Being heavily based in the PRD, we are naturally concerned with new developments in labour regulations that involve minimum wage and social security which place significant pressure on business operations. As a result, competitors in South-East Asian countries with lower operating costs are attracting greater business, although these competitors are less efficient than those based in the Mainland, cost is an important factor sufficient for buyers to make the switch. While we have focused on quality and efficiency to offset this cost difference, yet it is nonetheless increasingly difficult to maintain the client base.  

While industry should maintain its basic operations in Guangdong, we are eyeing other provinces for expansion. Also we do not exclude the possibility of expanding into regional countries such as Vietnam and Cambodia.