Company: GINT
Filing Date: 2025-01-28
Form Type: DRS/A
Source: 0001213900-25-007208
Chunk: 69

Company: Gifts International Holdings Ltd
Filing Date: 2025-01-28
Form: DRS/A
Chunk 69
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 set prices, we have to consider how competitors have set prices for the same or similar products. When they cut prices or offer additional benefits to compete with us, we may have to lower our own prices or offer additional benefits or risk losing market share, either of which could adversely affect our financial condition and results of operations. Our ability to effectively compete will depend on various factors, including our ability to expand our product portfolio, to enhance marketing efficiency, to pursue collaborations with famous brands and to maintain our timely fulfillment capability. Failure to successfully compete may prevent us from increasing or sustaining our revenue and profitability and potentially lead to a loss of market share, which could have a material and adverse effect on our business, financial condition, results of operations and cash flows. Our business depends on a strong brand, which we might not be able to maintain or enhance. We must maintain and enhance our “GiveGiftBoutique” brand to expand our customer base and our revenues. We believe that the strong awareness of our brand contributes to recurring customers’ orders, and maintaining and enhancing our brand is critical to expanding and retaining our base of customers and suppliers. We intend to substantially increase our expenditures for creating and maintaining brand loyalty and raising awareness of our additional product offerings. However, if we fail to advertise and market our products effectively, we may not succeed in establishing our brands, we will lose customers and our revenues and our financial performance will be adversely affected. The disruption of supplier relationships could materially and adversely affect our business and results of operations. Our suppliers are primarily comprised of suppliers of flowers, fruits and gourmet, and logistics service providers. Our directors believe that identifying high -qualitysuppliers and maintaining a stable business relationship with them are critical for our business operations. We had over 100 suppliers as of March 31, 2024. Maintaining strong relationships with these suppliers is important to the growth of our business. In particular, we depend significantly on our ability to directly procure flowers, fruits and gourmet products from suppliers on favorable terms. However, as we have not entered into any framework agreement with majority of our suppliers, there can be no assurance that we can secure the availability of products or the continuation of particular pricing practices or payment terms in the future. If our business relationships with suppliers are interrupted, we may lose our competitive advantage of procuring flowers, fruits and gourmet with premium quality and favorable prices, which in turn may materially and adversely affect our financial conditions and results of operations. A failure to establish and maintain strategic partnerships with our suppliers may affect our business and financial performance