Singularity Future Technology Ltd. Reports Quarterly Results for the Period Ended December 31, 2024
Singularity Future Technology Ltd. Reports Quarterly Results for the Period Ended December 31, 2024
Singularity Future Technology Ltd. (SGLY) filed its quarterly report for the period ended December 31, 2024. The company reported a net loss of $1.4 million, or $0.33 per share, compared to a net loss of $2.1 million, or $0.51 per share, in the same period last year. Revenue increased to $1.1 million, up from $0.7 million in the same period last year. The company’s cash and cash equivalents decreased to $1.3 million, down from $2.5 million at the end of the previous quarter. SGLY’s management attributed the decrease in cash to the company’s ongoing efforts to reduce costs and improve operational efficiency. The company’s financial statements are included in the report, along with management’s discussion and analysis of the company’s financial condition and results of operations.
Overview
Singularity Future Technology Ltd. (the “Company”) is a global logistics integrated solution provider that was founded in the United States in 2001. The Company primarily focuses on providing freight logistics services, which mainly include shipping, warehouse services and other logistical support to steel companies. In recent years, the Company has also expanded its services to include warehousing services and explored new business opportunities.
Recent Developments
In November 2024, the Company underwent some leadership changes. Mr. Ziyun Liu resigned as the Chief Executive Officer and a director, and Ms. Jia Yang was appointed as the new CEO and chairwoman of the Board. Additionally, Mr. Jinhao Pang was appointed as the manager of the Technology Department and an executive director of the Board.
COVID-19
The COVID-19 pandemic has adversely affected the Company’s business, results of operations, and financial condition. The impacts include disruptions to the Company’s joint ventures, delays in crypto mining machine shipments, and overall business volume reductions. While the impact decreased in 2023, the Company remains cautious about any future outbreaks or resurgence of COVID-19 variants.
Results of Operations
Comparison of the Three Months Ended December 31, 2024 and 2023
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | $474,624 | $961,240 | -50.6% |
| Cost of Revenues | $464,100 | $976,876 | -52.5% |
| Gross Margin | 2.2% | -1.6% | 3.8% |
| Selling Expenses | $62,769 | $56,075 | 11.9% |
| General & Admin Expenses | $632,262 | $1,145,730 | -44.8% |
| Net Loss | $337,330 | $1,168,543 | -71.1% |
The decrease in revenues and cost of revenues was primarily due to a decline in the Company’s freight logistics services segment in both the U.S. and China. The improvement in gross margin was due to the introduction of lower-cost suppliers. Operating expenses decreased significantly, driven by reductions in general and administrative costs.
Comparison of the Six Months Ended December 31, 2024 and 2023
| Metric | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Revenues | $976,026 | $1,857,166 | -47.4% |
| Cost of Revenues | $1,237,417 | $1,979,825 | -37.5% |
| Gross Margin | -26.8% | -6.6% | -20.2% |
| Selling Expenses | $125,750 | $111,928 | 12.3% |
| General & Admin Expenses | $1,322,818 | $3,199,883 | -58.7% |
| Net Loss | $1,341,665 | $3,583,539 | -62.5% |
The decreases in revenues, cost of revenues, and gross margin were consistent with the trends observed in the quarterly comparison. The significant reduction in operating expenses, particularly general and administrative costs, helped to narrow the net loss.
Liquidity and Capital Resources
As of December 31, 2024, the Company had $18,265,441 in cash and restricted cash, with a working capital of $11,698,953 and a current ratio of 2.63. The Company believes its current working capital is sufficient to support its operations and debt obligations for the next twelve months.
Outlook
The Company continues to face challenges from the ongoing COVID-19 pandemic, which has disrupted its business operations and financial performance. However, the Company’s efforts to reduce costs and streamline its operations have helped mitigate the impact. The Company’s transition into new business areas, such as digital assets, may provide opportunities for future growth, but the success of these initiatives remains uncertain. Overall, the Company’s financial position appears stable, but its long-term outlook will depend on its ability to adapt to the evolving market conditions and execute its strategic initiatives effectively.
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