SMJ International (SMJF) Registration Filing summary

Company overview and business model

• Operates as a premier flooring specialist with over 35 years of experience, distributing carpet tiles, broadloom carpets, and vinyl tiles under its proprietary brand in Singapore and 20+ countries, mainly in Asia.

• Maintains a robust distribution network of over 260 dealers, importers, and installation companies, serving commercial and institutional clients.

• Differentiates through comprehensive inventory, rapid order fulfillment, and a real-time inventory management system, enabling next-day delivery for in-stock items.

• Focuses on eco-friendly, certified products to support sustainable building practices and meet rising demand for green materials.

• Business model emphasizes wholesale sales to dealers and direct sales to property developers, architects, and commercial end-users, with some installation services in Singapore.

Financial performance and metrics

• FY2025 revenue was S$16.8 million, up 1.5% from S$16.6 million in FY2024, driven by increased export sales.

• Net income for FY2025 was S$1.0 million, down from S$1.8 million in FY2024, reflecting lower gross margins and higher finance expenses.

• Gross profit margin declined from 38.0% in FY2024 to 36.1% in FY2025 due to a higher proportion of lower-margin export sales and increased logistical costs.

• As of March 31, 2025, total assets were S$19.2 million, with S$7.5 million in current assets and S$11.5 million in liabilities.

• Cash and cash equivalents stood at S$0.8 million at FY2025 year-end, with net cash from operating activities of S$82,875.

Use of proceeds and capital allocation

• Net proceeds of approximately US$9.4 million (or US$10.9 million if over-allotment is exercised) are expected, based on an assumed IPO price of US$4.50 per share.

• 35% of proceeds allocated to expanding inventory stocking program, 30% to strategic acquisitions and investments, 20% to strengthening and expanding sales/distribution networks, and 15% to general corporate purposes and working capital.

• No current commitments for acquisitions; management retains broad discretion over use of funds.