Financial Performance and Key Metrics - For fiscal year 2025, total revenue reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024, driven by demand for transportation and warehousing services [7] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expansion [8] - The company reported a gross profit loss of $3 million and a net loss of $15.3 million, or $0.37 per share [8] Business Line Performance - The active customer base increased more than four-fold to 505, indicating strong demand for the company's services [7] - General and administrative expenses rose by 47.2% to $14.7 million, reflecting investments in support of growing operations [8] Market Data and Key Metrics - The company operates 10 warehouses across the U.S., covering approximately 3.9 million square feet, which positions it well for future opportunities in the cross-border e-commerce market [5][9] - The customer concentration decreased, with one customer accounting for around 10% of revenue, down from two customers representing 20% and 12% in the previous year [13] Company Strategy and Industry Competition - The company aims to diversify its customer base beyond PRC-based clients, who accounted for around 84% of revenue in fiscal year 2025 [10] - Competitive advantages include high-quality, ISO 9001 compliant services, 99.64% inventory accuracy, and advanced technology like the Armlogi Order Management System [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving gradual improvement in margins and consistent profitability through operational optimization and technology investments [11] - The company is focused on leveraging its expanded infrastructure and technology to drive efficiency and broaden cost management [9] Other Important Information - The company ended the fiscal year with a solid balance sheet, comprising $13.6 million in cash and equivalents [8] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [10] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement anticipated in margins [11] Question: How concentrated is revenue among the largest customers, and how does Armlogi plan to differentiate itself? - Customer concentration has decreased, and the company plans to differentiate through high-quality services, advanced technology, and a focus on bulky item handling [13][14]

Financial Data and Key Metrics Changes - For fiscal year 2025, total revenue reached $190.4 million, an increase of 14% compared to $167 million in fiscal year 2024 [7][8] - Cost of sales increased by 29.9% to $193.4 million, primarily due to higher freight costs and operational expansion [8][9] - The company reported a net loss of $15.3 million, or $0.37 per share, compared to the previous year [9] Business Line Data and Key Metrics Changes - The growth in revenue was largely driven by increased demand for transportation and warehousing services, with a more than four-fold increase in the active customer base to 505 [8] - General and administrative expenses rose by 47.2% to $14.7 million, reflecting investments in support of growing operations [9] Market Data and Key Metrics Changes - The company operates 10 warehouses across the U.S., covering approximately 3.9 million square feet, which positions it well for future opportunities in the cross-border e-commerce market [5][10] - The customer base diversified, with one customer accounting for around 10% of revenue, down from two customers representing 20% and 12% in the previous year [15] Company Strategy and Development Direction - The company is focused on optimizing operations, leveraging technology for efficiency, and broadening cost management to achieve consistent profitability [9][13] - Future growth is anticipated to come from expanding geographic coverage and enhancing the technology platform, particularly the Armlogi Order Management System [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing future opportunities despite operational challenges and cost pressures [5] - Gradual improvement in margins is expected as the operational footprint reaches fuller utilization and technology investments take effect [13] Other Important Information - The company maintains high standards, including ISO 9001 compliance and an average inventory accuracy rate of 99.64% [5] - The focus on bulky item handling and a one-stop solution for cross-border e-commerce differentiates the company from larger competitors [16] Q&A Session Summary Question: What are the main drivers of revenue growth for fiscal year 2026? - Revenue growth is expected to be driven by demand for warehousing and logistics services, particularly from cross-border e-commerce merchants and an expanding U.S.-based customer base [11] Question: When does management expect to achieve consistent profitability and positive free cash flow? - Management is implementing measures for operational optimization and cost management, with gradual improvement in margins anticipated [13] Question: How concentrated is revenue among the largest customers? - One customer accounted for around 10% of revenue in fiscal year 2025, reflecting efforts to diversify the customer base [15]