Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 11

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 11
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online and offline media channels to increase the number of customer accounts, which can potentially lead to trading volume and revenues.

We currently pursue a niche market strategy in
Hong Kong. We established two subsidiaries in Singapore during 2022 and planned to expand to Southeast Asia as the first step in achieving
the final goal of becoming the preferred online trading platforms for Asian investors worldwide, including in the United States. As a
relatively young firm new to the market, although we face competition from bigger, better capitalized, and well established companies,
including other trading firms and banking institutions, our ability to understand and meet our target customers’ needs, coupled
with our strong client relationships, allow us to rise to the challenge. Our ability to continuously provide our customers with low-latency
trading platforms and high quality services at competitive prices and the outcome of our advertising and marketing activities will affect
whether we can retain our existing customers and attract new customers.

Our ability to earn commissions from brokerage
services

We charge commission fees for the brokerage services
we offer. Our ability to earn commission fees and interest income largely depends on the number of customers on our trading platforms
and their trading volume and the commission rates we charge.

It has become increasingly common for online trading
platforms to offer free brokerage services. As a provider of brokerage services on chargeable-only trading platforms, we are confident
that we can differentiate ourselves from our competitors, as we offer low-latency trading platforms, a wide range of products from multiple
exchanges, and quality customer services, and we maintain good relationships with our customers. Rather than prioritizing cost saving,
most of our customers are professional customers seeking quality trading platforms to execute their orders timely and accurately.

We anticipate a future possibility of having to
lower our commission rates in order to remain competitive, but we believe that a larger trading volume would make up for the effects of
lowered commission rates on our revenues. We also plan to develop new sources of income from asset management and contract for difference
(“ CFD”) products and services, as we have seen the demand for these services by our customers.

Our ability to effectively improve technology
infrastructure

Our technological infrastructure and compliance
capabilities are critical for us to offer high quality products and services as well as to retain and attract users and customers. They
also enable us to facilitate secure, fast and cost-efficient financial transactions on our platform. We must continue to upgrade and expand
our technological infrastructure and to strengthen our compliance system to keep pace with the growth of our business