Recent developments include the company's receipt of a Nasdaq notice regarding annual meeting requirements and prior announcements related to its IPO, additional share offerings, and fiscal year financial results.

• Leishen Energy Holding Co., Ltd. announced receipt of a Nasdaq notice regarding annual meeting requirements in January 2026 [N1].
• The company completed its initial public offering on Nasdaq in December 2024, raising $5.5 million gross proceeds [N4].
• In January 2025, Leishen Energy raised an additional $6.1 million through a share offering following the IPO [N8].
• The company reported fiscal year 2024 financial results highlighting strategic market expansion efforts in February 2025 [N8].

Leishen Energy's diversified business segments in clean-energy equipment, new energy production, and digitalization position it to benefit from growing energy demand and government policies favoring clean and new energy. Its intellectual property portfolio and ongoing international expansion efforts could support revenue diversification and growth. The company's solid liquidity and recent capital raises provide financial flexibility to pursue strategic initiatives and operational improvements.

The company experienced significant revenue declines across all segments in fiscal 2025, reflecting economic downturn and intense market competition leading to lower prices and contract expirations. Its profitability and gross margins have contracted, and operating expenses including credit loss provisions have increased. The company faces risks related to PRC tax residency status, which could impose additional withholding taxes on dividends and gains. Dependence on PRC subsidiaries for dividends and regulatory restrictions on foreign exchange pose operational risks. Competitive pressures and the need to develop new customers and markets add execution challenges.

Leishen Energy's moat is supported by its extensive portfolio of intellectual property, including over 100 patents and multiple trademarks and software copyrights, which underpin its clean-energy equipment and integrated solutions. Its alignment with Chinese government strategic energy policies and its diversified business segments in clean energy and oil and gas services provide a competitive position. The company's international expansion efforts and established subsidiaries in multiple jurisdictions contribute to its operational reach. However, the company faces competitive pressures in domestic markets and regulatory risks related to tax and foreign exchange controls.

• PRC Tax Residency and Withholding Risks: Uncertainty regarding the company's classification as a PRC resident enterprise could result in withholding taxes on dividends and gains for shareholders, potentially affecting returns and compliance costs.
• Market and Competitive Pressures: Declining revenues and pricing pressures in core segments reflect intense competition and economic downturn, which may continue to impact profitability and market share.
• Regulatory and Foreign Exchange Controls: The company's operations and capital flows are subject to PRC foreign exchange regulations and restrictions on dividend payments from subsidiaries, which may limit financial flexibility.
• Customer Concentration and Contract Renewals: Expiration of major sales agreements and reliance on a limited number of large clients pose risks to revenue stability and growth prospects.
• Credit Risk and Receivables: The company has recognized increased provisions for expected credit losses, indicating risks related to collectability of accounts receivable and advances to suppliers.

• Leishen Energy Holding Co., Ltd. is a Cayman Islands holding company conducting operations primarily through its PRC subsidiaries.
• The company provides clean-energy equipment and integrated solutions to the oil and gas industry.
• Its major business segments include clean-energy equipment, oil and gas engineering technical services, new energy production and operation, and digitalization and integration equipment.
• The company holds 102 invention and utility model patents, 3 trademarks, and 8 software copyrights.
• Leishen Energy completed its IPO on Nasdaq on December 20, 2024, raising $5.5 million gross proceeds, with an additional $0.6 million raised in January 2025 through an over-allotment option.
• The company adopted a dual-class share capital structure in November 2025 with Class A and Class B ordinary shares.
• As of September 30, 2025, the company had current assets of $59.1 million and current liabilities of $23.2 million, resulting in a current ratio of 2.54 and a cash ratio of 0.8.
• The company reported net income of $1.25 million and basic and diluted EPS of $0.08 for the fiscal year ended September 30, 2025.
• Revenue for fiscal year 2025 was approximately $48.3 million, down from $69.1 million in 2024, reflecting a 30% decrease.
• Revenue declined across all segments in 2025 compared to 2024: clean-energy equipment sales decreased by 34.7%, digitalization and integration equipment sales decreased by 11.3%, new energy sales decreased by 24.3%, and oil and gas engineering technical services decreased by 37.1%.
• Gross profit for 2025 was $8.53 million with a gross margin of 17.6%, down from $16.03 million and 23.2% margin in 2024.
• The company is actively exploring international markets to reduce reliance on the domestic PRC market and to rebuild its revenue base.
• The company has subsidiaries in China, Hong Kong, Saudi Arabia, and the United States, with some subsidiaries currently having no business operations.
• The company has outstanding bank loans of approximately $3.1 million as of September 30, 2025, with no collateral or debt covenants.
• The company reported strong operating cash flow in fiscal 2024 and low financial leverage as highlighted in a recent press release.
• The company received a Nasdaq notice regarding annual meeting requirements in January 2026.
• The company faces risks related to PRC tax residency status, which could affect withholding taxes on dividends and gains for shareholders.
• The company’s subsidiaries in China are subject to PRC enterprise income tax, with some subsidiaries enjoying preferential tax rates as High and New Technology Enterprises.
• The company’s ability to pay dividends depends on dividends paid by its PRC subsidiaries, which are subject to PRC regulations and restrictions.
• The company’s business is aligned with Chinese government strategic policies on energy, including oil and gas exploration and new energy substitution.
• The company’s accounts receivable and other receivables are reviewed periodically with allowances for expected credit losses recognized.
• The company’s operating expenses increased in 2025 compared to 2024, including provisions for expected credit losses.
• The company’s revenue and gross profit declines in 2025 were attributed to economic downturn, market competition, expiration of sales agreements, and lower service prices.
• The company is working to develop new customers and projects domestically and internationally to restore and grow revenue.
• The company’s liquidity position as of September 30, 2025, includes short-term investments of $18.7 million and cash of approximately $10.2 million.
• The company’s current ratio of 2.54 and cash ratio of 0.8 as of September 30, 2025, indicate a solid liquidity position.
• The company’s recent news includes IPO completion, additional share offering, fiscal year 2024 financial results, and receipt of Nasdaq notice regarding annual meeting requirement.