offset by the decrease in consultancy fees, mainly attributable to the service fee for composing the codes and developing programs to facilitate our web and mobile application development services during the year ended September 30, 2022, which was not replicated during the year ended September 30, 2023. Additionally, we purchased a data scraper software for preliminary works for the system development projects in the fiscal year ended September 30, 2022, while no such cost was incurred during this year.
Net loss
As a result of the foregoing, net loss increased by HK$4.32 million (approximately US$0.55 million), or 162.33% from HK$2.66 million for the year ended September 30, 2022 to HK$6.99 million (approximately US$0.89 million) for the year ended September 30, 2023.
Recent developments
Initial public offering:
On November 2, 2023, Alpha completed its initial public offering and raised approximately US$7.00 million from the sale of 1,750,000 Ordinary Shares at a price of US$4 per share. Additionally, the underwriters exercised the over-allotment option to purchase an additional 262,500 Ordinary Shares at the public offering price of $4.00 per share. After deducting underwriting discounts and all offering expenses paid or payable by us, the net proceeds totaled around US$5.32 million.
About Alpha Technology Group Limited
Alpha is a holding company incorporated in the British Virgin Islands and currently conducts its business through its Operating Subsidiaries, Techlution Service Limited and Neural Sense Limited. Our Operating Subsidiaries are cloud-based IT solution service providers in Hong Kong that utilize analytic skills, programming skills, artificial intelligence technologies, and technological know-how to provide comprehensive solutions designed to optimize business performance, meet various industry-specific operational challenges and create new business opportunities. Though its Operating Subsidiaries, Alpha provides (i) system development services; (ii) web and mobile application development services; and (iii) artificial intelligence-powered optical character recognition ("AI-OCR") services with a view to achieving digitalization of customers' business and operations. Alpha also provides technological support, maintenance and NFT-related services such as creation of NFT artwork, marketplace and development of NFT-related games to customers. Our Operating Subsidiaries have a diversified customer base and our customers come from a variety of industries with different scales of operations, including consulting, real estate planning, carpark management and social services, etc. For more information, please visit https://alphatechnologys.com and https://techlution.io.
Forward-Looking Statement
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "goal," "objective," "anticipate," "believe," "estimate," "predict," "potential, " "continue" and "ongoing," or the negative of these terms, similar expressions or other comparable terminology intended to identify statements about the future. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the future business development, financial condition and results of operation, the expectations regarding demand for and market acceptance of our services; the ability to continue to develop new technologies and/or upgrade our existing technologies; and changes in general economic, business and industry conditions and other risks contained in the annual reports for the year ended September 30, 2023 filed by our Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. Our Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Company
Alpha Technology Group Limited
Investor Relations Department
Email: ir@rainbowcaphk.com
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
ALPHA TECHNOLOGY GROUP LIMITED
CONSOLIDATED BALANCE SHEETS
(Predecessor) (Successor)
-------------- ---------------------
As of September 30,
-------------------------------------
2022 2023
-------------- ---------------------
US$
HK$ HK$ (Note)
Assets
Current assets:
Cash and cash equivalent 2,801,810 3,629,347 463,471
Accounts receivable, net 4,500 247,655 31,626
Rental deposit 119,548 119,548 15,266
Deferred cost of revenue 1,838,776 2,088,175 266,662
Deferred offering costs -- 18,758,367 2,395,460
Due from shareholders -- 100 13
Due from a related party 1,343,240 683,438 87,275
------------- ---------- ---------
Total current assets 6,107,874 25,526,630 3,259,773
------------- ---------- ---------
Property and equipment,
net 33,511 55,117 7,038
Intangible assets -- 4,605,133 588,080
Goodwill -- 10,176,959 1,299,607
Right of use
asset-finance lease 415,336 166,716 21,290
------------- ---------- ---------
Total non-current assets 448,847 15,003,925 1,916,015
------------- ---------- ---------
TOTAL ASSETS 6,556,721 40,530,555 5,175,788
============= ========== =========
Liabilities
Current liabilities:
Bank loans -- current 681,046 562,331 71,810
Accrued expenses and
other liabilities 657,704 11,886,957 1,517,975
Lease liability-finance
lease 111,738 116,834 14,920
Deferred revenue 6,209,827 5,168,876 660,070
Advance from customers 325,000 842,433 107,579
Deferred tax liabilities -- 844,274 107,815
Tax payables -- 233,259 29,787
Due to directors -- 444,379 56,748
Due to related parties 1,065,569 -- --
------------- ---------- ---------
Total current
liabilities 9,050,884 20,099,343 2,566,704
------------- ---------- ---------
Non-current
liabilities
Bank
loans -- non-current 1,469,529 911,272 116,370
Lease liability-finance
lease-non-current 259,897 143,057 18,268
------------- ---------- ---------
Total non-current
liabilities 1,729,426 1,054,329 134,638
------------- ---------- ---------
TOTAL LIABILITIES 10,780,310 21,153,672 2,701,342
------------- ---------- ---------
ALPHA TECHNOLOGY GROUP LIMITED
CONSOLIDATED BALANCE SHEETS -- (Continued)
(Predecessor) (Successor)
-------------- ----------------------
As of September 30,
--------------------------------------
2022 2023
-------------- ----------------------
US$
HK$ HK$ (Note)
Shareholders' equity
(deficit)
Ordinary shares
Alpha Technology Group
Limited, US$0.0001 par
value; 1,500,000,000
shares authorized;
13,250,000 shares
issued as of
September 30, 2023 -- 10,000,100 1,273,914
Neural Sense Limited,
no par value; 10,000
shares authorized;
10,000 and 10,000
shares issued and
outstanding as of
September 30, 2021
and 2022,
respectively 10,000 -- --
Techlution Service
Limited, HK$1 par
value; 10,000 shares
authorized; 10,000
and 10,000 shares
issued and
outstanding as of
September 30, 2021
and 2022,
respectively 10,000 -- --
Capital reserves -- 16,364,143 2,084,633
Accumulated other
comprehensive income -- -- 8,190
Accumulated deficit (4,243,589) (6,987,360) (892,291)
------------- ----------- ---------
Total shareholders'
equity (deficit) (4,223,589) 19,376,883 2,474,446
------------- ----------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
(DEFICIT) 6,556,721 40,530,555 5,175,788
============= =========== =========
ALPHA TECHNOLOGY GROUP LIMITED
CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS
(Predecessor) (Successor)
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