Skycorp Solar Group (PN) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with all business conducted through PRC subsidiaries focused on solar PV products and HPC servers.

• Principal activities include manufacturing and selling solar cables, connectors, and providing new/used GPU and HPC servers.

• Mission centers on providing green energy solutions for data centers and expanding solar PV and HPC offerings.

• Business model is B2B, serving solar PV installation/application and HPC server industries, mainly in Asia and Europe.

• No variable interest entity structure; controls PRC subsidiaries through equity ownership.

Financial performance and metrics

• Revenue for the six months ended March 31, 2024: $22.48M; net income: $0.64M.

• Revenue for the year ended September 30, 2023: $50.82M; net income: $1.81M.

• Gross margin for the six months ended March 31, 2024: 15.10%; for the year ended September 30, 2023: 16.97%.

• Cash and cash equivalents as of March 31, 2024: $3.54M; total assets: $29.95M; total liabilities: $12.37M.

• Solar PV products accounted for 89.7% of revenue in the six months ended March 31, 2024, up from 63.8% in the prior year period.

Use of proceeds and capital allocation

• Net proceeds of approximately $8.51M (assuming $4.00/share IPO price) expected.

• 30% to expand product lines/services, 30% to strengthen R&D, 20% to improve brand recognition, 20% for working capital/general corporate matters.

• Proceeds to be used in PRC subsidiaries via loans or capital contributions, subject to PRC registration/approval.