While the development of our factoring business remained firmly on track, we seized two precious opportunities and ventured into two new business sectors — wine and real estate. The Board firmly believes that these new businesses will add value to and enhance the profitability of the company.

FACTORING

The business has seen a gradual and healthy growth since we started our factoring service business in July 2009. This trend continued over the past year and the factoring business has become the key revenue generator of Goldin Financial.

Since the financial crisis in 2008, the worldwide economy has suffered repeated threats some of which remain unresolved up to this day. In Mainland China, the People’s Bank of China has issued a series of policy measures, such as raising the deposit reserve ratio, to control the economy. The consequence of these measures was that obtaining financing became a major obstacle for small and medium-sized enterprises (SMEs) and many had difficulties sustaining their business operations. To this end, our factoring business proved to be invaluable to these SMEs in that they could obtain alternative business financing through trade financing. We expect that this trend will continue and factoring will remain as one of our core businesses in the foreseeable future.

WINE

China’s phenomenal economic expansion has been accompanied by an explosion in the demand for top quality consumer goods, and the wine business has been one of the most significant beneficiaries. In June 2011, Goldin Financial acquired Sloan Estate in Napa Valley, USA. This exceptional 40-acre wine estate produces top quality wines that are among the best of California, if not the world. We shall make use of this venture as our stepping stone for entering the global wine business and we will continue to look out for other wine-relating opportunities both within China, Hong Kong and in other parts of the world.

PROPERTY

In July 2011, Goldin Financial formed a joint venture to tender for a plot of land situated at a prime location in Kowloon Bay, Hong Kong. The land is for non-industrial use and has a maximum developable gross floor area of 79,200 square metres. At the end, we successfully outbid four competitors and our tender was accepted by the Hong Kong Government.

We expect to develop a landmark commercial building and aim at having it completed by 2015. We certainly see a very bright future in the company's property business.

WAY FORWARD

Given the concerns over the European debt crisis and the uncertainty of the US economy, various classes of assets in Europe and the USA have become more reasonably priced. The economy of Mainland China, on the other hand, continues to develop at a fast pace and Hong Kong continues to benefit from the Mainland China’s boom and various financial policies instigated by the PRC Government. A combination of these factors opened up plenty of opportunities for investment, particularly for companies based in Hong Kong.

At Goldin Financial, we see ourselves as having taken advantage of two such opportunities over the past year. With knowledgeable staff and excellent networks, we pride ourselves in our diversified and responsive approach that allows us to pursue opportunities which traditional companies may not be up to speed with. In the future, we will continue to cautiously identify and seize these opportunities in order to secure a maximum return for our stakeholders.

At the same time, Goldin Financial will continue to explore opportunities through its strong network in Mainland China.

I would like to take this opportunity to extend my gratitude to the Board and all employees for their diligence, professionalism and contributions to the Group.