Business

The revenue of the Group is mainly derived from the five business segments in the PRC, including leasing, bulk commodity trade, property development, property investment and marine recreation services and hotel.

The Group has formulated leasing as the direction of the future development of its principal business, and has resolved that the Group's wholly-owned subsidiary, Chengtong Financial Leasing Company Limited ("Chengtong Leasing"), is to feature professional development based on strict risk control, with the initial business focus on expanding the scale of finance leasing, exploring the development of other leasing business, and establishing the brand and market influence of Chengtong Leasing. During 2020, despite the impact of COVID-19 on the overall environment of the global economy, the Group leveraged on the existing resources timely to rapidly expand the scale of its leasing business, increased a number of professional staff, commenced operating lease business and completed a number of new finance leasing projects under strict risk control. In the meantime, in response to the operational risks brought by the epidemic, the Group has reorganised and formulated new strategic development plans and business strategies. In the future, it will focus on developing business sectors that have stable cash flow and are less affected by the epidemic such as energy saving and environmental protection, new infrastructure (focusing on Internet data centres), high-end equipment manufacturing, public utilities, and mass medical healthcare, to reduce the impact of the epidemic and to focus on business opportunities in national strategic areas such as new urbanisation, Made-in-China 2025, new infrastructure, and the "Belt and Road" initiative.

For the Group's bulk commodity trade business, the international trade includes trading of chemical products, steel and coal. Going ahead, the Group will continue to tighten its management in trading risks, be strict in selecting upstream and downstream customers and requires customers to make payment by letters of credit issued by reputable banks to reduce credit risks.

The Group had two property development projects, namely, the "CCT-Champs-Elysees" and "Chengtong International City" located in Zhucheng City of Shandong Province and in Dafeng City of Jiangsu Province of the PRC respectively. The Group completed the disposal of its entire interest in Chengtong International City while the construction of CCT-Champs-Elysees went on in 2020. The Group will strengthen the development and marketing of the CCT-Champs-Elysees project as planned, it is expected that the entire project will be completed and delivered in 2024 and the Group will then withdraw from the existing property development projects.

The Group's marine recreation services and hotel in Hainan Province, the PRC mainly consists of: (i) marine recreation services; (ii) hotel operation; and (iii) travelling agency business, which will be affected by the COVID-19 epidemic and extreme weather in 2021. The Group will timely optimize the tourism projects and renew facilities from time to time to cope with the market changes in order to maintain the market competitiveness of our marine recreation services and hotel business.