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 proprietary AI for building code compliance.

• Operates a project-based model with a focus on innovation, efficiency, and scalability, leveraging a strong client referral network and industry relationships.

• All operations are conducted through a wholly owned Hong Kong subsidiary; the holding company is incorporated in the Cayman Islands.

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 and reduced demand.

• 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 31.7% in 2023, 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 as of September 30, 2024 were $475,434 at an annual interest rate of 3.625%.

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.