Company: ABLV
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001213900-25-034677
Chunk: 195

Company: Able View Global Inc.
Filing Date: 2025-04-23
Form: 20-F
Item: Item 19
Chunk 195
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IES(cont.)

Cost of revenues

Cost of revenues primarily consists of purchase
price of products, inbound shipping charges, write-downs of inventories and labor costs which facilitate operation services. Shipping
charges to receive products from the suppliers are included in inventories, and recognized as cost of revenues upon sale of the products
to the customers.

Selling and
marketing expenses

Selling and marketing expenses consist primarily
of advertising and marketing costs, warehouse rental expenses, outbound shipping expenses and payroll and related expenses for employees
involved in selling and marketing activities.

Advertising and marketing costs, which
consist primarily of online advertising, offline television, movie and outdoor advertising, and incentive programs and branding
promotion for the Company’s cosmetics products to attract or retain consumers, are expensed as incurred, and totaled
$9,223,750, $9,909,017and $8,703,392for the years ended December 31, 2024, 2023 and 2022, respectively.

Outbound shipping charges were shipping and freight
expenses in connection with sales of products, and were expensed as incurred. For the years ended December 31, 2024, 2023 and 2022,
the Company incurred outbound shipping expenses of $2,759,561, $3,520,377and $3,320,485, respectively.

General and
administrative expenses

General and administrative expenses primarily
consist of employee related expenses for administrative functions, including accounting, finance, tax, legal and human relations; costs
associated with these functions including facilities and equipment depreciation expenses, rental and other general corporate related expenses.

Employee benefits

The
full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment
insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits
based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant
PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were
$406,693, $603,065and $437,880for the years ended December 31, 2024, 2023 and 2022, respectively. In addition to the above government
mandated defined contribution plans, the Company has no further obligations to employee benefits.

Value-added
tax

The Company is subject to value added tax (“ VAT”)
and