Annual Report 2019

CHAIRMAN’S STATEMENT 主席報告 ANNUAL REPORT 2019 年度報告 5 本集團於二零一九年雖然總體銷售量平穩，但基於以 上各種原因使集團之平均銷售價格下跌，令集團之收 益下跌，縱使原材料價格也向下調，但集團未有足夠 之廢紙用作生產，而經常費用之跌幅也較少，最終 使集團於年內錄得虧損。幸而集團一直專注生產週 期較短的箱板紙及瓦楞包裝產品，並擁有優質的客 戶群，集團壞賬率近乎零，在年底時更錄得淨現金狀 況（總銀行結餘及現金高於總銀行借貸），集團的財務 狀況依然非常穩健。 集團為了有足夠的原材料生產箱板紙，已在東南亞物 色了合適的地點，將會租用新廠房安裝新的生產線， 將廢紙造成紙漿後運送到中國國內之現有廠房生產 箱板紙，此舉將一小部分生產工序轉移到海外處理， 除了可符合中國政府之進口規定，也將會使集團的生 產量及業務重回正軌。現時生產廠房正在興建中， 預計於二零二零年年中可開始投產。 展望二零二零年，我們預期上半年全球貿易及經濟會 因新冠肺炎之疫情受到重大的影響，中國經濟也會 繼續受到中美貿易戰的衝擊，然而我們深信中國政 府必定能推出一系列的政策及措施來抵禦其影響，期 望有效的政策能帶動中國經濟平穩增長，從而帶動 市場對瓦楞包裝的需求。 集團將繼續改進生產流程及減少損耗，以及嚴格監 控成本以抵抗經營成本上漲的壓力，並提供更多優 質的瓦楞包裝產品予客戶。我們承諾會盡力繼續抓 緊縱向整合的競爭優勢，使集團之盈利有長遠穩定 的增長。 最後，本人謹藉此機會向管理層及員工致謝，感謝各 位團結一致地面對逆境及重重挑戰，並感謝客戶、 供應商、銀行界及投資者多年來的支持，我們定必繼 續努力為股東帶來更佳回報。 主席 許森平 二零二零年三月二十七日 Although the Group’s overall sales volume was stable in 2019, the aforesaid reasons have resulted in a decline in the Group’s average selling prices and thus a decline in the Group’s revenue. Although raw materials prices have also declined, the Group lacked enough waste paper for production, and recurring expenses fell by less as well, resulting in the Group recording a loss for the year. Fortunately, the Group has consistently focused on producing containerboard and corrugated packaging products with short production periods, and has a high quality customer base with nearly zero bad debts. In addition, the Group was in net cash at the end of 2019 (with total bank balances and cash exceeding total bank borrowings), putting the Group’s overall financial position at very healthy levels. In order to have enough raw materials to make containerboard, the Group has located a site in Southeast Asia and will lease a new factory for the installation of a new production line, to convert waste paper into pulp for shipment into China, to feed into our existing facilities in the Chinese Mainland for the production of containerboard. This small shift in production process overseas will allow the Group to meet Chinese government import requirements and also put the Group’s production volume and business back on the right track. The production site is now under construction and is expected to start production in mid-2020. Looking ahead to 2020, we believe global trade and the global economy will be significantly impacted in the first half of 2020 by the novel coronavirus and the Chinese economy will remain under pressure from the Sino-US trade war. That said, we firmly believe that the Chinese government will launch new policies and measures to counter its impact, and we remain optimistic that effective policies will allow the Chinese economy to grow at a stable pace and lift demand for corrugated packaging. The Group will continue to improve our production process and reduce wastage, and strictly control costs to alleviate the impact of rising operating costs and provide more high-quality corrugated packaging products to our customers. We remain committed to extending our competitive advantage as a vertically integrated producer and strive for sustainable long-term growth in earnings. Lastly, I would like to take this opportunity to thank our management team and staff, express my gratitude for their solidarity in facing adversities and various challenges, and also thank our customers, suppliers, bankers and investors for their support over the years. We will continue to strive to deliver better returns to our shareholders. Hui Sum Ping Chairman 27th March, 2020