CGL Logistics Holdings Ltd

CGL Logistics Holdings Limited operates as a Cayman holding company for freight forwarding services executed through subsidiaries in Hong Kong (CGL, founded 1996) and PRC (Flying Fish entities). With 121 employees across 8 offices, it generated $25.9M revenue in FY2025 (down 18.7% YoY from $31.8M), primarily from sea freight (80%), serving 6,523 customers with no single client >9%. Net income fell 41% to $1.2M amid weakening trade volumes, but gross margins improved to 21.7% via cost-plus pricing. Cash position $2.3M supports operations; bank debt $1.1M at low rates (3.7%). The fragmented market (PRC: 51K providers; HK: 3.7K) favors CGL's 20+ year track record, CSA deals enabling direct airline cargo buys, and supplier relationships mitigating space shortages. Byron Lee controls 100% pre-IPO via Fook Star, retaining 80% post-IPO (18.75M shares), qualifying as controlled company exempt from some Nasdaq governance rules. IPO raises $11.9M net ($13.8M gross at $4/share) for expansion: $4.1M new PRC offices, $1.5M warehousing, $1.2M IT/e-business—targeting e-commerce growth (PRC cross-border $19.5T projected 2025). Dilution ~20% to new investors; NTBV $0.69/share post-IPO. Key risks center on PRC/HK ops: CSRC filings potentially required (opinion: not applicable), CAC cybersecurity reviews (data <1M users), forex controls limiting dividends, HFCAA delisting threat (auditor PCAOB-compliant). No VIE used; direct ownership. Trade wars/tariffs, Covid recurrence, supplier disruptions threaten volumes. Lee's family ties (son GM, nephew CFO) raise governance flags, but no competing interests disclosed. Strategy leverages RCEP/e-commerce tailwinds in fragmented Asia market, but execution hinges on navigating Beijing's opaque regs amid U.S.-China tensions.