Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 52

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 52
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 depress these valuations
compared to those of other similar companies that are included. Because of our multi-class structure, we will likely be excluded
from certain of these indices and we cannot assure you that other stock indices will not take similar actions. Given the sustained flow
of investment funds into passive strategies that seek to track certain indices, exclusion from stock indices would likely preclude investment
by many of these funds and could make our Class A Ordinary Shares less attractive to other investors. As a result, the market price
of our Class A Ordinary Shares could be adversely affected.

As a “controlled company” under
the rules of the Nasdaq Stock Market LLC, we may choose to exempt our company from certain corporate governance requirements that could
have an adverse effect on our public shareholders.

Mr. Tak Kai Raymond, TAM (our ultimate controlling
shareholder and majority shareholder of Grande Holding Limited) and Ms. Yujie, CHEN (our Chief Executive Officer and the Chair of our
Board) beneficially own the majority of the voting power of our outstanding Ordinary Shares. Under the Rule 4350(c) of the Nasdaq
Stock Market LLC, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled
company” and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of
our directors be independent, as defined in the rules of the Nasdaq Stock Market LLC, and the requirement that our compensation and nominating
committees consist entirely of independent directors.

Although we do not intend to rely on the “controlled
company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future. If we elect to rely on
the “controlled company” exemption, a majority of the members of our Board of Directors might not be independent directors
and our nominating and compensation committees might not consist entirely of independent directors. Accordingly, during any time while
we remain a controlled company relying on the exemption and during any transition period following a time when we are no longer a controlled
company, you would not have the same protections afforded to shareholders of companies that are subject to all of the Nasdaq Capital Market
corporate governance requirements. Our status as a controlled company could cause our Class A Ordinary Shares to look less attractive
to certain investors or otherwise harm our trading price.

You may face difficulties in protecting
your interests, and your ability to protect your rights through U. S.