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

(MENAFN- PR Newswire)

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 .

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:
[email protected]

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email:
[email protected]

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 $0.0001 per share,500,000,000 shares authorized,17,000,000 shares issued and outstanding)			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) INCOME
		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 taxes			(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 non-controlling interests			(3,558)				1,677				(680)
Comprehensive (loss) income attributable to ordinary shareholders		$	(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 outstanding
– 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 June 30,
		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 cash used in operating activities:
Depreciation and amortization			460,720				498,650				541,793
(Gain) loss on disposal of property and equipment			(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 equipment			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 cash			(306,920)				369,097				67,187
Cash and restricted cash at the beginning of the year			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 statements of cash flows		$	234,207			$	541,127			$	172,030
Supplemental disclosures of cash flow information:
Interest paid		$	425,736			$	375,286			$	291,901
Income taxes paid		$	59			$	167,010			$	983

SOURCE Li Bang International Corporation Inc.

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