ATOM LIVIN TECH Co.,Ltd.

Since the residential interior fittings (furniture fittings, building fittings, display fittings, etc.) sold by the Company are primarily used when new houses are built, fluctuations in the number of new housing starts directly affect business performance. As the number of new housing starts is influenced by a combination of external factors such as general economic conditions, interest rate trends, employment conditions, land price trends, and tax systems, there is a risk that the Company's net sales will decrease when these factors deteriorate. The securities report does not describe any specific countermeasures.

A deterioration in general economic conditions reduces consumers' willingness to acquire housing, affecting demand for the Company's products through a decline in new housing starts. The Company's customers are diverse, including furniture manufacturers, building fittings stores, homebuilders, and housing equipment manufacturers, but since all of them are linked to the housing market, a broad decline in demand may occur during an economic downturn. The securities report does not describe any specific countermeasures.

Interest rate trends are directly linked to housing loan costs, and in a rising interest rate environment, the cost of acquiring housing increases, which suppresses new housing starts. This may reduce demand for residential interior fittings and adversely affect the Company's business performance. The securities report does not describe any specific countermeasures.

A deterioration in employment conditions leads to a decline in household income and increased anxiety about the future, which reduces the willingness to acquire housing and leads to a decrease in new housing starts. Since the Company's business performance is linked to the number of new housing starts, a deterioration in the employment environment could become a factor in decreasing net sales. The securities report does not describe any specific countermeasures.

A rise in land prices pushes up the cost of acquiring housing and may lead to a decrease in new housing starts, while a sharp decline in land prices may also suppress housing investment due to concerns over asset value impairment. There is a risk that the Company's business performance will be affected in either scenario, and land price trends are one of the external factors that are difficult for the Company to manage. The securities report does not describe any specific countermeasures.

Changes in the tax system related to housing acquisition (mortgage tax deduction, real estate acquisition tax, consumption tax, etc.) have a significant impact on new housing starts. If tax incentives are reduced or the consumption tax rate is raised, housing demand may decline, adversely affecting the Company's business performance. The securities report does not describe any specific countermeasures.