BUSINESS REVIEW, PROSPECTS AND FUTURE PLAN

 

  The year 2023 was quite a volatile year for investing in the listed securities both Hong Kong, the People’s of the Republic of China (the “PRC”) and United States of America (the “US”).
In 2023, both the Hong Kong stock market and the PRC stock market experienced a continuation of vulnerabilities.

 

  The market rallied in early January 2023 as Hong Kong opened its border with the PRC, reaching its 2023 high of 22,688.9 on January 2023. Since then, interest rate hikes and a
sluggish PRC’s economy have dealt it a double blow. The Hang Seng Index fell 14% in 2023. Hong Kong’s stock market, which includes shares of many Chinese companies, one of the reasons for the unfavorable performance of Hong Kong’s stock market was disappointment in PRC post-COVID recovery.

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  As the US Federal Reserve raised interest rates further in 2023, Hong Kong’s interest rates also gradually increased, dragging down the total fixed capital formation, which reflects investment. With the US interest rate remaining at a high level and the US currency strengthening, it triggered a capital outflow from the Hong Kong stock market, which also affected the Hong
Kong stock market and even the overall economy.

 

  The Group expects the stock market and economy of the PRC and Hong Kong will continue to struggle between continuation of uncertainty in 2023. The PRC is the top principal trading partner of Hong Kong, so its economy will definitely affect the Hong Kong’s economy.

 

  The Group will closely monitor the development of the external environment and continue to evaluate its impact on our business, financial position and operating results.

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  Looking ahead to the year 2024, the Company will stay in focus to invest in trading securities, private equity funds and private enterprises with potential prospect. Our approach will keep timely and appropriate investment strategies in response to the volatile market, in order to enhance our investment portfolio and achieve net asset appreciation. The Board will pay close attention to the macro trends and keep seeking opportunities to invest in China, Hong Kong and overseas. The Company will continue to implement its risk management policy with an aim to achieve stable returns on investments for our shareholders.