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 from the hotel business, down 18% from last year's turnover of approximately HK$169,000,000. The Group recorded profit attributable to owners of the Company of approximately HK$36,000,000 for the year ended March 31, 2015, a 35% decrease compared to the profit attributable to owners of the Company of approximately HK$55,000,000 for the year ended March 31, 2014. The decline in profit and overall revenue for the year was mainly due to a decrease in the turnover of the hotel business. Business review: The Group operates Shengyi Hotels. In 2014, mainland China's economy continued to grow, but the growth rate slowed, causing average housing prices from April to December 2014 to fall. The Group meets every challenge by closely monitoring market conditions and making quick price adjustments. Business outlook: Looking ahead, given that global financial markets are 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, it will all pose a number of challenges to the business environment of the hotel market this year. Despite this, the Group's experienced management team is confident in facing the challenges. The Group's recurring business will continue to bring us stable income. Coupled with the Group's sound financial position, we hope to bring ideal growth and sustainable returns to shareholders.