Risk Factors

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
Risks in Relation to Our Shares and Our IPO

* 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.