Li Bang International Announces Its Audited Financial Results for Fiscal Year Ended June 30, 2025
JIANGYIN, China, Nov. 07, 2025 (GLOBE NEWSWIRE) -- 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 audited financial results for the fiscal year ended June 30, 2025.
Highlights for Fiscal Year Ended June 30, 2025
- Total revenue increased 2.9% to approximately $11.1 million for the year ended June 30, 2025 from approximately $10.8 million for fiscal year 2024.
- Gross profit increased 4.1% to approximately $3.2 million for the year ended June 30, 2025, compared to approximately $2.7 million for fiscal year 2024. Gross margin improved by 4.1 percentage points, to 29.2% for the year ended June 30, 2025, from 25.1% for fiscal year 2024.
- Net loss was kept being narrowed to approximately $1.0 million for fiscal year 2025 from approximately $1.4 million in 2024.
Mr. Huang Feng, Chief Executive Officer and Chairman of Li Bang, commented: "We made measurable progress for the year ended June 30, 2025 versus the prior year. Total revenue increased by 2.9% to $11.1 million, gross profit grew to $3.2 million and gross margin also expanded to 29.2% from 25.1%, all contributing to a narrowed net loss of approximately $1.0 million, a 26.1% improvement year over year."
"Against the industry backdrop of softer raw‑material costs and continued demand variability in project-based markets, the Company has benefited from both input-cost tailwinds and disciplined pricing. Past investments in regional expansion and channel testing informed a leaner marketing approach in 2025, and improved collections have reduced provisioning pressure. The Company remains mindful that market cycles, stainless‑steel pricing and end‑market demand will influence near‑term performance."
"Looking ahead, we will prioritize sustainable revenue growth, margin protection and liquidity. The Company will pursue customer and geographic diversification to increase higher‑margin project sales, secure supplier terms to mitigate raw‑material volatility, and scale the retail channel selectively. Li Bang is also actively looking for acquisition opportunities across upstream and downstream sectors and expects to make progress within the next six months, with timely updates to the market. Meanwhile we will manage discretionary spend and focus on converting backlog into cash to support operations and corporate development."
Audited Financial Results for Fiscal Years Ended June 30, 2025 and 2024
| 2025 | 2024 | Variance | |||||||||||||||||
| In USD million except percentages, differences due to rounding. | Amount | % of revenue | Amount | % of revenue | % | ||||||||||||||
| Revenues | $ | 11.1 | 100.0 | % | $ | 10.8 | 100.0 | % | 2.9 | % | |||||||||
| Cost of revenues | (7.9 | ) | (70.8 | )% | (8.1 | ) | (74.9 | )% | (2.8 | )% | |||||||||
| Gross profit | 3.2 | 29.2 | % | 2.7 | 25.1 | % | 20.0 | % | |||||||||||
| Total operating expenses | 4.6 | 41.5 | % | 4.4 | 40.9 | % | 4.1 | % | |||||||||||
| Loss from operations | (1.4 | ) | (12.3 | )% | (1.7 | ) | (15.8 | )% | (21.0 | )% | |||||||||
| Net loss attributable to ordinary shareholders | $ | (1.0 | ) | (9.2 | )% | (1.4 | ) | (12.7 | )% | (26.1 | )% | ||||||||
Revenues
Total revenue increased by $312,063, or 2.9% to approximately $11.1 million for the year ended June 30, 2025 from approximately $10.8 million for fiscal year 2024. The increase was attributable to the increase in the revenue from project sales and retail sales.
- Revenues from project sales increased by $219,298 or 2.1% to approximately $10.6 million for the year ended June 30, 2025 from approximately $10.4 million for fiscal year 2024. The increase was primarily due to the increase in average project price.
- Revenues from retail sales increased by $92,765 or 25.2% to approximately $0.5 million for the year ended June 30, 2025 from approximately $0.4 million for fiscal year 2024. The change in retail revenues is due primarily to 19 more retail orders completed in the year ended June 30, 2025 compared to fiscal year 2024.
Cost of Revenues
Total cost of revenues was approximately $7.9 million for the year ended June 30, 2025, compared to approximately $8.1 million for fiscal year 2024.
- Cost of project sales decreased by $299,915, or 3.8%, to approximately $7.5 million for the year ended June 30, 2025 from approximately $7.8 million for fiscal year 2024. The decrease was due primarily to the decrease in nthe prices of raw materials. The highest unit price of main materials (stainless steel) decreased by 8.3% in fiscal year 2025.
- Cost of retail sales increased by $71,137 or 26.2% to approximately $0.3 million for the year ended June 30, 2025 from approximately $0.27 for fiscal year 2024. The increase was due mainly to the increase in the completion and delivery of retail projects in fiscal year 2025.
Gross Profit
Gross profit was approximately $3.2 million for the year ended June 30, 2025, an increase of $540,841 from approximately $2.7 million for fiscal year 2024. Gross margin increased by 4.1%, to 29.2% for the year ended June 30, 2025, from 25.1% for fiscal year 2024.
- Gross profit for project sales increased by $519,213 to approximately $3.1 million for the year ended June 30, 2025, as compared to approximately $2.6 million for fiscal year 2024. The increase was due to higher average project price in couple with lower cost of main materials (stainless steel) in the year ended June 30, 2025.
- Gross profit for retail sales increased to $118,222 for the year ended June 30, 2025 from $96,594 for fiscal year 2024.
The Company expect to expand market, develop new customers, and enhance operational efficiency to improve gross margin.
Operating Expenses
Operating expenses were approximately $4.6 million for the year ended June 30, 2025, compared to approximately $4.4 million for fiscal year 2024.
- Selling expenses decreased by 10.7% to approximately $0.7 million for the year ended June 30, 2025, down from approximately $0.8 million in fiscal year 2024, primarily due to reduced market expansion costs following expansion into new regions in the previous year as the Company refined its marketing strategy in fiscal year 2025.
- General and administrative expenses increased by 14.3% to approximately $2.9 million, up from approximately $2.5 million in fiscal year 2024, mainly due to higher consulting fees, partially offset by decreased depreciation expenses. The Company anticipates further increases in these expenses post-IPO.
- The provision for expected credit losses decreased by 8.2% to approximately $1.0 million, down from approximately $1.1 million in fiscal year 2024, driven by favorable collection experience.
Other Income, Net
Other income, net increased by $131,331, or 22.4%, to approximately $0.7 million for the year ended June 30, 2025, from approximately $0.6 million for fiscal year 2024. The increase was mainly due to increase in government subsidies and in interest income from fixed deposits and loan receivable, which was partially offset by decrease in consulting service revenue.
Net Loss
Net loss attributable to the Company's ordinary shareholders decreased by $357,566, or 26.1% from approximately 1.4 million for the year ended June 30, 2024, to $1.0 million for the year ended June 30, 2025.
Balance Sheet
As of June 30, 2025 the Company had cash of $933,826, compared to $153,914 as of June 30, 2024.
About Li Bang International Corporation Inc.
Li Bang International Corporation Inc. (NASDAQ:LBGJ) specializes in the 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 mature 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 constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 identify these forward-looking statements by words or phrases such as "may", "could", "will", "should", "would", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "project" or "continue" or the negative of these terms or other comparable terminology. 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 financial results filings with the U.S. Securities and Exchange Commission.
CONTACTS
Li Bang International Corporation Inc.
Investor Relations Department
Email: [email protected]
WFS Investor Relations
Email: [email protected]
Phone: +1 628 283 9214
| LI BANG INTERNATIONAL CORPORATION INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| As of June 30, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 933,826 | $ | 153,914 | ||||
| Restricted cash | 145,739 | 80,293 | ||||||
| Fixed deposits | 2,654,150 | - | ||||||
| Accounts receivable, net | 12,280,554 | 12,286,665 | ||||||
| Notes receivable | 29,544 | 172,348 | ||||||
| Advances to suppliers, net | 781,590 | 991,518 | ||||||
| Inventories | 1,513,758 | 1,750,369 | ||||||
| Loans receivable | 1,000,000 | - | ||||||
| Prepaid expenses and other current assets, net | 600,927 | 283,061 | ||||||
| Total current assets | 19,940,088 | 15,718,168 | ||||||
| Non-current assets: | ||||||||
| Fixed deposits | - | 2,665,993 | ||||||
| Non-current accounts receivable | 517,810 | 670,146 | ||||||
| Non-current loans receivable | 3,515,050 | - | ||||||
| Prepayment for land use rights | - | 1,403,154 | ||||||
| Deferred offering costs | - | 588,013 | ||||||
| Property and equipment, net | 2,633,046 | 2,790,891 | ||||||
| Intangible assets, net | 522,560 | 539,925 | ||||||
| Deferred tax assets, net | 690,158 | 533,345 | ||||||
| Other non-current assets | 15,779 | 169,933 | ||||||
| Total non-current assets | 7,894,403 | 9,361,400 | ||||||
| Total Assets | $ | 27,834,491 | $ | 25,079,568 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Short-term loans | $ | 7,501,467 | $ | 6,857,415 | ||||
| Accounts payable | 4,075,878 | 4,694,905 | ||||||
| Advances from customers | 926,830 | 1,027,164 | ||||||
| Taxes payable | 3,268,416 | 3,273,227 | ||||||
| Due to related parties | 210,490 | 131,574 | ||||||
| Other payables and other current liabilities | 963,789 | 1,033,729 | ||||||
| Total current liabilities | 16,946,870 | 17,018,014 | ||||||
| Non-current Liabilities: | ||||||||
| Long-term loans | 3,073,227 | 3,806,557 | ||||||
| Total non-current liabilities | 3,073,227 | 3,806,557 | ||||||
| Total Liabilities | 20,020,097 | 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 June 30, 2025 and 2024, respectively) | 1,875 | 1,700 | ||||||
| Subscription receivable | (1,699 | ) | (1,699 | ) | ||||
| Additional paid-in capital | 6,831,401 | 2,236,677 | ||||||
| Statutory reserves | 800,096 | 755,100 | ||||||
| Retained earnings | 525,406 | 1,583,977 | ||||||
| Accumulated other comprehensive loss | (279,104 | ) | (258,907 | ) | ||||
| Total shareholders' equity of the Company | 7,877,975 | 4,316,848 | ||||||
| Non-controlling interests | (63,581 | ) | (61,851 | ) | ||||
| Total Equity | 7,814,394 | 4,254,997 | ||||||
| Total Liabilities and Equity | $ | 27,834,491 | $ | 25,079,568 | ||||
| LI BANG INTERNATIONAL CORPORATION INC. CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | ||||||||||||
| For the Years Ended June 30, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Revenues: | ||||||||||||
| Project revenues | $ | 10,645,337 | $ | 10,426,039 | $ | 13,581,021 | ||||||
| Retail revenues | 460,741 | 367,976 | 423,527 | |||||||||
| Total revenues | 11,106,078 | 10,794,015 | 14,004,548 | |||||||||
| Cost of revenues | (7,857,589 | ) | (8,086,367 | ) | (8,246,591 | ) | ||||||
| Gross profit | 3,248,489 | 2,707,648 | 5,757,957 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing | 742,029 | 831,252 | 650,268 | |||||||||
| General and administrative | 2,867,091 | 2,509,143 | 2,646,569 | |||||||||
| Provision for expected credit losses | 995,725 | 1,084,649 | 1,213,483 | |||||||||
| Total operating expenses | 4,604,845 | 4,425,044 | 4,510,320 | |||||||||
| (Loss) income from operations | (1,356,356 | ) | (1,717,396 | ) | 1,247,637 | |||||||
| Other income (expenses): | ||||||||||||
| Interest expense | (403,231 | ) | (430,639 | ) | (375,445 | ) | ||||||
| Other income (expenses), net | 717,759 | 586,428 | (5,461 | ) | ||||||||
| Total other income (expenses), net | 314,528 | 155,789 | (380,906 | ) | ||||||||
| (Loss) income before provision for income taxes | (1,041,828 | ) | (1,561,607 | ) | 866,731 | |||||||
| Income tax (benefit) expense | (26,249 | ) | (187,720 | ) | 252,611 | |||||||
| Net (loss) income | (1,015,579 | ) | (1,373,887 | ) | 614,120 | |||||||
| Less: net loss attributable to non-controlling interests | (2,004 | ) | (2,746 | ) | (2,698 | ) | ||||||
| Net (loss) income attributable to ordinary shareholders | $ | (1,013,575 | ) | $ | (1,371,141 | ) | $ | 616,818 | ||||
| Comprehensive (loss) income | ||||||||||||
| Net (loss) income | $ | (1,015,579 | ) | $ | (1,373,887 | ) | 614,120 | |||||
| Foreign currency translation (loss) gain | (19,923 | ) | 79,844 | (417,717 | ) | |||||||
| Total comprehensive (loss) income | (1,035,502 | ) | (1,294,043 | ) | 196,403 | |||||||
| Comprehensive (loss) income attributable to non-controlling interests | (1,730 | ) | (3,558 | ) | 1,677 | |||||||
| Comprehensive (loss) income attributable to ordinary shareholders | $ | (1,033,772 | ) | $ | (1,290,485 | ) | $ | 194,726 | ||||
| (Loss) earnings per ordinary share | ||||||||||||
| – Basic and diluted | $ | (0.06 | ) | $ | (0.08 | ) | $ | 0.04 | ||||
| Weighted average number of ordinary shares outstanding | ||||||||||||
| – Basic and diluted | 18,183,518 | 17,000,000 | 17,000,000 | |||||||||
| LI BANG INTERNATIONAL CORPORATION INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| For the Years Ended June 30, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net (loss) income | $ | (1,015,579 | ) | $ | (1,373,887 | ) | $ | 614,120 | ||||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 426,992 | 460,720 | 498,650 | |||||||||
| (Gain) loss on disposal of property and equipment | (15,400 | ) | (14,839 | ) | 547 | |||||||
| Provision for expected credit losses | 995,725 | 1,084,649 | 1,213,483 | |||||||||
| Deferred tax benefit | (159,153 | ) | (93,655 | ) | (223,230 | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (738,705 | ) | (391,851 | ) | (5,049,769 | ) | ||||||
| Notes receivable | 142,013 | (172,208 | ) | 14,694 | ||||||||
| Advances to suppliers | 65,524 | (201,638 | ) | (299,526 | ) | |||||||
| Inventories | 228,794 | (182,119 | ) | 460,389 | ||||||||
| Due from related parties | - | - | 297,666 | |||||||||
| Prepaid expenses and other current assets | (181,905 | ) | 35,262 | (195,641 | ) | |||||||
| Accounts payable | (598,063 | ) | 273,650 | 1,054,719 | ||||||||
| Advances from customers | (95,754 | ) | (16,578 | ) | 294,836 | |||||||
| Taxes payable | 6,787 | (102,435 | ) | 639,275 | ||||||||
| Due to related parties | 79,486 | (26,077 | ) | 85,253 | ||||||||
| Other payables and other current liabilities | (67,429 | ) | 74,527 | (39,880 | ) | |||||||
| Net cash used in operating activities | (926,667 | ) | (646,479 | ) | (634,414 | ) | ||||||
| Cash flows from investing activities: | ||||||||||||
| Loans to third parties | (4,515,050 | ) | - | - | ||||||||
| Purchases of property and equipment | (273,823 | ) | (104,523 | ) | (175,962 | ) | ||||||
| Proceeds from disposal of property and equipment | 25,556 | 17,334 | 144 | |||||||||
| Refund of the land use right payment | 1,396,668 | - | - | |||||||||
| Purchases of fixed deposits | - | - | (2,737,161 | ) | ||||||||
| Net cash used in investing activities | (3,366,649 | ) | (87,189 | ) | (2,912,979 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from loans | 8,393,972 | 7,969,044 | 14,461,012 | |||||||||
| Repayments of loans | (8,435,872 | ) | (7,422,258 | ) | (10,425,427 | ) | ||||||
| Payment of offering costs | (188,119 | ) | (127,300 | ) | (91,238 | ) | ||||||
| Net proceeds from initial public offering | 5,368,773 | - | - | |||||||||
| Net cash provided by financing activities | 5,138,754 | 419,486 | 3,944,347 | |||||||||
| Effect of foreign exchange rate on cash | (80 | ) | 7,262 | (27,857 | ) | |||||||
| Net increase (decrease) in cash and restricted cash | 845,358 | (306,920 | ) | 369,097 | ||||||||
| Cash and restricted cash at the beginning of the year | 234,207 | 541,127 | 172,030 | |||||||||
| Cash and restricted cash at the end of the year | $ | 1,079,565 | $ | 234,207 | $ | 541,127 | ||||||
| Reconciliation of cash and restricted cash | ||||||||||||
| Cash | $ | 933,826 | $ | 153,914 | $ | 76,019 | ||||||
| Restricted cash | 145,739 | 80,293 | 465,108 | |||||||||
| Total cash and restricted cash shown in the statements of cash flows | $ | 1,079,565 | $ | 234,207 | $ | 541,127 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Interest paid | $ | 400,617 | $ | 425,736 | $ | 375,286 | ||||||
| Income taxes paid | $ | 53,646 | $ | 59 | $ | 167,010 | ||||||
| Non-cash transactions: | ||||||||||||
| Reclassification of deferred offering cost | $ | 585,755 | $ | - | $ | - | ||||||
