Risk & Mitigation
A successful company should not only focus on its goals and vision, but also how to deal with various risks as a test of corporate resilience. Only by facing up to potential risks and planning mitigation measures can we ensure the long-term development of our enterprise. While they are not currently a
threat to us, planning ahead will ensure the company achieves its goals sooner rather than later and is prepared for the exit strategy in the future .
Business Risk
As the company’s business expands, operating costs may increase
significantly, and the costs involved may be much higher than we
anticipated. Additionally, the merger or loss of developers will also seriously affect our results and profitability .
Mitigation
We will focus on improving our real estate inspection and marketing capabilities to ensure profitability. We will also diversify the development of housing resources and our network of developers to reduce the risks arising from a concentration of developers .
Disease Risk
World infectious diseases such as COVID-19 may cause temporary closure of our offices, which will also affect the overall housing market, affecting our sales performance and profitability.
Mitigation
Our office will strictly implement pandemic prevention measures to ensure the safety of our employees in a post-pandemic era. We will also continue to build a virtual sales and remote office model to ensure that agents can continue to operate during would be MCOs. For the latter, the data shows that the real estate industry can continue to develop during the pandemic, and we will focus on improving real estate analysis and our marketing capabilities to ensure profitability.
Personnel Risk
The real estate agency industry is highly dependent on the sales strength of the agency to keep it going. With scarce human resources, if the company cannot maintain or increase the number of agents, we may not be able to implement the growth strategy as planned.
Mitigation
Because the company attaches great importance to agent benefits, salary, and will also provide continuous job training, coupled with the excellent development prospects of the real estate service industry, the company is currently not facing the risk of a large loss of human resources.
In the future, the company will also positively manage the relationship
with existing staff to improve overall morale and work efficiency. We will also pay attention to rewards and benefits of employees, continue to attract human resources to join our company, and share in the growth and profits.
Regulatory Risk
The real estate service industry has always faced legal risks. Once the agent sells real estate in an illegal manner, or misleads consumers with deceptive, deceitful and false terms, there is a possibility of running afoul of the law. Agents may also suffer complaints and lose their qualifications for various reasons; Agents or companies may also be involved in housing disputes and be sued by consumers.
Mitigation
We strictly require agents to abide by the professional ethics, providing advice to customers rooted in integrity to protect the best interests of consumers. Both the company and agents will abide by the company’s governance framework, complying with legal requirements to minimize regulatory risks.