Dear Shareholders:

Quoting from the Former Ode on the Red Cliff, “Do you know of the water and the moon? The river flows endlessly, yet it neverdisappears. The moon waxes and wanes, yet it never grows bigger or smaller. Therefore, if you look in the eyes of change, everything in this world changes in an instant. But if you look in the eyes of stability, everything in the world, including humanity, is eternal.” Dozens of words have demonstrated precisely the truth of the changing universe. The changes of the water and the moon happen on their appearances, but never on their physical natures. Therefore, whether changes happen depends on people’s mind and view. Since nothing remains permanent in the world, change is just the eternal fact.

Entering the 12th Five-Year Plan, different sectors in China are moving on a development track as well as facing various new opportunities and challenges. Amidst the changing and sophisticated global landscape and economic environment, countries are proactive in looking for ways to overcome the current crisis. Like biological evolution, “survival of the fittest” during the course of reformation is to adapt to changes in the surrounding environment and make changes accordingly. Going through the time of a fishing port, entrepot trade development, light industry development in the 50’s and 60’s, and then the major development of financial and service industries, nowadays, Hong Kong has already transformed from a tiny fishing village to an international financial centre, and is even becoming an offshore Renminbi centre. Such remarkable economic achievements were the results of the joint efforts of Hong Kong people, who leveraged upon their adaptive capabilities to tap into development opportunities and forge ahead. New World Group has been acting in the same way to achieve its clear and practical goal of maximising shareholders’ returns by adopting appropriate strategies, optimising products and services based on market trends.

Whilst having a long standing history, the Group often reviews its operating strategies. Our improvement and innovative ideas have never been hindered by our proven record, which instead has paved the way for determined, practical development and new directions. As Confucius said, “Reviewing what you have learned and learning anew, you are fit to be a teacher.” New ideas can be gained through reviewing past experience. Inspirations and thoughts may even come from failures in the past. This is because modern and advanced technologies as well as new knowledge are able to make up the shortcomings of and add value to old methods.

Going forward, the Group will continue to press ahead steadily with an open mindset, a practical attitude, a broad vision and a unique insight, adhering to its ultimate objective of serving the nation and the wider community in the changing landscape.

Dr Cheng Yu-Tung
Chairman
Hong Kong, 29 September 2011