• 
• 
• 
• 

Hopefluent had another year of high growth in 2007. The thriving Chinese economy continued to fuel demand for housing, as reflected in the growth of the Group¡¦s business. During the year, capital was drawn to the property market which stood out as a more stable investment means against the fluctuating stock market. In the past year, Hopefluent¡¦s business continued to expand, reporting a turnover of HK$773.7 million, up 71% against 2006. Profit attributable to shareholders increased by an encouraging 49% to HK$109.8 million.

During the year under review, the Group continued to focus on developing its core operations ¡V primary and secondary property real estate agency services, and other property related businesses including project planning consultancy service, mortgage referral and property management, creating synergies for its overall operation. The Group was the sole agent for 250 projects in 2007, boasting an expanded service coverage spanning 25 cities in the country. The Group¡¦s secondary property real estate agency services also continued to prosper, with the number of branches increased from 203 at year end 2006 to approximately 350 at year end 2007. The Group speeded up developing the market in Shanghai by bringing the number of branches in the city from 15 at year end 2006 to over 70 at year end 2007.

In late 2007, the Chinese government introduced a new series of macroeconomic austerity measures to cap property price surge. These polices posed certain pressures on property developers and led to market jittery. Nevertheless, different markets promptly made adjustments between the fourth quarter 2007 and the first two months this year. Looking forward, as major local economies continue to prosper and more opportunities surface in the advent of the Beijing Olympics, housing demand is expected to remain intense. The Group expects property transactions to pick up and property prices to climb steadily in the second and third quarters of 2008. Guided by its clear objectives, which are to expand business scope and strengthen existing operational network, the Group will strive to improve its overall strengths and in turn the quality of its services to customers.

Last but not least, on behalf of the Board, I would like to thank all shareholders, business partners and customers for their continuous support and staff for their efforts and contribution last year. I am optimistic and confident about the prospect of the Group and its ability to achieve all business goals in the coming year.