Lakeside Holding (LSH) investor relations material

Executive summary

• Completed the sale of ABL Chicago, exiting the U.S. cross-border logistics segment to focus on pharmaceutical distribution in China, resulting in a $2.6 million gain on sale for the nine months ended March 31, 2026.

• Revenue from continuing operations (pharmaceutical distribution) grew 614% year-over-year to $5.1 million for the nine months ended March 31, 2026, driven by expansion in infusion products and customer base.

• Net loss from continuing operations was $3.5 million for the nine months ended March 31, 2026, compared to $1.5 million in the prior year, primarily due to increased operating expenses and professional fees.

Financial highlights

• Gross profit from continuing operations rose to $2.8 million for the nine months ended March 31, 2026, but gross margin declined to 54.3% from 66.3% year-over-year due to reduced supplier rebates.

• Selling expenses increased to $1.8 million and general and administrative expenses to $3.9 million, reflecting higher salaries, marketing, and consulting costs.

• Interest expense rose to $149,355, mainly from convertible notes; other income increased to $203,918 due to interest from a third-party loan.

• Net income from discontinued operations was $654,388 for the nine months ended March 31, 2026, compared to a loss of $2.8 million in the prior year.

• Total assets as of March 31, 2026, were $17.8 million, with $13.6 million in equity.

Outlook and guidance

• Management is focused on expanding pharmaceutical distribution in China and evaluating new business opportunities, including digital assets, though no concrete plans have been adopted.

• Future growth is expected to be driven by increased product offerings, customer acquisition, and market penetration in the pharmaceutical sector.