Risks in Relation to Our Business
- Dependent on the continued services of our key management for the continuing success of our Group;
- Non-renewal or revocation of vehicle permits and / or business licences may adversely impact our business operations;
- Our internal port haulage transportation services are reliant on the continued operations of the port;
- Dependent on technological advancements such as GPS and any system disruptions may result in interruptions to our business operations;
- Inadequate insurance coverage may adversely affect our business and financial performance in the event claims against our Group exceed the coverage of our insurance policies;
- Contamination or accidents involving land transportation of hazardous materials may adversely affect our Group's reputation, business operations and financial performance;
- Non-renewal or termination of existing tenancies of our branch offices and site offices may adversely affect our business operations and profitability;
- Borrowings and fluctuations in interest rates may affect the ability of our Group to obtain additional funding in the event we are unable to meet our repayment obligations; and
- Default or delay in payment by our customers which lead to impairment losses on trade receivables or bad debts may adversely impact our financial performance.
Risks in Relation to Our Industry
- Unavailability of drivers may lead to disruptions in our Group's daily land transport operations;
- Adverse fluctuation in fuel prices may result in an increase in our cost of sale, thus adversely affecting our operations and financial results;
- Road accidents and traffic interruptions may disrupt our business operations and adversely affect our reputation and financial performance;
- Increased competition from existing competitors and potential new entrants may have a material adverse impact on the operating results and financial position of our Group;
- Liberalisation of the logistics industry in the ASEAN region may increase the level of competition in the logistics industry in Malaysia which may have an adverse impact on our Group; and
- Adverse developments in political, economic and regulatory conditions in Malaysia may adversely affect our financial position and business prospects.
Risks in Relation to Our Shares and Our IPO
- No prior market for our Shares may result in an inactive market for our Shares and our IPO Price may not correspond to the price at which our Shares will be traded;
- Capital market risks may affect the market price of and demand for our Shares and our share price may be volatile and could fluctuate significantly and rapidly;
- Failure or delay in our Listing may occur;
- Control by our substantial shareholders may allow them to influence certain decisions of our Group;
- Payment of dividends by our Company is not guaranteed;
- Future fund raising exercises may dilute shareholders' equity and / or restrict our operations; and
- Disclosure regarding forward-looking statements which are subject to uncertainties and contingencies.
* Further details of our risk factors are set out in Section 4 from page 34 to page 44 of Xin Hwa Holdings Berhad's Prospectus dated 11 June 2015.