Company: GINT
Filing Date: 2025-07-18
Form Type: F-1/A
Source: 0001213900-25-065552
Chunk: 221

Company: Gifts International Holdings Ltd
Filing Date: 2025-07-18
Form: F-1/A
Chunk 221
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800,000 (US$102,829), effective from October 1, 2024, if the bank in Hong Kong with which an individual/a company hold its eligible deposit fails.

F-25 GIFTS INTERNATIONAL HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS NOTE 14 — CONCENTRATIONS OF RISKS (CONT.) As of March 31, 2025, cash and cash equivalents of HK$2,250,003 (US$289,207) was maintained at financial institutions in Hong Kong and Macau, of which approximately HK$1,062,368 (US$136,201) was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. For accounts receivable, the Company determines, on a continuing basis, the probable losses and sets up an allowance for expected credit losses. As of March 31, 2025, three customers accounted for 80% of the Company’s accounts receivable. As of March 31, 2024, two customers accounted for 41% of the Company’s accounts receivable. (d)Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk primarily relates to the variable -ratebank borrowings and is mainly concentrated on the fluctuation of Hong Kong Prime Rate and HIBOR arising from the Company’s bank borrowings. The Company has not used any derivative instruments to mitigate its exposure associated with interest rate risk. However, the management monitors interest rate exposure and will consider other necessary actions when significant interest rate exposure is anticipated. The Company is also exposed to cash flow interest rate risk related to bank balances and cash held at financial institutions carried at the prevailing market rates and variable -ratebank borrowings. (e)Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. (f)Economic and political risk The Company’s major operations are conducted in Hong Kong. Accordingly, the political