Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 22

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 22
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 system is based in part on government
policies and administrative rules and many have retroactive effects. As a result, we cannot predict the effect of future developments
in China’s legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement
thereof, or the preemption of local regulations by national laws.

Any administrative
and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.
Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual
terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we
enjoy than in more developed legal systems.

Some international
observers and human rights organizations have expressed doubts about the future of the relative political freedoms enjoyed in Hong Kong
and the PRC’s pledge to allow a high degree of autonomy in Hong Kong. They considered, for example, that the proposals in Article
23 of the Basic Law in 2003 (which was withdrawn due to mass opposition) might have undermined autonomy. On June 10, 2014, Beijing released
a new report asserting its authority over the territory. This ignited criticism from many people in Hong Kong, who were of view that
the PRC leadership was reneging on its pledge to abide by the “one country, two systems” policy that allows for a democratic,
autonomous Hong Kong under Beijing’s rule. On July 14, 2020, the United States signed an executive order to end the special status
enjoyed by Hong Kong post-1997. As the autonomy currently enjoyed may be compromised, it could potentially impact Hong Kong’s common
law legal system and ma, in turn, bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in
turn, materially and adversely affect our business and operations. On March 23, 2024, the Hong Kong government has enacted the Safeguarding
National Security Ordinance (“ SNSO”), which is a domestic security legislation under Article 23 of the Basic Law, to prohibit
four types of offenses, including secession, subversion, terrorist activities and collusion with a foreign country or with external elements
to endanger national security, as well as other offences relating to the endangering of national security, which has been considered
as having further significantly undermined the autonomy of Hong Kong. It is difficult for us to predict the degree of adverse impact