Hong Kong’s ALE Group Holding Ltd. has applied to sell $5 million on the OTCQB Market.
The company provides accounting and corporate consulting services to small and medium-sized businesses. It aims to grow into a one-stop-shop for the accounting, corporate consulting, taxation and secretarial needs for firms in Asia and the United States, ALE said in the filing with the U.S. Securities and Exchange Commission Wednesday.
Founded in 2014, ALE Group had turned profitable in its fiscal year ended March 2019 and saw even better results in the following six months.
For the year ended March 2019, ALE Group reported revenue of $590,861, down 19% from the preceding 12 months. Of that amount, 55% were generated from accounting and consulting services, 36% from secretarial services, and about 9% from taxation services, according to the filing.
Operating expenses during the same period declined by more than half to $377,755. Net income for the year was $201,895 – in contrast to losses of about $147,788 in the 12 months through March 2018, the company said.
ALE Group also provided financial results for the six months through September 2019. It said revenue had nearly doubled to $733,296, while net income reached $356,704.
The company has yet to report the effect of the outbreak of Covid-19. In its prospectus, ALE Group said the epidemic weighed on its business as some of its clients experienced hardships and were no longer able to pay for services. By the end of May, the company said, one of its clients terminated the contract for accounting and corporate consulting services.
“Other than this, there is no immediate impact to our operations,” it stated.
ALE Group intends to use the capital for brand promotion, new staff recruitment, increasing in product offerings, mergers and acquisitions, as well as general working capital.