Securities trading business

The Board is of the view that reasonable and effective use of temporary idle funds can enhance the overall return on capital of the Group. The acquisition of financial assets was made for treasury management purpose with a view to increasing the return on the idle funds of the Group and with an aim of increasing the total income of the Company and generating better investment return to the Company and its Shareholders as a whole after taking into
account, among others, the level of risk and return on investment. During the Year, the Group invested in the security market with a more conservative manner which disposed various higher risk exposure listed equity securities to recognized significant fair value gain, and subscribe a listed money market fund in the PRC. The Board considers that subscription is a conservative investment with a reasonable return, acceptable risk and high liquidity, which are in line with the internal risk management and treasury management
policy of the Group.