On behalf of the board (the “Board”) of directors (the “Directors”) , I hereby present the operational results of Tesson Holdings Limited (the “Company”) together with its subsidiaries (the “Group”) for the year ended 31 December 2018 to the shareholders of the Company (the “Shareholders”).
The Group completed the disposal of its business of printing and manufacturing of packaging products (the “Packing Printing Business”) on 2 January 2018. This disposal means the completion of business transformation of the Group and the core business of the Group will become the manufacturing and sale of lithium ion motive battery, lithium ion battery module, battery charging devices, battery materials machines and production lines, new energy solution and sale of relevant equipment, investments holding and import and export trading (the “Lithium Ion Motive Battery Business”).
2018 was full of challenges for the Group. Global economy, commodity markets and the atmosphere of the whole automobile manufacturing and battery manufacturing industry have been changing dramatically throughout 2018. Since the second half of 2018, Sino-US trade frictions sustained and threatened the stability of the global economy. The uncertainty around the global economy may increase the risk of an economic downturn and such potential economic downturn would inevitably influence the Group. Coupled with the tightening of policies on new energy vehicles subsidies by the People’s Republic of China (the “PRC”) government, sales of the Group in 2018 recorded a significant drop and failed to reach our expected goals. However, despite of such unfavourable business environment, we kept optimistic attitude towards business growth and continued to invest resources in production bases by buying new equipment, expanding production capacity and enhancing production quality in order to achieve sustainable growth and further expand our business. In addition to enhancing established development models, the Group has also started to actively explore strategic partnership and cooperation arrangements with electric vehicle manufacturers, vehicle battery manufacturers and research institutes in order to develop vehicle motive system and further broaden income sources in overseas market.
Furthermore, the expansion of diversified business is helpful in supporting the long-term development of the Group and reducing the Group’s risk of relying on a single market. During the year, the Group set its feet in cultural industry related business, including large-scale event production and themed museums, architectural design and engineering, and property development business in order to cope with the demand from production bases and talent housing, and achieve synergy effects.
Looking ahead, the Group will continue to develop existing business while closely monitoring the developments in market, and perform appropriate strategic adjustments in order to minimize the impact from the instability of the global economy and other external environmental factors, adopt to policy changes, keep our business on the right track and create greater value for the Shareholders.
I would like to take this opportunity to express my sincere gratitude to the Board for their support, and for contributions made by the management team and staff in the past year. Finally, I, hereby on behalf of the Board, the management and all employees of the Group, would like to express our heartfelt thanks for the long-time support and trust from the Shareholders, business partners and customers.