IMPACTING Capitals Strategic Thrusts • With insufficient liquidity, we would be unable to meet our production and delivery targets • Any deterioration in the financial performance of our businesses would in turn impact our workforce, shareholders and other stakeholders • Without the financing to fund acquisitions, we would miss out on inorganic expansion opportunities and weaken our competitive advantage(s) • In the event of a severe economic downturn, weakness in our available cash reserves could potentially lead to bankruptcy and the loss of control over our assets POTENTIAL IMPACT AVAILABILITY OF FINANCIAL RESOURCES • Rigorously overseeing our asset and liability management strategies to ensure effective management of foreign exchange, interest rate and liquidity risks • Regularly monitoring our liquidity position, and adjusting our risk appetite accordingly • Maintaining our Group-wide focus on operational and cost efficiency, with a view to maximising our profit margins and maintaining a healthy cash balance • Leveraging economies of scale gained through our increased size, thereby reducing unit costs across input supply, production and distribution • Signing long term agreements (“LTA”) with global technology leaders and securing deposits for these agreements, thereby contributing to our total cash balance MITIGATION STRATEGIES RISK MOVEMENT We require a strong cash position to fund acquisitions and sufficient cash flows to support our varied business activities. These needs are especially pertinent in l ight of prevai l ing global economic uncertainty, as any shortfall in available funds may lead to a failure in meeting pre-agreed production levels and delivery timelines, thereby impacting our reputation. DESCRIPTION DAGANG NeXCHANGE BERHAD 58 KEY RISKS AND MITIGATION A. STRATEGIC REVIEW
RkJQdWJsaXNoZXIy NDgzMzc=