Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 3

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 3
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 air cargo space
for our integrated cross-border logistics services or freight forwarding services, leading to significantly higher costs in acquiring
cargo space. As at the date of this annual report, we have not experienced any early termination or non-renewal of our block space agreements.

If we are unable to utilize our
cargo space obtained through block space agreements, our business and results of operations may be adversely affected.

The demand of customers
may differ from the supply of cargo space we obtain through block space agreements from time to time. Although we consolidate cargo to
utilize the cargo space we have obtained in order to maximize our profit, we cannot assure you that we are always able to fully utilize
all the cargo space we have obtained on every occasion. We cannot assure you that there will not be instances where, for instance, due
to (i) departure timetable of the aircraft, (ii) popularity of the route, or (iii) seasonality factors, we are unable to fully consolidate
all the cargo we have obtained. If these circumstances arise, we may have to bear the costs of all the excess cargo space we have purchased.

We have not entered into long-term
sales agreements with our customers and rely on demands from our major customers, and our sales may fluctuate subject to our customers’
demands.

Our operating subsidiary
Globavend HK does not enter into any long-term agreements with our customers, which mainly comprise businesses that operate e-commerce
platforms or e-commerce merchants in Hong Kong and purchases that are made on an order-by-order basis. Our business with our customers
has been, and we expect it will continue to be, conducted based on the actual orders received from time to time. Accordingly, the quantity
of cargo spaces required from our customers may fluctuate from time to time, which makes it difficult for us to project future demands
from our customers. As a result, we cannot guarantee that our current customers will continue to utilize our services or that they will
continue at the same levels. Our success depends on receiving continuous orders from our customers.

We rely on our customers
to make continuous purchases of cargo space from us to maintain a stable source of revenue. If for any reason, our customers no longer
require cargo spaces from us at the same level or on similar terms as they have done historically or at all, in the future (for example,
in the event of decrease in customers’ end products due to economic downturn), or our customers remove us from their list of nominated
logistics services