Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 35

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 35
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 signed the Hong Kong Autonomy Act (“ HKAA”) into law, authorizing the U. S. administration to impose
blocking sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong’s
autonomy. On August 7, 2020, the U. S. government imposed HKAA-authorized sanctions on 11 individuals, including then-HKSAR chief executive
Carrie Lam and John Lee, who later replaced Carrie Lam as chief executive on July 1, 2022. On October 14, 2020, the U. S. State Department
submitted to relevant committees of Congress the report required under HKAA, identifying persons materially contributing to “the
failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law.” The HKAA further authorizes
secondary sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly conduct a
significant transaction with foreign persons sanctioned under this authority. The imposition of sanctions may directly affect the foreign
financial institutions as well as any third parties or customers dealing with any foreign financial institution that is targeted. It
is difficult to predict the full impact of the Hong Kong National Security Law and HKAA on Hong Kong and companies located in Hong Kong.

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The PRC government
may intervene or influence our operations at any time or may exert more control over offerings conducted overseas and foreign investment
in PRC-based issuers, which may result in a material change in our operations and/or the value of our Ordinary Shares. Additionally,
the governmental and regulatory interference could significantly limit or completely hinder our ability to offer or continue to offer
securities to investors and cause the value of such securities to significantly decline or be worthless.

If we become subject to the recent
scrutiny, criticism, and negative publicity involving U. S.-listed China-based companies, we may have to expend significant resources
to investigate and/or defend the matter, which could harm our business operations and our reputation and could result in a loss of your
investment in our Ordinary Shares, in particular if such matter cannot be addressed and resolved favorably.

During the last several
years, U. S.-listed companies that have substantially all of their operations in China have been the subject of intense scrutiny by investors,
financial commentators, and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities and mistakes,
lack of effective internal controls over financial reporting, and, in many cases, allegations