On behalf of the board, I am delighted to report the group’s financial results and activities for the year ended 31 March 2011.

RESULTS AND DIVIDENDS

For the year under review, the revenue of the group decreased by HK$7,521,666, or 28.8%, to HK$18,567,485. The group’s profit for the year slightly decreased by HK$836,649, or 1.25%, to HK$65,901,000.

In January 2011, an interim dividend of HK$0.025 per share was paid. The board now recommends a final dividend of HK$0.10 per share, absorbing a total of HK$4,000,000. Subject to approval by the shareholders, such dividends will be payable on 16 September 2011.

REVIEW OF OPERATIONS

PROPERTY DEVELOPMENT

There is no project under development with significant progress during the year. The group continues to explore properties in Hong Kong for re-development purpose.

PROPERTY INVESTMENT

During the year, the group sold the property situated at 1/F of Pearl Oriental, Kowloon for HK$20,000,000 and acquired certain properties situated at Nos. 60-64 Ma Tau Chung Road, Kowloon at a total cost of HK$70,481,980. The net increase in investment properties has led to increase in rental income by HK$920,123, or 8.5%, to HK$11,808,160, and the result (excluding revaluation gain on investment properties) of the property leasing business by HK$1,440,090, or 19%, to HK$8,958,922. The group recorded a fair value gain of HK$59,088,020 on revaluation of its investment properties, which amounted to HK$294,800,000 at 31 March 2011.

SHARE INVESTMENTS AND DIVIDEND INCOME

Dividend income decreased by HK$221,196, or 3.9% to HK$5,389,041 as compared to last year. The decrease was mainly due to decrease in dividend yield of the securities held by the group.

During the year, the group sold certain trading securities and posted a profit of HK$1,370,284 (2010: HK$9,590,877). Besides, the group sold certain long-term listed share investments and realised a gain of HK$1,392,984 (2010: HK$5,834,433). Unrealised gain on trading securities and available-for-sale financial assets amounted to HK$1,830,072 and HK$6,347,052 respectively. At 31 Ma ch 2011, the group’s share investment portfolios had an aggregate fair value of HK$156,893,901 (2010: HK$142,631,114).

LIQUIDITY AND FINANCIAL RESOURCES

The group maintains a healthy cash position without bank borrowings as at 31 March 2011. The management believes that the group’s cash reserve is sufficient to meet its operating and project development expenditure. The group will continue to adopt a prudent policy in its cash management.

PROSPECTS

Hong Kong property prices are still on an uprising trend. This boost in land prices poses challenge to the group’s negotiation with the government for land premiums on changing usage of the group’s agricultural land. On the other hand, rising property prices have a positive effect on rental income of the group. Certain tenancies of the group’s investment properties are due for renewal in the coming year. The group will be in an advantageous position in negotiating rentals with the group’s tenants amidst the booming property market. The management expects that such tenancies can be renewed with double-digit increase in rental.

With a strong liquidity position, the group will keep watch of the market change and make appropriate strategic adjustment on our assets portfolio to maximise returns to its shareholders.

APPRECIATION

I appreciate the support and co-operation of my fellow directors and staff of the group and thank them for their dedicated services and contribution.

Ng See Wah
Chairman

Hong Kong, 28 June 2011