Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 143

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 10
Chunk 143
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 for the production of passive income, it is believed,
for our current taxable year, we are not a PFIC. We will continue to make this determination following each tax year. However, because
the value of our assets for purposes of the asset test will generally be determined based on the market price of our securities and because
cash is generally considered to be an asset held for the production of passive income, our PFIC status will depend in large part on the
market price of our securities and the amount of cash we have utilized from the past IPO. Accordingly, fluctuations in the market price
of our securities may cause us to become a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects
and the composition of our income and assets will be affected by how, and how quickly, we spent the cash we raised in the IPO. We are
under no obligation to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the
value of our assets will depend upon material facts (including the market price of our Ordinary Shares from time to time and the amount
of cash we raised in the IPO) that may not have been within our control. If we are a PFIC for any year during which you hold our securities,
we will continue to be treated as a PFIC for all succeeding years during which you hold our securities. If we cease to be a PFIC and you
did not previously make a timely “mark-to-market” election as described below, you will continue to be treated as a PFIC,
however, you may avoid some of the adverse effects of the PFIC regime by making a “purging election” (as described below)
with respect to our securities.

If
we are a PFIC for any taxable year during which you hold Ordinary Shares, you will be subject to special tax rules with respect to any
“excess distribution” that you receive and any gain you realize from a sale or other disposition (including a pledge) of
the Ordinary Shares, unless you make a “mark-to-market” election as discussed below. Distributions you receive in a taxable
year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years
or your holding period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

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