Press Release K. Wah Group Spring Cocktail Reception “Celebration Of

Press Release [For Immediate Release]

K. Wah Group Spring Cocktail Reception “Celebration of a New Year of Prosperity”

* * *

(Hong Kong, 12 March 2018) – K. Wah Group (the “Group”) hosted a spring cocktail reception at the JW Marriott Hotel Hong Kong today, joined by friends and business partners from different sectors, to celebrate the many achievements made by the Group last year and also welcome the beginning of a prosperous year ahead.

The reception was graced by the presence of top government officials, business leaders as well as luminaries from different industry sectors. During the reception, Chairman of K. Wah Group Dr Lui Che-woo, Mrs Lui Che-woo, senior management of the Group together with honorable guests, including Ms Chou Hong, Deputy Director of the Liaison Office of the Central People's Government in the HKSAR; Mr Song Ru’an, Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the HKSAR; Professor Sophia Chan, Secretary for Food and Health, the Government of the HKSAR; Ms Jin Ping, Deputy Director General of the Economic Affairs Department of the Liaison Office of the Central People's Government in the HKSAR; Mr Li Jiyi, Deputy Director General of the Hong Kong Island Sub-office of the Liaison Office of the Central People's Government in the HKSAR; Dr David Chung, Under Secretary for Innovation and Technology, the Government of the HKSAR; Mr Caspar Tsui, Under Secretary for Labour and Welfare, the Government of the HKSAR; and Dr Bernard Chan, Under Secretary for Commerce and Economic Development, the Government of the HKSAR officiated at the opening ceremony. Other distinguished guests included Prof the Hon Arthur Li Kwok-cheung; The Hon Mrs Regina Ip Lau Suk-yee; The Hon Sir David Akers-Jones; Dr the Hon Allan Zeman; The Hon Jack So Chak-kwong; Dr Michael Suen Ming Yeung; Mr Chan Kam-lam; Deputada Angela Leong On Kei; Professor Alice Chiu Tsang Hok Wan and Mr Lo Yuk Sui.

Dr Lui Che-woo, Chairman of K. Wah Group, said, “The year of 2017 marked the 20th anniversary of Hong Kong's return to our Motherland and the inauguration of the new HKSAR Government. Hong Kong is embracing new opportunities with its full involvement in the “One Belt, One Road” initiative and its role in the establishment of the Guangdong-Hong Kong-Macau Bay Area. In the development of Guangdong, Hong Kong and Macau as a regional economy, Hong Kong will be able to extend the advantage of its international connections in finance, trade and shipping to the Bay Area on the back of its status as an international financial centre, sound business environment, legal systems, free economy, professionals and specialised servicing industry with proficient knowledge of the international markets, while helping cities in the area to tap the international market.”

“At this historic moment, K Wah Group’s property, hospitality, construction materials and entertainment and leisure businesses have scaled new heights. I would like to express sincere gratitude to the community and partners for their support, and our more than 30,000 staff for their dedication and concerted effort to achieve this success. The Group is ready to

K. Wah Group Spring Cocktail Reception “Celebration of a New Year of Prosperity” 12 March 2018 launch new projects in 2018, and to expand its business footprint while fulfilling its corporate social responsibility for the benefit of different groups in our community. Established with the support and guidance of esteemed community leaders and other parties, the Specific Areas of Focus for the LUI Che Woo Prize 2018 include: Development of Renewable Energy, Reduction of the Impacts of Natural Disasters and Elimination of Illiteracy. It is my sincere wish that people will not forget the beauty of kindness and harmony as the world advances along the path of scientific innovation and will work hand-in-hand to tackle the problems humanity is facing.”

Four major businesses continue to grow steadily

K. Wah Group’s four major businesses have developed steadily in the past year. Galaxy Entertainment Group (“GEG”), its renowned leisure and entertainment arm, continued to deliver encouraging results despite having faced the most destructive typhoon to strike Macau in half a century. GEG has worked side by side with Macau residents during the critical time and supported the recovery and development of Macau by donation to various non-profit making and social service organisations. The completion of Phases 3 and 4 will result in GEG doubling its footprint in Cotai to over 2,000,000 sq. m. The new resort complex will offer large exhibition and conference venues, as well as advanced leisure and entertainment facilities; hence will help to boost Macau's tourism industry and expedite its economic diversification efforts. Separately, GEG has become a strategic partner of Monte-Carlo Société des Bains de Mer (“Monte-Carlo SBM”), a world renowned operator of iconic luxury hotels and resorts in the Principality of Monaco. The two parties agreed to cooperate in different projects with the goal of creating yet more superior hospitality and entertainment experiences for customers. The partnership will thereby enable GEG to continue to move towards realising its goal of becoming globally recognised as “Asia’s leading gaming and entertainment enterprise”.

On the property business front, K. Wah International Holdings Limited (“KWIH”) acquired six premium land parcels in Hong Kong and Mainland China last year, including phase one of the West Rail Kam Sheung Road development project and a waterfront residential plot in Cheung Sha Wan, Kowloon, together with the new land parcels in Nanjing, Suzhou and Jiangmen. In addition, KWIH announced in January this year that it secured a HK$7 billion syndicated loan involving 11 banks, giving it fresh impetus to explore and invest in quality projects with strong growth potential.

For its hotel business, the Group’s InterContinental Grand Stanford Hong Kong (ICGS) completed its US$43 million guestroom renovation project in the fourth quarter of 2017, ensuring guests with ultimate luxury experience. ICGS has once again been bestowed the title World’s Leading Luxury Business Hotel by World Travel Awards (“WTA”), regarded as the Oscars of the travel industry. Additionally, ICGS will partner with acclaimed UK celebrity chef Theo Randall in launching the Briton’s first-ever restaurant in Hong Kong. Theo Mistral by Theo Randall will bring a new and exciting culinary concept to the local dining scene. In the U.S., LUMA Hotel has opened in the heart of New York City, adjacent to Times Square. This brand new modern hotel will bring a new vibrancy to the local hotel scene and a refreshing experience to guests.

Another significant milestone reached in the past year included K. Wah Construction Materials Limited (“KWCM”) which concluded more than half a century of green quarrying

K. Wah Group Spring Cocktail Reception “Celebration of a New Year of Prosperity” 12 March 2018 at the Anderson Road Quarry and returned the rehabilitated site to the HKSAR Government. Though marking the conclusion of a meaningful journey by the Group, it heralded the beginning of development of East Kowloon and the Group will continue to apply its advanced management skills, technologies and experience gained at the Anderson Road Quarry to a new quarry in Huidong, Guangdong Province, which will have an annual production capacity of 4,300,000 tonnes, and will help satisfy demand for premium construction aggregates in Hong Kong. KWCM is now one of the largest steel slag manufacturers in China, with an annual production capacity of over 10.8 million tonnes. The environmentally sustainable materials KWCM produced are widely used in prominent infrastructure projects in the PRC, such as Beijing Daxing International Airport and Shenzhen Qianhai Shimao Financial Center.

Promoting harmony and benevolence for a better world

Besides focusing on business growth, K. Wah Group continues to uphold its belief in “giving back to the society from which one is benefitted”. It has worked fervently in honouring its corporate social responsibility and has sought to give back to society by nurturing talent through education development. Spearheading such efforts is Dr Lui Che-woo, Chairman and Founder of K. Wah Group and Director of LUI Che Woo Charity, donated RMB120 million last year to the School of Life Sciences of Peking University for setting up the Lui Che Woo School of Life Sciences Fund, which will support the construction of a new life sciences research building and help nurture more scientific talent, and thereby contribute to the well-being of mankind in the future. Another notable endeavour by Dr Lui is the LUI Che Woo Prize – Prize for World Civilisation, and its second Prize Presentation Ceremony was held last October. The LUI Che Woo Prize 2018 has set a Specific Area of Focus including Development of Renewable Energy; Reduction of the Impacts of Natural Disasters and Elimination of Illiteracy.

Marriage of Eastern and Western cultures to display innovative spirit

The spring cocktail reception kicked off with a dynamic video to showcase the Group’s many achievements over the past year. This was followed by a special luminous dragon dance and drum show performed respectively by the Kwok’s Kung Fu & Dragon Lion Dance Team - the only Hong Kong team thus far take top honour at the World Luminous Dragon & Lion Dance Championship, complemented by the Hong Kong Police Drum Band. The significance of the dragon in Chinese culture is manifold - representing good fortune and prosperity, an ideal ambassador for inspiring lives and welcoming the Year of the Dog. Apart from this special performance, the four main businesses of the Group set up interactive booths at the event venue, with the property business booth featuring a 3D model of K. Wah Centre. The booth also gave out 3D Chinese paper-cut as souvenirs. At the hospitality booth, the newly open Theo Mistral by Theo Randall of ICGS was introduced, while GEG erected an instant photo booth that enabled guests to take pictures with the signature Galaxy MacauTM, Broadway Macau™ and StarWorld as backdrops. As for the KWCM booth, it presented a matching game featuring its business and products, so that guests could enjoy the brain teasers while enjoying great food and beverages.

-End-