Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 581

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 581
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877  
     100.0%
  
    Gross profit percentage 
     52.9% 
     -  
     100.0% 

    Total 

    Gross profit 
    $4,774,605  
    $115,943  
    $4,658,662  
     4,018.1%
  
    Gross profit percentage 
     7.2% 
     3.6% 
     3.7% 

For
the year ended June 30, 2025 and 2024, our overall gross profit percentage was 7.2% and 3.6%, respectively. The increase in gross
profit percentage of 3.7% was primarily due to the increases in gross profit percentage for mobile phone products, wearable products and
others and app service commission revenue and others.

Gross
profit percentage of tablets dropped from 23.5% to 14.1% from the year ended June 30, 2024 to the same period in 2025. This was primarily
due the decrease of sales of those with higher unit selling prices and lower unit purchase prices.

Gross
profit (loss) percentage for mobile phones increased from (1.5)% to 3.5% for the year ended June 30, 2024, to the same period in
2025. This was primarily due to the increasing sales of new phone models with higher gross profit margins.

For
the year ended June 30, 2025, our gross profit percentage of wearable products was 11.7%. We did not have this kind of products for the
year ended June 30, 2024.

For
the year ended June 30, 2025, our gross profit percentage of App service commission and others was 100.0%. This high margin was primarily
attributable to the nature of App service commission revenue, which was commission based revenue that was earned at a point in time when
the revenue is generated from the App, that is when clicks and/or impressions, activation of Apps, and installation of additional Apps
occur at a point in time when the end users of the mobile devices interact with those Apps. We earned the App revenue share (service
commission) from our partners without incurring any direct cost, as the pre-installation expenses were included in the research and development
expenses prior to installation, and any labor costs with minimal time spent were immaterial to