Li Bang International Announces Its Interim Financial Results for the Six Months Ended December 31, 2024
- Revenue growth of 27% YoY to $4.7M driven by project sales
- Gross profit increased 37% with margin improvement to 17.8%
- Net loss reduced by 23% to $1.1M from $1.5M YoY
- Operating expenses decreased by 7.6% to $2.02M
- Successfully completed IPO raising $5.23M
- Cash position improved significantly to $1.09M from $154K in June 2024
- Positive operating cash flow of $258K vs negative $172K in prior year
- Still operating at a significant net loss of $1.1M
- High operating expenses at 43% of revenue
- Significant increase in loans to third parties raising cash flow concerns
- Other income decreased significantly due to lower brand charge revenue and government subsidies
- Challenging economic conditions in PRC market affecting performance
Insights
Li Bang reduced losses by 23% despite Chinese economic slowdown, showing improving margins and post-IPO cash position.
Li Bang International's interim results show meaningful progress in reducing losses while growing revenue in a challenging Chinese economic environment. The company increased revenue by
The operational improvements are particularly noteworthy. Li Bang reduced operating expenses by
The balance sheet transformation is significant. Cash increased from
However, investors should note the
The company's transition to higher-margin self-produced products over purchased components demonstrates a strategic shift that could support sustained margin expansion if manufacturing efficiency continues to improve as management suggests.
JIANGYIN,
Highlights for the Six Months Ended December 31, 2024
- Revenue - for the six months ended December 31, 2024, total revenues of approximately
$4.7 million $3.7 million 27% due mainly to higher revenue from project sales. - Gross profit - for the six months ended December 31, 2024, gross profit of
$841,000 $612,000 37% due mainly to higher revenues and margin improvement. - Despite the challenges from a slow down in the PRC economy, the Company was able to reduce its net loss to approximately
$1.1 million $1.5 million
Unaudited Financial Results for the Six Months Ended December 31, 2024 and 2023
For the Six Months Ended December 31, | ||||||||||||||||||||||||
2024 | 2023 | Variance | ||||||||||||||||||||||
Amount | % of | Amount | % of | Amount | % | |||||||||||||||||||
Revenues | $ | 4,716,845 | 100.0 | % | $ | 3,729,845 | 100.0 | % | $ | 987,000 | 26.5 | % | ||||||||||||
Cost of revenues | (3,875,916) | (82.2) | % | (3,118,057) | (83.6) | % | (757,859) | 24.3 | % | |||||||||||||||
Gross profit | 840,929 | 17.8 | % | 611,788 | 16.4 | % | 229,141 | 37.5 | % | |||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling | 423,228 | 9.0 | % | $ | 368,409 | 9.9 | % | $ | 54,819 | 14.9 | % | |||||||||||||
General and administrative | 1,464,679 | 31.1 | % | 1,479,561 | 39.7 | % | (14,882) | (1.0) | % | |||||||||||||||
Provision for expected credit losses | 135,456 | 2.9 | % | 342,542 | 9.2 | % | (207,086) | (60.5) | % | |||||||||||||||
Total operating expenses | 2,023,363 | 43.0 | % | $ | 2,190,512 | 58.8 | % | $ | (167,149) | (7.6) | % | |||||||||||||
Loss from operations | (1,182,434) | (25.2) | % | (1,578,724) | (42.4) | % | 396,290 | (25.1) | % | |||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Interest expense | (205,482) | (4.4) | % | (213,102) | (5.7) | % | 7,620 | (3.6) | % | |||||||||||||||
Other income, net | 194,583 | 4.1 | % | 347,670 | 9.3 | % | (153,087) | (44.0) | % | |||||||||||||||
Total other (expense) income, net | (10,899) | (0.3) | % | 134,568 | 3.6 | % | (145,467) | (108.1) | % | |||||||||||||||
Loss before provision for income taxes | (1,193,333) | (25.5) | % | (1,444,156) | (38.8) | % | 250,823 | (17.4) | % | |||||||||||||||
Income tax (benefit) expense | (67,418) | (1.4) | % | 18,892 | 0.5 | % | (86,310) | (456.9) | % | |||||||||||||||
Net loss | (1,125,915) | (24.1) | % | (1,463,048) | (39.3) | % | 337,133 | (23.0) | % | |||||||||||||||
Net loss attributable to non-controlling interests | (877) | 0.0 | % | (1,350) | 0.0 | % | 473 | (35.0) | % | |||||||||||||||
Net loss attributable to ordinary shareholders | $ | (1,125,038) | (24.1) | % | (1,461,698) | (39.3) | % | 336,660 | (23.0) | % | ||||||||||||||
Revenues
Total revenue for the six months ended December 31, 2024 increased by
- Revenue for project sales increased by
$963,906 27.6% to$4,451,937 $3,488,031 - Revenues from retail sales increased by
$23,094 9.6% to$264,908 $241,814
Gross Profit
Gross profit was
Operating Expenses
Operating expenses were approximately
- Selling expenses were
$423,228 $54,819 14.9% , from$368,409 - General and administrative expenses were
$1,464,679 $14,882 or1.0% , from$1,479,561 - Provision for expected credit losses was
$135,456 $207,086 or60.5% , from$342,542
Other (Expense) Income
Other (expense) income was expense of
Net Loss
Net loss was
Balance Sheet
As of December 31, 2024, the Company had cash of
Cash Flow
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About Li Bang International Corporation Inc.
Li Bang International Corporation Inc. specializes in the independently research, development, production, and sale of stainless-steel commercial kitchen equipment under its own "Li Bang" brand in
Cautionary Statement Regarding Forward Looking Statements
We have made statements in this report that constitute forward-looking statements. Forward-looking statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "we believe," "we intend," "may," "should," "could" and similar expressions. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements.
These forward-looking statements include statements about: our business and operating strategies and plans for the development of existing and new businesses, ability to implement such strategies and plans and expected time; developments in, or changes to, laws, regulations, governmental policies, incentives, taxation and regulatory and policy environment affecting our operations and the cryptocurrency and blockchain industry; our future business development, financial condition and results of operations; expected changes in our revenues, costs or expenditures; general business, political, social and economic conditions in mainland
The ultimate correctness of these forward-looking statements depends upon a number of known and unknown risks and events. Many factors could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Consequently, you should not place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date on which they are made, and, except as required by law; we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update this forward-looking information. Nonetheless, we reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this interim report. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
CONTACTS
Li Bang International Corporation Inc.
Investor Relations Department
Email: guanli@libangco.cn
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Expressed in | ||||||||
December 31, | June 30, | |||||||
2024 | 2024 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 1,094,269 | $ | 153,914 | ||||
Restricted cash | 96,125 | 80,293 | ||||||
Accounts receivable, net | 11,662,750 | 12,286,665 | ||||||
Notes receivable | 22,543 | 172,348 | ||||||
Loans receivable | 4,515,050 | - | ||||||
Inventories | 1,728,639 | 1,750,369 | ||||||
Advances to suppliers, net | 846,772 | 991,518 | ||||||
Prepaid expenses and other current assets, net | 348,042 | 283,061 | ||||||
Total current assets | 20,314,190 | 15,718,168 | ||||||
Non-current assets: | ||||||||
Fixed deposits | 2,643,147 | 2,665,993 | ||||||
Non-current accounts receivable | 526,939 | 670,146 | ||||||
Prepayment for land use rights | 1,391,130 | 1,403,154 | ||||||
Deferred offering cost | - | 588,013 | ||||||
Property and equipment, net | 2,687,078 | 2,790,891 | ||||||
Intangible assets, net | 527,846 | 539,925 | ||||||
Deferred tax assets, net | 575,376 | 533,345 | ||||||
Other non-current assets | 134,790 | 169,933 | ||||||
Total non-current assets | 8,486,306 | 9,361,400 | ||||||
Total Assets | $ | 28,800,496 | $ | 25,079,568 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term loans | $ | 425,951 | $ | 6,857,415 | ||||
Accounts payable | 4,697,264 | 4,694,905 | ||||||
Advances from customers | 1,173,881 | 1,027,164 | ||||||
Taxes payable | 3,027,617 | 3,273,227 | ||||||
Due to related parties | 224,636 | 131,574 | ||||||
Other payables and other current liabilities | 1,403,386 | 1,033,729 | ||||||
Total current liabilities | 10,952,735 | 17,018,014 | ||||||
Non-current Liabilities: | ||||||||
Long-term loans | 10,155,250 | 3,806,557 | ||||||
Total non-current liabilities | 10,155,250 | 3,806,557 | ||||||
Total Liabilities | 21,107,985 | 20,824,571 | ||||||
Commitments and contingencies | - | - | ||||||
Equity: | ||||||||
Ordinary shares (par value | 1,875 | 1,700 | ||||||
Subscription receivable | (1,699) | (1,699) | ||||||
Additional paid-in capital | 6,833,912 | 2,236,677 | ||||||
Statutory reserves | 761,989 | 755,100 | ||||||
Retained earnings | 452,050 | 1,583,977 | ||||||
Accumulated other comprehensive loss | (293,423) | (258,907) | ||||||
Total shareholders' equity of the Company | 7,754,704 | 4,316,848 | ||||||
Non-controlling interests | (62,193) | (61,851) | ||||||
Total Equity | 7,692,511 | 4,254,997 | ||||||
Total Liabilities and Equity | $ | 28,800,496 | $ | 25,079,568 | ||||
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS | ||||||||
(Expressed in | ||||||||
For the Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Revenues： | ||||||||
Project revenues | $ | 4,451,937 | $ | 3,488,031 | ||||
Retail revenues | 264,908 | 241,814 | ||||||
Total revenues | 4,716,845 | $ | 3,729,845 | |||||
Cost of revenues | (3,875,916) | (3,118,057) | ||||||
Gross profit | 840,929 | 611,788 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 423,228 | 368,409 | ||||||
General and administrative | 1,464,679 | 1,479,561 | ||||||
Provision for expected credit losses | 135,456 | 342,542 | ||||||
Total operating expenses | 2,023,363 | 2,190,512 | ||||||
Loss from operations | (1,182,434) | (1,578,724) | ||||||
Other (expenses) income: | ||||||||
Interest expense | (205,482) | (213,102) | ||||||
Other income, net | 194,583 | 347,670 | ||||||
Total other (expenses) income, net | (10,899) | 134,568 | ||||||
Loss before provision for income taxes | (1,193,333) | (1,444,156) | ||||||
Income tax (benefit) expense | (67,418) | 18,892 | ||||||
Net loss | (1,125,915) | (1,463,048) | ||||||
Less: net loss attributable to non-controlling interests | (877) | (1,350) | ||||||
Net loss attributable to ordinary shareholders | $ | (1,125,038) | $ | (1,461,698) | ||||
Comprehensive loss | ||||||||
Net loss | $ | (1,125,915) | $ | (1,463,048) | ||||
Foreign currency translation (loss) gain | (33,981) | 102,560 | ||||||
Total comprehensive loss | (1,159,896) | (1,360,488) | ||||||
Comprehensive loss attributable to non-controlling interests | (342) | (2,543) | ||||||
Comprehensive loss attributable to ordinary shareholders | $ | (1,159,554) | $ | (1,357,945) | ||||
Loss per ordinary share | ||||||||
– Basic and diluted | $ | (0.06) | $ | (0.09) | ||||
Weighted average number of ordinary shares outstanding | ||||||||
– Basic and diluted | 17,628,239 | 17,000,000 | ||||||
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,125,915) | $ | (1,463,048) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 218,547 | 230,934 | ||||||
Gain on disposal of property and equipment | (17,245) | (14,785) | ||||||
Provision for expected credit losses | 135,456 | 342,542 | ||||||
Deferred tax expense | (46,935) | 18,892 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 713,032 | 287,094 | ||||||
Notes receivable | 149,390 | (673,822) | ||||||
Advances to suppliers | (39,082) | (624,146) | ||||||
Inventories | 6,779 | (419,768) | ||||||
Prepaid expenses and other current assets | (45,089) | 237,785 | ||||||
Accounts payable | 42,896 | 746,266 | ||||||
Advances from customers | 156,632 | 763,878 | ||||||
Taxes payable | (219,118) | (90,259) | ||||||
Due to related parties | (522) | (14,032) | ||||||
Other payables and other current liabilities | 329,605 | 500,640 | ||||||
Net cash provided by (used in) operating activities | 258,431 | (171,829) | ||||||
Cash flows from investing activities: | ||||||||
Loans to third parties | (4,515,050) | - | ||||||
Purchases of property and equipment | (42,177) | (104,142) | ||||||
Proceeds from disposal of property and equipment | 24,236 | 17,271 | ||||||
Net cash used in investing activities | (4,532,991) | (86,871) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from loans | 56,044 | 783,945 | ||||||
Repayments of loans | (47,370) | (691,466) | ||||||
Payment of offering costs | - | (74,566) | ||||||
Net proceeds from initial public offering | 5,227,732 | - | ||||||
Net cash provided by financing activities | 5,236,406 | 17,913 | ||||||
Effect of foreign exchange rate on cash | (2,449) | 8,352 | ||||||
Net increase (decrease) in cash and restricted cash | 959,397 | (232,435) | ||||||
Cash and restricted cash at the beginning of the period | 230,997 | 541,127 | ||||||
Cash and restricted cash at the end of the period | $ | 1,190,394 | $ | 308,692 | ||||
Reconciliation of cash and restricted cash | ||||||||
Cash | $ | 1,094,269 | $ | 169,996 | ||||
Restricted cash | 96,125 | 138,696 | ||||||
Total cash and restricted cash per the statements of cash flows | $ | 1,190,394 | $ | 308,692 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid | $ | 202,787 | $ | 217,565 | ||||
Income taxes paid | $ | 124 | $ | - | ||||
Non-cash transactions: | ||||||||
Reclassification of deferred offering cost | $ | 630,322 | $ | - | ||||
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SOURCE Li Bang International Corporation Inc.
FAQ
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