Company: BGHL
Filing Date: 2025-09-11
Form Type: F-1/A
Source: 0001213900-25-086807
Chunk: 48

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-09-11
Form: F-1/A
Chunk 48
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 directly dependent on suppliers’ adherence to ethical sourcing, handling, and storage standards for high -endingredients such as Wagyu beef, sea cucumber, abalone, and fine wines and spirits. All of our suppliers are from Hong Kong. The geographic concentration of our suppliers exposes us to operational risks beyond our control, including port congestion, regulatory changes, or extreme weather events, which could disrupt shipments or increase costs. We do not control our suppliers’ practices and cannot guarantee their compliance with evolving food safety regulations or certification requirements. Any quality deficiencies, even attributable to suppliers, may damage our reputation among B2B clients, leading to reduced demand, pricing pressures, or loss of certifications critical to our premium market positioning. 21 We have a high dependency on our primary supplier — Draco Catering Management Limited (“Supplier A”), a food -and-beveragemanagement company incorporated in Hong Kong. If our primary supplier terminates our business relationship, it may have a material adverse impact on our operating results. We are actively taking measures to reduce our reliance on this single supplier, including expanding new supplier channels and optimizing our purchasing strategy. However, there is no guarantee that these measures will entirely eliminate the risk of dependency on a single supplier. If our relationship with our primary supplier changes in the future, we may encounter unstable raw material supply and cost increases, which in turn could affect our profitability. Our operations are critically reliant on a limited number of suppliers. Our operations are critically reliant on a limited number of suppliers, with our top five suppliers collectively accounting for approximately 99.90% of our total purchases in the fiscal year ended December31, 2023, and 100.00% in the fiscal year ended December31, 2024, including one primary supplier — Supplier A, representing approximately 57.40% of our total purchases in 2024. Supplier A was the largest supplier of the Group for the years ended December31, 2024 and 2023. In 2024, 87.0% of frozen food, our most popular product, was purchased from Supplier A. This significant concentration exposes us to substantial risks: any disruption in the operations of these key suppliers, whether due to unforeseen events, quality control issues, or changes in their commercial terms, could severely impede our ability to procure essential products, leading to inventory shortages, delayed deliveries, 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