Ocean Sky International Limited - Ocean Sky International Ltd ...

PROSPECTS AND FUTURE PLANS
PROSPECTS
Our Directors are of the view that we have now laid a foundation and infrastructure in the apparel
manufacturing business and established a network of customers and suppliers in the industry to enable
us to further advance the business and explore new opportunities in the future.
Our Directors believe that prospects for future apparel business for our Group should be promising and
challenging based on the following observations :-
Liberalisation of the Global Market
Our Directors have observed that the apparel industry is gradually evolving into a scenario whereby
major apparel manufacturers will operate on a global scale. Liberalisation of the global market would
enhance the transparency and operational efficiency of the market and open up new market
opportunities in the world. As more members of the World Trade Organisation around the world are
required to lift their import restrictions of apparel into their domestic markets, we believe that more
opportunities will be created for us to penetrate these markets.
Increase in Demand for Apparel Manufacturers with Integrated Services
There is a growing trend for customers to farm out part or all of the supply chain tasks to the
manufacturers outside of their region. There is thus increasing demand for apparel manufacturers who
can provide additional value-added services to customers. In addition, major customers in the US and
other markets would continue to rely mainly on sizeable and reputable manufacturers with production
facilities and management methods that measure up to their stringent requirements.
We believe that with our global operations and provision of SCM services we are positioned to meet this
demand. Furthermore, our reputation and track record, as well as our large-scaled operations therefore
give us an advantage over our competitors.
FUTURE PLANS
Our plans for the next five years are as set out below:
a. We will be expanding the range and profile of our customers beyond our current main market in
the US. In this respect, we would explore new markets in Europe, Japan and the emerging PRC.
b. We will continue to expand and upgrade our production capacity and capability worldwide. The
PRC and Central America are locations in which we would invest substantially in the next few
years. Subsequently, we will be looking at investments in Vietnam. In the long term, we would also
be exploring investment opportunities in some Sub-Sahara African countries with the intention of
creating strategic advantages to enter the European market.
c. We will continue to improve our efficiency and productivity through production management and
process refinement. We will also continue to invest in more efficient ways of production and in
management tools. We will set aside a budget to automate part of our production process to cater
for more complicated styling jobs. We expect to integrate the real-time production and
management control systems for all our global operations by end 2003.
57