Despite the gradual stabilising of oil prices, the stable prices of raw materials and part of the Group’s businesses being boosted by the domestic consumption market recently, serious impacts posed on the global economy by the pandemic that lasted for almost half a year will take time to recover. Besides, the pandemic is not yet completely under control in the world and has even rebounded in many places. As such, it is difficult to anticipate the recovery of global economy. Given that there are still negative factors including uncertainties from Mainland China and abroad, which impact the export-oriented clients in Southern China, the management remains cautious towards future development in the long run.
In such a turbulent time as this year has been, the Group is more aware of difficulties and risks while enjoying stability for the moment. Adhering to its corporate philosophy of focusing on underlying business, the Group will keep abreast of the market trends, prepare sufficient risk prevention and management measures, including stringent inventory control, and maintain capital strength, so as to meet the challenges and opportunities in tougher times. On top of producing conventional home appliances and maintaining stable relations with large toy companies, the Group has stepped up direct liaison with end-customers, further allocating resources for signing up prospective end-customers of sanitary products and actively enlarging its market share in domestic consumption. Furthermore, the Group will continue to broaden its customer base, open up more income sources and explore more markets and regions with good potential. Meanwhile, it will also proactively approach international brands and also develop high value-added and high margin products clients such as kitchenware and smart equipment. As for cost control, the Group will continue to implement stringent cost control measures, including the reduction of administrative, distribution and production costs. It will also strive to enhance overall administrative efficiency through the sharing of internal resources, with the aim of achieving greater synergies in its operations.
In addition, new opportunities have been brought by the pandemic. Apart from the large online consumption market, the working from home model will become a new normal, driving the demand for smart home products. With years of experience in the industry, the Group will accurately target new opportunities to explore more new income sources. For example, it will proceed strategically to develop high value-added and high margin products clients such as smart home products to further optimise its product portfolio.
Coincidentally, this year marks the Group’s 50th anniversary. The Group has continued to move forward after overcoming ups and downs in the past. The management team will continue to lead all staff to step forward and make another 50 years of success! In face of the challenges over the past year, the Group was able to achieve sustainable growth given the strong dedication of the Group’s professional management team over the past years and the diligence and contribution of all staff. The Group, as always, will continue to make relentless efforts and strive to achieve long-term and stable growth as well as delivering long-term shareholder value.