Leishen Energy Holding Co., Ltd. Announces Fiscal Year 2024 Financial Results Highlighting Strong Operating Cash Flow and Stable Gross Margins

BEIJING, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Leishen Energy Holding Co., Ltd. ("Leishen Energy"), a leading provider of clean-energy equipment and integrated solutions for the oil and gas industry, today announced its fiscal year 2024 financial results, showcasing robust performance driven by effective cost management, strategic market expansion, and growing demand for the Company's innovative product offerings.

Fiscal Year 2024 Financial Highlights

   -- Operating Cash Flow Grows 243%, rising to USD $15.07 million in fiscal 
      year 2024, up from USD $4.39 million in fiscal year 2023, marking a more 
      than 243% year-over-year increase. This sharp rise was driven by robust 
      accounts receivable collections, efficiency gains, and disciplined costs. 
 
   -- Total Revenues were USD $69.07 million, compared to USD $73.08 million in 
      fiscal year 2023, representing a 5.5% decrease year-over-year. The 
      decline was primarily attributable to lower sales of clean-energy 
      equipment in the domestic market, partially offset by growth in the 
      Company's new energy business. 
 
   -- Gross Profit totaled USD $16.03 million, down from USD $18.38 million in 
      the prior year, reflecting a gross margin of 23.2% (25.1% in fiscal year 
      2023). The margin decrease was primarily driven by lower margins in oil 
      and gas engineering technical services. 
 
   -- Net Income was USD $7.99 million, compared to USD $11.63 million in 
      fiscal year 2023, reflecting a 31.3% decrease. 
 
   -- Operating Expenses rose from USD $6.49 million in fiscal year 2023 to USD 
      $8.48 million in fiscal year 2024, largely due to higher selling and 
      marketing costs associated with international market expansion, as well 
      as increased research and development. 
 
   -- Net Income Attributable to Leishen Energy was USD $8.10 million, 
      reflecting a decrease of USD $3.76 million year-over-year. 

Segment Performance

   1. Clean-Energy Equipment 
 
          -- Revenue declined by 14.6% year-over-year, to USD $33.82 million, 
             mainly due to reduced domestic orders amid tighter market 
             competition and lower selling prices for certain common products. 
             The segment contributed 49.0% of total revenues. 
 
   2. Digitalization and Integration Equipment 
 
          -- Revenue was USD $3.08 million, reflecting a modest year-over-year 
             decline. Gross margin improved to 18.2% as the Company continued 
             to streamline costs and enhance efficiency. 
 
   3. New Energy Sales 
 
          -- Revenue grew 11.3%, reaching USD $25.82 million, driven by 
             increased demand for natural gas. The Company added a major new 
             client in fiscal year 2024, contributing over USD $1.5 million in 
             revenue. 
 
   4. Oil and Gas Engineering Technical Services 
 
          -- Revenue was USD $6.35 million, representing a decrease of 8.4% 
             from the prior year, due to intensified pricing pressure and 
             customers adopting lower-cost operating models. Despite increased 
             competition, the Company continues to develop new projects at home 
             and abroad. 

Management Commentary

"We are pleased to report that while Leishen Energy experienced year-over-year declines in revenue and profitability in fiscal 2024, we have strengthened our position in new energy sales and increased our presence in international markets," said Hongliang Li, Chief Executive Officer of Leishen Energy. "The successful expansion of our customer base--particularly in overseas regions--and ongoing investments in research and development underscore our commitment to delivering innovative, high-performance energy solutions."

Zhiping Yu, Chief Financial Officer, added: "As we navigate near-term market pressures, we remain focused on cost optimization and strategic capital allocation. We believe our prudent balance sheet management, coupled with targeted investments in key growth areas, will help us enhance our financial performance and maintain sustainable returns for our shareholders in the years to come."

Business Outlook

The Company aims to capitalize on the following growth drivers and strategic initiatives in fiscal year 2025 and beyond:

   -- International Expansion: Continued pursuit of overseas projects in 
      Central Asia, Southeast Asia, and the Middle East, including joint 
      reserve warehouses of spare parts with major oilfields and new power 
      plant operation and maintenance projects in Africa. 
 
   -- Technology and Innovation: Further investment in research and development 
      to strengthen patented technologies, with 72 patents now held across 
      clean-energy equipment, oil and gas engineering technical services, and 
      new energy production and operation. 
 
   -- Customer Diversification: Ongoing efforts to deepen relationships with 
      long-standing domestic clients while expanding the Company's 
      international customer pipeline, particularly in digitalization and 
      integration equipment sales. 
 
   -- Operational Efficiencies: Enhancement of cost-control measures, rigorous 
      supply chain management, and new supplier partnerships to mitigate 
      inflationary pressures and disruptions. 
 
                          LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES 
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE 
                                                INCOME 
                               2024                        2023                     Variance 
                      ----------------------      ----------------------      -------------------- 
                                      % of                        % of 
                         Amount      revenue         Amount      revenue        Amount        % 
                      ------------   -------      ------------   -------      -----------   ------ 
Revenues              $ 69,073,374     100.0%     $ 73,084,448     100.0%     $(4,011,074)    (5.5)% 
Cost of revenues       (53,038,855)    (76.8)%     (54,705,407)    (74.9)%      1,666,552     (3.0)% 
                       -----------   -------       -----------   -------       ----------   ------ 
Gross profit            16,034,519      23.2%       18,379,041      25.1%      (2,344,522)   (12.8)% 
                       -----------   -------       -----------   -------       ----------   ------ 
 
Operating expenses: 
   Selling and 
    marketing            2,053,194       3.0%          775,957       1.1%       1,277,237    164.6% 
   General and 
    administrative       5,979,890       8.7%        5,553,912       7.6%         425,978      7.7% 
   Research and 
    development            449,542       0.7%          158,657       0.2%         290,885    183.3% 
                       -----------   -------       -----------   -------       ----------   ------ 
   Total operating 
    expenses             8,482,626      12.4%        6,488,526       8.9%       1,994,100     30.7% 
                       -----------   -------       -----------   -------       ----------   ------ 
 
Income from 
 operations              7,551,893      10.8%       11,890,515      16.2%      (4,338,622)   (36.5)% 
                       -----------   -------       -----------   -------       ----------   ------ 
 
Other income 
(loss): 
   Interest expense        (57,018)     (0.1)%         (67,964)     (0.1)%         10,946    (16.1)% 
   Exchange (loss) 
    gains                  (18,107)      0.0%          280,538       0.4%        (298,645)  (106.5)% 
   Gain from equity 
    investment              81,150       0.1%           80,616      0.10%             534      0.7% 
   Net investment 
    income                 445,271       0.6%          108,671       0.1%         336,600    309.7% 
   Other expenses, 
    net                    171,845       0.2%           71,850       0.0%          99,995    139.2% 
                       -----------   -------       -----------   -------       ----------   ------ 
   Total other 
    income, net            623,141       0.8%          473,711       0.6%         149,430     31.5% 
                       -----------   -------       -----------   -------       ----------   ------ 
 
Income before income 
 taxes                   8,175,034      11.6%       12,364,226      16.8%      (4,189,192)   (33.9)% 
 
Provision for income 
 taxes                     184,818       0.3%          729,506       1.0%        (544,688)   (74.7)% 
                       -----------   -------       -----------   -------       ----------   ------ 
 
Net income               7,990,216      11.3%       11,634,720      15.8%      (3,644,504)   (31.3)% 
                       -----------   -------       -----------   -------       ----------   ------ 
   Net loss 
    attributable to 
    non-controlling 
    interests             (105,655)     (0.2)%        (223,870)     (0.3)%        118,215    (52.8)% 
                       -----------   -------       -----------   -------       ----------   ------ 
Net income 
 attributable to 
 Leishen Energy 
 Holding Co., Ltd.    $  8,095,871      11.5%     $ 11,858,590      16.1%     $(3,762,719)   (31.7)% 
                       ===========   =======       ===========   =======       ==========   ====== 
 
 
          LEISHEN ENERGY HOLDING CO., LTD. AND SUBSIDIARIES 
 
                     CONSOLIDATED BALANCE SHEETS 
 
                                              As of September 30, 
                                              2024           2023 
                                              US$            US$ 
ASSETS 
Current Assets: 
     Cash                                 $ 5,811,798   $ 4,567,608 
     Restricted cash                        1,489,216             - 
     Short-term investments                17,850,648     7,234,607 

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February 18, 2025 09:30 ET (14:30 GMT)