The Group remained focusing on the development, sales and leasing of properties in Mainland China. During financial year ended 31 March 2018, the property sales volume and property price in Mainland China increased and the upward trend will be subsisted in the foreseeable future. In order to enjoy the anticipated growth in property price, the Group implemented a business strategy to slowly and gradually offer those residential apartments of the Chongqing Property located in the central business district of Chongqing, the PRC.
The Chongqing Property is currently in the progress of redevelopment. Upon the completion of redevelopment, it will comprise residential apartments, service apartments and shopping mall. This project was partially completed where certain of the residential apartments have been made available for sales since March 2017. The remaining redevelopment is expected to be completed in or before the first quarter of 2019. Given the Chongqing Property is located within the central business district, the promising commercial and residential property market in Chongqing with the increasing purchasing power and the implementation of “The Belt and Road Initiative” which brings development opportunities there, the Chongqing Property market is expected to achieve continuing growth in foreseeable future. After the completion of the redevelopment, the selling of residential apartments and leasing of service apartments and retail units in shopping mall will be able to generate stable revenue to the Group in the long run. The Company has also been continuously evaluating the current business strategies of the Group and the financing performance of the Group’s existing businesses with an aim to achieve the best use of its resources and improve its overall performance and portfolio diversification. The Company has been actively looking to diversify the revenue sources of the Group in order to create shareholders’ value through making investments and/or acquiring business or projects that have promising outlooks and prospects.