OFA Group (OFAL) Registration Filing summary

Company overview and business model

• Provides comprehensive architectural services, including design, fit-out, project management, and application services for commercial and residential buildings in Hong Kong, with plans to expand into the US and Asia-Pacific markets.

• Utilizes advanced technology, including AI-driven tools (Houzz, Adobe 3D Studio Max) and is developing a proprietary AI-based building code compliance tool in partnership with Alan To AI Consultancy.

• Operates a traditional project-based model, with a focus on innovation, efficiency, and scalability, and aims to transition to a subscription-based model for AI tools.

• Maintains strong client relationships, with 90% of revenue from referral or return customers, and a diverse client base including individuals, companies, and institutions.

Financial performance and metrics

• Revenue for the year ended March 31, 2024 was $530,606, down 51.7% from $1,099,225 in 2023, primarily due to economic downturn in Hong Kong.

• Net loss for the year ended March 31, 2024 was $93,197, compared to net income of $174,268 in 2023.

• Gross profit margin increased to 32.97% in 2024 from 31.70% in 2023, despite lower revenue.

• As of September 30, 2024, cash and cash equivalents were $177,053, with positive working capital of $208,007 and outstanding bank borrowings of $475,434.

• The company has an accumulated deficit of $505,250 as of September 30, 2024, raising substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

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

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

• 40% allocated to general working capital, daily operations, and establishing a US-based subsidiary.