Company: GINT
Filing Date: 2025-03-12
Form Type: DRS/A
Source: 0001213900-25-022887
Chunk: 69

Company: Gifts International Holdings Ltd
Filing Date: 2025-03-12
Form: DRS/A
Chunk 69
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 firms at different levels. Further, consumers in this industry often gravitate towards large -scaleand notable market participants, further driving market consolidation in favor of these large -scalecompanies. Industry players are increasingly pursuing horizontal and vertical business expansions to diversify their revenue streams, strengthen market positions and lower operational and management costs. Furthermore, new competitors may emerge from time to time, which may further intensify the competition. Increased competition may reduce our margins and market share and impact brand recognition, or result in significant losses. When we set prices, we have to consider how competitors have set prices for the same or similar products. When they cut prices or offer additional benefits to compete with us, we may have to lower our own prices or offer additional benefits or risk losing market share, either of which could adversely affect our financial condition and results of operations. Our ability to effectively compete will depend on various factors, including our ability to expand our product portfolio, to enhance marketing efficiency, to pursue collaborations with famous brands and to maintain our timely fulfillment capability. Failure to successfully compete may prevent us from increasing or sustaining our revenue and profitability and potentially lead to a loss of market share, which could have a material and adverse effect on our business, financial condition, results of operations and cash flows. Our business depends on a strong brand, which we might not be able to maintain or enhance. We must maintain and enhance our “GiveGiftBoutique” brand to expand our customer base and our revenues. We believe that the strong awareness of our brand contributes to recurring customers’ orders, and maintaining and enhancing our brand is critical to expanding and retaining our base of customers and suppliers. We intend to substantially increase our expenditures for creating and maintaining brand loyalty and raising awareness of our additional product offerings. However, if we fail to advertise and market our products effectively, we may not succeed in establishing our brands, we will lose customers and our revenues and our financial performance will be adversely affected. The disruption of supplier relationships could materially and adversely affect our business and results of operations. Our suppliers are primarily comprised of suppliers of flowers, fruits and gourmet, and logistics service providers. Our directors believe that identifying high -qualitysuppliers and maintaining a stable business relationship with them are critical for our business operations. We had over 100 suppliers as of March 31, 2024. Maintaining strong relationships with these suppliers is important to the growth of our business. In particular, we depend significantly on our ability to directly procure flowers, fruits and gourmet products from suppliers on favorable terms. However, as we