1. We derive a substantial portion of our revenues from the sale of our water purifier and water softeners products (84.25% and 85.93% of our revenue from operations in the six months ended September 30, 2024 and Fiscal 2024, respectively). Our inability to anticipate and adapt to evolving consumer preferences and demand for water purifier products, or ensure product quality, may adversely impact demand for our products, brand loyalty and consequently our business, results of operations, financial condition and cash flows.
2. Our limited operating history in the kitchen and home appliances and fans product categories presents significant challenges. We may struggle to compete successfully against established competitors in these categories. Further, the historical growth rates we have experienced in these new product categories may not be indicative of our future performance.
3. The availability of counterfeit products, such as products passed off as our products by others, could have an adverse effect on our business, results of operations, financial condition and cash flows.
4. We operate in a competitive market and any increase in competition may adversely affect our business, results of operations, financial condition and cash flows.
5. Interruptions in the supply of raw materials or fluctuations in raw material prices could adversely affect our ability to manufacture our products and consequently our business, results of operations, financial condition and cash flows.
6. Our manufacturing facilities are subject to operating risks. Any slowdown or interruption to our manufacturing operations may have an adverse impact on our business, results of operations, financial condition and cash flows.
7. Our business is manpower intensive. Our business may be adversely affected by work stoppages, increased wage demands by our employees, or an increase in minimum wages, and if we are unable to engage new employees at commercially attractive terms.
8. Our operations are dependent on our ability to attract and retain qualified personnel, including our Key Managerial Personnel and Senior Management and any inability on our part to do so, could adversely affect our business, results of operations, financial condition and cash flows.
9. Our inability to effectively manage our growth or implement our growth strategies may have an adverse effect on our business, results of operations, financial condition and cash flows.
10. Our success also depends to an extent on our research and development capabilities and failure to derive the desired benefits from our product research and development efforts may hurt our competitiveness and profitability.