Lakeside Strengthens Market Position in China's Pharmaceutical Logistics with Key Sinopharm(Hubei) Contracts

Rhea-AI Summary

Lakeside Holding (Nasdaq: LSH) announces that its recently acquired subsidiary, Hupan Pharmaceutical, has established a partnership with Sinopharm Group Hubei for pharmaceutical logistics services. The partnership covers essential medicine storage, transportation, and logistics services, including handling refrigerated medications, peptide hormones, and medical supplies. Hupan Pharmaceutical is expected to contribute approximately $7 million in annual revenues to Lakeside. The collaboration strengthens Lakeside's position in China's healthcare market and expands its pharmaceutical logistics capabilities.

Positive

• Partnership with major industry leader Sinopharm Group Hubei
• Expected $7 million annual revenue contribution from Hupan Pharmaceutical acquisition
• Expansion into specialized pharmaceutical logistics services in China

Negative

• None.

Insights

Financial Analyst

The partnership with Sinopharm Hubei represents a significant strategic move for Lakeside, with the Hupan Pharmaceutical acquisition expected to generate $7 million in annual revenues. For a company with a market cap of $24.3 million, this represents approximately 29% of its current market value in additional annual revenue. The deal strengthens Lakeside's position in China's pharmaceutical logistics sector through:

• Access to Sinopharm's extensive distribution network
• Diversification into specialized medical logistics
• Enhanced revenue stability through long-term contracts

The partnership with China's leading pharmaceutical distributor provides a strong foundation for future growth and potential margin expansion in the high-value medical logistics segment. However, investors should monitor integration costs and execution risks in the Chinese market.

Supply Chain Expert

This strategic partnership significantly enhances Lakeside's capabilities in specialized pharmaceutical logistics, particularly in handling temperature-sensitive products and complex medical supplies. The collaboration with Sinopharm Hubei provides:

• Access to advanced cold chain infrastructure
• Expertise in handling specialized medical products
• Compliance with strict pharmaceutical storage regulations

The partnership positions Lakeside to capture market share in China's rapidly growing pharmaceutical logistics sector, which demands increasingly sophisticated supply chain solutions. The focus on high-value segments like oncology and aesthetic medicine suggests potential for premium pricing and higher margins.

ITASCA, Ill., Nov. 25, 2024 /PRNewswire/ -- Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH), a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market operating under the brand American Bear Logistics ("ABL"), announces that Hupan Pharmaceutical (Hubei) Co., Ltd. ("Hupan Pharmaceutical"), a company recently acquired by Lakeside, has established partnership with Sinopharm Group Hubei Co., Ltd. ("Sinopharm Hubei"). Sinopharm Hubei is a subsidiary of Sinopharm Group Co., Ltd., a leader in China's pharmaceutical industry. This partnership for essential medicine storage, transportation, and logistics services positions Lakeside for accelerated growth and solidifies its foothold in China's medical logistics sector.

Hupan Pharmaceutical's partnership with Sinopharm Hubei underscores the growing demand for specialized logistics and supply chain solutions in China's healthcare market. Through this partnership, Hupan Pharmaceutical will support Sinopharm Hubei's comprehensive pharmaceutical distribution needs, ensuring high standards in storing and transporting pharmaceutical products, including refrigerated and frozen medications, peptide hormones, and other essential medical supplies. This partnership showcases Hupan Pharmaceutical's trusted expertise in the complex clinical supply requirements in oncology, antibiotics, large-volume infusions, and aesthetic medicine.

The acquisition of Hupan Pharmaceutical is anticipated to contribute approximately $7 million in annual revenues for Lakeside. The partnership with Sinopharm Hubei reinforces Lakeside's expanding presence, unlocks new revenue streams, and strengthens its capability to provide high-quality logistics solutions tailored for China's healthcare market. With Lakeside's strategic and technological strengths combined with Hupan Pharmaceutical's established service network, the Company is poised to meet the rising demands of China's pharmaceutical logistics sector.

Henry Liu, Chairman & CEO of Lakeside, commented: "Our recent acquisition of Hupan Pharmaceutical and the resulting partnerships with an industry leader like Sinopharm mark a new chapter of growth for Lakeside. We are dedicated to leveraging these relationships to deliver exceptional value in pharmaceutical logistics, strengthening our position within China's healthcare industry. Sinopharm's trust in Hupan's capabilities is a testament to the quality of our solutions and our commitment to expanding our presence in critical and emerging markets."

About Lakeside Holding Limited

Lakeside Holding Limited, based in Itasca, IL, is a U.S.-based integrated cross-border supply chain solution provider with a strategic focus on the Asian market, including China and South Korea. Operating under the brand American Bear Logistics, we primarily provide customized cross-border ocean freight solutions and airfreight solutions in the U.S. that specifically cater to our customer's requirements and needs in transporting goods into the U.S. We are an Asian American-owned business rooted in the U.S. with in-depth understanding of both the U.S. and Asian international trading and logistics service markets. Our customers are typically Asia- and U.S.-based logistics service companies serving large e-commerce platforms, social commerce platforms, and manufacturers to sell and transport consumer and industrial goods made in Asia into the U.S. For more information, please visit https://lakeside-holding.com.    

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Investor Relations Contact:

Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

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SOURCE Lakeside Holding Limited

FAQ

What is the expected annual revenue contribution from Hupan Pharmaceutical to Lakeside (LSH)?

Hupan Pharmaceutical is expected to contribute approximately $7 million in annual revenues to Lakeside (LSH).

What services will Hupan Pharmaceutical provide to Sinopharm Hubei under the new partnership?

Hupan Pharmaceutical will provide essential medicine storage, transportation, and logistics services, including handling refrigerated medications, peptide hormones, and medical supplies.

How does the Sinopharm Hubei partnership impact Lakeside's (LSH) market position?

The partnership strengthens Lakeside's position in China's healthcare market, expands its pharmaceutical logistics capabilities, and unlocks new revenue streams.