Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 45

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 45
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, 2022           
 ──────────────────────────────────────────────────────────────────────────────────────────
  Residential Apartments                              70                              60  
  Commercial Units                                    30                              40  

Historically,
we provided more property management services in the residential apartments than in the commercial units during the year ended December
31, 2023 and 2022.

  30  

Cost
of Revenue

Our
cost of revenues from property management services has no significant movement and decreased by approximately $30,000, or 1.0%, to approximately
$2.9 million for the year ended December 31, 2023 from approximately $2.9 million for the year ended December 31, 2022. The decrease
in cost of revenues from property management services is in line with our decrease of revenues from property management services, which
was mainly due to the decreased number of property management units that we managed without security guard service and the decreased
number of property management employees that cause decreased in salary by approximately 1.0%.

Gross
Profit

The
gross profit percentage was 22.7% and 23.1% for the years ended December 31, 2023 and 2022, respectively. The decrease of gross profit
percentage of 0.4% was primarily attributable to increase in salary and benefits of the property management employees per employee. Although
the number of employees in the property management operations was reduced due to the decrease in properties managed, salaries of property
management employees increased due to performance and inflation adjustment to retain more qualified employees and we did not pass on
the cost of such adjustments to the customers, which significantly lowered the gross profit percentage for property management.

Operating
Expenses

Total
operating expenses decreased by approximately $8.3 million, or 63.3%, to approximately $4.8 million for the year ended December 31, 2023
from approximately $13.1 million for the year ended December 31, 2022. The decrease was mainly attributable to the decrease of selling
expenses of approximately $0.4 million, decrease of general and administrative (“ G& A”) expenses of approximately $1.6
million, decrease of earnout share payment of approximately $5.2 million and decrease of impairment loss on long-lived assets of approximately
$1.1 million.

A
decrease of approximately $0.4 million in selling expenses was mainly attributable to the decrease of approximately $0.4 million in