Going forward, the complex and volatile international situation has added uncertainties to the current business environment. Against the backdrop of surging manufacturing costs and weakening of market demand, the business environment of the corrugated packaging industry is expected to remain challenging. The Group will strive to maintain good capital management and low debt levels to cope with unstable market conditions. Meanwhile, the Group expect the upstream business to resume operation after completion of coordination with local government for the project to change its boilers form coal-fuel boilers to gas-fuel boilers and this will give the Group a competitive advantage in vertical integration.

It is expected that in the future, the PRC government will continue to tighten control on plastic packaging, which may stimulate the use of paper packaging as a substitute, and the Group’s packaging paper business will thus be benefited. Also, the experiential growth of E-commerce will increase the need of corrugated packaging material for safety and efficiently shipping of products to customers.

The Group will focus on the key strategies of pricing power, increasing sales volume, raising production efficiency, reduction on energy usage and raw material wastage to ultimately enhance the Group’s performance.