EX-99.1 2 ea024576401ex99-1_libang.htm PRESS RELEASE

Exhibit 99.1

 

Li Bang International Announces Its Interim Financial Results for the Six Months Ended December 31, 2024

 

JIANGYIN, China, Jun. 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
(Unaudited)		   % of
revenue		   Amount
(Unaudited)		   % of
revenue		   Amount
(Unaudited)		   % 
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.

 

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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.

 

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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 

 

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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, 18,748,000 and 17,000,000 shares issued and outstanding as of December 31, 2024 and June 30, 2024, respectively)   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 

 

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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  

 

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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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