Company: BGHL
Filing Date: 2025-10-28
Form Type: F-1/A
Source: 0001213900-25-102958
Chunk: 118

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-28
Form: F-1/A
Chunk 118
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 strategy is designed to ensure competitiveness while maintaining profitability. We employ an internal formula based on cost -plusprinciples, which allows us to offer fair and competitive prices to our customers. The key components of our pricing strategy for premium food and beverage supply chain management business are as follows: • Cost -Plus Pricing Basis:Our fundamental pricing methodology involves determining the total cost of goods sold (COGS), which includes the procurement costs of premium ingredients (such as Wagyu beef and luxury seafood) as well as fine wines and spirits, along with associated logistics, processing, and packaging expenses. A predetermined profit margin is then added to this cost base to arrive at the final selling price. As such, the cost of goods we procure is a critical determinant in our pricing decisions. • Competitive Market Positioning:While cost -plusserves as our pricing foundation, we actively monitor market prices for comparable high -endfood and beverage products. This enables us to strategically adjust our markups to maintain competitiveness within the premium market segment and achieve optimal market share. • Value -Based Considerations:For certain exclusive or highly sought -afteritems, such as rare vintage wines or exceptionally high -gradeWagyu, we may incorporate value -basedpricing considerations. This approach takes into account the perceived value, scarcity, and prestige associated with these products, allowing for price adjustments to reflect their unique market positioning. • Tiered Pricing and Product Segmentation:We may implement tiered pricing strategies based on product grade, origin, aging (for wines and certain seafood), and packaging. This allows us to cater to a broader range of customer preferences and price sensitivities within the premium market. For example, different grades of Wagyu or different vintages of wine will be priced accordingly. Competition The premium food and beverage supply chain management solutions market in Hong Kong is relatively fragmented and highly competitive, with more than 1,000 market participants in Hong Kong in 2024. The major market players in the premium food and beverage supply chain management solutions market in Hong Kong generally have extensive product coverage, from sea cucumber, abalone, wagyu beef to red wine. Comparative advantages of the leading premium food and beverage supply chain and brand management in Hong Kong include: 1)Robust quality control ensures consistent product excellence, which enhances brand reputation while reducing the risk of food safety issues, fostering consumer trust and loyalty. 2)Partnerships with established supplier networks provide access to high -qualityingredients, improving negotiation power for better pricing and terms, ultimately leading to cost savings and