Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 16

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 16
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, fines, penalties, and other results adverse to us. A substantial judgment, settlement,
fine, or penalty could be material to our operating results or cash flows for a particular period, depending on our results for that
period, or could cause us significant reputational harm, which could harm our business prospects.

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In addition, even
if we prevail in any litigation or enforcement proceedings against us, we could incur significant legal expenses defending against the
claims, even those without merit. Moreover, because even claims without merit can damage our reputation or raise concerns among our clients,
we may feel compelled to settle claims at significant cost.

Increasing labor costs and labor
shortages in our industry may affect our business, financial condition, and results of operations.

As of September 30,
2024, Globavend HK had seven employees. As at the date of this annual report, we have seven employees. We intend to hire additional staff
in Hong Kong and Australia to facilitate our expansion plans.

The economy in Hong
Kong, Australia and globally has experienced general increases in inflation and labor costs in recent years. As a result, average wages
in Hong Kong and certain other regions (such as Australia) are expected to continue to increase. In addition, we are required by Hong
Kong laws and regulations to pay various statutory employee benefits, including a mandatory provident fund to designated government agencies
for the benefit of our employees. The relevant government agencies may examine whether an employer has made adequate payments to the
statutory employee benefits, and those employers who fail to make adequate payments may be subject to fines and other penalties.

Although we have not
experienced any labor shortage to date, we have observed an overall tightening and increasingly competitive labor market. We have experienced,
and expect to continue to experience, increases in labor costs due to increases in salary, social benefits, and employee headcount. We
and our service providers compete with other companies in our industry and other labor-intensive industries for labor, and we may not
be able to offer competitive salaries and benefits compared to them.

Since we operate in
a labor-intensive industry, we may face a shortage of labor in the future or experience increasing labor costs. If we fail to recruit
sufficient staff or retain our existing employees at an acceptable cost, we may not be able to shift the extra costs to our customers
due to their bargaining power or the competitive pricing model adopted by our competitors. Therefore, the increase in labor costs and
labor