About MEXAN Company

Business profile: The Group's main business includes property investment, hotel business and investment holding business. Annual results: The Group's turnover for the year ended March 31, 2015 was approximately HK$138,000,000, mainly generated by the hotel business, which was 18% lower than last year's turnover of approximately HK$169,000,000. The Group recorded profit attributable to the Company's owners of approximately HK$36,000,000 for the year ended March 31, 2015, a decrease of 35% compared to the profit attributable to the Company's owners of approximately HK$55,000,000 for the year ended March 31, 2014. The decline in profit and total overall revenue for the year was mainly due to a decrease in hotel business turnover. Business review: The Group operates Shengyi Hotels. In 2014, mainland China's economy continued to grow, but the rate of growth slowed, causing average housing prices to fall from April to December 2014. The Group meets every challenge by closely monitoring market conditions and making quick price adjustments. Business outlook: Looking ahead, given that the global financial market is still uncertain, it is expected that various external factors will put some pressure on operators. The possibility that the US will start a potential interest rate hike in the second half of 2015. Coupled with the continued slowdown in mainland China's economic growth, all of which will present many challenges to the business environment of the hotel market this year. Despite this, the Group's experienced management team is confident to face the challenges. The Group's recurring business will continue to bring us stable income. Coupled with the Group's sound financial situation, we hope to bring ideal growth and sustainable returns to shareholders.