Risk Factors

Universal Engeisha Co., Ltd. has listed potential risks below, which may have an influence to its business. We believe it is necessary to disclose these information so the stakeholders can assess their significance and investors can make judgements. By recognizing the potential risks, the Company strives to avoid and prevent these risks from occurring, while taking other effective measures to promptly and adequately respond to risks when they happen.

This section includes statements for future expectations based on the Financial Report 2012 (September 9, 2012).

For more information, please look at the Risk Factors section in the Financial Report 2012.

1. Risks related to economic conditions.
2. Risks related to unseasonable weather.
3. Risks related to change of customs.
4. Risks related to raising fuel prices.
5. Risks related to influences of competitors.
1. Decreasing price because of competitive pricing
2. Decreasing market share because of competitor’s investment in new products or services
6. Risks related to the business between prime contractors.
7. Risks related to business activity in China.
8. Risks related to natural disasters or unpredictable events.
9. Risks related to retention of human resources and lost training opportunities.
10. Risks related to the loss of existing staff, their knowledge and skills.
11. Risks related to major traffic accidents that causes social chaos.
12. Risks related to leaks of confidential information.
13. Risks related to legal restrictions and litigations.
1. Environmental regulations or issues
2. The Road Traffic Act
3. Permissions related to constructions