Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 36 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 資本承擔 於二零二零年十二月三十一日，本集團有關物 業、廠房及設備之承擔為港幣 223,163,000 元。 業務發展計劃 於二零一九年，滕州東方與滕州政府機關就在 二零一零年及二零一一年透過公開競投取得的 三幅土地（「該等土地」）上將進行的項目投資建 設訂立協議。根據協議，滕州東方將在該等土 地投資建設總年產 100,000 噸鋼簾線生產線。 滕州政府機關將協助滕州東方建設項目，如處 理施工相關程序，促進水、電、道路等項目基 礎設施建設，並協助申請政府政策支持和適用 的資金支持。 建設項目自二零一九年十一月開始購置機器 及建設的廠房、附屬設施及外圍道路。項目會 根據市場情況和本集團不時之財務能力分階 段進行。預計在未來一年其資金來源為本集團 之內部資源及╱或其他融資。上述項目中的黃 絲新生產線將預計對鋼簾線分部的表現帶來正 面影響，因目前若干嘉興東方黃絲生產線已使 用超過二十多年，相對較低的生產效率及質量 不穩定性，產生高維護費和運營成本。另外， 這項目可使本集團邁向發展為一個擁有年產量 300,000 噸以上精品鋼簾線製造企業的目標。 CAPITAL COMMITMENTS At 31 December 2020, the Group had commitments in respect of property, plant and equipment amounted to HK$223,163,000. BUSINESS DEVELOPMENT PLAN In 2019, TESC entered into agreements with the relevant governmental authorities of Tengzhou in relation to the investment of a construction project to be carried out on the three parcels of land through a public auction in 2010 and 2011 (the “Lands”). Pursuant to the agreements, TESC shall invest in construction of the production lines for an annual capacity of 100,000 tonnes steel cords on the Lands. The Tengzhou governmental authorities shall assist TESC in the construction project, such as handling relevant procedures for the construction, facilitating in the construction of infrastructure of the project such as water, electricity and roads, and assisting in application of governmental policy support and applicable support funds. The construction project has commenced to acquire the machineries and constructure the factory plant, ancillary facilities and peripheral roads since November 2019. The project is carried out by phases according to the market conditions and the financial capacity of the Group from time to time. Its expected sources of funding in the coming year will be internal resources and/or other financing of the Group. The new production line of brass wire in the project as aforementioned is expected to bring positive impact on the performance of the steel cord segment as some of the existing production of brass wires of JESC, which have been in use for over 20 years, incurs high maintenance and operation cost with relatively low production efficiency and quality instability. Besides, this project can drive the Group towards its goal to become an enterprise commanding an annual manufacturing capacity in excess of 300,000 tonnes of high-quality steel cords.