Advanta Enterprises Limited IPO

The company's business is subject to agricultural, field production and processing risks, including risks related to weather, outbreaks of diseases and other natural disasters, and pests, which can adversely affect the supply and demand of our products and adversely affect its business, results of operations, cash flows, and prospects.

The company's operations and profitability are substantially dependent on its production costs, which aggregated to 38.13%, 38.01%, 39.47% and 39.31% of the company's Revenue from operations in the six months ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. Price volatility, quality deficiencies or supply interruptions in its raw materials could have an adverse effect on the company's business, financial condition and results of operations.

The company is dependents on contract growers for its seed production and the total production through contract growers accounted for 98.77%, 99.24%, 97.35% and 98.26% of the total volume of seeds produced for the six months ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. The company's arrangements with them are short-term and seasonal in nature and there is no assurance that the company will be able to source sufficient skilled growers for each cropping season. Failures to do so can limit our production volume and adversely affect its sales and results of operations.

The company derives a significant proportion of its seeds business revenue from sale of field corn which aggregated to 54.01%, 40.81%, 44.09% and 44.47% of the company's Revenue from operations from its seeds business in the six months ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively, and any reductions in the demand for or supply of such seeds could have an adverse impact on the company's business, results of operations and financial condition.

The company relies on third party tolling facilities for seed processing which accounted for 67.26%, 61.58%, 59.68% and 58.90% of its total volume of seeds processed for the six months ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively.

The company is heavily dependent on the success of its research and development to develop new and improved products that address the company's customers' needs. There is no assurance that products in development or newly developed products will be commercially successful, in which case its business, results of operations, cash flows, and prospects could be adversely affected.

The company relies on third-party distributors, dealers and retailers for the distribution of the company's products globally, and any failures on their part to successfully market and distribute its products could adversely affect the company's sales and cause the company to lose customers and market share.

The company derives a significant proportion of its revenue from international jurisdictions, specifically the Americas, which contributed 40.30%, 37.99%, 40.46% and 41.26% of the company's Revenue from operations in the six months ended September 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. Such jurisdictions subject the company to various management, legal, tax and economic risks, which could adversely affect its business, results of operations, cash flows and financial condition.

The company's business is subject to seasonality and its sales may be materially and adversely affected by seasonality.

The Company and certain of our Subsidiaries have incurred losses in the past. There is no assurance that its loss making Subsidiaries will turn profitable in the near future.