Julong Holding Ltd (NASDAQ: JLHL)

Julong Holding Limited is a growth oriented professional provider of intelligent integrated solutions to public utilities, commercial properties, and multifamily residential properties operating at scale in China. The company was established in June 1997 and initially served individual proprietorships, property owners and residents. In May 2012, under the leadership of founder chairman and chief executive officer Jiaqi Hu, it shifted focus to become a provider of intelligent integrated solutions mainly serving public utilities, enterprises, commercial and multifamily properties and other institutional customers. Julong Holding Limited designs, procures, installs, integrates and maintains systems such as security, fire protection, parking, toll collection, broadcasting, identification, data room, emergency command and city management solutions. It concentrates on complex and large scale engineering projects for institutional clients.

Julong Holding Limited generates revenue from three main activities: engineering solutions of intelligent projects, operation and maintenance of intelligent projects, and sales of equipment and materials for intelligent systems. In the fiscal year ended September 30 2025, engineering solutions accounted for 95.3% of revenue, operation and maintenance for 3.6% and sales of equipment and materials for 1.1%. Engineering solutions involve planning, design, procurement, integration, installation and testing of customized systems for customers. Operation and maintenance services provide routine, periodic and emergency support including remote monitoring, hardware updates, security inspections and staff training. Sales of equipment and materials include wires, cables, network accessories, security cameras, access control devices, fire protection equipment and related software. The company obtains contracts through direct invitations for quotation or competitive tendering processes with project owners or their main contractors.

The company operates through the following segments:

• Engineering Solutions of Intelligent Projects: This segment provides planning, design, procurement, integration, installation and testing of customized intelligent systems for public utilities, commercial and multifamily properties. It handles projects ranging from small scale installations under RMB0.5 million to large scale contracts exceeding RMB6 million.

• Operation and Maintenance of Intelligent Projects: This segment offers routine, periodic and emergency support services including remote monitoring, hardware updates, security inspections, compliance checks and staff training for installed intelligent systems. It serves both existing customers for whom Julong Holding Limited previously provided engineering solutions and new customers needing support for third party systems.

• Sales of Equipment and Materials of Intelligent Systems: This segment sells wires, cables, network accessories, security cameras, access control devices, fire protection equipment, intelligent identification devices and related software. It sources materials from multiple suppliers and provides products that meet project specifications for security, fire protection, parking, broadcasting and emergency management applications.

The intelligent integrated solutions industry in China is competitive and highly fragmented. Julong Holding Limited faces competition from over 10,000 local and regional companies including product and solution providers, system integrators and communication operations. The company believes it is strategically well positioned in the industry and competes favorably based on its advanced technologies, superior customer experience, brand recognition and deep understanding of the intelligent integrated solutions industry. Its long term relationships with customers and proven track record on landmark projects such as an international airport in Beijing, a prestigious public university in Beijing and a commercial bank with over 460 branches in Southwest China further strengthen its market position.

Julong Holding Limited serves public utilities, enterprises, commercial properties, multifamily residential properties and other institutional customers in China. Specific customers include an international airport in Beijing, a prestigious public university in Beijing and a renowned commercial bank with over 460 branches in Southwest China. The company also works with public universities, transportation operators, financial institutions, healthcare providers and system integrators across the country. Its five largest customers accounted for 86.5% of revenue in the fiscal year ended September 30 2023, 82.3% of revenue in the fiscal year ended September 30 2024 and 92.6% of revenue in the fiscal year ended September 30 2025.