Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 9

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 9
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 be challenging to secure alternative air
freight carriers that meet our customers’ requirements. We cannot guarantee that we will be able to secure comparable services
from other air freight carriers on comparable or better commercial terms or at all.

An increase in fuel prices may
reduce profitability.

The cost of fuel is
a significant factor affecting the logistics industry in its freight forwarding business, as it impacts the operations of companies through
the air freight rates. As a result, any increase in fuel price could raise our costs, potentially affecting our profitability if we are
unable to pass on the costs to our customers. Fuel costs are subject to substantial fluctuations and influenced by various economic and
political factors, most of which are beyond our control, such as political instability in oil-producing regions.

There may be disintermediation
in the logistics industry and freight forwarding business in the future.

With the growing trend
of digitization, a vast amount of information is now readily available online. The information transparency, coupled with the development
of innovative technologies, such as online marketplaces, electronic payments, and algorithmic order-matching, has led manufacturers and
retailers to seek ways to reduce the number of intermediaries in the supply chain, which may involve manufacturers and retailers shipping
directly to their end customers. The trend of eliminating intermediaries creates disintermediation in our industry and possesses significant
risks to our industry, as any significant decrease in demand for our freight forwarding services could negatively impact our business.

Our business is dependent on information
technology and is subject to cybersecurity risks. A cyberattack may disrupt our operations and compromise the personal data of our customers.

We rely on information
technology to maintain our electronic systems and database in the course of our business operations. Our suppliers’ and customers’
information, flight schedules, and information on our customers’ goods at our warehouses are electronically recorded in our systems.
While we take measures to ensure the security of our information technology systems, our systems are susceptible to outages from fire,
floods, power loss, telecommunications failures, data leakage, human error, hacking and break-ins, cyber-attacks and similar events.
The occurrence of any of these events could disrupt or damage our information technology systems and hamper our internal operations,
disable our ability to handle the bookings of customers efficiently or at all, and adversely impact our customer service, volumes, and
revenues and result in increased cost.

Furthermore, threats
to information technology systems, including as a result of cyberattacks and cyber incidents, continue to