Julong Holding Limited (JLHL) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with primary operations in China, providing intelligent integrated solutions for public utilities, commercial, and multifamily residential properties.

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

• Solutions encompass security, fire protection, parking, toll collection, broadcasting, identification, data room, emergency command, and city management systems.

• Contracts are obtained via direct invitations or competitive tenders, with a focus on large-scale, complex projects.

• Corporate structure involves subsidiaries in the BVI, Hong Kong, and PRC, with all PRC operations conducted through subsidiaries.

Financial performance and metrics

• Revenue grew from RMB119.1 million in FY2023 to RMB173.7 million (US$24.7 million) in FY2024, a 45.8% increase.

• Net income rose from RMB11.2 million in FY2023 to RMB17.1 million (US$2.4 million) in FY2024, a 52.1% increase.

• Gross margin slightly decreased from 15.8% to 15.3% year-over-year.

• Cash and cash equivalents at September 30, 2024, were RMB20.8 million (US$3.0 million).

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

Use of proceeds and capital allocation

• 55% 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.