1. The costs of the raw materials that the company uses in its manufacturing process are subject to volatility due to factors beyond its control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.
2. Any shortages, delay or disruption in the supply of the raw materials the company uses in its manufacturing process due to factors beyond the company control may have a material adverse effect on its business, financial condition, results of operations and cash flows.
3. Any disruption, breakdown or shutdown of its manufacturing facilities or the company original equipment manufacturer suppliers may have a material adverse effect on its business, financial condition, results of operations and cash flows.
4. The company inability to maintain the stability of its distribution network across the company distribution channels and attract additional distributors, dealers and retailers may have a material adverse effect on its results of operations and financial condition.
5. The company is dependent on the performance of the wires and cables market. Any adverse changes in the conditions affecting the wires and cables market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
6. If the company is unable to maintain and enhance its brands, including the company ability to protect its brand through intellectual property, the sales of the company products will suffer, which would have a material adverse effect on its results of operations. Its may also unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm its competitive position.
7. The availability of counterfeit products, such as products passed off as its products by others, and any failure to protect or enforce the company rights to own or use trademarks and brand name and identity could have an adverse effect on its business and competitive position.
8. The company inability to handle risks associated with the export sales could negatively affect its sales to customers in foreign countries, as well as the company operations and assets in such countries.
9. The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials, export of products and its borrowings, which may adversely affect the company results of operations, financial condition and cash flows.
10. The company's success depends on its ability to execute its growth strategies. If the company is unable to sustain or manage its growth, its business, results of operations, cash flows and financial condition may be adversely affected.