Risks related to buyouts, guarantees and decision-making in the joint venture with the Sandisk Group

「Under the joint venture agreements, if a termination event occurs, such as a breach of contract by the Sandisk group, the Group may be required to buy the Sandisk group’s interest, reflecting the remaining book value of production equipment held by the 3 manufacturing joint venture companies. This could require substantial funds and affect the Group’s business, operating results and financial position.」