Risks relating to our business
- We are dependent on the distribution of third party brands of Consumer Packaged Goods (CPG) for our brand owners;
- We are dependent on a group of customers;
- We are exposed to risk of disruptions to warehousing facilities, manufacturing facility and business operations;
- We are dependent on external manufacturers;
- We are dependent on Executive Directors and key management personnel;
- We are exposed to potential liability and/or disruption to our business for delay in obtaining the necessary licences;
- We are exposed to the risk of product misstatement and mislabelling;
- We are exposed to the risk of product liability; and
- We are exposed to the risk of negative perception and publicity on our reputation.
Risks relating to our industry
- We face competition from operators in the CPG market;
- We are exposed to the impact by changes in economic, political and social conditions and discretionary consumer spending;
- We face the risk of direct sourcing from brand owners by our customers;
- We are exposed to the risk of increase in buying power of hypermarkets and other chain retailers; and
- We may be affected by the depreciation in value of the RM.
Risks relating to our IPO
- There may be delay in our Listing or our Listing may be aborted;
- There is no prior market for our Shares and our Share price may be volatile;
- Control by our Promoters may limit your ability to influence the outcome of decisions requiring the approval of our shareholders; and
- We are an investment holding company and rely on dividend payment from our Subsidiary Companies for funding and payment of dividends on our Shares.
* Further details of our risk factors are set out in Section 4 from page 32 to page 42 of Kim Teck Cheong Consolidated Berhad’s Prospectus dated 28 October 2015.