The Group was principally engaged in three operating segments,
(i) environmental maintenance business
(ii) property leasing business
(iii) securities trading business
Taking into account the severe market competition and increasingly challenging operating environment of Chinese restaurant and wedding business brought by the social unrest of Hong Kong in the second half of 2019 and the COVID-19 pandemic in 2020, a strategic decision was taken and executed to dispose the entire Chinese restaurant business .
In April 2020, the Board agreed to dispose of the entire Chinese restaurant business. The Disposal was approved by the shareholders in the extraordinary general meeting of the Company held on 28 May 2020, and all the conditions precedent of the Disposal were fulfilled on the same date. For details, please refer to the Company’s announcements dated 21 April 2020 and 28 May 2020.
The Board believes the completion of the Disposal shall generate greater managerial focus and release internal resources of the Group to prioritise the environmental maintenance business and allocate resources flexibly to seize any possible investment opportunities. The Board believes that the Group’s business will continue to expand and generate greater value to the shareholders
During the Year, the Group completed the Disposal which has significantly strengthened the financial position of the Group. The Disposal provided the Group with more flexibility and liquidity to expand its existing business scale, and allocate more corporate resources towards potential business opportunities with better prospects. Meanwhile, the environmental maintenance business maintained its continuing growth as a result of securing various service contracts across various regions in the PRC including Chengdu, Xinjiang Autonomous Region, Hebei, Inner Mongolia Autonomous Region. It is expected that with the increasing number of service contracts secured by the Group, the environmental maintenance business shall continue to contribute stable income stream for the Group.
Looking forward, the Group will continue to utilize its available resources to engage and develop its core business. Apart from the environmental maintenance business, the Group will explore business opportunities in other industries and double down on investments in high growth businesses in the PRC (including high technology, software consulting and internet services related business) that will flourish in the post-pandemic economic environment in order to generate a stable and constant stream of income to the Group and create long term value for our shareholder.