On Real International Holdings Limited (安悅國際控股有限公司)

Climate Impact & Sustainability Data (2014-03 to 2015-03, 2014-03-31 to 2015-03-31)

Defects of certain leased properties (Songgang Production Facility and Shenzhen office) lacking property ownership certificates and construction permits.
Cessation of sales to Customer B (DECT phones).
Reliance on a small number of customers, particularly Cobra Electronics Corporation (CEC).
Net current liabilities during the Track Record Period.
Fluctuations in raw material prices.
Declining selling prices.
Changes in business strategies.
Product quality and liability issues.
Potential for non-compliance with PRC laws and regulations (social insurance, housing provident fund, occupational disease prevention, environmental protection).
Outsourcing certain manufacturing processes to subcontractors.

Contingency plan for relocation from Songgang Production Facility and Shenzhen office.
Discontinuation of DECT phone product line.
Continued orders from CEC after acquisition by private equity firm.
Outsourcing of labour-intensive manufacturing processes to reduce labour costs and increase flexibility.
Foreign exchange hedging transactions.
Strengthening product portfolio, enhancing information management systems, and strengthening marketing efforts.
Stringent quality control and assurance tests.
Compliance with relevant regulations since July 2014 (Xinxing Great Success) and October 2014 (On Real (Shenzhen)) for social insurance and housing fund policies.
Contingency arrangements for Songgang Production Facility (pre-lease agreement for relocation, contingent manufacturing agreement, relocation plan).

Reliance on a small number of customers for a significant portion of revenue.
High dependence on EU and US markets.
Significant portion of revenue from two-way radios.
Risk of technology obsolescence and price erosion.
Dependence on customers' business performance.
Net current liabilities during the Track Record Period.
Fluctuations in raw material prices and availability.
Declining selling prices.
Changes in business strategies.
Compliance with laws and regulations in various jurisdictions.
Currency fluctuations.
Non-compliance with certain PRC laws and regulations (social insurance, housing provident fund, occupational disease prevention, environmental protection).
Title encumbrances on certain leased properties.
Disruption to subcontractor operations.
Cash flow mismatch due to payment terms.
Protection of intellectual property rights.
Recruitment and retention of skilled employees.
Disruption of operations.
Product quality and liability issues.
Seasonality of consumer demand.
Non-compliance with the Predecessor Companies Ordinance.
Potential changes or discontinuation of preferential income tax rate.
US, EU, and Australia sanctions against certain Russian individuals and entities.

Contingency plan for potential relocation from Songgang Production Facility and Shenzhen office.
Outsourcing of labour-intensive manufacturing processes to subcontractors.
Foreign exchange hedging transactions.
Strengthening product portfolio, enhancing information management systems, and strengthening marketing efforts.
Maintaining stringent quality control and assurance tests.
Implementing flexible production strategies.
Diversification of revenue streams and customer base.
Developing new products and product models.
Maintaining close communication with major customers.