International oil prices are still high, and with the pandemic prevailing and uncertain, international shipping schedules have not returned to normal and raw material market supply has remained tense. The Group expects “internal circulation” to continue to be the mainstream tactic in the mainland market and sees the world overall to still be overshadowed by the pandemic with the Delta and Omicron variants spreading. At the same time, as the interest rate hike cycle in Europe and the US is about to begin, the Group expects overseas customers to adopt a more prudent ordering strategy in coping with the current economic environment.
Although high international oil prices have caused prices of plastic raw materials to stay high, the Group is prepared to ward off and manage related risks, including controlling inventory level and maintaining a strong capital position to greet challenges as well as opportunities in 2022. In the past two years, the Group secured more new customers, involving such as higher added-value and high margin products like high-end kitchenware and smart devices. In the future, the Group will explore opportunities of connecting directly with end-customers and actively look for business opportunities in related areas.
Moreover, the Group will step up research and development efforts. On top of enhancing product quality, it will actively match the needs of different customers and develop advanced high-end production technologies, to the ends of optimising its product portfolio and bolstering overall gross profit margin. As for cost control, it will actively improve overall administrative and operational efficiency, continuously implement stringent cost control measures, including reducing administrative and distribution fees and production costs. Furthermore, it is also preparing for the upcoming interest rate hike cycle, with plans to discuss with more banks on options to reduce interest expenses, such as participating in green finance.
The Group was able to mitigate the pandemic's impact on its businesses and deliver stable performance for the period under review, thanks to the strong support of the management team and customers, as well as the diligence and contribution of all staff. As always, it will continue to operate and develop businesses with a prudent and active approach, and do its utmost to achieve the primary goals of assuring long-term business development and maximising returns to shareholders to reward all stakeholders for their trust and support.