Leishen Energy Holding Co., Ltd. Announces Fiscal Year 2024 Financial Results Highlighting Strong Operating Cash Flow and Stable Gross Margins
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
than 243% 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 a 5.5% 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 of 23.2% (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 a 31.3% 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
1. 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 contributed 49.0% of total revenues.
2. Digitalization and Integration Equipment
-- Revenue was USD $3.08 million, reflecting a modest year-over-year
decline. Gross margin improved to 18.2% as the Company continued
to streamline costs and enhance efficiency.
3. 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.
4. Oil and Gas Engineering Technical Services
-- Revenue was USD $6.35 million, representing a decrease of 8.4%
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.
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
---------------------- ---------------------- --------------------
% of % of
Amount revenue Amount 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
(MORE TO FOLLOW) Dow Jones Newswires
February 18, 2025 09:30 ET (14:30 GMT)