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ENVIRONMENTAL,

SOCIAL AND GOVERNANCE REPORT

MESSAGE FROM THE CHAIRMAN

I am delighted 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" or the "Group") in 2018. It showcases Hong Kong Ferry Group's efforts to integrate sustainable strategies into our business as part of our long-standing emphasis on continuously enhancing our ESG performance as we progress through our sustainability and Corporate Social Responsibility ("CSR") journey.

Since our establishment in 1923, Hong Kong Ferry Group's "people-first" principles held strong as we flourished and expanded our property development and property investment, ferry and shipyard operations in Hong Kong. Our enduring sustainability values drive us to pursue high standards of integrity and accountability when conducting business, from providing safe and reliable transportation services for our customers, to designing and developing properties to fulfil the needs of the people of Hong Kong.

Guided by our people-oriented culture and core sustainability values, we are constantly in search of opportunities to further enhance our ESG performance through technological upgrades and resource optimisation. Keeping our principle "Loving Hong Kong and the Harbour" in mind, the Company's employees work collectively to execute on our sustainability strategy through continuous caring, innovation and enrichment. Going forward, we will continue to enrich our sustainability strategy and implement ESG initiatives to achieve our objectives.

In the coming years, I trust that our approach to sustainable development will bring positive effects on the community where we operate as we tackle future challenges and capitalise on business opportunities. We will continue to grow our business

and work towards a sustainable future.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2018

Dr. Lam Ko Yin, Colin

Chairman