BTOC Amlogi Holding Corporation

Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today provided a business update, and reported financial results for the three-month and nine-month periods ended March 31, 2024.

Financial Results for the Three Months Ending March 31, 2024:

• Total revenue for the three months ended March 31, 2024, was $38.4 million, up 28% from $30.1 million in the same period in 2023.
  • Our Transportation Services segment reported revenue of $25.0 million, an increase of 18.2% from $21.2 million in the same period in 2023. The increase was driven by the rapid expansion of our business in 2023, as we expanded our warehouse operational capacities in California and New Jersey. This segment comprises reselling third-party carrier services to our customers.
  • Our Warehousing Services segment generated $13.4 million, a 50.5% increase from $8.9 million over the same period in 2023. This growth was driven by the growth in our transportation services. This segment comprises inventory management and storage offerings.
  • Our Other Services segment generated revenue of $0.04 million compared to $0.08 million in the same period in 2023. This segment is primarily comprised of customs brokerage services.
• Our net income was $0.7 million and $2.2 million for the three months ended March 31, 2024 and 2023, respectively.

Financial Results for the Nine Months Ending March 31, 2024:

• Total revenue for the nine months ended March 31, 2024, were $121.7 million, up 39.9% from $87.0 million in the same period in 2023.
  • Our Transportation Services segment reported revenue of $84.7 million, an increase of 36.6% from $62.0 million in the same period in 2023. The increase was driven by the rapid expansion of our business in 2023, as we expanded our warehouse operational capacities in California and New Jersey.
  • Our Warehousing Services segment generated $36.6 million, a 49.2% increase from $24.5 million over the same period in 2023. This increase was driven by the significant growth in our transportation services.
  • Our Other Services segment generated revenue of $0.4 million, which was in line with those in the same period in 2023.
• Our net income was $7.2 million and $9.0 million for the nine months ended March 31, 2024 and 2023, respectively.

Operational Highlights

• In May, we closed our initial public offering of 1,600,000 shares of common stock at a public offering price of $5.00 per share to the public for a total of $8,000,000 of gross proceeds to the Company before deducting underwriting discounts and offering expenses. Net proceeds from the offering will allow us to expand our warehouse network and develop warehousing and logistics services, international ocean freight services, and port trucking services.

• In May, we signed a lease for a new 733,200-square-foot warehouse located near the Port of Savannah in Georgia. We expect that this new warehouse will significantly enhance our capacity to serve our clients more efficiently and quickly.

• In June, we became an authorized warehouse provider for sellers on the Temu marketplace. Armlogi will offer Temu sellers streamlined access to its warehousing facilities and tailored logistics services to provide fast order fulfillment and improved inventory management through this collaboration. This collaboration with a major e-commerce platform is expected to expand our capabilities to serve more e-commerce sellers.

• In June, we announced a strategic partnership with Massimo Group to provide streamlined warehousing and logistics services for the assembly and distribution of vehicles, aiming to meet the rising market demand across key U.S. regions.

Management Commentary

Aidy Chou, Chairman and Chief Executive Officer of Armlogi, commented, “At Armlogi, we offer a one-stop shop for warehousing and logistics services supported by advanced technology and specialized equipment which help us ensure that every package delivered exceeds the expectations of our customers and partners worldwide.”

“We are pleased with our revenue growth trajectory compared to a year ago, highlighted by our expanded warehouse operational capacities and the growth in our transportation services. Our quality warehousing and logistics services, coupled with our reasonable service and delivery fees and advanced warehouse and order management technology, pave the way for our continued business growth in the $2 trillion global cross-border e-commerce industry.”

“I extend my heartfelt gratitude to our team, partners, and shareholders for their steadfast support as we continue to grow and strengthen our position in the logistics industry.”

Conference Call & Audio Webcast

Armlogi’s management team will hold an earnings conference call at 1:30 PM Pacific Time (4:30 PM Eastern Time) on Thursday, June 13, 2024, to discuss the Company’s financial results and provide an overview of the Company’s operations. Aidy Chou, Chairman and Chief Executive Officer, and Ian Zhou, Chief Financial Officer, will lead the conference call with other company executives available to answer questions.

To access the call by phone, please dial 1-800-579-2543 (international callers, please dial 1-785-424-1789) approximately 10 minutes before the start of the call. Refer to conference ID: ARMLOGI. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY

A live audio conference call webcast will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1675610&tp_key=7cdba4f6ed.

About Armlogi Holding Corp.

Armlogi Holding Corp., based in Walnut, CA, is a fast-growing U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With eleven warehouses covering over two million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com.

Forward-Looking StatementsThis press release contains 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 to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use 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. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.

Contact Information:

Company Contact:info@armlogi.com

Investor Relations Contact:Matthew Abenante, IRCPresidentStrategic Investor Relations, LLC Tel: 347-947-2093Email: matthew@strategic-ir.com

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ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2024 (UNAUDITED) AND JUNE 30, 2023(US$, except share data, or otherwise noted)
		March 31, 2024				June 30, 2023
		US$				US$
		Unaudited				Audited
Assets
Current Assets
Cash			3,985,003				6,558,099
Restricted cash			2,061,673				—
Accounts receivable and other receivable, net			25,104,670				17,396,421
Other current assets			2,019,166				1,642,346
Deferred share issuance costs			1,942,943				1,304,712
Prepaid expenses			1,222,050				796,904
Loan receivable			4,135,179				2,449,956
Total current assets			40,470,684				30,148,438
Non-current assets
Due from related parties			—				511,353
Property and equipment, net			10,254,072				7,629,117
Intangible assets, net			101,538				128,027
Right-of-use assets – operating leases			119,515,548				49,659,047
Right-of-use assets – finance leases			348,229				478,984
Total assets			170,690,071				88,554,966
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Current liabilities
Accounts payable and accrued liabilities			6,822,919				8,470,166
Income taxes payable			4,562,098				2,654,695
Due to related parties			350,209				351,909
Accrued payroll liabilities			463,162				263,356
Operating lease liabilities – current			23,890,833				12,111,309
Finance lease liabilities – current			170,531				198,448
Customer deposits			236,257				424,182
Total current liabilities			36,496,009				24,474,065
Non-current liabilities
Operating lease liabilities – non-current			99,268,652				37,741,370
Finance lease liabilities – non-current			193,238				290,795
Deferred income tax liabilities			1,470,581				735,122
Total liabilities			137,428,480				63,241,352
Commitments and contingencies
Stockholders’ equity
Common stock, US$0.00001 par value, 100,000,000 shares authorized, 40,000,000 issued and outstanding as of March 31, 2024 and June 30, 2023, respectively			400				400
Additional paid-in capital			9,751,163				8,985,007
Retained earnings			23,510,028				16,328,207
Total stockholders’ equity			33,261,591				25,313,614
Total liabilities and stockholders’ equity			170,690,071				88,554,966

ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOMEFOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)(US$, except share data, or otherwise noted)
		Three MonthsEndedMarch 31,2024				Three MonthsEndedMarch 31,2023				Nine MonthsEndedMarch 31,2024				Nine MonthsEndedMarch 31,2023
		US$				US$				US$				US$
		Unaudited				Unaudited				Unaudited				Unaudited
Revenue			38,439,935				30,133,445				121,689,863				86,961,574
Costs of sales			35,115,736				23,855,350				105,461,383				67,959,387
Gross profit			3,324,199				6,278,095				16,228,480				19,002,187
Operating costs and expenses:
General and administrative			3,269,493				3,051,137				8,097,196				6,974,146
Total operating costs and expenses			3,269,493				3,051,137				8,097,196				6,974,146
Income from operations			54,706				3,226,958				8,131,284				12,028,041
Other (income) expenses:
Other income			(914,419	)			(293,016	)			(1,902,813	)			(954,447	)
Finance costs			11,041				15,650				37,779				45,885
Total other (income) expenses			(903,378	)			(277,366	)			(1,865,034	)			(908,562	)
Income before provision for income taxes			958,084				3,504,324				9,996,318				12,936,603
Current income tax expense			200,612				1,335,189				2,079,038				3,495,908
Deferred income tax expense			75,252				(9,972	)			735,459				480,002
Total income tax expenses			275,864				1,325,217				2,814,497				3,975,910
Net income			682,220				2,179,107				7,181,821				8,960,693
Total comprehensive income			682,220				2,179,107				7,181,821				8,960,693
Basic & diluted net earnings per share			0.02				0.05				0.18				0.22
Weighted average number of shares of common stock-basic and diluted			40,000,000				40,000,000				40,000,000				40,000,000

ARMLOGI HOLDING CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE NINE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED)(US$, except share data, or otherwise noted)
		For The Nine Months Ended March 31, 2024				For The Nine Months Ended March 31, 2023
		US$				US$
		Unaudited				Unaudited
Cash Flows from Operating Activities:
Net income			7,181,821				8,960,693
Adjustments for items not affecting cash:
Net loss from disposal of fixed assets			6,895				—
Depreciation of property and equipment and right-of-use financial assets			1,444,441				918,112
Amortization			26,488				22,088
Non-cash operating leases expense			3,450,304				266,280
Current estimated credit loss			(22,827	)			—
Accretion of finance lease liabilities			37,779				45,885
Deferred income taxes			735,459				480,002
Interest income			(87,923	)			(5,609	)
Changes in operating assets and liabilities
Accounts receivable and other receivables			(7,685,423	)			(2,553,582	)
Other current assets			(376,820	)			(1,092,348	)
Prepaid expenses			(425,146	)			(318,266	)
Accounts payable & accrued liabilities			(2,212,137	)			571,336
Customer deposits			(187,925	)			—
Income tax payable			1,907,403				2,852,182
Accrued payroll liabilities			199,806				326,673
Net cash provided from operating activities			3,992,195				10,473,446
Cash Flows from Investing Activities:
Purchase of property and equipment			(3,080,643	)			(1,789,248	)
Purchase of intangible assets			—				(51,464	)
Loan receivable			(1,600,000	)			(2,425,000	)
Net cash used in investing activities			(4,680,643	)			(4,265,712	)
Cash Flows from Financing Activities:
Net proceeds received from (repaid to) related parties			1,000				(2,503,233	)
Proceeds (lend to) from related parties			511,353				(512,314	)
Repayments of finance lease liabilities			(163,253	)			(153,561	)
Deferred issuance costs for initial public offering			(638,231	)			(205,000	)
Capital contributions from stockholders			466,156				350,000
Net cash provided by (used in) financing activities			177,025				(3,024,108	)
Net increase in cash, cash equivalents and restricted cash			(511,423	)			3,183,626
Cash and cash equivalents, beginning of year			6,558,099				2,248,760
Cash and restricted cash, end of nine months period			6,046,676				5,432,386
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Income taxes paid			(171,635	)			(643,726	)
NON-CASH TRANSACTIONS:
Right-of-use assets acquired in exchange for operating lease liabilities			81,927,507				6,900,346
IPO expenses paid by stockholders			300,000				350,000