The Company’s procurement strategy for choosing appropriate suppliers is based on various factors such as product quality, price, delivery time, and compatibility. Since these raw material suppliers are not irreplaceable and there are at least two options available for the same materials, the sources of supply are sufficient. Therefore, there is no risk of excessive concentration in the procurement. In 2016, Eurocharm began domestic procurement, including purchasing materials with the cutomers and on our own. The ratio of local raw materials has gradually increased from less than 50% to 80 or 90%. In recent years, in response to potential disasters caused by climate change such as windstorm, water shortage, flooding, transportation and communication disruption, 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. Suppliers also have to manage their suppliers well and abide by our policy of honesty.
