Company: AOAO
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001493152-25-001624
Chunk: 27

Company: Alpha One Inc.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 27
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 customers settle such payments on time and in full, there can be no assurance that the Company would not experience any significant cash flow mismatch which would affect the Company’s operating cash flow position as the Company may be required to provide prepayments pursuant to the arrangement with its suppliers. For the years ended March 31, 2023 and 2024, the Company would in certain circumstances, depending on the scale of works required, provide its material suppliers with an advance payment of approximately 30% of the contract value as stipulated in the work order. Hence, if the Company undertakes a large number of projects, it would pose significant pressure on its cash flow and the Company may record net operating cash outflow.

Failure to properly estimate the risks, time and cost involved in a project or delays in completion may lead to cost overruns and affect the Company’s financial conditions and profitability

When determining the offer price for its projects, the Company generally adopts a cost-plus pricing model after taking into account factors including, the nature, scale, complexity and location of the relevant project, as well as the estimated material, labour and equipment cost. As such, whether the Company is able to achieve its target profitability in any project is significantly dependent on its ability to accurately estimate and control these costs. The actual time taken and cost involved in implementing the Company’s project may be adversely affected by a number of factors, such as shortage or cost escalation of materials and labor, adverse weather conditions, accidents, and any other unforeseen problems and circumstances. As of the aforesaid factors may give rise to delays in completion of works or cost overruns, which in turn result in a lower profit margin or even a loss for a project, thereby materially and adversely affecting the Company’s financial condition, profitability or liquidity.

The Company’s performance depends on prevailing market conditions and trends in the Telecommunications Infrastructure Services industry, and Infrastructure Digitalisation Solution Services industry and in the overall state of economy in PRC

All of the Company’s operations are based in, and all of the Company’s revenue was derived from the PRC for the years ended March 31, 2023 and 2024, and the Directors expect the Company’s business will continue to be based in the PRC. Accordingly, the Company’s future performance depends on the prevailing market conditions and trends in the telecommunications industry in the PRC. The future growth and level of profitability is likely to depend primarily upon the continued availability of large-scale projects, which will be determined by the interplay of various factors. These