Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 32

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 32
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operation and overall performance.

As
a corporation licensed with the HKSFC to carry on regulated activities, Grande Capital, our Operating Subsidiary is required under the
SFO and Securities and Futures (Financial Resources) Rules (Chapter 571N of the Laws of Hong Kong) (the “ FRR”)
to maintain a minimum amount of paid-up share capital and liquid capital. As of the date of this annual report, our Operating Subsidiary
is in compliance with the respective regulatory capital requirements. However, there is no assurance that such failure will not happen
in the future. Our liquid capital may be tightened when we commence our underwriting and placing services or carry out our proposed expansion
plans. Failure to meet the above requirement may cause the HKSFC to suspend the licenses of the Operating Subsidiary, impose conditions
in relation to our regulated activities, or take other appropriate disciplinary actions against us, which may adversely affect our business
operations and financial performance. Failure to meet the above requirement could also affect client confidence, our ability to grow,
our costs of funds, our ability to pay dividends on Class A Ordinary Shares, our ability to make acquisitions, and in turn, our business,
results of operations, and financial condition.

Our revenue and profitability are highly
unpredictable, since (1) the revenue from the IPO corporate finance advisory business was generated on a project-by-project
basis and is non-recurring in nature; (2) progress-based payment arrangement; and (3) possible default or delay
of payments from our clients.

Our revenue was primarily and substantially derived from the corporate
finance advisory service, which includes listing sponsorship services, securities related services, financial advisory services, independent
financial advisory services, compliance advisory services. Revenue of the corporate finance activities is to a large extent derived from
transactions for which our Operating Subsidiary is engaged on a project basis with relevant terms and conditions (including professional
fees and payment schedules) being negotiated and determined on a project-by-project basis subject to, amongst other things, the complexity
of the transaction, the estimated time commitment and the overall capacity of the project execution team of our Operating Subsidiary.
Since the mandates and the professional fee of the mandates, including the sponsor fee and financial advisory fee, are negotiated on a
project-by-project basis, revenue generated from the corporate finance advisory services may fluctuate from time to time and may
not recur. There is also no assurance that the clients who have previously sought our