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Linkage Global reported financial results for fiscal year 2024, showing a 19.19% decrease in total revenues to USD10.29 million from USD12.73 million in FY2023. Despite revenue decline, gross profit increased by 123.91% to USD4.17 million, primarily driven by new fully managed e-commerce operation services launched in April 2024, which generated USD3.28 million in revenue with an 89.62% gross margin.
Cross-border sales decreased by USD4.11 million, with Japanese subsidiary experiencing a 53.12% decline due to yen depreciation. Digital marketing revenues fell from USD1.53 million to USD0.31 million following Google’s stricter incentive policies. The company’s net loss improved by 32.69% to USD0.44 million from USD0.65 million in FY2023.
Linkage Global ha riportato i risultati finanziari per l’anno fiscale 2024, mostrando una diminuzione del 19,19% nei ricavi totali, pari a USD10,29 milioni, rispetto ai USD12,73 milioni dell’anno fiscale 2023. Nonostante il calo dei ricavi, il profitto lordo è aumentato del 123,91%, raggiungendo USD4,17 milioni, principalmente grazie ai nuovi servizi di gestione completa del commercio elettronico lanciati nell’aprile 2024, i quali hanno generato USD3,28 milioni di ricavi con un margine lordo dell’89,62%.
Le vendite transfrontaliere sono diminuite di USD4,11 milioni, con la filiale giapponese che ha subito un calo del 53,12% a causa della svalutazione dello yen. I ricavi da marketing digitale sono scesi da USD1,53 milioni a USD0,31 milioni in seguito alle politiche di incentivo più severe di Google. La perdita netta dell’azienda è migliorata del 32,69%, arrivando a USD0,44 milioni, rispetto ai USD0,65 milioni dell’anno fiscale 2023.
Linkage Global reportó los resultados financieros para el año fiscal 2024, mostrando una disminución del 19,19% en los ingresos totales a USD10,29 millones desde USD12,73 millones en el año fiscal 2023. A pesar de la caída en los ingresos, la ganancia bruta aumentó un 123,91% a USD4,17 millones, impulsada principalmente por los nuevos servicios de operaciones de comercio electrónico totalmente gestionados lanzados en abril de 2024, que generaron USD3,28 millones en ingresos con un margen bruto del 89,62%.
Las ventas transfronterizas disminuyeron en USD4,11 millones, con la subsidiaria japonesa experimentando una disminución del 53,12% debido a la depreciación del yen. Los ingresos por marketing digital cayeron de USD1,53 millones a USD0,31 millones tras las políticas de incentivos más estrictas de Google. La pérdida neta de la empresa mejoró un 32,69%, alcanzando USD0,44 millones desde USD0,65 millones en el año fiscal 2023.
Linkage Global는 2024 회계연도에 대한 재무 결과를 보고하였으며, 총 수익이 19.19% 감소하여 USD10.29 백만에서 USD12.73 백만으로 줄어들었습니다. 수익 감소에도 불구하고, 총 이익은 123.91% 증가하여 USD4.17 백만에 달했으며, 이는 2024년 4월에 출시된 새로운 완전 관리형 전자상거래 운영 서비스에 의해 주도된 것으로, 이 서비스는 USD3.28 백만의 수익을 창출하고 89.62%의 총 이익률을 기록했습니다.
국경 간 판매는 USD4.11 백만 감소하였으며, 일본 자회사는 엔화 가치 하락으로 인해 53.12% 감소했습니다. 디지털 마케팅 수익은 구글의 더 엄격한 인센티브 정책에 따라 USD1.53 백만에서 USD0.31 백만으로 줄어들었습니다. 회사의 순손실은 회계연도 2023의 USD0.65 백만에서 USD0.44 백만으로 32.69% 개선되었습니다.
Linkage Global a rapporté les résultats financiers pour l’exercice 2024, montrant une baisse de 19,19% des revenus totaux à USD10,29 millions, contre USD12,73 millions pour l’exercice 2023. Malgré la baisse des revenus, le bénéfice brut a augmenté de 123,91% pour atteindre USD4,17 millions, principalement grâce aux nouveaux services d’opérations de commerce électronique entièrement gérés lancés en avril 2024, ayant généré USD3,28 millions de revenus avec une marge brute de 89,62%.
Les ventes transfrontalières ont diminué de USD4,11 millions, la filiale japonaise ayant connu une baisse de 53,12% en raison de la dépréciation du yen. Les revenus du marketing numérique sont tombés de USD1,53 millions à USD0,31 millions suite aux politiques d’incitation plus strictes de Google. La perte nette de l’entreprise s’est améliorée de 32,69%, atteignant USD0,44 millions contre USD0,65 millions lors de l’exercice 2023.
Linkage Global hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht, die einen Rückgang der Gesamterlöse um 19,19% auf USD10,29 Millionen im Vergleich zu USD12,73 Millionen im Geschäftsjahr 2023 zeigen. Trotz des Rückgangs der Erlöse stieg der Bruttogewinn um 123,91% auf USD4,17 Millionen, hauptsächlich bedingt durch die im April 2024 eingeführten neuen vollständig verwalteten E-Commerce-Betriebsdienste, die USD3,28 Millionen an Erlösen mit einer Bruttomarge von 89,62% generierten.
Die grenzüberschreitenden Verkäufe sanken um USD4,11 Millionen, wobei die japanische Tochtergesellschaft einen Rückgang von 53,12% aufgrund der Yen-Abwertung erlebte. Die Einnahmen aus digitalem Marketing fielen von USD1,53 Millionen auf USD0,31 Millionen in Folge von Googles strengeren Anreizrichtlinien. Der Nettoverlust des Unternehmens verbesserte sich um 32,69% auf USD0,44 Millionen im Vergleich zu USD0,65 Millionen im Geschäftsjahr 2023.
Positive
- Gross profit increased 123.91% to USD4.17 million
- New e-commerce operation services generated USD3.28 million with 89.62% margin
- Net loss improved by 32.69% to USD0.44 million
- Integrated e-commerce services revenue grew 77.64% to USD3.81 million
Negative
- Total revenues declined 19.19% to USD10.29 million
- Cross-border sales dropped 38.82% to USD6.48 million
- Digital marketing revenues plummeted 79.56% to USD0.31 million
- Operating expenses increased 74.49% to USD4.24 million
Insights
Linkage Global’s FY2024 results reveal a strategic transformation in progress, marked by a shift from lower-margin cross-border sales to higher-margin integrated services. While total revenue declined 19.19% to $10.29M, the company’s gross profit surged 123.91% to $4.17M, demonstrating successful margin expansion.
Key strategic developments include:
- The new fully managed e-commerce operation services launched in April 2024 generated $3.28M revenue with an impressive 89.62% gross margin, offsetting declining cross-border sales
- Geographic revenue diversification reduced Japan exposure from 68.71% to 39.86% of total revenue, with significant growth in Hong Kong and China markets
- Digital marketing pivot from Google to social platforms like TikTok and Facebook shows adaptability to changing market conditions
The reduction in net loss by 32.69% to $0.44M indicates improving operational efficiency, despite increased operating expenses. However, challenges remain:
- Currency exposure remains a significant risk, with yen depreciation affecting both revenue translation and consumer behavior
- Operating expenses increased 74.49%, potentially pressuring margins if revenue growth doesn’t accelerate
- The transition from traditional cross-border sales to integrated services requires continued investment in capabilities and talent
The company’s strategic pivot towards higher-margin services and geographic diversification positions it for potentially stronger performance, but execution and market conditions will be important factors in achieving sustainable profitability.
TOKYO, Jan. 24, 2025 (GLOBE NEWSWIRE) — Linkage Global Inc (“Linkage Cayman”, or the “Company”), a cross-border e-commerce integrated services provider headquartered in Japan, today announced its financial results for the fiscal year ended September 30, 2024.
Fiscal Year 2024 Financial Highlights
- Total revenues decreased by approximately 19.19% from USD12.73 million for the fiscal year ended September 30, 2023 to USD10.29 million for the fiscal year ended September 30, 2024.
- Our new fully managed e-commerce operation services that was launched in April 2024, generated USD3.28 million in revenue.
- Gross profit increased by approximately USD2.31 million, or 123.91%, from USD1.86 million for the fiscal year ended September 30, 2023 to USD4.17 million for the fiscal year ended September 30, 2024.
- Net loss decreased by USD0.21 million, or 32.69%, from USD0.65 million for the fiscal year ended September 30, 2023 to USD0.44 million for the fiscal year ended September 30, 2024.
Mr. Zhihua Wu, Chairman and CEO of the Company, commented: “For the fiscal year ended September 30, 2024, total revenues decreased by about 19.19% from USD12.73 million in 2023 to USD10.29 million, primarily attributable to the decrease of cross-border sales. Specifically, cross-border revenues fell by USD4.11 million, with our Japanese subsidiary experiencing a 53.12% decline. This was largely driven by yen depreciation, which raised prices in Japan and resulted in a decline in consumers’ purchasing power. It was also exacerbated by the depreciation of the Japanese yen against U.S. dollars.”
“Our integrated e-commerce services saw a rise of USD1.67 million, thanks to our new fully managed e-commerce operation services, which generated USD3.28 million in revenue. However, digital marketing revenues plummeted from USD1.53 million to USD0.31 million because Google updated agreements with more stringent criteria for incentives. In order to cope with the change of policies from Google, we actively engaged in direct and indirect cooperations with other social platforms, such as TikTok and Facebook.”
“Our gross profit increased by USD2.31 million or 123.91% to USD 4.17 million, largely due to the new business fully managed e-commerce operation services with gross profit of USD2.94 million and gross profit margin of 89.62%.”
“Looking ahead, while we faced challenges in fiscal year of 2024, our expansion in integrated e-commerce positions us for future growth. We remain committed to enhancing partnerships, optimizing operations, and exploring new market opportunities. These strategies will help us navigate market fluctuations and achieve sustainable growth in the coming years.”
Fiscal Year 2024 Financial Results
Revenues
Total revenues decreased by approximately USD2.44million, or 19.19%, from approximately USD12.73 million for the year ended September 30, 2023 to approximately USD10.29 million for the year ended September 30, 2024, primarily attributable to the decrease of cross-border sales.
Our breakdown of revenues by revenue streams for the years ended September 30, 2024 and 2023 is summarized below:
| For the Years Ended September 30, |
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| 2024 | 2023 | |||||||
| USD | USD | |||||||
| Cross border Sales | 6,476,939 | 10,587,053 | ||||||
| Integrated E-commerce services | 3,812,742 | 2,146,286 | ||||||
| Fully managed e-commerce operation services | 3,280,002 | — | ||||||
| Digital marketing services | 312,180 | 1,527,247 | ||||||
| Others | 220,560 | 619,039 | ||||||
| Total revenues | 10,289,681 | 12,733,339 | ||||||
Our breakdown of revenues by geographic areas for the years ended September 30, 2024, and 2023 is summarized below:
| For the Years Ended September 30, |
||||||||
| 2024 | 2023 |
|||||||
| USD | USD |
|||||||
| Japan | 4,101,865 | 8,749,200 | ||||||
| Hong Kong | 3,612,126 | 1,987,182 | ||||||
| China | 2,575,690 | 1,996,957 | ||||||
| Total revenues | 10,289,681 | 12,733,339 | ||||||
Revenues from cross-border sales fell by USD 4.11 million, or 38.82%, from USD10.59 million in 2023 to USD6.48 million in 2024. Our Japanese subsidiary, EXTEND, accounted for USD 4.10 million or 39.86% of total revenues, but saw a 53.12% decline. This drop was primarily due to the yen’s depreciation, which increased prices and reduced consumer purchasing power for non-essential 3C electronic products. The decrease was also exacerbated by the depreciation of the Japanese yen against U.S. dollars. The average exchange rate also worsened, dropping from $1=¥138.93 in 2023 to $1=¥150.33 in 2024, respectively, resulting in a decrease of 8.20%.
Revenues from integrated e-commerce services rose by USD1.67 million or 77.64%, from USD2.15 million to USD3.81 million, driven by a new fully managed e-commerce operation generating USD3.28 million.
Revenues from digital marketing services dropped to USD0.31 million due to stricter Google incentive policies and a 40.76% decline in merchant numbers. To adapt, we are partnering with platforms like TikTok and Facebook while expanding our e-commerce services.
Revenues from training, consulting, and TikTok agent services decreased by USD0.40 million or 64.37%, from USD 0.62 million to USD 0.22 million.
Cost of Revenues
Cost of revenues decreased by 43.68% from approximately USD10.87 million for the year ended September 30, 2023 to approximately USD6.12 million for the year ended September 30, 2024.
Gross Profit
Gross profit increased by approximately USD2.31 million, or 123.91%, from USD1.86 million for the year ended September 30, 2023 to USD4.17 million for the year ended September 30, 2024. The increase was primarily attributable by the new business fully managed e-commerce operation services with gross profit of USD2.94 million and gross profit margin of 89.62%. The high gross profit margin is mainly due to the low cost, which was mainly composed of the salaries of the operation personnel.
Gross profit margin of cross-border sales increased from 7.82% for the year ended September 30, 2023 to 13.99% for the year ended September 30, 2024. The decrease was mainly due to that the depreciation of the Japanese yen has led to a rise in prices of goods in Japan.
Gross profit margin of integrated e-commerce related services increased from 48.10% for the year ended September 30, 2023 to 85.52% for the year ended September 30, 2024. The increase was primarily attributable by the new business fully managed e-commerce operation services with gross profit of USD2.94 million and gross profit margin of 89.62%.
Operating Expenses
Operating expenses increased from USD2.43 million for the year ended September 30, 2023 to USD4.24 million for the year ended September 30, 2024, representing a year-on-year increase of 74.49%. This increase was primarily attributable to the increases in our general and administrative expenses, offsetting the decreases in selling and marketing expenses and research and development expenses.
Other income/(expenses), net
Other non-operating income increased from USD0.01 million for the year ended September 30, 2023 to USD0.02 million for the year ended September 30, 2024. Investment income increased by 2003.35% from USD2,119 for the year ended September 30, 2023 to approximately USD44,570 for the year ended September 30, 2024.
Income taxes
Income tax (expenses) /benefits decreased by USD0.65 million, from USD0.06 million of tax benefit for the year ended September 30, 2023 to USD0.59 million of tax expenses for the year ended September 30, 2024. This decrease was primarily attributable to net profit for the year ended September 30, 2024, and the valuation allowance for deferred tax assets.
Net (loss)
As a result of the foregoing, net loss decreased by USD0.21 million, or 32.69%, from USD0.65 million for the year ended September 30, 2023 to USD0.44 million for the year ended September 30, 2024.
About Linkage Global Inc
Linkage Global Inc is a holding company incorporated in the Cayman Islands with no operations of its own. Linkage Cayman conducts its operations through its operating subsidiaries in Japan, Hong Kong, and mainland China. As a cross-border e-commerce integrated services provider headquartered in Japan, through its operating subsidiaries, the Company has developed a comprehensive service system comprised of two lines of business complementary to each other, including (i) cross-border sales and (ii) integrated e-commerce services. For more information, please visit www.linkagecc.com.
Safe Harbor Statement
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s annual reports on Form 20-F and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wealthfsllc.com
| Linkage Global Inc CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 AND 2023 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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| As of September 30, | |||||||||
| 2024 | 2023 | ||||||||
| USD | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 2,000,732 | 1,107,480 | |||||||
| Accounts receivable, net | 6,302,696 | 2,011,047 | |||||||
| Inventories, net | 66,331 | 679,732 | |||||||
| Deferred offering costs | — | 1,076,253 | |||||||
| Deposits paid to media platforms | 482,650 | 3,717,773 | |||||||
| Prepaid expenses and other current assets, net | 2,689,581 | 1,053,687 | |||||||
| Short-term loan to third party | 410,000 | — | |||||||
| Total current assets | 11,951,990 | 9,645,972 | |||||||
| Non-current assets | |||||||||
| Property and equipment, net | 85,807 | 158,642 | |||||||
| Deferred tax assets | — | 149,129 | |||||||
| Right-of-use assets, net | 653,730 | 624,945 | |||||||
| Other non-current assets | — | 54,825 | |||||||
| Total non-current assets | 739,537 | 987,541 | |||||||
| TOTAL ASSETS | 12,691,527 | 10,633,513 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | 624,723 | 1,142,667 | |||||||
| Accrued expenses and other current liabilities | 236,813 | 309,986 | |||||||
| Short-term debts | 32,810 | — | |||||||
| Current portion of long-term debts | 428,702 | 535,226 | |||||||
| Contract liabilities | 533,625 | 530,488 | |||||||
| Amounts due to related parties | 314,544 | 1,413,604 | |||||||
| Lease liabilities – current | 231,978 | 187,214 | |||||||
| Convertible bonds | 964,865 | — | |||||||
| Income tax payable | 1,017,619 | 581,235 | |||||||
| Total current liabilities | 4,385,679 | 4,700,420 | |||||||
| Non-current liabilities | |||||||||
| Long-term debts | 839,560 | 1,996,326 | |||||||
| Lease liabilities – noncurrent | 441,504 | 439,854 | |||||||
| Total non-current liabilities | 1,281,064 | 2,436,180 | |||||||
| Total liabilities | 5,666,743 | 7,136,600 | |||||||
| Commitments and contingencies (Note 22) | |||||||||
| Shareholders’ equity | |||||||||
| Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 21,500,000 and 20,000,000 ordinary shares issued and outstanding as of September 30, 2024 and 2023, respectively) * | 5,375 | 5,000 | |||||||
| Additional paid in capital | 5,591,596 | 1,549,913 | |||||||
| Statutory reserve | 11,348 | 11,348 | |||||||
| Retained earnings | 1,613,217 | 2,052,553 | |||||||
| Accumulated other comprehensive loss | (196,752 | ) | (121,901 | ) | |||||
| Total shareholders’ equity | 7,024,784 | 3,496,913 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 12,691,527 | 10,633,513 | |||||||
| Linkage Global Inc CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) FOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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| For the years ended September 30, |
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| 2024 | 2023 | 2022 | ||||||||||
| USD | ||||||||||||
| Revenues | 10,289,681 | 12,733,339 | 22,028,303 | |||||||||
| Cost of revenues | (6,123,025 | ) | (10,872,484 | ) | (18,323,802 | ) | ||||||
| Gross profit | 4,166,656 | 1,860,855 | 3,704,501 | |||||||||
| Operating expenses | ||||||||||||
| General and administrative expenses | (3,506,075 | ) | (1,373,695 | ) | (1,047,552 | ) | ||||||
| Selling and marketing expenses | (434,856 | ) | (595,804 | ) | (812,062 | ) | ||||||
| Research and development expenses | (302,280 | ) | (588,108 | ) | (628,350 | ) | ||||||
| Gain from disposal of property and equipment | — | 125,804 | 193,191 | |||||||||
| Total operating expenses | (4,243,211 | ) | (2,431,803 | ) | (2,294,773 | ) | ||||||
| Operating (loss)/profit | (76,555 | ) | (570,948 | ) | 1,409,728 | |||||||
| Other income/(expenses) | ||||||||||||
| Investment income | 44,570 | 2,119 | 8,402 | |||||||||
| Impairment loss from equity investment | — | (60,046 | ) | — | ||||||||
| Interest income/(expenses), net | 160,685 | (102,360 | ) | (79,455 | ) | |||||||
| Other non-operating income | 21,644 | 14,557 | 113,658 | |||||||||
| Total other income/(expenses), net | 226,899 | (145,730 | ) | 42,605 | ||||||||
| Income/(loss) before income taxes | 150,344 | (716,678 | ) | 1,452,333 | ||||||||
| Income tax (provision)/ benefit | (589,680 | ) | 63,950 | (385,958 | ) | |||||||
| Net (loss)/income | (439,336 | ) | (652,728 | ) | 1,066,375 | |||||||
| Net (loss)/income | (439,336 | ) | (652,728 | ) | 1,066,375 | |||||||
| Other comprehensive income | ||||||||||||
| Foreign currency translation adjustment | (74,851 | ) | (15,524 | ) | (57,722 | ) | ||||||
| Total comprehensive (loss) /income attributable to the Company’s ordinary shareholders | (514,187 | ) | (668,252 | ) | 1,008,653 | |||||||
| Earnings per ordinary share attributable to ordinary shareholders | ||||||||||||
| Basic and Diluted* | (0.02 | ) | (0.03 | ) | 0.05 | |||||||
| Weighted average number of ordinary shares outstanding | ||||||||||||
| Basic and Diluted* | 21,175,342 | 20,000,000 | 20,000,000 | |||||||||
| Linkage Global Inc CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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| For the years ended September 30, |
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| 2024 | 2023 | 2022 | ||||||||||
| USD | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net (loss)/income | (439,336 | ) | (652,728 | ) | 1,066,375 | |||||||
| Adjustments to reconcile net (loss)/income to net cash (used in) /provided by operating activities: | ||||||||||||
| Effect of exchange rate changes | (226,846 | ) | — | — | ||||||||
| Allowance for credit loss | 958,584 | 116,428 | — | |||||||||
| Depreciation and amortization | 86,911 | 83,226 | 81,625 | |||||||||
| Amortization of lease right-of-use assets | 224,451 | 180,464 | — | |||||||||
| Share of profit from long-term investment | — | (2,119 | ) | (8,402 | ) | |||||||
| Disposal gain from property and equipment | — | (125,804 | ) | (193,191 | ) | |||||||
| Inventory write-downs | 11,858 | 19,981 | 21,282 | |||||||||
| Deferred tax expenses/(benefits) | 148,239 | (160,402 | ) | 80,519 | ||||||||
| Long-term investment impairment | — | 60,046 | — | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | (5,023,387 | ) | 36,738 | (910,221 | ) | |||||||
| Other non-current assets | — | — | (61,039 | ) | ||||||||
| Prepaid expenses and other current asset, net | 1,870,567 | (3,871,930 | ) | (520,377 | ) | |||||||
| Inventories, net | 601,543 | (359,859 | ) | (78,455 | ) | |||||||
| Accounts payable | (517,944 | ) | 624,347 | (11,703 | ) | |||||||
| Contract liabilities | 3,137 | 84,680 | 371,639 | |||||||||
| Accrued expenses and other current liabilities | (37,987 | ) | (25,816 | ) | 152,448 | |||||||
| Amounts due from related parties | — | 34,552 | (40,098 | ) | ||||||||
| Amounts due to related parties | 446,469 | 139,772 | 946,379 | |||||||||
| Tax payable | 436,384 | 113,597 | 272,148 | |||||||||
| Operating lease liabilities | (178,037 | ) | (178,341 | ) | — | |||||||
| Net cash (used in)/provided by operating activities | (1,635,394 | ) | (3,883,168 | ) | 1,168,928 | |||||||
| Cash flow from investing activities | ||||||||||||
| Purchase of property and equipment | — | (12,137 | ) | (481,391 | ) | |||||||
| Proceeds from disposal of property and equipment | — | 1,745,094 | 1,265,217 | |||||||||
| Proceed from withdrawal of long-term investment | 44,570 | 93,574 | — | |||||||||
| Provide short-term loan to third party | (410,000 | ) | — | — | ||||||||
| Purchase of long-term investments | — | — | (40,098 | ) | ||||||||
| Net cash (used in)/provided by investing activities | (365,430 | ) | 1,826,531 | 743,728 | ||||||||
| Cash flow from financing activities | ||||||||||||
| Proceeds from issuance of Class A ordinary shares upon the completion of IPO | 5,356,417 | — | — | |||||||||
| Proceeds from issuance of convertible bonds | 999,957 | — | — | |||||||||
| Payment of service fees for convertible bonds | (351,000 | ) | — | — | ||||||||
| Proceeds from short-term debts | 133,044 | — | 160,391 | |||||||||
| Proceeds from long-term debts | — | 1,238,592 | 1,167,861 | |||||||||
| Repayments of short-term debts | (101,778 | ) | (107,963 | ) | (280,692 | ) | ||||||
| Repayments of long-term debts | (1,325,703 | ) | (1,918,181 | ) | (1,001,815 | ) | ||||||
| Proceed of interest-free loan from related parties | 3,031,467 | — | — | |||||||||
| Repayments of loans to a related party | (4,593,092 | ) | — | — | ||||||||
| Capital contribution from shareholder | — | 1,430,612 | — | |||||||||
| Payments for deferred offering costs | (273,287 | ) | (1,041,447 | ) | — | |||||||
| Net cash provided by/(used in) financing activities | 2,876,025 | (398,387 | ) | 45,745 | ||||||||
| Effect of exchange rate changes | 18,051 | (123,887 | ) | (51,067 | ) | |||||||
| Net change in cash and cash equivalents | 893,252 | (2,578,911 | ) | 1,907,334 | ||||||||
| Cash and cash equivalents, beginning of the year | 1,107,480 | 3,686,391 | 1,779,057 | |||||||||
| Cash and cash equivalents, end of the year | 2,000,732 | 1,107,480 | 3,686,391 | |||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Income tax paid | 2,050 | 150,124 | 33,291 | |||||||||
| Interest expense paid | 48,607 | 65,901 | 57,776 | |||||||||
| Supplemental disclosures of non-cash activities: | ||||||||||||
| Obtaining right-of-use assets in exchange for operating lease liabilities | 209,652 | 805,409 | N/A | |||||||||
FAQ
What caused LGCB’s revenue decline in fiscal year 2024?
LGCB’s revenue decline was primarily due to decreased cross-border sales, particularly in Japan, caused by yen depreciation which affected consumer purchasing power. The Japanese subsidiary experienced a 53.12% decline in revenue.
How much revenue did LGCB’s new e-commerce operation services generate in 2024?
LGCB’s new fully managed e-commerce operation services, launched in April 2024, generated USD3.28 million in revenue with an 89.62% gross profit margin.
What was LGCB’s gross profit margin improvement in FY 2024?
LGCB’s gross profit increased by 123.91% from USD1.86 million to USD4.17 million, primarily due to the new fully managed e-commerce operation services.
How did LGCB’s digital marketing revenue perform in 2024?
LGCB’s digital marketing revenue decreased from USD1.53 million to USD0.31 million due to Google’s updated agreements with stricter criteria for incentives.
