Elite Express Holding Inc.

Elite Express Holding Inc. (ETS) operates as a holding company, with its primary business conducted through its wholly-owned subsidiary, JAR Transportation Inc., a California-based entity specializing in last-mile delivery services within California ¹. The company's core mission is to optimize last-mile logistics by providing efficient, reliable, and innovative delivery solutions, focusing on retrieving packages from distribution hubs and delivering them to recipients' doorsteps ¹. As of the date of this annual report, ETS employs approximately 26 full-time staff, including approximately 20 drivers, and maintains a fleet of approximately 23 trucks and trailers ¹. The company provides exclusive pickup and delivery services within a designated service area covering approximately 1,665.28 square miles ¹.

The company's business model is centered on providing last-mile delivery services as an Independent Service Provider (ISP) exclusively for Federal Express Corporation (FedEx) ². For the reporting period from December 1, 2022, to November 30, 2025, and as of the date of this annual report, 100% of ETS's revenue was derived from FedEx ². Revenue is generated from both fixed service charges, including weekly service charges, branding-related reimbursements, and peak season surcharges, and activity-based charges, which include fees based on the number of stops, packages delivered, e-commerce orders, fuel surcharges, and other variable components ³. The charges are incurred and paid on a weekly basis ⁴.

ETS's services are entirely focused on last-mile delivery. The company operates seven days a week, typically from 6:00 am to 11:00 pm ⁵. On an average day, operations involve 1,100 to 1,700 stops, with approximately 1,800 to 2,500 packages picked up and delivered ⁵. During peak seasons, daily stops are estimated to rise to approximately 2,000 ⁵. The company utilizes GroundCloud, a logistics software, for route optimization, driver management, and compliance monitoring, which is powered by AI to enhance operational efficiency by monitoring driving conditions, detecting risky behaviors, and optimizing routes in real time ⁶.

For the fiscal year ended November 30, 2025 (Successor), Elite Express Holding Inc. reported total revenue of $2,665,948 ⁷, an increase of $222,006 or 9.1% compared to the combined total revenue of $2,443,942 for the fiscal year ended November 30, 2024 ⁷. The company incurred a net loss of $2,185,987 for the fiscal year ended November 30, 2025 ⁸. Gross profit for the fiscal year ended November 30, 2025, was $18,211, representing a gross margin of 0.7% of total revenue ⁹. Operating expenses totaled $2,522,056, or 94.6% of total revenue ¹⁰. Basic and diluted loss per common share was $(0.16) for the fiscal year ended November 30, 2025 ¹¹. As of November 30, 2025, cash and cash equivalents were $1,308,529 ¹², and working capital was $12,017,462 ¹³. The company reported no long-term fixed contractual obligations or commitments as of November 30, 2025 ¹⁴.

Comparing fiscal year 2025 to fiscal year 2024 (combined), total revenue increased by $222,006 or 9.1% ⁷. Fixed revenue decreased by $54,733 or 7.8% to $644,046, accounting for 24.1% of total revenue in 2025, primarily due to a 10.1% reduction in weekly fixed service fees by FedEx starting October 2024 ¹⁵. Activity-based revenue, however, increased to $2,017,782, or 75.7% of total revenue in 2025, up from $1,716,865 or 70.2% in 2024, driven by increased pricing standards from FedEx and higher operational throughput, particularly in e-commerce deliveries ¹⁶. E-commerce deliveries generated $1,137,266 in revenue in 2025, representing 42.7% of total revenue, and remained the largest revenue component ¹⁷. Cost of revenue increased by $219,692 or 9.0% to $2,647,737 in 2025, primarily due to higher labor and service costs ¹⁸. Net loss significantly widened from $378,438 in 2024 (combined) to $2,185,987 in 2025 ⁸.

During the fiscal year ended November 30, 2025, the company completed its initial public offering (IPO) on August 20, 2025, generating net proceeds of approximately $13.7 million after deducting underwriting discounts and offering expenses ¹⁹. The company also received capital contributions of $630,000 from two shareholders during fiscal 2025 ²⁰. In January 2025, ETS entered into stock purchase agreements to acquire Wandun Enterprise Inc and WJ Management Inc, two last-mile delivery service providers, but these agreements were terminated on March 28, 2025, because the financial performance of the target businesses did not meet expectations after operational control was assumed ²¹. The income earned under these agreements during their active period was recognized as other income ²¹. The company also purchased three electric trucks as part of its eco-friendly transition strategy ²².

Elite Express Holding Inc.'s growth strategies are primarily focused on acquisition/scale expansion, cost optimization, and technological innovation, presented in that order of priority ²³. The company plans to expand its last-mile delivery routes, particularly in high-demand metropolitan and suburban areas, to increase market share, service volume, and improve profitability by spreading fixed costs over a larger volume ²⁴. This expansion is also expected to secure contracts with new customers, such as large e-commerce platforms, retailers, and logistics providers, thereby diversifying the customer base and enhancing revenue streams ²⁴. Acquiring additional routes in close proximity is anticipated to streamline logistics, optimize delivery sequences, and reduce travel time, fuel consumption, and vehicle wear, further improving efficiency and reducing operational costs ²⁴.

In the long run, beyond expanding last-mile delivery, ETS plans to acquire long-haul trucks to enter the long-haul logistics market ²⁵. This diversification is expected to add new revenue by managing the entire logistics chain, from regional distribution centers to last-mile hubs, creating a more comprehensive network for end-to-end logistics solutions, potentially accelerating delivery timelines and capturing additional market share ²⁵. As of the date of the annual report, the company is actively seeking new delivery routes to expand its service areas and exploring connections with potential customers ²⁶. Approximately $1.5 million of the net proceeds from the initial offering has been used for the development of the "Route X" application and related research and development activities, as well as for working capital and general corporate purposes ²⁷.

The company aims to further optimize operations and maximize cost-effectiveness through several measures ²⁸. This includes utilizing flexible staffing models, such as part-time and seasonal hires, to efficiently handle fluctuating delivery demands, supported by data-driven scheduling ²⁸. ETS also plans to invest in robust financial systems to streamline payroll, expense tracking, and budgeting for improved cost control and financial visibility ²⁸. Furthermore, the company is committed to investing in employee development and retention through competitive wages and benefits to attract and retain skilled drivers, thereby reducing turnover ²⁸.

ETS has partnered with a third-party developer to create an interactive app platform that will connect third-party drivers with merchants seeking route delivery services ²⁹. This platform is expected to generate revenue by facilitating these connections, allowing drivers to search for delivery opportunities based on geographic location and merchants to select drivers based on experience, availability, and vehicle type ²⁹. Funding for the app's development comes from internal resources, with approximately 5% of the net IPO proceeds allocated for ongoing maintenance and upgrades ²⁹. The first version of this app is available for testing, and the company expects to launch the platform in the near future ²⁹.

In response to environmental concerns, ETS is committed to adopting eco-friendly delivery solutions, such as electric vehicles (EVs), bikes, and carbon-neutral delivery methods ³⁰. Transitioning to EVs is expected to lower fuel costs, mitigate fuel price volatility, and offer long-term savings in maintenance and tax incentives, despite higher initial investment ³⁰. This initiative is also anticipated to enhance the company's appeal to environmentally conscious consumers and corporations, strengthening its reputation ³⁰. As of the date of the annual report, three electric trucks have been purchased, with plans to deploy additional EVs as operations expand and capital resources permit ³¹.

The company plans to invest in suitable AI technologies to further optimize delivery routes and operations, including engaging AI solution providers for intelligent vehicles and customized logistics software ³². These solutions are expected to integrate advanced features like comprehensive vehicle tracking, digital fleet management, intelligent dispatching, and data-driven analytics to enhance operational efficiency, improve maintenance, optimize delivery schedules, and support data-driven decision-making ³². ETS plans to gradually update its delivery system by integrating customized AI technology and expects to integrate autonomous vehicles within the next three to five years ³³.

Elite Express Holding Inc. faces significant risks due to its heavy dependence on FedEx, which accounts for 100% of its revenue, making the company vulnerable to changes in this relationship, including potential reductions in service demand, pricing concessions, or FedEx developing its own logistics capabilities ³⁴. The company's revenue recognition and financial reporting rely on FedEx's systems, and the inability to obtain Service Organization Control (SOC) 1 Type I or Type II reports or SOC 2 reports from FedEx represents a material internal control deficiency, increasing the risk of inaccurate or untimely data, system outages, or audit delays ³⁵. Operational risks include the challenges of maintaining high-quality services at scale, such as heightened risks of theft, loss, damage, or delay in package handling, and driver misconduct ³⁶. The business is also susceptible to significant seasonal fluctuations, with peak periods accounting for approximately 10% to 12% of annual revenue, which can lead to forecasting inaccuracies and resource allocation challenges ³⁷. Changing fuel and energy prices pose a material risk, as these costs account for a significant percentage of the cost structure, and the company's mitigation strategy of adopting electric vehicles may not be effective ³⁸. The company has a limited operating history, has incurred net losses, and faces challenges in managing growth, executing strategies, and integrating potential acquisitions ³⁹. Furthermore, the dual-class stock structure concentrates voting control with the Chairman of the Board and CEO, who collectively hold approximately 83.28% of the voting power, limiting other stockholders' influence on corporate matters ⁴⁰.

Management's message emphasizes a commitment to innovation and efficiency, with a clear focus on optimizing last-mile logistics through efficient, reliable, and innovative delivery solutions. The company's strategic priorities for the period ahead are centered on acquisition/scale expansion, cost optimization, and technological innovation, in that order of priority. Management explicitly states that approximately $1.5 million of the net proceeds from the initial offering has been allocated towards the development of the "Route X" application and related research and development activities, as well as for working capital and general corporate purposes ²⁷. Additionally, approximately 5% of the net proceeds from the initial public offering will be allocated for ongoing maintenance and upgrades of the app platform ²⁹. The company plans to integrate autonomous vehicles within the next three to five years ³³. Management acknowledges the significant dependence on FedEx, which accounts for 100% of revenue, and is actively exploring opportunities to diversify its customer base ².