Risks Associated With Over-Concentration in Purchase Or Sale and Response Measures

The Groups agented products cover all fields of electronics, such as information, optoelectronics, telecommunications, consumer electronics, industrial supplies, automotive electronics, cloud applications, green energy and medical care. In addition, the Group also has a separation of product markets to avoid excessive concentration of purchases. It is not only for the convenience of customers to make purchases, but can also reduce customers inventory risks and save procurement time and costs. Moreover, the Groups customers and suppliers are mainly world renowned companies. In order to increase the diversity of customers and suppliers, the Group not only maintains good relationships with both sides, but also aggressively seeks new customers and develops new product lines. As a result, there has been no risk of buyer and seller over-concentration in recent years.

Effects of Changes in Technology and Industry on the Groups Financial Position and Business Activities, and Response Measures

The R&D units and Investor Relations units of the Group are constantly monitoring the impact of technology and industry changes on the Group. At the same time, the R&D unit has also strengthened the development of high value-added and high-margin products, which has promoted the Groups products to be more diversified and advanced in order to stabilize the source of profit.

Future R&D Projects and Expected R&D Expenses

The Group is mainly a professional marketing distributor for electronic components. In response to the rapid changes in the semiconductor industry, the only way to create added value of products and business opportunities is through professional division of labor to provide customers with technical support solutions. In the future, the Group will continue to cultivate a high-quality team of field application engineers (FAE) to achieve smooth shipments and enhance industrial competitiveness.