Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 15

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 15
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 located in Tsuen Wan increase, our operating expenses will increase and also affect our operating cash
flows and, in turn, materially and adversely affect our business, results of operations, and prospects.

Furthermore, the leases
for the office and warehousing facilities we use could be challenged by third parties or government authorities, which may cause interruptions
to our business operations. We cannot assure you that our use of such leased properties will not be challenged. In the event that our
use of leased properties is successfully challenged, we may be subject to fines and forced to relocate the affected operations. We can
provide no assurance that we will be able to find suitable replacement sites at desirable locations on terms acceptable to accommodate
our future growth on a timely basis or at all or that we will not be subject to material liability resulting from third parties’
challenges on our use of such properties.

We are exposed to credit risks
of our customers.

We are exposed to
credit risks of our customers. We do not have access to all the information necessary to form a comprehensive view on creditworthiness.
The complete financial and operational conditions of customers are not always available to us, and we may not be in any position to obtain
such information. As a result, if any of our major customers experience any financial difficulty and fail to settle the outstanding amounts
due to us in accordance with the agreed credit terms, our working capital position may be adversely affected.

Globavend HK may be exposed to
claims by third parties for infringement of intellectual property rights.

Some of the services
rendered by Globavend HK are subject to intellectual property protection. In the event of disputes over the use of any intellectual property
in our services, there is a risk that claims may be made against Globavend HK for intellectual property infringement. In addition, any
protracted litigation will result in substantial costs and the diversion of resources and management’s attention.

We may be subject to litigation,
arbitration, or other legal proceeding risk.

We may be subject
to arbitration claims and lawsuits in the ordinary course of our business. As of the date of this annual report, the Company, Globavend
BVI, Globavend HK and Globavend Warehouse are not a party to, and are not aware of any threat of, any legal proceeding that, in the opinion
of our management, is likely to have a material adverse effect on our business, financial condition, or operations. Actions brought against
us may result in settlements, awards, injunctions