Company: BGHL
Filing Date: 2025-10-01
Form Type: F-1/A
Source: 0001213900-25-094318
Chunk: 52

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-01
Form: F-1/A
Chunk 52
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 potential increases in procurement costs, and an inability to meet customer demand, all of which could materially and adversely affect our revenue, financial condition, and operational results. While we continuously monitor our supplier relationships and seek to diversify our supplier base where strategically feasible, our current high reliance on a limited number of suppliers means that any adverse development concerning these key relationships or their operational capabilities could have a material detrimental effect on our business and prospects. Our profitability is highly susceptible to increases in the market prices of raw materials. As a distributor of globally scarce high -endingredients, our operating margins are directly impacted by fluctuations in procurement costs driven by supply shortages, geopolitical disruptions, climatic events, or shifts in global demand. We lack control over production processes and cannot mitigate rising input costs through operational efficiencies. Fixed -pricecontracts with B2B clients, coupled with competitive pricing pressures in the luxury food market, may limit our ability to pass cost increases to customers. Sustained price escalation could materially reduce our gross margins and strain relationships with high -net -worthcustomers and luxury retail channels. We cannot assure that our hedging mechanisms or supplier negotiations will adequately offset these risks. Product contamination and the failure to maintain food safety and consistent quality could have a material and adverse effect on our brand, business and financial performance. Food safety and quality control are of paramount importance to our reputation and business, and we face an inherent risk of food contamination and liability claims. To ensure food safety and quality, we have established a comprehensive set of standards and requirements covering each facet of our supply chain, ranging from procurement, 22 logistics and warehousing to packaging. However, due to the rapid growth in scale of our operations, there is no assurance that our quality control systems will prove to be effective at all times, or that we can identify any defects in our quality control systems in a timely manner. Our reliance on third -partysuppliers and logistics partners introduces risks beyond our direct oversight. While we mandate compliance with food safety standards through contractual agreements and audits, we exercise no control over their day -to -dayoperations, facilities, or personnel. Supplier negligence, such as failures to maintain hygienic conditions, mishandling during transportation including temperature deviations, or deliberate tampering may compromise product integrity, leading to contamination by pathogens, chemical residues, or adulteration. These risks persist despite our quality assurance protocols and may materialize at any stage of the supply chain. We may be subject to significant liability in the jurisdictions in which our products are sold if the consumption of any of