Li Bang International Corporation Inc. Reports Financial Results for Fiscal Year 2024
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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%
News Market Reaction – LBGJ
On the day this news was published, LBGJ gained 0.50%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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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