Company: NIVFW
Filing Date: 2025-09-18
Form Type: F-1
Source: 0001213900-25-088927
Chunk: 127

Company: NewGenIvf Group Ltd
Filing Date: 2025-09-18
Form: F-1
Chunk 127
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.Cost
of goods sold primarily consisted of purchase and direct cost for IVF treatment services and surrogacy and ancillary caring services.
NewGenIvf’s cost of goods was mostly recognized during the provision of IVF treatment services.

Clinic costs.Clinic
costs primarily consisted of sub-contracting charges, office supplies and staff salaries and bonus. The largest portion of clinic costs
was sub-contracting charges, representing fees paid to agents who recruited surrogate mothers and assisted in the documentation, consulting
and medical treatment arrangement throughout treatment procedure. NewGenIvf’s clinic costs of goods were mostly recognized during
the provision of surrogacy services.

Gross profit and gross margin

The following table sets forth
NewGenIvf’s gross profit in absolute amounts and its gross margin as percentages of total revenues, for the periods indicated.

|              |     | For the Year ended December 31, |      2024 |     |   |      |     |     |      2023 |     |   |      |
|:-------------|:----|:--------------------------------|----------:|:----|:--|-----:|:----|:----|----------:|:----|:--|-----:|
|              |     | US$                             |           |     | % |      |     | US$ |           |     | % |      |
| Gross profit |     |                                 | 1,826,894 |     |   | 33.6 |     |     | 1,681,785 |     |   | 32.7 |
| Revenues     |     |                                 | 5,433,375 |     |   |    — |     |     | 5,136,153 |     |   |    — |

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NewGenIvf expects that gross
profit and gross margin will continue to be affected by various factors including the geographic locations where treatments are performed,
as well as the pricing with its clients, agent subcontracting charges and the costs of the supplies provided by major pharmaceutical companies,
all of which are negotiated separately.

Operating expenses

NewGenIvf’s operating
expenses consist primarily of selling and marketing expenses and general and administrative expenses. NewGenIvf’s selling and marketing
expenses are primarily social media expenses. NewGenIvf’s general and administrative expenses mainly include depreciation in operating
lease ROU assets, and staff salaries.

Other income

NewGenIvf’s other income