| Code | Topic | Timeframe | Exposure level | Description of opportunity impact scenarios | Potential financial impact caused by the incident | Countermeasures |
|---|---|---|---|---|---|---|
| C1 | Low-Carbon Product/Service Opportunities | Short term (<3 years) |
High | In response to the global trend of decarbonization, the company needs to have sufficient technical support and agency rights of relevant products to meet customer needs for low-carbon products and green products, thereby strengthening the Company's contributions to low-carbon products technical support, therefore to add value to both our vendors and clients by the Company’s ability of demand creation. | Increase in sales of low-carbon products to meet customers’ carbon reduction requirements. | Proactively monitoring and engaging in the development of innovative low-carbon products or services, and to cater industrial changes and insights, the Company will continue to provide design-in solutions relating to low-carbon or energy-efficient solutions to our customers. Although it will increase R&D expenses and operating costs, it is expected to have a positive financial impact in the medium and long term, by increasing sales of low-carbon products to meet customers’ carbon reduction requirements. |
| C2 | Opportunities from Changing Customer Preferences | Short term (<3 years) |
High | To cater to customer and stakeholders preferences, and also to comply with relevant domestic and foreign regulations, the Company has started to implement ISO14064 GHG inventory management system to ensure accuracy and transparency of GHG emissions information. | In the short to medium term, operating costs are expected to rise, and in the medium to long term, we expect to garner customers’ trust in carbon footprint and carbon reduction performance products and services. In the meantime, we may also mitigate climate litigation or fines which may incur if GHG emission information is not disclosed timely or incomplete. | Short-term:
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