Garden Stage (GSIW) Registration Filing summary

Company overview and business model

• Operates as a holding company incorporated in the Cayman Islands, with all operations conducted through two wholly-owned subsidiaries in Hong Kong: I Win Securities (Type 1 license for dealing in securities) and I Win Asset Management (Type 4 and 9 licenses for advising on securities and asset management).

• Provides placing and underwriting, securities dealing and brokerage, asset management, and investment advisory services, with a focus on Hong Kong and U.S. markets.

• Revenue streams are diversified across underwriting/placing, brokerage, advisory, and asset management, with a significant portion from brokerage and advisory in FY2024.

• The company’s structure means investors in the holding company do not directly own equity in the operating subsidiaries.

Financial performance and metrics

• Reported revenues of US$1.4 million in FY2024 and US$3.3 million in FY2023.

• Net loss of US$4.7 million in FY2024, compared to a net loss of US$0.2 million in FY2023.

• Revenue mix in FY2024: 56.16% from brokerage, 29.88% from advisory, 10.84% from underwriting/placing, and 0% from asset management.

• Top five customers accounted for 63% of total revenues in FY2024, indicating customer concentration risk.

Use of proceeds and capital allocation

• The company will not receive any proceeds from the resale of up to 1,750,000 ordinary shares by the selling shareholder.

• Net proceeds from the December 2023 IPO (US$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 there are no plans to distribute earnings in the foreseeable future.