Risk of declining competitive advantages due to slowing domestic demand and intensifying competition

「The Group is working to differentiate itself from competitors by making proactive business investments, strengthening its sales, logistics and technical capabilities, enforcing rigorous quality control, and creating new high-value-added businesses. However, if market competition intensifies as a result of a significant slowdown in domestic demand in key fields, the Group may no longer be able to maintain sufficient competitive advantages over competitors in its products, services and selling prices generally, which could affect its operating results and financial condition.」