Core Viewpoint - Li Bang International Corporation Inc. reported a significant decline in revenue for fiscal year 2024, attributed to a challenging economic environment and strategic shifts towards high-end hotel kitchen projects [2][3][4]. Financial Performance - Total revenue for fiscal year 2024 was $10.8 million, a decrease of 22.9% from $14.0 million in fiscal year 2023 [3]. - Revenue from project sales was $10.4 million, down 23.2% from $13.6 million in the previous year, primarily due to the slowdown of China's economy and a shift in project mix [4]. - Retail sales revenue decreased by 13.1% to $367,976 from $423,527 in fiscal year 2023, also impacted by the economic slowdown [4]. Cost and Profitability - Cost of revenue was $8.1 million, a slight decrease of 1.9% from $8.2 million in fiscal year 2023, aligning with the revenue decline [5]. - Gross profit fell to $2.7 million, down 53.0% from $5.8 million, resulting in a profit margin of 25.1%, which is a decrease of 16.0% from 41.1% in the previous year [6]. Operating Expenses - Total operating expenses were $4.4 million, a decrease of 1.9% from $4.5 million in fiscal year 2023 [7]. - Selling expenses increased by 27.8% to $831,252, driven by higher compensation for sales personnel and market expansion costs [8]. - General and administrative expenses decreased by 5.2% to $2.5 million, mainly due to reduced employee salaries and depreciation expenses [8]. Net Income - The company reported a net loss of $1.4 million for fiscal year 2024, compared to a net income of $0.6 million in fiscal year 2023 [10]. - Basic and diluted loss per share was $0.08, compared to earnings per share of $0.04 in the previous year [10]. Financial Condition - As of June 30, 2024, the company had cash of $153,914, an increase from $76,019 as of June 30, 2023 [11]. - Net cash used in operating activities was $646,479, slightly higher than $634,414 in fiscal year 2023 [11]. - The company completed its initial public offering on October 23, 2024, raising gross proceeds of $6.08 million [12]. Recent Developments - The company is focusing on strategic investments in plant construction, equipment procurement, and innovation to enhance product quality and operational efficiency [2]. - Li Bang aims to strengthen its market position and deliver sustainable value to shareholders through ongoing research and development efforts [2].
Li Bang International Corporation Inc. Reports Financial Results for Fiscal Year 2024