Liquidity is severely constrained by poor earnings quality, demonstrated by a 2025Q4 OCF/NI ratio of -10.63 and a significant $2.3M outflow from working capital.
| Cash from Operations | -926.67K | -646.48K | -634.41K | -410.27K | 539.77K | 1.23M |
| Operating CF Margin % | -8.34% | -5.99% | -4.53% | -3.04% | 3.39% | 12.34% |
| Operating CF Growth % | -43.34% | -1.9% | -54.63% | -176.01% | -56.21% | - |
| Net Income | -1.02M | -1.37M | 616.82K | 845.1K | 2.66M | 1.23M |
| Depreciation & Amortization | 426.99K | 460.72K | 498.65K | 541.79K | 535.29K | 448.13K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -159.15K | -93.66K | -223.23K | -214.53K | -11.71K | -3.91K |
| Other Non-Cash Items | 980.33K | 1.07M | 1.21M | 378.29K | 103.74K | 35.97K |
| Working Capital Changes | -1.16M | -709.47K | -2.74M | -1.96M | -2.75M | -475.37K |
| Change in Receivables | -596.69K | -564.06K | -4.74M | -4.11M | -1.75M | -788.52K |
| Change in Inventory | 228.79K | -182.12K | 460.39K | 1.79M | 1.28M | -1.47M |
| Change in Payables | -598.06K | 273.65K | 1.05M | 775.01K | -982.41K | -513.46K |
| Cash from Investing | -3.37M | -87.19K | -2.91M | -1.63M | -212.81K | -486.89K |
| Capital Expenditures | -273.82K | -104.52K | -175.96K | -84.9K | -212.98K | -514.63K |
| CapEx % of Revenue | 2.47% | 0.97% | 1.26% | 0.63% | 1.34% | 5.15% |
| Acquisitions | 0 | 0 | 0 | 0 | 176 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -3.09M | 17.33K | 144 | -1.55M | 0 | 27.73K |
| Cash from Financing | 5.14M | 419.49K | 3.94M | 2.12M | -911.82K | -478.47K |
| Debt Issued (Net) | -41.9K | 546.79K | 4.04M | 3.3M | -769.47K | 17.27K |
| Equity Issued (Net) | 5.37M | -127.3K | -91.24K | -255.9K | -142.35K | 2.85K |
| Dividends Paid | 0 | 0 | 0 | -929.21K | 0 | -498.59K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -188.12K | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 845.36K | -306.92K | 369.1K | 67.19K | -538.33K | 253.87K |
| Free Cash Flow | -1.2M | -751K | -810.38K | -2.04M | 326.79K | 718.11K |
| FCF Margin % | -10.81% | -6.96% | -5.79% | -15.16% | 2.05% | 7.19% |
| FCF Growth % | -59.85% | 7.33% | 60.35% | -725.43% | -54.49% | - |
| FCF per Share | -6.40 | -4.06 | -3.68 | -9.29 | 1.49 | 3.26 |
| FCF Conversion (FCF/Net Income) | 0.91x | 0.47x | -1.03x | -0.48x | 0.20x | 0.99x |
| Interest Paid | 400.62K | 425.74K | 375.29K | 291.9K | 203.54K | 217.18K |
| Taxes Paid | 53.65K | 59 | 167.01K | 983 | 120.41K | 97.94K |
Project-based revenue volatility
According to recent financial disclosures, LBGJ exhibits a persistent disconnect between net income and operating cash flow, evidenced by a 2025Q4 OCF/NI ratio of -10.63, which suggests that reported profits are not being converted into actual liquidity due to significant accrual-based accounting adjustments.
The extreme volatility in the OCF/NI ratio indicates that net income is a poor proxy for the company's underlying cash generation capabilities. Investors should monitor whether this divergence stems from aggressive revenue recognition policies or simply the timing of project-based cash collections.
As reported in quarterly filings, LBGJ's free cash flow trajectory is highly unstable, swinging from a positive $216.2K in 2025Q2 to a negative $1.4M in 2025Q4, reflecting the inherent difficulty in maintaining consistent cash generation within a project-dependent industrial manufacturing business model.
The inability to sustain positive free cash flow suggests that the company's current operational scale is insufficient to cover both its fixed costs and necessary capital expenditures. This pattern implies that the business may remain reliant on external financing or existing cash reserves to fund ongoing operations.
Based on the provided cash flow statements, working capital fluctuations are the primary driver of cash volatility, with a significant $2.3M outflow in 2025Q4 alone, suggesting that the company struggles to manage its receivables and inventory cycles effectively during periods of slowing demand.
The recurring negative working capital changes indicate that the company is likely extending credit to customers to secure projects, which ties up cash and increases credit risk. This dynamic appears to be a structural weakness that prevents the company from achieving a self-sustaining cash flow profile.
Analysis of recent SEC filings reveals that LBGJ's capital expenditure, which reached 3.6% of revenue in 2025Q4, appears disproportionate to its current growth rate, suggesting that the company is investing in capacity that is not yet yielding a commensurate return on invested capital.
While maintenance capex is necessary for industrial fabrication, the current level of investment appears to be a drag on cash flow given the lack of profitability. It remains unclear whether these expenditures are intended for modernization or if they represent inefficient spending on underutilized manufacturing assets.
Quick answers to the most common questions about buying LBGJ stock.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) generated $-0.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) reported negative free cash flow of $1.2M in 2025, indicating capital requirements exceeded cash from operations.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.