Li Bang International Corporation Inc. (NASDAQ:LBGJ) said Tuesday that its subsidiary, Jiangsu Li Bang Intelligent Technology Co., Ltd., has signed an agreement to acquire a 51% controlling stake in Suzhou Yufengyuan Food Distribution Co., Ltd., a China-based catering services provider.
The deal, executed on February 25, 2026, is expected to be finalized by May 30, 2026, pending regulatory registration updates and other customary closing requirements, the company said in a press release. The transaction comes as Li Bang works to address profitability pressures, having reported a loss of $0.06 per share over the twelve months through the fourth quarter of 2025, while maintaining a gross profit margin of roughly 29%.
Yufengyuan operates a centralized kitchen facility spanning 4,500 square meters and supplies meals to institutional clients such as schools, government agencies, and corporate organizations, producing approximately 200,000 meals each day.
The acquisition price will be determined following an independent audit and valuation of Yufengyuan’s total equity and will be paid in two installments. Completion of the final payment and share registration is targeted for May 30, 2026.
Li Bang expects the acquisition to add around RMB150 million (about $22 million) in consolidated revenue during the 2026 calendar year. By the end of June 2026, Yufengyuan’s active contract value is projected to reach roughly RMB90 million ($13 million). Based on current projections, the additional revenue would nearly double Li Bang’s existing revenue base of $11.1 million recorded over the past twelve months.
The transaction marks an expansion of Li Bang’s business model beyond stainless-steel commercial kitchen equipment manufacturing into catering and food service operations. The company intends to combine its equipment offerings with Yufengyuan’s staffing and operational services, including the provision of professional chefs and kitchen personnel.
Founded in 2002 and headquartered in Jiangsu province, Yufengyuan specializes in institutional catering services. Li Bang International focuses on the design, manufacturing, and sale of stainless-steel commercial kitchen equipment in China under its “Li Bang” brand.
In separate developments, Li Bang International recently announced the outcome of its annual general meeting, where shareholders approved all proposed resolutions. Feng Huang, Funa Li, Lianyong Song, Liqi Xi, and Libing Yan were re-elected as directors with strong shareholder backing and no opposing votes recorded. The company also disclosed a private placement agreement involving 120 million Class A ordinary shares priced at $0.25 per share, expected to close around December 22 subject to customary conditions. Further details of the securities purchase agreement were included in an exhibit attached to the company’s regulatory filing.