Dear Shareholders

On behalf of the Board, I am pleased to present the annual report of Zhongchang International Holdings Group Limited (the “Company”, together with its subsidiaries, the “Group”) for the year ended 31 December 2022 (“Reporting Period” or “FY2022”).

2022 was a very challenging year for the Group and for the wider economy in Hong Kong due to the fifth wave of COVID-19 pandemic which took place in the first quarter of 2022, coupled with the related social distancing measures. The continued travel restriction with the Mainland China and overseas countries posed serious challenges to the operating environment of retailers in Hong Kong, including the tenants of the Group. Against the backdrop of the global economic environment which was impacted by the inflation and the increase in interest rate, Hong Kong’s gross domestic product contracted by approximately 3.5% in FY2022.

For 2022, it was provisionally estimated that the total retail sales in Hong Kong decreased by 0.9% as compared with 2021. Visitor arrivals in Hong Kong staged a small recovery in the year of 2022, but remained well behind pre-pandemic levels. The further recovery of the retail sectors in Hong Kong still largely depends on the return of visitors from the Mainland China and overseas.

Looking ahead, the Hong Kong economy is expected to show a recovery in 2023, despite continued uncertainties regarding the global economic outlook and future interest rate movement. With the removal of quarantine arrangements for inbound visitors and the resumption of normal travel between Hong Kong and the Mainland China. The Group believes visitor arrivals should stage a strong rebound and be a main driver of economic growth in 2023. As the investment properties of the Group are mainly situated in the prime shopping district of Causeway Bay in Hong Kong, the Group believes it remains well-placed to benefit through its tenants from anticipated speeding growth opportunities after the pandemic.

The Group will continue to refine the diverse-trade tenants mix and to develop strong relationships with its tenants. The Group will continue to drive the performance of its core businesses at a steady pace and to improve the financing position and the financial condition of the Group.

Finally, on behalf of the Board, 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 continuous support.

Chairman
Hong Kong, 30 March 2023