OFA Group (OFAL) Registration Filing summary

Company overview and business model

• Provides architectural design and fit-out services for commercial and residential buildings in Hong Kong through a wholly owned subsidiary.

• Business model is project-based, with a focus on leveraging AI and digital tools for design efficiency and client engagement.

• Main revenue streams include design and fit-out, project management, and application services; 80.5% of FY2024 revenue from design and fit-out.

• Plans to expand into the US and broader Asia markets, and to develop proprietary AI tools for building code compliance.

• Operates in a highly competitive, fragmented market with a focus on innovation, sustainability, and client relationships.

Financial performance and metrics

• FY2024 revenue was $530,606, down 51.7% from $1,099,225 in FY2023, primarily due to economic downturn in Hong Kong.

• FY2024 net loss was $93,197, compared to net income of $174,268 in FY2023; accumulated deficit of $312,388 as of March 31, 2024.

• Gross profit margin increased to 32.97% in FY2024 from 31.7% in FY2023, despite lower revenue.

• As of September 30, 2024, cash and cash equivalents were $177,053, with positive working capital of $208,007.

• Outstanding bank borrowings of $475,434 as of September 30, 2024, at an annual interest rate of 3.625%.

Use of proceeds and capital allocation

• 45% of net proceeds allocated to R&D for architectural AI services and tools, including development of an AI-based building code-checking tool.

• 15% to enhance service capacity by establishing in-house teams for design and project management.

• 40% for general working capital, daily operational needs, and establishing a US-based subsidiary.

• Management retains flexibility to reallocate proceeds as business needs evolve.