A

1

**Dependence on Global Apparel Industry:**

- Teejay Group's primary focus on weft knitted fabric for branded clothing makes it susceptible to the performance of the global apparel industry

A decline in the industry could adversely affect Teejay's revenue and profitability.

B

2

**Currency Exchange Fluctuations:**

- Teejay, operating internationally, faces risks associated with currency exchange rate fluctuations

Changes in the value of the Sri Lankan rupee may impact the company's competitiveness and profitability in the global market.

C

3

**Supply Chain Disruptions:**

- Teejay's intricate supply chain involving lace dyeing, yarn dyeing, and synthetic fabric production may be vulnerable to disruptions, impacting production schedules

External factors like geopolitical tensions or natural disasters could pose challenges.

D

4

**Customer Concentration Risks:**

- Teejay's strong partnerships with major retail brands globally, including PVH, Nike, and Marks & Spencer, bring stability, but over-reliance on a few key customers poses risks

A shift in preferences or business decisions by major clients could impact Teejay significantly.

E

5

**Environmental and Regulatory Compliance:**

- As Teejay emphasizes sustainability, any changes in environmental regulations or failure to comply with evolving standards may result in increased operational costs or reputational damage

Adapting to and meeting stringent compliance requirements is essential.