Internalization of Routes Previously Handled by Third-Party Carriers is Intended to Enhance Cost Efficiency and Strengthens Operational Control, and May Contribute to Margin Improvement as Fulfillment Network Scales
WALNUT, CA, April 06, 2026 (GLOBE NEWSWIRE) — Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today provided an operational update on its middle-mile transportation initiative — an ongoing effort to internalize logistics movements that were previously reliant on third-party carriers and manage these activities as a controllable component of the Company’s cost structure.
The initiative is built on an operational approach: as Armlogi’s e-commerce fulfillment volumes have grown, the cost, risk, and inefficiency of routing middle-mile transportation through outside providers have increased proportionally. A meaningful portion of the middle-mile movements that were previously contracted to third-party carriers across the Company’s California operations are now being handled by Armlogi’s own fleet on internally managed routes — a direct conversion of outsourced transportation spend into a logistics capability the Company owns, staffs, and optimizes. By bringing this transportation layer in-house, Armlogi may reduce its dependence on external carrier expense and may gain direct control over transfer frequency, routing efficiency, and network responsiveness across its fulfillment ecosystem.
The financial implications are preliminary and subject to uncertainty. Transportation, which was previously a variable, outsourced cost subject to third-party carrier pricing and availability, may become a fixed-cost capability that the Company operates, scales, and optimizes. As the internal middle-mile network adds density — more routes, higher transfer frequency, and increasing volume across the same operational infrastructure — the per-unit cost of those movements may decline over time. The Company believes the improving cost structure of its transportation layer may contribute to improved logistics network performance over time, and that additional revenue opportunities may emerge as the platform scales beyond its current primary function of supporting internal fulfillment operations.
The operational foundation for this shift is in place. Over the past six months, California-based transfer routes expanded approximately 40–50% and middle-mile transfer volumes grew approximately 50–60% —as previously reported, based on internal company data, compared to the immediately preceding six-month period, and reflecting the network’s capacity to support increased internalization. The focus now turns from building out that infrastructure to running it with increasing efficiency.
The current phase of development is concentrated in Southern California, where Armlogi is deepening operational connectivity between its facilities, major selling platform fulfillment centers, and regional delivery networks. This geographic concentration is intentional — the Company is building route density and utilization in its core market before extending coverage. As the network matures, Armlogi intends to extend its middle-mile capabilities across Northern California and into neighboring markets, including Nevada and Arizona, progressively linking more of its fulfillment footprint to regional delivery ecosystems.
Armlogi’s approximately 3.9 million square feet of warehouse space across ten facilities in California, Texas, Illinois, New Jersey, and Georgia represents the origin and destination infrastructure for these transportation flows. A more integrated, internally managed transportation layer is intended to improve connectivity between the Company’s warehousing operations and the downstream fulfillment and delivery ecosystems serving its more than 600 active merchant clients — and to help reduce the friction and cost embedded in that connection.
Aidy Chou, Chairman and CEO of Armlogi, commented, “We have been deliberately building our internal transportation capability because we believe the economics of operating our own middle-mile network may be more favorable than continuing to outsource those movements as volume grows. Transportation was a cost we managed around. We are making it a capability we control and optimize. As utilization across our internal routes increases, we believe this may be reflected in our cost structure and, over time, may contribute to imporved margins.. The expansion into Northern California and neighboring states is intended to extend these operational capabilities further across our fulfillment network.”
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a U.S.-based warehousing and logistics service provider offering a comprehensive suite of supply-chain solutions, including warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants seeking to establish U.S. market warehouses. With 10 warehouses totaling over 3.9 million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology to handle and store large, bulky items. Armlogi is a member of the Russell Microcap® Index. For more information, please visit www.armlogi.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, our representatives may from time to time make forward-looking statements, orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our revenue and earnings growth; our business prospects and opportunities; and the expected benefits of our operational initiatives, including the expansion of our internal transportation network. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to successfully implement and scale our internal transportation network; the extent to which anticipated cost efficiencies and operational improvements are realized; our ability to keep pace with new technology and changing market needs; the competitive environment of our business; changes in demand for our services; and our dependence on third-party service providers. These and other factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. Forward-looking statements speak only as of the date of this press release, and except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions described above and in our SEC filings..
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President
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