Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 7

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 3
Chunk 7
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 engaged in transactions with related parties, and such
transactions present possible conflicts of interest that could have an adverse effect on our business and results of operations.

We have entered into certain transactions with
related parties. See “ Item 7B. Related Party Transactions.” We believe the terms obtained or consideration that we paid
or received, as applicable, in connection with these transactions were comparable to terms available or the amounts that would be paid
or received, as applicable, in arm’s-length transactions.

We may in the future enter into additional transactions
with any of our directors, officers or principal shareholders, or any members of their immediate family or entities controlled by them.
Such transactions present potential for conflicts of interest, as the interests of these parties may not align with the interests of the
Company and our unaffiliated shareholders with respect to the negotiation of, and certain other matters related to, our purchases from
and other transactions with such entities. Conflicts of interest may also arise in connection with the exercise of contractual remedies
under these transactions, such as for events of default.

Our Audit Committee is responsible for reviewing
and approving all material related party transactions. We rely on the laws of the Cayman Islands, which provide that the directors
owe a duty of care and a duty of loyalty to our Company. Under Cayman Islands law, our directors have a duty to act honestly, in good
faith, and view our best interests. Our directors also have a duty to exercise the care, diligence, and skills that a reasonably prudent
person would exercise in comparable circumstances. Nevertheless, we may have achieved more favorable terms if such transactions had not
been entered into with related parties. These transactions, individually or in aggregate, may have an adverse effect on our business and
results of operations or may result in litigation or enforcement actions by the SEC or other agencies.

There is no assurance that our IoT agriculture
projects will operate as intended.

We face risks related to the performance and reliability
of our IoT agriculture projects, and there is no assurance they will operate as intended. These projects are relatively new and have not
been in operation for an extended period, which increases the likelihood of design, integration, or deployment issues that may impair
functionality. Our systems depend on a combination of hardware, firmware, connectivity, analytics, and third-party integrations that can
be affected by network instability, sensor failure, power interruptions, adverse environmental conditions, software defects, cybersecurity
incidents, or insufficient user adoption and training. In addition, the success of