Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 26

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 26
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 to our temporary workers and to satisfy our workers’ compensation liabilities. As a result, we must maintain sufficient
cash availability to pay temporary workers and fund related tax liabilities prior to receiving payment from customers.

In
addition, our operating results tend to be unpredictable from quarter to quarter. Any period of time with low operating results or cash
flow imbalances could have a material adverse effect on our business, financial condition and results of operations.

We
derive working capital for our operations through cash generated by our operating activities and borrowings under our debt instruments.
If our working capital needs increase in the future, we may be forced to seek additional sources of capital, which may not be available
on commercially reasonable terms. The amount we are entitled to borrow under our debt instruments is calculated monthly based on the
aggregate value of certain eligible trade accounts receivable generated from our operations, which are affected by financial, business,
economic and other factors, as well as by the daily timing of cash collections and cash outflows. The aggregate value of our eligible
accounts receivable may not be adequate to allow for borrowings for other corporate purposes, such as capital expenditures or growth
opportunities, which could reduce our ability to react to changes in the market or industry conditions.

We
are exposed to credit risks of our customers.

We
are exposed to credit risks of our customers. As of June 30, 2024 and 2025, our Group had accounts receivable of approximately HK$8.4
million and HK$18.2 million, respectively. We do not have access to all the information necessary to form a comprehensive view on the
creditworthiness. The complete financial and operational conditions of customers are not always available to us, and we may not be in
any position to obtain such information. As a result, if any of our major customers experiences any financial difficulty and fail to
settle the outstanding amounts due to us in accordance with the agreed credit terms, our working capital position may be adversely affected.

We
depend on attracting, integrating, managing, and retaining qualified internal personnel.

Our
success is substantially dependent upon our ability to attract, integrate, manage and retain personnel who possess the skills and experience
necessary to fulfill our customers’ needs. Our ability to hire and retain qualified personnel could be impaired by any diminution
of our reputation, decrease in compensation levels relative to our competitors or modifications to our total compensation philosophy
or competitor hiring programs. If we cannot attract, hire and retain qualified personnel, our business