1. A significant portion of its revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their requirement for its products could adversely affect its business, results of operations, financial condition and cash flows.
2. The company customers do not make long-term commitments to it and may cancel or change their production requirements. Such cancellations or changes may adversely affect its financial condition, cash flows and results of operations.
3. The company's business is dependent on its manufacturing facilities, and its subject to certain risks in the company manufacturing process. Any slowdown or shutdown in its manufacturing operations could have an adverse effect on its business, financial condition and results of operations.
4. If the company is unable to introduce new products and respond to changing customer requirements, including due to changing customer preferences and regulatory requirements in a timely and effective manner, the demand for its products may decline, which may have an adverse effect on its business, results of operations and financial condition.
5. The company RAC business is subject to seasonal variations and cyclicality that could result in fluctuations in its results of operations.
6. The company is subject to precise technical specifications and quality requirements. Its failure to comply with the quality standards and technical specifications prescribed by such customers may lead to loss of business from such customers and could negatively impact its reputation, which would have an adverse impact on its business prospects and results of operations.
7. Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase the company prices.
8. The company depends on third parties for the supply of raw materials and such parties could fail to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.
9. Any reduction in or termination of tax incentives the company enjoy or change in other favorable government policies may affect its business, results of operations, cash flows and financial condition.
10. If the company fail to effectively implement its production schedules, or the company manufacturing operations suffer unanticipated or prolonged interruption, its business and results of operations may be materially and adversely affected.