JBDI Holdings (JBDI) Registration Filing summary

Company overview and business model

• Operates as a holding company incorporated in the Cayman Islands, with all operations conducted through subsidiaries in Singapore focused on reconditioning, recycling, and sale of steel and plastic drums and containers for industrial use.

• Main revenue streams include sales of reconditioned and new containers, reconditioning services, waste water treatment, and recycled materials, serving over 300 customers primarily in Singapore, with additional clients in Indonesia and Malaysia.

• Holds ISO 9001 accreditation for quality management in drum reconditioning since 2008 and is a licensed toxic waste collector in Singapore.

• Business is labor-intensive, supported by a stable, skilled workforce and a fleet of 13 delivery trucks and 15 forklifts.

• Strategic focus on ESG, automation, and expansion through increased storage, acquisitions, and brand building.

Financial performance and metrics

• Revenue for the year ended May 31, 2023 was $11.1 million, down from $11.9 million in 2022; net income was $0.8 million in 2023, down from $2.2 million in 2022.

• For the six months ended November 30, 2023, revenue was $4.8 million and net income was $0.4 million, both lower than the prior year period.

• Gross profit margin was 68.3% in FY2023 and 76.3% for the six months ended November 30, 2023.

• Cash and cash equivalents as of November 30, 2023 were $123,000; total assets were $6.1 million, and total liabilities were $4.2 million.

• Top five customers accounted for 30.1% of revenue in the latest six months; largest customer represented 14.7%.

Use of proceeds and capital allocation

• Net proceeds of approximately $6 million are expected, to be allocated as follows: 10% to automation and process upgrades, 30% to storage expansion, 30% to strategic acquisitions, 10% to ESG initiatives, 10% to fleet renewal, and 10% to repay shareholder loans related to IPO costs.

• Management retains flexibility to reallocate proceeds as business conditions evolve.