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The pace of economic growth of the Mainland China is expected to remain buoyant in 2008, primarily driven by business investment and net exports. It appears likely that the policymakers would apply macroeconomic measures to cool the economy by curbing inflation and alleviating disruptions. Investment growth will remain robust. However, exports to the US may slowdown, which would be more than offset by China's sustained export penetration to other key regions. Domestic consumption should continue to proliferate commensurable with escalating income and wealth.
While Citychamp Dartong and EBOHR will be the recurring sources of profit and funds for working capital, sales proceeds from the land owned by Seti Timber Industry (Shenzhen) Company Limited (“Seti Timber”) will provide a one-off source of profit and funds for investment.
The Group has been evaluating investment opportunities in the watches and timepieces business, also strives to further strengthen corporate governance and internal control.
Owing to the burgeoning growth in investment, consumption and wealth in Mainland China, we believe that the performance of real estate development, watches and timepieces and enamelled copper wire businesses will continue to flourish in the near future. |
