Company: NTCL
Filing Date: 2025-02-18
Form Type: 20-F
Source: 0001410578-25-000153
Chunk: 97

Company: NetClass Technology Inc
Filing Date: 2025-02-18
Form: 20-F
Item: Item 5
Chunk 97
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 driven by the rapid growth in the PRC online education market.

Our marketing expenses accounted for approximately 77.0% of the total selling and marketing expenses for the fiscal year ended September 30, 2024.

In 2024 we reduced market expense, our marketing expense was $296,850, $513,474 and $1,202,430 for the years ended September 30, 2024, 2023 and 2022, respectively. Our marketing expenses were 77.0%, 84.6% and 92.6% of the total selling and marketing expenses for the years ended September 30, 2024, 2023 and 2022, respectively. The decrease in marketing expenses has to some extent led to a decrease in subscription service revenue, from $5,877,323 in 2022 to $2,776,175 in 2023, and further decrease to $2,288,806, while our application development services have maintained growth. Since we operate in a highly competitive market, brand maintenance and enhancement directly affect our ability to improve our market position.

We plan to further increase brand awareness and market share by (i) promoting our products and services in different countries especially in southeast Asia, (ii) engaging marketing partners to expand market reach, and (iii) explore new marketing channels, especially internet and social media marketing.

Customers and Suppliers

Major Customers

We have a B2B business model and we mainly serve enterprise/institutional customers, including: enterprises (including in-house on-job training department), educational institutions (including schools and training companies) and government agencies (mainly Municipal Education Commission). The categories of our customers and the ratio to revenue are as follows:

Major customers that make up 10% or more of revenue for the years ended September 30, 2024, 2023 and 2022 are as follows:

                                                         2024      2023      2022  
  Percentage of the Company’s revenue                                              
 ───────────────────────────────────────────────────────────────────────────────────
  Gallop Trading Limited                                 35.6      43.1      —     
  Shanghai Detuo Information Technology Co., Ltd         *         10.6      *     
  Zhucai Technical Training (Beijing) Co., Ltd           *         *         14.1  
  Shanghai Lingjiang Electronic Technology Co., Ltd      *         *         11.7  
  Shanghai Yiqilai Culture Communication Co., Ltd