International oil prices have been persistently high and raw material shortages have continued, and the global economy is expected to continue improving as the vaccination rate rises. However, the traditional peak season for Christmas orders is coming to an end. The Group expects overseas suppliers will become more cautious and will take a wait-and-see attitude in accordance with the trends in raw material prices and international shipping rates. Hence, the number of orders and the prices of products may fall modestly at the end of this year.
Given that domestic circulation will be the main theme of development in Mainland China, the tremendous domestic market demand will help drive the recovery. However, the dark cloud of the COVID-19 pandemic still hangs heavily over the European and American markets, and some regions are even facing different virus variants. Therefore, the outlook for global economic growth remains uncertain. Barring any large-scale COVID-19 outbreak, the Group's businesses are expected to sustain stable development in the first half of 2022. And the management is cautiously optimistic about the long-term development of its businesses in the future. In view of the generally uncertain conditions, however, the Group will adopt a more prudent strategy in relation to the receipt of orders and the management of inventory, so as to reduce risks associated with rising inventory, accounts receivable and number of related turnover days.
In the long run, the Group will direct greater resources toward exploring and attracting new customers while continuing to keep abreast of the needs of existing customers. At the same time, it will make good use of its advantages and years of industry experience, and continue to invest resources in enhancing its product quality and strengthening high-end production technologies, as well as in improving the overall gross profit margin and further optimising the product mix.
In the future, the Group will continue to implement stringent cost control measures, actively improve overall administrative and operational efficiency, and pragmatically manage its financial position in order to promote the sustainable and steady development of the Company.
The Group’s success in reducing the impact of the pandemic on its business and achieving good results during the year under review is attributable to the support of the management team and customers, as well as the diligence of all employees. I would therefore like to express my sincere gratitude to all of the aforementioned parties. The Group, as always, will continue to make every effort to achieve lasting and sustainable growth as well as deliver long-term returns to shareholders.