Annual Report 2018

99 年報 ANNUAL REPORT 2018 董事會報告書 REPORT OF THE DIRECTORS BUSINESS REVIEW (continued) Review of operations The Group recorded net loss of HK$8,681,000 for the year in compared with net loss of HK$68,518,000 from previous year. Further details in respect of the fair review of the Group’s businesses, please refer to the sections “ CHAIRMAN’ S STATEMENT ” and “ MANAGEMENT DISCUSSION AND ANALYSIS ” of this annual report. PRINCIPAL RISKS AND UNCERTAINTIES The Group’s businesses, results of operations and financial position may be affected by risks and uncertainties relating to the Group’s businesses. These risks and uncertainties could result in the Group’s businesses, results of operations and financial position to defer materially from expected or historical results. The risks and uncertainties set out below are known to the Group during the year under review: Risks and uncertainties relating to the Group’s business operations 1. As the majority of sales of steel cords of the Group are domestic, the business and prospect of Steel cord segment is therefore highly dependent on the economic performance of the PRC, in particular, the performance of automotive and transportation industries and those that involve high volume of road transportation for commercial and industrial purposes, such as property development and import/export. Therefore, any downturn in the economy of the PRC may cause lower demand for steel cords and hence may have material adverse impact to the operations of Steel cord segment. Despite majority of the Group’s customers are radial tyre manufacturers located in the PRC, however their customers, the vehicle manufacturers that are located in the U.S. are affected by the Sino- US trade debacle that has weighed in market sentiment and tariff hike. 業務審視 （續） 經營回顧 於本年度本集團錄得虧損港幣 8,681,000 元， 去年虧損港幣 68,518,000 元。就本集團業務 的中肯審視的進一步詳情，請參閱本年報「 董 事長報告書 」及「 管理層論述及分析 」章節。 主要風險和不明朗因素 本集團的業務、經營業績及財務狀況可能受到 與本集團業務相關風險和不明朗因素所影響。 這些風險和不明朗因素可能導致對本集團的業 務、經營業績及財務狀況與預期或過往業績存 在重大差異。於本年度回顧本集團已知的風險 和不明朗因素載列如下： 關於本集團經營業務的風險和不明朗因素 1. 由於本集團大部分鋼簾線都是國內銷 售，因此鋼簾線分部的業務和前景高度 依賴於中國的經濟表現，特別是汽車及 運輸行業的表現和那些涉及高容量道路 運輸的商業和工業用途，如房地產開發 和入口╱出口。因此，若中國經濟衰退 可能會導致鋼簾線需求減少，及因此可 能對鋼簾線分部的業務造成重大不利影 響。儘管本集團的大部分客戶均為位於 中國的子午線輪胎生產商，但其客戶（位 於美國的汽車製造商）受到中美貿易戰的 影響，這已經打壓了市場情緒和令關稅 上升。