Li Bang International Announces Its Interim Financial Results for the Six Months Ended December 31, 2024
JIANGYIN, China, June 17, 2025 /PRNewswire/ -- 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 its unaudited interim financial results for the six months ended December 31, 2024.
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, compared to revenues of approximately $3.7 million for the six months ended 2023, reflecting an increase of approximately 27% due mainly to higher revenue from project sales.
- Gross profit - for the six months ended December 31, 2024, gross profit of $841,000, compared to gross profit of approximately $612,000 for the six months ended 2023, reflecting an increase of approximately 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 for the six months ended December 31, 2024, as comparted to net loss of approximately $1.5 million for the six months ended 2023.
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 $987,000, or 26.5%, to $4,716,845 for the six months ended December 31, 2024 from $3,729,845 for the comparable period in 2023. The increase in the Company's revenues was primarily attributable to the increase in the revenue from project sales.
- Revenue for project sales increased by $963,906 or 27.6% to $4,451,937 for the six months ended December 31, 2024 from $3,488,031 for 2023. The increase was primarily due to three more projects completed in the six months ended December 31, 2024 compared to the comparable period in 2023.
- Revenues from retail sales increased by $23,094 or 9.6% to $264,908 for the six months ended December 31, 2024 from $241,814 for 2023. The change in retail revenues is primarily due to slight increase in total number of retail orders.
Gross Profit
Gross profit was $840,929 for the six months ended December 31, 2024, an increase of $229,141, from $611,788 for the six months ended December 31, 2023. Gross margin increases by 1.4%, to 17.8% for the six months ended December 31, 2024 from 16.4% for the six months ended December 31, 2023. The increase in gross margin was mainly due to the lower proportion of purchased parts and higher proportion of self-produced products in specific projects compared to the six months ended December 31, 2023, resulting in lower overall costs. The product mix is determined by project types and contract terms. Management believes the Company's gross margin will continue to improve as production efficiency increases.
Operating Expenses
Operating expenses were approximately $2.02 million for the six months ended December 31, 2024, a decrease of $167,149 from approximately $2.19 million for the six months ended December 31, 2023.
- Selling expenses were $423,228 for the six months ended December 31, 2024, an increase of $54,819, or 14.9%, from $368,409 for the comparable period in 2023. The net increase was mainly due to the increase in market expansion fees and project bidding fees, which consistent with the revenue growth during the period.
- General and administrative expenses were $1,464,679 for the six months ended December 31, 2024, a decrease of $14,882 or 1.0%, from $1,479,561 for the comparable period in 2023. The decrease was mainly due to the reduction in headcount in administrative departments, net of higher consulting fees compared with the six months ended December 31, 2023.
- Provision for expected credit losses was $135,456 for the six months ended December 31, 2024, a decrease of $207,086 or 60.5%, from $342,542 for the comparable period in 2023. The decrease was mainly due to the collection of the accounts receivables from previous projects. And these receivables were recognized as credit losses in prior periods.
Other (Expense) Income
Other (expense) income was expense of $890,201 and income of $1,493,465 for the six months ended December 31, 2024 and 2023, respectively. The decrease was primarily due to: (a) brand charge revenue decreased by $77,017; (b) government subsidies decreased by $36,969; and (c) non-project installation and maintenance revenue decreased by $27,782.
Net Loss
Net loss was $1,125,915 for the six months ended December 31, 2024, a decrease of $337,133 from net loss of $1,463,048 for the same period in 2023.
Balance Sheet
As of December 31, 2024, the Company had cash of $1,094,269, compared to $153,914 as of June 30, 2024.
Cash Flow
Net cash provided by operating activities was $258,431 for the six months ended December 31, 2024, an increase of $430,260 from net cash used of $171,829 for the same period in 2023. The change was primarily attributable to the Company's enhanced profitability and receivable management.
Net cash used in investing activities was $4,532,991 for the year ended December 31, 2024, an increase of $4,446,120 compared to net cash used in investing activities of $86,871 for the same period in 2023. The change was primarily attributable to the increase in loans lent to third parties.
Net cash provided by financing activities was $5,236,406 for the year ended December 31, 2024, an increase of $5,218,493 compared to net cash provided by financing activities of $17,913 for the same period in 2023. The change was primarily attributable to the completion of the Company's initial public offering("IPO") in 2024, which provided net proceeds of approximately $5.23 million.
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 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 state-of-the-art 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.
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 China where we base our operations.
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 U.S. Dollars, except for the number of shares) | ||||||||
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 $0.0001 per share, 500,000,000 shares authorized, | 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 U.S. Dollars, except for the number of shares) | ||||||||
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 U.S. Dollars) | ||||||||
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.
