Annual Report 2018

29 年報 ANNUAL REPORT 2018 管理層論述及分析 MANAGEMENT DISCUSSION AND ANALYSIS The Group had concentration risk of reliance on major customers as the percentage of sales to top five customers accounted for 48.3% (2017: 42.2%) for the year. Any changes in the business operations, financial conditions or purchasing patterns of these customers that result to the termination of business with our Steel cord segment, may have material impact to the results of the Group. The management of the Group values the long term relationships with these customers. We will mitigate these risks by monitoring their respective financial position and purchasing pattern, and the delivery of high and persistent stable quality products and keeping pace with these customers’ new products development through our ongoing research and development activities. We will also exert more efforts on development of new customers and/or ripening the product mix to other customers to reduce the reliance to these major customers. In addition, we will look for and/or develop any opportunity to diversify our business in related industry as shown in the discernible increase in sales volume of our steel wire products. Regarding suppliers, the purchases from the Group’s five largest suppliers accounted for approximately 61.8% (2017: 47.1%) of the total purchases of the Group for the year, while the purchases from the largest supplier accounted for 17.1% (2017: 24.5%) of the total purchases of the Group for the year. The supplies from the five largest suppliers of the Group include steel wire rod for manufacturing of steel cords. The Group has business relationship with these suppliers for over five years. We value the long term relationship with these suppliers, who have been consistently providing stable quality of raw materials to the Group. We aim to maintain ongoing mutual trust with these suppliers in order to achieve better payment terms and delivery schedule to suit our production need, which in turn enhance our production efficiency. As far as the Directors are aware, neither the Directors, their associates, nor those Shareholders (who own more than 5% of the total number of issued shares of the Company) to the best knowledge of the Directors had any beneficial interest in the Group’s five largest customers and suppliers. 於本年度，本集團有對於依賴主要客戶的集中 度風險，因本年度銷售予首五大客戶之營業額 佔全年總營業額的百份比為 48.3% （二零一七 年： 42.2% ）。該等客戶的業務營運、財務狀 況或採購模式的任何變化而導致終止與我們鋼 簾線分部的業務可能會對本集團的業績有重大 的影響。本集團管理層重視與這些客戶的長期 合作關係；我們將通過監察彼等各自的財務狀 況和採購模式、及交付高質量及持續穩定的產 品，並通過不斷的研發活動以保持與這些客戶 新產品的開發步伐來減輕該等風險。我們亦將 更盡力開發新的客戶和╱或發展產品組合予其 他客戶，以減少依賴於該等主要客戶。此外， 我們將於相關行業尋找和╱或發展任何使我們 的業務多元化機會，這反映在我們明顯增加鋼 絲產品銷量上。 關於供應商方面，本集團五大供應商的採購額 約佔本年度本集團總採購額 61.8% （二零一七 年： 47.1% ），其中向最大供應商的採購額佔 本年度本集團總採購額 17.1% （二零一七年： 24.5% ）。 五大供應商供應的產品包括用於製造鋼簾線用 的盤條。本集團與該等供應商維持超過五年的 業務關係。我們重視與該等供應商的長期合作 關係，彼持續向本集團提供質量穩定的原材 料。我們旨在與該等供應商維持持續互信關係 以取得更好的付款條款和交付時間表來符合我 們的生產需要，從而提高我們的生產效率。 就董事所知，各董事、其聯繫人士及就董事所 知悉擁有本公司 5% 以上已發行股份數目總額 之股東，概無於本集團首五大客戶或供應商中 擁有任何實益權益。