Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 6

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 6
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 up being impounded by customs, where we may be
subject to investigations and administrative or even criminal penalties, or if any personal injury or property damage is concurrently
caused, we may be further liable for civil compensation. In such event, our reputation, business, and results of operations may be materially
and adversely affected. Furthermore, we face challenges with respect to the protection and control of these items when handling the shipments
and inventories across our service network. Shipments and inventories in our service network may be stolen, damaged, or lost for various
reasons, and we, together with our service providers, may be perceived or found to be liable for such incidents. As of the date of this
annual report, we have not experienced any failure to detect shipments of illicit or dangerous nature.

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We may fail to identify referral
consignments that carry goods of dangerous or illicit nature.

Our business partners
and customers may refer business opportunities or engage us as their service provider for the provision of logistics and freight forwarding
services from Hong Kong to locations where we have a presence. We may also co-load our consignments with other freight forwarders to
utilize the cargo space we have. In these circumstances, we may have no control over and no comprehension of the consignor’s nature
of the consigned goods other than as declared on the relevant declaration forms. Even if we perform background checks on new customers
and file police reports for any unclaimed and/or suspicious parcel, there is no assurance that the implementation of such measures will
successfully prevent the transporting of any illegal or dangerous goods. Should consignment carry goods of illicit or dangerous nature
and we fail to identify their nature, such goods may end up being impounded by customs or give rise to unexpected accidents, where we
may be subject to investigation for breaking local laws and be fined by authorities. In such event, our reputation, business, and results
of operations may be materially and adversely affected. As of the date of this annual report, we have not experienced any similar incident
where we have failed to identify referral consignments that carry goods of dangerous or illicit nature.

Our insurance coverage may be inadequate
to protect us from potential losses.

We have obtained insurance
to cover certain potential risks and liabilities. We provide work-related injury insurance for our employees and property all risks insurance
for our office and warehousing facilities. Additionally, we also purchase increased costs of work insurance for business interruption
liability