Company: CCHH
Filing Date: 2025-06-26
Form Type: DRS
Source: 0001213900-25-058036
Chunk: 21

Company: CCH Holdings Ltd
Filing Date: 2025-06-26
Form: DRS
Chunk 21
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 increase in rentals will adversely affect our profitability and financial position. There is also no guarantee that we can negotiate the terms of renewal with the landlords before the expiry of our existing tenancy agreements. The success of any restaurant depends on its location selection and we maintain a set of selection criteria at high standards. In particular, our restaurant outlets will aim to be located in areas with high pedestrian traffic and can be easily accessed by customers by a wide range of modes of transportation. The floor area of each of our restaurants must be large enough to accommodate customers’ needs. In view of our stringent criteria in selecting restaurant locations, commercially viable choices in Malaysia or other jurisdictions that we may have operations in the future may be limited. In addition, the demographics or economic conditions of the communities where our restaurant outlets are currently operating in could change in the future, potentially resulting in reduced sales in these locations. If we cannot relocate or secure new premises at desirable locations at prices within our budget, our ability to implement our growth strategy will be strained. 14 Our results of operations may fluctuate due to seasonality. We experience certain levels of seasonal fluctuations. For instance, we normally record higher customer traffic and revenues during Chinese New Year and other public holidays due to customs of the Chinese community of family gathering. As we expand our network of restaurant outlets to various other regions, our financial condition and results of operations may fluctuate due to seasonality in accordance with local cultures and practice and our historical results may not be indicative for further performance. As we expand our geographic reach in the future, our multi-jurisdictional operations may lead to increasing risks and uncertainties and our management system may not be effective to address such risks and uncertainties. Our restaurant outlets, including both company -ownedand franchised outlets, are current located in four different jurisdictions. We also plan to further extend our company -ownedand franchised restaurant network to additional jurisdictions. However, operation in those jurisdictions and expanding to new regions may expose us to various risks, which may include, among others: •failure to anticipate changes to the competitive landscape in the new market due to lack of familiarity with the local business environment; •different consumer preferences and discretionary spending patterns; •difficulty in finding reliable suppliers of food ingredients meeting our quality standards at acceptable prices and quantities; •the infringement of our intellectual property rights in foreign jurisdictions; •economic, financial and market instability and credit risks; •material tariffs imposed on our food ingredients imported from other countries; •difficulties and costs associated with complying with, and enforcing remedies under, a