Executive Summary / Key Takeaways

• Post-IPO Transformation: Aureus Greenway Holdings Inc. (AGH) has fundamentally reshaped its financial foundation following its February 2025 IPO and a subsequent July 2025 private placement, significantly improving liquidity and eliminating prior debt burdens.
• Strategic Growth Initiatives: The company is actively pursuing a multi-pronged growth strategy focused on modernizing existing facilities, enhancing customer engagement in the greater Orlando, Florida region, and expanding its portfolio through regional acquisitions, with an eye towards potential Asian market entry.
• Recent Operational Headwinds: Despite a strengthened balance sheet, AGH faced a challenging first half of 2025, marked by revenue declines across all segments due to adverse weather, reduced tourism, and the temporary closure of Remington Golf Club for renovations.
• Operational, Not Technological, Differentiation: AGH's competitive edge stems from its commitment to delivering a high-quality, accessible golf experience and continuous facility upgrades, rather than proprietary technological innovation.
• Outlook Hinges on Execution: The investment thesis for AGH relies heavily on its ability to successfully execute its renovation projects, effectively market to new and existing customers, and integrate future acquisitions to drive sustained revenue growth and return to profitability.

Unlocking Value in Florida's Fairways

Aureus Greenway Holdings Inc. (AGH) operates as a dedicated owner and manager of public golf country clubs in the vibrant leisure market of Florida. With two established clubs spanning over 289 acres, featuring extensive fairways, clubhouses, aquatic golf ranges, and pro shops, AGH’s business model is built around providing comprehensive golf and recreational experiences. The company generates revenue across four primary streams: golf operations, sales of food and beverage, sales of merchandise, and ancillary services.

The leisure industry, particularly golf, is characterized by a blend of local community engagement and tourism-driven demand. AGH positions itself as an accessible, community-focused operator, a strategy that contrasts with more premium, membership-exclusive models. While direct quantitative market share figures for all niche competitors are not publicly detailed, AGH's operational focus and local presence are critical in competing against larger, more diversified leisure companies like Invited (formerly ClubCorp) and Troon, which often target higher-end or resort-style segments. American Golf Corporation, another significant player, shares AGH's emphasis on public accessibility and community engagement, indicating a competitive landscape where value and local experience are paramount.

AGH's competitive advantage is not rooted in proprietary technological differentiation, but rather in its commitment to operational excellence and continuous facility modernization. The company's strategy emphasizes delivering a high-quality golfing experience, which it achieves through investments in course upkeep, clubhouse amenities, and customer service. This focus on an enjoyable and accessible experience is designed to foster customer loyalty and capture a greater share of the market in the growing Orlando, Florida region. The ongoing renovation and modernization efforts, such as the recent roof replacement at Kissimmee Bay Country Club and the greens renovation at Remington Golf Club, are central to this operational differentiation, aiming to enhance the overall appeal and functionality of its facilities.

A History of Growth and Transformation

AGH's journey began with the strategic acquisition of its core assets. Mr. Cheung Chi Ping initiated this foundation in December 2013 with the acquisition of Pine Ridge Group Limited. Subsequently, through its subsidiaries, the company acquired and began operating Kissimmee Bay Country Club and Remington Golf Club in Florida in 2014. These acquisitions were supported by shareholder loans, demonstrating early commitment from its principal stakeholders.

A significant corporate restructuring occurred on January 17, 2024, consolidating these operations under the newly incorporated Aureus Greenway Holdings Inc. in Nevada. This reorganization streamlined the corporate structure and set the stage for a pivotal financial event. On February 13, 2025, AGH successfully completed its Initial Public Offering (IPO) on the Nasdaq Capital Market, raising approximately $10.65 million in net proceeds from the sale of 3 million common stocks at $4.00 per share. This capital infusion was transformative, allowing the company to fully repay all existing bank and related party borrowings, significantly de-leveraging its balance sheet and enhancing its financial flexibility. Further bolstering its capital position, AGH secured an additional $26 million in gross proceeds from a brokered private placement in July 2025, with potential for an additional $69.6 million if warrants are exercised in cash.

Recent Financial Performance: A Mixed Bag

The first half of 2025 presented a challenging operational environment for AGH, despite its strengthened financial foundation. For the six months ended June 30, 2025, total revenue decreased by 12.3% to $1.93 million, down from $2.20 million in the prior year period. This decline was broad-based, affecting all revenue streams. Golf operations, the largest segment, saw a 14.3% reduction in revenue to $1.44 million, primarily driven by a 15% decrease in one-time green fees. This was attributed to an 11% reduction in total rounds played (from approximately 36,000 to 32,000) and a 5% decrease in the average price per round (from $42 to $40), as inflation impacted customer sentiment and tourism in Florida.

A significant operational headwind was the temporary closure of Remington Golf Club for greens renovation starting mid-May 2025, which is expected to last until late September 2025. This closure directly contributed to a 17% decrease in rounds for Remington in the second quarter, further pressing golf operations revenue. Sales of food and beverage declined by 4.8% to $373,390, and merchandise sales fell by 13.7% to $65,408, both correlating with the reduced foot traffic from golf operations. Ancillary revenue also decreased by 14.0% to $46,997, reflecting lower demand for rental services.

Concurrently, operating expenses increased by 10% to $2.00 million for the six months ended June 30, 2025. This was largely due to a 38% increase in salaries and benefits, including approximately $90,000 for the Chief Financial Officer and $71,000 for audit committee members' fees. Other general and administrative expenses also rose by 17%, driven by higher rental, travel, and insurance costs. While golf operating costs decreased by 8% due to fewer players and reduced maintenance projects prior to the Remington renovation, the overall increase in expenses, coupled with declining revenue, resulted in a net loss of $23,049 for the six months ended June 30, 2025, a significant shift from the $260,283 net income in the prior year. The effective tax rate also notably increased to 134% due to non-taxable operating costs.

Strengthened Balance Sheet and Strategic Capital

Despite the recent operational challenges, AGH's financial position has been fundamentally strengthened by its recent capital raises. The IPO proceeds, combined with the subsequent private placement, have dramatically improved the company's liquidity. Cash and cash equivalents surged to $7.63 million as of June 30, 2025, from $457,142 at December 31, 2024. This influx of capital allowed AGH to fully repay all bank and other borrowings, as well as related party loans, eliminating a significant portion of its debt burden.

This strategic de-leveraging is a critical "so what" for investors, as it provides AGH with substantial financial flexibility to fund its growth initiatives without the immediate pressure of debt servicing. The company's working capital position transformed from a $2.28 million deficiency at year-end 2024 to a $6.79 million surplus by June 30, 2025. Management has stated confidence that these enhanced financial resources will be sufficient to meet its anticipated cash needs for at least the next twelve months. This robust liquidity positions AGH to weather short-term operational headwinds and invest in its long-term strategic vision.

Strategic Outlook: Renovate, Market, Acquire

AGH's management is focused on a clear strategy to drive future revenue growth and profitability. The core of this strategy involves continuous investment in its existing properties. The ongoing renovations at Remington Golf Club, expected to conclude by late September 2025, are a key part of this, aiming to enhance the quality of the golfing experience and attract more patrons upon re-opening.

Beyond facility upgrades, AGH plans to intensify its marketing efforts to attract and retain customers across various demographic groups in the greater Orlando, Florida region. The goal is to build customer loyalty and capture a larger market share by emphasizing the high-quality experience offered at its clubs. Furthermore, the company intends to expand its portfolio through regional country club acquisitions, signaling a growth-through-consolidation approach within its geographic focus. AGH has also engaged a third-party consultant for business development related to potential golf property acquisitions and management in Asia, indicating a long-term vision for international expansion.

Competitive Dynamics and Market Position

AGH operates in a competitive leisure market, facing both direct and indirect rivals. Directly, it competes with other public golf country clubs like American Golf Corporation, which also focuses on accessible golf. AGH's emphasis on a holistic club ecosystem, including aquatic ranges and comprehensive food and beverage options, aims to differentiate it by offering a more complete experience, potentially fostering stronger customer loyalty. Against larger, more premium operators like Invited and Troon, AGH's strength lies in its community-focused, public-access model, which may allow for greater adaptability to local market needs and potentially more efficient cost control in its specific niche.

However, AGH's smaller scale compared to these larger entities presents vulnerabilities, potentially limiting its bargaining power with suppliers and its ability to expand rapidly. The company is also susceptible to broader industry trends, such as the inflationary environment impacting maintenance costs and customer spending, and fluctuations in tourism, as evidenced by the recent decline in Florida visitors. Indirect competition from alternative leisure activities, including home-based entertainment and other outdoor recreation, also poses a threat by diverting discretionary spending. AGH's strategic response involves leveraging its strengthened balance sheet to fund renovations and marketing, aiming to enhance its value proposition and capture market share by providing a superior local experience.

Key Risks to Monitor

Investors should closely monitor several key risks that could impact AGH's performance. The business is inherently subject to seasonality, with the first quarter typically being the busiest, and is highly sensitive to weather conditions, as demonstrated by the impact of rainy days in Q1 2025. Inflationary pressures continue to pose a challenge, driving up maintenance costs (e.g., for labor, fertilizer, chemicals) and potentially hindering customer sentiment for discretionary spending on golf.

The temporary closure of Remington Golf Club for renovations, while strategic, will continue to adversely affect results until its expected re-opening in late September 2025. Furthermore, AGH faces vendor concentration risk, with a single key supplier accounting for a significant portion of its accounts payable and operating costs. The company also holds substantial cash balances exceeding federally insured limits, introducing a concentration risk. While management believes its current liquidity is sufficient, successful execution of its growth strategy and effective mitigation of these operational and market risks will be crucial for long-term value creation.

Conclusion

Aureus Greenway Holdings Inc. stands at a pivotal juncture, having successfully recapitalized through its IPO and a recent private placement. This financial transformation has provided the company with a robust balance sheet, enabling it to shed prior debt and fund an ambitious growth strategy centered on enhancing its existing Florida golf country clubs and exploring new acquisition opportunities. While the first half of 2025 presented operational headwinds, including renovation-related closures, adverse weather, and inflationary pressures, the company's strategic investments in facility modernization and customer engagement are designed to build a more resilient and attractive business.

The investment thesis for AGH hinges on its ability to translate its newfound financial strength into sustained operational improvements and market expansion. As Remington Golf Club re-opens and marketing efforts intensify, the focus will be on driving increased rounds, higher revenue per customer, and improved profitability. AGH's commitment to a high-quality, accessible golf experience, coupled with its strategic capital allocation, positions it to compete effectively in its niche, offering investors a compelling narrative of a re-energized leisure operator poised for growth in a dynamic market.