Company: BGHL
Filing Date: 2025-09-25
Form Type: F-1/A
Source: 0001213900-25-091359
Chunk: 97

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-09-25
Form: F-1/A
Chunk 97
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 margin of sales of other products was 5.2% for the year ended December 31, 2024, compared to that of 4.8% for the same period of 2023. The decrease in gross profit was due to the decrease in sales. The management decided to focus more on the sales of frozen food, fine wine and spirit and luxury seafood which have higher gross profit margin. The gross profit margin on sales of other products had remained stable throughout the years. Operating Expenses Operating expenses comprise management fee, transportation, rent, travelling and entertainment. For the year ended December 31, 2024, operating expenses were HK$1,833,642, representing a decrease of HK$764,259 or 29.4%, as compared to HK$2,597,901 for the year ended December 31, 2023. The decrease was contributed by the drop in entertainment expenses as the new management team brought by the current shareholders tightened the budget on such expenses during the year ended December 31, 2024. Administrative Expenses Administrative expenses comprise professional fee, bank charges and other miscellaneous expenses. For the year ended December 31, 2024, administrative expenses were HK$18,248, representing an increase of HK$8,369 or 84.7%, as compared to HK$9,879 for the year ended December 31, 2023. The increase was caused by the higher provision for audit fee for the year ended December 31, 2024.

51

Other Income Other income comprises net exchange gain and sundry income. For the year ended December 31, 2024, other income of the operating entity was HK$5,077, representing a decrease of HK$18,188 or 78.2%, as compared to HK$23,265 for the year ended December 31, 2023. The decrease was due to that there was no exchange gain recognized for the year ended December 31, 2024. Income Taxes Harmony Alliance incorporated in the British Virgin Islands is not subject to taxation. The result of operation of the operating entity is subject to income taxes in Hong Kong. For the year ended December 31, 2024, income taxes of the operating entity were HK$975,000. The operating entity had no income tax expense as at December 31, 2023 as all taxable income was being netted off by available tax losses accumulated from prior years. However, all available deductible temporary differences were fully utilized during the year ended