2016 — Page 40

ENVIRONMENTAL, SOCIAL

AND GOVERNANCE REPORT

MESSAGE FROM THE CHAIRMAN

I am pleased to present this Environmental, Social and Governance ("ESG") Report for Hong Kong Ferry (Holdings) Company Limited (the "Company") and its subsidiaries ("Hong Kong Ferry Group"). It highlights the progress we have made in our sustainability in 2016 and has been prepared in accordance with the requirements of the ESG Reporting Guide, Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited issued by Hong Kong Exchanges and Clearing Limited ("HKEx") in

2016.

With a long-standing history and presence in Hong Kong, the Company has a solid foundation in property development and investment, and ferry and shipyard operations.

Our objective is to be a well-managed listed company through continuous innovation and enrichment. The vision to provide high- quality products and services has been brought about by our commitment to our mission to improve management and operating systems, encourage innovative ideas, and enhance the service quality of our employees. We recognise our dedicated staff to be a valuable asset, so we constantly strive to invest in our people.

We also recognise that our economic contributions must go hand-in-hand with positive contributions to our society. Over the past few years, the Company has been taking a proactive stance in improving our environmental and social performance. All- encompassing policies have allowed us to decrease the overall environmental impacts of our operations.

Environmental and social governance are becoming more important to our investors. Looking ahead, we will continue to engage our stakeholders in these matters to seize business opportunities and mitigate against future challenges. As you review the report, I hope it is of interest as we continue to work together for a sustainable future.

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Hong Kong Ferry (Holdings) Company Limited Annual Report 2016

Dr. Lam Ko Yin, Colin

Chairman

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