Greenpro Capital Corp. Revenue Disclosure

NOTE 2 - REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Revenues

 

The Company’s revenues consist of revenue from provision of business consulting and corporate advisory services (“service revenue”), revenue from the provision of digital platforms and trading of digital assets (“digital revenue”) and revenue from leasing or trading of real estate properties (“real estate revenue”).

 

Revenue from provision of business services

 

For certain service contracts, we assist or provide advisory services to clients in capital market listings (“listing services”). Our services provided to clients are considered as our performance obligations. Revenue and expenses are deferred until the performance obligation is complete and collectability of the consideration is probable. For service contracts where the performance obligation has not been completed, deferred cost of revenue is recorded as incurred and the deferred revenue is recorded for any payments received on such yet to be completed performance obligations. On an ongoing basis, management monitors these contracts for profitability and, when needed, may record a liability if a determination is made that costs will exceed revenue.

 

For other services such as company secretarial, accounting, financial analysis, insurance brokerage services, and other related services (“non-listing services”), upon our completion of such services, our performance obligations are satisfied, and hence, the relevant revenue is recognized. For contracts in which we act as an agent, the Company reports revenue net of expenses paid.

 

The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract.

 

Revenue from provision of digital platforms and trading of digital assets

 

Through our subsidiary, Green-X Corp. in Labuan (“Green-X”), we operate a platform under the Labuan Financial Services and Securities Act 2010 (LFSSA) whereby security token issuers (“Issuers”) offer their security tokens for subscription and trading by investors (“Investors”) through the Green-X digital asset exchange (“Green-X DAX”) platform.

 

Revenue from the provision of the digital platform represents the fees associated with the services for account opening, transactions and listing at the Green-X DAX platform, respectively. We recognize revenues when services have been rendered to clients, that is, performance obligations have been fulfilled.

 

Revenue from the trading of digital assets represents the sales income of digital assets. We recognize revenues when risks and rewards of ownership of the digital assets have been transferred to the buyers; that is, we lose control over the assets sold and the amount of sales revenue can be reliably measured.

 

From December 2024, we have started to issue and sell our digital assets, GX Token, to other investors.

 

Revenue from leasing real estate properties

 

Rental revenue represents rental income from the Company’s tenants. The tenants pay in accordance with the terms in the lease agreements, and the Company recognizes the income ratably over the lease term, as this is the most representative of the pattern in which the benefit is expected to be derived from the underlying assets.

 

Revenue from trading of real estate properties

 

The Company follows the guidance of ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASC 610-20”), which applies to sales or transfers to noncustomers of nonfinancial assets. Generally, the Company’s sales of real estate properties are considered as a sale of a non-financial asset. Under ASC 610-20, the Company de-recognizes its assets and recognizes a gain or loss on the sale of real estate when control of the underlying asset transfers to the buyer.

 

Other than 40% of the real estate properties in Hong Kong were distributed to the non-controlling interest (the “NCI”) of Forward Win International Limited (“FWIL”), a Hong Kong subsidiary of the Company, for its acquisition of the remaining 40% shares of FWIL from the NCI on April 15, 2024, no real estate property was sold during 2025 and 2024.

 

 

Cost of revenues

 

Cost of service revenue

 

Service cost primarily consists of employee compensation and related payroll benefits, company formation costs, and other professional fees directly attributable to the services rendered.

 

Cost of digital revenue

 

Digital cost primarily consists of the cost of technical advisory and IT support to blockchain-based services directly attributable to the cost of digital platforms and digital assets.

 

Cost of rental revenue

 

Rental costs primarily include costs associated with repairs and maintenance, property management fees, insurance, depreciation, and other related administrative costs. Utility expenses are paid directly by tenants.

 

Cost of real estate properties sold

 

Cost of real estate property sold primarily consists of the purchase price of the property, legal fees, improvement costs to the building structure, and other acquisition costs. Selling and advertising costs are expensed as incurred.

 

The following table provides information about disaggregated revenue based on revenue by service lines and revenue by geographic area:

 SCHEDULE OF DISAGGREGATED REVENUE

		2025				2024
		For the years ended December 31,
		2025				2024
Revenue by business line:
Corporate advisory – non-listing services		$	1,063,535			$	1,429,860
Corporate advisory – listing services			780,433				1,662,043
Provision of a digital platform and trading of digital assets			168,240				327,802
Rental of real estate properties			61,349				76,700
Total revenue		$	2,073,557			$	3,496,405

 

		2025				2024
		For the years ended December 31,
		2025				2024
Revenue by geographic area:
Hong Kong		$	786,715			$	1,831,208
Malaysia			430,528				655,725
China			856,314				1,009,472
Total revenue		$	2,073,557			$	3,496,405

 

Deferred costs of revenue

 

For a service contract where the performance obligation has not been completed, deferred cost of revenue is recorded for any costs incurred in advance before completion of the performance obligation.

 

Deferred revenue

 

For a service contract where the performance obligation has not been completed, the deferred revenue is recorded for any payments received in advance before completion of the performance obligation.

 

As of December 31, 2025, and 2024, deferred costs of revenue and deferred revenue are classified as current assets and current liabilities, respectively:

 SCHEDULE OF DEFERRED COST OF REVENUE OR DEFERRED REVENUE

		2025				2024
		As of December 31,
		2025				2024
Current assets
Deferred costs of revenue		$	58,099			$	38,382
Current liabilities
Deferred revenue		$	201,535			$	213,000

 

Changes in deferred revenue during 2025 and 2024 are as follows:

 SCHEDULE OF CHANGES IN DEFERRED REVENUE

		2025				2024
		As of and for the years ended December 31,
		2025				2024
Deferred revenue, beginning of year		$	213,000			$	1,075,404
New contract liabilities			768,968				799,639
Performance obligations satisfied			(780,433	)			(1,662,043	)
Deferred revenue, end of year		$	201,535			$	213,000