Company: AGCC
Filing Date: 2025-08-19
Form Type: F-1/A
Source: 0001213900-25-078155
Chunk: 93

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-08-19
Form: F-1/A
Chunk 93
---
 as well as the benefits of favorable currency exchange rates in certain regions. The gross margin for our raw cask whisky sales improved from 43% in 2023 to 56% in 2024. This improvement was facilitated by our ability to negotiate better terms with suppliers, streamline logistics, and capitalize on bulk purchasing discounts. Our bottled channel, which sells to bars, restaurants, nightclubs, VIP lounges, and corporate clients in collaboration with our downstream distributors, experienced a gross margin improvement from 24% in 2023 to 46% in 2024. This increase was driven by our efforts to optimize pricing strategies, enhance operational efficiencies, and leverage our strong brand reputation in the premium whisky market. Through a combination of strategic initiatives and favorable market conditions, we were able to achieve significant gross margin improvements across our key segments, demonstrating our commitment to operational excellence and profitability. General and administrative expenses These expenses increased to US$205,341 in 2024, up 305% from US$50,662 in 2023. The increase was primarily due to higher professional fees and other administrative expenses associated with our growth. As we pursued our growth strategies and prepared for our IPO, we incurred substantial professional fees, primarily consisting of audit fees paid to our auditors for the audit of our combined financial statements for the years ended December31, 2024 and 2023. Our administrative expenses also increased significantly due to our rapid growth and expansion. With the impending IPOs and increased regulatory scrutiny, we strengthened our corporate governance framework, implemented robust compliance measures, and enhanced internal controls, resulting in additional administrative costs. The significant increase in general and administrative expenses in 2024 was a strategic investment necessary to facilitate our rapid growth, support our IPOs aspirations, and position ourselves for long -termsuccess in the competitive whisky industry. While these expenses impacted profitability in the short term, they laid the foundation for future growth and value creation for us and our stakeholders. Sales and distribution expenses Sales and distribution expenses rose to US$45,378 in 2024, up 221% from US$14,127 in 2023. The increase reflects expanded marketing and distribution efforts to support higher sales volumes and market expansion. 60 Income from Operations Income from operations was US$1,014,584 in 2024, a 239% increase from US$299,144 in 2023. This substantial growth in operating income reflects our ability to scale operations efficiently while maintaining strong gross margins. The increase was primarily attributable to the significant