The turnover of the Company and the subsidiaries for the year ended 31 December 2009 was HK$1,361,045,000 (2008 : HK$1,707,919,000), representing a decrease of approximately 20.31%. Profit attributable to the owners of the Company was HK$393,940,000, representing a substantial increase of approximately 172.44% as compared with HK$144,596,000 in last year.

The financial tsunami caused by the U.S. subprime mortgage crisis has led to a global economic recession, which caused a substantial decrease in demand. Our export-oriented hi-tech manufacturing business was inevitably hit by the financial tsunami. However, since the second half of 2009, the results of the hi-tech manufacturing business began to recover rapidly. At the same time, benefited from the development of new business, under the new amendment HKAS40, our investment properties under construction, namely Shenzhen Aerospace International Centre, was required to be stated at fair value, which still made a considerable increase in the results of the whole year under the shadow of the financial tsunami.

The Board of Directors recommends a final dividend of HK2 cents to be distributed for the year as a return to the shareholders.

Business Development Plan

China Aerospace Science & Technology Corporation (“CASC”), the major shareholder of the Company, has formulated a new era development strategy which focuses on the development of four core businesses including aerospace system, defense system, aerospace service and aerospace technology applications, etc, and the development of eight major industrial bases including Beijing, Hong Kong/Shenzhen, Hainan, etc. As the future of aerospace business and aerospace service business is broad, the Company, with a strong support from CASC and relying on the new development strategy of CASC, had established a new business development plan.

According to the business development direction of the new plan, the Company will focus on the comprehensive development of the Complex Zone of the Launching Site in Hainan Province as part of the aerospace service business and the aerospace business with the minisatellite industry as a starting point. The Company expects to rely on the unified strategic layout of CASC and makes full use of CASC’s resources to promote the development of its new businesses.