Q3 2025 Armlogi Holding Corp Earnings Call
Operator: Please stand by, your program is about to begin. Thank you for standing by and welcome to the Armlogi Holdings Corp's third quarter and first nine months of fiscal year 2025 earnings call. Please note that today's call is being recorded.
Please stand by your program is about to begin.
Thank you for standing by and welcome to the arm largely holding corp's third quarter and first nine months of fiscal year 2025 earnings call.
Speaker Change: Please note that today's call is being recorded I will now turn the meeting over to Matthew <unk> Investor Relations for them, our largest holding corp.
Matthew Avenatti: I will now turn the meeting over to Matthew Avenatti, Investor Relations for Armlogi Holdings Corp. Thank you and thanks to everyone joining us today for Armlogi's earnings conference call to discuss the third quarter and first nine months of fiscal year 2025 results. Please note that our earnings press release was issued on Wednesday, along with our quarterly report on Form 10-Q, which was also filed with the Securities and Exchange Commission.
Thank you and thanks to everyone joining us today for <unk> earnings conference call to discuss the third quarter and first nine months of fiscal year 2025 results.
Speaker Change: Please note that our earnings press release was issued on Wednesday, along with our quarterly report on Form 10-Q, which was also filed with the Securities and Exchange Commission. Both are available in the Investor Relations section of our website.
unknown: Both are available in the Investor Relations section of our website at ir.armlogi.com.
IR Dot <unk> dot com.
Matthew Avenatti: Joining us on the call today is Scott Hsu, Chief Financial Officer of the The format of our call will consist of brief comments, followed by a question and answer session addressing the questions that were submitted by investors. We thank everyone for submitting these.
Scott: Joining us on the call today is Scott <unk>, Chief Financial Officer of the company.
Speaker Change: Format of our call will consist of a brief comments followed by a question and answer session addressing the questions that were submitted by investors. We thank everyone for submitting these questions before we get started I'm going to review the Safe Harbor statement. Please.
Matthew Avenatti: Before we get started, I'm going to review the safe harbors. Please note that today's discussion will contain forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events. which we derive from the information currently available. Such forward-looking statements relate to the future events or our future performance, including our financial performance and projection. our growth in revenue and earnings, and our business prospects and opportunities.
Speaker Change: Please note that today's discussion will contain forward looking statements. In addition from time to time, we are our representatives may make forward looking statements orally or in writing we base. These forward looking statements on our expectations and projections about future events.
Speaker Change: Which we derived from the information currently available to us.
Speaker Change: Such forward looking statements relate to the future events or our future performance, including our financial performance and projections.
Speaker Change: Our growth in revenue and earnings in our business prospects and opportunities.
Matthew Avenatti: You can identify forward-looking statements by those that are not historical in nature, particularly those that use the terminology such as may, should, expects, anticipates, contemplates, estimates, intends, believes, plans, projected, predicts, potential, or hopes, or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including our ability to change the direction of the company, our ability to keep pace with new technology and changing market needs, and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions.
Speaker Change: You can identify forward looking statements by those that are not historical in nature, particularly those that use the terminology such as may should expects anticipates contemplates estimates intends believes plans projected predicts potential.
Speaker Change: Angel or hopes or the negative of these or similar terms in evaluating these forward looking statements you should consider various factors, including our ability to change the direction of the company our ability to keep pace with new technology, and changing market needs and the competitive environment.
Speaker Change: Our business.
Speaker Change: These and other factors may cause our actual results to differ materially from any forward looking statements.
Speaker Change: We're looking statements are only predictions, we are not obligated to publicly update or revise any forward looking statements whether as a result of uncertainties our assumptions.
Matthew Avenatti: We are not obligated to publicly update or revise any forward-looking statements, whether as a result of uncertainties or assumptions.
Matthew Avenatti: forward-looking statements discussed on this call and other statements made from time to time by us or our representatives may not occur and actual results and results actual events and may differ materially and are subject to risks, uncertainties, and assumptions about And with that, I would like to hand the call to Scott Chou, Chief Financial Officer of Armlogi.
Speaker Change: Forward looking statements discussed on this call and other statements made from time to time by us or our representatives may not occur and actual results and results actual events and results may differ materially and are subject to risks uncertainties and assumptions about us.
Scott: And with that I would like to hand, the call to Scott <unk>, Chief Financial Officer of <unk>.
Scott Chou: Good morning, Scott. Good morning, mate, and thank you everyone for joining us today.
Speaker Change: Morning, Scott.
Speaker Change: Okay.
Speaker Change: Good morning.
Speaker Change: Hello James.
Scott Chou: Our chairman and CEO, Aidy Chou, is unfortunately away from racing company business today and sends his regards. This quarter, we continue to see revenue growth, reflecting the sustained demand for our comprehensive logistic solutions. A particularly significant and encouraging development is the recent success in U.S.-China trade talks. As many of you know, this has resulted in a substantial reduction in tariffs, and we believe this will have a positive impact on our sectors and for Armlogi specifically. We will touch on them more throughout the presentation. Our third quarter and nine-month results reflect a period of continued revenue growth, which underscores the ongoing demand for our logistic solutions.
Speaker Change: Our chairman.
Speaker Change: Unfortunately.
Speaker Change: Thank you.
Speaker Change: Thank you Ricardo.
Speaker Change: We continue to see revenues move on the slide.
Speaker Change: King.
Speaker Change: Yes.
Speaker Change: Logistics solutions.
Particularly in the encouraged.
Speaker Change: Encouraging to see that come back.
Speaker Change: Our recent success.
Speaker Change: China trade talks.
Speaker Change: Maybe I'll see you know each has defaulted.
Speaker Change: Essentially the option.
And with the knee.
Speaker Change: Oh, sorry.
Speaker Change: And then on logistics.
Speaker Change: Yes.
Speaker Change: Lord.
Speaker Change: Nicole.
Speaker Change: Our third quarter and the nine months' results. Thanks Peter.
Speaker Change: Good afternoon.
Speaker Change: Rich.
Speaker Change: Yes.
Speaker Change: Demand all those solutions.
Scott Chou: However, we also face significant operational investments and market-related cost pressure. That impacts our probability. We are diligently working to optimize our extended warehouse opening and enhance operational efficiency across all our services.
Speaker Change: Got it.
Speaker Change: Okay.
Speaker Change: And then he concentration.
Speaker Change: Okay.
Speaker Change: Well, yes.
Speaker Change: Looking to optimize all extended workhorse.
Speaker Change: Okay.
Speaker Change: Operationally.
Speaker Change: Of course.
Speaker Change: Some lines.
Scott Chou: A significant and encouraging development is the recent success in U.S.-China trade talks, which has resulted in a substantial reduction in tariff fees. This is a major point of upcoming sense for Armlogi and the broader logistics sector. We anticipate that these positive trade developments will help alleviate some of the causing pressures we have been experimenting and create more variable operating environment.
Speaker Change: And the encouraging development recently.
Speaker Change: U S China trade talks.
Speaker Change: As a result.
Speaker Change: The reduction in tariffs.
Speaker Change: This is a major point of upcoming studies.
Speaker Change: March.
Speaker Change: Each center.
Speaker Change: Okay.
Yes.
Speaker Change: No.
Speaker Change: Thanks, Tom.
Speaker Change: The majors.
Speaker Change: Experimentation and the great well.
Great.
Scott Chou: While we maintain a cautious approach in our overall planning, prioritizing sustainable will improve the profitability. The resolutions in Transparency allow us to look forward with greater confidence. Our commitment to leveraging technology and providing comprehensive supply chain solutions for our clients remains steadfast as we navigate the evolving economic landscape and the position Armlogi to capitalize on these new opportunities for future success.
Speaker Change: Well we.
Speaker Change: Maintain a cautious approach.
Speaker Change: Thanks.
Speaker Change: Hiseq sustainable well.
Speaker Change: Possibly.
Speaker Change: The resolutions.
Speaker Change: Patients at all.
Speaker Change: Forward with greater confidence.
Speaker Change: Okay.
The average <unk> technology.
Speaker Change: Comprehensive supply chain solutions.
Speaker Change: Clients remain steadfast as we navigate.
Speaker Change: No.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Large to capitalize.
Speaker Change: These new opportunities for future success.
Scott Chou: Now, let's turn to our financial performance for the third quarter and the first nine months of the fiscal year 2025. As a reminder, for a detailed breakdown of our financial results, I encourage you to refer to our earnings press release and our form 10-Q. Both of which are available on our investor relations website.
Speaker Change: No.
Speaker Change: Now to our financial performance.
Speaker Change: Well the third quarter ended the first nine months.
Speaker Change: On this slide.
Speaker Change: As a reminder.
Speaker Change: Great.
Speaker Change: Our financial results.
Speaker Change: I encourage you to refer to our earning.
Speaker Change: <unk> press release.
Speaker Change: Thank you.
Speaker Change: The accretion.
Hey, Nicole.
Speaker Change: Relational websites.
Scott Chou: My comments here will provide a high level of information. The course ended March 31st, 2025. We saw continued top-line momentum, with total revenue reaching $45.8 million, an increase of 19.3% compared to the same period last year. This course reflects the continued demand for our services. Household sales over quarter were 45.6 million. As we have discussed, these costs were higher by delivery due to operational investments and the expansion of our footprint. This impacted our gross profit, which was $0.28 million for the quarter. We are actively implementing measures to improve efficiency and profitability, and we anticipate that the recent positive developments in U.S.-China trade relations may contribute to alleviating some of these close pressures in the future.
Speaker Change: Yes.
Speaker Change: Hi, Dave.
Speaker Change: The quarter ended June 30.
Speaker Change: Chris.
Speaker Change: We still.
Speaker Change: Okay.
Speaker Change: Total revenue reached <unk>.
Speaker Change: Slide eight.
Speaker Change: Christophe.
Speaker Change: Thank you Christian.
Speaker Change: To the extent you had last year.
Speaker Change: Discourse effects the continued demand for our services.
Speaker Change: The wholesales altera.
Speaker Change: $5 six.
Speaker Change: We have discussed this course.
Speaker Change: Alright.
Speaker Change: Due to operational investments and no debt.
Speaker Change: Awesome great.
Speaker Change: Impacting our liquids rich.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: We are keeping the majors to equal efficiency.
Speaker Change: And we anticipate that the reason I'm asking.
Speaker Change: U S China trade.
Speaker Change: Okay.
Speaker Change: Eight of these close creatures future.
Scott Chou: General and administrative expenses were $4.47 million, reflecting investments to support our growing operation. This resulted in a loss to our operations of $4.19 million for the third quarter. Our net loss for this quarter was $3.76 million, or $0.09 per basic and diluting share. Looking at the nine-month period, ending March 31, 2025, total revenue grew 14.6% to $139.5 million, again underscoring the substantive demand for our comprehensive logistic solution.
Speaker Change: Okay.
Speaker Change: Thanks Tracy.
Speaker Change: Well all points and immediate.
Speaker Change: And your investments.
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Speaker Change: Okay.
Speaker Change: For all patients.
Speaker Change: Well the third quarter.
Speaker Change: Oh handles all this quarter was de Paul instead of six or.
Speaker Change: Thank you.
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Speaker Change: Andy it's such a bridge too often can be flat total revenue.
Speaker Change: <unk> six to 139 5 million.
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Speaker Change: <unk> been all comprehensive.
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Scott Chou: Most of the cells of the nine monocytes were country and Embedded. This resulted in a gross loss of $2.85 million for the period. We are focused on strategic initiatives to address this emerging challenge. and as mentioned the recent positive developments in U.S.-China trade discussion are expected to contribute very boldly to mitigating some of these close pressures going forward. General and Administrative expenses for the nine months were $10.8 million. The loss from operation for the nine-month period was $13.65 million, and our net loss was $10.06 million, or $0.24.
Speaker Change: Okay.
Speaker Change: Nine policies hungry.
Speaker Change: Country.
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Speaker Change: Thank you.
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Speaker Change: And Spansion.
Speaker Change: You bet. Thanks, you guys.
Speaker Change: Any discussion.
Speaker Change: Two.
Speaker Change: Two countries.
Speaker Change: Maybe a bogey to mitigating some of these calls.
Speaker Change: Forward.
Speaker Change: General and administrative expenses.
Speaker Change: Well diagnostics right.
Speaker Change: Good point.
Speaker Change: The goals.
Speaker Change: Operation.
Speaker Change: Paul.
Speaker Change: And our net loss was.
Speaker Change: And Paul Diaz expedient or close.
Speaker Change: Twofold.
Scott Chou: updates, and digital t-shirt. We are managing our partnership prudently and are focused on initiatives to improve our profitability as we move forward, especially in light of the more variable trade environment we anticipate.
Speaker Change: Okay sure.
Speaker Change: We are managing.
Speaker Change: And the whole shaky.
Speaker Change: Equal all of.
Speaker Change: As we move forward.
Brian: In light of the mall, Okay, you got it Brian.
Scott Chou: Looking ahead, we are navigating a dynamic market environment. While evolving, the global trade policies and inflationary pressures have certainly presented ongoing challenges. The recent successful conclusion of U.S.-China trade talks marks a significant positive development. This breakthrough resulting in reduced tariff fees is expected to create a multivariable operating landscape for the logistics sector and, importantly, for Armlogi. We are Proactivity, working to optimize our operations, measure costs, and enhance our service delivery. We anticipate this improved trade relations will contribute to alleviating some of the cost pressures we have experienced. impact of these macroeconomic shifts will unfold over time.
Payne: Mr Payne.
Speaker Change: Hey, <unk>.
Payne: A dynamic market environment.
Payne: Well involving the Gulfport trade policies.
Payne: Ocean creatures.
Payne: The increases ongoing challenges.
Payne: The recent successful conclusion.
Payne: Okay.
Payne: Marks.
Payne: You bet.
Payne: This is Greg.
Payne: You reduced tariffs.
Payne: Secondly to create a multi variable operating landscape.
Payne: The logistics sector and the importantly logic.
Payne: <unk>.
Payne: We are actively working to optimize our operations, making calls and that has also been taking already.
Payne: We anticipate.
Payne: Cool.
Payne: Yes.
Payne: So I'll give you some of the cost tranches, we have disappeared.
Payne: I wanted to ask you.
Payne: Pat.
Payne: Economic shifts.
Scott Chou: We are cautiously optimistic. Our focus remains securely on leveraging our expanding infrastructure and our technological capabilities to drive long-term value for you, our shareholders. We are committed to improving our profitability, and we will continue to make strategic investments to support sustainable growth and strengthen our market position. Now with a more positive backdrop for international trade.
Payne: We are cautiously optimistic.
Payne: <unk>.
Payne: Alright.
Payne: <unk> and all the technology capabilities to drive long term value for our shareholders.
Payne: We are committed to improving our profitability and then we're continuing to make strategic investments to support sustainable growth and strengthen our market position now with a more positive backdrop for international trade.
Scott Chou: In summary, while we have navigated some headwinds, we have continued to grow our revenue. demonstrating the underlying demand for our services. We are proactively managing costs and are particularly encouraged by the significant positive developments in U.S.-China trade relations. which we believe will benefit our operation and industry at large.
Payne: In summary, while we have Medicaid piece.
Payne: We have a company here.
Payne: Revenue.
Payne: We must trade teams also aligned with demand for our services.
Payne: We are actively managing costs and are particularly encouraged by those kidney.
Payne: U S China trade relations.
Payne: And we believe will benefit our operation and industry at large.
Scott Chou: We remain confident in Armlogi's strategy, our dedication, and our ability.
Payne: We remain confident that the only large tragic.
Payne: <unk> and our ability to add.
Payne: Even though you're golfing cobalt, though just to basket.
Scott Chou: I want to sincerely thank our shareholders for their continued support and trust in Armlogi.
Payne: I'll walk through some sturdy thank our shareholders for their continued support and trusting on March.
Matthew Avenatti: With that comprehensive financial overview, I will turn it back to Matt for questions.
Payne: <unk> comprehensive financial albeit IRA.
Payne: Two men Krish.
Payne: Thank you Scott we will now move to the question and answer portion of the call.
Matthew Avenatti: We will now move to the question and answer portion. Thank you to everyone who has submitted questions.
Payne: Thank you to everyone who has submitted question.
Scott Chou: Our first question, despite cost pressures, the company is continuing to show revenue Could you elaborate on the key drivers behind this sustained demand for Armlogi services? and how the company is working. Profitability That's an excellent question. up 19.3% for the quarter and the fall and the 9 Monthly. Truly underscores the essential nature of our comprehensive logistic solutions and the strong relationship we have with our clients. The demand is driven by the ongoing needs of cross-border e-commerce. and the value we provide in managing complex supply chains.
Speaker Change: Our first question despite cost pressures the company is continuing to show revenue growth could.
Speaker Change: Could you elaborate on the key drivers behind this sustained demand for our <unk> services and how the companies working to improve profitability moving forward.
Speaker Change: That's an excellent questions.
Speaker Change: Revenue pool.
Speaker Change: Up 19, 3% for the quarter and the full team, calling 6%, although nine months.
Speaker Change: So the on the scores of same show nature of all comprehensive logistics solutions and the strong relationship we have with all clients.
Speaker Change: The demand is driven by the ongoing needs of cross border E Commerce and the value we provide in managing complex supply chains.
Scott Chou: Regarding profitability, we are very focused on optimizing our expanded operational Enhancing Efficiencies Through the Technology. and diligently managing our code. Furthermore, as we discussed the recent positive development in U.S.-China trade relations. with reduced tariff fees are expected to alleviate some of their external cost pressure.
Speaker Change: Regarding profitability.
Speaker Change: I mean, you folks on the optimizing all expanded operational footprint enhancing efficiencies through technology.
Speaker Change: And that did each entity managing all costs.
Speaker Change: More or less the way you discussed the recent past you've added London U S. China trade relations with.
Speaker Change: We deal with the tariff fees.
Speaker Change: Becky to alleviate some of their extended I'll call strangers, which should contribute favorably to our boundaries improvement overtime.
Scott Chou: which should contribute favorably to our marginal improvement effort over We are confident in our strategic initiatives to navigate the current environment and enhance shareholder value.
Speaker Change: We are confident in our strategic initiatives to navigate the carbon you brought them in and that he has shareholder value. Thank you.
unknown: Thank you.
Scott Chou: The recent success in U.S.-China trade talks Executive, Aidy Chou, Armlogi Can you provide a bit more color on how specifically Armlogi is positioned to benefit from this improved trade environment? Certainly, the success for U.S.-China trade talks and the resulting tariff reductions are indeed very encouraging news for the entire logistics sector. and particularly for a company like Armlogi that facilitates trans-Pacific trade.
Speaker Change: The recent success in the U S. China trade talk seems to be a significant positive.
Speaker Change: Can you provide a bit more color on how specifically <unk> is positioned to benefit from these improved trade environment.
Speaker Change: Certainly.
Speaker Change: Thus far a U S. China trade talks and the resulting Tyra reductions are indeed, very encouraging news for the entire logistics sector.
Speaker Change: And particularly for a company like all lodging Reits facilitates changed Pacific trade.
Scott Chou: Specifically, we anticipate several benefits. Firstly, reduced tariff fees can lower the lending cost of goods for our customers. potentially stimulating a higher crave volume. Secondly, it reduces a significant element of uncertainty that has been impacting planning and investment for many businesses. which can lead to more stable and predictable demand for our services. Thirdly, it may ease some of the direct and indirect cost pressures we have seen in the supply chain. We are well-positioned with our extensive warehouse network and the comprehensive services offered. to support all clients as they capitalize on this more favorable trade environment.
Speaker Change: Specifically, we anticipate a civil penalty.
Speaker Change: Rusty reduce tariff fees candle than any cost of goods for all customers.
Speaker Change: Potentially stimulating a higher trade volumes.
Speaker Change: Everything is a significant element of that.
Speaker Change: That has been impacting training and the investment for many business, which can lead to more stable and predictable demand for our services.
Speaker Change: Certainly.
Speaker Change: Some of the direct and indirect cost strangers, we have seen in the supply chain.
Speaker Change: We are well positioned with our extensive warehouse network and the comprehensive service offering.
Speaker Change: All clients have stayed kept her life on these small favorable about changing environment.
Scott Chou: We have already begun factoring this into our strategic planning to maximize these emerging opportunities.
Speaker Change: We have already begun factoring this into our strategic planning to Maxim why these are emerging.
Speaker Change: The emerging opportunities.
Scott Chou: Considering the dynamic market and the recent positive trade How does Armlogi view its long-term strategic positioning and its ability to capture future growth? Yes, we are very confident in our long-term strategic positioning. Armlogi has built a robust infrastructure with a significant warehouse footprint in key U.S. locations, offering a comprehensive suite of logistic services. This allows us to be a one-stop solution for many of our clients, particularly in the cross-border e-commerce space. The recent positive developments in U.S.-China trade talks further strengthen our outlook, creating a more stable and potentially expensive market.
Speaker Change: Considering the dynamic market and the recent positive treat news how does our <unk> with long term strategic positioning and its ability to capture future growth opportunities.
Speaker Change: Okay.
Speaker Change: Yes, we are very confident that you can all long time, and our strategic positioning all largely as Butte, a robust infrastructure, we saw significant warehouse footprint in key U S locations.
Speaker Change: Running a comprehensive suite of logistic services.
Speaker Change: This allow us to be a one stop solutions for many of all Congress.
Speaker Change: Particularly in the cross border E Commerce space.
Speaker Change: The recent positive do you bet on this U S China trade talks.
Speaker Change: All of the lytic greeting, a most stable and the potential of the expansive market.
Scott Chou: Our strategy remains focused on leveraging our cross-trends. our infrastructure, our technology, our experience team, and our customer-centric approach. We will continue to make frequent investments to support sustainable growth, enhance our service capabilities, and expand our market reach. We believe we are well-equipped to navigate the evolving landscape and capitalize on the growth opportunity ahead.
Speaker Change: Our strategy of remiss folks all leveraging all culp China.
Speaker Change: Our infrastructure.
Speaker Change: Technology.
Speaker Change: Extremists team and our customer centric approach.
Speaker Change: We will continue to mix through Ken investment to support sustainable growth.
Speaker Change: Our service capabilities and expand our market reach we believe we are well equipped to navigate the evolving that escape and kicked her life on the golf ops guarantee okay.
unknown: And with that, that's our last question. So I want to thank everyone for participating on today's call. We look forward to providing additional updates in the near future.
Speaker Change: Thank you and with that that's our last question.
Speaker Change: So I want to thank everyone for participating on today's call. We look forward to providing additional updates in the near future in the meantime, we can be reached at info at arm Laci Dot com.
unknown: In the meantime, we can be reached at info at armlogi.com.
Matthew Avenatti: or you can contact me at Matthew at strategic-ir.com. Thank you.
Matthew: Or you can contact me at Matthew at strategic Dash IR Dot com. Thank you.
Operator: Ladies and gentlemen, that does conclude our conference today. Thank you for your participation. You may now disconnect.
Matthew: Ladies and gentlemen that does conclude our conference today. Thank you for your participation you may now disconnect.
Matthew: [music].
Matthew: Yeah.
Matthew: Okay.
Matthew: [music].