Since the completion of a series of acquisitions in 2007, the Group has successfully became a property developer in the top notch properties that succeeded the track records of its controlling shareholder, Mr Yu Pan, in Guangzhou, the PRC. Also succeeded is the business strategies and corporate mission. We will continue to be prudent in our development plans and concentrate on the pursuit at reasonable timing of prime sites to enlarge and enrich its land bank in Guangzhou and other Chinese cities with strong growth potential.

Following the unprecedented year in 2008, the aftermath of the global economic crisis and market meltdown is yet due to come. The impacts on the Chinese economy are extensive covering all industries including real estate. All types of properties have drastic downturn in prices and trade volumes. Despite the various policies imposed by the Chinese government to stimulate the economy, the outlook of the property market is still blurred. The management anticipated some further downward adjustments in the mainland market in the coming one or two years. Whilst in the longer run, however, the strong basic fundamental demand for domestic housing will still be a key driver to push for quick recovery in the property market amongst the other economic sectors.

The worldwide economic turmoil hits the industry in Guangzhou in the start of 2009. Whilst the performance of the hotel operation of our Westin Guangzhou only being modestly affected in occupancy due to its quality and stature in the first quarter of the year, albeit the first quarter is traditionally a low season, we have also experienced a slight contraction in the Group’s leasing operation, [both in terms of occupancy and rent rates]. Given the very challenging market conditions in the years to go, we have entrusted our sustainability on the implementation of key conservative business strategies. These include continuing cost containment measures by keeping a slim but effective work force and lowering the gearing level. In improving the gearing position, the management have had continuous negotiations with the convertible noteholders about a debt restructuring program targeting to reduce the Group’s borrowing whilst at the same time generating additional cash by promoting the presale activities in the Group’s residential project being under construction in Guiyang and realization of certain property interests in the Group’s property portfolio. The restructuring program, if implemented, will put the Company in a better place to confront with the current and upcoming challenges.

Finally, in the midst of such uncertain times, I would like to reiterate that the biggest protection we have is our genuine commitment to product quality based on the decade-long focus of high-end properties in Guangzhou, and through investing in our people, we adhere to the motto of “Steadiness, Prudence and Service” thanks to the loyalty of our high caliber team. Owing to all these, I would end my message with my appreciation to all the members of the “Skyfame” team for their contributions in the past year.