The current principal business of the Group includes property investment, property development, hotel operations, provision of financial consultancy service and provision of comprehensive healthcare planning and management services in the PRC.

For the property investment, the three investment properties of the Group, namely 達興豪苑 in Zhongshan, 卓越大廈 in Yingkou and Jinggangshan hotel in Jiangxi, have all been leased, signing long-term lease agreements ranging from around 9 to 15 years, which has guaranteed its long-term rental income and a stable annual cash inflow for the Group, thereby allowing the Group to focus on developing other business with the bulk of its resources and energy.

For the property development, pre-sale of the apartment units of the Golden Beach No. 1 Project phase I located in Weihai, Shandong province, the key project of the Group, has commenced in the third quarter of 2018. The project was originally expected to be completed and delivered in the fourth quarter of 2020. However, affected by the outbreak of COVID-19, the construction progress is severely hindered and the latest estimated completion time will be delayed to the second half year of 2021. The Group will then be able to recognise sales revenue from the Golden Beach No. 1 Project phase I in the financial year of 2021/22. In addition, the Group is conducting in-depth research on the Golden Beach No. 1 Project phase II in Weihai, next to its phase I, and may continue with development of the Phase II, expecting these two projects to create synergies.

For the hotel operations, the Golden Beach No. 1 Project phase I located in Weihai, Shandong province is still under construction. Also affected by the outbreak of COVID-19, the hotel is expected to be completed and start business in the second half year of 2021. The hotel portion of the Golden Beach No. 1 Project phase I, becoming a new landmark and the highest building of Weihai city, Shandong province, will be managed by a worldrenowned hotel management company, making it the first international fivestar hotel of the city.

Suffering from the global weak economy, the financial consultancy service business is not able to maintain its revenue level. The Group is studying to adjust the development direction of its financial consultancy service to adapt to the current market situation.

The new business segment of comprehensive healthcare planning and management business was established during the Current Year. Currently, the comprehensive healthcare business planning and management services includes provision of services to healthcare business operators, including preliminary planning, research, establishment, staff training and postestablishment operation and management. The Group has succeeded in attracting professional teams with extensive experience in these sectors and has comprehensive project resources and customer network. It is expected this business segment would contribute to the revenue and earnings for the Group in future. Furthermore, the Group is also identifying potential property projects, in future, the Group may through various methods such as acquisition of property projects or cooperation with property owners to modify property projects into high-end healthcare projects or even develop healthcare projects through land development by ourselves and combined with the capital operation of insurance companies and financial institutions to jointly operate healthcare projects. To cope with this development, the Group intends to raise up to USD200 million through bond issuance to support the related capital expenditures. The concept of comprehensive healthcare will become an important goal of the Group’s future development.

At the beginning of 2020, the outbreak of the COVID-19 affected the global economy. Various countries have implemented isolation measures, interrupting people’s exchanges, stopping production, cutting off the supply chain, and preventing normal trade. To save the weak economy, central banks of various countries have launched unprecedented bailout measures. We believe that when the epidemic stabilises and demand rises, the global economy, including China, is expected to recover quickly.

The Group is fully confident in its future development.