Company: CCHH
Filing Date: 2025-08-07
Form Type: DRS/A
Source: 0001213900-25-072802
Chunk: 67

Company: CCH Holdings Ltd
Filing Date: 2025-08-07
Form: DRS/A
Chunk 67
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 costs incurred for restaurants’ daily operations were US$0.35 million and US$0.35 million for the years ended December31, 2023 and 2024, respectively, which remained relatively stable. Depreciation of property and equipment.Our depreciation of property and equipment primarily including depreciation of leasehold improvements and equipment used for restaurant operations, and depreciation of buildings for leasing out, decreased from US$0.29 million for the year ended December31, 2023 to US$0.23 million for the year ended December31, 2024, which due to the disposal of property and equipment in one restaurant outlet. Repairs and maintenance costs.Our repairs and maintenance costs decreased from US$0.31 million for the year ended December31, 2023 to US$0.10 million for the year ended December31, 2024 mainly due to the decrease of consumable tool expenses for repairs and maintenance. 49 Others.Our other miscellaneous costs were approximately US$0.02 million for the year ended December31, 2023 to US$0.02 million for the year ended December31, 2024, respectively. Gross Profit and Gross Profit Margin Our gross profits were US$2.21 million and US$2.41 million for the years ended December31, 2023 and 2024, respectively, representing a gross profit margin of 22.6% and 27.0%, respectively, primarily attributable to our efforts in further optimization in standardized operations to avoid waste of food ingredients and redundant staff, which led to improvement in overall cost control, especially in the material costs, payroll costs, and repairs and maintenance costs. Operating Expenses Selling and Marketing Expenses Our selling and marketing expenses decreased by 46.5%, from US$0.49 million for the year ended December31, 2023 to US$0.26 million for the year ended December31, 2024, which was mainly attributable to the decrease in expenses we incurred to advertise and promote our brand and restaurants by actively reducing ineffective marketing activities. General and Administrative Expenses Our general and administrative expenses decreased by 16.7% from US$0.98million for the year ended December31, 2023 to US$0.82million for the year ended December31, 2024, respectively, primarily due to a decrease in insurance expenses of US$0.07million and a decrease in rental expenses of US$0.05million, which was mainly due to the disposal of one company -ownedrestaurant outlet