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Strategic Challenges Ahead: Assessing Risks Related to China Exposure and Workforce Dynamics for SecoWarwick

Strategic Challenges Ahead: Assessing Risks Related to China Exposure and Workforce Dynamics for SecoWarwick
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Risk factors

High exposure to China. Currently, more than 30% of the group's sales are realized in Asia (primarily China). In contrast, China accounted for 55% of the group's realized EBIT in 2022. A possible drastic economic slowdown in China, the US-China trade wars, and a war over Taiwan could negatively affect the economic situation in China and indirectly the performance of the company there.

Increase in personnel costs and access to highly qualified staff. After material and energy costs, personnel costs are the second-largest category, accounting for 22% of total costs in 2022. SecoWarwick's workforce is primarily skilled engineers (over 60%), who are often attracted by competing companies. The group must keep an eye on salaries at a competitive level to avoid migration of talent out of the group. SecoWarwick is opening offices in locations where access to staff is better, e.g. an office in Zielona Góra, in Tarnowskie Góry, near Poznań.

 

 


GPW’s Analytical Coverage Support Programme 3.0

GPW’s Analytical Coverage Support Programme 3.0

The Warsaw Stock Exchange's (GPW's) Analytical Coverage Support Programme 3.0 supports investment firms in drafting analytical reports which are financed by GPW. The objective of the Programme is to improve the availability of research covering less liquid companies, facilitating investors' informed investment decisions based on a reliable independent source of issuer information. Eligible to participate in the Programme are companies listed on the GPW Main Market (other than WIG20 participants) and on NewConnect. The Programme covers up to 50 issuers.

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