Annual Report 2020

Under the worldwide economic adversity, the Group’s various businesses have faced implacable challenges. Hotel, food and beverage and travel businesses were severely affected by the plunge in the number of visitors to Hong Kong and the imposition of social distancing measures. In view of the economic downturn, the lease restructuring and rent concessions granted to tenants have also slightly affected the Group’s property rental business performances and that in turn induced a downward valuation on the relevant investment properties. In responding to such a critical and unfavorable business surrounding, swift and flexible reactions to the market are crucial. On top of continuing to implement strict cost controls and postponed dispensable capital expenditures, the Group has strategically created new experiences and products that catered to the rehabilitated consumer behaviors, and at the same time adjusted operational tactics to respond to the intensive anti-epidemic regulations. The themed staycation packages targeting local market and the exquisite dining and festive takeaway offers have proven to be well accepted and commended. Outlook There is no deny that Hong Kong as well as the global economic has continued to be seized with drawbacks caused by the aggravation of COVID-19 throughout the world. Coupled with the influence of geopolitics and Sino-US frictions, Hong Kong is further facing the gravest situation from deteriorated business environment to shortcoming local sentiments. Yet, the Group with its entrenched substances and affluent know-how would expeditiously gratify the new normal under the epidemic. Concomitantly, my team and I would strive to prepare and commit for the upcoming challenges and destabilizing factors with prudence, determination and optimism. I trust Hong Kong will recuperate gradually with the epidemic being under control and I will continue to lead the Group pragmatically to uplift service quality and operational efficiency in preparing to seize on any potential opportunities and mark a new beginning under the new normal. Acknowledgement I would like to take this opportunity to thank the Board of Directors for their support and guidance to the Group. On behalf of all the shareholders and the Board of Directors, I would like to express my sincere gratitude to the management team and employees for their persevering contributions to the Group. Lee Ka Shing Chairman and CEO Hong Kong, 18 March 2021 009 Chairman and CEO’s Statement