OneConstruction Group (ONEG) Registration Filing summary

Company overview and business model

• Operates as a structural steelwork contractor in Hong Kong, specializing in procurement and installation for public and private construction projects, with all business activities and clients based in Hong Kong.

• Acts primarily as a subcontractor for registered general building contractors, focusing on public sector projects such as infrastructure and public housing, as well as private commercial and residential developments.

• The company is a holding entity incorporated in the Cayman Islands, with operations conducted through its Hong Kong subsidiary, OneC Engineering.

• Recognized as a Registered Specialist Trade Contractor in Hong Kong, with a proven track record and established client relationships.

Financial performance and metrics

• For the six months ended September 30, 2024, revenue was $28.7 million, with a net profit of $1.24 million, down from $1.61 million in the prior year period.

• Gross profit margin increased to 8.3% from 6.6% year-over-year, driven by higher-margin public sector projects.

• As of September 30, 2024, the company had $440,000 in cash, $6.9 million in net assets, and $1.94 million in outstanding bank borrowings.

• Revenue for the fiscal year ended March 31, 2024 was $63.5 million, with public sector projects accounting for 84.1% of total revenue.

• The company relies heavily on a small number of major clients, with the top five clients accounting for 98% of revenue in the latest period.

Use of proceeds and capital allocation

• The company will not receive any proceeds from the resale of shares by selling shareholders; all proceeds go to the selling shareholders.

• Proceeds from the initial public offering completed in January 2025 are intended to support business operations and expansion.

• No dividends are anticipated in the foreseeable future, with earnings retained for business growth.