Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 45

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 45
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 As a result of our initial public offering, our company will become subject
to significant regulatory oversight and reporting obligations under the federal securities laws and the scrutiny of securities analysts
and investors, and our management currently has no experience in complying with such laws, regulations, and obligations. Our management
team may not successfully or efficiently manage our transition to becoming a U. S. public company. These new obligations and constituents
will require significant attention from our senior management and could divert their attention away from the day-to-day management of
our business.

We will incur increased costs as
a result of being a public company.

Once we become a public
company, we will incur significant legal, accounting, and other expenses that we did not incur as a private company prior to our initial
public offering. In addition, the Sarbanes-Oxley Act of 2002, as well as new rules subsequently implemented by the SEC and Nasdaq, have
required changes in corporate governance practices of public companies. We expect these new rules and regulations to increase our legal,
accounting, and financial compliance costs and to make certain corporate activities more time-consuming and costly. In addition, we incur
ongoing additional costs associated with our public company reporting requirements. We are currently evaluating and monitoring developments
with respect to these new rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such
costs.

We rely on dividends and other
distributions on equity paid by our subsidiary to fund any cash and financing requirements we may have. In the future, funds may not
be available to fund operations or for other uses outside of Hong Kong, due to interventions in, or the imposition of restrictions and
limitations on, our ability or our subsidiary by the PRC government to transfer cash. Any limitation on the ability of our subsidiary
to make payments to us could have a material adverse effect on our ability to conduct our business and might materially decrease the
value of Ordinary Shares or cause them to be worthless.

Globavend Holdings
is a holding company, and we rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing
requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and to service any debt
we may incur. We do not expect to pay cash dividends in the foreseeable future. We anticipate that we will retain any earnings to support
operations and to finance the growth and development of our business. If any of our subsidiaries incurs debt on its