Risks Relating to Regulation, Labor Costs and Securing Personnel at Chinese Subsidiaries

「The local subsidiaries operate to reduce manufacturing costs through China's lower labor costs, benefit from the advantages of local companies in the Chinese domestic market, and expand sales channels. However, if events occur beyond the scope anticipated by the Group, such as the enactment, amendment or abolition of laws or regulations that adversely affect the business, unexpected adverse economic or political factors, a sharp rise in labor costs, or difficulties in securing personnel, this could affect the Group's operating results and financial position.」