http://www.hkexnews.hk/listedco/listcon ... 215013.HTMRisks associated with the business of our Group• Our success depends on the continuing efforts of our senior management team and key
members of our research and development team and our business may be harmed if we lose their services.
• Our competitive edge relies on us being able to protect our technical know-how and trade secrets.
• We rely on
one production site in Germany to manufacture our in-house resin and to manufacture over 50% of our Group’s products.
• Our operations rely on the supply of raw materials from a few major suppliers.
• Our turnover relies on a few major customers.
• We may be obligated to pay significant compensation to our chief executive officer, if his employment is terminated under certain circumstances.
• Our turnover is substantially derived from the automotive and general industry segment.
• Our Group’s investment in the development of new technologies may not equate to
commercial success.
• Our international operations may expose us to fluctuations in foreign currency rates.
• We are subject to existing and changing environmental laws and regulations. Potential
liability for environmental problems could result in substantial costs.
• We have not yet obtained the relevant approval for occupational disease prevention project for our production facilities at Huizhou and Tianjin.
• We are subject to European Union REACH obligations.
• Our products may fail to perform as expected or may contain defects, and these failures or defects, and any negative publicity resulting from them, could result in reduced sales and could subject us to claims from purchasers or users of our products.
• Our insurance coverage may prove inadequate to cover potential claims in full.
• We may be subject to intellectual property claims.
• We may not be able to adapt to our customers’ varying requirements and demand, which could affect our relationship with customers.
• We must keep up with technological changes in the market in order to remain competitive.
• Our Controlling Shareholder is able to exercise significant influence over our corporate
policies and direct the outcome of corporate actions.
• A substantial portion of our Group’s sales to its customers is made on a credit basis.
• We do not have a full track record period for our production facilities other than in
Germany and our results of operations during the Track Record Period may not be
indicative of our future performance due to the significant changes we have made to our
Group structure.
• Our expansion strategy may not be achieved.
• Any restriction on the ability of our subsidiaries to pay dividends to us would adversely
affect our cash flows.
• We rely on advances and short-term bank loans and state-bank granted loans, among other cash resources, for our working capital needs.
• Risks associated with credit agreements for our business in Germany.
• We are subject to credit risks and counterparty risks in respect of our derivative
transactions.
• We may be unable to obtain financing on favourable terms, or at all, to fund our continuing operations, existing and future capital expenditure requirements, acquisition and investment plans and other funding requirements.
• Our business operation results may experience significant fluctuations.
• We have not obtained legal titles to some of the properties we occupy and certain of our leased properties may be subject to title encumbrances.
• Any business disruptions we experience as a result of acts of God, acts of war, epidemics,including the recent outbreak of swine influenza, and other factors outside of our control could affect our business and might result in substantial costs.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"