Management Policy

Risk Factors

The following items concerning the Optorun Group’s business activities, financial condition and other aspects of operations are believed to be potential sources of risk or other factors that may have a significant effect on investment decisions.
Items concerning future events are based on the decisions of Optorun as of March 25, 2020, the date the Securities Report was submitted. For more information, please see Business Risk section of the Prospectus in the IR Library. 1. Risks involving the business climate
(1) Responses to changes in customers’ needs
(2) Changes in customers’ capital expenditures
(3) Terms for payments by customers for products and services
(4) Changes in the cost of purchasing raw materials
(5) Global events
(6) Events in specific regions of the world
(7) Foreign exchange rate movements
(8) Legal restrictions
(9) Legal environmental restrictions

2. Risks involving business operations
(1) Timing for recording sales
(2) Reliance on one or more customers
(3) Reliance on one or more technologies
(4) Ability to recruit people with advanced technological skills
(5) Restrictions on patents and intellectual property rights
(6) Geographical concentration of manufacturing operations
(7) Development and production of optical thin film coaters
(8) Product liability
(9) Intense price-based competition
(10) New businesses

3. Other risk factors
(1) Relationship with Zhejiang Crystal-Optech Co., Ltd., an affiliated company
(2) Natural disasters and other emergencies