Associate Chairman’s Statement

The Group continues to adopt the development strategy of consolidating its culture and entertainment businesses for the sake of becoming an omni-bearing conglomerate in cultural and entertainment business. The Group has actively invested in the Xiqiao National Arts Studio and National Arts Resort Hotel. The grand opening was held in October 2015.

With excellent geographical location, rich scene selection and multi-functional supporting services, Xiqiao National Arts Studio has attracted different film and television production companies to shoot movie and TV series on the site. To enhance the competitiveness, the Group has also built a number of indoor studios and is now working with suitable partners to improve the quality of the equipment. Some Crew from mainland China and Hong Kong and film production companies conducted on-the-spot visits to the site and highly commended the scenery and corollary equipment in the movie studio, which has bolstered the confidence of the Group. The Group makes every endeavor to develop a first-tier studio in the world with the hope that higher quality movies and television series would be produced by the industry.

The total box office in mainland China in 2015 reached RMB44.07 billion (around HK$52.7 billion), an increase of 48.7% compared with 2014. With the tremendous development of China’s film industry in recent years and the constant increase of annual box office, the Group is convinced of the prosperity of the film industry in mainland China. In addition, the strong support from mainland government to the infrastructure and civil engineering in the Xiqiao National Arts Studio and development potential of the industry have laid a sound foundation for the promotion of the studio, and it is expected that infinite business opportunities and considerable profit will be brought to the Group.

Last but not least, I would like to express my gratitude to the Board members and the entire workforce for their dedication and contributions. The Group will strengthen its core businesses and watch for, identify and exploit potential business opportunities relating to entertainment business. Thank you for your support.

Associate Chairman

Mr. Chow Kai Weng