Company: BGHL
Filing Date: 2025-10-28
Form Type: F-1/A
Source: 0001213900-25-102958
Chunk: 45

Company: BILLION GROUP HOLDINGS Ltd
Filing Date: 2025-10-28
Form: F-1/A
Chunk 45
---
 U.S. imposed on Mainland China will also affect Hong Kong exports. Since February 2025, the U.S. administration has imposed a 10% tariff on goods exported directly from Hong Kong, while simultaneously raising tariffs on Chinese imports to 125%. On April 9, 2025, China responded by increasing levies on U.S. imports to 84%. Although Hong Kong retains independent customs status under “One Country, Two Systems,” the U.S. tariff measures now explicitly apply to Hong Kong -originproducts, directly impacting our operations as a distributor of premium perishable goods. Currency volatility, capital flow disruptions, and tightening liquidity conditions in international markets could depress discretionary spending among high -net -worthconsumers and luxury hospitality clients, reducing demand for premium products such as Wagyu beef and high -endseafood. Hong Kong’s role as a financial and logistics hub amplifies these risks. Prolonged trade tensions may erode investor confidence in Asia -Pacificmarkets, leading to capital flight from emerging economies. Although we maintain no direct exposure to U.S. -Chinacross -bordertrade, broader market perceptions of geopolitical risks could disproportionately impact investor confidence in Hong Kong -basedenterprises. A sustained decline in global risk appetite could suppress the valuations of Hong Kong -listedequities, limiting our capacity to secure growth capital or execute strategic acquisitions. Furthermore, exchange rate fluctuations driven by trade policy instability might inflate procurement costs for imported goods or compress margins on foreign currency -denominatedsales. Losing its special status, Hong Kong’s competitiveness as a food trading hub may deteriorate in the future as its tax benefits as a result of preferential situation no longer exist and companies might prefer exporting through other cities. The level of activities of domestic exports and re -exportsand other trading activities in Hong Kong may decline owing to the tariff being imposed on Hong Kong exports and the export restriction. In the event that Hong Kong loses its position as a food trading hub in Asia, the demand for food export or re -exportfrom Hong Kong and thus our business, financial conditions and results of operations, may be adversely affected. According to the Hong Kong Policy Act Report issued by the Department of State in 2021, 2022 and 2023, since July 2020, the suspension of an agreement concerning surrender of fugitive offenders and the termination of an agreement concerning transfer of sentenced persons and an agreement concerning certain reciprocal tax exemptions, there were no terminations pursuant to § 202(d) of the United States -