A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
Rising unemployment in the midst of the global economic crisis is expected to affect demand for consumer electronic products. Due to the seasonal effect of Chinese Lunar New Year in late January 2009 and uncertainties in end market demand, current order visibility of copper foil remained fairly low. Nevertheless, application of electronic products remains an essential part of our daily life. The enormous growth potential of the domestic China market coupled with the various economic stimulation measures as introduced by the Chinese government recently will definitely have a positive effect on the long term growth prospect of electronic industry we are operating in.
Shrinking end customer demand together with intense price competition will drive weaker competitors to either cut down manufacturing capacities or exit the market. Equipped with solid business fundamentals, the Group will continue to review and fortify our extensive business network so as to gain more market share and further sharpen our competitive edge. Given our leading position in copper foil market in China and sound financial strength backed by the strong support from our parent company, the Group has got the necessary wherewithal to survive this downturn and emerge even stronger as and when the market resumes its normal growth.
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