Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 7

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 7
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 insurance and money-in-transit insurance covering warehouses and parcels, as well as other liability insurance as needed. However,
we do not maintain product liability insurance or key-man insurance. There are also certain types of losses, such as from war, acts of
terrorism, and certain natural disasters, for which we cannot obtain insurance at a reasonable cost or at all. There can be no assurance
that our insurance coverage is sufficient to prevent us from any loss or that we will be able to successfully claim our losses under
our current insurance policies on a timely basis or at all. If we incur any loss that is not covered by our insurance policies, or the
compensated amount is significantly less than our actual loss, our business, financial condition, and results of operations could be
materially and adversely affected.

Significant increases in freight
rates and charges charged by service providers may affect our business, financial condition, and results of operations.

We entered into block
space agreements with air freight carriers for the provision of air cargo spaces. Our pricing strategy takes into account factors such
as the type of consignment, freight rates, future business opportunities, volume of cargo space required, and the charges charged by
other service providers. If there is an increase in freight rates or the charges charged by other service providers, we will have to
transfer such increase in costs to our customers. This may have an adverse effect on our pricing and costs.

These increases in
rates charged by air freight carriers and other service providers are influenced by various factors, including fuel prices, exchange
rates, import or export taxes, costs of labor, and market conditions, many of which are beyond our control. We may need to set off the
significant increase in costs by increasing our prices, which may reduce our competitive advantage, thereby materially and adversely
affecting our business.

Our profitability may be materially
and adversely impacted if our investment in equipment, warehousing facilities, and information technology infrastructure does not match
customer demand for these resources or if there is a decline in the availability of funding sources for these investments.

Although we are an
asset-light company, our integrated cross-border logistics services may require certain investments and commitment of capital in equipment,
warehousing facilities maintenance and expansion, and warehousing systems such as shelving, racking, and information technology systems.
The amount and timing of our capital investments depend on various factors, including anticipated freight volume levels and the price
and availability of appropriate property for our warehousing facilities.

These capital expenditures
are associated with