The world’s economy is expected to recover with the launch of COVID-19 vaccines and the conclusion of the US presidential election. Looking ahead to the first half of 2021, Mainland China will continue focusing on the “domestic circulation” development strategy and rely on strong domestic demand to support economic recovery. Europe and the US will continue to be affected by the pandemic, making global economic growth prospects highly uncertain. If no widespread outbreak recurs going forward, the Group expects to see stable business development in the first half of 2021. The management is also cautiously optimistic in the Group’s long term development.

As the post-COVID-19 new normal emerges, the Group believes kitchenware will become its growth driver in the future, particularly those which employ high-production technologies that will grab market attention. In addition to producing traditional products, the Group will draw on its corporate advantage and years of extensive industry experience to invest in resources that will advance high-end production technologies, including electric vehicles and other new energy vehicles-related products so as to further optimise its product mix.

Various real estate market data continued to improve at the end of last year according to the “National Real Estate Development and Sales in January to December 2020” issued by the National Bureau of Statistics. It is expected that the property market to gradually rebound in 2021, with annual growth rate estimated between 5% and 10% that will be favourable to the Group’s sales of quality sanitary products.

As for cost control, the Group will continue implementing stringent cost control measures, including improving financing methods to maintain the existing low borrowing level and reducing administrative and distribution fees and production costs. It will also enhance overall administrative efficiency by sharing internal resources to achieve greater synergies and a solid financial position.

The Group was able to alleviate the pandemic’s negative impact with the strong support of its management team and customers, as well as the diligence and contribution of all staff. I would like to extend to them my sincerest appreciation. As always, the Group will continue exerting relentless efforts to achieve long-term and stable growth as well as generate long-term returns for shareholders.