Masonglory (MSGY) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with primary operations in Hong Kong through its subsidiary Masontech Limited, providing wet trades subcontracting services such as plastering, tile laying, brick laying, floor screeding, and marble works for construction projects.

• Major customers are main contractors for property development and civil engineering projects in Hong Kong, with three customers accounting for the vast majority of revenue.

• Recognized as a Group 2 Registered Specialist Trade Contractor, enabling participation in larger-scale projects without tender limits.

• Business strategy focuses on expanding workforce, acquiring additional machinery, diversifying project portfolio (especially into public sector), and strengthening marketing efforts.

Financial performance and metrics

• Revenue for the year ended March 31, 2024 was $20.6 million, up 159% from $8.0 million in 2023; net income rose to $1.3 million from $0.3 million.

• For the six months ended September 30, 2024, revenue was $11.6 million (up 22% YoY), with net income of $744,000 (up 40% YoY).

• Gross profit margin increased to 8.3% for the year ended March 31, 2024, from 4.7% in 2023.

• As of September 30, 2024, cash at banks was $526,108, with accounts receivable of $3.3 million and contract assets of $2.4 million.

• Backlog decreased from $24.5 million as of September 30, 2023 to $5.9 million as of September 30, 2024, reflecting project completions.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated at $5.3 million at $5.00/share) will be allocated: 15% to workforce expansion, 15% to machinery acquisition, 15% to project portfolio diversification, 15% to marketing, and 40% to working capital and general corporate purposes.