Interim Report 2022

Hop Fung Group Holdings Limited Interim Report 2022 38 MANAGEMENT DISCUSSION AND ANALYSIS (continued) OUTLOOK In the second half of 2022, the development of the COVID-19 pandemic and Sino-foreign relations will present multiple challenges to the Chinese economy, and the business environment for the corrugated packaging industry is expected to remain difficult in the second half of the year. However, the Group will maintain good capital management and low debt levels, giving it greater flexibility to cope with the unstable market conditions. At the same time, we expect our upstream business to complete the annual review of its boiler licence and resume production in 2023, in line with the completion of the installation of a pulp production line in the Philippines, which will give us a competitive advantage in vertical integration and ultimately enhance the Group’s profitability. The Group pledges to continue to strive for price leadership and to pass on operating costs to customers in a reasonable manner. It will also continue to improve production efficiency, increase sales volume and minimise raw material impairment and energy consumption to mitigate the pressure of rising costs and to achieve long-term stable growth in the Group’s profitability. The Group will continue to seize every advantage and opportunity offered by its vertically integrated operating model, and maintain a sound financial position and operating fundamentals to generate substantial returns for shareholders. At the same time, the Group will continue to place greater emphasis on environmental protection to contribute the society. 管理層討論及分析 （續） 展望 二零二二年下半年，新冠疫情發展及中 外關係將為中國經濟帶來不少挑戰，預 期對下半年瓦楞包裝業的經營環境仍然 艱難。然而集團將保持良好的資金管理 及低負債水平，有更大靈活度以應對市 場不穩的情況。同時期望上游業務預計 於二零二三年完成鍋爐牌照年審程序及 恢復生產，配合菲律賓紙漿生產線完成 安裝後，發揮縱向整合的競爭優勢，最 終提升集團盈利水平。 集團承諾會繼續爭取在價格上的領導能 力，把經營成本合理地轉嫁予客戶，並 繼續以提升生產效率、增加銷量、減低 原料損耗及能源消耗為目標，以抵抗成 本上漲的壓力，使集團之盈利能力有長 遠穩定的增長。集團會繼續緊握縱向整 合的營運模式所帶來的優勢與機遇，並 維持穩健的財務狀況與營運基礎，為股 東帶來可觀的回報。與此同時，集團會 持續加強對環保的重視，以回饋社會。