J-long Group Limited · NASDAQ:JL
J-long — IPO Roadshow (November 2023)
31 slides from J-long's IPO roadshow presentation, Nov 24, 2023
Slide 1: J-Long Group Limited Investor Presentation November 2023
H E AT T R A N S F E R & R E F L E C T I V E T R I M S S P E C I A L I S T J - LONG GROUP LIMITED (JL) Investor Presentation November 2023 Issuer Free Writing Prospectus dated November 24, 2023 Filed Pursuant to Rule 433 of the Securities Act of 1933 Registration statement no. 333 - 275077
Slide 2: Free Writing Prospectus Statement
FREE WRITING PROSPECTUS STATEMENT This free writing prospectus relates to the initial public offering of ordinary shares of J - Long Group Limited (the “Company”) and should be read together with the preliminary prospectus dated November 21 , 2023 (the “Preliminary Prospectus”) that was included in
Slide 3: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS
Slide 4: Risk Factors
RISK F A C T ORS Risks relating to doing business in Hong Kong and our industry • All of our operations are in Hong Kong, a special administrative region of the PRC. Due to the long - arm provisions under the current PRC laws and regulations, the PRC government may exercise significant oversight and
Slide 5: Offering Summary
OFFERING SUMMARY J - LONG GROUP LIMITED ISSUER Ordinary Shares Securities JL Ticker 30,000,000 Pre - Offering Ordinary Shares Outstanding 1,400,000 Ordinary Shares offered by the Company (excluding Ordinary Shares to be sold pursuant to the Resale Prospectus) or 1,610,000 Ordinary Shares assuming th
Slide 6: Table of Contents
TABLE OF CONTENTS 1. Company Overview 2. Investment Highlight 3. Industry Overview 4. Growth Strategies 5. Financials 6. Corporate Structure
Slide 7: Company Overview
COMPANY OVERVIEW }J-LON Al. el
Slide 8: Who We Are
» J - Long Limited was established in 1985 » We have set up regional sales networks in Denmark, Italy and the United States to serve our growing customer base » We are an established distributor in Hong Kong of reflective and non - reflective garment trims » Nearly 30 years of experience in the appa
Slide 9: We Are an Established Distributor of Garment Trims
WE ARE A… » ESTABLISHED DISTRIBUTOR OF REFLECTIVE AND NON - REFLECTIVE GARMENT TRIMS » HEAT TRANSFERS » FABRICS » WOVEN LABELS AND TAPES » SWEING BADGES » PIPING » ZIPPER PULLERS » DRAWCORDS
Slide 10: Sustainability: Make It a Lifestyle, Not a Duty
SUSTAINABILITY MAKE IT A LIFESTYLE, NOT A DUTY
Slide 11: Bluesign System Partner
BLUESIGN® SYSTEM partner Recognizes our products are made of Bluesign® approved textile accessories for apparel and demonstrates our effort in sustainable process, such as our products are produced in a safe and resource conserving way with a minimum impact on people and the environment SUSTAINABILI
Slide 12: Oeko-Tex Standard, Higg Index, Global Recycled Standard
SUSTAINABILITY OEKO - TEX® STANDARD 100 We are also an Oeko - Tex Standard 100 Class I supplier, this certificate ensures our products are produced by using materials certified according to STANDARD 100 by OEKO - TEX®. HIGG INDEX FEM Joined in 2019, a self - assessment standard for assessing environ
Slide 13: For Many Global Outerwear and Sportswear Brands
FOR MANY GLOBAL OUTERWEAR AND SPORTSWEAR BRANDS
Slide 14: Investment Highlight
INVESTMENT: HIGHLIGHT }J-LON
Slide 15: Why J-Long Reflective?
JJLONG Why J-Long Reflective? e@ Have long experience in the workwear market, and a deep understanding in the reflective safety standards, this knowledge can be applied to activewear market. e@ And with our extensive experience in the activewear market, we have the knowledge to make workwear and uni
Slide 16: Wide Range of Heat Transfer Qualities
» WE OFFER A WIDE RANGE OF DIFFERENET QUALITIES OF HEAT TRANSFER SUPPLIER IN TERMS OF PRODUCT RANGE. » IN RAISED OR FLAT FINISH » REFLECTIVE OR NON - REFLECTIVE PRODUCT RANGE
Slide 17: Industry Overview
INDUSTRY OVERVIEW
Slide 18: Industry Data: Hong Kong Apparel Exports
Industry data - 20,000 40,000 60,000 80,000 100,000 2017 2018 2019 2020 2021 2022 Total export of apparel and clothing accessories in HK (HK$’ m) HK$’ m 120,000 • Export of apparel and clothing accessories were significantly dampened by the outbreak of COVID - 19 • China was the primary source of Ho
Slide 19: Industry Data: Merchandise Trade with Mainland China
Industry data 0 500 1000 1500 2000 2500 3000 2017 2018 2019 2020 2021 2022 Merchandise trade with the mainland of China Total exports Imports HK$’ bn 3500 (Source: Hong Kong Census & Statistics Department) • Hong Kong’s total exports to China experienced a general growth from 2017 to 2021 • Value of
Slide 20: Growth Strategies
GROWTH STRATEGIES
Slide 21: Growth Strategies
» We may in the future pursue acquisitions and joint ventures as part of our growth strategy » As the apparel industry is constantly changing, we need to strengthen our research and development capabilities for new products » As we aim to serve more customers and expand product range, we plan to fur
Slide 22: Financials
FINANCIALS
Slide 23: FY2023 Financial Summary: P&L
FY2022 - 23 financial summary Chg. FY23 FY22 P&L - $38.3m $38.3m Revenues Ÿ 13% $10.0m $8.9m Gross profit Ÿ 3.1 pp 26.2% 23.1% Gross margin Ÿ 13% $6.2m $5.5m EBIT (Income from operation) Ÿ 1.9 pp 16.3% 14.4% EBIT margin • Sales from China saw a decline, but non - Asia sales recorded significant grow
Slide 24: FY2023 Financial Summary: Financial Position
FY2022 - 23 financial summary Chg. FY23 FY22 Financial position Ÿ 65% 2.8X 1.7X Current ratio ź 57% $0.6m $1.4m Short - term debt and current portion of long - term debt ź 40% $2.6m $4.3m Total debt ź 19% $6.0m $7.4m Cash and equivalents N/A $(3.3m) $(3.1m) Net debt • Some bank loans were repaid due
Slide 25: Corporate Structure
Corporate Structure
Slide 26: Corporate Structure and Selling Shareholders
(1) Wise Total Solutions Group Limited, one of the Selling Shareholders selling 1,485,000 Ordinary Shares pursuant to the Resale Prospectus, has agreed to enter into customary lock - up agreement in favor of Eddid Securities USA Inc. for a period of two (2) months after the effective date of the reg
Slide 27: Board and Management Team
Chairman of the board and Director Mr. Danny Tze Ching Wong, has over 35 years of experience in the apparel industry specializing in the development and supply of reflective and non - reflective garment trims and has played a key management and leadership role in our development. Chief Executive Off
Slide 28: Mr. Danny Wong
Mr. Danny Wong Danny has served as the Company’s chairman of the board since July 2022 and is our Controlling Shareholder. Mr. Danny Wong has over 35 years of experience in the apparel industry specializing in the development and supply of reflective and non - reflective garment trims. Since 1985, M
Slide 29: Mr. To Wai Suen
Mr. To Wai Suen Mr. Suen will serve as our independent director and will be the chairman of the audit committee and a member of the nominating and corporate governance committee and compensation committee of JL. Mr. Suen has over 15 years of experience in accounting and finance. He is currently an i
Slide 30: Contacts
CONTACTS C wits-ae Eddid Securities USA Inc: J-Long Group Limited: Osea T Tom Li Edwin Wong Oscar Capital (Hong Kong)
Slide 31: Thank You
THANK YOU TO VISIT US: WWW.J - LONG.COM