The main raw materials the Company uses are iron pipes, iron, iron rolls, aluminum, steel, coating, etc. The purchasing decisions are made based on the factors including quality, price, delivery and flexibility. These suppliers are replaceable, and none of the raw materials is exclusive. Therefore, there is no risk or concern over an excessive concentration of purchasing. In 2016, Eurocharm began domestic procurement along with importing customer certified raw materials. The ratio of local raw materials has gradually increased from 50% to 90%. In recent years, the global climate change may cause windstorm, water shortage, flooding, transportation and communication disruption and other disaster losses. The Company has required its major suppliers of raw materials to prepare possible response plans to reduce the impact of supply disruptions caused by the accidents.