To Our Shareholders,

The profile of international affairs changes in an accelerating pace amidst increasingly complicated developments. The volatile performance of global trade, escalating geopolitical risks, as well as the rise of populism and protectionism have added to the uncertainties in the world’s future prospects. Since the outbreak of the Asian financial crisis in 1997, political and economic problems emerging in different forms have brought about profound changes in the traditional cycles of economic and social developments, which now tend to be short-lived, volatile and subject to rapid changes. Zuo’s Commentary on the Spring and Autumn Annals (“春秋左傳”), the first chronologically arranged historical records of China mentioned, to “anticipate crises when living in well-being, for with anticipation comes preparation, and if one is well-prepared, there could be no worries.” (“居安思危，思則有備，有備無患”) One should always stay vigilant, think careful as to what might happen if a crisis comes and plan well beforehand. In a risky and turbulent new era such as the present one, this is exactly what an entrepreneur should do in order to sustain business development and ensure effective administration. To quote from President Xi Jinping, “bread doesn’t fall from heaven, and dreams would come true only as a result of diligent endeavours.” This holds true from a corporate perspective, as the New World Group has always made its best effort to provide premium services and products that would enhance consumers’ experience, and has always strived to maximise results for its stakeholders. Dauntless as we are in our ventures, we also pay close attention to developments in the world around us and adjust our strategies in a timely and prudent manner to address any potential risks, so as to ensure the sustainability of the Group. Amidst the present turmoil of the world economy, China stands out with stable economic performance. Central Government is vigorously implementing a new philosophy for economic growth and stepping up with its effort to drive the development of an affluent society. Under this new mentality, the Belt and Road initiative is progressing rapidly, while the Asian Infrastructure Investment Bank has also officially commenced operation to provide a new driving force for global economies, to the benefit of Hong Kong. Our Group remains fully confident in the prospects of the country and Hong Kong, and business development in Greater China represents a top priority for us. To cater to our business development, a range of management strategies in relation to our internal structure and resource optimisation have been implemented. The privatisation of NWCL, a move that has given the Group more flexibility and stronger financials to seize the enormous business opportunities in Mainland China, is an excellent example of such implementation. Given its solid financials, the Group will continue to replenish its land bank in Hong Kong through different approaches to fuel its property development in the territory. As the Group’s flagship for property development and investment in Mainland China, NWCL will meanwhile continue to strengthen its effort in the development of selected projects with strong potentials. All in all, notwithstanding market expectations for increasing conflicts and challenges around the globe in 2017, the New World Group will maintain an optimistic yet pragmatic disposition as it endeavours to enhance the New World brand and add value for Company and stakeholders by bolstering the performance of its property business operations in Mainland China and Hong Kong through flexible approaches, while actively identifying opportunities for structural improvements and resource optimisation to increase synergies among different segments.

Dr. Cheng Kar-Shun, Henry
Chairman
Hong Kong, 22 February 2017