Revenue growth remains highly inconsistent, characterized by a 9.6% year-over-year decline in 2025Q4 and a failure to achieve positive operating leverage, as evidenced by a -2.7% operating margin.
| Sales/Revenue | 11.11M | 10.79M | 14M | 13.48M | 15.9M | 9.99M |
| Revenue Growth % | 2.89% | -22.92% | 3.9% | -15.24% | 59.13% | - |
| Cost of Goods Sold | 7.86M | 8.09M | 8.25M | 8.62M | 9.31M | 5.81M |
| COGS % of Revenue | 70.75% | 74.92% | 58.89% | 63.98% | 58.55% | 58.14% |
| Gross Profit | 3.25M | 2.71M | 5.76M | 4.86M | 6.59M | 4.18M |
| Gross Margin % | 29.25% | 25.08% | 41.11% | 36.02% | 41.45% | 41.86% |
| Gross Profit Growth % | 19.97% | -52.98% | 18.59% | -26.35% | 57.59% | - |
| Operating Expenses | 4.6M | 4.43M | 4.51M | 3.52M | 2.95M | 2.45M |
| OpEx % of Revenue | 41.46% | 41% | 32.21% | 26.15% | 18.58% | 24.48% |
| Selling, General & Admin | 3.61M | 3.34M | 3.3M | 3.15M | 2.86M | 2.41M |
| SG&A % of Revenue | 32.5% | 30.95% | 23.54% | 23.34% | 17.97% | 24.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 995.73K | 1.08M | 1.21M | 378.29K | 97.06K | 37.25K |
| Operating Income | -1.36M | -1.72M | 1.25M | 1.33M | 3.64M | 1.74M |
| Operating Margin % | -12.21% | -15.91% | 8.91% | 9.87% | 22.88% | 17.38% |
| Operating Income Growth % | 21.02% | -237.65% | -6.24% | -63.42% | 109.47% | - |
| EBITDA | -929.36K | -1.26M | 1.75M | 1.87M | 4.17M | 2.18M |
| EBITDA Margin % | -8.37% | -11.64% | 12.47% | 13.89% | 26.24% | 21.86% |
| EBITDA Growth % | 26.05% | -171.96% | -6.74% | -55.13% | 91.01% | - |
| D&A (Non-Cash Add-back) | 426.99K | 460.72K | 498.65K | 541.79K | 535.29K | 448.13K |
| EBIT | -638.6K | -1.13M | 1.24M | 1.73M | 3.78M | 1.91M |
| Net Interest Income | -166.87K | -332.14K | -375.44K | -291.9K | -203.54K | -217.18K |
| Interest Income | 236.36K | 98.5K | 0 | 0 | 0 | 0 |
| Interest Expense | 403.23K | 430.64K | 375.44K | 291.9K | 203.54K | 217.18K |
| Other Income/Expense | 314.53K | 155.79K | -380.91K | 107.55K | -60.51K | -43.08K |
| Pretax Income | -1.04M | -1.56M | 866.73K | 1.44M | 3.58M | 1.69M |
| Pretax Margin % | -9.38% | -14.47% | 6.19% | 10.67% | 22.5% | 16.95% |
| Income Tax | -26.25K | -187.72K | 252.61K | 593.12K | 918.98K | 465.76K |
| Effective Tax Rate % | 2.52% | 12.02% | 29.15% | 41.24% | 25.69% | 27.5% |
| Net Income | -1.01M | -1.37M | 616.82K | 848.12K | 2.66M | 1.25M |
| Net Margin % | -9.13% | -12.7% | 4.4% | 6.29% | 16.74% | 12.46% |
| Net Income Growth % | 26.08% | -322.29% | -27.27% | -68.14% | 113.77% | - |
| Net Income (Continuing) | -1.02M | -1.37M | 614.12K | 845.1K | 2.66M | 1.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -63.58K | -61.85K | -58.29K | -59.97K | -59.29K | -50.51K |
| EPS (Diluted) | -5.41 | -7.40 | 2.80 | 3.86 | 12.00 | 5.66 |
| EPS Growth % | 26.89% | -364.29% | -27.46% | -67.83% | 112.01% | - |
| EPS (Basic) | -5.41 | -7.40 | 3.33 | 4.58 | 12.00 | 5.66 |
| Diluted Shares Outstanding | 187.48K | 185.2K | 220K | 220K | 220K | 220K |
| Basic Shares Outstanding | 187.48K | 185.2K | 185.2K | 185.2K | 220K | 220K |
| Dividend Payout Ratio | - | - | - | 109.56% | - | 40.03% |
Project-based revenue volatility
As reported in recent financial filings, LBGJ's revenue trajectory remains highly inconsistent, with a 9.6% year-over-year decline in 2025Q4 following a 26.5% surge in 2025Q2, highlighting the inherent instability of a project-based business model heavily reliant on the cyclical Chinese hospitality and commercial real estate sectors.
The lack of recurring revenue streams forces the company to rely on lumpy, large-scale kitchen installations that are susceptible to timing delays and macroeconomic headwinds. This volatility suggests that the firm struggles to maintain a predictable order book, making long-term revenue forecasting difficult for investors.
Based on the company's reported figures, gross margins have fluctuated significantly from a high of 45.8% in 2021Q4 to a low of 16.4% in 2024Q2, indicating that LBGJ lacks the pricing power necessary to offset rising input costs or competitive pressures in the domestic market.
The wide variance in gross profitability suggests that the company is highly sensitive to stainless steel price volatility and may be forced to engage in aggressive price competition to secure project wins. This inconsistency in margin performance implies that the firm's competitive moat is insufficient to protect its bottom line from external cost shocks.
According to the income statement data, LBGJ has failed to achieve positive operating leverage, as evidenced by the negative operating margin of 2.7% in 2025Q4, which suggests that fixed administrative costs continue to outpace the company's ability to scale its core manufacturing operations effectively.
The persistent inability to convert gross profit into operating income indicates that the company's overhead structure is too heavy for its current revenue base. Investors should monitor whether management can rationalize these fixed costs, as the current trajectory suggests that the business model is not yet optimized for profitability.
Analysis of the provided financial statements suggests that LBGJ's reliance on project-based revenue, combined with negative operating margins, warrants significant caution regarding the company's long-term viability as a standalone entity in the highly competitive Chinese industrial machinery landscape.
Short-sellers would likely focus on the disconnect between the company's historical longevity and its recent inability to generate consistent net income. The lack of a service-oriented tail to the business model leaves the firm uniquely vulnerable to prolonged downturns in commercial real estate development.
Quick answers to the most common questions about buying LBGJ stock.
For fiscal year 2025, Li Bang International Corporation Inc. Ordinary Shares (LBGJ) reported total revenue of $11.1M. This represents a 11.1% increase compared to $10.0M in 2020.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) reported a net loss of $1.0M for the fiscal year ending 2025.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) reported an operating income of $-1.4M, resulting in an operating profit margin of -12.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Li Bang International Corporation Inc. Ordinary Shares (LBGJ) generated $3.2M in gross profit for the year, representing a gross profit margin of 29.2%. This demonstrates the company's core pricing power and production efficiency.