Investor Relations

Chairman’s Statement

Dear Shareholders,

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 2016 (“FY2016”).

During the year, the Group recorded a 8.8% increase in sales. Gross profit decreased by 17.7%, which was due to the slowing economy in Hong Kong and China. The Group is determined to maintain its competitive edge in its core businesses and to fully tap the huge potential of the markets in which it operates by consistently expanding its market reach. Profit attributable to owners of the Company was HK$893.2 million, which included the fair value gain from an investment property.

In FY2016, the Group achieved results in its efforts to consolidate and expand its core business segments. A major step forward is that our real estate business made its first foray into luxury residential property development by acquiring a piece of land in Ho Man Tin following the completion of the construction of Goldin Financial Global Centre. All in all, the Company has geared up for long-term growth.

FACTORING

FY2016 was a year of subdued business for our factoring arm, Goldin Factoring (China) Development Limited (“Goldin Factoring”). The company operated at a moderate pace after it experienced vigorous growth in the past few years since its establishment.

Chinese enterprises are facing challenges from the increased competition, overcapacity and rising manufacturing costs. Nevertheless, China’s market continued to be rewarding thanks to the government’s strong effort to strike a balance between economic restructuring and the stabilization of economic growth through stimulus. Internationally, the inclusion of Renminbi in the Special Drawing Rights (SDR) currency basket of International Monetary Fund since 1 October 2016 will certainly expedite the internationalization of China’s currency and encourage trade activities across the country. Enhancing Renminbi’s internationalization will help to strengthen China’s economy in the course of the further development of both the country’s financial system and the global economy.

Goldin Factoring, which is strategically based in the Shanghai Pilot Free Trade Zone, is a pioneer in commercial factoring and thus is well-positioned to grasp opportunities arising in both the local and international markets. We will continue to expand and explore business opportunities in the coming years.

WINE BUSINESS

Our wine business made steady progress in FY2016. Our Bordeaux winery, Château Le Bon Pasteur introduced the first vintage of its second label “L’Etoile de Bon Pasteur” to the market during the year. The wine has characteristics similar to those of the Grand Vin that wine lovers can enjoy earlier in its youth, thereby offering an affordable luxury and allowing them to enjoy the terroir and climate conditions of its origin.

Meanwhile, we continued with our global wine distribution and marketing strategies. We recognized the importance of storage conditions to the preservation of the quality of wines in a durable time horizon so we had acquired two lucrative wine cellars respectively located in Guangzhou and Tianjin, PRC. The move enabled us to establish the largest wine storage facilities in the PRC which offer the most advanced wine storage services to our customers. To tap the PRC’s vast and lucrative wine market, the Guangzhou-based wine cellar has been used as the strategic platform for developing our network and promoting our wine business. It further contributed to the lifestyle and fostered a strong sense of cohesiveness within the wine-loving community which helped to drive the demand for our offerings. We will step up our marketing effort and extend our business presence to other parts of China to increase the market penetration of our products by developing our sales force.

We strive to strengthen our global wine operations. We will extend the distribution channel by selling the wines at our specialty and fine dining restaurants at Goldin Financial Global Centre which will be opened shortly. We can assure gourmet lovers and food connoisseurs that the Asian and international delicacies to be offered will delight them.

REAL ESTATE

The construction of the commercial property Goldin Financial Global Centre in Kowloon East has recently been completed. The building comprises a 27-storey grade-A office building with a three-level basement car park. The ground floor to second floor will be designated as a food and dining zone where specialty and fine dining restaurants will offer exquisite Asian and Western cuisines. The Goldin Financial Global Centre will become a landmark commercial building in the prime location of Kowloon East and is targeted at international commercial tenants seeking grade-A office spaces. We are confident about the success of our Goldin Financial Global Centre for the long term.

Meanwhile, our real estate business took a bold stride by entering into the business of luxury residential property development in Ho Man Tin. The luxury residential property project, which will commence construction soon, is situated in the traditional luxury residential area and near to the Ho Man Tin Station of the Mass Transit Railway (MTR). The MTR station is scheduled to be put into operation shortly. This, along with other ongoing developments of the transport network, will improve the urban living of the entire locality. We are optimistic for the revenue contribution to the Group in the medium term.

THE WAY FORWARD

In FY2016, we continued to sharpen the competitiveness of Goldin Financial by developing new growth engines. In view of the currently sluggish global economy, we will continue to conduct our businesses and strategic development prudently and efficiently and monitor our ongoing progress. As we are entering FY2017, we will continue our effort to maximize returns for stakeholders by taking advantage of those opportunities we have meticulously evaluated from every angle.

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 success.

Pan Sutong
Chairman
Hong Kong, 26 September 2016