OFA Group (OFAL) Registration Filing summary

Company overview and business model

• Provides architectural, interior design, fit-out, project management, and application services in Hong Kong, with expansion plans for the US and Asia-Pacific markets.

• Focuses on innovation, efficiency, and scalability, integrating AI and digital tools such as Houzz and developing proprietary AI platforms for code compliance and design automation.

• Launched a digital asset strategy, including accepting cryptocurrency payments and developing blockchain-based real-world asset tokenization for mortgages and property assets.

• Operates primarily through its Hong Kong subsidiary, with a holding company structure in the Cayman Islands and additional US-based subsidiaries.

Financial performance and metrics

• Revenue declined 61.9% to $202,007 for the year ended March 31, 2025, primarily due to weak demand and intensified competition.

• Net loss increased to $714,680 in 2025 from $93,197 in 2024, driven by lower revenue and higher operating expenses from US expansion.

• Gross profit margin improved to 43.9% in 2025 from 33.0% in 2024, reflecting a shift to higher-margin services and better cost control.

• Cash and cash equivalents were $31,950 as of March 31, 2025, with positive working capital of $93,229.

• No dividends have been paid or are planned in the foreseeable future; earnings are retained for business operations.

Use of proceeds and capital allocation

• Proceeds from the sale of Series A Preferred Shares (up to $50 million) are designated for general corporate purposes and working capital.

• 80% of net proceeds from the $100 million equity facility with Atsion are contractually allocated to cryptocurrency purchases, primarily Bitcoin and Solana.

• Digital asset treasury strategy includes strict liquidity, allocation, and risk management policies, with Bitwise Asset Management as a strategic advisor.