Annual Report 2019

Miramar Hotel and Investment Company, Limited Annual Report 2019 hotel and restaurant businesses. Dynamic pricing and promotion packages were offered to our hotel and restaurant customers while at the same time operating efficiency was being organized towards a more sustainable cost structure in anticipation of a prolonged business depression. For the Group’s property rental business, we communicated closely with all our tenants to ensure that necessary premises safety measures are in place and, in regard of our mall tenants, to feature enchanting promotional campaigns aimed at drawing more footfalls. Our travel business, on the other hand, succeeded in fulfilling customers’ destination preferences and reported satisfactory results. Business Outlook As the hospitality and retail sectors are endeavouring to battle the economic headwinds of trade disputes and social unrests that had crippled the consumer sentiments, the outbreak of Coronavirus Disease 2019 (‘‘COVID-19’’) pandemic further eclipsed the already brittle business confidence in the new year. The hazards of contagion and hassles of quarantine have dealt heavy blows to the hotel and travel industries as international traffic is nearly paralyzed. Local residents have also distanced themselves from shopping and dining activities in order to avoid cross-contamination and prevent community outbreaks. Consequentially, the economic slowdown will inevitably culminate into subdued rental yield for our property rental business. The Group is wary of the unprecedented challenges and uncertainties it is encountering this year as the bleak economic outlook is further roiled by the volatile global financial markets. Vigilance and providence will be the keys of our business strategies, buttressed upon our steady rental income and solid financial position. I remain confident that Hong Kong is resilient as always and will emerge from all these setbacks even stronger. I will continue to steer the Group prudently, working with my management team and staff to improve our service quality and strengthen operational efficiency while at the same time on the lookout for appropriate investment opportunities with a view to increase profitability and shareholder returns. Director Dr. Lee Shau Kee retired as director of the Company during the first half of the fiscal year. The Board of Directors offered him their best wishes and would like to express our tremendous gratitude for his valuable contributions and brilliant leadership in the past decades. Acknowledgement I sincerely thank the Board of Directors for their excellent contribution in leading and guiding the Group’s development over the past year. On behalf of all shareholders and the Board of Directors, I would also like to express my utmost gratitude to my management team and all my staff for their dedication and devotion to the Group in a very difficult and challenging year. Lee Ka Shing Chairman and CEO Hong Kong, 20 March 2020 007 Chairman and CEO’s Statement