Prosperous Future Holdings Ltd. Stock List: 1259.hk

Mission and Vision

 

Outlook

The Group will continue to strengthen, develop and diversify its business portfolio in a sustainable manner. In light of the slowdown of the economy in the PRC, the intensified conflicts in international trade and volatility in the stock markets, the Group will continue to adopt a prudent approach for the development of its businesses, including personal care business, money lending business, trading of commodities, securities investment, properties holding and investment holding, provision of food and beverage services and provision of professional services such as fund setup and administration, legal and tax consultancy and co-ordination, corporate and accounting services, trust and fiduciary services.

 

Following completion of the acquisition of food and beverage services business, the Group had recorded steady growth in the financial performance of this business segment. Despite the outbreak of the coronavirus since early 2020, the Directors considers that the prospect of the food and beverage service industry in Hong Kong to remain promising in the medium to long term. The Group also has a strong customer network, which mainly comprises of reputable branded chain-stores, hotel restaurants and supermarkets in Hong Kong. The Group is also seeking further investment, opportunity of the provision of food and beverage services, including but not limited to purchasing its own inventory storage if suitable opportunity arise and may further seek to form cooperation with reliable logistic specialist in order to lower inventory and transportation costs.

 

The Group is actively developing its provision of frozen warehouse services which forms part of the food and beverage services business. During the Reporting Period, the Group, as tenant, had entered into the tenancy agreement with ATL Logistics Centre Hong Kong Limited, in relation to the lease of certain portion of a multi-storeyed container freight station located at Kwai Chung. The Group is developing its own frozen warehouse at the said premise.

 

The Group’s money lending business has gradually expanded over time. The Group is currently exploring potential opportunities to expand its money lending business through participation of financial leasing business in the PRC. The Group is also seeking an opportunity to developing the money lending business, including but not limited to developing lending business in the oversea markets.

 

Taking into account the volatile global economy and weak demand from customers, the Company anticipates that the operating environment for the Group’s trading of commodities business will remain challenging. Hence, the Group will continue to adopt stringent cost control measures for this business segment.

 

The Group currently holds lands and properties located in Yuen Long, Hong Kong and an industrial property located at Cheung Sha Wan, Hong Kong. The Group is optimistic about the development of property market in Hong Kong due to shortage in supply of land and therefore, has been identifying the potential property investment and development opportunities in Hong Kong. The Company plans to demolish the properties erected on the parcels of lands in Yuen Long, Hong Kong held by the Group and to redevelop such parcels of land. Relevant applications have been made to the Hong Kong Government in relation to the redevelopment of the said parcels of lands. To the best knowledge, information and belief of the directors of the Company, there is no legal impediment in obtaining the relevant approval from the Hong Kong Government.

 

During the Reporting Period, the Company received reply letters from Hong Kong Lands Department requesting for additional information relating to the rebuilding application of Yuen Long properties. The Company is currently in the process of addressing the said reply letters. The Group is also seeking an opportunity to development it property holding business, including but not limit to Hong Kong, PRC or other oversea markets.

 

As part of its current strategic plans, the Group has been exploring opportunities to diversify its existing businesses into the financial services industry taking into account that: (a) the prospect of Hong Kong’s financial services industry remains promising in light of Hong Kong’s unique advantage of having close links with Mainland China and Hong Kong’s role as the global hub for offshore renminbi business; and (b) the Group’s manufacture and sale of personal care products business had recorded significant losses for the year ended 31 December 2018 and to a lesser extent for the year ended 31 December 2019. The expansion of other existing businesses of the Group and the diversification into the financial services industry will enable the Group to enhance its overall financial performance in the future.

 

During the Reporting Period, the Group had acquired 10% of the issued shares in each of Goldenway Investments (HK) Limited (“GWIHK”) and Goldenway Asset Management Limited (“GWAM”). On 23 January 2020, the Group had entered into an acquisition agreement to acquire the remaining 90% of the issued shares in each of GWIHK and GWAM (the “Acquisition”).

 

The Board considers that the Acquisition would enable the Group to diversify its existing business. Upon completion, the Group would be able to attain the relevant SFC licenses to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the SFO in Hong Kong, which could create a synergy effect and complement the growth of the Group existing money lending and investment in securities businesses. The Group is expected to take advantage of the future growth in capital markets and to broaden the Group’s revenue base.

 

On 20 March 2020, the Group had entered into the sale and purchase agreement to acquire 60% of the issued shares in Ayasa Globo Financial Services (BVI) Limited (“Ayasa Globo BVI”), a company incorporated in the BVI with limited liability and principally engaged in investment holding.

 

Ayasa Globo BVI holds the entire issued shares in Ayasa Globo Financial Services Limited (“Ayasa Globo”) which is principally engaged in the provision of professional services such as fund setup and administration, legal and tax consultancy and co-ordination, corporate and accounting services, trust and fiduciary services. The transaction was completed at 29 April 2020.

 

The Board considers that the acquisition would enable the Group to diversify its existing businesses into the financial services industry as well as broaden the Group’s revenue base and enhance the Group’s financial performance.

 

The Group will consider to expand its existing businesses and to diversify into other new businesses in order to improve the profitability of the Group and to enhance the interests of the Shareholders more effectively. The Group will consider from time to time other investment opportunities. The Company will make an announcement according to the requirements of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) as and when appropriate.

© 2020 Prosperous Future Holdings Limited. All Rights Reserved.

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