Armlogi Holding Corp.

Please note that today's call is being recorded. I will now turn the meeting over to Matthew Abinanti, Investor Relations for Armology's Holding Corp. Thank you, and thanks to everyone joining us today for Armology's earnings conference call to discuss the third quarter in 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 Forum 10Q, which was also filed with the Securities and Exchange Commission. Both are available in the Investor Relations section of our website at .armlogy.com. Joining us on the call today is Scott Shue, Chief Financial Officer of the company. 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 questions. Before we get started, I'm going to review the Safe Harbor Statement. 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 to us. Such forward-looking statements relate to the 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 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 statements. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of uncertainties or assumptions. The forward-looking statements discussed on this call and other statements made from time to time by us or our representatives may not occur in actual events and results, may differ materially, and are subject to risks, uncertainties, and assumptions about us. And with that, I would like to hand the call to Scott Chu, Chief Financial Officer of Armology. Good morning, Scott.

Scott Chu, Chief Financial Officer of Armology Good morning, Mitch, and thank you everyone for joining us today. Our Chairman and CEO, I.D. Zhou, is unfortunately away from racing company business today and the scientists regards. This quarter, we continue to see a revenue boom 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 tariff fees, and we believe these will have a positive impact on our sectors and for armologies specifically. We will touch on them more throughout the call. Our third quarter and the nine-month result reflects a period of the continued revenue growth, which underscores the ongoing demand for our logistic solutions. However, we also face significant operational investments and market-related cost pressure. That's the impact of our probability. We are diligently working to optimize our extended warehouse footprint and enhance operational efficiency across all our service lines. 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 on-large and the broader logistic sector. We anticipate that these positive trade developments will help alleviate some of the cost pressures we have been experimenting and create a more favorable operating environment. While we maintain a cautious approach in our overall planning, prioritizing sustainable world and improve the probability. The resolutions and trade tensions allow us to look forward with greater confidence. Our commitment to diverging technology and providing comprehensive supply chain solutions for our clients remains steadfast as we navigate the evolving economic landscape and the position on large to capitalize on these new opportunities for future success. 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 phone thank you. Both of the fridge are available on our investor relation website. My comments here will provide a high level overview. Third quarter ended March 31st, 2025. We saw continued top-line momentum with total revenue reaching 45.8 million, an increase of .3% compared to the Santeria last year. This course reflects the continued demand for our services. House of Sales over quarter were 45.6 million. As we have discussed, this course were fired by delivery due to operational investments under 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 the profitability. And we anticipate that the recent positive developments in US-China trade relations may contribute to elevating some of these course pressures in the future. General and administrative expenses were 4.47 million, reflecting investments to support our growing operations. This resulted in a loss for operations of 4.19 million for the third quarter. Our net loss for this quarter was 3.76 million or 0.09 per day and diluting share. Looking at the nine-month period, ending March 31st, 2025, total revenue grew .6% to 139.5 million, again underscoring the substantive demand for our comprehensive logistic solutions. House of Sales of the nine months is were .2.3

million.

This resulted in a gross loss of 2.85 million for the period. We are focused on strategic initiatives to address these margin challenges. And as mentioned, the recent positive developments in US-China trade discussion are expected to contribute very heavily to mitigating some of these course pressures going forward. General and administrative expenses for the nine months were 10.8 million. The loss for operations for the nine-month period was 13.65 million. And our net loss was 10.06 million or 0.24 per

day and diluting share.

We are managing

our

balance sheet prudently and are focused on initiating two input-prone profitability as we move forward, especially in light of the more favorable trade environment we anticipate. Looking ahead, we are navigating a dynamic market environment, while evolving the global trade policies and the inflationary pressures have certainly presented ongoing challenges. The recent successful conclusion of US-China trade talks marks a significant positive development. This breakthrough resulting in reduced tariff fees is expected to create a more favorable operating landscape for the logistics sector and importantly for on-ranging. We are proactively working to optimize our operations, managing costs, and the enhance of service delivery. We anticipate that this improved trade relations will contribute to alleviating some of the course pressures we have experienced. While the full impact of these macroeconomic shifts will unfold over time, we are cautiously optimistic. Our focus remains squarely 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'll continue to make strategic investment to support sustainable growth and strengthen our market position. Now with a more positive backdrop for international trade. 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 development in US-China trade relations, which we believe will benefit our operation and industry at large. We remain confident in our large strategy of dedicating an ability to create value in the evolving global logistic landscape. I want to sincerely thank our shareholders for their continued support and trust in our larger. With that comprehensive financial overview, I will turn it back to Matt for questions.

Thank you, Scott. We will now move to the question and answer portion of the call. Thank you to everyone who has submitted questions. Our first question, despite cost pressures, the company is continuing to show revenue growth. Could you elaborate on the key drivers behind this sustained demand for ArmLogic services and how the company is working to improve profitability moving forward?

That's an excellent question. The continued revenue growth up .3% for the quarter and the .6% for the nine months 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. Regarding profitability, we are very focused on optimizing our expanded operational footprint, enhancing efficiencies through the technology and diligently managing our costs. Furthermore, as we discussed, the recent positive development in US-China trade relations with reduced tariff fees are expected to alleviate some of their external cost pressures which should contribute very well to our margin improvement effort over time. We are confident in our strategic initiatives to navigate the current environment and the enhanced shareholder value. Thank you.

The recent success in US-China trade talks seems to be a significant positive. Can you provide a bit more color on how specifically Armlogy is positioned to benefit from this improved trade environment?

Certainly, the success for US-China trade talks and the resulting tariff reductions are indeed very encouraging news for the entire logistic sector and particularly for a company like Armlogy that facilitates chain-specific trade. Specifically, we anticipate several benefits. Firstly, reduced tariff fees can lower the lending cost of goods for our customers, potentially stimulating the higher trade volumes. 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 networks and the comprehensive services offering to support all clients as they capitalize on this more favorable trade environment. We have already begun factoring this into our strategic planning to maximize these emerging opportunities.

Considering the dynamic market and the recent positive trade news, how does Armlogy view its long-term strategic positioning and its ability to capture future growth opportunities?

Yes, we are very confident in our long-term strategic positioning. Armlogy has built a robust infrastructure with a significant warehouse footprint in key U.S. locations, offering a comprehensive suite of logistic services. These allow 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. Our strategy remains focused on leveraging our core strength, our infrastructure, our technology, our experience team, and our customer-centric approach. We will continue to make through-ten 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 opportunities ahead.

Thank you. And with that, that's our last question. And 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 armlogy.com, or you can contact me at matthew at strategic-ir

.com. Thank you.

OPERATOR Ladies and gentlemen, that does conclude our conference today. Thank you for your participation. You may now disconnect.