20-F: Leishen Energy Holding Co. Ltd. Reports Fiscal Year 2024 Results

Leishen Energy Holding Co., Ltd. releases its annual report on Form 20-F, detailing financial performance and key business activities for the fiscal year ended September 30, 2024.

Summary

• Leishen Energy Holding Co., Ltd. reported total revenues of $69.07 million for the fiscal year ended September 30, 2024, a decrease of 5.5% compared to $73.08 million in 2023.
• The cost of revenues decreased slightly to $53.04 million from $54.71 million in the previous year.
• Gross profit decreased by 12.8% to $16.03 million.
• Net income attributable to Leishen Energy Holding Co., Ltd. was $8.10 million, a decrease of 31.7% from $11.86 million in the prior year.
• Basic and diluted earnings per ordinary share were $0.52, compared to $0.77 in the previous year.
• The company highlighted its reliance on a small number of customers, with the top three accounting for 41.1% of total operating revenue in 2024.
• The company is subject to various risks associated with operating in China, including regulatory changes and currency conversion restrictions.
• The company has 72 registered patents, 5 registered software copyrights, 5 registered trademarks and 1 registered domain name.

Sentiment

Score: 5

Explanation: The document presents a mixed picture. While the company has some positive aspects, such as its focus on research and development and its expansion into international markets, it also faces several challenges, including its reliance on a small number of customers and the cyclical nature of the oil and natural gas industry.

Positives

• The company has a strong focus on research and development to remain competitive.
• The company is expanding its market to the Middle East and other countries.
• The company has a professional and systematic design, production, maintenance and operation team.
• The company has a good relationship with some of the world's top manufacturers.
• The company has a strong focus on the engineering technology service sector.

Negatives

• The company is reliant on a small number of customers who contribute a majority of its revenue.
• The cyclical nature of the oil and natural gas industry may cause the company's operating results to fluctuate.
• The company may not be able to prevent others from unauthorized use of its intellectual property.
• The company may be accused of infringing the intellectual property rights of others.
• The company's software products may contain integration challenges, design defects or software errors that could be difficult to detect and correct.

Risks

• Changes in China's economic, political, or social conditions or government policies could have a material adverse effect on the company's business and operations.
• The Chinese government has significant authority to exert influence on the conduct of the company's business and may intervene or influence its operations at any time.
• Uncertainties with respect to the enforcement of laws, and changes in laws and regulations in China with little advance notice, could materially and adversely affect the company.
• The newly enacted HFCAA and AHFCAA both call for additional and more stringent criteria to be applied to restrictive market companies upon assessing the qualification of their auditors.
• In light of recent events indicating greater oversight by the Cyberspace Administration of China (the CAC) over data security, the company may be subject to a variety of PRC laws and other obligations regarding cybersecurity and data protection.

Future Outlook

The company intends to continue to expand its business in the clean-energy sector and international markets.

Industry Context

The company operates in the energy sector, which is subject to cyclical fluctuations and regulatory changes. The company is also affected by the ongoing military action between Russia and Ukraine.

Corporate Governance

Related Party Transactions

• The company had several related party transactions, including equipment sales, LNG/CNG sales, and factory leases.
• The company had significant amounts due to and from related parties.

Stakeholder Impact

• The company's financial performance may impact shareholders, employees, customers, and suppliers.
• The company's ability to pay dividends is dependent on the performance of its subsidiaries.

Next Steps

• The company intends to continue to expand its business in the clean-energy sector and international markets.
• The company will continue to bring in new customers and new contract orders to expand its market share.

Key Dates

Keywords

Energy, Oil and Gas, Clean Energy, Financial Results, Annual Report, Leishen Energy, China