Li Bang International Corporation Inc. Reports Financial Results for Fiscal Year 2024
Li Bang International (Nasdaq: LBGJ) reported financial results for fiscal year 2024, showing a 22.9% revenue decrease to $10.8 million from $14.0 million in 2023. The company experienced a net loss of $1.4 million, compared to a net income of $0.6 million in 2023. Gross profit declined 53% to $2.7 million, with profit margin decreasing to 25.1% from 41.1%. The revenue decline was attributed to China's economic slowdown and strategic expansion into high-end hotel projects. The company recently completed its IPO on October 23, 2024, raising $6.08 million through the sale of 1,520,000 ordinary shares at $4.00 per share.
Li Bang International (Nasdaq: LBGJ) ha riportato i risultati finanziari per l'anno fiscale 2024, evidenziando un calo dei ricavi del 22,9% a 10,8 milioni di dollari rispetto ai 14,0 milioni del 2023. L'azienda ha registrato una perdita netta di 1,4 milioni di dollari, rispetto a un utile netto di 0,6 milioni nel 2023. Il profitto lordo è diminuito del 53%, scendendo a 2,7 milioni di dollari, con un margine di profitto che è passato dal 41,1% al 25,1%. La diminuzione dei ricavi è attribuita al rallentamento economico della Cina e all'espansione strategica in progetti di hotel di alta gamma. L'azienda ha recentemente completato la sua IPO il 23 ottobre 2024, raccogliendo 6,08 milioni di dollari attraverso la vendita di 1.520.000 azioni ordinarie a 4,00 dollari per azione.
Li Bang International (Nasdaq: LBGJ) informó sobre los resultados financieros del año fiscal 2024, mostrando una disminución del 22.9% en los ingresos a 10.8 millones de dólares desde 14.0 millones en 2023. La empresa experimentó una pérdida neta de 1.4 millones de dólares, en comparación con un ingreso neto de 0.6 millones en 2023. La ganancia bruta se redujo un 53% a 2.7 millones de dólares, con un margen de ganancia que disminuyó del 41.1% al 25.1%. La caída en los ingresos se atribuyó al desaceleramiento económico de China y a la expansión estratégica en proyectos de hoteles de lujo. La empresa completó recientemente su OPI el 23 de octubre de 2024, recaudando 6.08 millones de dólares a través de la venta de 1,520,000 acciones ordinarias a 4.00 dólares por acción.
리방 인터내셔널 (Nasdaq: LBGJ)는 2024 회계연도 재무 결과를 보고하며 매출이 22.9% 감소하여 1,080만 달러로 2023년 1,400만 달러에서 줄어들었다고 발표했습니다. 이 회사는 140만 달러의 순손실을 기록했으며, 2023년에는 60만 달러의 순이익을 달성했습니다. 총 이익은 53% 감소하여 270만 달러로 줄어들었고, 이익률은 41.1%에서 25.1%로 감소했습니다. 매출 감소는 중국의 경제 둔화와 고급 호텔 프로젝트에 대한 전략적 확장으로 설명되었습니다. 이 회사는 2024년 10월 23일에 IPO를 완료하고 608만 달러를 모금했으며, 1,520,000주의 보통주를 주당 4.00 달러에 판매했습니다.
Li Bang International (Nasdaq: LBGJ) a publié ses résultats financiers pour l'exercice 2024, montrant une baisse de 22,9 % des revenus à 10,8 millions de dollars contre 14,0 millions en 2023. L'entreprise a enregistré une perte nette de 1,4 million de dollars, contre un bénéfice net de 0,6 million en 2023. Le bénéfice brut a chuté de 53 %, atteignant 2,7 millions de dollars, avec un taux de marge bénéficiaire qui a baissé de 41,1 % à 25,1 %. La baisse des revenus a été attribuée au ralentissement économique de la Chine et à l'expansion stratégique dans des projets hôteliers haut de gamme. L'entreprise a récemment terminé son introduction en bourse le 23 octobre 2024, levant 6,08 millions de dollars par la vente de 1 520 000 actions ordinaires à 4,00 dollars par action.
Li Bang International (Nasdaq: LBGJ) berichtete über die finanziellen Ergebnisse für das Geschäftsjahr 2024 und wies einen Rückgang der Einnahmen um 22,9% auf 10,8 Millionen Dollar im Vergleich zu 14,0 Millionen Dollar im Jahr 2023 aus. Das Unternehmen verzeichnete einen Nettoverlust von 1,4 Millionen Dollar, im Vergleich zu einem Nettoertrag von 0,6 Millionen Dollar im Jahr 2023. Der Bruttogewinn sank um 53% auf 2,7 Millionen Dollar, wobei die Gewinnmarge von 41,1% auf 25,1% zurückging. Der Rückgang der Einnahmen wurde auf die wirtschaftliche Verlangsamung in China und die strategische Expansion in hochwertige Hotelprojekte zurückgeführt. Das Unternehmen hat kürzlich am 23. Oktober 2024 seinen Börsengang (IPO) abgeschlossen und 6,08 Millionen Dollar durch den Verkauf von 1.520.000 Stammaktien zu je 4,00 Dollar pro Aktie gesammelt.
- Successful IPO completion raising $6.08 million in gross proceeds
- Strategic expansion into high-end hotel kitchen equipment sector
- Geographic expansion into new regions (Chongqing and Xi'an)
- Reduction in bad debt expense by 10.6%
- Cash position improved to $153,914 from $76,019 year-over-year
- Revenue decreased 22.9% to $10.8 million
- Net loss of $1.4 million compared to $0.6 million profit in 2023
- Gross profit declined 53% to $2.7 million
- Profit margin decreased to 25.1% from 41.1%
- Average revenue per project decreased by $53,138 to $114,529
- Selling expenses increased by 27.8%
Insights
Li Bang's FY2024 results reveal concerning trends with
The recent IPO raising
The company's expansion strategy into China's central and western regions through competitive pricing reveals market penetration challenges in a saturated industry. The
JIANGYIN,
Mr. Feng Huang, Chief Executive Officer & Chairman of the Board, commented, "Despite a challenging economic environment, fiscal year 2024 was a year of important strategic progress for Li Bang. We focused on expanding our footprint in the high-end hotel kitchen equipment sector and broadened our reach to emerging regions such as
"Looking ahead, we plan to allocate funds strategically towards plant construction, equipment procurement, marketing, and innovation to drive product quality and operational efficiency. Our ongoing investments in research and development will allow us to continue delivering cutting-edge and cost-effective solutions to our clients. We remain committed to delivering high-quality products and generating sustainable value for our shareholders, and we are confident in our ability to strengthen our market position," concluded Mr. Feng Huang.
Fiscal Year 2024 Financial Results
Revenue
Total revenue was
- Revenue from project sales was
$10.4 million 23.2% from$13.6 million China's economy that negatively impacted the number of projects; 2) the change in the project-mix as a number of the Company expanded into high-end hotel kitchen projects and a number of them were in-progress as of June 30, 2024, and 3) average revenue per project decreased by$53,138 $114,529 $167,667 China , such asChongqing andXian and enhance brand awareness by lowering its project quotations. - Revenues from retail sales was
$367,976 13.1% from$423,527 China economy.
Cost of Revenue
Cost of revenue was
Gross Profit and Profit Margin
Gross profit was
Profit margin was
Operating Expenses
Operating expenses were
- Selling expenses were
$831,252 27.8% , from$650,268 - General and administrative expenses were
$2.5 million 5.2% from$2.6 million $182,535 $22,146 $68,895 - Bad debt expense was
$1.1 million 10.6% , from$1.2 million
Net Income (Loss)
Net loss was
Basic and Diluted Earnings/(Loss) per Share
Basic and diluted loss per share was
Financial Condition
As of June 30, 2024, the Company had cash of
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
Recent Development
On October 23, 2024, the Company completed its initial public offering (the "Offering") of 1,520,000 ordinary shares, at a price of
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
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. 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 other filings with the SEC.
For more information, please contact:
Li Bang International Corporation Inc.
Investor Relations Department
Email: libangsales@libangco.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of June 30, | ||||||||
2024 | 2023 | |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 153,914 | $ | 76,019 | ||||
Restricted cash | 80,293 | 465,108 | ||||||
Accounts receivable, net | 12,286,665 | 11,874,127 | ||||||
Notes receivable | 172,348 | - | ||||||
Advances to suppliers, net | 991,518 | 916,818 | ||||||
Inventories | 1,750,369 | 1,546,617 | ||||||
Prepaid expenses and other current assets, net | 283,061 | 411,263 | ||||||
Total current assets | 15,718,168 | 15,289,952 | ||||||
Non-current assets: | ||||||||
Fixed deposits | 2,665,993 | 2,629,467 | ||||||
Non-current accounts receivable | 670,146 | 1,448,214 | ||||||
Prepayment for land use rights | 1,403,154 | 1,383,930 | ||||||
Deferred offering costs | 588,013 | 455,395 | ||||||
Property and equipment, net | 2,790,891 | 3,091,893 | ||||||
Intangible assets, net | 539,925 | 547,354 | ||||||
Deferred tax assets, net | 533,345 | 433,591 | ||||||
Other non-current assets | 169,933 | 73,223 | ||||||
Total non-current assets | 9,361,400 | 10,063,067 | ||||||
Total Assets | $ | 25,079,568 | $ | 25,353,019 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term loans | $ | 6,857,415 | $ | 9,680,589 | ||||
Accounts payable | 4,694,905 | 4,360,460 | ||||||
Advances from customers | 1,027,164 | 1,029,455 | ||||||
Taxes payable | 3,273,227 | 3,329,494 | ||||||
Due to related parties | 131,574 | 155,512 | ||||||
Other payables and other current liabilities | 1,033,729 | 950,924 | ||||||
Total current liabilities | 17,018,014 | 19,506,434 | ||||||
Non-current Liabilities: | ||||||||
Long-term loans | 3,806,557 | 297,545 | ||||||
Total non-current liabilities | 3,806,557 | 297,545 | ||||||
Total Liabilities | 20,824,571 | 19,803,979 | ||||||
Commitments and Contingencies | - | - | ||||||
Equity: | ||||||||
Ordinary shares (par value | 1,700 | 1,700 | ||||||
Subscription receivable | (1,699) | (1,699) | ||||||
Additional paid-in capital | 2,236,677 | 2,236,677 | ||||||
Statutory reserves | 755,100 | 755,100 | ||||||
Retained earnings | 1,583,977 | 2,955,118 | ||||||
Accumulated other comprehensive loss | (258,907) | (339,563) | ||||||
Total shareholders' equity of the Company | 4,316,848 | 5,607,333 | ||||||
Non-controlling interests | (61,851) | (58,293) | ||||||
Total Equity | 4,254,997 | 5,549,040 | ||||||
Total Liabilities and Equity | $ | 25,079,568 | $ | 25,353,019 | ||||
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) | ||||||||||||
For the Years Ended June 30, | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
Revenues: | ||||||||||||
Project revenues | $ | 10,426,039 | $ | 13,581,021 | $ | 13,293,212 | ||||||
Retail revenues | 367,976 | 423,527 | 185,923 | |||||||||
Total revenues | 10,794,015 | $ | 14,004,548 | 13,479,135 | ||||||||
Cost of revenues | (8,086,367) | (8,246,591) | (8,623,897) | |||||||||
Gross profit | 2,707,648 | 5,757,957 | 4,855,238 | |||||||||
Operating expenses: | ||||||||||||
Selling and marketing | 831,252 | 650,268 | 648,648 | |||||||||
General and administrative | 2,509,143 | 2,646,569 | 2,497,626 | |||||||||
Bad debts | 1,084,649 | 1,213,483 | 378,294 | |||||||||
Total operating expenses | 4,425,044 | 4,510,320 | 3,524,568 | |||||||||
(Loss) income from operations | (1,717,396) | 1,247,637 | 1,330,670 | |||||||||
Other income (expenses): | ||||||||||||
Interest expense | (430,639) | (375,445) | (291,901) | |||||||||
Other income (expenses), net | 586,428 | (5,461) | 399,452 | |||||||||
Total other income (expenses), net | 155,789 | (380,906) | 107,551 | |||||||||
(Loss) income before provision for income | (1,561,607) | 866,731 | 1,438,221 | |||||||||
Income tax (benefit) expense | (187,720) | 252,611 | 593,118 | |||||||||
Net (loss) income | (1,373,887) | 614,120 | 845,103 | |||||||||
Less: net loss attributable to non-controlling interests | (2,746) | (2,698) | (3,014) | |||||||||
Net (loss) income attributable to ordinary shareholders | $ | (1,371,141) | $ | 616,818 | $ | 848,117 | ||||||
Comprehensive (loss) income | ||||||||||||
Net (loss) income | $ | (1,373,887) | 614,120 | $ | 845,103 | |||||||
Foreign currency translation gain (loss) | 79,844 | (417,717) | (198,530) | |||||||||
Total comprehensive (loss) income | (1,294,043) | 196,403 | 646,573 | |||||||||
Comprehensive (loss) income attributable to | (3,558) | 1,677 | (680) | |||||||||
Comprehensive (loss) income attributable to ordinary | $ | (1,290,485) | $ | 194,726 | $ | 647,253 | ||||||
(Loss) earnings per ordinary share | ||||||||||||
– Basic and diluted | $ | (0.08) | $ | 0.04 | $ | 0.05 | ||||||
Weighted average number of ordinary shares | ||||||||||||
– Basic and diluted | 17,000,000 | 17,000,000 | 17,000,000 | |||||||||
LI BANG INTERNATIONAL CORPORATION INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Years Ended | ||||||||||||
2024 | 2023 | 2022 | ||||||||||
US$ | US$ | US$ | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (1,373,887) | $ | 614,120 | $ | 845,103 | ||||||
Adjustments to reconcile net (loss) income to net | ||||||||||||
Depreciation and amortization | 460,720 | 498,650 | 541,793 | |||||||||
(Gain) loss on disposal of property and | (14,839) | 547 | - | |||||||||
Bad debt expense | 1,084,649 | 1,213,483 | 378,294 | |||||||||
Deferred tax benefit | (93,655) | (223,230) | (214,530) | |||||||||
Changes in operating assets and liabilities: | - | |||||||||||
Accounts receivable | (391,851) | (5,049,769) | (5,003,595) | |||||||||
Notes receivable | (172,208) | 14,694 | 7,434 | |||||||||
Advances to suppliers | (201,638) | (299,526) | (617,272) | |||||||||
Inventories | (182,119) | 460,389 | 1,790,126 | |||||||||
Due from related parties | - | 297,666 | 886,753 | |||||||||
Prepaid expenses and other current assets | 35,262 | (195,641) | (2,597) | |||||||||
Accounts payable | 273,650 | 1,054,719 | 775,007 | |||||||||
Advances from customers | (16,578) | 294,836 | (1,723,413) | |||||||||
Taxes payable | (102,435) | 639,275 | 1,687,572 | |||||||||
Due to related parties | (26,077) | 85,253 | (78,634) | |||||||||
Other payables and other current liabilities | 74,527 | (39,880) | 317,688 | |||||||||
Net cash used in operating activities | (646,479) | (634,414) | (410,271) | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (104,523) | (175,962) | (84,899) | |||||||||
Proceeds from disposal of property and | 17,334 | 144 | - | |||||||||
Prepayment for land use rights | - | - | (1,548,683) | |||||||||
Purchases of fixed deposits | - | (2,737,161) | - | |||||||||
Net cash used in investing activities | (87,189) | (2,912,979) | (1,633,582) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from loans | 7,969,044 | 14,461,012 | 8,146,072 | |||||||||
Repayments of loans | (7,422,258) | (10,425,427) | (4,843,199) | |||||||||
Payment of offering costs | (127,300) | (91,238) | (255,900) | |||||||||
Dividend paid to shareholders | - | - | (929,210) | |||||||||
Net cash provided by financing activities | 419,486 | 3,944,347 | 2,117,763 | |||||||||
Effect of foreign exchange rate on cash | 7,262 | (27,857) | (6,723) | |||||||||
Net (decrease) increase in cash and restricted | (306,920) | 369,097 | 67,187 | |||||||||
Cash and restricted cash at the beginning of | 541,127 | 172,030 | 104,843 | |||||||||
Cash and restricted cash at the end of the year | $ | 234,207 | $ | 541,127 | $ | 172,030 | ||||||
Reconciliation of cash and restricted cash | ||||||||||||
Cash | $ | 153,914 | $ | 76,019 | $ | 172,030 | ||||||
Restricted cash | 80,293 | 465,108 | - | |||||||||
Total cash and restricted cash shown in the | $ | 234,207 | $ | 541,127 | $ | 172,030 | ||||||
Supplemental disclosures of cash flow | ||||||||||||
Interest paid | $ | 425,736 | $ | 375,286 | $ | 291,901 | ||||||
Income taxes paid | $ | 59 | $ | 167,010 | $ | 983 | ||||||
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SOURCE Li Bang International Corporation Inc.
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