September 30, 2024 to $23,563,957 for the year ended September 30, 2025[527] - Revenue from integrated cross-border logistics services rose by $6,627,434, or 43.8%, from $15,116,783 to $21,744,217, driven by higher market demand[528] - Average daily number of packages increased from 6,135 to 10,394, and average daily revenue per freight weight rose from $21.32 to $24.03[529] Cost of Revenue - Cost of revenue increased by $7,068,083, or 50.1%, from $14,120,777 to $21,188,860, primarily due to increased air freight and courier expenses[530] - Air freight charges rose by $836,990, or 23.8%, from $3,520,270 to $4,357,260, due to higher capacity utilization[531] - Last mile carriage and alliance costs surged by $6,161,093, or 59.2%, from $10,399,786 to $16,560,879, attributed to increased volume and unit price[532] Gross Profit and Income - Gross profit decreased by 1.8% to $2,375,097 for the year ended September 30, 2025, with a gross profit margin decline to 10.1% from 14.6%[535] - Net income decreased by $656,026, or 49.0%, to $682,982 for the year ended September 30, 2025, compared to $1,339,008 for 2024, primarily due to decreased gross profit and increased expenses[551] - 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, primarily due to increased gross profit[577] Expenses - General and administrative expenses increased by $337,745, or 31.3%, from $1,079,349 for the year ended September 30, 2024 to $1,417,094 for the year ended September 30, 2025[536] - Staff costs rose by $85,316, or 24.3%, from $351,155 in 2024 to $436,471 in 2025, reflecting the strengthening of administrative and management teams[537] - Legal and professional fees increased by $140,398, or 73.3%, from $191,428 in 2024 to $331,826 in 2025, due to heightened legal consulting requirements[538] - Depreciation and amortization charges increased by $39,652, or 61.3%, from $64,688 in 2024 to $104,340 in 2025, attributed to extended rental arrangements[539] - Insurance expenses rose from $13,624 in 2024 to $96,013 in 2025, an increase of $82,389, reflecting expanded corporate insurance coverage[540] Foreign Exchange and Risks - Foreign exchange gains were $118,508 and $156,937 for the years ended September 30, 2023 and 2024, respectively, while a loss of $138,223 was recorded for 2025[520] - The company does not use currency exchange contracts to mitigate foreign currency risks but monitors exposure closely[520] - Approximately 70.7% of the cost of revenue for the year ended September 30, 2025 was denominated in foreign currencies, reflecting an increase from 62.0% in 2024[850] - Foreign exchange gains were $156,937 for the year ended September 30, 2024, while a loss of $138,223 was recorded for the year ended September 30, 2025[850] Current Assets and Liabilities - Cash and cash equivalents increased by $5,208,926 from $2,296,462 as of September 30, 2024, to $7,505,388 as of September 30, 2025, mainly due to net proceeds from the June 2025 Offering[580] - Accounts receivable, net decreased by $680,441, or 40.4%, from $1,684,644 as of September 30, 2024, to $1,004,203 as of September 30, 2025, attributed to a decrease in revenue near year-end[581] - Contract assets decreased by $344,191, or 38.4%, from $897,409 as of September 30, 2024, to $553,218 as of September 30, 2025, due to fewer in-transit deliveries[589] - Other payables and accrued liabilities increased by $156,675, or 66.6%, from $235,193 as of September 30, 2024, to $391,868 as of September 30, 2025, mainly due to increased accrued insurance expenses[594] Working Capital - Working capital as of September 30, 2024 was $2,670,291, a significant increase from $128,745 as of September 30, 2023, reflecting a 1,974.5% growth[625] - As of September 30, 2025, working capital further increased to $8,782,964, up from $2,670,291 in 2024, marking a 228.5% increase[626] Cash Flow - Net cash provided by operating activities was $326,089 for the year ended September 30, 2024, a decrease of approximately $1.7 million from $2,021,831 in 2023[615] - 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[619]
Globavend (GVH) - 2025 Q4 - Annual Report