OFA Group(US:OFAL)2025-07-31 20:05Revenue Performance - The company's revenue decreased by $328,599, or 61.93%, from $530,606 for the year ended March 31, 2024, to $202,007 for the year ended March 31, 2025, primarily due to a decline in customer demand for services [350]. - Revenue from design and fit-out services decreased by $329,742, or 77.19%, from $427,182 for the year ended March 31, 2024, to $97,440 for the year ended March 31, 2025 [352]. - Revenue from commercial projects decreased by $46,128, or 36.41%, from $126,697 for the year ended March 31, 2024, to $80,569 for the year ended March 31, 2025 [354]. - Revenue from residential projects decreased by $308,125, or 80.52%, from $382,688 for the year ended March 31, 2024, to $74,563 for the year ended March 31, 2025 [357]. - Revenue from industrial projects increased by $20,977, or 124.30%, from $16,876 for the year ended March 31, 2024, to $37,853 for the year ended March 31, 2025 [355]. Operating Expenses and Losses - Total operating expenses increased by $513,565, or 195.81%, from $262,281 for the year ended March 31, 2024, to $775,846 for the year ended March 31, 2025 [348]. - Loss from operations increased by $599,876, or 686.84%, from a loss of $87,339 for the year ended March 31, 2024, to a loss of $687,215 for the year ended March 31, 2025 [348]. - Operating expenses increased by $513,565, or 195.81%, from $262,281 for the year ended March 31, 2024, to $775,846 for the year ended March 31, 2025, mainly due to ongoing expenses from the U.S. office [368]. - Net loss reported was $714,680 for the year ended March 31, 2025, compared to a net loss of $93,197 for the year ended March 31, 2024 [376]. Profitability Metrics - Total gross profit decreased by $86,311 or 49.34%, from $174,942 for the year ended March 31, 2024, to $88,631 for the year ended March 31, 2025, driven by a decrease in revenue [361]. - Gross profit margin increased by 10.91% from 32.97% for the year ended March 31, 2024, to 43.88% for the year ended March 31, 2025, attributed to a shift in project mix towards higher-margin services [361]. - Gross profit from commercial projects increased by $5,042, or 11.56%, from $43,620 for the year ended March 31, 2024, to $48,662 for the year ended March 31, 2025 [363]. Cash Flow and Financing - Cash balance decreased to $31,950 as of March 31, 2025, down from $268,160 as of March 31, 2024 [379]. - The company had outstanding bank borrowings of $473,566 as of March 31, 2025, with an annual effective interest rate of 3.000% [380]. - Net cash used in operating activities for the year ended March 31, 2025, was $256,215, compared to $239,111 for the year ended March 31, 2024, primarily due to a net loss of $714,680 [384][385]. - Net cash provided by financing activities was $472,477 for the year ended March 31, 2024, attributed to a 10-year term loan from HSBC [386]. - The Company reported a net increase in cash and restricted cash of $31,950 at the end of the period, down from $268,160 at the beginning [384]. Future Outlook and Strategic Initiatives - The company plans to support future operations primarily from cash generated from operations and initial public offering proceeds [378]. - The Company completed its initial public offering after March 31, 2025, significantly strengthening its capital base and liquidity position [383]. - The Company remains cautiously optimistic about medium-term outlook due to new residential contracts signed in February 2025 and increased client engagement in Q1 FY 2026 [387]. Legal and Regulatory Matters - The Company is subject to legal proceedings but does not anticipate any material adverse effects on its financial position from these matters [390]. - As of March 31, 2025, the Company had no significant capital commitments and no off-balance sheet financing arrangements [388][389]. Market Conditions - Increased inflation pressures have negatively impacted consumer demand for services in Hong Kong, prompting the Company to seek new business opportunities and adopt a conservative cost approach [392]. - The Company has not been exposed to material risks from interest rate changes and has not used derivative financial instruments to manage interest risk exposure [619].