Julong Holding Limited (JLHL) Registration Filing summary

Company overview and business model

• Provides intelligent integrated solutions for public utilities, commercial, and multifamily properties in China, including security, fire protection, parking, and management systems.

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

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

• Notable projects include major airports, universities, and over 460 bank branches.

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

Financial performance and metrics

• FY2024 revenue: RMB173.7 million (US$24.7 million), up 45.8% from FY2023.

• FY2024 net income: RMB17.1 million (US$2.4 million), up 52.1% from FY2023.

• Gross margin for FY2024: 15.3%; net margin: 9.8%.

• Cash and equivalents as of September 30, 2024: RMB20.8 million (US$3.0 million).

• Backlog as of September 30, 2024: RMB40.8 million in engineering projects and RMB15.8 million in maintenance contracts.

Use of proceeds and capital allocation

• Estimated net proceeds of US$4.6 million (at US$5.00/share midpoint).

• 55% for strategic acquisitions and investments, 20% for market expansion, 15% for R&D, 10% for general corporate purposes.

• Proceeds to be invested in short/intermediate-term interest-bearing instruments pending use.