1. LBGJ's revenue rose 27% to $4.7M due to project sales. 2. Gross profit increased by 37% to $841K, improving margins. 3. Net loss reduced to $1.1M, down from $1.5M year-over-year. 4. Operating expenses fell 7.6%, indicating cost management. 5. Cash balance improved significantly to $1.1M from $154K.
The significant revenue and profit increases suggest improved financial health. Historical examples show companies improving profitability often see stock price appreciation.
The improvement in revenue and reduction in net loss matter significantly to LBGJ investors, enhancing trust.
Positive earnings results usually lead to immediate investor interest. The current data supports a possible quick market reaction.
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.
| For the Six Months Ended December 31 | 2024 | 2023 | Variance |
|---|---|---|---|
| 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%) |
| Total operating expenses | 2,023,363 (43.0%) | 2,190,512 (58.8%) | (167,149) (7.6%) |
| Net loss | (1,125,915) (24.1%) | (1,463,048) (39.3%) | 337,133 (23.0%) |
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.
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.
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.
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 decrease in brand charge revenue, government subsidies, and non-project installation and maintenance revenue.
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.
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. 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. For more information, please visit the company's website at Li Bang International website.
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 and future events. 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.
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]