Company: BGHL
Filing Date: 2025-10-01
Form Type: F-1/A
Source: 0001213900-25-094318
Chunk: 51

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-01
Form: F-1/A
Chunk 51
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 All of our suppliers are from Hong Kong. The geographic concentration of our suppliers exposes us to operational risks beyond our control, including port congestion, regulatory changes, or extreme weather events, which could disrupt shipments or increase costs. We do not control our suppliers’ practices and cannot guarantee their compliance with evolving food safety regulations or certification requirements. Any quality deficiencies, even attributable to suppliers, may damage our reputation among B2B clients, leading to reduced demand, pricing pressures, or loss of certifications critical to our premium market positioning. We have a high dependency on our primary supplier — Draco Catering Management Limited (“Supplier A”), a food -and-beveragemanagement company incorporated in Hong Kong. If our primary supplier terminates our business relationship, it may have a material adverse impact on our operating results. We are actively taking measures to reduce our reliance on this single supplier, including expanding new supplier channels and optimizing our purchasing strategy. However, there is no guarantee that these measures will entirely eliminate the risk of dependency on a single supplier. If our relationship with our primary supplier changes in the future, we may encounter unstable raw material supply and cost increases, which in turn could affect our profitability. Our operations are critically reliant on a limited number of suppliers. Our operations are critically reliant on a limited number of suppliers, with our top five suppliers collectively accounting for approximately 99.90% of our total purchases in the fiscal year ended December31, 2023, 100.00% in the fiscal year ended December31, 2024 and 100.00% in the six months ended June30, 2025, including one primary supplier — Supplier A, representing approximately 57.40% and 56.80% of our total purchases for the year ended December31, 2024 and the six months ended June30, 2025, respectively. Supplier A was the largest supplier of the Group for the years ended December31, 2023 and 2024 and the six months ended June30, 2025. During the year ended December31, 2024 and the six months ended June30, 2025, 87.0% and 77.2% of frozen food, our most popular product, was purchased from Supplier A. This significant concentration exposes us to substantial risks: any disruption in the operations of these key suppliers, whether due to unforeseen events, quality control issues, or changes in their commercial terms, could severely impede our ability to procure essential products, leading to inventory shortages, delayed deliveries,