Technology
Tokyo Lifestyle Co., Ltd. Reports First Six Months of Fiscal Year 2025 Financial Results
Published
2 years agoon
By
TOKYO, Dec. 18, 2024 /PRNewswire/ — Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced its unaudited financial results for the first six months of fiscal year 2025 ended September 30, 2024.
Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented, “I am thrilled to report that Tokyo Lifestyle has achieved significant success during the first six months of fiscal year 2025. Our total revenue increased by 32.1%, and income from operations increased by 867.8%, underscoring our strong growth trajectory and strategic execution.
For the six months ended September 30, 2024, total revenue reached $98 million, representing a 32% increase from $74.2 million for the same period last year, driven by the robust performance of our expanding franchise network and dedicated wholesale customer base.
For the six months ended September 30, 2024, our extensive customer base of directly-operated stores and online sales channels, generated $11 million in revenue during the period, despite challenging market conditions. Notably, for the six months ended September 30, 2024, revenue from franchise stores and wholesale customers grew by 53.8% to $86.9 million, supported by a 16.7% expansion in total stock-keeping units (SKUs), which reached approximately 165,200 SKUs. Meanwhile, the number of wholesale customers and franchisees increased by 30, from 171 as of March 31, 2024, to 201 as of September 30, 2024. This demonstrates that the growth in our customer base significantly fueled our revenue growth.
Revenue generated from companies in Japan accounted for 71.7% of total revenue for the six months ended September 30, 2024, while revenue generated from companies in Hong Kong and other regions contributed 28.3%. Notably, three franchise customers in Japan collectively generated $10.42 million in revenue from April to September 2024, and we anticipate continued growth from our franchisees in Japan and Hong Kong.
Despite a challenging business environment and intensified competition in our directly operated physical stores, we adopted a flexible and resilient strategy. This included optimizing our existing physical and online stores, while steadily and rapidly expanding our sales network and franchise partnerships in key markets such as Hong Kong, Southeast Asia, Europe, and North America. We believe that these efforts have significantly improved our profitability while enhancing our brand visibility and global recognition. Through careful planning and partner selection, we believe that we have laid a solid foundation for future global expansion and growth.
Beyond strengthening our presence in the Asian market, we are actively exploring opportunities in North America, Europe, and new business sectors. We have made notable progress, including opening a new Reiwatakiya store at Fashion Show Las Vegas, launching online platforms for the Reiwatakiya brand in the UK and Canada, and establishing a joint venture to develop the trading card retail business. These strategic initiatives further reinforce our business presence and enhance global brand recognition.
We believe that our continued focus on exploring new opportunities while fostering loyalty among existing customers through best-in-class quality and services has resulted in a steadily expanding customer base and strong financial performance, and our growth strategies and operational achievements have been acknowledged by the market and industry — we are honored to have been awarded a Gold Stevie® Award in the ‘Company of the Year – Retail – Medium-size’ category at the 21st Annual International Business Awards® in September 2024.
Looking ahead, we remain committed to our robust strategies, including strengthening our current market footprint, closely monitoring evolving market trends and customer preferences, improving operational efficiency and profitability, optimizing our distribution network and commercial outlets, and exploring new partnership opportunities. We are confident these efforts will contribute to a brighter future and greater value for our Company and shareholders.”
Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, added: “I am proud to share the Company’s strong financial performance for the first half of fiscal year 2025. Alongside significant revenue growth, our gross profit increased by 28.4% during the period, with a stable gross margin exceeding 12%. Despite a challenging macroeconomic environment and fierce competition in both physical and online retail, our strategic transformations—such as reducing underperforming stores and refining our product portfolio—resulted in higher gross profit and stable margins across all three business lines.
While the cost of revenue rose slightly in line with revenue growth, this reflects our strategic investments in expanding into new territories and sectors with carefully selected partners. Meanwhile, our cost-control measures have proven effective, as our operating expenses decreased by 2.2%, even with an increase in headcount to support our rapid expansion. These results demonstrate the effectiveness of our focus on cost management, strategic investment, and revenue growth. For the first half of fiscal year 2025, we reported a net income of $1.3 million, with cash reserves of $3.1 million and stable working capital of $28.5 million as of September 30, 2024.
Looking forward, we will continue enhancing financial performance through robust business strategies, disciplined cost management, and strategic investments. We remain focused on identifying new revenue streams and are confident that these efforts will drive sustained long-term value for our shareholders.”
First Six Months of Fiscal Year 2025 Financial Highlights
Revenue was $98.0 million for the six months ended September 30, 2024, increased by 32.1% from $74.2 million for the same period of last year.Gross profit was $12.1 million for the six months ended September 30, 2024, increased by 28.4% from $9.5 million for the same period of last year.Income from operations was $3.2 million for six months ended September 30, 2024, increased by 867.8% from $0.3 million for the same period of last year.Net income was $1.3 million for the six months ended September 30, 2024, compared to $2.0 million for the same period of last year.Basic and diluted earnings per share was $0.03 for the six months ended September 30, 2024, compared to $0.05 for the same period of last year.
First Six Months of Fiscal Year 2025 Financial Results
Revenue
Total revenue was $98.0 million for the six months ended September 30, 2024, increased by 32.1% from $74.2 million for the same period of last year.
For the Six Months Ended September 30,
2024
2023
($ millions)
Revenue
Cost of
Revenue
Gross
Margin
Revenue
Cost of
Revenue
Gross
Margin
Franchise
stores and
wholesale
customers
86.9
78.0
10.3
%
56.5
49.9
11.8
%
Directly-
operated
physical
stores
6.9
4.9
29.4
%
11.6
9.9
14.6
%
Online
stores and
services
4.1
3.0
27.5
%
6.0
4.9
17.9
%
Total
98.0
85.9
12.4
%
74.2
64.7
12.8
%
Revenue from franchise stores and wholesale customers increased by 53.8%, to $86.9 million for the six months ended September 30, 2024, from $56.5 million for the same period of last year. The increase was mainly due to the Company’s continuous effort in extending the Company’s products offering as the Company’s total stock keeping units (“SKUs”) increased from approximately 141,500 SKUs during the six months ended September 30, 2023, to approximately 165,200 SKUs during the six months ended September 30, 2024. In addition, the increase was also due to the increased revenue generated from franchise stores which previously was recognized under physical stores as mentioned above, as well as the increased revenue from the new wholesale customers because the Company continued to develop the Company’s customer base by entering into business relationships with new wholesale customers during the six months ended September 30, 2024.
Revenue from directly-operated physical stores decreased by 40.2%, to $6.9 million for the six months ended September 30, 2024, from $11.6 million for the same period of last year. The decrease was due to the decrease in revenue generated from directly-operated physical stores both in Japan and Hong Kong for the six months ended September 30, 2024, as compared to the same period last year. During the six months ended September 30, 2023, the Company started to offer luxury products, which contributed a significant portion of directly-operated physical stores sales in Japan. However, the sales of luxury products were unstable and decreased during the six months ended September 30, 2024, as compared to the same period last year. The above-mentioned decrease was partially offset by revenue generated from directly-operated physical stores in the United States and Canada, as the Company currently operate four directly-operated physical stores in the United States and one directly-operated physical store in Canada during the six months ended September 30, 2024.
Revenue from online stores and services decreased by 31.4%, to $4.1 million for the six months ended September 30, 2024, from $6.0 million for the same period of last year. The decrease was mainly due to a decreased number of online stores as the Company closed some underperformed online stores to improve the Company’s profitability.
Cost of Revenue
Cost of revenue increased by 32.7%, to $85.9 million for the six months ended September 30, 2024, from $64.7 million for the same period of last year.
Gross Profit and Gross Margin
Gross profit increased by 28.4%, to $12.1 million for the six months ended September 30, 2024, from $9.5 million for the same period of last year.
Gross margin decreased by 0.4 percentage points, to 12.4% for the six months ended September 30, 2024, from 12.8% for the same period of last year.
Operating Expenses
Operating expenses decreased by 2.2%, to $8.9 million for the six months ended September 30, 2024, from $9.1 million for the same period of last year. The decrease in operating expenses was primarily attributable to the following factors:
a decrease in transaction commission paid to third-party e-commerce marketplace operators by $277,719, or 30.4%, from $914,651 for the six months ended September 30, 2023, to $636,932 for the six months ended September 30, 2024. The Company paid third-party e-commerce marketplace operators transaction commission ranging from 1.8% to 3.0% based on the Company’s sales amount. The decrease in transaction commission was in line with the decrease in the Company’s online sales;
a decrease in promotion and advertising expenses by $183,432, or 57.4%, from $319,758 for the six months ended September 30, 2023, to $136,326 for the six months ended September 30, 2024. The decrease was mainly due to the Company’s effort in cost control as well as decreased promotion and advertising expenses for the Company’s physical stores as the Company has transferred some of the Company’s physical stores into franchise stores; and
an increase in payroll, employee benefit expenses, and bonus expenses by $203,612, or 7.1%, from $2,872,796 for the six months ended September 30, 2023, to $3,076,408 for the six months ended September 30, 2024. The increase was mainly due to increased payroll, employee benefit expenses, and bonus expenses of $541,218 in Hong Kong, the United States and Canada, which was due to the increased headcount caused by the expansion of the Company’s business operation in these regions. The increase was partially offset by the decreased payroll, employee benefit expenses, and bonus expenses of $337,606 in Japan, which was attributable to the decreased headcount resulting from the implementation of cost control as well as the transformation of the Company’s directly-operated physical stores in Japan.
Interest Expenses, net
Interest expenses, net included interest expenses calculated at interest rate per loan agreements and loan service costs, which were directly incremental to the loan agreements and amortized over the loan periods. Interest expenses, net decreased by 17.3%, to $0.8 million for the six months ended September 30, 2024, from $1.0 million for the same period of last year. The decrease was mainly due to a decrease in amortized loan service costs in relation to the Company’s syndicated loans of $0.4 million, and the decrease was partially offset by an increase in interest expenses, which was mainly due to the increased weighted average interest rate for the six months ended September 30, 2024.
Other Income, net
The Company’s other income, net primarily includes tax refund, disposal gain or loss from property and equipment, government subsidies, and other immaterial income and expense items. Other income, net increased by 377.4%, to $319,624 for the six months ended September 30, 2024, from $66,947 for the same period of last year. The increase was mainly due to the increased gain from the disposal of property and equipment during the six months ended September 30, 2024, as compared to the same period of last year.
Provision (Benefit) for Income Taxes
Benefit for income taxes was $0.6 million for the six months ended September 30, 2024, as compared to an income tax benefit of $0.4 million for the same period of last year. The increase in benefit for income taxes was mainly due to decreased current income tax expenses resulting from the decreased taxable income for the six months ended September 30, 2024, as compared to the same period last year, as well as reduced statutory income tax rate as the Company qualified as a small and medium-sized enterprise and subjected to a lower statutory income tax rate after a capital reduction during the six months ended September 30, 2024.
Net Income
Net income decreased by 31.6%, to $1.3 million for the six months ended September 30, 2024, from $2.0 million for the same period of last year. Our income from operations increased significantly by $2,887,717, or 867.8%, from $332,745 for the six months ended September 30, 2023, to a net income of $3,220,462 for the six months ended September 30, 2024, which was attributable to the increased gross profit and decreased selling, general and administrative expenses. However, due to increased loss from foreign currency exchange as well as change in fair value of warrants liabilities, our net income decreased for the six months ended September 30, 2024, as compared to the same period last year.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was $0.03 for the six months ended September 30, 2024, compared to $0.05 for the same period of last year.
Financial Condition
As of September 30, 2024, the Company had cash of $3.1 million as compared to $2.5 million as of March 31, 2024. As of September 30, 2024, the Company also had approximately $104.3 million of account receivable balance due from third parties. Approximately 28.3% of the September 30, 2024 balance has been subsequently collected, and the majority of the remaining balance is expected to be collected by March 31, 2025. The collection of such receivables made cash available for use in the Company’s operations as working capital, if necessary.
Net cash used in operating activities was $2.0 million for the six months ended September 30, 2024, mainly derived from net income of $1.3 million for the period, and net changes in the Company’s operating assets and liabilities, which were mainly due to the increased prepaid expenses and other current assets of $9.4 million, and decreased taxes payable of $4.6 million, which was partially offset by the increased deferred revenue of $6.9 million and increased accounts payable of $3.4 million. The Company entered into a sales agreement with wholesale customers and received advance payment of $6.9 million during the six months ended September 30, 2024. In order to fulfill the sales agreement, the Company made advance payments to the Company’s suppliers to secure the products. Therefore, the Company’s prepaid expenses and other current assets and deferred revenue increased during the six months ended September 30, 2024.
Net cash used in investing activities was $0.6 million for the six months ended September 30, 2024, mainly due to purchases of property and equipment in the aggregate amount of $0.7 million.
Net cash provided by financing activities was $2.5 million for the six months ended September 30, 2024, which primarily consisted of proceeds from short-term borrowings of $2.8 million, repayments of long-term borrowings of $0.1 million, and repayments of obligations under finance leases of $0.1 million.
Conference Call Information
The Company will host an earnings conference call at 8:30 am U.S. Eastern Time (10:30 pm Japan Standard Time) on December 18, 2024. Dial-in details for the conference call are as follows:
Date:
December 18, 2024
Time:
8:30 am U.S. Eastern Time
International:
1-412-902-4272
United States Toll Free:
1-888-346-8982
Japan Toll Free:
0066-33-1-33094
Conference ID
Tokyo Lifestyle Co., Ltd.
Please dial in at least 15 minutes before the commencement of the call to ensure timely participation.
For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until December 25, 2024. The dial-in for the replay is +1-877-344-7529 within the United States or +1-412-317-0088 internationally. The replay access code is No. 5860877.
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://www.ystbek.co.jp/irlibrary/.
About Tokyo Lifestyle Co., Ltd.
Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), luxury products (including branded watches, perfume, handbags, clothes, and jewelry), electronic products (including entertainment gaming products, electronic components), sundry products (including home goods), and other products (including food, alcoholic beverages, and trading cards). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company’s website at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends 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 “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. In addition, there is uncertainty about the further spread of the COVID-19 virus or the occurrence of another wave of cases and the impact it may have on the Company’s operations, the demand for the Company’s products, global supply chains, and economic activity in general. 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 registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Tokyo Lifestyle Co., Ltd.
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
TOKYO LIFESTYLE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
March 31,
2024
2024
ASSETS
CURRENT ASSETS:
Cash
$
3,077,122
$
2,475,538
Accounts receivable, net
104,337,671
105,359,841
Accounts receivable – a related party, net
3,121,338
25,704
Merchandise inventories, net
7,375,887
4,413,880
Due from a related party
538
9,762
Compensation receivable for consumption tax, current, net
5,647,824
7,133,470
Prepaid expenses and other current assets, net
12,595,794
2,748,682
TOTAL CURRENT ASSETS
136,156,174
122,166,877
Property and equipment, net
9,683,292
9,013,827
Operating lease right-of-use assets
4,746,047
3,979,727
Compensation receivable for consumption tax, non-current, net
4,022,371
2,721,034
Long-term prepaid expenses and other non-current assets, net
4,128,051
4,115,694
TOTAL ASSETS
$
158,735,935
$
141,997,159
CURRENT LIABILITIES:
Short-term borrowings
$
58,945,627
$
53,234,650
Current portion of long-term borrowings
2,067,970
1,730,796
Accounts payable
29,006,854
24,392,029
Accounts payable – a related party
310,795
299,541
Due to related parties
17,599
42,943
Deferred revenue
7,177,830
55,093
Taxes payable
4,958,106
9,357,482
Operating lease liabilities, current
1,691,518
1,523,222
Finance lease liabilities, current
97,860
170,553
Warrants liabilities
1,659,441
441,104
Other payables and other current liabilities
1,685,069
2,167,320
TOTAL CURRENT LIABILITIES
107,618,669
93,414,733
Operating lease liabilities, non-current
3,051,290
2,488,823
Finance lease liabilities, non-current
241,279
263,571
Long-term borrowings
5,550,731
5,636,960
Other non-current liabilities
1,641,804
1,934,927
Deferred tax liabilities, net
1,376,875
2,215,361
TOTAL LIABILITIES
$
119,480,648
$
105,954,375
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Ordinary shares, no par value,100,000,000 shares authorized;
42,220,206 shares and 42,220,206 shares issued and outstanding as of
September 30, 2024 and March 31, 2024, respectively
846,116
16,716,839
Capital reserve
26,132,914
10,262,191
Retained earnings
22,393,009
21,056,780
Accumulated other comprehensive loss
(10,116,752)
(11,993,026)
TOTAL SHAREHOLDERS’ EQUITY
39,255,287
36,042,784
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
158,735,935
$
141,997,159
TOKYO LIFESTYLE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
For the Six Months
Ended
September 30,
2024
2023
REVENUE
Revenue – third parties
$
91,136,514
$
74,049,115
Revenue – related parties
6,866,951
115,034
Total revenue
98,003,465
74,164,149
COSTS AND OPERATING EXPENSES
Merchandise costs
85,858,021
64,706,599
Selling, general and administrative expenses
8,924,982
9,124,805
Total costs and operating expenses
94,783,003
73,831,404
INCOME FROM OPERATIONS
3,220,462
332,745
OTHER INCOME (EXPENSE)
Interest expense, net
(823,836)
(995,997)
Additional and delinquent tax due to consumption tax correction
–
(644,780)
Gain from disposal of equity method investment
–
195,391
Gain from disposal of a subsidiary
–
341,755
Other income, net
319,624
66,947
Gain (loss) from foreign currency exchange
(810,623)
2,371,226
Change in fair value of warrants liabilities
(1,121,968)
1,833
Loss from equity method investment
–
(71,200)
Total other income (expenses), net
(2,436,803)
1,265,175
INCOME BEFORE INCOME TAX BENEFIT
783,659
1,597,920
INCOME TAXES BENEFIT
(552,570)
(356,435)
NET INCOME
1,336,229
1,954,355
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss)
1,876,274
(3,269,650)
TOTAL COMPREHENSIVE INCOME (LOSS)
$
3,212,503
$
(1,315,295)
Earnings per ordinary share – basic and diluted
$
0.03
$
0.05
Weighted average shares – basic and diluted
42,220,206
36,250,054
TOKYO LIFESTYLE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Ordinary Shares
Capital
Retained
Accumulated
Other
Comprehensive
Total
Shareholders’
Shares
Amount
Reserve
Earnings
Loss
Equity
Balance, March 31,
2023
36,250,054
$
14,694,327
$
9,078,915
$
13,577,844
$
(8,069,343)
$
29,281,743
Net income for the
period
–
–
–
1,954,355
–
1,954,355
Foreign currency
translation loss
–
–
–
–
(3,269,650)
(3,269,650)
Balance, September 30,
2023
36,250,054
$
14,694,327
$
9,078,915
$
15,532,199
$
(11,338,993)
$
27,966,448
Balance, March 31,
2024
42,220,206
$
16,716,839
$
10,262,191
$
21,056,780
$
(11,993,026)
$
36,042,784
Transfer of capital to
capital reserve
–
(15,870,723)
15,870,723
–
–
–
Net income for the
period
–
–
1,336,229
–
1,336,229
Foreign currency
translation gain
–
–
–
1,876,274
1,876,274
Balance, September 30,
2024
42,220,206
$
846,116
$
26,132,914
$
22,393,009
$
(10,116,752)
$
39,255,287
TOKYO LIFESTYLE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months
Ended
September 30,
2024
2023
Cash flows from operating activities:
Net Income
$
1,336,229
$
1,954,355
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization
409,461
526,994
Loss (gain) from disposal of property and equipment
(202,165)
13,704
Loss (gain) from unrealized foreign currency translation
(358,309)
139,012
Reversal of credit losses
(26,932)
(148,556)
Addition (reversal) of merchandise inventories written down
14,709
(10,713)
Amortization of operating lease right-of-use assets
911,218
876,122
Deferred tax benefit
(905,570)
(1,460,623)
Change in fair value of warrants liabilities
1,121,968
(1,833)
Investment loss from equity method investment
–
71,200
Gain from disposal of equity method investment
–
(195,391)
Changes in operating assets and liabilities:
Accounts receivable
5,844,436
6,372,895
Accounts receivable – related parties
(2,907,787)
309,809
Merchandise inventories
(2,768,207)
(8,645,561)
Compensation receivable for consumption tax
695,565
6,116,206
Prepaid expenses and other current assets
(9,394,219)
(2,342,968)
Long term prepaid expenses and other non-current assets
203,598
2,767,762
Accounts payable
3,416,712
2,128,474
Accounts payable – related parties
(8,116)
67,840
Deferred revenue
6,937,534
68,324
Taxes payable
(4,611,614)
(4,136,000)
Other payables and other current liabilities
(552,070)
103,774
Operating lease liabilities
(944,078)
(838,782)
Other non-current liabilities
(197,185)
(38,735)
Net cash (used in) provided by operating activities
(1,984,822)
3,697,309
Cash flows from investing activities:
Purchase of property and equipment
(678,267)
(197,825)
Proceeds from disposal of property and equipment
28,868
710
Proceeds from disposal of equity method investment
–
283,800
Proceeds from disposal of a subsidiary
–
35,475
Disposal of a subsidiary, net of cash
–
(176,133)
Collection of amount due from (advances made to) related parties
9,256
410,181
Net cash (used in) provided by investing activities
(640,143)
356,208
Cash flows from financing activities:
Proceeds from short-term borrowings
2,752,445
–
Repayments of long-term borrowings
(129,984)
(608,947)
Payments made to related parties
(26,132)
(166,252)
Repayment of obligations under finance leases
(110,734)
(297,843)
Net cash provided by (used in) financing activities
2,485,595
(1,073,042)
Effect of exchange rate fluctuation on cash
740,954
(1,956,115)
Net increase in cash
601,584
1,024,360
Cash at beginning of period
2,475,538
1,766,441
Cash at end of period
$
3,077,122
$
2,790,801
Supplemental cash flow information
Cash paid for income taxes
$
2,100,807
$
592,194
Cash paid for interest
$
494,581
$
341,583
Supplemental non-cash operating activities
Right of use assets obtained in exchange for operating lease liabilities
$
1,561,296
$
1,512,843
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SOURCE Tokyo Lifestyle Co., Ltd.
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Technology
LG INSTAVIEW™ REFRIGERATOR SURPASSES 5.3 MILLION IN GLOBAL SALES
Published
35 minutes agoon
July 24, 2026By
Chosen by Customers Worldwide, LG’s Instaview Refrigerator Innovation Continues to Redefine the Kitchen Experience a Decade After Its Debut
News Summary
LG Electronics’ InstaView™ refrigerator celebrates the 10th anniversary of its 2016 launch by exceeding 5.3 million units in cumulative global sales.LG’s iconic “Knock Twice, See Inside” feature broke convention, offering a blend of user convenience, energy efficiency, and aesthetic value that set a new industry standard.LG InstaView refrigerators continue to gain traction worldwide, leading the refrigerator category in North America while seeing significant growth across Europe, Asia and Latin America.Over the past decade, LG InstaView refrigerator has won numerous prestigious design and innovation awards, including Red Dot, iF, IDEA and CES.
SEOUL, South Korea, July 24, 2026 /PRNewswire/ — LG Electronics’ (LG) InstaView™ refrigerator, which allows users to see inside without opening the door, has reached a major milestone on its 10th anniversary, surpassing 5.3 million units in cumulative global sales since its 2016 launch.
Trusted by Consumers Around the World
Since launching the LG InstaView refrigerator in 2016, LG has sold a remarkable 5.3 million units – equivalent to selling roughly one unit every minute.
LG InstaView refrigerator has seen strong customer demand globally, with North America representing its strongest market and accounting for about 30 percent of cumulative sales to date. In Europe, InstaView refrigerator has also been well received by consumers who place high value on energy efficiency, sustainability and food preservation performance. Sales are also steadily rising in Asia and Latin America, driven by growing demand for premium appliances.
An Innovation That Redefined the Refrigerator
InstaView redefined how consumers interact with their refrigerators by allowing them to see inside without opening the door. This feature allows users to check the fridge’s contents without opening the door and helps reduce unnecessary cold-air loss associated with frequent door opening. Over the past decade, its innovation has been recognized by international media and honored with numerous accolades from major global design and innovation awards, including the Red Dot Design Award, iF Design Award, IDEA, and the CES Innovation Award.
From Functional Benefit to Lifestyle Value
LG’s analysis of global customer reviews shows that consumer appreciation for the InstaView refrigerator and its eponymous feature has evolved over time, shifting from an initial focus on the functional benefits to the overall sense of satisfaction that it provides. While early feedback centered on the convenience of knocking twice to see inside and the reduction of cold air loss, more recent reviews increasingly highlight InstaView’s refined design and the enjoyment it brings to everyday kitchen use.
“For a decade now, LG InstaView refrigerator has stood as a testament to our leadership in the home appliance market and to our deep understanding of customers’ lifestyles,” said Baek Seung-tae, president of the LG Home Appliance Solution Company. “This milestone reflects our success in creating not just an innovative feature, but a more convenient and enjoyable kitchen experience. Building on our advanced AI, refrigeration and food preservation technologies, we will continue to lead the evolution of the kitchen experience with customer-centric innovations.”
About LG Electronics Home Appliance Solution Company
The LG Home Appliance Solution Company (HS) is a global leader in home appliances and AI home solutions. By leveraging industry-leading core technologies, the HS Company is committed to enhancing consumers’ quality of life and promoting sustainability. The company develops thoughtfully designed kitchen and living appliance solutions and has recently integrated LG’s Robot Business Division to incorporate advanced robot technologies into its home solutions. Together, these products offer enhanced convenience, exceptional performance, efficient operation and sustainable lifestyle solutions. For more news on LG, visit www.LG.com/global/newsroom/.
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SOURCE LG Electronics
Technology
Alpha Ladder Hosts Globalization Forum, Debuts Proprietary AI Platform AgentX
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35 minutes agoon
July 24, 2026By
HONG KONG, July 24, 2026 /PRNewswire/ — On 9 July, Alpha Ladder hosted a tech globalization forum at LEAP East 2026 in Hong Kong under the theme “Connecting Industrial Innovation, Unlocking New Global Growth Opportunities” — and used the occasion to officially unveil AgentX, its proprietary AI‑powered solution.
The session brought together more than a dozen distinguished speakers from sectors spanning artificial intelligence, embodied intelligence, biotechnology, fintech, enterprise services, and legal — all of whom shared first‑hand observations and practical experience navigating global expansion.
Paul Pang, Head of AI at Alpha Ladder, unveiled the Group’s new financial AI agent, AgentX, during the product launch. He observed that the rapid proliferation of AI agents has rendered traditional cross‑border financial delivery models ill‑suited to the evolving AI industry landscape. Conventional local plugin integrations carry significant risks, including code tampering, data leakage, and compromised asset security.
He also noted that expanding enterprises frequently face a persistent disconnect between their business tools and financial pipelines. Core operational systems — covering expense reimbursement, payroll, and account reconciliation — often operate in silos, isolated from cross‑border payment and treasury management frameworks. The resulting reliance on manual workflows leads to chronic inefficiency and inflated operating costs.
To tackle these industry pain points head‑on, Alpha Ladder introduced AgentX — a purpose‑built platform grounded in its proprietary AI‑native architecture. Powered by the Core Finance skill suite and the standardised MCP protocol, AgentX is compatible with all major large language models and enables AI agents to directly access Alpha Ladder’s full spectrum of cross‑border financial services.
The platform is further equipped with VisionX, an intelligent risk control engine that performs cross‑verification across multiple data sources to significantly sharpen the detection of on‑chain risks. A built‑in regulatory sandbox ensures full segregation of transactions and data within compliance boundaries, effectively closing critical security gaps that have long plagued the industry.
Beyond its core risk and compliance capabilities, AgentX offers extensive ecosystem adaptability, enabling rapid integration with vertical use cases such as travel reimbursement, global payroll, and asset management — creating a unified, closed‑loop framework that bridges business operations and finance. Through its open ecosystem model, AgentX empowers small and mid‑sized enterprises expanding globally by tearing down the silos between operational workflows and cross‑border financial services. In doing so, it delivers one‑stop, intelligent cross‑border financial services and drives comprehensive AI‑driven transformation across globalising industries.
Yao Yuan, Vice President of AgiBot for MENA, Turkey, and Asia Pacific, remarked that 2026 marks the year AgiBot transitions from R&D to commercial deployment. Having spent the previous three years honing its products and technology while consolidating its position in the domestic market, the company is now scaling up commercial operations and accelerating its global expansion.
He articulated three core pillars underpinning AgiBot’s global strategy. First, the company is moving to seize the critical window for mass industrial adoption as the embodied intelligence sector enters a new growth cycle. Second, humanoid robots are emerging as a key enabler of industrial upgrading and national digital transformation strategies across economies. Third, overseas deployment, data accumulation, and localized delivery are creating a valuable feedback loop — one that feeds back into domestic R&D and forms a closed loop connecting global technology development with commercial execution.
Luo Yi, General Manager of 51Aes South China (a subsidiary of 51World), shared that the company was officially listed on the Hong Kong Stock Exchange on 30 December 2025 under the ticker 6651.HK. Guided by its vision to digitally replicate the Earth’s 510 million square kilometres, 51World is committed to building a seamless bridge between the digital and physical worlds.
As the industry enters a new era of Physical AI, physically accurate digital simulation environments have become a fundamental prerequisite for large‑scale training of embodied intelligent systems. Leveraging three core pillars — global spatial foundation models, simulation training platforms, and synthetic data pipelines — the company has built a complete, closed-loop technology system. Its commercial portfolio comprises three flagship offerings: the 51Aes digital twin platform, the 51Sim synthetic data and simulation platform, and the 51Earth digital earth platform.
As the core engine powering Physical AI, 51Sim delivers high‑fidelity simulation training environments and robust synthetic data generation capabilities for embodied intelligence sectors including autonomous driving, smart equipment, and robotics. It enables efficient training and validation of AI systems within virtual environments and currently serves over 100 enterprise clients across autonomous mobility and embodied intelligence verticals. Looking ahead, the company will continue to deepen the integration of AI with the real economy, unlocking greater technological value and industrial impact across broader global markets.
Xu Leyang, Co‑founder of Seekee, observed that vast segments of the global population have yet to gain meaningful access to AI. With “everyday users” at the heart of its mission, Seekee is building accessible, consumer‑facing AI products tailored for the world’s two billion ordinary people.
The team has strategically focused on Latin America — an underserved blue‑ocean market largely overlooked by major tech players. Few leading global large language models have dedicated meaningful R&D or localisation efforts to Spanish and Portuguese, the region’s dominant languages. By capitalising on the region’s distinctive linguistic landscape, local user behaviour patterns, and a proprietary repository of region‑specific language data amassed over time, Seekee has built a competitive moat that is difficult to replicate.
According to Sensor Tower, a mobile analytics platform, Seekee ranked eighth globally in the 2025 generative AI app download charts. Within Latin America, its brand recognition is on par with ChatGPT. Launched just over a year ago, the platform has already amassed tens of millions of monthly active users and demonstrated strong user retention.
Wu Xin, Partner and Global Head of AI Applications at BorderX Lab, delivered a presentation themed “Power of Agent Plus.” Drawing on real‑world deployments within the fashion and luxury sectors, he explained that AI agents are fundamentally reshaping traditional cross‑border industries and unlocking significant efficiency gains across the entire value chain.
E‑commerce, he noted, is undergoing a paradigm shift. Competition has moved beyond capturing user attention to precisely identifying consumer intent, with AI agents emerging as a critical instrument for surfacing latent global consumption demand. Powered by proprietary technology and data infrastructure, BorderX Lab has built a global consumer network that is helping redefine how Chinese cross‑border consumer tech reaches the world.
He further observed that agent‑enabled payments will form the bedrock of agent‑driven e‑commerce, and expressed optimism about jointly exploring blue‑ocean opportunities with Alpha Ladder.
Yang Mingyuan, Senior Investment & Financing Manager at QCraft, observed that among the broader Physical AI landscape, autonomous driving stands out as the first segment to achieve mass production at scale, sustainable commercial profitability, and rapid real‑world deployment.
The company’s core competitive advantage lies in its unified, self‑developed technical foundation — one that underpins both its L2+ advanced driver assistance systems and its multi‑scenario L4 autonomous driving capabilities. This homologous architecture also serves as a strategic springboard for QCraft’s broader push into general Physical AI. Its fully in‑house toolchain and data platform form a formidable competitive moat, while the company’s “Autonomous Driving Super Factory” system standardises the entire model training and simulation testing lifecycle — covering the full data pipeline to enable continuous, high‑velocity iteration and optimisation of its algorithm models.
He Liang, Chief Financial Officer of Yidianyun, shared that the company — a leading domestic provider of office IT infrastructure — is now pivoting to become an office AI infrastructure enabler. Its mission is to lower the barrier to AI compute access for enterprises through remanufacturing technology and subscription‑based models.
Yidianyun has built a four‑tier business framework that underpins its cost and service advantages, with a strategic focus on edge‑side AI hardware across AI PCs, AI workstations, and AI servers. He noted that direct procurement of AI hardware entails substantial one‑off capital expenditure for small and medium‑sized enterprises. Subscription models, by contrast, significantly ease funding pressure and hedge against upfront investment risk — a key factor driving the rapid growth of its proprietary AI workstation business.
For overseas expansion, Yidianyun plans to launch pilot cross‑border operations from Hong Kong as its initial hub, with the potential to extend its reach to additional international markets in due course.
Liu Chenxin, Assistant to the Director of the National Institute of Biological Sciences, Beijing (NIBS), shared insights at the forum. With a strong track record in research commercialisation, NIBS has incubated a number of benchmark biopharma companies including Huahui Anjian, Vitaraylon, and Denovo Biotech. Drawing on years of translational experience, the institute has comprehensively upgraded its established commercialisation framework and officially launched BISON — a new innovation incubation hub designed to tackle the persistent high‑risk challenges inherent in biopharmaceutical investment through a unique translational model and commercial logic.
Unlike conventional technology‑driven incubation models, BISON places market demand at the core of its approach. It partners with leading tertiary hospitals to identify clinical pain points at the front end, while aligning with pharmaceutical companies at the back end to reverse‑engineer original drug pipelines based on industry needs. Looking ahead, BISON will continue to leverage its deep foundation in original research to incubate high‑value biopharmaceutical innovations, helping domestically developed first‑in‑class drugs reach global markets and supporting the international expansion of China’s biotech industry.
Lei Zhicheng, Deputy General Manager of Mango Finance Limited, observed that the institutional advantages of Hong Kong’s capital market, combined with deepening economic and trade ties with the Middle East, have opened up new channels for Chinese tech innovators to access global capital. Closely aligned with policy directions and enterprises’ internationalisation ambitions, Mango Finance is focused on listing incubation and cross‑border expansion services, fostering service synergies through close collaboration with a diverse network of professional partners.
As an established securities firm, the company is steadily expanding its digital finance footprint in step with regulatory developments. Lei expressed keen interest in establishing system‑level connectivity with Alpha Ladder, and leveraging AI and cutting‑edge digital technologies to accelerate the digital transformation and upgrade of traditional securities operations.
Kevin Chen, CEO of Boost Bank and Founder of Aicapay, observed that as the Belt and Road Initiative continues to gain momentum, emerging markets across Africa, the Middle East, and Latin America are undergoing rapid economic and industrial transformation. Combined with surging outbound investment and cross‑border trade from China, the cross‑border finance sector in these markets presents enormous growth potential.
Boost Bank specialises in building localised compliance frameworks. Backed by multi‑jurisdictional licences, on‑the‑ground risk control teams, and deep‑rooted local financial resources, the company has established a fully integrated, end‑to‑end cross‑border capital loop — delivering tailored, client‑specific solutions for enterprises expanding globally. Chen underscored the strong strategic complementarity between the two firms and signalled Boost Bank’s intent to join forces with Alpha Ladder in building a fintech service ecosystem that empowers Chinese companies to seize opportunities in emerging markets worldwide.
Yin Li, Partner at Shanghai Landi Law Firm, shared that the firm established its first overseas offices a decade ago, making it one of China’s early legal practices to focus on cross‑border corporate services. It provides Chinese enterprises with full‑spectrum legal support spanning overseas investment filing, intellectual property protection, and cross‑border capital repatriation.
Against a backdrop where overseas expansion has evolved from conventional trade to high‑value industrial globalisation — marked by the coordinated export of technology, production capacity, and capital — and given the strong alignment between Middle Eastern development agendas and the Belt and Road Initiative, Chinese enterprises pursuing comprehensive deployment in the region have generated robust demand for localised legal services. This, he noted, is the key driver behind the firm’s intensified focus on the Middle East market.
Yin emphasised that proactive compliance is the core moat for enterprises going global. Businesses must conduct thorough assessments of local regulatory and legal frameworks before entering overseas markets. Leveraging its “on‑the‑ground global presence” model — with coordinated teams across China and multiple international jurisdictions — the firm conducts advance due diligence to identify and mitigate legal risks inherent in cross‑border operations.
About Alpha Ladder:
Alpha Ladder is a Singapore-regulated fintech group focused on developing a world-leading, one-stop, fully compliant financial infrastructure — delivering secure, efficient cross-border financial solutions for enterprises going global. The Group holds core licences issued by the Monetary Authority of Singapore (MAS), covering securities, futures, fund management, custody, RWA asset exchange, and Major Payment Institution (MPI). We also maintain regulatory approvals in Canada, and are actively expanding our footprint across key global financial hubs including Switzerland, Dubai, and Hong Kong, building a globally compliant regulatory network. By leveraging AI to reshape compliance, risk management, and treasury operations, Alpha Ladder empowers enterprises to reduce costs, enhance efficiency, and achieve sustainable global growth.
For more information, please visit our official website: www.alphaladder.hk
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SOURCE Alpha Ladder
Technology
UOB Asset Management Highlights Global Resilience Despite Heightened Uncertainty
Published
35 minutes agoon
July 24, 2026By
SINGAPORE, July 24, 2026 /PRNewswire/ — UOB Asset Management (UOBAM) has released its 3Q 2026 Quarterly Investment Strategy, highlighting the global economy’s resilience in the face of persistent headwinds, including inflation, tariffs, geopolitical tensions and energy market volatility.
Despite repeated challenges over the past 18 months, economic activity has remained robust. Corporate earnings have held up across major regions, labour markets have remained resilient, and continued investment in artificial intelligence (AI) infrastructure is providing a powerful tailwind for growth.
While uncertainty remains elevated, the global economy’s resilience has reinforced confidence that the current expansion remains durable, even as risks continue to evolve.
On interest rates, UOBAM’s base case is that the US Federal Reserve is more likely to remain on an extended pause than embark on a new rate-hiking cycle. Although inflation remains sticky and recent geopolitical developments have raised upside risks, the firm continues to see evidence of moderating underlying inflation pressures, particularly in housing and wages.
Within equities, UOBAM remains positive on Asia and has upgraded Onshore China to overweight from underweight. Despite strong market gains, Asia continues to trade at a valuation discount to global equities, even as earnings growth has accelerated. UOBAM believes this combination of strong earnings momentum and attractive valuations presents a compelling opportunity for investors. In China, improving industrial profits and continued growth in higher-value sectors have strengthened the investment case for selected areas of the market, particularly those linked to AI, semiconductors, energy infrastructure and advanced manufacturing.
Anthony Raza, Head of UOBAM Multi-Asset Strategy, said, “The key story for investors is that the global economy has repeatedly withstood shocks without derailing growth. Despite a more uncertain backdrop, we continue to see attractive opportunities in Asia, where strong earnings growth is supported by compelling valuations, and we maintain gold as a preferred allocation as investors navigate an increasingly complex environment.”
In its asset allocation strategy, UOBAM remains overweight equities, diversified across fixed income and underweight cash. The firm continues to favour the United States and Asia within equities, while retaining a positive outlook on gold. Supported by strong central bank demand and its role as a safe-haven asset during periods of uncertainty, gold remains an important source of portfolio diversification.
For deeper insights across equities, fixed income, currencies and commodities, read the full 3Q 2026 Investment Strategy: https://uobam.com.sg/qis3q26
About UOB Asset Management
UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has 40 years of experience in managing collective investment schemes and discretionary funds in Singapore, making us among the largest unit trust managers by assets under management. As of 30 June 2026, we manage 63 unit trusts in Singapore and together with our subsidiaries, oversee S$44.3 billion in clients’ assets.
Headquartered in Singapore, UOBAM has a strong presence across Asia, with business and investment offices in Brunei, Indonesia, Japan, Malaysia, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia, a joint venture with Ping An Fund Management Company Limited (China) and strategic alliances with partners such as Wellington Management Singapore.
UOBAM is one of the region’s most awarded asset managers, with over 380 awards won. In 2025, we were recognised as the Best Regional Asset Management Company by the Asia Asset Management and previously named Best Asset Management House in Asia – 20 Years in 2023. Our digital innovation has also earned top honours, including Best Digital Wealth Management in Asia[1] and Best Robo Advisory Initiative[2] for four consecutive years as of 2025.
As a leader in sustainable investing, UOBAM was awarded Best application of ESG in ASEAN[3] (2023) and has received multiple sustainability accolades in Indonesia and Thailand. Our artificial intelligence capabilities were also recognised with the Most Innovative Application of Artificial Intelligence (ASEAN) for three consecutive years[4].
Connect with us: LinkedIn | Facebook
[1] Awarded by Asia Asset Management
[2] Awarded by The Digital Banker for the Global Retail Banking Innovations Award
[3] Awarded by Asia Asset Management
[4] As of 2026, by Asia Asset Management
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SOURCE UOB Asset Management
LG INSTAVIEW™ REFRIGERATOR SURPASSES 5.3 MILLION IN GLOBAL SALES
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