Stock Code: SEHK: 00859.HK
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Corporate Profile
Chairman’s Statement
Board of Directors
Other Information

Dear Shareholders

On behalf of the Board, I present the audited annual results of the Company and its subsidiaries (the “Group”) for the nine months period from 1 April 2018 to 31 December 2018 (the “Reporting Period”).

During the Reporting Period and particularly in the second half of 2018, the global economy had been volatile due to (i) the US interest rate hikes; (ii) the escalating trade tensions between the US and the PRC; (iii) the depreciation of the Renminbi against the US dollar; and (iv) the growing possibility of Brexit. In contrast, the PRC economy remained on track and manageable and the PRC government had taken a supportive policy to encourage internal consumption in order to encounter the effects of the trade dispute between the US and the PRC, such as reduction in the bank’s reserve requirement ratios to increase money supply in financial system.

Led by a satisfactory level of local consumption and a rising visitor arrivals, overall retail market in Hong Kong demonstrated a modest improvement during the Reporting Period. It is expected that the retail market in Hong Kong will continue to record a strong demand as supported by the rising household income and a consistently low unemployment rate. Benefiting from the strong retail demand resulted from the recovery of retail market in Hong Kong, the Group was able to lease out most of its investment properties by renewals of the existing lease contracts and entered into new lease contracts during the Reporting Period.

We believe the prospect of the Hong Kong economy will remain positive as it plays a greater role in the development of the Belt and Road Initiative and Greater Bay Area as well as various strategic infrastructure projects, such as Hong Kong Zhuhai-Macau Bridge which connects Zhuhai with Hong Kong and Macau to form a tourism hub offering sightseeing, gaming and theme parks. The Group will continue to consolidate and strengthen its investment property portfolio with a view to enhancing the Group’s profitability.

During the Reporting Period, the Group expanded into the property project management business in the PRC, and recently invested in two property development projects in the PRC. In view of the stable economy in the PRC, we are positive about the prospect of the property market in the PRC and will continue to identify property investment opportunities in the Greater Bay Area and the Yangtze River Delta Area by ways of acquisitions, public tenders and cooperation with other parties.

Finally, I would like to express my sincere gratitude to all fellow directors and staff for their dedication and contribution, and to the Shareholders and business partners for their support.

WANG Junyong

Chairman and Executive Director
Hong Kong, 22 March 2019