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The Group’s principal objectives are to expand its sales and distribution network, broaden its product range and strengthen its market leading position in the feeder cable industry in the PRC. Set out below are the business strategies of the Group:

Strengthen research and development capabilities
One of the key competitive advantages of the Group over its competitors is its research and development capabilities. The Group will continue to upgrade and improve its technology platform by investing in research and development. While keeping its focus on feeder cable for mobile communications and telecommunications equipment, the Group also intends to utilise its research and development capability to develop new versions of its existing products.

Diversify range of products
To meet the strong market demand and capture the business opportunities brought by government policy, the Group intends to strengthen its research and development efforts on other telecommunications products so that it could commence manufacturing these products on a large scale basis once the market becomes mature.With its strong research and development capabilities, the Group is well positioned to expand the scope of the application of its products to satisfy different needs of customers in various industries.

Develop and expand market share in the PRC
In addition to self-developed aluminum telecommunication cables, leaky cables and low-attenuation cables, the group also developed the flame-retardant flexible cables for mobile telecommunications, which have been widely accepted among the Group’s major customers, the three major telecommunications operators in the PRC. The Group intends to take advantage of its outstanding products to enhance its standing among major telecommunications operators in the PRC and increase its market share in the PRC. Moreover, the Group intends to seek opportunities for collaborating with the remaining provincial subsidiaries of the three major telecommunications operators with which the Group has yet to establish business relationship.

Expand the Group’s sales and distribution network
In order to ensure its continuous growth and increase in the market share of its businesses in the PRC, the Group intends to intensify its business and marketing efforts by setting up sales offices or sending its sales and marketing team to new regions to establish its presence in new markets. The Group also intends to allocate additional resources to explore and develop overseas markets. The Group is exploring the growth potential of the mobile telecommunications market in developing countries such as Russia, Brazil and India and intends to focus its overseas sales and marketing efforts on these countries.

Expand production capacity
The PRC telecommunications market has tremendous potential for development and growth, which will bring considerable potential business opportunities to the Group, especially for the forthcoming 5G era and “Broadband China”. To increase the coverage of mobile and optical fibre network in the PRC requires the Group’s major customers to upgrade their network. The Group believes and will ensure that it is able to expand production capacity promptly and meet market demand when opportunities arise.

Explore opportunities in strategic cooperation
The Group will consider entering into strategic investments or alliances and/or acquiring businesses in related fields where opportunities arise with a view to improve its technological capabilities and expand its business.