Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 2

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 2
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 report before deciding to invest in our Ordinary Shares. The occurrence
of any of the following risks could have a material adverse effect on our business, financial condition, results of operations, and future
growth prospects. In these circumstances, the market price of our Ordinary Shares could decline, and you may lose all or part of your
investment.

Risks Related to Our Business and Industry

We may be unable to obtain exact
amount of cargo space to facilitate our customers’ needs, and the termination or non-renewal of our block space agreements could
have adverse effect on our results of operations.

In the course of business,
our operating subsidiary Globavend HK obtains cargo space from air freight carriers through block space arrangements and direct booking.
The block space agreements guarantee us a predetermined allocation of air cargo space at a discounted rate compared to prevailing market
rates for a term of nearly 12 months. Shall we wish to obtain more cargo space than the allocated volume under the block space agreements,
the additional cargo space will be subject to the latest market price. There is no guarantee that we will be awarded such additional
cargo space. Further, if the prevailing market rates of air cargo space we source fall below the predetermined rates under the block
space arrangements, we may have to offer cargo space to our customers at rates lower than the predetermined rates; otherwise, our customers
may turn to other freight forwarders that are able to offer cargo space at a lower price.

Further, save for
the cargo space that we procured from air freight carriers that were under the block space agreement, the other cargo spaces offered
by our suppliers are on a first-come, first-served basis with no formal agreement for guaranteed supply of cargo space. Hence, there
can be no assurance that we will be able to source cargo space within our customers’ expected time frame cost-effectively. We cannot
guarantee that it will not happen in the future, and if we cannot obtain sufficient cargo space from our suppliers to meet our customers’
demand, in particular during peak seasons, our reputation within the industry could be adversely affected.

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In addition, these
block space agreements are terminable on 60-days’ notice without penalty by either party to the relevant agreement, namely Globavend
HK or the relevant air freight carriers. We cannot guarantee that these block space agreements will not be terminated before their expiration
or be renewed. The termination or non-renewal of these block space agreements could potentially result in insufficient