Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 17

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 17
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 shortage may adversely impact our business, expansion plans, financial condition, and results of operations.

To mitigate the inflationary
pressure and the risk of increasing labor costs, we have taken measures including (i) minimizing unnecessary and non-value-added costs
in our operations, such as cost of excess packaging and sealing materials; and (ii) strengthening our price bargaining power by providing
more competitive salaries and benefits to our employees and shifting excess costs to our customers by raising our charges. We would also
continue to enhance our information technology infrastructure and develop intelligent delivery and collection solutions to lower labor
involvements and, thus, reduce labor costs.

Natural disasters, acts of war,
and other catastrophic events may adversely affect our operations.

Natural disasters,
acts of God, wars, epidemics, material interruptions in service, or stoppages in transportation, as well as other events that are beyond
our control, can have adverse effects on local economies, infrastructures, airports, port facilities, and international trade. Such events
can also result in the closure of ports or airports and disruptions to cargo flows. Major earthquakes, weather events, cyberattacks,
heightened security measures (actual or threatened), terrorist attacks, strikes, civil unrest, pandemic, or other catastrophic events
may also cause a disruption or failure of our systems or operations thereby causing delays in providing services or performing other
critical functions. In such an event, our business, financial condition, and results of operations may be adversely affected.

A sustained outbreak of the COVID-19
pandemic could have a material adverse impact on our business, operating results, and financial condition.

Since late December
2019, the outbreak of COVID-19 spread rapidly throughout China and later to the rest of the world. On January 30, 2020, the International
Health Regulations Emergency Committee of the World Health Organization declared the outbreak a PHEIC, and later, on March 11, 2020,
a global pandemic. The COVID-19 outbreak has led governments across the globe to impose a series of measures intended to contain its
spread, including border closures, travel bans, quarantine measures, social distancing, and restrictions on business operations and large
gatherings. From 2020 to the middle of 2021, a COVID-19 vaccination program had been greatly promoted around the globe; however, several
types of COVID-19 variants emerged in different parts of the world.

Supply-chain disruptions
have become a major challenge for the global economy since the start of the COVID-19 pandemic.