Hudson Investment : Annual Report to shareholders

Hudson Investment Group Limited ACN 004 683 729	Annual Report 31 December 2020

Contents

Page

Corporate Directory	3
Chairman's Report 2020	4
Review of Operations	5
Directors' Report	8
Remuneration Report - Audited	13
Auditor's Independence Declaration	18
Corporate Governance Statement	19
Consolidated Statement of Profit or Loss and Other Comprehensive Income	31
Consolidated Statement of Financial Position	32
Consolidated Statement of Changes in Equity	33
Consolidated Statement of Cashflows	34
Notes to Financial Statements	35
Declaration by Directors	68
Independent Auditors' Report	69
Shareholder Information	75

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Hudson Investment Group Limited ACN 004 683 729	Annual Report 31 December 2020

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 Telephone: [phone]

Fax: [phone]

Email: [e-mail]

Website: www.higl.com.au

Auditors

K.S. Black & Co

Level 1

251 Elizabeth Street

Sydney NSW 2000

Telephone: [phone]

Lawyers

Piper Alderman

Level 23, Governor Macquarie Tower

1 Farrer Place

Sydney NSW 2000

Telephone: [phone]

Bankers

Commonwealth Bank of Australia

Corporate Financial Services

Business & Private Banking

Level 9, Darling Park 1

201 Sussex Street

Sydney NSW 2000

Telephone: [phone]

Australia & New Zealand Banking Group Limited

Level 16, 20 Martin Place

Sydney NSW 2000

Telephone: [phone]

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

Henry Kinstlinger

Mona Esapournoori

Chief Financial Officer

Francis Choy

Risk & Compliance

Allan Scadden

Share Registry

Computershare Investor Services Pty Limited

GPO Box 2975

Melbourne VIC 3001

Telephone: [phone] (within Australia)

ASX Code - HGL

Hudson Investment Group Limited shares are listed on the Australian Securities Exchange.

This financial report covers the Consolidated Entity consisting of Hudson Investment Group Limited and its controlled entities.

Hudson Investment Group Limited is a company limited by shares, incorporated and domiciled in Australia.

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Hudson Investment Group Limited ACN 004 683 729	Annual Report 31 December 2020

CHAIRMAN'S REPORT 2020

I present to you the Annual Report for Hudson Investment Group Limited (the Company) for the twelve months to 31 December 2020. The Company recorded a consolidated net profit of $0.14 million for the year ending 31 December 2020.

With the advent of the Covid-19 pandemic it has been a challenging year for the Company (and the country) and the economic impact has been immense. However, the Company came through these uncertain times relatively well.

During the course of the year the Company continued to concentrate on developing its current property portfolio. The Company's wholly owned subsidiary Hudson Bowen Hills Pty Ltd has submitted its Development Application to Economic Development Queensland for its Bowen Hills Properties.

HTH Holdings Pty Ltd has submitted an application to Central Coast Council for a strata title subdivision on the Western Land, Lots 1 and 74 of the Warnervale Property. Upon completion it will provide 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 it's 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

18 March 2021

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Hudson Investment Group Limited ACN 004 683 729	Annual Report 31 December 2020

REVIEW OF OPERATIONS

Hudson Investment Group Limited (the Company) (ASX:HGL) is an ASX-listed company focusing on industrial residential and commercial property development, and currently owns the following properties:

• 171-175Sparks Road, Halloran, New South Wales
• 59 Mountain Road, Halloran, New South Wales (both collectively the Warnervale Properties);
• 47 Brookes Street, Bowen Hills, Queensland
• 41-43Brookes Street, Bowen Hills Queensland (both collectively the Bowen Hills Properties); and
• 30% interest in 43 Regent Street, Woolloongabba, Queensland (the Regent Street Property)

Highlights

• HGL wholly owned subsidiary Hudson Bowen Hills Pty Ltd had submitted its Development Application (DA) to Economic Development Queensland (EDQ) for its Bowen Hills Properties. Urban Strategies Pty Ltd are continuing discussions with EDQ to progress the DA. HGL anticipates for the DA to be approved during the first half of 2021.
• Management submitted an application to Central Coast Council for a strata title subdivision on the Western Land, Lots 1 and 74, which when completed will provide more flexibility in how the Company further develops and add value to the assets.
• On 19 May 2020, the Company held its Annual General Meeting where the shareholders approved all resolutions.
• On 22 July 2020, the Company changed its registered office to Level 5, 52 Phillip Street Sydney.

Warnervale Property

a. Overview of location

• Approximately 44.5 hectares of land, the Warnervale Property is situated within the Wyong Employment Zone and developing Industrial locality of Warnervale on the NSW Central Coast; within close proximity to the F3 Freeway and within close proximity to developing residential estates in the Lake Macquarie and Wyong localities.
• Warnervale is predominantly rural/residential locality and is 1 of the 5 major industrial precincts in the NSW Central Coast and is situated adjacent to the M1 Motorway at the Sparks Road interchange.
• The location of the Warnervale properties is ideal for facilitating transport, freight, warehousing, logistics and manufacturing due to excellent transport links as it is one of a small number of locations which can accommodate B-Double truck movements.

b. Property Investment Information

• Current zoning of the Warnervale property is part IN1 General Industrial; SP2 Infrastructure and E2 Environmental Conservation
• The Company intends to explore development opportunities for the Surplus land.

• Valuation of	$24.2 million
(a) Western Land	$17.9 million
(b) Eastern Land	$6.3 million

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