Annual Report 2018

19 年報 ANNUAL REPORT 2018 MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 BUSINESS REVIEW Business model and strategy Our mission is to be one of the top tier steel cord and wire products manufacturers in the PRC capable of consistently purveying premium quality steel cords and wire products; and the evolution into a diversified metal product manufacturer benefiting from a successful “Eastern” brand recognition in the PRC and worldwide markets. Further details in respect of the business model and strategy of the Company, please refer to the section “ REPORT OF THE DIRECTORS ” of this annual report. Review of operations The PRC economy advanced 6.4% year-on-year in the last quarter of 2018, which was the lowest growth rate since the global financial crisis amid intense trade dispute with the U.S. and weakening domestic demand. Considering full year of 2018, the economy expanded by 6.6%, the weakest pace since 1990. As compared with 2017, PRC statistics bureau revised down the country’s GDP growth to 6.8% from 6.9%. The Sino-US trade debacle has weighed on sentiment, particularly the property market and fixed asset investment growth for the first half of 2018. The sentiment of industrial sectors was also affected during the first half year; these brought along the slowdown in demand for radial tyres from the automobile and transportation sectors and in return lowered the demand for steel cord in the latter half of first quarter and early part of second quarter of 2018. 業務回顧 業務模式及策略 我們的使命是要成為在中國鋼簾線及鋼絲產品 的頂級製造商之一，能夠持續提供優質鋼簾線 及鋼絲產品；以及受惠於一個在中國及世界各 地市場得到成功認可的「東方」品牌而晉身為一 個多元化的金屬產品製造商。就本公司業務模 式及策略的詳情，請參閱本年報「 董事會報告 書 」一節。 經營回顧 由於中國與美國出現激烈的貿易戰致全球金融 危機及國內需求疲軟，中國經濟於二零一八年 第四季同比增長 6.4% ，這是最低的增長率。 就二零一八年全年而言，經濟增長為 6.6% ， 這是自一九九零年以來的最低的步伐。與二零 一七年相比，中國統計局將國內生產總值增長 率從 6.9% 下調至 6.8% 。 中美貿易崩潰打壓了市場情緒，特別是在二零 一八年上半年的房地產市場和固定資產投資增 長方面。上半年工業類行業的情緒也受到影 響；導致汽車和運輸行業對子午線輪胎的需求 放緩，並因此令到於二零一八年第一季度下半 年及第二季度初期對鋼簾線需求降低。