JBDI Holdings (JBDI) Registration Filing summary

Company overview and business model

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

• Main revenue streams are sales of reconditioned and new containers, reconditioning services, and ancillary services such as waste collection and wastewater treatment.

• Holds a leading market share in Singapore’s drum reconditioning industry, serving over 300 customers, primarily in the chemical, petroleum, and edible oil sectors.

• Emphasizes environmentally friendly practices, including recycling and wastewater treatment, and aims to expand regionally in Southeast Asia.

Financial performance and metrics

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

• Gross profit margin was 68.3% in 2023, compared to 71.8% in 2022; administrative expenses increased to $6.6M in 2023.

• Cash and cash equivalents as of November 30, 2023 were $123K; working capital was $159K.

• Major customers accounted for 30–35% of revenue; one customer represented 16.4% of 2023 revenue.

• Bank borrowings as of November 30, 2023 were $813K at a 2.5% fixed rate, guaranteed by a director and a major shareholder.

Use of proceeds and capital allocation

• Net proceeds of ~$6M (at $4.50/share) will be used for automation, storage expansion, strategic acquisitions, ESG initiatives, fleet renewal, repayment of shareholder loans, and general working capital.

• 10% allocated to automation, 30% to storage, 30% to regional expansion/acquisitions, 10% to ESG, 10% to fleet, 10% to repay shareholder loans.