In RITEK's current operational structure, the CD-R business that takes up over 75% of its revenue remains the focus of its operations and is even the most important source of corporate operating funds. After the formation of Pan-RITEK Group, it at least provides a factor that stabilizes market prices although unable to raise CD-R prices. Group purchase and production planning by companies under the group is further helpful to certain extent for RITEK's overall cost reduction. Moreover, RITEK, as the leader in the CD-R industry, is in a better position than its rivals in terms of personnel recruitment and fund raising.
Despite that the competition is heating up in the CD-R industry and the more-supply-than-demand structure remains unchanged in the marketplace, RITEK maintains strong competitive advantages for the development in the industry with its strengths in production and purchase costs as well as excellent global logistics and management capabilities. Besides, RITEK will be the greatest beneficiary once less supply than demand occurs in the marketplace. RITEK's technologies and experiences in spattering, coating, materials, and film deposition manufacture also provides it with the most substantial base for the development of Optoelectronics and Photonics businesses.
We can clearly see RITEK's ambition from its deployment in Optoelectronics and Photonics businesses. It is a very important and correct operation planning for RITEK to move towards the development of Optoelectronics and Photonics businesses from the perspectives of the CD-R industry where RITEK operates and technologies and experiences in spattering etc. that RITEK possesses. Particularly in view of the developing trends in global high tech industries, RITEK's deployment in Optoelectronics and Photonics businesses will become an important source of next large profit growth for RITEK.