Potential termination of contract by office tenants

The Company is also exposed to the risk of contract termination by its office tenants amid
COVID-19. The Company’s leasing strategy has always been inclined towards retail malls rather
than office. As of end December 2019, at least 85% of the Company’s leasing gross floor area
are retail malls. Majority of its office space are leased out to business process outsourcing that
are typically with longer lease terms.

Another need to be considered as a risk exposure that could affect the operation of
Vista land and lifescapes, Inc. This is considered as a 'medium and high risk' to the company
knowing that there are unexpected events may happen.

ECONOMIC PERFORMANCE RISK

Exposed to the risk of the occurrence of natural catastrophes

Vista Land is exposed to the risk of the occurrence of major natural catastrophes
including typhoons, massive flooding, droughts, volcanic eruptions and earthquakes. The
Company could lose all or a portion of the capital invested in a property, as well as the
anticipated future turnover from such property, while remaining liable for any project
construction costs or other financial obligations related to the property.

Natural catastrophes directly affect the Company’s operations. These are measured
through the following:

• Number of days of delays in project timeline

• Number of days of property downtime and business disruption

• Costs of repair or replaced damage or destroyed assets

• Costs for maintenance due to wear and tear on or damage to buildings

Proportion of spending on local suppliers

Local suppliers may be unable to meet the Company's technical requirements due to a
lack of technical expertise or other resources. As a result, local suppliers may be less efficient in
their production capacities, making their offers less competitive.

Incidents of Corruption

If incidents of corruption occur at any level or function within the company, the
effectiveness of Vista Land's control and governance may be called into question. In addition,
failing to act on corruption incidents sends the message that the company isn't serious about
enforcing its anti-corruption policy, which encourages other members of the organization to do
the same.