The board of directors of Great China Properties Holdings Limited announced that the Securities and Futures Commission has approved an indirect wholly-owned subsidiary of the Company, YL Capital Partners Limited ("YL Capital"), to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance ("SFO") with effect from 17 August 2018. The approval is subject to licensing conditions that YL Capital shall not hold client assets (as defined under the SFO); shall only provide services to professional investors (as defined under the SFO and its subsidiary legislation) and shall not conduct business involving the discretionary management of any collective investment scheme (as defined under the SFO). After the obtaining of the approval, the Group would commence a new business segment of financial services in Hong Kong, which may include Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the SFO (the "New Business Activities"). The Group is principally engaged in property development and investment businesses. The Board considers that the New Business Activities will diversify the Group's income source and possibly enhance its financial performance. Accordingly, the Board is of the view that the commencement of the New Business Activities will be in the interest of the Company and the Shareholders as a whole. The Group intends to finance the New Business Activities by its internal resources.