To Our Shareholders,

With three quarters of 2021 already behind us, rising COVID-19 vaccination rates have triggered the restart of the global economy. Nonetheless, new variants have continued to disrupt the path towards recovery. The volatility, vulnerability and uncertainty of global geopolitics, economy and society has given me a greater understanding of gains and losses.

Some economists believe the economy and morality are mutually exclusive, the market is a “Place Absent of Morality” where transactions have nothing to do with morals, and take place in a fair and effective manner, relying solely on prices as the means of communication. However, my view is that morality and institutions not only effectively maintain socioeconomic order, but also affect operating costs. Pursuing profits at the expense of morality is bound to cause a severe predicament.

For over 50 years, New World Group has been practicing the philosophy of “From Society, To Society”. Rooted in Hong Kong with its sights set on Greater China, the Group brings an established track record and proven models to Mainland China when investing in real estate, hotels, infrastructure, education, healthcare and other industries in ways that align with the Motherland.

In the 90s, we actively participated in the transformation plan of urban infrastructure and dilapidated housing in Beijing. We took the initiative to undertake the reconstruction of all of Chongwen District, aside from the Temple of Heaven and Longtan Lake. In this 27-year period, we invested a total of RMB15 billion and improved the living conditions of approximately 17,000 households. Till today, we are one of the few Hong Kong-based property developers that are actively involved in the urban renewal of Shenzhen and Guangzhou. We regard ourselves to be “City Builders”, meaning that it is our responsibility to improve people’s livelihood, and engage in furthering the Motherland’s development.

Global warming has become one of the biggest environmental and development challenges faced by all of mankind. Under the “New World Sustainability Vision 2030” established a few years ago, we set the goal of halving our carbon emission footprint by 2030/31 as a response to the Motherland’s strategic decision of reaching peak carbon emissions by 2030 and carbon neutrality by 2060. We also took the initiative to shoulder social responsibilities and help the Motherland enter a new phase of development.

To conclude, in the discussion of gains and losses, I would like to borrow a phrase from “Tao Te Ching” by Lao Tse, a renowned philosopher from the Spring and Autumn Period: “the more he does for others, the happier he is; the more he gives to others, the more he has”. New World Group will fully devote itself to this mindset and philosophy, which will promote a win-win situation for corporate development and moral character, and create even greater value for our stakeholders.

Dr. Cheng Kar-Shun, Henry
Chairman
Hong Kong, China, 30 September 2021