On behalf of my fellow members of the board of directors (the “Board”) of Goldin Financial Holdings Limited (the “Company” or “Goldin Financial”), I am pleased to present the annual report of the Company for the year ended 30 June 2018 (“FY2018” or the “Year” or “financial year under review”).
In FY2018, the Group announced its plans to restructure and consolidate its real estate business by disposing of its interests in two property development projects under construction and to acquire the minority interest in its investment property. The proposed transactions will enhance the Group’s liquidity and gearing ratio, thus putting it in a good position to grasp business opportunities in the coming years. All in all, the Company has geared up for long-term growth.
Now that the market sentiment has been affected by the US-China trade war and the recent interest rate increases, the restructuring and consolidation of the Group’s core business of real estate development and leasing can be regarded as a timely move. It is because, after the completion of the transactions under the business restructuring plan, the Group will not have to make substantial financial commitments to property development projects under construction, and at the same time, will be able to earn the full rental income from its wholly-owned investment property. The Group will thus secure a stable income source.
Our Goldin Financial Global Centre in the second central business district of Kowloon Bay comprises a 27-storey grade-A office building with a three-level basement car park, and a food and dining zone for our specialty and fine-dining restaurants which offer exquisite Asian and Western cuisines. Well-known enterprises and international corporations moved into Goldin Financial Global Centre as new tenants during the year, indicating good progress in the office leasing activities.
We are optimistic that the office leasing business in the Kowloon East will bring long-term success to the Group.
WINE AND RELATED OPERATIONS
Our wine and related operations continued to make steady progress in FY2018. We continued to strengthen our global wine operations and maintain stable supply of our self-produced wines and other carefully selected labels in our offerings. Our well-equipped wine cellar in the Guangzhou Free Trade Zone which is reserved for storing premium wines for ourselves and our customers provides strong support for our wine-trading business and help it to tap the growing wine markets in Hong Kong and China. We are exploring the possibility of expanding into retail sales to individual consumers in the PRC so as to widen the income for our wine trading business.
Our restaurant business also developed steadily in FY2018. As a new initiative of our dining operation, we are planning to open a new café that will offer light refreshments at Goldin Financial Global Centre.
The factoring market in China remained highly competitive as witnessed by the surge in the number of newly registered commercial factors. In April 2018, the domestic pawn shops, financial leasing and commercial factoring companies in China were streamlined and all of them are to be regulated by the newly formed China Banking and Insurance Regulatory Commission. The regulatory reform will facilitate the development of the bank factoring and commercial factoring businesses in the country. Nevertheless, we envisage that our factoring arm, Goldin Factoring (China) Development Limited, will continue to face a competitive market in the near term.
To cope with the situation, we will enhance the risk management system of our factoring business, and continue to sharpen our competitive edge and grasp opportunities in both the local and international markets in the coming years.
THE WAY FORWARD
To cope with the volatile global economy, we will adhere to our prudent approach to business and strategies. As we are entering a new financial year, we will remain dedicated to maximizing returns to shareholders by exploring and grasping opportunities for further business development.
I would like to extend my sincere gratitude to my fellow members of the Board and other colleagues for their unwavering commitment to the Group’s business.
Hong Kong, 18 September 2018