Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 94

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 94
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 condition, results of operations and prospects may be materially and adversely affected.

Fluctuations in foreign exchange rates

We are a global provider
of integrated cross-border logistics services and air freight forwarding services and our functional currency is the Hong Kong dollars.
Most of our transactions during the periods presented in this annual report are denominated in Hong Kong dollars, Australian dollars
and New Zealand dollars. Historically, our principal exposure to foreign currency fluctuations is mainly with respect to our expenses
incurred denominated in Australian dollars and New Zealand dollars. For the years ended September 30, 2022, 2023 and 2024, we incurred
approximately 47.7%, 54.3% and 62.0% of our cost of revenue, respectively, denominated in foreign currencies for customs clearance fees
and local courier expenses. We do not use currency exchange contract to reduce the risk of adverse foreign currency movements, but we
would closely monitor our exposure from foreign currency fluctuations. Foreign currency fluctuations
had a positive impact on net income for the years ended September 30, 2022, 2023 and 2024. For the years ended September 30,
2022, 2023 and 2024, the foreign exchange gains were $72,974, $118,508 and $156,937, respectively.

Impact of COVID-19

Since late December
2019, the outbreak of COVID-19 spread rapidly throughout China and later to the rest of the world. On January 30, 2020, the International
Health Regulations Emergency Committee of the World Health Organization declared the outbreak a PHEIC, and later on March 11, 2020, a
global pandemic. The COVID-19 outbreak has led governments across the globe to impose a series of measures intended to contain its spread,
including border closures, travel bans, quarantine measures, social distancing, and restrictions on business operations and large gatherings.
From 2020 to the middle of 2021, COVID-19 vaccination programs had been greatly promoted around the globe, however several types of COVID-19
variants emerged in different parts of the world.

Supply chain disruptions
have become a major challenge for the global economy since the start of the COVID-19 pandemic. These shortages and supply-chain disruptions
are significant and widespread. Lockdowns in several countries across the world, labor shortages, robust demand for tradable goods, disruptions
to logistics networks, and capacity constraints have resulted in increases in freight costs and delivery times. Companies