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    Linkage Global Inc Announces Fiscal Year 2024 Financial Results

    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,
     
        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)
     
        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)
     
        For the years ended
    September 30,
     
        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)
     
        For the years ended
    September 30,
     
        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  





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    Linkage Global Inc Announces Fiscal Year 2024 Financial Results 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 …