Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 6

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 3
Chunk 6
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account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection
is not probable. We did not have any bad debt write-off during the years ended June 30, 2024 and 2023. However, during the fiscal year
ended June 30, 2025, we recorded an impairment loss of bad debt of approximately RM4.0 million ($0.9 million), impairment loss of property,
plant and equipment of approximately RM7.0 million ($1.7 million), goodwill and intangible assets of approximately RM15.8 million ($3.6
million).

Although we manage credit risk related to our
customers by performing periodic evaluations of credit worthiness and applying other credit risk monitoring procedures, if there is an
occurrence of circumstances that affect our customers’ ability to pay us such as deteriorating conditions in, bankruptcies, or financial
difficulties of a customer or within their industries generally, our operating cash flow will be under tremendous pressure, and we could
experience payment delays or default in payment to our suppliers or other creditors, which may result in material and adverse impact on
our business, results of operations and financial condition.

We are a holding
company, and we are accordingly dependent upon distributions from our subsidiaries to service our debt and pay dividends, if any, taxes
and other expenses.

We are a Cayman Islands
holding company and have no material assets other than ownership of equity interests in our subsidiaries. We have no independent means
of generating revenue. We intend to cause our subsidiaries to make distributions to their shareholders in an amount sufficient to cover
all applicable taxes payable and dividends, if any, declared by us. Our ability to service our debt, if any, depends on the results of
operations of our subsidiaries and upon the ability of such subsidiaries to provide us with cash, whether in the form of dividends, loans
or other distributions, to pay amounts due on our obligations. Future financing arrangements may contain negative covenants that limit
the ability of our subsidiaries to declare or pay dividends or make distributions. Our subsidiaries are separate and distinct legal entities;
to the extent that we need funds, and our subsidiaries are restricted from declaring or paying such dividends or making such distributions
under applicable law or regulations or are otherwise unable to provide such funds (for example, due to restrictions in future financing
arrangements that limit the ability of our operating subsidiaries to distribute funds), our liquidity and financial condition could be
materially harmed.

We have