လယ်ယာထုတ်ကုန် ပြုလုပ်စနစ်

2025 နှစ်သက်တမ်းအစီရင်ခံစာများ

Risk စီမံခန့်ခွဲမှု

Risk Management

Possible Risk Factors

GBS Agricultural Services Public Company Limited is a company primarily engaged in the purchase, distribution, and sale of Kubota-branded agricultural machinery, as well as the domestic and international trading of agricultural crops. Therefore, there are potential risks associated with the country’s economic and environmental conditions.

Regulatory Risk

There may be risks arising from government policy changes and imposed restrictions.

Financial Risk

Market instability and foreign exchange fluctuations can cause financial risks.

Foreign Exchange and Trade Risks

International trade restrictions may affect demand and supply of products, which could directly impact the revenue and market value of G.B.S ASP.

Climate-related & Natural Disaster Risks

Additionally, climate-related and natural disaster risks (e.g., flooding, earthquakes, climate disruptions) may result in lower crop yields. Improper farming methods could also reduce production. Related to this, logistics and supply chain operations may face higher costs and delays in transportation and storage of crops and produce.

Operational risks

As the company is primarily engaged in purchasing crops for domestic and international sales, operational risks may arise from quality standard issues, storage periods, and shipment delays, which may lead to product damage and losses.

Credit Risk and Settlement Risk

Since GBSASP supports farmers through agricultural financing and contract farming, the company may face credit risk and settlement risk.

Liquidity Risk

During crop-growing seasons, farming costs may rise significantly, and if working capital becomes insufficient, liquidity risk may occur.

Regional Risks and Control Challenges

In agricultural services, selling and maintaining machinery also carry risks such as product quality defects, warranty-related replacements before the expiry period, and delays in providing timely services depending on regional conditions. These may result in customer complaints and additional expenses. Furthermore, there may be regional risks and control challenges in areas where GBSASP Kubota showrooms are located.

Risk Management Strategies

  • Maintain good relationships with relevant authorities and NGOs.
  • Expand market access domestically and internationally.
  • Make purchase decisions based on pricing mechanisms to reduce market risks.
  • Enter into contracts with farmers for crop purchases.
  • Adopt climate-resilient technologies.
  • Transfer risks through insurance coverage.

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