Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS 管理層論述及分析 39 2020 ANNUAL REPORT 年報 業務展望 全世界已受到新冠肺炎疫情的嚴重影響，而對 於香港這個高度開放的國際城市受到的影響 相對較大。這實際上總結了大部份香港公司過 去和未來將繼續面對新冠肺炎疫情的影響，儘 管全球有各種疫苗面世。於二零二零年，特別 是在第二及第三季度，我們的出口訂單出現明 顯的下降，這主要是由於海外生產商關閉╱暫 停了中國境外的生產設施。這樣的關閉╱暫停 導致我們中國輪胎製造客戶的訂單大幅增加， 以填補空白。在二零二一年，各種疫苗的推出 和疫苗成效對於我們恢復日常生活常態以及平 衡國內和出口市場的需求至關重要。如果是的 話，根據以下幾點，我們對我們的業務充滿信 心和樂觀： 1. 憑藉我們的勤奮和堅持去降低我們的生 產成本，我們有信心於滕州東方有序地投 資以擴大我們的鋼簾線╱鋼絲的生產能 力，預計下半年將達到 160,000 噸的年產 量； 2. 中國的宏觀經濟環境在基礎設施投資方 面預計將有改善，這有助汽車和輪胎行業 的銷售持續增長； 3. 我們還留意到我們的一些主要輪胎客戶 正在擴大其生產能力，其形式是從已停 業的輪胎製造商那裡租賃未使用的機器 和╱或在中國境內或境外擴大產量； 4. 鋼簾線行業已開始一定程度的整合。事實 上，我們認為這是有利有弊的。從正面來 看，由於部份生產商被淘汰，產品供應將 會減少；但從反面來看，我們的一些競爭 對手正在變得更強大。但是，我們保持警 惕，維持自身品牌實力，並在提供高性價 比和可靠的產品方面表現出色； BUSINESS OUTLOOK The world had been seriously affected by the COVID-19 pandemic and the implications for Hong Kong, a highly open international city, were relatively enormous. That practically sums up what most of the Hong Kong companies have been and will continue to face the impact of the COVID-19 pandemic in the near future albeit various vaccines are becoming available to the globe. In 2020, particularly in the second and third quarters, we have experienced a discernible regress in our export orders, primarily because the overseas manufacturers closed/ suspended their manufacturing facilities outside of the PRC. Such closure/suspension has caused a material increase in orders from our Chinese tyre manufacturing customers to fill in the void. In 2021, the roll-out and efficacies of various vaccines are central to returning our daily life to normalcy, and a more balanced demand from domestic and export markets. And if they do, we are confident and optimistic about our business in light of the followings: 1. Through our diligence and conviction to reduce our costs of production, we are confident to make orderly investment in expanding our steel cord/wire production capacity at TESC which is expected to reach an annual capacity of 160,000 tonnes by second half of the year; 2. The PRC’s macro-economic environment in infrastructure investment is expected to improve, this leads the sales in the automotive and tyre industry to increase continuously; 3. We are also seeing some of our key tyre customers ramping up their production capacities, be it in the form of leasing unused machineries from defunct tyre manufacturers and/or expanding capacity within or outside of the PRC; 4. The steel cord industry has begun a certain level of consolidation. Indeed, we are aware that this might be a two-edged sword. On the plus side, supply will be lessened due to elimination of some manufacturers; but on the minus side, some of our competitors are getting bigger. However, we remain vigilant with our strength in brand and proven record in providing “value-for-money” and reliable products;