Company: BGHL
Filing Date: 2025-10-28
Form Type: F-1/A
Source: 0001213900-25-102958
Chunk: 67

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-28
Form: F-1/A
Chunk 67
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 to the uses of the net proceeds from this offering, and such uses may not produce income or increase our share price. We currently intend to use the net proceeds from this offering to (i) expand our market reach and strengthen our sales and distribution infrastructure (approximately 45%), (ii) enhance our brand awareness and invest in marketing and advertising initiatives (approximately 35%), and (iii) for general corporate purposes (approximately 20%). See “ Use of Proceeds” for additional information. 32 If we are classified as a passive foreign investment company, United States taxpayers who own our securities may have adverse United States federal income tax consequences. A non -U.S. corporation such as ourselves may be classified as a passive foreign investment company, which is known as a PFIC, for any taxable year if, for such year, either •At least 75% of our gross income for the year is passive income; or •The average percentage of our assets (determined at the end of each quarter) during the taxable year that produce passive income or that are held for the production of passive income is at least 50%. Passive income generally includes dividends, interest, rents, royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. taxpayer who holds our securities, the U.S. taxpayer may be subject to increased U.S. federal income tax liability and may be subject to additional reporting requirements. It is possible that, for our current taxable year or for any subsequent year, more than 50% of our assets may be assets which produce passive income. We will make this determination following the end of any particular tax year. Although the law in this regard is unclear, we treat our affiliated entity as being owned by us for United States federal income tax purposes, not only because we exercise effective control over the operation of such entity but also because we are entitled to substantially all of its economic benefits, and, as a result, we combine its operating results in our combined financial statements. For purposes of the PFIC analysis, in general, a non -U.S. corporation is deemed to own its pro rata share of the gross income and assets of any entity in which it is considered to own at least 25% of the equity by value. For a more detailed discussion of the application of the PFIC rules to us and