Company: EGG
Filing Date: 2025-03-28
Form Type: F-1
Source: 0001641172-25-001072
Chunk: 79

Company: ENIGMATIG LTD
Filing Date: 2025-03-28
Form: F-1
Chunk 79
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178,356 as we focused on existing clients rather than actively seeking new clients,
which usually incur higher commission fees. Such decrease was offset by (i) an increase in client operation cost from US$241,302
for the year ended September 30, 2023 to US$281,614 for the year ended September 30, 2024 as the
nature of our client base shifted from acquisition to maintenance. Acquisition primarily relies on sales personnel and third-party professional,
client maintenance incurs higher operations-related costs and (ii) an increase in payroll as the number our employees increase from
14 as of September 30, 2023 to 15 as of September 30, 2024.

Gross profit & gross profit margin

Our gross profit decreased by
US$471,089 or 15.0% from US$3,134,816 for the year ended September 30, 2023 to US$2,663,727
for the year ended September 30, 2024. This decrease was primarily driven by the decrease in corporate services income
in the year ended September 30, 2024 compared with the year ended September 30, 2023. Our gross profit margin
decreased slightly from 68.0% in the year ended September 30, 2023 to 67.1% in the year ended
September 30, 2024. The decrease in margins was primarily driven by fixed costs, particularly staff costs, remaining relatively
stable despite low amounts of corporate services income for the year ended September 30, 2024 compared to 2023.

Payroll and employee benefits

Payroll and employee benefits
decreased by US$343,966, or 44.6%, from US$770,411 for the year ended September 30, 2023 to
US$426,445 for the year ended September 30, 2024. The decrease of payroll and employee benefits was primarily
due to a one-off bonus paid to our directors and senior management in Fiscal 2023 that did not recur in Fiscal 2024.

Operating lease expenses

Operating lease expenses decreased
by US$19,527, or 17.0%, from US$115,059 for the year ended September 30, 2023 to US$95,532
for the year ended September 30, 2024. The decrease of operating lease expenses was primarily driven by (i) the move to a smaller