Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 5

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 5
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 of our customers.

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  Table of Contents  

Our business is susceptible to
disruptions in the business activities of our suppliers of cargo space.

We need our suppliers
to provide cargo space for our customers. Disruptions in the business activities of our suppliers may have negative impacts on our business.
Such disruptions include (i) suspension or cancellation of flight lines due to technical failures or extreme weather conditions, especially
when we rely on one airline carrier for a particular destination; (ii) labor strikes due to disagreements between labor and management;
(iii) massive occurrence of political or industrial actions at transportations hubs or destination ports; (iv) wars or terrorist attacks;
(v) serious financial difficulties faced by our suppliers during their course of business operations; and (vi) significant increases
in freight rates and charges charged by service providers. In the event of occurrence of the above, we may have to arrange for alternative
suppliers of cargo space from other air freight carriers for our customers within a tight time constraint.

If we are unable to
source cargo space on alternative routes for our customers, we may have to bear such disruptions and our customers may switch to our
competitors. Further, if there is any detrimental change to our business relationship with our major suppliers, our reputation, financial
condition, and results of operations could be adversely affected.

We face risks associated with the
items we deliver and the contents of shipments and inventories handled through our service network as we may fail to identify shipments
that carry goods of dangerous or illicit nature.

We handle a large
volume of shipments across our service network. In accordance with the air cargo security regime in Hong Kong and related statutory requirements
of the Hong Kong Civil Aviation Department (CAD), 100% of cargoes arranged by us are required to be screened by the screening equipment
(such as x-ray) certified by aviation security authorities, such as the European Civil Aviation Conference (ECAC) of the European Commission,
Transportation Security Administration (TSA) of the United States, and Department for Transport (DOT) of Australia (“ Screening
Equipment”). We are required to ensure that all dangerous goods are properly classified, packed, marked, labeled, and documented
before they are offered for air transportation. However, there is no assurance that our Screening Equipment or hand search/physical check
by our screeners at piece level can successfully prevent the shipment of any illegal goods or dangerous goods.

Should we fail to
identify shipments that carry goods of illicit or dangerous nature, these goods may end