TO OUR SHAREHOLDERS,

"Change" and "no change" represent two extremes, between which it is the greatest challenge in one's deed and conduct to strike a proper balance.

In the course of business operations, an entrepreneur flexibly adjusts strategic ideas and business models in response to external trend of development. Whilst following a pattern of development, it is also necessary to hold fast to one's faith and trust that originality and distinct uniqueness will chart a successful path of innovation. The growth of a brand is therefore an art of determining the propriety of "change" and "no change" between reality and belief.

Phil Knight, the entrepreneur who brought Nike all the way to becoming a world-renowned brand, made his resolute move in setting off on his very own journey of originality in his early years, under his persistent belief for sports, and created a business of ample vitality and distinct uniqueness. Despite all risks, defeats and frustrations during the process, his firm belief in "sports' power to heal and change" and the strategies of flexibly adopting technology, design innovation and brand endorsement, have successfully created a world- changing new brand and new culture in a decade's time. The brand philosophy of "Just do it" underscored Phil Knight's adherence to the ideals: "Don't let the skeptics bring you down; just do it".

In the arena of business development, New World Development has spared no effort and remained its unswerving determination ever since its establishment in the 1970's. On the belief and enthusiasm for the provision of premium products and services to the market, and in line with the trend of market development, New World Development has always flexibly incorporated innovative ideas and new technology and made appropriate adjustments to its business strategies in implementing its goals, delivering superior and caring services that lived up to the value of consumers from the very bottom of their heart, uplifting the brand equity of its core property development business, and successfully delivering to the general public the experience of life and living which is uniquely available from the New World brand.

The Artisanal Movement best defines the character of the New World brand. It is a journey of surpassing design and aestheticism and exploring unlimited imagination. Original craftsmanship, blended with the spirit of ongoing innovation and pursuit of excellence, attend to every detail of customers' needs and accomplish dreams with passion. The Group strives to deliver to the customers unique artisanal experience, which is consistent with the cultural and artistic essence as well as living attitude embodied in the Group's products and services.

Despite the numerous uncertainties and sharp contradictions underlying the macro environment and the global economy, the highly cohesive team of the Group will be at the helm to lead the way through hardship and adversity towards sustainable development and spiritual continuance. Sharing the same beliefs and recognising its missions, the team will make every endeavour to hold firm to the core values of the Group in everything it does, and make flexible moves in incorporating innovative ideas to create endless power that fuels the Group's success as it moves forward.

Carrying on with its creativity and working strenuously on the New World brand, the Group will strive to enhance its property business in Hong Kong and Mainland China, pursue development opportunities and room for structural improvement and resources optimisation, and create better synergy among its business segments. It is by such efforts that the Group’s brand equity will be further unleashed and the interests of our stakeholders will be maximised.

Dr Cheng Kar-Shun, Henry
Chairman
Hong Kong, 21 September 2016