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Armlogi Holding Corp.

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Business Summary

Armlogi Holding Corp. is a rapidly expanding U.S.-based warehousing and logistics service provider offering comprehensive supply-chain solutions, primarily focused on warehouse management and order fulfillment . The company caters to cross-border e-commerce merchants, predominantly from China, who aim to sell in the U.S. market, as well as domestic e-commerce merchants seeking efficient logistics solutions . As of June 30, 2025, Armlogi operates ten warehouses across the U.S., with an aggregate gross floor area of approximately 3,905,020 square feet . The company's business model is designed to address the logistical complexities faced by international e-commerce merchants, such as long delivery times, high damage rates, and peak season congestion, by providing overseas storage facilities and integrated services .

The company's competitive strengths include quality warehousing and logistics services that meet ISO 9001 standards, high inventory accuracy averaging 99.64% during fiscal year 2025, and 24/7 customer support in over 30 languages . Their warehouses are equipped to handle bulky items, a niche where traditional providers may struggle . Armlogi also offers reasonable service and delivery fees due to the large volume of goods processed, leveraging long-term agreements with third-party logistics providers like FedEx and UPS to secure discounts . Furthermore, the company utilizes its proprietary Armlogi Order Management System (OMS) built on Amazon Web Services cloud infrastructure to provide efficient and low-error warehousing services, managing shipments from receipt to delivery with real-time tracking and data analytics .

Armlogi's core business model revolves around three primary revenue streams: Transportation Services, Warehousing Services, and Other Services . Transportation services involve purchasing and reselling freight services from third-party carriers, with fees typically ranging from $5 to $75 per service depending on factors like load type, weight, volume, and delivery distance . Warehousing services generate revenue through inventory management and storage, with fees ranging from $3 to $500 per service based on SKUs, weight, volume, and storage time . Other services primarily include customs brokerage, where fees typically range from $70 to $100 per service based on the number of items declared . For the fiscal year ended June 30, 2025, approximately 84% of revenue was generated from PRC-based customers, a decrease from 96% in fiscal year 2024 . The company had an active customer base of 505 as of June 30, 2025, up from 105 in the prior year .

For the fiscal year ended June 30, 2025, total revenue increased by $23.4 million, or 14.0%, to $190,408,258 , compared to $166,977,034 in fiscal year 2024 . However, the company reported a net loss of $15,348,767 for fiscal year 2025, a significant decrease from a net income of $7,441,218 in fiscal year 2024. Basic and diluted net loss per share for fiscal year 2025 was $0.37 , compared to basic and diluted net earnings per share of $0.19 in fiscal year 2024. Gross profit turned into a loss of $3,000,569 for fiscal year 2025, down from a gross profit of $18,082,807 in fiscal year 2024, resulting in a gross profit margin of -1.6% versus 10.8% in the prior year. Operating loss for fiscal year 2025 was $17,676,112 , compared to operating income of $8,115,015 in fiscal year 2024. Cash and cash equivalents and restricted cash at the end of fiscal year 2025 totaled $13,577,827 , up from $9,950,384 in fiscal year 2024. Net cash provided by operating activities was $1,460,845 for fiscal year 2025, a decrease from $2,992,889 in fiscal year 2024.

Revenue from transportation services increased by $11.7 million, or 10.1%, to $127,013,393 in fiscal year 2025, driven by new warehouse locations and increased shipment volume . Warehousing services revenue grew by $11.8 million, or 22.9%, to $63,285,107 , also attributed to growth in transportation services and new warehouses . Other services revenue decreased by $0.04 million, or 27.3%, to $109,758 . Cost of service increased significantly by $44.5 million, or 29.9%, to $193,408,827 , primarily due to increased warehouse labor, rental, and operating expenses from new facilities, and a decline in gross profit margin on FedEx shipments from 23% in fiscal 2024 to 7% in fiscal 2025 . General and administrative expenses increased by $4.7 million, or 47.2%, to $14,675,543 , mainly due to higher office expenses, rental expenses from additional warehouses, and professional fees .

During the fiscal year ended June 30, 2025, Armlogi expanded its operations by opening two new warehouses, in addition to a new warehouse in Illinois launched at the end of fiscal year 2024 . These new facilities required incremental labor hiring and handled orders with lower profit margins, contributing to increased costs . The company also launched international ocean freight services in January 2023 and is actively expanding and refining these offerings to provide a comprehensive one-stop logistics solution from overseas factory to U.S. consumer doorstep . In November 2024, Armlogi entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd., granting the right to sell up to $50.0 million of common stock and receiving a Pre-Paid Advance of up to $21.0 million in convertible promissory notes, subject to a 10% original issue discount . The company issued 43,147 shares of common stock for a commitment fee of $250,000 in December 2024, and converted $750,000 and $200,000 of the SEPA loan into common stock in March and May 2025, respectively.

Business Outlook

Armlogi Holding Corp. intends to pursue several growth strategies to develop its business and strengthen brand loyalty. The company plans to expand and diversify its customer base and geographic coverage, continuing to grow its customer base in China while also expanding into Southeast Asia, including Vietnam, Thailand, Indonesia, and the Philippines, and Mexico . Domestically, Armlogi plans to build out additional infrastructure in key U.S. markets such as California, Georgia, Tennessee, Florida, Illinois, and Arizona, utilizing various funding sources like cash reserves, financial institution loans, and investor fundraising for leasing additional warehouse space .

A key growth area involves enhancing customers' supply chain efficiency by expanding the breadth and depth of solutions and services. The company launched international ocean freight services in January 2023 and is actively expanding and refining these offerings to provide a comprehensive one-stop logistics solution for manufacturer customers, covering the entire journey from overseas factory to end consumer in the U.S. . This expansion is estimated to cost $3 million to $4 million over the next two years , with funding options including existing cash reserves, financial institution loans, or investor capital . Armlogi also plans to develop comprehensive and sophisticated solutions spanning the entire supply chain, from ocean freight to distribution and delivery, offering value-added services like sales forecasts and inventory planning, and developing modular solutions for easier customer adoption .

The company plans to further invest in supply chain technologies to drive sustainable growth, focusing on fundamental technologies such as artificial intelligence, data analytics, and supply chain planning and optimization algorithms . This includes smart systems for ocean freight tracking and management, automated sales forecasting, inventory management, and real-time data analysis . These investments are expected to enhance the ability to provide smart supply chain solutions, offer valuable data insights to customers, and bring benefits such as improved inventory management, faster delivery times, reduced operational costs, increased supply chain transparency, enhanced sustainability, and improved overall customer satisfaction . Armlogi also intends to open its technology platforms to customers and partners to accelerate the digitization and streamlining of their supply chains, fostering collaboration, innovation, and efficiency .

Armlogi also plans to pursue additional strategic and financially attractive acquisitions to expand its supply-chain-related warehousing and logistics business, aiming for synergies and returns exceeding its cost of capital . The company has internal resources dedicated to tracking potential acquisition prospects and believes its fast growth and wide network of contacts position it as an acquirer of choice for smaller players at attractive valuations .

For capital allocation, the company is scheduled to commence the expansion of its warehouse network by leasing additional warehouse space in California and Illinois by December 2024, with an estimated cost of approximately $4 million to $5 million . Additionally, it plans to refine and optimize its international ocean freight services with an estimated cost of approximately $2 million . The company believes its current cash and cash generated from operating and financing activities will be sufficient to meet working capital and capital expenditures for at least the next 12 months . As of June 30, 2025, the company had aggregate annual operating lease obligations totaling $171,100,224 and finance lease obligations of $889,927 for future fiscal years. The company's dividend policy is to retain earnings, if any, for use in operations, and it has not paid any cash dividends on its common stock as of the date of the annual report .

Risk Factors

Armlogi faces significant risks, particularly from intense and evolving competition in the U.S. warehousing and logistics industry, which could lead to price reductions, reduced margins, and loss of market share . A major concentration risk stems from its heavy reliance on PRC-based customers, who generated approximately 84% of revenue in fiscal year 2025 , making the company vulnerable to adverse changes in U.S.-China political and economic relations, including trade conflicts and tariffs that could increase costs for customers or discourage their U.S. market participation . For instance, the current Trump administration has implemented new tariffs on Chinese imports, raising certain rates to as high as 145%, with China imposing retaliatory tariffs of up to 125% on U.S. goods, although a temporary easing reduced these to 30% and 10% respectively until November 10, 2025 . Disruptions to international supply chain systems, such as port congestion and container shortages, could reduce demand for services and increase logistics costs . Labor actions, including port strikes like the International Longshoremen’s Association strike in October 2024 affecting 14 major ports and approximately 45,000 workers on the East and Gulf Coasts , could disrupt the U.S. transportation network, increasing costs and causing shipment delays . Customer concentration is also a risk, with the two largest customers, Goldensee Ltd. and Kimberly Tenneco Inc., accounting for 22.0% and 10.8% of total revenue, respectively, in fiscal year 2025 . Supplier concentration is also present, with UPS accounting for approximately 15.2% and MEGA CORP LOGISTIC LLC for approximately 10% of total purchases in fiscal year 2025, and FedEx accounting for 9% . The company also identified a material weakness in its internal controls over financial reporting due to a lack of formal policies and procedures related to risk assessment and internal control environment .

Management Priorities

Management emphasizes the company's rapid growth since inception and its position as a fast-growing U.S.-based warehousing and logistics service provider. They highlight the comprehensive package of supply-chain solutions offered, including warehouse management and order fulfillment, which addresses the logistical challenges faced by cross-border e-commerce merchants . Management's strategic priorities include expanding and diversifying the customer base and geographic coverage, particularly into Southeast Asia and Mexico, and building additional infrastructure in key U.S. markets . They are also focused on enhancing customers' supply chain efficiency by expanding solutions and services, such as the international ocean freight services launched in January 2023, which they plan to refine and optimize over the next two years with an estimated cost of $3 million to $4 million . A further key priority is investing in supply chain technologies, including artificial intelligence and data analytics, to improve efficiency, transparency, and sustainability, and to open up technology platforms to customers and partners . Finally, management intends to pursue additional strategic and financially attractive acquisitions to expand the business and achieve synergies . The company believes that its current cash and cash generated from operating and financing activities will be sufficient to meet current and anticipated working capital requirements and capital expenditures for at least the next 12 months .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
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  3. [3] Item 1, Business — Overview
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  5. [5] Item 1, Business — Our Competitive Strengths
  6. [6] Item 1, Business — Our Competitive Strengths
  7. [7] Item 1, Business — Our Competitive Strengths
  8. [8] Item 1, Business — Our Competitive Strengths
  9. [9] Item 1, Business — Our Business Model
  10. [10] Item 1, Business — Our Business Model
  11. [11] Item 1, Business — Our Business Model
  12. [12] Item 1, Business — Our Business Model
  13. [13] Item 1, Business — Overview
  14. [14] Item 1, Business — Overview
  15. [15] Item 7, MD&A — Results of Operations
  16. [16] Item 7, MD&A — Results of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Results of Operations
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  22. [22] Item 7, MD&A — Results of Operations
  23. [23] Item 7, MD&A — Results of Operations
  24. [24] Item 7, MD&A — Results of Operations
  25. [25] Item 7, MD&A — Results of Operations
  26. [26] Item 7, MD&A — Results of Operations
  27. [27] Item 7, MD&A — Liquidity and Capital Resources
  28. [28] Item 7, MD&A — Liquidity and Capital Resources
  29. [29] Item 7, MD&A — Cash Flows for the Fiscal Years Ended June 30, 2025 and 2024
  30. [30] Item 7, MD&A — Cash Flows for the Fiscal Years Ended June 30, 2025 and 2024
  31. [31] Item 7, MD&A — Results of Operations
  32. [32] Item 7, MD&A — Results of Operations
  33. [33] Item 7, MD&A — Results of Operations
  34. [34] Item 7, MD&A — Results of Operations
  35. [35] Item 7, MD&A — Results of Operations
  36. [36] Item 7, MD&A — Results of Operations
  37. [37] Item 7, MD&A — Results of Operations
  38. [38] Item 7, MD&A — Operating expenses
  39. [39] Item 7, MD&A — Operating expenses
  40. [40] Item 7, MD&A — Results of Operations
  41. [41] Item 7, MD&A — Results of Operations
  42. [42] Item 1, Business — Our Growth Strategies
  43. [43] Item 7, MD&A — Liquidity and Capital Resources
  44. [44] Item 12, Stockholders’ Equity
  45. [45] Item 12, Stockholders’ Equity
  46. [46] Item 12, Stockholders’ Equity
  47. [47] Item 1, Business — Our Growth Strategies
  48. [48] Item 1, Business — Our Growth Strategies
  49. [49] Item 1, Business — Our Growth Strategies
  50. [50] Item 1, Business — Our Growth Strategies
  51. [51] Item 1, Business — Our Growth Strategies
  52. [52] Item 1, Business — Our Growth Strategies
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  56. [56] Item 1, Business — Our Growth Strategies
  57. [57] Item 1, Business — Our Growth Strategies
  58. [58] Item 1, Business — Our Growth Strategies
  59. [59] Item 1A, Risk Factors — Operational Risks
  60. [60] Item 1A, Risk Factors — Operational Risks
  61. [61] Item 7, MD&A — Liquidity and Capital Resources
  62. [62] Item 7, MD&A — Commitments and Contractual Obligations
  63. [63] Item 7, MD&A — Commitments and Contractual Obligations
  64. [64] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend Policy
  65. [65] Item 1A, Risk Factors — Economic, Political, and Market Risks
  66. [66] Item 1A, Risk Factors — Economic, Political, and Market Risks
  67. [67] Item 1A, Risk Factors — Economic, Political, and Market Risks
  68. [68] Item 1A, Risk Factors — Economic, Political, and Market Risks
  69. [69] Item 1A, Risk Factors — Economic, Political, and Market Risks
  70. [70] Item 1A, Risk Factors — Economic, Political, and Market Risks
  71. [71] Item 1A, Risk Factors — Economic, Political, and Market Risks
  72. [72] Item 1A, Risk Factors — Operational Risks
  73. [73] Item 1A, Risk Factors — Operational Risks
  74. [74] Item 9A, Controls and Procedures — Internal Control Over Financial Reporting
  75. [75] Item 7, MD&A — Overview
  76. [76] Item 1, Business — Our Growth Strategies
  77. [77] Item 1, Business — Our Growth Strategies
  78. [78] Item 1, Business — Our Growth Strategies
  79. [79] Item 1, Business — Our Growth Strategies
  80. [80] Item 7, MD&A — Liquidity and Capital Resources

Analysis on 5/20/2026