Company: OTSA
Filing Date: 2025-06-09
Form Type: F-1
Source: 0001213900-25-052720
Chunk: 41

Company: OTSAW Ltd
Filing Date: 2025-06-09
Form: F-1
Chunk 41
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 currently derive a significant portion of our revenue from our service and maintenance contracts. For the financial years ended April30, 2024 and 2023, we derived approximately 79.3% and 77.6% of our total revenues from service and maintenance, respectively. For the six months ended October31, 2024 and 2023, we derived approximately 85.3% and 82.8% of our total revenues from service and maintenance, respectively. In relation to our service and maintenance contracts, our revenue is concentrated among a small number of key customers. Although the composition of our largest customers has varied from year to year, a small group of customers continues to represent a significant portion of our revenue. For the fiscal year ended April30, 2023, our top three customers — Engie Services Singapore Pte Ltd, Sengkang General Hospital Pte Ltd, and Universitätsmedizin Greifswald Kdör — accounted for approximately 13.75%, 10.51%, and 10.13% of our sales, respectively. For the six months ended October31, 2023, these customers represented 13.26%, 10.16% and 14.51% of our sales, respectively. For the fiscal year ended April30, 2024, our top three customers — Engie Services Singapore Pte Ltd, Ng Teng Fong General Hospital, and Sengkang General Hospital Pte Ltd — contributed approximately 10.68%, 12.10%, and 10.79% of our sales, respectively. For the six months ended October31, 2024, these customers accounted for 21.79%, 11% and 17.5% of our sales, respectively. Our service and maintenance contracts typically have durations of one to three years and are not guaranteed to be renewed upon expiration. Moreover, as our products age, the cost of spare parts tends to increase significantly, which may result in higher maintenance expenses for our customers. This could negatively affect their willingness to continue existing contracts or enter into new service and maintenance agreements with us. If we are unable to renew contracts with our key customers on favorable terms, or if we lose one or more major customers, our business, financial condition, and results of operations could be materially and adversely affected. We may face difficulties as we expand our operations into regions or countries in which we have no prior operating experience. Our growth strategy relies on our global expansion in order to provide geographic breadth