Garden Stage (GSIW) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with all operations conducted through two wholly-owned Hong Kong subsidiaries licensed for securities dealing, asset management, and advisory services.

• Main business lines include underwriting and placing, securities brokerage, asset management, and investment advisory, with a focus on Hong Kong and U.S. markets.

• Revenue streams are diversified across brokerage commissions, underwriting/placing fees, advisory, and referral income.

• The company leverages experienced management, strong client relationships, and synergies among business lines to drive growth.

• Growth strategies include expanding U.S. market presence, launching margin financing, enhancing asset management, and upgrading IT systems.

Financial performance and metrics

• Reported revenues of $1.4 million for the year ended March 31, 2024, down from $3.3 million in 2023.

• Net loss of $4.7 million in 2024, compared to a net loss of $0.2 million in 2023.

• Revenue mix in 2024: 56.16% from brokerage, 10.84% from underwriting/placing, 29.88% from advisory, and 0% from asset management.

• Top five customers accounted for 63% of total revenues in 2024, indicating customer concentration risk.

Use of proceeds and capital allocation

• The company will not receive any proceeds from the resale of shares by the selling shareholder.

• Net proceeds from the December 2023 IPO ($10.2 million) were received by a subsidiary and are intended to support operations and business growth.

• No dividends have been declared or paid, and earnings are expected to be retained for business development.