Company: AGCC
Filing Date: 2025-10-22
Form Type: 424B4
Source: 0001213900-25-101076
Chunk: 89

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-10-22
Form: 424B4
Chunk 89
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 IPO, we incurred substantial professional fees, primarily consisting of audit fees paid to our auditors for the audit of our combined financial statements for the years ended December31, 2024 and 2023. Our administrative expenses also increased significantly due to our rapid growth and expansion. With the impending IPOs and increased regulatory scrutiny, we strengthened our corporate governance framework, implemented robust compliance measures, and enhanced internal controls, resulting in additional administrative costs. The significant increase in general and administrative expenses in 2024 was a strategic investment necessary to facilitate our rapid growth, support our IPOs aspirations, and position ourselves for long -termsuccess in the competitive whisky industry. While these expenses impacted profitability in the short term, they laid the foundation for future growth and value creation for us and our stakeholders. Sales and distribution expenses Sales and distribution expenses rose to US$45,378 in 2024, up 221% from US$14,127 in 2023. The increase reflects expanded marketing and distribution efforts to support higher sales volumes and market expansion. 60 Income from Operations Income from operations was US$1,014,584 in 2024, a 239% increase from US$299,144 in 2023. This substantial growth in operating income reflects our ability to scale operations efficiently while maintaining strong gross margins. The increase was primarily attributable to the significant growth in sales and the improvement in gross profit margin during the year. Our revenue in 2024 reached US$2,537,743, representing a significant increase of 186% compared to the previous year. In addition to the substantial growth in sales, we also achieved a significant improvement in our gross profit margin, which increased from 41% in 2023 to 50% in 2024. The combination of robust revenue growth and improved gross profit margins contributed significantly to the substantial increase in income from operations in 2024. This strong operating performance demonstrates our ability to capitalize on growth opportunities while maintaining cost discipline and operational efficiency, positioning it for continued success in the competitive whisky industry. Income tax expenses Our income tax expense for the fiscal years 2023 and 2024 were US$60,874 and US$238,935, respectively. The increase in income tax expense in 2024 was primarily driven by higher taxable income generated during the year. Despite the increase in income tax expense, our effective tax rate remained relatively stable, with no significant changes compared to the previous year. As a company operating in Taiwan, our income tax obligations are governed by the local tax authorities