Business Summary:
The Company is an investment holding company and the principal activities of the Group are properties investments, distribution of computer components and information technology products and trading of securities.

Performance for the year:
During the year, the turnover of the Group included rental income from letting of properties of approximately HK$300,000, dividend income from held for trading investments of approximately HK$571,000, loss on disposal of held for trading investments of approximately HK$2 million, loss on fair value changes on held for trading investments of approximately HK$2 million and revenue from distribution of computer components and information technology products of approximately HK$6 million. The current year turnover of the Group was approximately HK$2.8 million or 84.5% lower than the turnover of HK$17.8 million for the previous year. The decrease in turnover was mainly resulted from the realized or unrealized loss of approximately HK$4.3 million on trading of equity securities listed in Hong Kong as compared with an unrealized and realized gain of approximately HK$8.4 million for the previous year.

Other operating income increased significantly by approximately HK$13.6 million to approximately HK$13.9 million for the year ended 31 December 2012. The increase was mainly due to written back of other payables of approximately HK$11 million and other unsecured loans of approximately HK$2 million as the Group’s obligation has expired together with the increase in interest income from bank deposits of approximately HK$809,000 during the year. Overall, the Group recorded a net profit of approximately HK$6 million for the year, representing a 17.4% increase from a net profit of approximately HK$5 million for the previous year.

BUSINESS REVIEW
Regarding the two framework agreements (the “Framework Agreements”) entered into by the Company with 山西蘭花煤炭實業集團有限公司(Shanxilanhua Coal Industrial Group Co. Ltd.) (“Shanxilanhua”) in relation to the possible acquisition by the Company of approximately 28.01% equity interest in the registered capital of Shanxilanhua, a joint venture agreement entered between Shanxilanhua, Deluxe Full Holdings Limited and the Company (the “JV Agreement”) in respect of the formation of a joint venture in the People’s Republic of China and a cooperative letter of intent with 山西蘭花集團莒山煤礦有限 公司(Shanxilanhua Group Ju Shan Coal Mining Co. Ltd.) (“Ju Shan”) (the “LOI”) in respect of the proposed capital injection in Ju Shan by the Company, due to the fact that the Group could not agree with the counterparties of each of the Framework Agreements, the JV Agreement and the LOI on the terms of the respective agreements, the Group decided not to proceed with the Framework Agreements, the JV Agreement and the LOI...