Company: GRAN
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069627
Chunk: 118

Company: Grande Group Ltd/HK
Filing Date: 2025-07-31
Form: 20-F
Item: Item 5
Chunk 118
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, 2024, compared to $1.3 million for the year ended March 31,
2023. Such increase was attributable to the increase in revenue and gross margin, partially offset by the increase in income tax expense.

Liquidity
and Capital Resources

We continued to derive sufficient cash from our
operating activities for the year ended March 31, 2025 like the previous year as described below.

The proceeds from our closing of the IPO and the
exercise of the over-allotment option on July 2, 2025 and July 10, 2025, respectively, are expected to strengthen the Company’s
balance sheet. After giving effect to the IPO and the over-allotment option, the Company received net proceeds of approximately $8.86
million, after deducting total expenses incurred in connection with the IPO.

The Company recorded a material change in the
sources of funds financing our operations in the year ended March 31, 2024. For the year ended March 31, 2024, we recorded a significant
increase in cash provided by operating activities from $228,964 for the year ended March 31, 2023 to $1,157,742 for the year ended March
31, 2024. The increase in cash provided by operating activities was mainly due to the increase of net income from $1,279,247 for the year
ended March 31, 2023 to $1,798,073 for the year ended March 31, 2024. We derived sufficient cash from our operating activities for the
year ended March 31, 2024 and no longer have to rely on advances from Grande Holding Limited, of which Mr. Tak Kai Raymond, TAM is the
source of funds, to finance our operations.

For the year ended March 31, 2023, advance from
a related party, being Grande Holding Limited, to which Mr. Tak Kai Raymond, TAM, the majority shareholder of the Controlling Shareholder
is the source of funds, amounting to $293,842, was a major source of funds for financing our operations.

Our ability to maintain sufficient cash provided
by operating activities is dependent on our ability to maintain and expand our client base, enhance our relationships with partners, make
adjustments to our business operations to adopt to the business environment, attract and retain our employees, manage our future growth,
improve the operational efficiency of our Operating Subsidiary and navigate an evolving regulatory environment