【正文】 roup respectively and the Group’s purchases from the five largest suppliers accounted for approximately [*]%, [*]% and [*]% of the total purchases of the Group respectively. If the Group’s major suppliers cease to supply to the Group or increase the price of the materials and the Group is not able to identify an alternative source of such materials, the operation and profitability of the Group may be adversely affected.Reliance on major customersA significant portion of the Group’s revenues has been, and may continue to be, derived from a limited number of customers. For each of the three years ended [*], the Group’s sales to its largest customer, [*], accounted for approximately [*]%, [*]% and [*]% of the Group’s turnover respectively and the Group’s sales to its five largest customers accounted for approximately [*]%, [*]% and [*]% of the Group’s turnover respectively. The five largest customers of the Group are independent of and not connected with any of the directors, chief executives, supervisors, substantial shareholders or management shareholders of the Group or its subsidiary or any of their respective associates. In the event that the Group fails to secure new contracts from such major customers, and is not able to obtain new customers and/or any of the major customers encounters operating and/or financial difficulties, the Group’s business and financial position may be adversely affected.Reliance on senior managementThe Group’s success is attributable to, among other things, the contribution and continuous service and performance of the Group’s senior management team as stated in the section headed “Directors, supervisors, senior management and staff”. Each executive Director has 10 / 85entered into a service contract with the Group for a term of three years mencing from the Listing Date. However, there is no assurance that the Group is able to retain member(s) of the senior management team or recruit further petent personnel for its future development. The unanticipated departure of any member of the Group’s senior management team without immediate and adequate replacement or the inability to recruit petent successor(s) or further petent personnel for its future development could have a material adverse impact on the Group’s business.Reliance on skilled employeesThe Group possesses key and unique technology in the gas machinery field. In order to maintain its petitiveness, it has successfully trained a group of experienced and skilled employees to engage in the Group’s product development. Although the Group has largely increased the salary and benefits of these skilled employees, the loss of services of any of them may have a material adverse effect on the Group. The Group believes that its future success will depend, to a large extent, on its ability to attract and motivate highlyskilled managerial employees. Such employees are in [great] demand in the gas machinery field in the PRC. There can be no assurance that the Group can retain its skilled employees or that it can attract or retain such employees in the future. Failure of the Group to recruit and retain the necessary employees may have a material adverse effect on the Group’s business and operation.Risks relating to the gas machinery marketThe Group produces a variety of products for the gas machinery market which include all kinds of high pressure containers, different kinds of industrial chemical tankers, CNG vehicles and a range of natural gas station facilities. These are very specialised and durable products which do not need to be replaced regularly. As such, the Group’s sales and financial conditions may be adversely affected if the Group fails to enhance the use of existing products or launch and introduce new products for the gas machinery market in a timely manner.Reliance on other related industriesThe production and sale of the Group’s major products are largely dependent on the development of related industries. For instance, the sale of facilities used in CNG stations depend on each countries’ restrictions on the development of the natural gas industry。 CNG vehicles are mainly used for the transportation of natural gas to nearby stations and the sale of such vehicles are affected by the source and consumption of natural gas. In addition, the sale of different kinds of pressors and industrial chemical tankers are affected by the development of relevant industries using these pressors and pressor vessels. Although the Group’s major products are used in key industries that are encouraged by the PRC government, if changes are made to existing government policies, the Group’s sales to such industries will be adversely affected.Risks associated with the purchase of raw materialsThe Group currently outsource the processing of materials for its major products. In addition, most of the key ponents such as [steel pipes] and [casting] used in the production of the Group’s products are subject to price fluctuations. As such, potential investors should be aware that any delay in the supply of outsourced processing materials 11 / 85and any significant fluctuation in the prices of the Group’s major raw materials may have an adverse impact on the Group’s operation and profitability.Risks associated with product managementThe Group’s product development strategy is associated with the development of the energy and fuel industry. As such, the Group produces a variety of products which are used in different sectors of the gas industry. With increased product variation, the Group may encounter difficulty in research and development, product management, sales management as well as the provision of aftersales services. The Group intends to centrally manage the production of its products and other logistics as well as set up different sales teams to i