Analysis Report on Corporate Geographic Risk Diversification Strategies

Based on the relevant information searched and professional financial analysis knowledge, I will provide you with a strategic analysis on corporate geographic risk diversification.

Public data shows that the company has a high dependence on the U.S. market and faces the following risks:

1. Trade Policy Risk
   : Sino-U.S. trade frictions continue, and some products are included in the Section 301 tariff list [1]
2. Exchange Rate Fluctuation Risk
   : A large proportion of revenue is denominated in U.S. dollars, so exchange rate fluctuations directly affect profits
3. Geopolitical Risk
   : Changes in international situations may affect market demand [1]

• The European horticulture market is mature with strong consumer purchasing power
• Entry can be accelerated by acquiring local brands
• Leverage the zero-tariff advantage within the EU to reduce trade costs

• China’s domestic demand market has huge potential
• The Southeast Asian market is growing rapidly
• Japan’s market has stable demand for high-quality horticulture products

• Middle East markets (Saudi Arabia, UAE) have increasing demand for high-end horticulture products
• Latin American markets (Brazil, Mexico) have significant demographic dividends
• African markets have considerable long-term growth potential

Strategy	Specific Measures	Expected Effects
Production Base Transfer	Establish production bases in Southeast Asia (Vietnam, Indonesia) and India	Avoid tariffs and reduce costs
Procurement Diversification	Diversify supplier geographic distribution	Reduce supply chain disruption risks
Logistics Network Optimization	Establish regional warehousing centers	Shorten delivery cycles and improve services

• Develop product lines suitable for different regional markets
• Increase product added value and reduce price sensitivity
• Develop own brands and reduce reliance on OEM

• Increase R&D investment and develop differentiated products
• Promote intelligent and automated production
• Establish technical barriers to enhance competitive advantages

• Use forward foreign exchange contracts to lock in exchange rates
• Optimize the combination of pricing currencies
• Establish regional financial centers in major markets

• Purchase political risk insurance
• Establish foreign exchange risk hedging mechanisms
• Set reasonable hedging ratios

1. Quickly assess the potential of each regional market
2. Select 2-3 key target markets
3. Establish regional sales teams

1. Complete the layout of overseas production bases
2. Optimize revenue structure (target: reduce U.S. market share to below 50%)
3. Establish a global operation system

1. Form a true global business layout
2. Balance revenue share across regions
3. Establish a sound global risk management mechanism

1. Execution Risk
   : Market expansion requires time and resource investment
2. Integration Risk
   : Cross-border mergers and acquisitions may face cultural and management integration challenges
3. Cost Risk
   : Operating costs may increase in the short term
4. Competition Risk
   : New markets may face fierce competition

Through the above multi-dimensional geographic risk diversification strategies, enterprises can effectively reduce excessive dependence on the U.S. market, build a more robust global business system, and enhance risk resistance and long-term competitiveness.

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This analysis is based on public market information, for reference only, and does not constitute investment advice. Investment involves risks; decisions should be made with caution.