Hudson Investment : 2021 Annual Report

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CORPORATE DIRECTORY

Hudson Investment Group Limited

• ACN 004 683 729

• ABN 25 004 683 729

Registered and Corporate Office

Level 5

52 Phillip Street Sydney NSW 2000

Board of Directors

John W Farey (Non-Executive Chairman) Alan Beasley (Managing Director)

Wei Huang (Executive Director) John J Foley

Dr Cheng Fong Han

Warren Wen-Shih Choo (Alternate Director)

Joint Company Secretaries

Fax:

Email:

Website:

+61 2 9251 7177 +61 2 9251 7500corporate@higl.com.auwww.higl.com.au

Auditors

CHAIRMAN'S REPORT 2021

I present to you the Annual Report for Hudson Investment Group Limited ASX: HGL, (the Company) for the twelve months to 31 December 2021. The Company recorded a consolidated net profit $763,408 for the year ending 31 December 2021.

With the continuation of the Covid-19 pandemic from 2020, it has been a challenging year for everyone, and the economic impact has been immense.

During the course of the year the Company continued to concentrate on developing its current property portfolio. This is evident through the Company's wholly owned subsidiary Hudson Bowen Hills Pty Ltd exploring potential Residential Development Application (DA) to unlock more options for the Company, considering also the DA for a 24-storey mixed use building was approved in April 2021.

Additionally, in December 2021, the sale of Unit 1, 171-175 Sparks Road, Halloran was completed. The strata subdivision submitted to Central Coast Council by HTH Holdings Pty Ltd for Lots 1 and 74 of the Warnervale Properties was approved in December 2021, allowing for more flexibility for the Company to further develop and add value to its assets.

The focus of the Company is to continually develop its property portfolio to achieve its dual objectives of capital appreciation and to increase revenue to strengthen its strategic positioning for future growth.

On behalf of the Board of Directors, I would like to thank the Company's management team and staff for their continued hard work and dedication. Your loyal support and your continuing involvement as shareholders of the Company are highly valued and appreciated.

John W Farey

Non-Executive Chairman 22 March 2022

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REVIEW OF OPERATIONS

ABOUT HUDSON INVESTMENT GROUP LTD (ASX:HGL)

HGL is an ASX-listed Company focusing on industrial, residential and commercial property investment and development, and currently owns the following properties:

• • Unit 2, SP 101632, 171-175 Sparks Road, Halloran, New South Wales

• • 59 Mountain Road, Halloran, New South Wales

  (both collectively the Warnervale Properties);

• • 47 Brookes Street, Bowen Hills, Queensland

• • 41-43 Brookes Street, Bowen Hills Queensland (both collectively the Bowen Hills Properties); and

• • 43 Regent Street, Woolloongabba, Queensland (the Regent Street Property)

Highlights

• • The sale of Unit 1, 171-175 Sparks Road, Halloran completed on 17th December 2021 achieving $4,700,000 (nett) following the strata title subdivision submitted to Central Coast Council for Lots 1 and 74 of the Warnervale Properties being approved.

• • Exploring potential Residential Development Application (DA) for the Bowen Hills QLD properties in addition to the mix use DA, approved in 2021, to provide the Company with additional options with regard to the best use development of the property.

• • HGL now owns 100% of the Regent Street Property after HGL exercised the Option to purchase the remaining 70% of the Regent Street Property, in February 2022.

• • All financial facilities have been rolled over and extended to 2023/2024

Warnervale Properties

• • Located in the prime Industrial property zoned Wyong Employment Zone (WEZ) and adjacent to the M1 Sydney to Newcastle Freeway, the property is just 1hr by road to the Sydney CBD and is within the Central Coast Council LGA

• • Strata subdivision approved for the Warnervale Properties in December 2021, provides additional options for further development of the land.

Bowen Hills Properties

• • The site is located in the Brisbane CBD fringe suburb of Bowen Hills

• • In April 2021, DA for a 24-storey mixed use building approved by the Minister for Economic Development Queensland (EDQ).HGL is currently exploring potential Residential DA in addition to the approved mix use DA, to provide "best economic use" options for the development.

• • Land size - approximately 2,025m2

Regent Street Property

• • HGL now fully owns 100% of the Regent Street Property after HGL exercised the Option to purchase the remaining 70% of the Regent Street Property in February 2022.

• • Development approval (DA) achieved for the construction of 54 apartments over 11 levels.

Outlook for 2022

• • Focused on developing current property portfolio and seeking out additional potential property investment opportunities to strengthen the Company's strategic positioning for future growth and revenue to enhance shareholder value.

Alan Beasley

Managing Director 22 March 2022

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