Investor Presentaiton

23 Risk management Type of risk Macroeconomic Legal Financial Business sector Others Risk Mitigation Measures The Company proactively conducts detailed research on macro trends and relevant trade policies before making business decisions and negotiating with suppliers. Legal and Compliance Department takes charge of a regular study on laws and regulations and follows up guidelines and policies of the Communist Party and the State for setting the Company's appropriate development strategies and plans accordingly. Interest rate risk: DGW has access to low-interest loans from leading banks and financial institutions, thus the interest rate risk is not high. Currency risks: DGW is always able to timely access foreign currency from the banks to buy goods in foreign currency. ○ Price risks: DGW has set up a supply chain (purchase department) that specializes in negotiating and controlling prices with suppliers, ensuring that DGW always buys goods at the most competitive prices. ○ Risks on Receivables: DGW regularly monitors creditworthiness of our customers through assessment of their financial capacity, reputation and solvency. ○ Liquidity risk: The BOM approved maintaining a sum of working capital and strict import plans, ensuring the fastest inventory turnover. ○ Technology Risks: DGW always looks for new opportunities, seizes market demand timely and sufficiently, and comes up with appropriate business solutions in order to stimulate domestic consumption. ○ Inventory Risks: DGW has gradually improved its operational processes through ERP-SAP system allowing quick and accurate management of each dealer's inventory, which helps minimize inventory status and improve efficiency of DGW and suppliers. ○ Competitive Risks: DGW is focusing more on the core competency of a comprehensive MES provider, thereby improving efficiency and strengthening its position and role as a distributor. As a result, the risk of substitution from the supplier or retailer can be minimized. There are some unforeseeable and unavoidable risks such as extreme natural events (droughts, floods, earthquakes, etc.), war or serious diseases on a large scale. DGW regularly participates in buying insurance for employees as well as assets, goods, insurance for business interruption of the Company and customers in order to mitigate these risks. DIGIWORLD

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