Company: GINT
Filing Date: 2025-08-15
Form Type: F-1/A
Source: 0001213900-25-077286
Chunk: 205

Company: Gifts International Holdings Ltd
Filing Date: 2025-08-15
Form: F-1/A
Chunk 205
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365 |      | $   | 91,824,956 |     | $   | 11,802,845 |

F-12 GIFTS INTERNATIONAL HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.) •Cost of Revenues Cost of revenues consists primarily of the cost of floral and non -floralmerchandise sold from inventory or through third parties, bouquet fulfillment costs, and the cost associated with wrapping and packaging. •Shipping and Handling Costs Shipping costs incurred to deliver the products from the workshop to the designated location of the customer orders totaled HK$4,550,399 and HK$4,395,672 (US$565,004) for the years ended March 31, 2024 and 2025, respectively. •Sales and Marketing Costs Marketing and sales expense consists primarily of advertising expenses, online portal and e -catalogexpenses and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. The Company expenses all advertising costs, at the time the advertisement is first shown. Advertising expense was HK$8,434,263 and HK$6,686,768 (US$859,493) for the years ended March 31, 2024 and 2025, respectively. •Technology and Development Expense Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with repair maintenance, or the development of website content are expensed as incurred. •Segment Reporting ASC Topic 280, Segment Reporting(“ASC 280”), establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. In accordance with ASU No. 2023 -07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, the Company considered whether additional disclosures were required, including significant segment expenses and measures used by the chief operating decision maker (“CODM”). The Company’s CODM is the Chief Executive Officer, who is responsible for reviewing performance and making decisions regarding resource allocation. For the years ended March 31,