On behalf of the board (the “Board”) of directors (the “Directors”) 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 2020 (“FY2020” or the “Year” or “financial year under review”).
FY2020 was a challenging year for Hong Kong’s property market as a whole. The widespread impact of the COVID-19 pandemic and the weakening consumer demand subdued the investors sentiment across the local property market. In FY2020, the Group determined to dispose of its interests in a property development project. The transaction helped to enhance the Group’s liquidity and gearing ratio and enabled us to optimize our assets and business portfolio by reducing potential capital investment.
REAL ESTATE BUSINESS
The rising challenges of the business environment brought by the social events since June 2019 and the outbreak of COVID-19 pandemic since early 2020 has caused uncertainties and pressure to the Group’s property development and investment businesses. The leasing demand for Grade-A offices in Hong Kong was softened, and the housing prices and transactions slowed down in the Hong Kong property market. Our real estate business recorded a loss for the year as a result of the loss in fair value of the Goldin Financial Global Centre and the write-down of the properties under development in relation to the Kai Tak residential project.
To support the sustainable growth of the Group, we undertook several transactions to reposition our real estate business in an attempt of riding along the present challenges. To further facilitate the Group’s development in the future, we will adjust our strategies for the real estate business segment accordingly in pursuit of market fluctuation and financial flexibility enhancement.
We remain positive about the prospect of our real estate business in the years ahead.
WINE AND RELATED BUSINESS
The declines in the global wine market as a result of the COVID-19 impacts has caused pressures on the Group’s wine business inevitably.
Despite the headwinds, the Group has maintained its strategy to strengthen the global wine operations. Further, the Group is seeking opportunities to consolidate its wine and related business. The Group is well prepared to grasp the opportunities and enhance its market penetration in China and Hong Kong when the industry picks up activity.
We believe that the commercial factoring market in China will remain highly competitive and the operating environment is still facing uncertainties. As a result, the Group proposes to dispose of its factoring business in the PRC. This will enhance the cash position of the Group upon completion of the transaction. We will continue to maintain a prudent development strategy to consolidate the business segments and assets for further strategic improvement.
THE WAY FORWARD
In the near term, the world will evolve in a state of profound transformation. Even though the current contingencies give rise to temporary downside pressure, we are still confident in the prospects of China and Hong Kong. As the new financial year unfolds, the Group constantly evaluate the business strategies with prudence through judicious observation while maintaining vision for the long term. Our assets restructuring initiatives will leave the business resiliently so that we are ready for the turbulent future. We will continue to dedicate ourselves for the long-term growth of the Group by placing prudence and at the same time, to explore and seize the new business opportunities to further improve the downturns and create value for our shareholders.
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.
Pan Sutong, JP
Hong Kong, 14 January 2021