What changed in this filing

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Item 1A. Risk Factors

2024-11-29 compared with 2023-12-14 · 33 added, 72 removed, 524 unchanged (17% of the section changed)

18 unchanged sentences

If we cannot maintain our culture of innovation, our long-term business prospects could be materially and adversely affected.

are exposed to concentration risk of heavy reliance on our largest nano copper supplier for the supply of nano copper solution for our

INCU technology, and any shortage of, or delay in, the supply may significantly impact on our business and results of operation.

source INCU nano copper solution for incorporation of our INCU technology into our air purifier products for sale to our customers

from our largest nano copper supplier.

As such, we rely on the ability and efficiency of our largest supplier to supply products.

Our purchase from our largest nano copper supplier amounted to approximately Nil and $315,627 for FYE2023 and FYE 2022,

respectively, representing approximately 37% and 30% of our total purchases, respectively.

Our purchases from our top largest

supplier accounted for a significant portion of our total purchases for FYE2022 and FYE2021.

we do not engage in manufacturing of nano copper solution, our business, financial condition and operating results for our air purifier

system depends on the continuous supply of nano copper solution from our largest supplier and our continuous supplier-customer relationship

Our heavy reliance on our largest supplier for the supply of nano copper solution will have significant impact on our air

purifier business and results of operation in the event of any shortage of, or delay in the supply.

Our product supply may also be disrupted

by potential labor disputes, strike action or natural disasters or other accidents affecting our largest supplier.

If our largest suppliers

do not supply products to us in a timely manner or in sufficient quantities, our business, financial condition and operating results

may be materially and adversely affected.

Any shortage of, disruption, or delay in the supply, or our inability to obtain supplies from

alternative sources will have a significant impact on our business and results of operation.

entered into distribution agreement with our nano copper solution supplier in September, 2020 and December 2021.

As is customary in the

supply or sales arrangements, the agreements with our largest supplier are terminable by either party by giving notice.

We cannot guarantee

that our largest suppliers will not terminate the agreements before the expiry of the agreements.

In the event that our largest suppliers

terminate the agreements, we will have to source products from other suppliers and we may not be able to secure a similar supply of products

with the quantity and quality required to support our business or at all.

Such termination may therefore have a material adverse impact

on our business, financial condition and operating results if we fail to engage any other suppliers with similar standards before the

is no assurance that our major nano copper supplier and supplier of raw materials for our other products will continue to supply their

products in the quantities and timeframes required by us to meet the demand of our customers or comply with their supply agreements with

If our major supplier does not supply products to us in a timely manner or in sufficient quantities, our business, financial condition

and operating results may be materially and adversely affected.

Furthermore, 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.

our largest nano copper supplier may change their existing sales or marketing strategy in respect of the products supplied to us by changing

its export strategy, reducing its sales or production volume or changing its selling prices.

As a result, there is no assurance that

our largest supplier will not appoint other agents, dealers or distributors which may compete with us in the market where we operate.

Furthermore, any significant increase in the selling prices of the products which we source from our largest suppliers will increase

our costs and may materially and adversely affect our profit margin if we are not able to pass the increased costs on to our customers.

is no assurance that there will be no deterioration in our relationship with our largest supplier which could affect our ability to secure

sufficient supply of products for our business.

In the event that our largest supplier change their sales or marketing strategy or otherwise

appoints other dealers or distributors who may compete with us, our business, financial condition and operating results may be materially

and adversely affected.

operate in a competitive industry, and if we fail to compete effectively, our business could suffer.

32 unchanged sentences

we may be forced to adopt a new brand name for our products.

As a result, we may incur additional marketing cost to raise awareness of

As a result, we may incur additional marketing costs to raise awareness of

such new brand name.

5 unchanged sentences

effects of climate change, including extreme weather conditions, create financial risks to our business.

The effects of climate change

could disrupt our operations by impacting the availability and cost of materials and by increasing insurance and other operating costs.

The effects of climate change also may impact our decisions to construct new facilities or maintain existing facilities in the areas

most prone to physical risks, which could similarly increase our operating and material costs.

We could also face indirect financial

risks passed through the supply chain that could result in higher prices for our products and the resources needed to produce them.

The effects of climate

change could disrupt our operations by impacting the availability and cost of materials and by increasing insurance and other

operating costs.

The effects of climate change also may impact our decisions to construct new facilities or maintain existing

facilities in the areas most prone to physical risks, which could similarly increase our operating and material costs.

We could also

face indirect financial risks pass ing through the

supply chain that could result in higher prices for our products and the resources needed to produce them.

is a general consensus that greenhouse gas emissions are linked to climate change, and that these emissions must be reduced dramatically

171 unchanged sentences

merit and will defend itself against the claims.

On April 9, 2024, a notice of withdrawal was filed with the Kuala Lumpur

High Court, whereby it was agreed upon both the Reseller and the Company that the Reseller withdraws their claims in the Filing without

liberty to file afresh and with no order as to costs, and that the Company withdraws its counterclaim against the Reseller without liberty

to file afresh and with no order as to costs.

a global business, we are subject to complex laws and regulations in Malaysia.

12 unchanged sentences

Existing and future asbestos-related claims could adversely affect our financial

condition, results of operations and cash flows.

condition, results of operations and cash flow.

Personal injury lawsuits may involve individual and purported class actions alleging

59 unchanged sentences

a growth of 4.2% supported by resilient domestic demand, in particular private expenditure.

escalating uncertainties in the global landscape, Malaysia’s economy remains resilient.

The GDP is forecast to expand by approximately

4% in 2023 and between 4% and 5% in 2024.

The Government acknowledged the World Bank’s forecast that Malaysia’s growth will

be 4.3% in 2024, which is slightly higher than its initial estimate.

This is in line with Malaysia’s 2024 growth projection, which

will be achieved through robust domestic demand, effectively offsetting the challenges posed by the moderate global growth, supported

by the implementation of measures in the new National Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030),

and the Mid-Term Review of the Twelfth Malaysia Plan (MTR of the Twelfth Plan).

Recent updates confirm Malaysia’s resilience, with the World Bank revising

its 2024 GDP growth forecast to 4.9%, up from 4.3%.

This growth is driven by strong domestic demand, trade recovery, and policy initiatives

like the National Energy Transition Roadmap (NETR) and New Industrial Master Plan 2030 (NIMP 2030).

Malaysia’s GDP growth reached

5.1% in the first half of 2024, a marked improvement from 4.1% in first half of 2023.

This growth has put Malaysia on track to achieve

a full-year growth rate in the range of 4.8% to 5.3%, surpassing earlier projections of 4% to 5%.

The economy exceeded expectations with

first-half growth of 5.1% in 2024, reflecting robust private spending and export recovery.

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099100924041013169/p506961179149705518d2e155d032837a3f#:~:text=In%202024%2C%20the%20economy%20is,previous%20forecast%20in%20April...

https://www.mof.gov.my/portal/en/news/press-release/economic-growth-trumps-expectations-for-two-straight-quarters-in-2024?highlight=WzIwMjVd

March 11, 2020, the World Health Organization or WHO declared the corona virus or COVID-19 a pandemic.

43 unchanged sentences

government to influence the economy, it may lead to a slowing of economic growth.

Singapore’s core inflation rose to 5.3% on a

year-on-year (y-o-y) basis in September 2022, compared to 5.1% in August 2022.

The pickup in core inflation was on account of larger

increases in the prices of food, services and retail & other goods.

CPI (consumer price index)—All Items inflation was 7.5%

year-over-year in September 2022, unchanged from that in August.

https://www.mas.gov.sg/-/media/MAS/EPG/CPD/2022/Inflation202209.pdf)

Singapore’s core inflation declined to 2.1% on a

year-on-year (y-o-y) basis in October 2024, compared to 2.8% in September 2024.

This was due to a moderation in services, electricity & gas, and retail

& other goods inflation.

CPI (consumer price index)—All Items inflation eased to 1.4%

year-over-year in October 2024, from 2.0% in September 2024.

https://www.mas.gov.sg/-/media/mas-media-library/news/consumer-price-developments/2024/inflation202410.pdf

this inflationary trend will result in higher operational costs, we believe that this also strengthens our value proposition by emphasizing

170 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors