It is my pleasure to present this Environmental, Social and Governance ("ESG") Report for Hong Kong Ferry (Holdings) Company Limited and its subsidiaries (the "Company" or "Hong Kong Ferry Group"), which highlights the Company's sustainability achievements in 2017 as we make strides in our sustainability and Corporate Social Responsibility ("CSR") journey.

Founded in 1923, with a strong belief in a people-oriented culture, the Company has built a solid foundation in its property development and investment, and ferry and shipyard operations in Hong Kong. Our "people-first" principle guides the way we conduct business, from providing reliable and safe transportation services for our customers, to designing and developing properties which fulfil the needs of residents.

Witnessing the transformations in Hong Kong over time, the Company has always upheld its core value of "Loving Hong Kong and the Harbour". This process of extending care from the Company and our shareholders to our employees and their families, and to the wider society and the environment we all share has been the driving force behind our initiatives.

Rooted in our long-standing value of caring for our staff and customers, our initiatives connect the Company's past and future in times of change. A shared vision has been established within Hong Kong Ferry Group, with our management steering ESG strategy and our staff initiating and implementing relevant measures.

I believe our approach will bring sustainability to Hong Kong Ferry Group, enabling us to embrace future challenges and seize business opportunities. Going ahead, we will continue to expand our presence through continuous caring, innovation and enrichment, and work closely with our stakeholders with the objective of preserving the environment, to create a sustainable society

in Hong Kong.

Dr. Lam Ko Yin, Colin

Chairman

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2017

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