Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 73

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 73
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 faster-than-expected
development of potential competitors may affect its market position and demand for its services and cause downward pricing pressure on
its treatments, which may in turn materially and adversely affect its results of operations. Meanwhile, ARS market could also be affected
by the macroeconomic environment and geopolitical events. Uncertainty in the macroeconomic environment, resulting from a range of events
and trends, including the rise in global inflation and interest rates, supply chain disruptions, geopolitical pressures, including the
unknown impact of current and future trade regulations, changes in Asian-Pacific relations, fluctuation in foreign exchange rates, and
associated global economic conditions may result in volatility in ARS market and NewGenIvf’s operating performance. For example,
NewGenIvf derives a substantial portion of its revenue from Chinese clients and as such, its failure to maintain PRC-sourced revenues
and access to new and existing clients from the PRC could materially and adversely affect its results of operations and competitive position.
However, the near-term growth prospects of the PRC economy are unclear due to the uncertain effects of ongoing economic stress caused
by trade and national security policies, and the elevated levels of private and public indebtedness, among others. A prolonged downturn
or slow-growth 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.

  Clinic costs. NewGenIvf’s clinic costs primarily consisted of sub-contracting charges, office supplies and staff salaries and bonus, most of which are recognized during the provision of surroga...  
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