Company: GINT
Filing Date: 2025-05-19
Form Type: DRS/A
Source: 0001213900-25-045183
Chunk: 74

Company: Gifts International Holdings Ltd
Filing Date: 2025-05-19
Form: DRS/A
Chunk 74
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 assure you that our rights to use these properties may not be challenged or we will always be able to successfully renew such leases upon their expiry. If we are required to relocate certain of our leased properties, such as our offices and workshop, we may not be able to relocate in a timely manner or on reasonable commercial terms, which, in turn, may materially and adversely affect our operations. In addition, we would incur additional relocation costs, thus affecting our business operations and financial condition. Moreover, due to rapid rental increases, we may not be able to renew the existing leases at reasonable prices. Therefore, we may not be able to obtain new leases at desirable locations or renew our existing leases on acceptable terms, in a timely fashion or at all, resulting in the closure or relocation of the leased properties, which may materially and adversely affect their results, and, in turn could adversely affect our business and results of operations. Any unexpected or prolonged disruptions to the operation of our workshop could adversely affect our business. Our workshop is located in Hong Kong and occupies a total floor area of 1,017 square meters to cater for all on -siteoperation from order processing, packaging, card printing, photo shooting to storage. In the event that there is any unexpected and prolonged disruption in the supply of utilities, such as water or electricity, or access to the premises, such as fire, and we cannot restore the affected infrastructures, or relocate promptly to another suitable location with well -equippedfacilities, our business operations will be materially and adversely interrupted, which, in turn, will affect our results of operations. In particular, due to the perishable nature of our gift items such fresh flowers and fruits, we have established detailed technical criteria as to temperature for processing and warehousing fresh flowers and fruits. If we incur any material equipment breakdown, such as a prolonged failure of the equipment for temperature control, the quality of the fresh flowers and fruits stored in the relevant facilities may be compromised. We may have to downgrade their quality level or even discard them and absorb the relevant costs. In addition, repairing or adding equipment and machinery for our workshop may be expensive and time consuming. We are dependent on external financing to support our business growth. We rely on bank borrowings to finance our operations. Our total borrowings amounted to approximately $0.9million and $0.8million as at March 31, 2024 and 2023, respectively. Our ability to obtain adequate financing on terms which are acceptable to us depends on a number of factors such as our