Li Bang International Acquires Majority Stake in Suzhou Yufengyuan Food Distribution Co., Ltd., Accelerating Expansion into High-Margin Catering Services

Li Bang International (Nasdaq: LBGJ) will acquire a 51% controlling interest in Suzhou Yufengyuan Food Distribution Co., Ltd., expanding from stainless-steel kitchen equipment into high-margin catering services.

Rhea-AI Summary

Li Bang International (Nasdaq: LBGJ) will acquire a 51% controlling interest in Suzhou Yufengyuan Food Distribution Co., Ltd., expanding from stainless-steel kitchen equipment into high-margin catering services. The deal is expected to close on or before May 30, 2026, subject to regulatory registration and closing conditions.

Yufengyuan’s ongoing contracts are expected to total about RMB90 million (~$13 million) by end of June 2026, and Li Bang projects Yufengyuan will contribute approximately RMB150 million (~$22 million) in revenue to consolidated 2026 results. Purchase price will be set by independent audit and paid in two tranches.

Positive

• 51% controlling stake acquisition in Yufengyuan
• Yufengyuan ongoing contracts ~RMB90 million by June 2026
• Projected RMB150 million revenue contribution for 2026
• Strategic vertical integration expected to create equipment–services synergies

Negative

• Transaction completion subject to regulatory registration and customary conditions
• Purchase price undetermined pending independent audit and appraisal

Argus Feb 27 session

-83.82% close to close Open Argus

Details

News Market Reaction – LBGJ

On Feb 27, the day this news came out, LBGJ closed 83.82% below the previous close.

Data tracked by StockTitan Argus for the Feb 27 session.

Key Figures

Stake acquired: 51% controlling interest Ongoing contracts: RMB90 million Ongoing contracts (USD): $13 million +4 more

Stake acquired

51% controlling interest

Equity stake in Suzhou Yufengyuan Food Distribution Co., Ltd.

Ongoing contracts

RMB90 million

Expected total value of Yufengyuan contracts by end of June 2026

Ongoing contracts (USD)

$13 million

Approximate USD value of RMB90 million contracts

2026 revenue contribution

RMB150 million

Projected contribution to Li Bang’s consolidated 2026 revenue

2026 revenue contribution (USD)

$22 million

Approximate USD value of projected RMB150 million revenue

Closing deadline

May 30, 2026

Expected closing date for acquisition, subject to conditions

Agreement date

February 25, 2026

Date the binding share purchase agreement was entered into

Historical Context

4 past events · Latest: Feb 12

4 events

1. Feb 12

   Facility milestone

   24h Move

   +3.3%

   Topping-out of Phase II intelligent kitchen facility, operations expected by June 2026.

2. Nov 20

   Share listing change

   24h Move

   -3.8%

   Class A ordinary shares begin Nasdaq trading, substituting prior ordinary shares.

3. Nov 12

   Nasdaq deficiency notice

   24h Move

   -1.2%

   Nasdaq notice for closing bid below $1.00 for 31 consecutive business days.

4. Nov 07

   Fiscal 2025 earnings

   24h Move

   +7.1%

   Revenue growth to $11.1M, margin expansion to 29.2%, narrower net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

binding share purchase agreement, controlling interest, regulatory registration

3 terms

binding share purchase agreement financial

"has entered into a binding share purchase agreement (the “Agreement”) with three"

A binding share purchase agreement is a signed legal contract in which a seller agrees to transfer company shares to a buyer for a specified price and under set conditions. Think of it like a firm sales receipt that commits both parties to the deal; for investors, it matters because it creates near-certain changes in ownership, value, and control that can affect stock price, trigger regulatory reviews, and reshape future company strategy.

controlling interest financial

"to acquire a 51% controlling interest in Yufengyuan."

A controlling interest is when a person or group owns enough shares of a company to influence or make decisions about how it is run. It’s similar to having a majority of votes in a group project, giving you the power to guide decisions. For investors, holding a controlling interest means they can significantly affect the company’s direction and policies.

regulatory registration regulatory

"subject to the completion of regulatory registration updates and other customary"

Regulatory registration is the formal process of submitting required documents and information to a government or regulatory agency so a product, service, or securities offering is recorded, reviewed, and allowed under the law. For investors it matters because registration signals that an activity must meet official safety, disclosure, or compliance standards—like a product getting a safety sticker or a company filing paperwork before selling stock—reducing legal risk and often increasing transparency about future prospects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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JIANGYIN, China, Feb. 27, 2026 (GLOBE NEWSWIRE) -- Li Bang International Corporation Inc. ("Li Bang International") and its subsidiaries (collectively, the "Company," "we," "us," "our company," or "Li Bang") (Nasdaq: LBGJ), a company engaged in designing, developing, producing, and selling stainless steel commercial kitchen equipment in China, today announced that its wholly-owned subsidiary, Jiangsu Li Bang Intelligent Technology Co., Ltd., has entered into a binding share purchase agreement (the “Agreement”) with three individual controlling shareholders of Suzhou Yufengyuan Food Distribution Co., Ltd. ("Yufengyuan") to acquire a 51% controlling interest in Yufengyuan. Yufengyuan is a catering service provider offering centrally prepared meals to institutional clients. This strategic acquisition marks a significant milestone in Li Bang’s vertical integration strategy, extending its value chain from equipment manufacturing into high-margin downstream catering services. The acquisition is expected to be closed on or before May 30, 2026, subject to the completion of regulatory registration updates and other customary closing conditions.

The acquisition is poised to deliver immediate financial accretion to Li Bang. By the end of June 2026, the total value of ongoing contracts secured by Yufengyuan is expected to reach approximately RMB90 million ($13 million). The Company projects that the acquisition will contribute an estimated RMB150 million ($22 million) in total revenue to Li Bang’s consolidated results for the full calendar year of 2026.

By integrating Yufengyuan’s specialized service capabilities – which include the provision of professional chefs and kitchen staff – Li Bang aims to transform its business model from a traditional equipment manufacturer into a comprehensive solutions provider. The Company anticipates that bundling its state-of-the-art kitchen equipment with Yufengyuan’s operational staffing services will create powerful synergies, significantly enhancing its competitiveness in bidding and contract negotiations.

Pursuant to the Agreement entered into on February 25, 2026, the purchase price will be determined based on an independent audit and appraisal of Yufengyuan’s total equity value and will be settled in two tranches, with the registration of the acquired shares and final payment scheduled for completion by May 30, 2026.

Mr. Huang Feng, Chief Executive Officer and Chairman of the Board of Directors of the Company, commented: “Unlike the periodic nature of equipment sales, culinary services are characterized by high frequency and strong customer retention. This acquisition allows Li Bang to capitalize on these recurring revenue streams, extending the lifecycle of its client relationships and improving long-term revenue visibility. Furthermore, the addition of labor-based services, which typically command higher profit margins than hardware manufacturing, is expected to optimize the Company’s overall profitability profile and operational efficiency.”

About Suzhou Yufengyuan Food Distribution Co., Ltd.

Founded in 2002, Suzhou Yufengyuan Food Distribution Co., Ltd. is a leading food‑service provider in Jiangsu province, China. With a 4,500 m² centralized kitchen and a full distribution center, it serves schools, government institutions and corporate clients, delivering 200,000 meals daily and holding a 25‑year zero‑incident food‑safety record with multiple local awards.

Yufengyuan prioritizes nutrition and safety via advanced monitoring and strict supply‑chain controls. It offers tailored, balanced meal programs for students and professionals, uses customer feedback in menu planning, and continues to advance food‑service innovation in China.

About Li Bang International Corporation Inc.

Li Bang International Corporation Inc. (Nasdaq: LBGJ) specializes in the development, production, and sale of stainless-steel commercial kitchen equipment under its own "Li Bang" brand in China. In addition to its product offerings, the Company provides comprehensive services from early-stage design of commercial kitchen appliances to equipment installation and after-sales maintenance. Committed to innovation and high-quality, the Company uses modern production facilities and mature procedures and strives to become a first-class commercial kitchen appliance manufacturer in China. The Company's long-term vision is to establish itself as a household name, synonymous with the products it manufactures. For more information, please visit the company's website at https://ir.libangco.cn.

Forward Looking Statements

Certain statements in this announcement constitute “forward-looking” statements pursuant to the “safe harbor” provisions of 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 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 identify these forward-looking statements by words or phrases such as “may”, “could”, “will”, “should”, “would”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “project” or “continue” or the negative of these terms or other comparable terminology. 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 financial results filings with the U.S. Securities and Exchange Commission.

CONTACTS
Li Bang International Corporation Inc.
Investor Relations Department
Email: guanli@libangco.cn

WFS Investor Relations
Email: services@wealthfsllc.com
Phone: +1 628 283 9214

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What stake is Li Bang International buying in Suzhou Yufengyuan and when will it close (LBGJ)?

Li Bang is acquiring a 51% controlling interest in Yufengyuan, with closing expected on or before May 30, 2026. According to the company, closing remains subject to regulatory registration updates and customary closing conditions.

How much revenue does Li Bang expect from the Yufengyuan acquisition in 2026 (LBGJ)?

Li Bang projects Yufengyuan will contribute about RMB150 million (~$22 million) in total revenue to consolidated 2026 results. According to the company, this is an estimated figure for the full calendar year of 2026.

What contract value does Yufengyuan have secured by June 2026 and how soon (LBGJ)?

Yufengyuan’s ongoing contracts are expected to total approximately RMB90 million (~$13 million) by the end of June 2026. According to the company, this represents the contracted pipeline anticipated shortly after closing.

How will Li Bang pay for the Yufengyuan acquisition and how is price determined (LBGJ)?

The purchase price will be determined by an independent audit and appraisal and paid in two tranches, with final registration and payment by May 30, 2026. According to the company, valuation details await the audit result.

What strategic benefits does Li Bang expect from acquiring Yufengyuan (LBGJ)?

Li Bang expects to vertically integrate equipment manufacturing with high-margin catering services, creating bundling synergies and recurring revenue. According to the company, combining equipment and staffing services should enhance bidding competitiveness and long-term revenue visibility.