Company: AGCC
Filing Date: 2025-07-10
Form Type: F-1
Source: 0001213900-25-062654
Chunk: 88

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-07-10
Form: F-1
Chunk 88
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 costs, professional fees and trademark expenses, reflecting our efforts to strengthen our workforce and enhance our brand recognition, respectively. Sales and distribution expenses Sales and distribution expenses consist primarily of basic salaries and employee benefits of sales personnel directly attributable to the generation of revenue and expenses incurred to various warehouses. In both 2023 and 2024, our sales and distribution expenses accounted for 2% of total revenue. This relatively low percentage reflects our strategic approach to sales and marketing, which emphasizes targeted efforts and efficient utilization of resources. Our sales strategy has been focused on cultivating long -termrelationships with key corporate customers and industry partners, leveraging our brand reputation and quality products. We have invested in building a skilled sales team with deep industry knowledge and strong relationships within our target markets. Despite the increase in our trade volume and revenue in 2024, we were able to maintain our sales and distribution expenses at the same level as the previous year. While the overall sales and distribution expenses remained stable at 2% of total revenue, we continuously evaluate opportunities to enhance efficiency and productivity within these areas, ensuring that our resources are allocated effectively to support our growth objectives. Income tax expenses Income tax expense represents the amount of corporate income tax we are required to pay to the relevant tax authorities based on our taxable income. As a company based in Taiwan, we are subject to profit tax imposed by the local tax authorities. Our income tax expense is calculated by applying the applicable tax rates to our taxable income, which is determined after considering various tax deductions, credits, and adjustments allowed under the relevant tax laws and regulations.

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The amount of income tax expense we incur can significantly impact our net income and profitability. The effective tax rate is the actual tax rate we pay on our taxable income, which may differ from the statutory tax rate due to various tax deductions, credits, and incentives available to us. During the fiscal years 2023 and 2024, our effective tax rate remained relatively stable, with no significant changes compared to previous periods. The effective tax rate for these years was consistent with our expectations and aligned with the statutory tax rates applicable to our operations in Taiwan, after considering the relevant tax deductions, credits, and adjustments available to us under the local tax laws and regulations. We did not experience any material changes in our tax structure or the availability of tax incentives that would significantly impact our effective tax rate during these periods. Results of Operations For the years ended December 31, 2024 and 2023 The following table summarizes the results of our operations for the years ended December