Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 10

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 10
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L agreed to purchase from Seller, 100% of
the equity interest in the Target for a total purchase price of HKD500,000 (approximately USD63,750). The closing of the transaction is
conditioned upon completion of due diligence reviews of the Target and any required regulatory approvals.

5. A. Operating Results

Factors Affecting Our Results of Operations

Our business and operating results are influenced
by general factors that affect the online securities and futures brokerage industry focusing on Southeast Asian investors, including economic
and political conditions, the evolving needs of investors, changes in trading volume, changes in demand for online trading, changes in
wealth and availability of funds of our target customers, and regulatory changes governing the online brokerage industry. In addition,
the following company specific factors can directly affect our results of operations materially:

Our ability to retain existing customers and
attract new customers in a cost-effective manner

We consider customer churn rate to be an important
indicator of our attractiveness to customers. Our total registered customer number increased from 296 as of March 31, 2023 to 329 as of
March 31, 2024, and further increased to 355 as of March 31, 2025. In the year ended March 31, 2023, we had 34 revenue-generating accounts
in total, including 12 accounts for futures trading, 12 accounts for securities trading, and 10 accounts for trading solution services.
In the year ended March 31, 2024, we had 51 revenue-generating accounts in total, including 15 accounts for futures trading, 27 accounts
for securities trading and 9 accounts for trading solution services. In the year ended March 31, 2025, we had 52 revenue-generating accounts
in total, including 20 accounts for futures trading, 26 accounts for securities trading and 6 accounts for trading solution services.

Our top five customers accounted for 49%, 36%
and 42% of our total revenues for the years ended March 31, 2025, 2024 and 2023, respectively. Our customers are mainly sourced by referral
through our shareholders’ expansive and expanding social and professional networks of high-net-worth individuals. Currently, we
have not incurred significant spending on marketing activities. To expand our business, we aim to diversify our customer base by attracting
smaller retail customers who we can charge higher commission rates. We expect to incur expenses in our promotional efforts through different