In the wake of rapid transformation in previous years, the Group maintained in the real estate investment business through the Strategic Investment and Financial Services Segment. This segment has been in operation and its objectives include investments in real estate agency business and c0-working space industry as well as other potential investment opportunities.
On 10 November 2017, the Group entered into an investment agreement with Wonderland (UK) Holdings Limited (“Wonderland (UK)”) to subscribe up to GBP3.5 million 6% convertible guaranteed redeemable loan notes (the “Loan Notes”). Wonderland (UK) is the exclusive licensee of the Sotheby’s International Realty brand in England and holds the entire equity interest of Sotheby’s International Realty Limited (“SIRL”) which is operating a real estate agency business under the Sotheby’s International Realty brand in England. The Sotheby’s International Realty brand primarily deals in residential sales, lettings, development sales, investment and international sales and its franchise network currently has approximately 22,000 sales associates, located in approximately 950 offices across 69 countries. SIRL plans to expand the number of offices under operation across London in the next three years to increase brand presence and to capture additional revenue in multiple areas in the city of London. We are convinced that the real estate market in England has a huge potential for future growth.
Since June 2019, the Group invested into Campfire Group which are principally engaged in the operation of co-working spaces in Hong Kong with under the “Campfire” brand.
Looking forward, with the completion of the loan notes, its real estate agency business and the investment in the co-working space industry, we expect that our Strategic Investment and Financial Services Segment will diversify the income streams of the Group and generate additional investment returns on the available funds of the Company from time to time. In view of the recent market downturns, the uncertainty in Brexit and the Outbreak, we consider to minimize our investments in the United Kingdom. We expect that the segment will be one of the growth drivers of the Company in the future and we will make continuous efforts to find appropriate investment projects. The Group will further use its resources as a listed company to add value for the acquisition projects, so as to increase its profitability and return.