Li Bang International Corporation Inc. Reports Financial Results for Fiscal Year 2024

PR Newswire

JIANGYIN, China, Nov. 8, 2024

JIANGYIN, China, Nov. 8, 2024 /PRNewswire/ -- Li Bang International Corporation Inc. (Nasdaq: LBGJ) (the "Company" or "Li Bang"), a company engaged in designing, developing, producing, and selling stainless steel commercial kitchen equipment in China, today announced its financial results for the fiscal year ended June 30, 2024.

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 Chongqing and Xi'an. Additionally, in October 2024, we successfully completed our initial public offering and achieved a listing on the Nasdaq Capital Market under the ticker symbol 'LBGJ.' This significant milestone enhances our global competitiveness and reinforces our commitment to long-term growth."

"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 $10.8 million for fiscal year 2024, which decreased by 22.9% from $14.0 million for fiscal year 2023.

   -- Revenue from project sales was $10.4 million for fiscal year 2024, 
      decreased 23.2% from $13.6 million for fiscal year 2023. The decrease was 
      primarily due to: 1) the slow-down of the 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 to $114,529 for the year ended 
      June 30, 2024 from $167,667 for 2023. Lower average revenue per project 
      was the result of the Company's decision to strategically attract 
      potential customers in the central and western regions of China, such as 
      Chongqing and Xian and enhance brand awareness by lowering its project 
      quotations. 
 
   -- Revenues from retail sales was $367,976 for fiscal year 2024, decreased 
      by 13.1% from $423,527 for fiscal year 2023. The change in retail 
      revenues is due primarily to the slowdown of the China economy. 

Cost of Revenue

Cost of revenue was $8.1 million for fiscal year 2024, decreased by 1.9% from $8.2 million for fiscal year 2023, which was in line with the decrease of total revenue.

Gross Profit and Profit Margin

Gross profit was $2.7 million for fiscal year 2024, decreased by 53.0% from $5.8 million for fiscal year 2023.

Profit margin was 25.1% for fiscal year 2024, decreased by 16.0% from 41.1% for fiscal year 2023.

Operating Expenses

Operating expenses were $4.4 million for fiscal year 2024, decreased by 1.9% from $4.5 million for fiscal year 2023.

   -- Selling expenses were $831,252 for fiscal year 2024, increased by 27.8%, 
      from $650,268 for fiscal year 2023. The increase was mainly due to: the 
      increase in compensation of sales personnel, market expansion fees and 
      design fees. 
 
   -- General and administrative expenses were $2.5 million for fiscal year 
      2024, decreased by 5.2% from $2.6 million for fiscal year 2023. The 
      decrease was mainly due to: a) employee salary decreased by $182,535; b) 
      depreciation expense decreased by $22,146; net of c) entertainment 
      expenses increased by $68,895. 
 
   -- Bad debt expense was $1.1 million for fiscal year 2024, decreased by 
      10.6%, from $1.2 million for fiscal year 2023. The decrease was mainly 
      due to the collection of the accounts receivables from previous projects. 

Net Income (Loss)

Net loss was $1.4 million for fiscal year 2024, compared to net income of $0.6 million for fiscal year 2023.

Basic and Diluted Earnings/(Loss) per Share

Basic and diluted loss per share was $0.08 for fiscal year 2024, compared to earnings per share of $0.04 for fiscal year 2023.

Financial Condition

As of June 30, 2024, the Company had cash of $153,914, increased from $76,019 as of June 30, 2023.

Net cash used in operating activities was $646,479 in fiscal year 2024, compared to $634,414 in fiscal year 2023.

Net cash used in investing activities was $87,189 in fiscal year 2024, compared to $2,912,979 in fiscal year 2023.

Net cash provided by financing activities was $419,486 in fiscal year 2024, compared to $3,944,347 in fiscal year 2023.

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 $4.00 per ordinary share. The gross proceeds were $6.08 million from the Offering, before deducting underwriting discounts and other related expenses. The Company's ordinary shares began trading on the Nasdaq Capital Market on October 23, 2024, under the ticker symbol "LBGJ."

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.

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 
                                           ==========   ========== 
 

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