Linkage Global Inc Announces First Half 2025 Financial Results
TOKYO, July 03, 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 unaudited financial results for the six months ended March 31, 2025.
First Half 2025 Selected Financial Metrics
- Total revenues decreased by approximately $1.30 million to approximately $3.50 million for the six months ended March 31, 2025, compared to approximately $4.80 million for the same period of 2024.
- Gross profit increased by approximately $1.99 million to $2.70 million for the six months ended March 31, 2025, from approximately $0.71 million for the same period of 2024. Cross-border sales margin improved from 12.70% to 21.31%, while integrated e-commerce services margin rose from 50.67% to 93.56% during the same period.
- Net loss increased from approximately $1.41 million for the six months ended March 31, 2024 to approximately $3.09 million for the six months ended March 31, 2025.
First Half 2025 Financial Results
Revenues
Total revenues declined by approximately $1.30 million, or 27.02%, from approximately $4.80 million for the six months ended March 31, 2024, to approximately $3.50 million for the same period of 2025, mainly due to a sharp drop in cross-border sales.
Revenues from cross-border sales fell by approximately $3.74 million, or 82.35%, from approximately $4.54 million for the six months ended March 31, 2024 to approximately $0.80 million for the six months ended March 31, 2025. EXTEND, our Japanese subsidiary, contributed $0.43 million or 12.32% of total revenue, down 87.66% year-over-year. This decline was driven by poor market response to its 3C electronics product strategy. In response, the Company shifted focus to higher-margin, fully managed e-commerce services and reallocated staff accordingly. The cross-border business is now being restructured, with new product selections and the Company plans to explore TikTok store and livestream sales in Japan.
Revenues from Integrated e-commerce services surged by $2.44 million, or 930.08%, from approximately $0.26 million to $2.70 million for the six months ended March 31, 2025, largely due to the launch of fully managed e-commerce operations in 2025. This new model, contributing $2.59 million in revenue and $2.46 million in gross profit, involves end-to-end store management for merchants, with fees based on gross merchandize volume (GMV).
Revenues from digital marketing dropped from approximately $0.13 million for the six months ended March 31, 2024 to approximately $0.08 million for the six months ended March 31, 2025, after ending the Google partnership in January 2025 and beginning deregistration in April. Revenues from training and consulting, TikTok agent services declined by $0.10 million, or 75.25%, from $0.13 million to $0.03 million.
Cost of Revenues
Cost of revenues fell 80.34%, from approximately $4.09 million for the six months ended March 31, 2024, to approximately $0.80 million for the same period in 2025. This was mainly due to a sharp drop in cross-border sales costs, which declined $3.33 million, or 84.09%, from $3.96 million to $0.63 million, reflecting reduced procurement in line with lower sales. In contrast, costs for integrated e-commerce services rose $0.04 million, or 34.55%, from $0.13 million to $0.17 million. Of this, $0.13 million was related to the new fully managed e-commerce business, primarily covering staff salaries. Commission costs declined due to the termination of related services.
Gross Profit
Gross profit increased by approximately $1.99 million, or 280.57%, from approximately $0.71 million to approximately $2.70 million, mainly driven by the new fully managed e-commerce business, which contributed $2.46 million in profit with a 95.12% margin. The high margin was due to low operating costs, mostly staff salaries, with no enterprise resource planning development expenses in the current period as they were previously recognized. Cross-border sales margin improved from 12.70% to 21.31% due to a shift toward higher-margin products. Integrated e-commerce services margin rose from 50.67% to 93.56%, also driven by the new business model.
Operating Expenses
Operating expenses rose by 91.01%, from approximately $2.27 million to approximately $4.34 million, mainly due to higher general and administrative expenses, which increased 123.94%, from $1.74 million to $3.90 million for the six months ended March 31, 2025, which was primarily attributable to the allowance for credit loss, stock-based compensation and post-IPO financial and legal consulting fees.
Selling and marketing expenses dropped 31.15%, from approximately $0.23 million to approximately $0.16 million, due to lower freight and advertising costs, as well as lower marketing and promotion expenses.
Research and development expenses declined 7.87%, from approximately $0.30 million to approximately $0.27 million, as ERP development staff shifted to operational roles and their salaries were reclassified under business costs.
Other Expenses
Other expenses mainly include non-operating income and interest expenses, net. Non-operating income rose from $998 to approximately $0.39 million. Net interest expenses increased significantly from approximately $0.06 million to approximately $1.50 million, mainly due to the issuance of $10 million in convertible bonds in October 2024, with an actual interest rate of 42.52%, generating $1.56 million in interest expenses during the reporting period.
Income Tax (Provision)/Benefit
Income tax (provision) /benefit decreased by approximately $0.56 million, from approximately $0.02 million of tax benefit for the six months ended March 31, 2024 to approximately $0.34 million of tax expenses for the six months ended March 31, 2025. This decrease was primarily attributable to net profit for the fully managed e-commerce operation services with a tax rate of 16.5%.
Net Loss
As a result, net loss increased by approximately $1.68 million, or 119.62%, from approximately $1.41 million to approximately $3.09 million.
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
Tel: +86 1381 185 7742
Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2025 AND SEPTEMBER 30, 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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As of March 31, 2025 |
As of September 30, 2024 |
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USD | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 328,081 | 2,000,732 | ||||||
Accounts receivable, net | 6,405,486 | 6,302,696 | ||||||
Inventories, net | 35,675 | 66,331 | ||||||
Deposits paid to media platforms | — | 482,650 | ||||||
Prepaid expenses and other current assets, net | 1,625,517 | 2,689,581 | ||||||
Amount due from related parties | 1,243,450 | — | ||||||
Short-term loan to third party | 8,993,306 | 410,000 | ||||||
Interest receivable from loan to third party | 386,261 | — | ||||||
Total current assets | 19,017,776 | 11,951,990 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 50,594 | 85,807 | ||||||
Right-of-use assets, net | 516,167 | 653,730 | ||||||
Total non-current assets | 566,761 | 739,537 | ||||||
TOTAL ASSETS | 19,584,537 | 12,691,527 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | 324,069 | 624,723 | ||||||
Accrued expenses and other current liabilities | 303,413 | 236,813 | ||||||
Short-term debts | — | 32,810 | ||||||
Current portion of long-term debts | 243,557 | 428,702 | ||||||
Contract liabilities | 208,483 | 533,625 | ||||||
Amounts due to related parties | — | 314,544 | ||||||
Lease liabilities - current | 203,600 | 231,978 | ||||||
Convertible notes | 7,884,325 | 964,865 | ||||||
Interest payable of convertible notes | 1,555,689 | — | ||||||
Income tax payable | 850,866 | 1,017,619 | ||||||
Total current liabilities | 11,574,002 | 4,385,679 | ||||||
Non-current liabilities | ||||||||
Long-term debts | 734,023 | 839,560 | ||||||
Lease liabilities – non-current | 334,973 | 441,504 | ||||||
Total non-current liabilities | 1,068,996 | 1,281,064 | ||||||
Total liabilities | 12,642,998 | 5,666,743 | ||||||
Commitments and contingencies (Note 21) | ||||||||
Shareholders’ equity | ||||||||
Class A ordinary shares (par value of US$0.0025 per share; 998,000,000 ordinary shares authorized, 3,080,000 and 2,150,000 ordinary shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively) * | 7,700 | 5,375 | ||||||
Class B ordinary shares (par value of US$0.0025 per share; 2,000,000 ordinary shares authorized, 700,000 and nil ordinary shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively) * | 1,750 | — | ||||||
Additional paid in capital | 8,564,021 | 5,591,596 | ||||||
Treasury Shares | (500 | ) | — | |||||
Statutory reserve | 11,348 | 11,348 | ||||||
Retained earnings | (1,474,142 | ) | 1,613,217 | |||||
Accumulated other comprehensive loss | (168,638 | ) | (196,752 | ) | ||||
Total shareholders’ equity | 6,941,539 | 7,024,784 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,584,537 | 12,691,527 |
Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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For the six months ended March 31, |
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2025 | 2024 | |||||||
USD | ||||||||
Revenues | 3,501,947 | 4,798,363 | ||||||
Cost of revenues | (804,142 | ) | (4,089,486 | ) | ||||
Gross profit | 2,697,805 | 708,877 | ||||||
Operating expenses | ||||||||
General and administrative expenses | (3,904,027 | ) | (1,743,309 | ) | ||||
Selling and marketing expenses | (157,637 | ) | (228,956 | ) | ||||
Research and development expenses | (274,371 | ) | (297,811 | ) | ||||
Total operating expenses | (4,336,035 | ) | (2,270,076 | ) | ||||
Operating loss | (1,638,230 | ) | (1,561,199 | ) | ||||
Other expenses | ||||||||
Interest expenses, net | (1,496,504 | ) | (60,726 | ) | ||||
Other non-operating income | 387,816 | 998 | ||||||
Total other expenses | (1,108,688 | ) | (59,728 | ) | ||||
Loss before income taxes | (2,746,918 | ) | (1,620,927 | ) | ||||
Income tax (provision)/ benefit | (340,441 | ) | 215,161 | |||||
Net loss | (3,087,359 | ) | (1,405,766 | ) | ||||
Net loss attributable to the Company’s ordinary shareholders | (3,087,359 | ) | — | |||||
Other comprehensive income/(loss) | ||||||||
Foreign currency translation adjustment | 28,114 | (10,107 | ) | |||||
Total comprehensive loss attributable to the Company’s ordinary shareholders | (3,059,245 | ) | (1,415,873 | ) | ||||
Loss per ordinary share attributable to ordinary shareholders | ||||||||
Basic and Diluted* | (0.90 | ) | (0.67 | ) | ||||
Weighted average number of ordinary shares outstanding | ||||||||
Basic and Diluted* | 3,415,533 | 2,084,890 |
Linkage Global Inc UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (In U.S. dollars, except for share and per share data, or otherwise noted) |
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For the six months ended March 31, |
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2025 | 2024 | |||||||
USD | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | (3,087,359 | ) | (1,405,766 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Effect of exchange rate changes | 202,551 | 1,184 | ||||||
Allowance for credit loss | 1,344,218 | 568,229 | ||||||
Interest payable of convertible notes | 1,555,689 | — | ||||||
Interest receivable from loan to third party | (386,261 | ) | — | |||||
Stock-Based Compensation | 1,209,000 | — | ||||||
Depreciation | 22,205 | 40,959 | ||||||
Amortization of lease right-of-use assets | 114,791 | 110,229 | ||||||
Inventory provision | 4,328 | 2,203 | ||||||
Deferred tax benefits | — | (216,713 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (1,649,559 | ) | (725,166 | ) | ||||
Prepaid expenses and other current assets, net | (261,232 | ) | (3,233,957 | ) | ||||
Inventories, net | 26,328 | 539,517 | ||||||
Accounts payable | (300,654 | ) | (320,628 | ) | ||||
Contract liabilities | (325,142 | ) | 25,350 | |||||
Accrued expenses and other current liabilities | 66,600 | (5,188 | ) | |||||
Amounts due from related parties | 341,426 | — | ||||||
Amounts due to related parties | (314,238 | ) | (16,189 | ) | ||||
Tax payable | (166,753 | ) | 928,135 | |||||
Operating lease liabilities | (134,909 | ) | (103,326 | ) | ||||
Net cash used in operating activities | (1,738,971 | ) | (3,811,127 | ) | ||||
Cash flow from investing activities | ||||||||
Repayments of loan to a related party | (99,876 | ) | — | |||||
Loan to third party | (8,640,000 | ) | — | |||||
Net cash used in investing activities | (8,739,876 | ) | — | |||||
Cash flow from financing activities | ||||||||
Proceeds from issuance of Class A ordinary shares upon the completion of IPO | — | 5,356,792 | ||||||
Proceeds from Issuance of convertible notes | 9,002,368 | — | ||||||
Proceeds from short-term debts | — | 132,258 | ||||||
Repayments of short-term debts | (32,810 | ) | (33,726 | ) | ||||
Repayments of long-term debts | (124,959 | ) | (179,420 | ) | ||||
Repayments of other long-term debts | (108,037 | ) | (878,962 | ) | ||||
Payments of listing expenses | — | (150,606 | ) | |||||
Net cash provided by financing activities | 8,736,562 | 4,246,336 | ||||||
Effect of exchange rate changes | 69,634 | (58,969 | ) | |||||
Net change in cash and cash equivalents | (1,672,651 | ) | 376,240 | |||||
Cash and cash equivalents, beginning of the period | 2,000,732 | 1,107,480 | ||||||
Cash and cash equivalents, end of the period | 328,081 | 1,483,720 | ||||||
Supplemental disclosures of cash flow information: | ||||||||
Income tax paid | — | 150,124 | ||||||
Interest expense paid | 33,056 | 65,901 | ||||||
Supplemental disclosures of non-cash activities: | ||||||||
Obtaining right-of-use assets in exchange for operating lease liabilities | 155,160 | 147,083 |

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