Company: NIVFW
Filing Date: 2025-08-22
Form Type: DRS
Source: 0001213900-25-079717
Chunk: 112

Company: NewGenIvf Group Ltd
Filing Date: 2025-08-22
Form: DRS
Chunk 112
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 in the first
quarter of 2023. A prolonged downturn in the PRC economy generally could materially and adversely affect NewGenIvf’s results of
operations and there is a significant likelihood that NewGenIvf’s actual results over the time periods and under the scenarios covered
by the projections would be different. However, according to World Bank Group, China’s GDP grew 5.2% and 3% in 2023 and 2022 respectively.
In 2024, according to National Bureau of Statistics of China, China GDP grew 5%. NewGenIvf believes that if recovery of the PRC economy
is sustainable, it might increase the demand for NewgenIvf’s services and therefore in turn affect NewGenIvf’s results of
operations.

Fluctuation of costs

NewGenIvf’s costs primarily
include clinic costs, cost of goods sold, selling and marketing expenses and general and administrative expenses, details of which are
set out below.

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NewGenIvf expects its cost
structure to evolve as it develops and expands its business. As NewGenIvf continues to develop new services and technologies, NewGenIvf
expects to incur additional costs in relation to its raw materials procurement, production and sales and marketing, among other things.
Moreover, to support NewGenIvf’s business growth, it expects to increase its headcount, particularly for its lab and nurse team,
and incur higher staff costs as a result.

Ability to maintain trust of clients and reputation in the industry

The success of NewGenIvf’s
business will depend to a large extent on its ability to gain broad acceptance of its services from clients. Reputation is crucial in
keeping existing clients and attracting new clients. NewGenIvf’s reputation depends on a number of factors, including for example
the success, effectiveness, quality and pricing of its services, service offerings of its competitors, the effectiveness of its marketing
efforts to drive awareness and the demand for fertility services, which eventually will affect its ability to maintain clients and attract
new clients. Therefore, NewGenIvf’s success will depend to a large extent on its ability to maintain its reputation in the industry
and its clients’ trust, which would affect the number of its clients and treatment cycles that will in turn affect its revenues.

NewGenIvf believes that the
medical facilities in its network are increasingly recognized among clients, for their service quality, technological expertise and patient
experience. NewGen