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 slow recovery following the prolonged outbreak of the COVID-19 pandemic, the on-going geopolitical conflicts between Russia and Ukraine as well as surging inflation in the Western countries, the Group will continue to adopt a prudent approach for the development of its businesses.

 

Looking ahead to 2023, the food and beverage services business will continue to face opportunities and risks. As Hong Kong has been reopening to travelers around the world with further relaxation on border control measures, the local economy is expected to recover gradually in 2023. The demand of our food and beverage services will be affected by ease of the Hong Kong government’s restriction, leading to on one hand a possible favorable boost over the business uses for restaurants with expectations for the return of travelers and the other hand a potential shrinking demand on frozen foods for household consumption with the removal of limits on dine-services at eateries. Besides, it is expected that our procurement costs shall remain high in view of the global inflation hike and on-going global supply chain disruption. Under the high uncertainty of the overall environment in the short term, the Group will keep cautious on the development of the food and beverage services business. We will put more effort towards expanding the range of our products to high margin products and seeking different sourcing territories to control the procurement costs. The Group also intends to pursue higher return from its food and beverage services segment by providing more value-added services and increasing brand awareness. In the long term, the Directors are optimistic of the prospect of the food and beverage service industry in Hong Kong, taking advantage of its robust customer network, which mainly comprises of reputable chains of restaurants and stores, supermarkets and wholesalers in Hong Kong. The Group will continue to seek further potential business opportunities of the provision of food and beverage services, including but not limited to: (a) either acquire or establish a food processing factory to slice and process wholesale frozen meat to reinforce the value-added services, (b) develop its own brand of products to broaden its product range and diversify its customer base and increase brand awareness, and (c) form cooperation with reliable logistic specialists if possible in order to lower the inventory and transportation costs.

 

Global investor sentiment may continue to be subdued by geopolitical conflict, interest rate hike and stagflation risk in 2023. Meanwhile, local demand may be further revived and household consumption is expected to recover following significant relaxation of containment measures in Mainland China. The stock market of Hong Kong will stay turbulent inevitably under these uncertain factors and the Group will maintain cautious on managing the Group’s portfolio of securities investment.

 

As part of its current strategic plans, the Group has been exploring opportunities to further invest into financial business as 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 RMB business. The expansion of new financial business or reformulating strategy of the existing businesses will better fuel the Group to enhance its overall financial performance in the future. Looking ahead the post-pandemic economic outlook, Mainland China and Hong Kong markets are expected to recover gradually. Further monetary and fiscal measures supporting the local economy in Mainland China will probably stabilize the financial markets and stimulate investments. The Group also maintains great confidence in the bright future of its securities brokerage, asset management and professional services business.

 

The Group currently holds lands and landed properties located in Yuen Long, Hong Kong and certain industrial properties located at Cheung Sha Wan, Hong Kong. The Group remains optimistic about the long-term growth of Hong Kong real estate market due to the shortage in supply of land. 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, there is no legal impediment in obtaining the relevant approval from the Hong Kong Government. The industrial properties located at Cheung Sha Wan had been subdivided into twenty-two separate lots for sale. During the year, the Group has successfully sold seven separate lots. The Group is in the progress of seeking tenants for the remaining lots.

 

The Group will review its existing businesses’ performance on an ongoing basis and will consider expanding the segment with potential, as well as diversifying 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 Listing Rules as and when appropriate.

© 2024 Prosperous Future Holdings Limited. All Rights Reserved.

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