LBGJ · Li Bang International Corporation Inc. Ordinary Shares

Li Bang International Corporation Inc. delivered improved financial performance for the six months ended December 31, 2025, with total revenues surging 33.2% year-over-year to $6.3 million, almost entirely driven by a 39.9% increase in project revenues to $6.2 million. This growth stemmed from a significantly higher average project price of $194,666, up $86,082 from the prior year, reflecting larger-scale kitchen projects for hospitals, hotels, and state-owned enterprises. Retail revenues plummeted 79.3% to just 0.9% of total due to fewer orders. Gross profit more than doubled to $1.6 million, with margins expanding 740 basis points to 25.2%, primarily from elevated project pricing and reduced costs for key materials like stainless steel, though retail sales incurred a small loss from higher labor and manufacturing expenses. Operating expenses rose 18.6% but as a lower percentage of revenue, with selling expenses dropping 31.9% due to management directly handling three high-revenue projects (69% of project sales). G&A increased 14.2% from higher consulting and salaries post-IPO, while provisions for expected credit losses ballooned 223.7% amid PRC economic slowdown delaying collections—though management deems allowances sufficient given reliable customers. Net loss attributable to ordinary shareholders halved to $582K, aided by lower interest expense, higher other income, and tax benefits. Balance sheet shows current ratio stable at 1.15, with equity jumping to $37.2M post-financing. Cash used in operations at $1.5M contrasted heavy investing outflows of $29.4M, offset by $30.6M financing inflows including $7.72M from 1.7M share sales under a $20M ATM program launched February 2026. Management affirms liquidity suffices through December 2026, emphasizing receivables collection and prudent project selection amid macro uncertainties.