Bonso Electronics International Inc.

Climate Impact & Sustainability Data (2022, 2023-03-31)

Changes in international trade or investment policies and barriers to trade or investment, and the ongoing geopolitical conflict.
Heightened tensions in the economic and political relations between the United States and China.
The Holding Foreign Companies Accountable Act (HFCAA) and the PCAOB’s inability to inspect or investigate completely registered public accounting firms headquartered in China or Hong Kong.
Difficulties for overseas regulators to conduct investigations or collect evidence within China.
Increased currency risks if Hong Kong and China does not maintain the stability of the Hong Kong Dollar or the Chinese Renminbi.
Data protection and information system breaches.
Changes in China’s economic, political or social conditions or government policies.
Increased prices for raw materials.
Shortage of factory workers.
Increased competition in the industry.
Material weaknesses in internal control over financial reporting.

Maintaining banking facilities with Hang Seng Bank Limited.
Developing and implementing remediation plans to address material weaknesses in internal control over financial reporting.
Maintaining property damage insurance.
Shifting production and manufacturing of various parts and components to third party suppliers.
Forecasting with an increased buffer rate and placing orders for components earlier to allow for longer delivery lead times.
Focusing upon the production and sale of higher margin products and the elimination or decrease in the production and sale of lower margin products.
Strengthening customer base by enhancing and diversifying products, increasing the number of customers and expanding into additional markets.

Lower demand for scale products from customers.
Lower demand for pet electronic products.
Early termination of some tenancy agreements.
Increased prices for raw materials.
Potential shortage of factory workers.
Increased competition in the scale market.
Material weaknesses in internal control over financial reporting.
Depreciation of the Chinese Renminbi against the United States Dollar.
Risks associated with changes among the relative value of currencies (USD, HKD, RMB).
Difficulties in obtaining approval to redevelop the Shenzhen factory land.
Risks associated with the outbreak of COVID-19 and other public health crises.
The war in Ukraine and its impact on global economic markets.
Limitations on selling products on Amazon's platform.
Dependence on a limited number of major customers for a significant portion of revenues.
Potential defects in products.
Interruptions to shipping.
Pressure from customers to reduce prices.
Dependence on key personnel.
Potential tax consequences from contractual arrangements among subsidiaries.
Lack of requisite approvals, licenses, or permits.
Increased competition in the industry.

Increased focus upon manufacturing and selling higher margin products and the elimination or decrease in the production and sale of lower margin products.
Product enhancement and diversification.
Maintaining and expanding business relations with existing customers.
Controlling production costs (relocating manufacturing, shifting production to third-party suppliers).
Developing and implementing remediation plans to address material weaknesses in internal control.
Purchasing currency exchange forward contracts, currency options, or other derivative instruments to manage foreign currency and translation risks.
Leasing out excess space at the Xinxing facility to meet working capital demands.
Maintaining property damage insurance.
Implementing enhanced controls to address material weaknesses in internal control over financial reporting and to remedy the ineffectiveness of disclosure controls and procedures.
Providing further training and communication to accounting staff.
Increasing supervisory review and monitoring activities over financial reporting matters and controls.
Considering hiring additional experienced accountants or outside consultants.