Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 32

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 32
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 signed a Statement
of Protocol with the CSRC and the PRC MOF in respect to cooperation on the oversight of PCAOB-registered public accounting firms based
in mainland China and Hong Kong. Pursuant to the Statement of Protocol, the PCAOB conducted inspections on select registered public accounting
firms subject to the Determination Report in Hong Kong between September 2022 and November 2022. On December 15, 2022, the PCAOB board
announced that it has completed the inspections, determined that it had complete access to inspect or investigate completely registered
public accounting firms headquartered in mainland China and Hong Kong, and voted to vacate the Determination Report. As a result of the
announcement, any companies audited by registered public accounting firms headquartered in mainland China and Hong Kong would not face
immediate threat of trading prohibitions at this time. However, if any regulatory change or step taken by PRC regulators in the future
precludes the PCAOB from accessing auditing papers of registered public accounting firms in mainland China and Hong Kong, or the PCAOB
re-evaluates its determination as a result of any obstruction with the implementation of the Statement of Protocol in the future, then
the companies audited by those registered public accounting firms may be subject to a trading prohibition on U. S. markets pursuant to
the HFCA Act. On December 29, 2022, the Consolidated Appropriations Act, 2023 (the “ CAA”) was signed into law by former President
Biden. The CAA contained, among other things, an identical provision to the AHFCAA, which reduces the number of consecutive non-inspection
years required for triggering the prohibitions under the HFCA Act from three years to two.

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Our current auditor
is based in the United States and has been inspected by the PCAOB on a regular basis. However, in the event it is later determined that
the PCAOB is unable to inspect or investigate completely our current auditor because of a position taken by an authority in a foreign
jurisdiction, then such lack of inspection could cause trading in our securities to be prohibited under the HFCA Act and ultimately result
in a determination by a securities exchange to delist our securities. Delisting of our Ordinary Shares would force holders of our Ordinary
Shares to sell their Ordinary Shares. The market price of our Ordinary Shares could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions,