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 construction projects, primarily as a subcontractor for both public and private sector developments.

• Majority of revenue is derived from public sector projects, including infrastructure and public residential developments.

• Fast-growing, with 9 and 8 projects completed in fiscal years 2023 and 2024, respectively, and 12 ongoing projects as of March 31, 2024.

• Relies on a network of suppliers and subcontractors, with significant purchases from a few key partners.

• Incorporated in the Cayman Islands as a holding company, with operations conducted through a Hong Kong subsidiary.

Financial performance and metrics

• Revenue increased from $54.5 million in FY2023 to $63.5 million in FY2024, a 16.5% rise.

• Gross profit rose from $2.8 million (5.2% margin) in FY2023 to $4.4 million (7.0% margin) in FY2024.

• Net profit attributable to shareholders was $1.77 million in FY2024, up from $1.67 million in FY2023.

• Cash and cash equivalents stood at $1.6 million as of March 31, 2024; total assets were $43.6 million.

• Significant customer and supplier concentration, with top five clients accounting for over 80% of revenue.

Use of proceeds and capital allocation

• Plans to use approximately 70% of IPO proceeds for up-front costs of future projects, 20% for recruitment of project managers, quality surveyors, and engineers, and 10% for general working capital.

• No intention to use proceeds to repay existing bank borrowings or related party loans.