'Dual circulation' to boost growth (III)

A1: As TCP's top overseas market, China is integral to the success of our business globally. In 2020, this has become even more apparent during what has proven to be one of the most challenging years faced by the whole world in decades.

Throughout the year, TCP has focused on doing our part to contribute to China's recovery by further deepening our local commitments. We unveiled plans to invest 1.06 billion yuan in the Chinese market over the next three years. This large-scale investment will help to expand TCP's domestic business by strengthening our local partnerships, establishing a new representative office, in-country team, and manufacturing centers as well as supporting the launch of new Red Bull products.

As my family's ancestral home, China has always held a very special place in my heart.

A2: We're confident that this new economic paradigm will help to usher in a fresh chapter for the next phase of China's development, enabling the country to effectively mitigate the effects of a more challenging external environment while further accelerating its longstanding transition toward more balanced, sustainable and inclusive growth.

TCP is confident that "dual circulation" will create exciting new opportunities for our global "House of Brands" to tap into.

A3: The Chinese government's focus on ensuring stability on the six fronts and security in the six areas has been critical to keeping the economy on an even keel and supporting its accelerating recovery. All aspects of the six fronts and six areas have proved conducive to the continued development of both Chinese and foreign companies.

For TCP's business, the focus on continuing to support foreign trade and investment, safeguard the operations of market entities and ensure stable supply chains have been particularly important.

A4: TCP has benefited enormously from China's success in quickly getting the pandemic under control. This success enabled us to first maintain stable operations during the early days of the outbreak and then stage a gradual return to our normal business activities ever since. It also gave us the confidence to proceed with our new three-year commitment to invest more than 1 billion yuan in the Chinese market.

I've been deeply impressed by China's efforts to safeguard people's health and well-being during the pandemic as well as their livelihoods.

A5: In recent years, as China moved toward its goal of building a "moderately prosperous society," it became increasingly clear that the country's transition toward a new phase of development was accelerating rapidly. TCP has also moved quickly to ensure that our own development as a business is closely aligned with the game-changing shifts unfolding throughout China's social and economic landscape.

For example, we've been actively expanding our domestic manufacturing capacity through new local partnerships. We've been striving to make meaningful contributions to China's drive to transform itself into a global powerhouse for innovation.

A6: China is already at the heart of TCP's business strategy. In the future, I'm certain that the Chinese market will become even more important to our continued success, particularly as it continues to play a leading role in powering the global economy's recovery from the pandemic. TCP will need to further deepen our presence in the Chinese market to ensure that we both contribute to and benefit from its future growth in the post-pandemic world.

A7: China looks set to dramatically accelerate its transformation into a global powerhouse for innovation, sustainability and consumption. We will make certain that our business strategy is carefully adapted to ensure that we make meaningful contributions to those national priorities as China's grand blueprint takes shape over the next half decade as well as longer-term through 2035.

For example, we will support China's innovation drive by continuing to expand our IP-related initiatives with our local partners, particularly TCP's IP fund and our new partnerships in this field.