Company: GINT
Filing Date: 2025-05-16
Form Type: DRS/A
Source: 0001213900-25-044839
Chunk: 69

Company: Gifts International Holdings Ltd
Filing Date: 2025-05-16
Form: DRS/A
Chunk 69
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 from alternative sources may be of lesser quality and/or may be more expensive, which could increase our procurement costs and have a material and adverse effect on our business, results of operations and financial condition. Complaints from our clients may affect our reputation and our ability to retain our existing customers and secure new customers. We may receive complaints from clients mostly in relation to quality and condition of our products. If the number of complaints in relation to quality and condition of our products increases, our reputation could be affected by these complaints which may have negative impact on our ability to retain existing customers or our ability to secure new customers. Our clients may not continue to use our services which could have an adverse impact on our business and financial performance. Any failure to maintain food safety and consistent quality could have a material and adverse effect on our brands, business and financial performance. Our gifts and hampers often include food products such as seasonal fruits and gourmet. We believe that quality and safety of our food products are critical to our success. We pay close attention to quality control, monitoring each step in the process from procurement to delivery. However, there is no assurance that our quality control and monitoring measures will prove to be effective at all times. We face an inherent risk of food contamination and liability claims. Any food contamination that we fail to detect or prevent could adversely affect the overall quality of our gift products, which could lead to liability claims, and the imposition of penalties or fines by relevant authorities. Furthermore, the quality of gourmet provided by our suppliers is subject to factors beyond our control, including the effectiveness and efficiency of their quality control system, among others. There is no assurance that our suppliers may always be able to adopt effective quality control systems and meet our stringent quality control requirements in respect of the products they provide. Any failure of our suppliers to provide satisfactory products could harm our reputation and adversely impact our operations. Moreover, we currently do not maintain any product liability insurance and may not have adequate resources to satisfy a judgment in the event of a successful product liability claim against us. The successful assertion of product liability claims against us could result in potentially significant monetary damages and require us to make significant payments. Any negative publicity, allegations, complaints or claims made against us may adversely affect our reputation, business, financial position, results of operations and price of our Class A Ordinary Shares. Since our establishment, there has not been any negative publicity and allegations made by customers or suppliers or our employees against our Group. However, we cannot assure you that any allegations, complaints and claims will not be made against