Principally engaged in the provision of film production services, production of television movies, investment in film productions and worldwide film distribution and properties investment.

Business Review - For the year ended March 31, 2009

Owing to the global economic downturn, the operating environment of the film industry has been increasingly challenging. Given the above, the Group has been alert and cautious in utilising its resources for the production of new films. The Group recorded a turnover of approximately HK$1.6 million (2008: HK$10.6 million) during the year under review. The Group did not have revenue generated from the business segment of film production and distribution. All of the revenue was generated from the leasing of the investment property located at Canada.

On 26 November 2008, the Company entered into a subscription agreement with Golife Concepts Holdings Limited, whose shares are listed on the GEM of the Stock Exchange, in respect of the subscription of convertible bonds in an aggregate principal amount of HK$100 million in five tranches of HK$20 million each (the “Subscription”). The Subscription constituted a very substantial acquisition of the Company under the GEM Listing Rules. A circular containing the details of the Subscription had been despatched to the shareholders of the Company on 29 December 2008. The Subscription was subsequently approved by the Company’s shareholder at the extraordinary general meeting held on 14 January 2009. The Company subscribed the convertible bonds in the principal amount of HK$100 million on 28 April 2009.

Source: XingLin Medical (08130) Annual Results Announcement