We continued to experience a challenging operating environment, as well as dynamic consumer demand. The softening global economic environment is also adding to these challenges.

Despite this, we have made progress in solidifying our relationships with key brand customers by engaging with them earlier in the product development process and involving ourselves more in the design phases of their key products.

We are also continuing to invest in Manufacturing Excellence, including in innovation, process re-engineering and automation, which is enabling us to improve our competitiveness, differentiate ourselves from our competitors, and strengthen our engagement and relationships with brand customers.

Our efforts in the area of sustainability are also reinforcing our importance as a strategic partner to brand customers. This includes the recent accreditation of the social compliance program of our parent, Pou Chen Group, by the Fair Labor Association (FLA), making us the first FLA-accredited footwear supplier globally.

We will continue to execute our long-term strategies while limiting the impact of monthly order volatility and other disadvantageous factors, to move Yue Yuen back towards sustainable and steady growth and to maintain our status as a pioneer and leader in the footwear manufacturing industry.