Leishen Energy Holding Co., Ltd. Announces Fiscal Year 2024 Financial Results Highlighting Strong Operating Cash Flow and Stable Gross Margins
Leishen Energy reported its fiscal year 2024 financial results, showing mixed performance. Operating cash flow surged 243% to $15.07 million, while total revenues decreased 5.5% to $69.07 million. Net income declined 31.3% to $7.99 million, with operating expenses increasing to $8.48 million.
Segment performance showed varied results: Clean-Energy Equipment revenue fell 14.6% to $33.82 million, while New Energy Sales grew 11.3% to $25.82 million. The company maintained a gross margin of 23.2%, down from 25.1% in 2023. The company's strategy focuses on international expansion, technology innovation, and operational efficiencies, with 72 patents now held across various segments.
Leishen Energy ha riportato i risultati finanziari per l'anno fiscale 2024, mostrando una performance mista. Il flusso di cassa operativo è aumentato del 243% raggiungendo i 15,07 milioni di dollari, mentre i ricavi totali sono diminuiti del 5,5% a 69,07 milioni di dollari. Il reddito netto è calato del 31,3% a 7,99 milioni di dollari, con le spese operative che sono aumentate a 8,48 milioni di dollari.
Le performance dei segmenti hanno mostrato risultati variabili: i ricavi delle attrezzature per l'energia pulita sono diminuiti del 14,6% a 33,82 milioni di dollari, mentre le vendite di nuove energie sono cresciute dell'11,3% a 25,82 milioni di dollari. L'azienda ha mantenuto un margine lordo del 23,2%, in calo rispetto al 25,1% del 2023. La strategia dell'azienda si concentra sull'espansione internazionale, l'innovazione tecnologica e l'efficienza operativa, con 72 brevetti attualmente detenuti in vari segmenti.
Leishen Energy informó sus resultados financieros del año fiscal 2024, mostrando un desempeño mixto. El flujo de caja operativo se disparó un 243% hasta 15,07 millones de dólares, mientras que los ingresos totales disminuyeron un 5,5% a 69,07 millones de dólares. El ingreso neto cayó un 31,3% a 7,99 millones de dólares, con los gastos operativos aumentando a 8,48 millones de dólares.
El desempeño por segmentos mostró resultados variados: los ingresos por equipos de energía limpia cayeron un 14,6% a 33,82 millones de dólares, mientras que las ventas de nueva energía crecieron un 11,3% a 25,82 millones de dólares. La empresa mantuvo un margen bruto del 23,2%, por debajo del 25,1% en 2023. La estrategia de la empresa se centra en la expansión internacional, la innovación tecnológica y la eficiencia operativa, con 72 patentes ahora en su poder en varios segmentos.
Leishen Energy는 2024 회계연도 재무 결과를 발표하며 혼합된 성과를 보여주었습니다. 운영 현금 흐름은 243% 증가하여 1507만 달러에 달했지만, 총 수익은 5.5% 감소하여 6907만 달러에 그쳤습니다. 순이익은 31.3% 감소하여 799만 달러에 이르렀고, 운영 비용은 848만 달러로 증가했습니다.
부문별 성과는 다양했습니다: 청정 에너지 장비 수익은 14.6% 감소하여 3382만 달러에 이르렀고, 신재생 에너지 판매는 11.3% 증가하여 2582만 달러에 달했습니다. 회사는 2023년의 25.1%에서 23.2%로 감소한 총 이익률을 유지했습니다. 회사의 전략은 국제적 확장, 기술 혁신 및 운영 효율성에 중점을 두고 있으며, 현재 여러 부문에서 72개의 특허를 보유하고 있습니다.
Leishen Energy a publié ses résultats financiers pour l'exercice 2024, montrant des performances mitigées. Le flux de trésorerie d'exploitation a explosé de 243% pour atteindre 15,07 millions de dollars, tandis que les revenus totaux ont diminué de 5,5% pour s'établir à 69,07 millions de dollars. Le revenu net a chuté de 31,3% à 7,99 millions de dollars, avec des charges d'exploitation qui ont augmenté à 8,48 millions de dollars.
Les performances par segment ont montré des résultats variés : les revenus des équipements d'énergie propre ont chuté de 14,6% à 33,82 millions de dollars, tandis que les ventes de nouvelles énergies ont augmenté de 11,3% à 25,82 millions de dollars. L'entreprise a maintenu une marge brute de 23,2%, en baisse par rapport à 25,1% en 2023. La stratégie de l'entreprise se concentre sur l'expansion internationale, l'innovation technologique et l'efficacité opérationnelle, avec 72 brevets actuellement détenus dans divers segments.
Leishen Energy hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der operative Cashflow stieg um 243% auf 15,07 Millionen Dollar, während die Gesamterlöse um 5,5% auf 69,07 Millionen Dollar sanken. Der Nettogewinn fiel um 31,3% auf 7,99 Millionen Dollar, während die Betriebsausgaben auf 8,48 Millionen Dollar anstiegen.
Die Segmentleistung zeigte unterschiedliche Ergebnisse: Die Einnahmen aus sauberer Energietechnik sanken um 14,6% auf 33,82 Millionen Dollar, während die Verkäufe neuer Energien um 11,3% auf 25,82 Millionen Dollar stiegen. Das Unternehmen hielt eine Bruttomarge von 23,2%, was einem Rückgang von 25,1% im Jahr 2023 entspricht. Die Strategie des Unternehmens konzentriert sich auf internationale Expansion, technologische Innovation und operative Effizienz, wobei derzeit 72 Patente in verschiedenen Segmenten gehalten werden.
- Operating cash flow increased 243% to $15.07 million
- New Energy Sales revenue grew 11.3% to $25.82 million
- Added major new client contributing $1.5 million in revenue
- Strong cash position with $5.81 million in cash and $17.85 million in short-term investments
- Total revenue decreased 5.5% to $69.07 million
- Net income declined 31.3% to $7.99 million
- Operating expenses increased 30.7% to $8.48 million
- Gross margin decreased from 25.1% to 23.2%
- Clean-Energy Equipment revenue declined 14.6%
Insights
The FY2024 results reveal a strategic transformation at Leishen Energy, marked by robust cash flow management despite top-line pressure. The
The revenue decline of
The balance sheet has strengthened considerably, with short-term investments more than doubling to
The margin compression (gross margin declining to
BEIJING, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Leishen Energy Holding Co., Ltd. ("Leishen Energy"), a leading provider of clean-energy equipment and integrated solutions for the oil and gas industry, today announced its fiscal year 2024 financial results, showcasing robust performance driven by effective cost management, strategic market expansion, and growing demand for the Company’s innovative product offerings.
Fiscal Year 2024 Financial Highlights
- Operating Cash Flow Grows
243% , rising to USD$15.07 million in fiscal year 2024, up from USD$4.39 million in fiscal year 2023, marking a more than243% year-over-year increase. This sharp rise was driven by robust accounts receivable collections, efficiency gains, and disciplined costs. - Total Revenues were USD
$69.07 million , compared to USD$73.08 million in fiscal year 2023, representing a5.5% decrease year-over-year. The decline was primarily attributable to lower sales of clean-energy equipment in the domestic market, partially offset by growth in the Company’s new energy business. - Gross Profit totaled USD
$16.03 million , down from USD$18.38 million in the prior year, reflecting a gross margin of23.2% (25.1% in fiscal year 2023). The margin decrease was primarily driven by lower margins in oil and gas engineering technical services. - Net Income was USD
$7.99 million , compared to USD$11.63 million in fiscal year 2023, reflecting a31.3% decrease. - Operating Expenses rose from USD
$6.49 million in fiscal year 2023 to USD$8.48 million in fiscal year 2024, largely due to higher selling and marketing costs associated with international market expansion, as well as increased research and development. - Net Income Attributable to Leishen Energy was USD
$8.10 million , reflecting a decrease of USD$3.76 million year-over-year.
Segment Performance
- Clean-Energy Equipment
- Revenue declined by
14.6% year-over-year, to USD$33.82 million , mainly due to reduced domestic orders amid tighter market competition and lower selling prices for certain common products. The segment contributed49.0% of total revenues.
- Revenue declined by
- Digitalization and Integration Equipment
- Revenue was USD
$3.08 million , reflecting a modest year-over-year decline. Gross margin improved to18.2% as the Company continued to streamline costs and enhance efficiency.
- Revenue was USD
- New Energy Sales
- Revenue grew
11.3% , reaching USD$25.82 million , driven by increased demand for natural gas. The Company added a major new client in fiscal year 2024, contributing over USD$1.5 million in revenue.
- Revenue grew
- Oil and Gas Engineering Technical Services
- Revenue was USD
$6.35 million , representing a decrease of8.4% from the prior year, due to intensified pricing pressure and customers adopting lower-cost operating models. Despite increased competition, the Company continues to develop new projects at home and abroad.
- Revenue was USD
Management Commentary
“We are pleased to report that while Leishen Energy experienced year-over-year declines in revenue and profitability in fiscal 2024, we have strengthened our position in new energy sales and increased our presence in international markets,” said Hongliang Li, Chief Executive Officer of Leishen Energy. “The successful expansion of our customer base—particularly in overseas regions—and ongoing investments in research and development underscore our commitment to delivering innovative, high-performance energy solutions.”
Zhiping Yu, Chief Financial Officer, added: “As we navigate near-term market pressures, we remain focused on cost optimization and strategic capital allocation. We believe our prudent balance sheet management, coupled with targeted investments in key growth areas, will help us enhance our financial performance and maintain sustainable returns for our shareholders in the years to come.”
Business Outlook
The Company aims to capitalize on the following growth drivers and strategic initiatives in fiscal year 2025 and beyond:
- International Expansion: Continued pursuit of overseas projects in Central Asia, Southeast Asia, and the Middle East, including joint reserve warehouses of spare parts with major oilfields and new power plant operation and maintenance projects in Africa.
- Technology and Innovation: Further investment in research and development to strengthen patented technologies, with 72 patents now held across clean-energy equipment, oil and gas engineering technical services, and new energy production and operation.
- Customer Diversification: Ongoing efforts to deepen relationships with long-standing domestic clients while expanding the Company’s international customer pipeline, particularly in digitalization and integration equipment sales.
- Operational Efficiencies: Enhancement of cost-control measures, rigorous supply chain management, and new supplier partnerships to mitigate inflationary pressures and disruptions.
| LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||||||
| | 2024 | 2023 | Variance | |||||||||||||||||||||
| Amount | % of revenue | Amount | % of revenue | Amount | % | |||||||||||||||||||
| Revenues | $ | 69,073,374 | 100.0 | % | $ | 73,084,448 | 100.0 | % | $ | (4,011,074 | ) | (5.5 | )% | |||||||||||
| Cost of revenues | (53,038,855 | ) | (76.8 | )% | (54,705,407 | ) | (74.9 | )% | 1,666,552 | (3.0 | )% | |||||||||||||
| Gross profit | 16,034,519 | 23.2 | % | 18,379,041 | 25.1 | % | (2,344,522 | ) | (12.8 | )% | ||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling and marketing | 2,053,194 | 3.0 | % | 775,957 | 1.1 | % | 1,277,237 | 164.6 | % | |||||||||||||||
| General and administrative | 5,979,890 | 8.7 | % | 5,553,912 | 7.6 | % | 425,978 | 7.7 | % | |||||||||||||||
| Research and development | 449,542 | 0.7 | % | 158,657 | 0.2 | % | 290,885 | 183.3 | % | |||||||||||||||
| Total operating expenses | 8,482,626 | 12.4 | % | 6,488,526 | 8.9 | % | 1,994,100 | 30.7 | % | |||||||||||||||
| Income from operations | 7,551,893 | 10.8 | % | 11,890,515 | 16.2 | % | (4,338,622 | ) | (36.5 | )% | ||||||||||||||
| Other income (loss): | ||||||||||||||||||||||||
| Interest expense | (57,018 | ) | (0.1 | )% | (67,964 | ) | (0.1 | )% | 10,946 | (16.1 | )% | |||||||||||||
| Exchange (loss) gains | (18,107 | ) | 0.0 | % | 280,538 | 0.4 | % | (298,645 | ) | (106.5 | )% | |||||||||||||
| Gain from equity investment | 81,150 | 0.1 | % | 80,616 | 0.10 | % | 534 | 0.7 | % | |||||||||||||||
| Net investment income | 445,271 | 0.6 | % | 108,671 | 0.1 | % | 336,600 | 309.7 | % | |||||||||||||||
| Other expenses, net | 171,845 | 0.2 | % | 71,850 | 0.0 | % | 99,995 | 139.2 | % | |||||||||||||||
| Total other income, net | 623,141 | 0.8 | % | 473,711 | 0.6 | % | 149,430 | 31.5 | % | |||||||||||||||
| Income before income taxes | 8,175,034 | 11.6 | % | 12,364,226 | 16.8 | % | (4,189,192 | ) | (33.9 | )% | ||||||||||||||
| Provision for income taxes | 184,818 | 0.3 | % | 729,506 | 1.0 | % | (544,688 | ) | (74.7 | )% | ||||||||||||||
| Net income | 7,990,216 | 11.3 | % | 11,634,720 | 15.8 | % | (3,644,504 | ) | (31.3 | )% | ||||||||||||||
| Net loss attributable to non-controlling interests | (105,655 | ) | (0.2 | )% | (223,870 | ) | (0.3 | )% | 118,215 | (52.8 | )% | |||||||||||||
| Net income attributable to Leishen Energy Holding Co., Ltd. | $ | 8,095,871 | 11.5 | % | $ | 11,858,590 | 16.1 | % | $ | (3,762,719 | ) | (31.7 | )% | |||||||||||
| LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| As of September 30, | |||||||
| 2024 | 2023 | ||||||
| US$ | US$ | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash | $ | 5,811,798 | $ | 4,567,608 | |||
| Restricted cash | 1,489,216 | - | |||||
| Short-term investments | 17,850,648 | 7,234,607 | |||||
| Accounts receivable, net | 21,826,297 | 30,742,914 | |||||
| Notes receivable | 1,054,528 | 1,304,004 | |||||
| Advance to suppliers, net | 5,896,595 | 5,637,829 | |||||
| Inventories | 5,396,634 | 7,877,202 | |||||
| Due from related parties | 31,535 | 44,848 | |||||
| Loan receivable - related party | 822,878 | - | |||||
| Prepaid expenses and other current assets, net | 1,567,060 | 1,351,049 | |||||
| Total current assets | 61,747,189 | 58,760,061 | |||||
| Non-current assets: | |||||||
| Long-term investments | 1,758,515 | 1,670,461 | |||||
| Deferred offering costs | 437,653 | 271,155 | |||||
| Property and equipment, net | 4,111,919 | 3,838,135 | |||||
| Intangible assets | 140,070 | 152,901 | |||||
| Operating lease right-of-use assets, net | 668,259 | 712,065 | |||||
| Loans receivable, non-current | 725,699 | - | |||||
| Other non-current assets | 44,746 | 52,351 | |||||
| Total non-current assets | 7,886,861 | 6,697,068 | |||||
| Total Assets | $ | 69,634,050 | $ | 65,457,129 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities: | |||||||
| Short-term loans | $ | 50,899 | $ | 1,090,378 | |||
| Accounts payable | 10,731,238 | 11,758,870 | |||||
| Advance from customers | 2,292,728 | 1,465,285 | |||||
| Taxes payable | 3,418,725 | 2,755,661 | |||||
| Due to related parties | 9,239,059 | 13,387,546 | |||||
| Operating lease liabilities | 68,291 | 62,057 | |||||
| Other payables and other current liabilities | 1,339,969 | 1,303,371 | |||||
| Total current liabilities | 27,140,909 | 31,823,168 | |||||
| Non-current Liabilities: | |||||||
| Long-term loans | 1,127,380 | 49,676 | |||||
| Deferred tax liabilities, net | 307,513 | 1,175,703 | |||||
| Operating lease liabilities, non-current | 602,735 | 650,007 | |||||
| Total non-current liabilities | 2,037,628 | 1,875,386 | |||||
| Total Liabilities | 29,178,537 | 33,698,554 | |||||
| Equity: | |||||||
| Ordinary shares, par value | 15,500 | 15,500 | |||||
| Subscription receivable | (15,500 | ) | (15,500 | ) | |||
| Additional paid-in capital | 1,617,966 | 1,617,966 | |||||
| Statutory reserves | 1,690,994 | 1,565,649 | |||||
| Retained earnings | 37,339,006 | 29,368,480 | |||||
| Accumulated other comprehensive loss | (861,374 | ) | (1,746,809 | ) | |||
| Total equity attributable to Leishen Energy Holding Co., Ltd | 39,786,592 | 30,805,286 | |||||
| Non-controlling interests | 668,921 | 953,289 | |||||
| Total Equity | 40,455,513 | 31,758,575 | |||||
| Total Liabilities and Equity | $ | 69,634,050 | $ | 65,457,129 | |||
About Leishen Energy Holding Co., Ltd.
The Leishen Group was founded in 2007 and is a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, with a commitment to providing customers with high-performance, safe and cost-effective energy solutions. Our major lines of business include (i) sale of clean-energy industry; (ii) new energy production and operation; (iii) digitalization and integration equipment; and (iv) oil and gas engineering technical services. At present, the Group holds more than 70 patents and software copyrights, forming a comprehensive ecosystem of core technical capabilities. Currently, our business operations have expanded beyond the PRC to Central Asia, and Southeast Asia, and our service abilities and quality have been widely recognized and praised by foreign customers. Efficient, safe and energy-saving equipment combined with professional technical services have enabled our brand to gain positive attention and recognition from our customers and enabled us to become a well-known equipment and services provider in the oil and gas industry. For more information, please visit the Company’s website: www.r-egroup.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s share offering. 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 may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. 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:
Investor Relations
Michael Wei
Email:hwey@horizonconsultancy.co
FAQ
What caused Leishen Energy's operating cash flow to increase by 243% in FY2024?
Why did Leishen Energy's clean-energy equipment revenue decline by 14.6% in FY2024?
What is Leishen Energy's international expansion strategy for FY2025?
How much did Leishen Energy's operating expenses increase in FY2024?
What was Leishen Energy's gross margin in FY2024 compared to FY2023?
