Page 58 - Mono Technology Public Company Limited : Annual Report 2014 EN

2.Risk from consumer behavior disruption on mobile operators networks

Recently, it is found that consumer behavior on mobile consumption has changed because the popularity
of Smartphone has grown owing to the revolution of mobile data transmission technology from 2G to 3G generations
enabling data transfer to be complete at a speed rate. In addition, the price of Smartphone and the cost of mobile
data connection become less expensive along with numerous capabilities of handhelds offered through the exploitation
of mobile applications, such as photography, video recorder, data sharing, etc. With social media, an extremely
influential media channel to public, people anywhere can be more connected via intercommunication and are able
to update and share their stories with real-life friends and online friends anytime. This is perfectly in line with a consumer
trend Right Here and Right Now, as seen in most-used programs like Line and Facebook with their increasing amount
of engaged users. Consequently, SMS usage becomes lessened and it will affect the revenue on mobile value added
service (MVAS) which is our main subsidiary in the future.

Apart from the development of Digital TV business and not being solely dependent on MVAS, the company has
revamped the business strategy and added mobile application development service to support an ever increasingly
Smartphone consumption. Furthermore, we lay more distinct guidelines for the original business which is our strong
advantage through marketing campaigns with all 3 mobile operators continuously to target core consumers of whom
our services are needed for. Such services are for example; mobile payment service via SMS as well as expanding our
service to other countries where the services are on demand.

3.Risk from Reliance on Expertise and Competency of Personnel

Most of products of the Company are developed and created by staff who has knowledge, capability and
specialized experience. Also, our assets include performance of artists and supporting teams. Therefore, it could be
said that Mono Group are people-based business where staff are valuable resources playing a great role in creating
works and driving business sustainable growth. Recruiting and training new staff to replace the vacant position may
take time and this may affect the image and performance of Mono Group.

As a result, the Company stresses importance on human resource by developing their business knowledge and
understanding as well as encouraging their participation in the Companys operation. The Company also focuses on
improving performance appraisal system, proving appropriate remuneration and welfare that are comparable to other
companies in the same industry as well as promoting the long-term engagement with the Company. On the part of
artist management, the Company has set a plan in terms of complete content management, such as performance
presentation as well as continuously providing jobs and activities that can generate income for artists. Moreover, artists
are encouraged to participate in producing their works in order to promote job security, thus allowing them to grow
together with the Company.

4.Major Shareholder Having Power in Directing Management Policy

As of December 31, 2014, Mr. Pete Bodharamik held up to 72.00 percent of total paid-up capital, accounting
for more than a half of paid-up capital. As a result, this leads to his right to control the resolutions of shareholders
meeting as well as the Companys policy and management, except for some agendas that require three-fourths
of votes in the shareholders meeting as prescribed by the law or the Companys Article of Association. To ensure
transparency as well as check and balance system of the Companys operation, the Company has appointed
competent personnel to be the management team. The scope of our operations has been streamlined. The Company has
clearly specified the delegation of authority to directors and executives and appointed outsiders to be the Companys
three independent directors and members of the Audit Committee who will be responsible for auditing, balancing the
decision making and considering approval of any agenda before proposing the shareholders meeting. In addition,
the Company formed the internal audit unit by hiring an experienced company that is directly supervised by the Audit
Committee for promoting their independent operation. This unit shall be responsible for monitoring internal control system
as specified by the Company in order to ensure transparency and balance of power in our business management.
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