Annual Report 2018

100 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 董事會報告書 REPORT OF THE DIRECTORS PRINCIPAL RISKS AND UNCERTAINTIES (continued) Risks and uncertainties relating to the Group’s business operations (continued) 2. The average selling price of steel cords increased during the year under review, attributable to the relief in over capacity situation of steel cord industry together with the introduction of new products, effective product mix and effort in expansion of exports. The selling price of steel cords is highly dependent on the supply and demand situation in the PRC; therefore, any change in these two factors will have material impact to the performance of Steel cord segment. 3. The copper products sold by Copper and brass products segment are mainly used in industries and consumer products. The revenue of this segment is highly susceptible to changes in global economic and financial conditions and purchasing power, which will have significant impact to the business of this segment. 4. The selling price of the products sold by Copper and brass products segment are determined with reference to prevailing international copper price, which is beyond the control of the Group. Any significant change to the copper price will have palpable impact to the revenue of this segment. 5. As the Copper and brass products business has begun retracting since latter part of 2017 and the closure of PRC manufacturing plant in September 2018, the cost involved in loss of disposal of fixed assets, below market price of clearance sale of remaining inventory, redundancy expenses of staff and other expenses, which will have significant impact to the business of this segment. 6. The revenue from sales to top five customers of the Group accounted for 48.2% of total revenue of the Group for the year under review. Any change to the business operations, financial conditions or purchasing patterns of these customers may have adverse impact to the revenue of the Group. 主要風險和不明朗因素 （續） 關於本集團經營業務的風險和不明朗因素 （續） 2. 在本年度回顧，鋼簾線的平均售價上 升，是由於鋼簾線行業產能過剩得到舒 緩，新產品的引進，有效的產品組合及 努力擴展出口所致。鋼簾線的售價高度 依賴於中國的供求情況。因此，這兩個 因素的任何變化將對鋼簾線分部之表現 有重大影響。 3. 銅及黃銅材料分部銷售的銅產品主要用 於工業和消費品。此分部的營業額很容 易因全球經濟及金融狀況和購買力的變 化而受到影響，因而對此分部的業務有 顯著影響。 4. 銅及黃銅材料分部產品的售價參照現行 國際的銅價而釐定，這非本集團所能控 制。任何銅價的顯著變化將對這分部的 營業額有明顯的影響。 5. 由於銅和黃銅材料業務自二零一七年下 半年開始收縮並於二零一八年九月關閉 中國生產廠房，涉及出售固定資產虧損 的費用，以低於市場價格的庫存清貨銷 售，遣散僱員費用及其他開支，這些情 況對此分部的業務有顯著影響。 6. 在本年度回顧，本集團銷售予首五大客 戶之營業額約佔本年度本集團總營業額 之 48.2% 。該等客戶業務營運、財務狀 況或採購模式的任何變化可能令本集團 的營業額有負面影響。