Company: AGCC
Filing Date: 2025-10-22
Form Type: 424B4
Source: 0001213900-25-101076
Chunk: 83

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-10-22
Form: 424B4
Chunk 83
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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 dividing gross profit by revenue.

|                       |     | For the financial years ended December 31, |     |        |   |     |          |     |        |   |
|                       |     |                                       2023 |     |        |   |     |     2024 |     |        |   |
|                       |     |                                   GP (US$) |     | GP (%) |   |     | GP (US$) |     | GP (%) |   |
| Raw Cask whisky sales |     |                                    339,267 |     |     43 | % |     |  509,279 |     |     56 | % |
| Bottled whisky sales  |     |                                     24,665 |     |     24 | % |     |  756,024 |     |     46 | % |

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In 2024, our raw cask whisky sales segment generated a gross profit of US$509,279, representing a gross profit margin of 56%, an improvement from 43% in 2023. This increase in profitability was driven by economies of scale, operational efficiencies, and favorable pricing