Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 78

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 78
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Ivf did not
generate any revenue from surrogacy and related ancillary caring services.

In surrogacy and ancillary
caring services, embryo from intending parents is implanted in the surrogate mother sub-contracted by NewGenIvf. During the pregnancy
period of the surrogate mother, NewGenIvf provides ancillary caring services including maternity caring services such as regular body
check and provision of vitamins, supplements and medicines to surrogate mothers, documentation service, and hotel accommodation services.
Revenue from surrogacy and ancillary caring services is recognized at a point in time when the surrogate mother gives birth.

Cost of revenue

The following table sets
forth a breakdown of NewGenIvf’s cost of revenue by the nature of the cost, in absolute amounts and as percentages of total cost
of revenues, for the periods indicated.

                              For the Year ended December 31,                                                                
                              2024                                                           2023                            
                              US$                                                            US$                             
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cost of revenues                                                                                                           
  Cost of goods sold                                                 629,620       17.5                  594,984       17.2  
  Clinic costs                                                     2,976,861       82.5                2,859,384       82.8  
  Total cost of revenues                                           3,606,481      100.0                3,454,368      100.0  

Cost of goods sold. Cost
of goods sold primarily consisted of purchase and direct cost for IVF treatment services and surrogacy and ancillary caring services.
NewGenIvf’s cost of goods was mostly recognized during the provision of IVF treatment services.

Clinic costs. Clinic
costs primarily consisted of sub-contracting charges, office supplies and staff salaries and bonus of NewGenIvf’s clinics. Sub-contracting
charges represented fees paid to agents who supervised and managed the whole IVF services for customers who utilized third party independent
clinics, recruited surrogate mothers and assisted in the documentation, consulting and medical treatment arrangement throughout treatment
procedure of surrogacy service.

Gross profit and gross margin

The following table sets
forth NewGenIvf’s gross profit in absolute amounts and its gross margin as percentages of total revenues, for the periods indicated.

                    For the Year ended December 31,                                                              
                    2024                                                          2023                           
                    US$                                                           US$                            
 ─