Company: GINT
Filing Date: 2025-06-06
Form Type: F-1
Source: 0001213900-25-052213
Chunk: 74

Company: Gifts International Holdings Ltd
Filing Date: 2025-06-06
Form: F-1
Chunk 74
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. We may have to downgrade their quality level or even discard them and absorb the relevant costs. In addition, repairing or adding equipment and machinery for our workshop may be expensive and time consuming. We are dependent on external financing to support our business growth. We rely on bank borrowings to finance our operations. Our total borrowings amounted to approximately $0.9million and $0.8million as at March 31, 2024 and 2023, respectively. Our ability to obtain adequate financing on terms which are acceptable to us depends on a number of factors such as our financial strength, our creditworthiness and our prospects, and other factors that are beyond our control, including general economic, industry, liquidity and political conditions, the terms on which financial institutions are willing to extend credit to us, central bank’s policy rates and cash reserve requirements for banks, and the availability of other sources of debt financing or equity financing. There may also be covenants that restrict our ability to pay dividends and/or restrict our flexibility in utilizing working capital to react to changes in the business environment. Additionally, our business requires significant amount of working capital to pay expenses relating to inventory procurement, employee salaries, and operational overhead arising therefrom can adversely affect our operation and curtail our business growth. If all or a substantial portion of our bank facilities are withdrawn, or we cannot access additional banking facilities, our operations and financial performance will be adversely and materially affected. In addition, our finance costs amounted to $24,062 and $26,305, which represented 2.5% and 5.1% of our profit before income tax for the two years ended March 31, 2024 and 2023, respectively. Given that we rely on these facilities to finance our operations, any increase in interest rates on facilities extended to us may have a material and adverse impact on our financial performance. We may default on our obligations under our credit facilities. We have entered into several banking facilities with banks in Hong Kong. $0.9million and $0.8 are guaranteed by Mr.Wong, the Controlling Shareholder and Hong Kong Mortgage Corporation Limited as at March31, 2024 and 2023, respectively. A failure to repay any of the indebtedness under our banking facilities as they become due or to otherwise comply with the covenants contained in any of such agreements could result in an event of default thereunder. If not cured or waived, an event of default under any of such agreements could enable the lender thereunder to