Greenpro Capital (GRNQ) risk factors, FY2025 10-K

Risks Related to Natural Disasters and Public Health Crises

1. 01We may be adversely affected by natural disasters, pandemics, and other catastrophic events, and by human-caused problems such as terrorism, which could disrupt our business operations, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster

Risks Related to Our Business

1. 02We are not currently profitable and may not become profitable39% rewritten
2. 03We may not be able to continue to operate as a going concern31% rewritten
3. 04Our operating results may prove unpredictable which could negatively affect our profit
4. 05Our operating results have and will significantly fluctuate, and this will be due to the highly volatile nature of crypto
5. 06Our revenue is dependent on the prices of crypto assets and the volume of transactions conducted on our platform. If such a price or volume declines, our business, operating results, and financial condition would be adversely affected, and the price of our Common Stock could decline
6. 07If we are unable to gain any significant market acceptance for our service or establish a significant market presence, we may be unable to generate sufficient revenue to continue our business
7. 08Management’s ability to implement the business strategy may be slower than expected and we may be unable to generate a profit
8. 09Our services may be slow to achieve profitability, or may not become profitable at all, which will result in losses. There can be no assurance that we will succeed
9. 10Competitors may enter this sector with superior service which would affect our business adversely
10. 11Our use of open-source and third-party software could impose limitations on our ability to commercialize our services
11. 12The security of our computer systems may compromise and harm our business26% rewritten
12. 13Adverse development in our existing areas of operation could adversely impact our results of operations, cash flows, and financial condition

Risks Related to Crypto Assets

1. 14Due to unfamiliarity and some negative publicity associated with crypto asset platforms, confidence or interest in crypto asset platforms may decline
2. 15Future developments regarding the treatment of crypto assets for U.S. and foreign tax purposes could adversely affect our business, operating results, and financial condition
3. 16The nature of our business requires the application of complex financial accounting rules, and there is limited guidance from accounting standard setting bodies on certain topics. If financial accounting standards undergo significant changes, our operating results could fluctuate

Risks Relating to Green-X and Its Business of Digital Asset Exchange

1. 17The slowing or stopping of the development or acceptance of blockchain networks and blockchain-based assets could have a material adverse effect on the successful development and adoption of our businessNew
2. 18The future development and growth of the digital asset industry is subject to a variety of factors that are difficult to predict and evaluateNew
3. 19Our operating results have and will significantly fluctuate, due to inherent volatility associated with the digital asset industry, including, but not limited to, the price of digital assets, regulatory scrutiny of certain digital assets or related products and services, or changes in applicable lawsNew
4. 20Our failure to safeguard and manage our and our users’ fiat currencies and digital assets could adversely impact on our business, operating results, and financial conditionNew

Risks Related to Cybersecurity

1. 21Cyberattacks and security breaches of our platform, or those impacting on our customers or third parties, could adversely affect our brand, reputation, business, operating results, and financial condition
2. 22We obtain and process a large amount of sensitive customer data. Any real or perceived improper use of, disclosure of, or access to such data could harm our reputation, as well as adversely affect our business, operating results, and financial condition

Risks Related to Doing Business in Southeast Asia and East Asia

1. 23Our business is subject to the risks of international operations
2. 24We face the risk that changes in the world economy and political developments in Malaysia may adversely affect our business
3. 25You may have difficulty enforcing judgments against us
4. 26Payment of dividends is subject to restrictions under Nevada, Hong Kong, Malaysia, and the PRC laws

Risks Related to Doing Business in Hong Kong and China

1. 27The introduction of new laws or changes to existing laws by the PRC government may adversely affect our business
2. 28We face the risk that changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of such business
3. 29The recent state government interference in business activities on U.S.-listed Chinese companies may negatively impact our existing and future operations in Hong Kong and China
4. 30Changes in China’s economic, political, or social conditions or government policies could have a material adverse effect on our future business and operations
5. 31The Chinese government also exercises significant control over China’s economic growth through allocating resources, controlling payment of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment for certain industries or companies
6. 32Interpretation of PRC laws and the implementation of National Security Law in Hong Kong involve uncertainty
7. 33We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law
8. 34The PRC government may issue further restrictive measures in the future
9. 35Our Hong Kong and China subsidiaries may be subject to a variety of laws and other obligations regarding cyber security and data protection, and any failure to comply with applicable laws and obligations could have a material and adverse effect on their business, financial condition, and results of operations
10. 36It may be difficult for overseas shareholders and/or regulators to conduct investigations or collect evidence within China
11. 37Failure to comply with laws and regulations applicable to our business in China could subject us to fines and penalties and could also cause us to lose customers or otherwise harm our business
12. 38NASDAQ may apply additional and more stringent criteria for our continued listing
13. 39We face risks related to potential delisting from the Nasdaq Capital Market due to non-compliance with minimum bid price requirementsNew
14. 40We regained compliance on June 13, 2025, after our common stock maintained a closing bid price of $1.00 or more for 20 consecutive business days. However, there can be no assurance that we will be able to maintain compliance with this or any other Nasdaq listing requirements in the futureNew
15. 41The current tension in international trade, particularly regarding U.S. and China trade policies, may adversely impact our business, financial condition, and results of operations
16. 42The Hong Kong legal system embodies uncertainties which could limit the legal protections available to the Company
17. 43The Standing Committee of the National People’s Congress (“SCNPC”) or PRC regulatory authorities may in the future promulgate laws, regulations or implementing rules that require us or our subsidiaries to obtain regulatory approval from Chinese authorities before or after listing in the U.S
18. 44The Opinions recently issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council, and the New Overseas Listing Rules promulgated by the CSRC may subject us to additional compliance requirements in the future

Risks Related to Our Common Stock

1. 45Future sales of substantial amounts of the shares of Common Stock by existing shareholders could adversely affect the price of our Common Stock
2. 46In addition, the securities markets have from time-to-time experienced significant price and volume fluctuations that are not related to the operating performance of certain companies. These market fluctuations may also materially and adversely affect the market price of the sharesNew
3. 47In the event our shares trade under $5.00 per share, they will be considered penny stock. Trading in penny stocks has many restrictions, and these restrictions could severely affect the price and liquidity of our shares
4. 48We do not anticipate paying cash dividends on our Common Stock in the foreseeable future