Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 34

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 34
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 to PCAOB inspection. If the PCAOB is unable
to inspect the company’s auditors for three consecutive years, the issuer’s securities are prohibited to trade on a national
exchange. On December 2, 2020, the U. S. House of Representatives approved the HFCA Act.

On May 21, 2021,
Nasdaq filed three proposals with the SEC to (i) apply minimum offering size requirements for companies primarily operating in a “ Restrictive
Market,” (ii) prohibit Restrictive Market companies from directly listing on the Nasdaq Capital Market and only permit them to
list on Nasdaq Global Select or Nasdaq Global Market in connection with a direct listing, and (iii) apply additional and more stringent
criteria to an applicant or listed company based on the qualifications of the company’s auditors.

As a result of this
scrutiny, criticism, and negative publicity, the traded stock of many U. S.-listed Chinese companies sharply decreased in value and, in
some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions
and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny,
criticism, and negative publicity will have on us, our offerings, business, and our share price. If we become the subject of any unfavorable
allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such
allegations and/or defend our company. This situation will be costly and time-consuming and distract our management from developing our
growth. If such allegations are not proven to be groundless, we and our business operations will be severely affected and you could sustain
a significant decline in the value of our shares.

The enactment of Law of the PRC
on Safeguarding the Hong Kong National Security Law could impact our subsidiaries in Hong Kong.

On June 30, 2020,
the Standing Committee of the PRC National People’s Congress adopted the Hong Kong National Security Law (the “ Hong Kong
National Security Law”). This law defines the duties and government bodies of the Hong Kong National Security Law for safeguarding
national security and four categories of offenses - secession, subversion, terrorist activities, and collusion with a foreign country
or external elements to endanger national security - and their corresponding penalties. On July 14, 2020, U. S. President Donald Trump
(in his former presidency)