Great Wall Terroir : Half YEar Earning

長Great城天Wall下控股Terroir有限公Holdings司 Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 524)

A n n u a l R e p o r t 2 0 2 2

CONTENTS

FINANCIAL HIGHLIGHTS

Great Wall Terroir Holdings Limited (the "Company", and together with its subsidiaries, the "Group") currently has a portfolio of business interests in the telecommunication and related services, information technology and property investment sectors in Singapore and Hong Kong and is actively pursuing other opportunities that are complementary to its existing operations or have high growth potential, with ability to generate healthy cashflows and capabilities to maximise the Group's long-term value. The Company is listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (stock code: 524).

CHAIRMAN'S STATEMENT

On behalf of the board (the "Board") of directors (the "Director(s)") of the Company, I am pleased to present the annual results of the Group in this annual report for the year ended 31 December 2022 (the "Year").

At the start of 2022, the enduring impact of Coronavirus Disease 2019 ("COVID-19") pandemic was the most dominant factor affecting the global economy, followed by the inflationary pressure caused by disruption of global supply chain after the Russia's invasion of Ukraine. As 2022 came to a close, the world after transitioning from the turbulent COVID-19 pandemic phase has to deal with rising interest rates as a result of the tightening of monetary policies by the world's major economics. The global economy in the midst of the above headwinds remains volatile.

During the Year, inflation had created higher pressure on the Group's operating margin as the increased portion of the cost could not be readily transferred to its customers by raising price. In addition, consumers' spending on telecommunications services also decreased as their purchasing power were eroded by inflation, leading to a decrease in the Group's revenue. Apart from the effect of inflation, the rising interest rates, which significantly increased the cost of borrowings, discouraged the Group from upgrading its existing infrastructure with external financing and weakened its competitiveness. In view of the above challenges, the Group focused to maintain stability and continuity of its businesses through regularly reviewing the costs to identify areas where costs can be reduced and constantly monitoring the performance of different segments to streamline its existing businesses portfolios.

The Group has continued to rationalise its businesses and streamline its existing business portfolios. During the Year, the Group had completed the disposal of its non-performing information technology and distribution business in the People's Republic of China (the "PRC"). The Group believed that the said disposal would allow the Group to deploy more resources on maintaining its existing businesses and seeking for new businesses and investments. From the experiences in the last few years where COVID-19 pandemic had heavily disrupted the operating environment of all businesses across the globe, the Group strongly believes that agility and diversity are key factors to establish a resilient enterprise which can withstand disruptions and uncertainties. Therefore, the Group is determined to enhance its agility and diversity by always adjusting its strategy in response to the changing customers' needs and building a diversified businesses portfolios with a variety of revenue streams. Moreover, the Group remains committed to enforcing strict financial discipline in controlling its expenditure and adopting prudent capital management in investing in new businesses.

The Group is looking for new business opportunities and investments which provides a stable return as compared with its telecommunications business to supplement its profit. The Group is currently developing an e-Commerce platform to buy and sell wine (the "Platform") that is undergoing the process of system testing and implementation. It is expected to commence operation to generate revenue in the first half of 2023. The Group will continue its pursuit in a variety of revenue generating opportunities to diversify its business in order to generate better returns for the shareholders of the Company (the "Shareholder(s)")

Looking ahead, in light of the normalisation of social and economic activities in both Singapore and Hong Kong after gradual relaxation of most of their preventive measures previously imposed in the last few years, the Group will realign to capture a greater share from the recovering markets of Singapore and Hong Kong by capitalising on its competitive advantages. The Group is well-placed to ride on the opportunities arising in the post-COVID-19 era by preparing to embrace changes in the dynamic market environment where inflationary pressure and soaring interest rates are co-existing.

On behalf of the Board, I would like to express our appreciation to all the fellow Directors, employees and business partners for their great support, hard work, dedication and commitment to the Group.

Cheung Siu Fai

Chairman of the Board

23 March 2023