Julong Holding Limited (JLHL) Registration Filing summary

Company overview and business model

• Growth-oriented provider of intelligent integrated solutions for public utilities, commercial, and multifamily properties in China, offering security, fire protection, parking, and management systems.

• Transitioned in 2012 from serving individual customers to focusing on large-scale, complex projects for institutional clients.

• Business lines include engineering solutions, operation and maintenance, and sales of equipment and materials for intelligent systems.

• Projects are obtained through direct invitations or competitive tenders, with a strong track record in landmark infrastructure projects.

• Operates through a Cayman Islands holding company structure, with principal operations in mainland China and subsidiaries in Hong Kong and BVI.

Financial performance and metrics

• Revenue increased 45.8% to RMB173.7 million (US$24.7 million) in FY2024; net income rose 52.1% to RMB17.1 million (US$2.4 million).

• Gross profit grew 40.8% to RMB26.6 million (US$3.8 million) in FY2024; gross margin slightly decreased to 15.3%.

• Cash and cash equivalents at FY2024 year-end were RMB20.8 million (US$3.0 million); no long-term debt outstanding.

• Backlog as of September 30, 2024: 75 engineering projects (RMB40.8 million) and 37 maintenance projects (RMB15.8 million).

• Top five customers accounted for 82.3% of FY2024 revenue, indicating customer concentration risk.

Use of proceeds and capital allocation

• 55% of IPO proceeds allocated for strategic acquisitions and investments to strengthen market position.

• 20% for expanding customer base and geographic reach in China and internationally.

• 15% for R&D to enhance technology in hardware and software.

• 10% for general corporate purposes, including working capital.