Agape ATP (ATPC) risk factors, FY2025 10-K

Other

1. 01We are exposed to concentration risk of heavy reliance on our two largest suppliers for the supply of our products, and any shortage of, or delay in, the supply may significantly impact on our business and results of operation28% rewritten
2. 02Furthermore, in the event of any delay in delivery of the products to us, our cash flow or working capital may be materially and adversely affected as a result of the corresponding delay in delivery of our products to our customers, and hence the delay in our receipt of payment from our customers
3. 03We could be adversely affected by a change in consumer preferences, perception and spending habits and failure to develop or enrich our product offering or gain market acceptance of our new products could have a negative effect on our business
4. 04If we fail to maintain quality products and value, our sales are likely to be negatively affected
5. 05If we are unable to create brand influence, we may not be able to maintain current or attract new users and customers for our products
6. 06We may be unable to protect our intellectual property rights
7. 07We may incur losses resulting from product liability claims or product recalls or adverse publicity relating to our products
8. 08We operate in a heavily regulated industry
9. 09Our internal controls may be inadequate, which could cause our financial reporting to be unreliable and lead to misinformation being disseminated to the public
10. 10Legal disputes or proceedings could expose us to liability, divert our management’s attention and negatively impact our reputation
11. 11Our failure to comply with anti-corruption laws and regulations, or effectively manage our employees, customers and business partners, could severely damage our reputation, and materially and adversely affect our business, financial condition, results of operations and prospects
12. 12If we are unable to successfully develop and timely introduce new products or services or enhance existing products or services, our business, financial condition and results of operations may be materially and adversely affected
13. 13We may not be able to manage the growth of our business and our expansion plans and operations or implement our business strategies on schedule or within our budget, or at all
14. 14We have a limited operating history in the Malaysia health and wellness industry, which makes it difficult to evaluate our future prospects
15. 15Our historical growth rates may not be indicative of our future growth. If we are unable to manage the growth and increased complexity of our business, fail to control our costs and expenses, or fail to execute our strategies effectively, our business and business prospects may be materially and adversely affected46% rewritten
16. 16Our lack of insurance could expose us to significant costs and business disruption
17. 17A decline in general economic condition could lead to reduced consumer demand and could negatively impact our business operation and financial condition, which in turn could have a material adverse effect on our business, financial condition and results of operations
18. 18We may be adversely affected by the performance of third-party contractors
19. 19We may need additional capital, and financing may not be available on terms acceptable to us, or at all
20. 20Adverse developments in our existing areas of operation could adversely impact our results of business, results of operations and financial condition
21. 21Fluctuations in foreign currency exchange rates could have a material adverse effect on our financial results21% rewritten
22. 22Our business depends on the continued contributions made by Mr. How Kok Choong, as our key executive officer, the loss of who may result in a severe impediment to our business
23. 23If we are not able to achieve our overall long-term growth objectives, the value of an investment in our Company could be negatively affected

Risks Related to our Industry

1. 24We operate in a highly competitive market. If we do not compete effectively, our prospects, operating results, and financial condition could be materially and adversely affected

Risks Related to Doing Business in Malaysia

1. 25Developments in the social, political, regulatory and economic environment in Malaysia may have a material adverse impact on us21% rewritten
2. 26We are subject to foreign exchange control policies in Malaysia
3. 27Economic, market and political developments in the countries where we operate could have a material and adverse effect on our business

Risks Related to our Common Stock

1. 28Volatility in our shares price may subject us to securities litigation
2. 29We may never be able to pay dividends and are unlikely to do so
3. 30Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of securities
4. 31We cannot assure you that we will be able to meet the continued listing standards of NasdaqNew
5. 32We are a “smaller reporting company,” and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies will make our common stock less attractive to investors
6. 33We expect to incur significant additional costs as a result of being a public company, which may materially and adversely affect our business, financial condition and results of operationsNew
7. 34Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be the sole source of gainNew
8. 35Securities analysts may not publish favorable research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to declineNew