Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 31

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 31
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 and we rely on a limited number of key clients
to generate revenue. Our client concentration risk is exacerbated due to our reliance on different clients, for different services engaged
in different periods, and the fact that the revenue from our corporate finance advisory business was generated on a project-by-project basis
and is non-recurring in nature.

Our concentration risk may be amplified due to
the limited number of listing sponsorship projects that our Operating Subsidiary may sponsor in a given year. For example, our largest
client for the year ended March 31, 2024 engaged our Operating Subsidiary for listing sponsorship and compliance advisory services,
and our largest client for the year ended March 31, 2023 engaged us for listing sponsorship services. Since the listing sponsorship
services, financial and compliance advisory services and referral services are non-recurring in nature, there is no assurance that
our Operating Subsidiary can continue to secure engagements comparable to the similar level as for the year ended March 31, 2024
in the future. If our Operating Subsidiary is unable to continuously secure new sizable mandates, or if the market conditions become unfavorable,
our business and the results of operations may be materially and adversely affected. Since our Operating Subsidiary first obtained its
licenses in 2018, the Operating Subsidiary has sponsored and completed 16 IPOs on the HKSE, amongst of which, 14 IPOs that we have sponsored
and completed are clients from construction industry. We are subject to industry concentration risk as our IPO sponsorship clients are
highly concentrated in the construction industry. If the market conditions and performance of construction industry become unfavorable,
our business and the results of operations may be adversely affected.

Our
goal is to diversify our client base, industries coverage, revenue source and position ourselves as a trusted financial services provider.
However, we cannot assure you that we will be successful in diversifying our client base and reducing our client and industry concentration
risk. Moreover, if we lose a key client or if a client decides to engage in a competitor, and if we are unable to secure new clients
during a period of time in the future, our results of operations, financial conditions, cashflow positions may be adversely and materially
impacted.

For
our business activities, our Operating Subsidiary is required to comply with regulatory capital requirements and to maintain a high level
of funds and liquidity. Failure to comply with these regulatory capital requirements could materially and negatively affect our business