Company: AGCC
Filing Date: 2025-07-29
Form Type: F-1/A
Source: 0001213900-25-068743
Chunk: 88

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-07-29
Form: F-1/A
Chunk 88
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 to diverse consumer preferences. In addition to our revenue performance, we closely monitor our trade volume, which represents the number of bottles and raw cask whisky sold during a given period. Trade volume is a key metric that provides insights into the demand for our products and the effectiveness of our sales and distribution strategies. In 2023, our total trade volume stood at 29,771 bottles. This volume reflects the combined sales across our Taiwan and international markets, as well as through our raw cask and bottled whisky sales. However, in 2024, we experienced a significant increase in trade volume, reaching 44,095 bottles sold. The substantial increase in trade volume in 2024 demonstrates the growing demand for our whisky products and the effectiveness of our sales and marketing initiatives. It also reflects our ability to navigate market challenges and capitalize on emerging opportunities. While our trade volume increased significantly in 2024, reaching 44,095 bottles sold compared to 29,771 bottles in 2023 (a 48% increase), our revenue growth outpaced our volume increase. This disparity can be attributed to a strategic shift in our product mix, where we focused on offering more premium and higher -pricedwhisky products to cater to the growing demand for luxury and artisanal spirits. Additionally, we implemented targeted pricing strategies to optimize our revenue and profitability, which contributed to the higher revenue growth relative to the increase in trade volume. Moving forward, we remain committed to curating a diverse product portfolio that caters to various consumer segments, while strategically balancing volume growth and profitability through our pricing strategies. Cost of revenue Cost of revenue includes procurement of whisky products held for sale, as well as direct costs associated with the procurement, such as import and export charges, and processing charges. In 2023, our cost of revenue accounted for 59% of total revenue. This relatively high cost of revenue ratio is primarily due to the inherent nature of our business, which involves sourcing and aging high -qualitywhisky products, as well as the associated import and export charges. However, in 2024, we achieved a more favorable cost of revenue ratio of 50% as a percentage of total revenue. This improvement can be attributed to our efforts in optimizing our procurement processes, negotiating better terms with suppliers, and achieving economies of scale as our trade volume increased. Gross profit and gross profit margin Gross profit represents the difference between our revenue and the cost of goods sold. It is a key indicator of our profitability and operational efficiency. Our gross profit margin is calculated by