Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 25

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 25
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 render us an employer
of that personnel under the Employment Ordinance (Chapter 57 of the Laws of Hong Kong) (the “ Employment Ordinance”) given
that there is no employment relationship between the personnel registered with us and our Group, nor is there an employer-employee relationship.
So far as our Group is concerned, the circumstances of engagement tend to suggest that the registered personnel would most likely be
treated as independent contractors, rather than employees, of our Group since (i) such personnel generally have their right to decide
whether to provide services to the customers introduced by our Group; (ii) they do not provide exclusive services to customers introduced
by the Group; and (iii) they have the right to transfer or outsource the service opportunities introduced by our Group to another registered
personnel. If we are considered to be an employer of the personnel placed by us under the applicable laws and regulations of Hong Kong,
we may be liable for various obligations as an employer, such as contributing to the mandatory provident fund (including all possible
penalties applicable to employers under the Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong), compensating the personnel for annual leave and statutory holiday entitlements, as well as providing other benefits
to the personnel as required under the applicable laws and regulations of Hong Kong. This may result in liabilities and cause other material
and adverse effects on our business, results of operations and financial positions.

  14  

We
have significant working capital needs and if we are unable to satisfy those needs from cash generated from our operations or borrowings
under our debt instruments, we may not be able to continue our operations.

We
require significant amounts of working capital to operate our business. We often have high receivables from our customers, and as a human
resources and staffing company, we are prone to cash flow imbalances because we have to fund payroll payments to temporary workers before
receiving payments from clients for our services. Cash flow imbalances also occur because we must pay temporary workers even when we
have not been paid by our customers. If we experience a significant and sustained drop in operating profits, or if there are unanticipated
reductions in cash inflows or increases in cash outlays, we may be subject to cash shortfalls. If such a shortfall were to occur for
even a brief period of time, it may have a significant adverse effect on our business. In particular, we use working capital to pay expenses
relating