Ocean Sky International Limited - Ocean Sky International Ltd ...

RISK FACTORS
You should carefully evaluate each of the following considerations and all of the other information set
forth in this Prospectus before deciding to invest in the Invitation Shares. Some of the following
considerations relate principally to the industry in which we operate and our business in general. Other
considerations relate principally to general economic and political conditions, the securities market and
ownership of the Invitation Shares, including possible future dilution in value of our Shares.
If any of the following considerations and uncertainties develop into actual events, our business, financial
condition or results of operations could be materially adversely affected. In such case, the trading price of
our Shares could decline due to any of these considerations, and you may lose all or part of your
investment.
RISKS RELATING TO OUR INDUSTRY AND OUR BUSINESS
We operate in a competitive environment
We operate in a competitive environment. If we are not able to compete effectively with our competitors,
for example, as regard to quality and services, our profitability and prospects will be severely affected.
We cannot ensure that we will be able to compete successfully in the future against our existing or
potential competitors or that our business, financial condition and results of operations will not be
adversely affected by increased competition.
We are affected by political, social, economic and regulatory conditions in the countries where we
operate
Our Group’s head office is located in Singapore. We have operations in Singapore, Cambodia, Malaysia,
Brunei, El Salvador, Honduras, the US, Hong Kong and the PRC. Our customers and suppliers are
located throughout the world, such as the US, Europe and Asia. We are affected by the political, social
and economic conditions in the countries in which we operate and/or where our customers and suppliers
are located. Factors such as fluctuations in exchange rates, economic recession, inflation, changes in
governmental or regulatory policies, labour conditions, implementation of import and export controls and
in policies on foreign investments can affect our operations and financial results. Our revenue and profits
will be adversely affected if there is any change in policies and/or other economic and/or political
developments that have a negative impact on our operations and business.
We are exposed to risks associated with setting up new operations in new territories
We have plans to expand our operations into new territories and diversify our operations. These future
expansion plans may subject us to additional risks in managing such foreign operations. These risks may
relate to human resource issues like staff recruitment and training, and other operational matters such as
the development of new markets with customers, consultants and suppliers. We may also incur
unexpected or additional costs which may affect the results of our operations. Other risks may include
adoption and/or expansion in government policies, limitations on repatriation of profits and unanticipated
changes in regulatory requirements. These uncertainties may have an adverse impact on the profitability
of our Group.
Our subsidiaries’ abilities to pay out dividends to us is subject to various restrictions
Our Company’s significant assets are our equity interests in our subsidiaries. The ability of our
subsidiaries to pay dividends or make other distributions to us may be restricted by, among other things,
the availability of funds, the terms of various credit arrangements entered into by such subsidiaries, as
well as statutory and other legal restrictions. In addition, although there are currently no foreign exchange
control regulation which restrict the ability of our subsidiaries to distribute dividends to us, we cannot
guarantee that the relevant regulations will not be changed and that the ability of our subsidiaries to
distribute dividends to us will not be restricted in the future. In such event, there could be an adverse
impact on our ability to pay out dividends to Shareholders.
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