KHEOBA Ltd Annual Report - A Clearer Look for Investors

Welcome to a straightforward summary of KHEOBA Ltd's latest annual report for the fiscal year ended October 31, 2025. This guide cuts through the jargon, offering a clear picture of the company's performance, financial health, and future direction. Understand what these insights mean for your investment.

Business Overview: What KHEOBA Does

KHEOBA Limited, a British Virgin Islands-based company, operates as a specialized software solutions provider. Since 2021, KHEOBA has expanded its initial focus on the European tourism industry to various sectors, including hospitality, logistics, and financial services, across both Europe and Asia.

Its core business involves:

• Modular Software Integration: Connecting clients with a network of specialized software developers. This provides "building block" components, allowing clients to acquire only the specific functionalities they need, rather than monolithic systems.
• Custom Software Development: Designing and implementing bespoke software solutions tailored to unique client requirements.
• Web3 Consulting Services: Advising businesses on adopting and integrating emerging decentralized technologies like blockchain, smart contracts, and decentralized applications to enhance security, transparency, and efficiency.

A significant strategic move this past year saw KHEOBA expand into the Asian market in February 2025. This involved establishing fully-owned subsidiaries: KHEOBA Singapore Pte. Ltd. and KHEOBA Hong Kong Limited, specifically to drive software consulting business in these key regions.

Financial Performance

KHEOBA paid no cash dividends to shareholders during the fiscal years ended October 31, 2025, or October 31, 2024. This strategy indicates a reinvestment of earnings back into the business to fuel growth and expansion, particularly into new markets. As of February 27, 2026, 8,092,000 ordinary shares of KHEOBA stock were outstanding.

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Highlights

Major Achievements:

• Successful Asian Market Entry: The establishment of wholly-owned subsidiaries in Singapore and Hong Kong in February 2025 marked a critical milestone. This expansion significantly broadened KHEOBA's market reach and diversified its client base beyond Europe.
• Successful project delivery and client acquisition in key European sectors reinforced KHEOBA's market position.

Operational Challenges:

• Intense Competition: KHEOBA faced significant competitive pressures in both European and nascent Asian markets from established enterprise software providers and agile Web3 startups. This impacted pricing power and market share acquisition.
• Talent Acquisition and Retention: Rapid expansion and the specialized nature of Web3 consulting led to challenges in recruiting and retaining highly skilled software developers and consultants. This potentially caused project delays and increased operational costs.
• Managing rapid international expansion included navigating diverse business cultures and regulatory environments.

Leadership and Strategic Direction: The executive leadership team includes Mr. Irakli Gunia (CEO), Gaga Gvenetadze (CFO), and directors Ka Miew Hon and Wong Sze Chung.

A significant strategic development involved a corporate restructuring where KHEOBA's Nevada predecessor merged into KHOB Merge Sub Limited, which then became the surviving entity. This move primarily streamlined the corporate structure and optimized legal and operational frameworks for its international expansion.

KHEOBA's core strategy focuses on accelerated geographic expansion into high-growth Asian markets, diversification of its service offerings to include advanced Web3 solutions, and a continued commitment to its client-centric, modular software development model. This strategy aims to leverage its expertise, capture new market opportunities, and enhance long-term shareholder value.

Market Trends and Regulatory Impact: Global market trends significantly influence KHEOBA, including the increasing adoption of cloud-based services, the demand for digital transformation across industries, and growing interest in decentralized technologies (Web3). The company's focus on modular and custom solutions aligns with the trend towards flexible, scalable software.

Regulatory changes, particularly in international data protection and privacy laws (like GDPR and evolving Asian data localization requirements), directly impact KHEOBA's operational costs and compliance strategies. The company must continuously monitor and adapt to these regulations to avoid penalties and maintain client trust. Furthermore, evolving international trade policies and geopolitical stability could influence its cross-border operations and market access.

Key Risks to Your Investment

KHEOBA operates in a dynamic environment, and investors should be aware of the following potential risks:

• Cybersecurity Threats: Data breaches, cyberattacks, or system failures could lead to significant financial losses, reputational damage, and regulatory penalties.
• Technology and Product Development: Software bugs, integration issues, or failure to meet evolving customer expectations could impair product adoption and sales.
• International Regulatory Compliance: Operating in diverse jurisdictions (Europe, Singapore, Hong Kong) exposes KHEOBA to complex and potentially conflicting laws regarding data privacy, intellectual property, and business operations. This increases compliance costs and risks of non-compliance.
• Market Competition and Profitability: A highly competitive software market, characterized by rapid innovation and disruptive business models, could pressure KHEOBA's market share and profit margins.
• Global Economic and Political Instability: Adverse macroeconomic conditions, geopolitical conflicts, or trade tensions could disrupt operations, reduce client spending, and impact KHEOBA's international growth plans.
• Data Protection and Privacy Laws: Strict global privacy regulations (e.g., GDPR, local Asian data protection laws) necessitate robust compliance measures. Failure to adhere could result in substantial fines and loss of customer trust.
• Innovation and Technological Obsolescence: The fast-paced tech industry demands continuous innovation. KHEOBA must adapt quickly to new technologies (e.g., AI, advanced blockchain protocols) and changing customer demands to avoid falling behind competitors.
• Sales and Service Delivery: Challenges in effectively selling, implementing, and supporting complex software solutions, particularly in new markets, could hinder revenue growth and customer satisfaction.
• Legal and Intellectual Property Disputes: Potential intellectual property infringement claims against KHEOBA or difficulties in protecting its proprietary technology could lead to costly litigation.
• Customer Concentration: KHEOBA derives a significant portion of its revenue from a limited number of key clients (referred to as Customer A through M). The loss of one or more of these major customers could materially impact financial performance.

Competitive Positioning

KHEOBA differentiates itself through its modular software integration approach and its early strategic focus on Web3 consulting, particularly in the enterprise space. While facing competition from established enterprise software giants and agile local players, KHEOBA aims to carve out a niche by offering tailored, flexible solutions and specialized expertise in emerging technologies. Its geographic expansion into Asia is a key strategy to diversify its market presence and reduce reliance on the highly saturated European market.

Future Outlook

KHEOBA is optimistic about its future growth prospects, driven by its strategic entry into the Asian market and the increasing global demand for Web3 and custom software solutions. The company aims to achieve continued growth and market penetration and further solidify its presence in key industries.

However, management acknowledges the inherent challenges of operating in a rapidly evolving technological landscape and a complex global regulatory environment. KHEOBA will focus on strengthening its sales channels in Asia, investing further in R&D for Web3 applications, and enhancing cybersecurity measures to mitigate risks and capitalize on growth opportunities.