Company: CCHH
Filing Date: 2025-08-27
Form Type: F-1
Source: 0001213900-25-081009
Chunk: 66

Company: CCH Holdings Ltd
Filing Date: 2025-08-27
Form: F-1
Chunk 66
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and ongoing support services, the authorization of the access to the proprietary marks associated with the brand of Chicken Claypot House and/or Zi Wei Yuan, and the right to operate a fixed number of restaurants under the authorized brands. Additionally, for each restaurant such master licensee opens above the fixed number agreed or sub -franchisesto other third -parties, a fixed outlet license fee shall also be paid. Master license fee is higher than outlet license fee, since master license is granted with the overarching right to operate the business within a specified territory, including the power to grant outlet license within the territory. During the effective license term, all the licensees are also required to share a certain percentage (generally between 5% to 7.5%) of each applicable restaurant outlet’s gross revenues as royalties, which are settled on a monthly basis. Therefore, revenues from franchise licensing are generated from service fees that we receive from our licensees, which primarily include (i) royalties, (ii) license fees, and (iii) other service fees for providing support services. Others We also generate revenues from leasing out buildings. Cost of Revenues Our cost of revenues consists of costs directly related to revenue -generatingactivities, which is primarily consisted of material costs, payroll costs including salaries and related social insurance, and other operating costs directly linked to the revenues including rental costs, utilities costs, depreciation of property and equipment, repair and maintenance costs, and other miscellaneous costs. The following table sets forth a breakdown of our cost of revenues presented by cost categories, in absolute amounts and as percentages of total revenues, for the periods indicated.

|                                        |     | For the Years Ended December 31, |     |      |     |           |     |      |     |   Variance |   |     |            |   |
|                                        |     |                             2023 |     |      |     |      2024 |     |      |     |     Amount |   |     | Percentage |   |
|                                        |     |                              US$ |     |    % |     |       US$ |     |    % |     |        US$ |   |     |          % |   |
| Cost of revenues                       |     |                                  |     |      |     |           |     |      |     |            |   |     |            |   |
| Material costs                         |     |                        3,197,559 |     | 32.7 |     | 2,905,793 |     |