2018E — Page 45

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT (CONTINUED)

1.

ABOUT THIS ESG REPORT

a.

Reporting Standard and Scope

This ESG report has been prepared in accordance with the requirements of the ESG Reporting Guide, Appendix 27 ("ESG Reporting Guide") 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”). It provides an overview of Hong Kong Ferry Group's ESG policies and management approach and presents its sustainability initiatives and performance for the period from 1 January 2018 to 31 December 2018 (the "reporting year”). The scope of this ESG Report includes property development, property investment, ferry and shipyard operations, and related services. To provide an inclusive representation of Hong Kong Ferry Group's operations, the following companies are included in this ESG Report:

Business Units

Principal Office

Property Development

Property Investment

!

Company Name

Hong Kong Ferry (Holdings) Company Limited

Win Standard Enterprises Limited

World Fame Shipping Limited

Jet Legend Limited

Well Dynamic Limited

World Light Limited

Lenfield Limited

HKF Property Investment Limited

b.

Shipyard Operation

Dangerous Goods Vehicular Ferry Services

Harbour Cruise - Bauhinia

}

The Hong Kong Shipyard Limited

The Hongkong and Yaumati Ferry Company Limited

Galaxy Hotel Management Company Limited

To aid readers in navigating the report content, a HKEX ESG Reporting Guide content index is available on pages 69 to 72.

Stakeholder Engagement

In preparation for this ESG Report, an independent consultant was commissioned to develop and implement a comprehensive stakeholder engagement exercise with the aim of understanding stakeholders' views on our initiatives, performance and future strategies in relation to ESG issues. This year, we invited external and internal stakeholders of Hong Kong Ferry Group, including clients/customers, suppliers, charity/non- governmental organisations ("NGOS") and employees, to respond to our online survey. In addition, in-depth interviews and focus group discussions were conducted with our senior management and staff from various business units of Hong Kong Ferry Group in 2017. During the two-way engagement exercise, stakeholders expressed their views and expectations on Hong Kong Ferry Group's ESG performance which is key for determining our future sustainability approach.

Hong Kong Ferry (Holdings) Company Limited Annual Report 2018

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