Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 74

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 74
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 Cost of goods sold. NewGenIvf’s cost of goods sold primarily consisted of purchase and direct cost for IVF treatment services and surrogacy and ancillary caring services, most of which are reco...  
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  Selling and marketing expenses. NewGenIvf’s selling and marketing expenses primarily consisted of social media expense. Its selling and marketing expenses represented approximately 3.8% and 0.4...  
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  General and administrative expenses. NewGenIvf’s general and administrative expenses primarily consisted of depreciation in operating lease right-of-use (“ ROU”) assets, staff salaries and dire...  
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NewGenIvf expects its cost
structure to evolve as it develops and expands its business. As NewGenIvf continues to develop new services and technologies, NewGenIvf
expects to incur additional costs in relation to its raw materials procurement, production and sales and marketing, among other things.
Moreover, to support NewGenIvf’s business growth, it expects to increase its headcount, particularly for its lab and nurse team,
and incur higher staff costs as a result.

Ability to maintain trust of clients and reputation in the industry

The success of NewGenIvf’s
business will depend to a large extent on its ability to gain broad acceptance of its services from clients. Reputation is crucial in
keeping existing clients and attracting new clients. NewGenIvf’s reputation depends on a number of factors, including for example
the success, effectiveness, quality and pricing of its services, service offerings of its competitors, the effectiveness of its marketing
efforts to drive awareness and the demand for fertility services, which eventually will affect its ability to maintain clients and attract
new clients. Therefore, NewGenIvf’s success will depend to a large extent on its ability to maintain its reputation in the industry
and its clients’ trust, which would affect the number of its clients and treatment cycles that will in turn affect its revenues.

NewGenIvf believes that the
medical facilities in its network are increasingly recognized among clients, for their service quality, technological expertise and patient
experience. New