Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 36

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 36
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 of fraud. As a result of the scrutiny,
the stocks of many U. S.-listed Chinese companies that have been the subject of such scrutiny have sharply decreased in value. Many of
these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external investigations
into the allegations.

If we become the subject
of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate such allegations
and/or defend the Company. Such investigations or allegations would be costly and time-consuming and likely would distract our management
from our normal business and could result in our reputation being harmed. Our stock price could decline because of such allegations,
even if the allegations are false.

A downturn in the Hong Kong, mainland
China, or global economy, or a change in the economic and political policies of China, could materially and adversely affect our business
and financial condition.

Our business may be
influenced to a significant degree by political, economic, and social conditions in Hong Kong and mainland China generally. The Chinese
economy differs from the economies of most developed countries in many respects, including the amount of government involvement, level
of development, growth rate, control of foreign exchange, and allocation of resources. While the Chinese economy has experienced significant
growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy. The PRC government
has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit
the overall Chinese economy, but they may have a negative effect on us.

Economic conditions
in Hong Kong and mainland China are sensitive to global economic conditions. Although we mainly operate our business in Hong Kong, our
customers principally comprise businesses that operate e-commerce platforms in Hong Kong. As such, the demand for e-commerce logistics,
air freight forwarding, and related logistics services may be dependent on the global economy. If there is any significant decline in
the global economy, our profitability and business prospects will be materially affected. Rising tension between the U. S. and China may
an adverse effect on global economic conditions. On August 9, 2023, an executive order was issued by former President Biden to direct
the Department of Treasury to issue regulations to restrict outbound investment in key technology sectors by U. S. persons to China, with
a view to bolster U. S. national security and to curtail investment in sectors that may advance China’s military, intelligence,