Sino Land : 2020 Annual Report

This annual report ("Annual Report") is available in both English and Chinese. Shareholders who have received either the English or the Chinese version of the Annual Report may request a copy in the language different from that has been received by writing to the Company's Share Registrar,

Tricor Standard Limited at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong.

The Annual Report (in both English and Chinese versions) has been posted on the Company's website at www.sino.com. Shareholders who have chosen to rely on copies of the Corporate Communications (including but not limited to annual report, summary financial report (where applicable), interim report, summary interim report (where applicable), notice of meeting, listing document, circular and proxy form) posted on the Company's website in lieu of any or all the printed copies thereof may request printed copy of the Annual Report.

Shareholders who have chosen or are deemed to have consented to receive the Corporate Communications using electronic means through the Company's website and who have difficulty in receiving or gaining access to the Annual Report posted on the Company's website will upon request be sent the Annual Report in printed form free of charge.

Shareholders may at any time choose to change their choice of language and means of receipt (i.e. in printed form or by electronic means through the Company's website) of all future Corporate Communications from the Company by giving notice in writing by post to the Company's Share Registrar, Tricor Standard Limited at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong or by email at [e-mail].

Contents

1. Corporate information
2. Group financial summary

1. Chairman's statement

17 Review of operations

56 Sustainable development

63 Corporate governance report

1. Risk management report

1. Directors' report

1. Biographical details of Directors & senior management

1. Independent auditor's report

1. Consolidated statement of profit or loss
2. Consolidated statement of profit or loss and other comprehensive income
3. Consolidated statement of financial position

1. Consolidated statement of changes in equity
2. Consolidated statement of cash flows

124 Notes to the consolidated financial statements

1. Disclosure pursuant to Rule 13.22 of the Listing Rules
2. Major properties held by the Group

Annual Report 2020	Sino Land Company Limited		1

2		Sino Land Company Limited	Annual Report 2020

Board of Directors

Robert Ng Chee Siong, Chairman

Daryl Ng Win Kong, JP, Deputy Chairman Ronald Joseph Arculli, GBM, CVO, GBS, OBE, JP# Allan Zeman, GBM, GBS, JP*

Adrian David Li Man-kiu,JP* Steven Ong Kay Eng* Wong Cho Bau, JP*

Ringo Chan Wing Kwong

Gordon Lee Ching Keung Sunny Yeung Kwong

Thomas Tang Wing Yung, Group Chief Financial Officer

(appointed on 15th January, 2020)

(# Non-Executive Director)

(* Independent Non-Executive Directors)

Audit Committee

Adrian David Li Man-kiu,JP, Chairman

Allan Zeman, GBM, GBS, JP

Steven Ong Kay Eng

Nomination Committee

Robert Ng Chee Siong, Chairman

Allan Zeman, GBM, GBS, JP

Adrian David Li Man-kiu,JP

Remuneration Committee

Steven Ong Kay Eng, Chairman

Allan Zeman, GBM, GBS, JP

Adrian David Li Man-kiu,JP

Daryl Ng Win Kong, JP

Authorized Representatives

Robert Ng Chee Siong

Ringo Chan Wing Kwong

Company Secretary

Corporate information

Principal Bankers

Bank of China (Hong Kong) Limited Hang Seng Bank Limited

The Hongkong and Shanghai Banking Corporation Limited DBS Bank Ltd., Hong Kong Branch

China Construction Bank (Asia) Corporation Limited Industrial and Commercial Bank of China (Asia) Limited Standard Chartered Bank (Hong Kong) Limited Bangkok Bank Public Company Limited

The Bank of East Asia, Limited

Investor relations contact

Please direct enquiries to:

Group General Manager (Corporate Finance & Investor Relations)

Telephone	:	(852) 2132 8090
Fax	:	(852) 2137 5963
Email	:	[e-mail]

Registered Office

12th Floor, Tsim Sha Tsui Centre,
Salisbury Road, Tsim Sha Tsui,
Kowloon, Hong Kong
Telephone	:	(852) 2721 8388
Fax	:	(852) 2723 5901
Website	:	www.sino.com
Email	:	[e-mail]

Listing information

Stock code	83
American depositary receipt
CUSIP Number	829344308
Trading Symbol	SNLAY
ADR to Ordinary Share Ratio	1:5
Listing	Level One (OTC)
Depositary Bank	The Bank of New York
	101 Barclay Street,
	22nd Floor - West,
	New York, NY 10286,
	U.S.A.

Fanny Cheng Siu King (appointed on 1st May, 2020)

Auditor

Deloitte Touche Tohmatsu

Registered Public Interest Entity Auditors

Solicitors

Woo, Kwan, Lee & Lo

Clifford Chance

Share Registrar

Tricor Standard Limited

Level 54, Hopewell Centre,

183 Queen's Road East, Hong Kong

Telephone	:	(852) 2980 1333
Fax	:	(852) 2861 1465
Email	:	[e-mail]

Shareholders' calendar

Closure of Register of Members

for entitlement to attend and

vote at Annual General Meeting

Annual General Meeting

Closure of Register of Members

for dividend entitlement

Record Date for

final dividend entitlement

Last Date for lodging form of election for scrip dividend

Interim Dividend Paid

Final Dividend

Payable

22nd October, 2020 to 28th October, 2020 (both dates inclusive)

28th October, 2020

3rd November, 2020 to 4th November, 2020 (both dates inclusive)

4th November, 2020

26th November, 2020 4:30 p.m.

HK14 cents per share 17th April, 2020

HK41 cents per share 7th December, 2020

Annual Report 2020	Sino Land Company Limited		3

Group financial summary

	2016	2017	2018	2019	2020
	HK$	HK$	HK$	HK$	HK$
Turnover	10,803,690,687	18,333,874,993	10,730,234,383	8,009,912,578	5,886,888,002
Underlying net profit					4,557,049,804
from operations	5,748,981,277	5,565,243,295	11,247,096,992	4,671,078,053
Profit attributable to
the Company's					1,688,050,428
shareholders	7,090,436,987	7,414,672,305	13,995,949,179	6,914,903,934
Underlying earnings					65.89
per share (cents)	94.04	89.32	175.14	69.68
Reported earnings per					24.41
share (cents)	115.98	119.00	217.94	103.15
Dividends per share					55.0
(cents)	51.0	53.0	98.0	55.0

Underlying earnings & dividends per share
HK Cent
200200
180
180
160
160
140
140
120
120
100
100
8080
6060						Underlying
4040
					earnings per
2020						share
00					Year	Dividends per
2016	2017	2018	2019	2020	share

4		Sino Land Company Limited	Annual Report 2020

Group financial summary (Continued)

Consolidated statement of financial position

	2016		2017	2018		2019		2020
		HK$		HK$		HK$		HK$		HK$
Non-current assets	90,771,041,127	94,319,325,140	105,863,032,858	106,204,235,953	106,332,352,941
Current assets	58,287,413,047	60,946,539,943	53,244,363,670	74,544,144,431	80,391,448,913
Current liabilities	(17,649,712,727)	(20,050,896,042) (12,131,243,524) (25,385,564,491)	(32,319,376,427)
	131,408,741,447	135,214,969,041	146,976,153,004	155,362,815,893	154,404,425,427
Share capital	38,657,017,941	40,590,631,436	44,560,016,005	47,324,776,293	49,806,148,516
Reserves	83,474,152,717	87,763,136,246	95,021,924,733	97,969,236,460	95,109,732,783
Shareholders' funds	122,131,170,658	128,353,767,682	139,581,940,738	145,294,012,753	144,915,881,299
Non-controlling interests	543,049,902		971,301,683	860,175,745	868,091,612	843,307,789
Non-current liabilities		8,734,520,887		5,889,899,676	6,534,036,521	9,200,711,528	8,645,236,339
	131,408,741,447	135,214,969,041	146,976,153,004	155,362,815,893	154,404,425,427
Shareholders' funds at book													20.57
value per share	19.81		20.32	21.14	21.31

		Profit attributable to
Shareholders' funds		the Company's shareholders
HK$ Billion		HK$ Million

150					14,000
140					13,000
130					12,000
120					11,000
110
				10,000
100
				9,000
90
				8,000
80
				7,000
70
				6,000
60
				5,000
50
40					4,000
30					3,000
20					2,000
10					1,000
0					0
2016	2017	2018	2019	2020	Year

2016

2017

2018

2019

2020

Year

Annual Report 2020	Sino Land Company Limited		5

Group financial summary (Continued)

The Company and its subsidiaries (the "Group")

Breakdown of segment results		Breakdown of segment revenue
for the year ended 30th June, 2020		for the year ended 30th June, 2020

Property sales 1.2%	Property sales 14.7%
Property rental 82.5%	Property rental 53.7%
Property management and other services 8.3%	Property management and other services 19.5%
Hotel operations 5.0%	Hotel operations 10.4%
Investments in securities and financing 3.0%	Investments in securities and financing 1.7%

6		Sino Land Company Limited	Annual Report 2020

Group financial summary (Continued)

The Group and attributable share from associates and joint ventures

Breakdown of segment results		Breakdown of segment revenue
for the year ended 30th June, 2020		for the year ended 30th June, 2020

Property sales 16.5%	Property sales 27.5%
Property rental 71.5%	Property rental 47.2%
Property management and other services 5.9%	Property management and other services 14.6%
Hotel operations 3.8%	Hotel operations 9.4%
Investments in securities and financing 2.3%	Investments in securities and financing 1.3%

Annual Report 2020	Sino Land Company Limited		7

Chairman's statement

I am pleased to present 2019/2020 Annual Report to the shareholders.

Final results

The Group's underlying profit attributable to shareholders, excluding the effect of fair-value changes on investment properties for the year ended 30th June, 2020 ("Financial Year") was HK$4,557.0 million compared to HK$4,671.0 million last year. Underlying earnings per share was HK$0.65, compared to HK$0.69 last year.

After taking into account the revaluation loss (net of deferred taxation) on investment properties of

HK$2,532.7 million, which is a non-cash item, compared to a revaluation surplus (net of deferred taxation) of HK$2,415.7 million last year, the Group reported a net profit attributable to shareholders of HK$1,688.0 million for the Financial Year (2018/2019: HK$6,914.9 million). Earnings per share for the Financial Year was HK$0.24 (2018/2019: HK$1.03).

Dividends

The Directors have resolved to recommend a final dividend of HK41 cents per share in respect of the Financial Year to shareholders whose names appear on the Register of Members of the Company on 4th November, 2020. Together with the interim dividend of HK14 cents per share paid on 17th April, 2020, the total dividend for the Financial Year is HK55 cents per share.

The Directors propose that shareholders be given the option to receive the final dividend in new shares in lieu of cash. The scrip dividend proposal is subject to: (1) the approval of the proposed final dividend at the Annual General Meeting to be held on 28th October, 2020; and

1. The Stock Exchange of Hong Kong Limited granting the listing of and permission to deal in the new shares to be issued pursuant to this proposal.

A circular containing details of the scrip dividend proposal will be dispatched to shareholders together with the form of election for scrip dividend on or about 11th November, 2020. It is expected that the final dividend warrants and share certificates for the scrip dividend will be dispatched to shareholders on or about 7th December, 2020.

(rendering)

Grand Central

Central to the Kwun Tong Town Centre Development Areas, Grand Central enjoys the enormous potential the 'Energising Kowloon East' and CBD² initiatives bring about. It will provide 1,999 residential units and a podium comprising a shopping mall and a public transport interchange.

In addition to 5G-ready infrastructure, Grand Central will feature smart home designs, smart irrigation system and renewable energy harvesting devices, creating a healthy environment for residents in a smart way.

8		Sino Land Company Limited	Annual Report 2020

Chairman's statement (Continued)

Business review

(1)Sales activities

For the Financial Year, property sales at subsidiary level was HK$863.9 million compared to HK$2,541.7 million last year. The year-on-year reduction was primarily due to no new completion of property sales took place at subsidiary level this Financial Year, whereas, there were booking

of property sales of HK$1,305.4 million from Commune Modern in the last financial year. Including property sales of associates and joint ventures recognised by the Group, the total revenue from property sales attributable to the Group for the Financial Year was HK$2,372.7 million compared to HK$2,986.5 million last year.

Property sales at subsidiary level for the Financial Year comprise mainly the sales of residential units as well as carparking spaces in projects completed in previous financial years including Park Mediterranean in Sai Kung (100% sold), The Mediterranean in Sai Kung

(96% sold), The Palazzo in Shatin (100% sold), and Commune Modern in Fanling (100% sold). Property sales of associates and joint ventures for the Financial Year comprise mainly the sales of commercial space in Capital Tower at 38 Wai Yip Street in Kowloon East (50% sold); as well as residential units and carparking spaces in projects completed in previous financial years including Providence Bay in Pak Shek Kok (100% sold), The Coronation in South West Kowloon (100% sold), and The Spectra in Yuen Long (99% sold).

During the Financial Year, certain units of 133 Portofino in Sai Kung were launched for sale by way of tender.

Subsequent to the Financial Year end, the Group obtained pre-sale consent for St. George's Mansions at 24A Kadoorie Avenue in Ho Man Tin in July 2020 and certain units of the project were launched for sale by way of tender. The Group expects to obtain pre-sale consents for five other residential projects in the next 12 months. These residential projects are Silversands (STTL 611) in Ma On Shan, KIL 11254 in Mongkok, Grand Victoria (NKIL 6549) in South West Kowloon, IL 9064 (Site A) in Central, and AIL 467 (Site B) in Aberdeen. The timing for launching the projects for sale will depend on when the pre-sale consents are received and the prevailing market conditions.

(2)Land bank

As at 30th June, 2020, the Group has a land bank of approximately 22.3 million square feet of attributable floor area in Mainland China, Hong Kong, Singapore and Sydney which comprises a balanced portfolio of properties of which 39.7% is commercial; 37.1% residential; 10.8% industrial; 7.0% car parks and 5.4% hotels. In terms of breakdown of the land bank by status, 9.8 million square feet were properties under development, 11.8 million square feet of properties for investment and hotels, together with 0.7 million square feet of properties held for sale. The Group will continue to be selective in replenishing its land bank to optimise its earnings potential.

During the Financial Year, the Group was awarded the right to develop a residential project at Wong Chuk Hang Station from MTR Corporation Limited with attributable floor area of approximately 159,576 square feet. Details of the project are as follows:

Location	Usage	Group's	Attributable
		Interest	Floor Area
			(Square feet)
AIL 467 (Site D)	Residential	Joint venture	159,576
Wong Chuk Hang Station Package Four Property Development,
Wong Chuk Hang,
Aberdeen,
Hong Kong

Annual Report 2020	Sino Land Company Limited		9

Chairman's statement (Continued)

Business review (Continued)

(2)Land bank (Continued)

In addition, the Group acquired a commercial site in Qianhai in Shenzhen. The project will provide total attributable plot ratio area of 258,336 square feet. Details of the project are as follows:

Location

Lot No. T102-0261

Land Parcel 03, Unit 7,

Qianwan Area, Qianhai

Shenzhen-Hong Kong Modern

Service Industry Cooperation Zone,

Shenzhen,

People's Republic of China

(rendering)

Usage	Group's	Attributable
	Interest	Floor Area
		(Square feet)
Commercial	30%	258,336

133 Portofino

133 Portofino in Sai Kung has received WELL v2TM pre-certification, becoming the first Hong Kong residential project accredited by Core V.2 of the world's first architectural benchmark that focuses exclusively on human health and wellness to promote sustainability.

(3)Property development

During the Financial Year, the Group obtained Occupation

Permits for two projects, namely Madison Park and 133

Portofino. Details of the two projects are as follows:

Location	Usage	Group's		Attributable
		Interest		Floor Area
				(Square feet)
1. Madison Park	Residential/	Joint Venture	52,571
1 Kowloon Road, Cheung Sha Wan, Kowloon,	Retail
Hong Kong
2. 133 Portofino	Residential	100%	51,592
133 Hong Kin Road, Sai Kung, New Territories,
Hong Kong
			104,163

10		Sino Land Company Limited	Annual Report 2020

Chairman's statement (Continued)

Business review (Continued)

(4)Rental activities

For the Financial Year, the Group's gross rental revenue, including attributable share from associates and

joint ventures, was HK$4,061.9 million (2018/2019: HK$4,239.9 million), representing a decrease of 4.2% year-on-year. The decrease was primarily due to the impact of the COVID-19 pandemic, including rental relief granted to tenants. In terms of net rental income, it only declined 2.3% year-on-year, to HK$3,599.8 million for the Financial Year (2018/2019: HK$3,685.2 million), as the decline in relevant expenses is greater than that of the gross rental revenue. Overall occupancy of the Group's investment property portfolio was at approximately 94.8% for the Financial Year (2018/2019: 96.3%).

Rental income from the Group's retail portfolio was much affected by the rental relief granted to tenants and a slightly lower occupancy rate of 96.0% (2018/2019: 97.2%). As for the leasing performance of the Group's office portfolio, there was a slight rental growth compared to last year mainly due to positive rental reversion on lease renewals, while occupancy rate remains broadly flat at approximately 95.2% (2018/2019: 96.0%). Leasing performance of the Group's industrial portfolio saw a slight rental decline mainly due to occupancy rate which declined 3.4% points to approximately 90.3% (2018/2019: 93.7%).

The Group's investment property portfolio primarily serves the need of its customers which include tenants, shoppers and the communities around the properties. The design and condition of the properties together with the quality of service provided to customers are of paramount importance. To ensure that the properties are in good condition, the Group performs regular review of the properties as part of its asset enhancement initiatives. Going forward, the Group will adopt a proactive asset management approach to its balanced portfolio of rental properties. On service quality, the Group places a strong emphasis on regular training particularly for all front-line staff to ensure that the service provided to customers meets their expectations. Comments

from customers, reports by silent shoppers and recognitions from professional institutions all play a role in assessing the quality of service delivered by the staff. With health and safety being our utmost priority, proactive measures have been taken to strengthen the standards of hygiene at the Group's shopping malls, offices, and other properties to offer a safe and clean environment for customers, residents, and staff.

The Fullerton Hotel Singapore

Housed in the historic building completed in 1928, The Fullerton Hotel Singapore provides 400 beautifully presented guest rooms and suites. Its excellent location and comprehensive facilities make it ideal for both business and leisure travellers. The Hotel has received international awards and accolades in recognition of its impeccable services and offerings.

On 7 December 2015, the building was gazetted as Singapore's 71st National Monument.

As at 30th June, 2020, the Group has approximately

11.8 million square feet of attributable floor area of investment properties and hotels in Mainland China, Hong Kong, Singapore and Sydney. Of this portfolio, commercial developments (retail and office) account for 61.6%, industrial 14.7%, car parks 13.2%, hotels 7.7%, and residential 2.8%.

Total attributable value of investment properties (including associates and joint ventures) amounted to HK$83,385.3 million (2018/2019: HK$86,285.6 million), representing an overall decrease of 3.36% year-on-year. Excluding additions and disposals during the year, the decrease in value of the investment properties is 2.83%.

Annual Report 2020	Sino Land Company Limited		11

Chairman's statement (Continued)

Business review (Continued)

The Fullerton Hotel Sydney

The 416-roomfive-star hotel was rebranded as The Fullerton Hotel Sydney on 18 October 2019. Located at No. 1 Martin Place, the heart of Sydney's fashion and financial district, the iconic hotel includes the redevelopment of the former Sydney General Post Office, blending contemporary elegance with historical charm and providing warm hospitality for guests to create their own Fullerton memories.

(5)Hotels

The performance of our hotels was much affected by the outbreak of COVID-19 and its adverse impact on cross border and international travel. For the Financial Year, the Group's hotel revenue, including attributable share from associates and joint ventures, was HK$811.3 million compared to HK$1,353.0 million last year, and the corresponding operating profit was HK$192.6 million compared to HK$537.3 million last year.

The Group is taking all practicable measures to cope with the challenges. The first priority is to deliver feeling of safety to our discerning guests therefore we are putting in place strict sanitisation and hygiene protocol to ensure guests returning to stay or dine with us will have complete peace of mind and full assurance in

our product and service. Moreover, we are introducing marketing and sales recovery strategies to target the domestic market (staycation) and at the same time, taking decisive decision to reduce operating costs. The Group will continue to improve the quality of its hotel services to ensure our discerning guests have enjoyable experiences during their stays in the hotels.

As at 30th June, 2020, the Group's portfolio of hotels comprises The Fullerton Hotel Singapore, The Fullerton Bay Hotel Singapore, Conrad Hong Kong, The Fullerton Hotel Sydney (rebranded from Westin Sydney Hotel in October 2019) and The Olympian Hong Kong.

(6)Mainland China business

Urbanisation continues to play a key role in Central Government's urban planning and policy. In November 2019, Central Government introduced a total of 16 measures to expedite the economic cooperation within the Greater Bay Area. These measures would fortify the economic strengths of the cities within the Greater Bay Area and open a wide spectrum of opportunities for people and enterprises. In December 2019, the Communist Party of China Central Committee and the State Council jointly published an outline for integrating the cities within Yangtze River Delta setting the development goals and roadmap for the region by 2025. The policy of developing city clusters will significantly take urbanisation in Mainland China to the next level.

As at 30th June, 2020, the Group has approximately 5.5 million attributable square feet of land bank in Mainland China. Of the total, approximately 4.5 million square feet are projects under development and the remaining are mainly investment properties. The projects under development include 100% interest in Dynasty Park

in Zhangzhou, 50% interest in a serviced apartment project in Qianhai, 20% interest in The Palazzo in Chengdu, and 30% interest in a new commercial development site located in Qianwan Area in Qianhai.

Other than the matters mentioned above, there has been no material change from the information published in the report and accounts for the year ended 30th June, 2019.

12		Sino Land Company Limited	Annual Report 2020

Chairman's statement (Continued)

Finance

The Group's financial position remains strong. As at 30th June, 2020, the Group had cash and bank deposits of HK$43,664.0 million. After netting off total borrowings of HK$5,250.1 million, the Group had net cash of HK$38,413.9 million as at 30th June, 2020. Of the total borrowings, 15.8% repayable within one year, 65.1% repayable between one and three years and the remaining between four and five years. Majority of the Group's borrowings are subject to floating interest rates. Total assets and shareholders' funds of the Group were HK$186,723.8 million and HK$144,915.8 million, respectively.

As at 30th June, 2020, the majority of the Group's debts are denominated in Hong Kong dollars. Other than the above-mentioned, there was no material change in foreign currency borrowings and the capital structure of the Group for the Financial Year. The majority of the Group's cash are denominated in Hong Kong dollars with a portion in Renminbi, Australian dollars and US dollars. The Group has maintained a sound financial management policy and foreign exchange exposure has been prudently kept at a minimal level.

Corporate governance

The Group places great importance on corporate integrity, business ethics and good governance. With the objective of practising good corporate governance, the Group has formed Audit, Compliance, Remuneration and Nomination Committees. The Group is committed to maintaining corporate transparency and disseminates information about new developments through various channels, including press releases, its corporate website, results briefings, non-deal roadshows, site visits and participation in investor conferences.

Customer service

The Group is committed to building quality projects. In keeping with its mission to enhance customer satisfaction, the Group will, wherever possible, ensure that attractive design concepts and features are

also environmentally-friendly for its developments. Management conducts regular reviews of the Group's properties and service so that improvements can be made on a continuous basis.

Sino Property Services has collaborated with Asbury Methodist Social Service (AMSS) on the 'LOVE · SHARING' Toy Collection Programme. Over 4,400 pieces of toys and 4,500 books have been collected from managed properties and given to families in need under the 'Help2 Project' from AMSS.

Corporate social responsibility

Sustainability is integral to the Group's business and operations. We have been structuring our corporate social responsibility efforts around the six areas crucial to our vision of 'Creating better lifescapes', namely Green, Wellness, Design, Innovation, Heritage & Culture and Community. In recognition of the Group's continuous efforts in promoting sustainability and upholding high standards in environmental, social and governance aspects, Sino Land has been named a constituent company of the Hang Seng Corporate Sustainability Index Series since September 2012.

Management recognises the importance of environmental protection, social responsibility and governance, as well as our role in building a more sustainable community. Our annual sustainability reporting highlights the corporate sustainability footprints and initiatives, and has been conducted in accordance with Hong Kong Exchanges and Clearing Limited's 'Environmental, Social and Governance Reporting Guide' under Appendix 27 to the Main Board Listing Rules.

Annual Report 2020	Sino Land Company Limited		13

Chairman's statement (Continued)

Corporate social responsibility

(Continued)

The Group joined the United Nations Global Compact as a Signatory in April 2020, becoming one of the first property companies in Hong Kong to do so. Incorporating the Ten Principles of the United Nations Global Compact into strategies, policies and procedures, the participation reaffirms our commitment to operating in a principled and responsible manner.

The built environment has a profound impact on health and well-being. In March 2020, 133 Portofino, the Group's latest residential project in Sai Kung, received WELL v2TM Pre-certification, becoming the first Hong Kong residential project accredited by WELL v2TM, the world's first architectural benchmark focusing exclusively on human health and wellness to improve sustainability.

The Group's integrated green project 'Farm Together' was launched in March 2020 to promote urban farming and bring nature into the lives of those in our community. With a total area of over 23,000 square feet, the 'Farm Together' project currently operates across the city including Sky Farm at the Skyline Tower, 148 Farm at 148 Electric Road, Gold Coast Fun Farm, Gold Coast Eco Farm, Gold Coast Farm and the

Butterflies and Herbs Farm at the Hong Kong Gold Coast Hotel. The harvest of the farms has been shared with our staff, tenants, residents and donated to charity organisations to support the community.

The Group initiates programmes and collaborates with charitable organisations to promote volunteering and community services for the less resourced on a regular basis. Sino Caring Friends, volunteers comprising staff of the Group, have been actively taking part in community programmes and charitable work. During the reporting period, over 174,000 volunteering service hours have been recorded.

The Group seeks to foster a culture of innovation to harness technology and explore business applications. Sino Inno Lab, a sandbox platform for technology companies to facilitate co-creation and support innovation, has been honoured at the Global Most Innovative Knowledge Enterprise (MIKE) Award 2019 and Hong Kong MIKE Award 2019, alongside 21 organisations from eight countries and regions. Sino Inno Lab is part of the holistic innovation ecosystem of Hong Kong Innovation Foundation to support innovation and technology. Since its inception, Sino Inno Lab has showcased more than 70 inventions and technologies, facilitated over 40 adoptions and welcomed more than 4,800 visitors from business associates, trade organisations and the academia.

The Group launched integrated green project 'Farm Together' in March 2020 to promote urban farming and bring the community closer to nature.

In a further effort to foster a culture of innovation, the Group has established Sino Inno Lab, a sandbox platform for technology companies to test out inventions and to facilitate co-creation.

14		Sino Land Company Limited	Annual Report 2020

Chairman's statement (Continued)

Corporate social responsibility

(Continued)

In a further effort to foster innovation, Sinovation, a group-wide competition, was launched in June 2019 to encourage innovative ideas from staff and to turn concepts into functional prototypes. The Group has also been supporting the HKUST-Sino One Million Dollar Entrepreneurship Competition since 2018 to nurture home-grown innovations.

In March 2008, the Ng Family set up a non-profit- making organisation, Hong Kong Heritage Conservation Foundation Limited ('HCF'). HCF revitalised and converted the Old Tai O Police Station, a Grade

1. historic building, into a boutique hotel, it has been operating as a not-for-profit social enterprise since March 2012 with surpluses used to support maintenance of the site. Named Tai O Heritage Hotel ('Hotel'), it is home to nine colonial-style rooms and suites, and is part of the HKSAR Government's 'Revitalising Historic Buildings Through Partnership Scheme'. It provides permanent employment opportunities for Tai O and Lantau residents, and has organised community engagement programmes encompassing cultural activities, community services and home care services for the elderly living in Tai O. In 2018, HCF initiated 'Tai O Stilt House Restoration Programme' to provide financial assistance to repair and restore stilt houses of elderly villagers, and to preserve its unique architecture and cultural value. Six stilt houses have been repaired and restored since launch. The Hotel won Merit Award at the '2013 UNESCO Asia-Pacific Awards for Cultural Heritage Conservation', becoming the first UNESCO-awarded hotel in Hong Kong.

Prospects

The financial year 2019/2020 was indeed challenging due to unprecedented and exceptional circumstances, exacerbated by the outbreak of the COVID-19 pandemic. While central banks and governments have been supportive with measures such as interest rate cuts and stimulus plans (including relief packages, wage subsidies, and one time direct cash payment to individuals etc.) to ease the pressure during this difficult time, economic growth is expected to slow before it recovers as economies gradually re-open. Despite macro headwinds, the residential property market in Hong Kong remains resilient and fundamentally sound. Record low interest rates and favourable mortgage terms continue to encourage home ownership and they are providing support to the Hong Kong residential market.

For China, although its economy was negatively impacted by the pandemic in the first quarter of 2020, the leadership implemented good decisions on monetary and fiscal stimuli which are lending support to a recovery of the mainland economy. Moreover, the Central Government has adopted decisive measures to overcome the outbreak. China is now the first major economy to recover from the pandemic. With long-term positive economic fundamentals, China is expected to remain one of the world's key growth engine. Prominent Central Government policy like the Greater Bay Area and Belt and Road Initiatives will be instrumental in driving this growth. Hong Kong, as the most open and international city for business in the Greater Bay Area, and with an established economic and regulatory system, is well positioned to benefit from opportunities arising from continuous and rapid developments in the region. This will strengthen Hong Kong's position as an international hub for finance, business, trade and tourism, and support a stable economic environment for Hong Kong. We remain optimistic that Hong Kong will see brighter tomorrow and continue to be a vibrant international city.

Annual Report 2020	Sino Land Company Limited		15

Chairman's statement (Continued)

Prospects (Continued)

During these challenging times, management have taken the opportunity to learn and improve. We have reviewed the processes, procedures, and the structure of operations in order to streamline workflow to enhance efficiency, as well as taken decisive decisions to achieve cost savings across the organisation. When the situation improves and economic recovery returns, the Group is able to leverage on an enhanced operational structure which will lead to higher shareholders' value.

The Group will continue to optimise earnings, enhance efficiency and productivity, and improve the quality of products and services. Management shall maintain a policy of selectively and continuously replenishing its land bank. In terms of property sales, product quality and service as well as price are the main critical success factors and the Group shall make every effort to deliver what the customers want in order to further enhance our brand. Regarding recurrent businesses of the Group, which comprise property leasing, hospitality, and property management services, they will continue to be core pillars of the Group contributing a good and steady stream of income. Additionally, the importance of applying commercially viable technologies in the business operations to expedite our work has been well recognised by management. Technology advancement is growing at an exponential speed and the Group will stay abreast with the latest digitisation developments and use it to enhance business development and operational efficiency.

The Group is cautiously optimistic on the outlook of the economy and property market in Hong Kong. We have strong faith that Hong Kong will overcome this challenging period. Meanwhile our organisation must adopt a new mindset and take this as the most important lesson that we should learn and improve from. With a strong financial position and sustainable business growth strategy, the Group is well placed to meet the challenging economic environment and to grasp opportunities.

Staff and management

On behalf of the Board, I would like to take this opportunity to express my sincere appreciation to all staff for their commitment, dedication and continuing support. I would also like to express my gratitude to my fellow Directors for their guidance and wise counsel.

Robert NG Chee Siong

Chairman

Hong Kong, 26th August, 2020

16		Sino Land Company Limited	Annual Report 2020

Review of operations

(1) Land bank

As at 30th June, 2020, the Group had a land bank of approximately 22.3 million square feet. This land bank consisted of a diversified and balanced portfolio of properties, comprising: commercial 39.7%, residential 37.1%, industrial 10.8%, car parks 7.0% and hotels 5.4%. Developments currently under construction are generally situated in good locations and are

conveniently served by various modes of transport, including railway and subway lines. The tables below show the detailed breakdown of the Group's land bank as at 30th June, 2020.

The Group's commercial, industrial buildings, car parks and hotels are held mainly for long-term investment and to generate a stable stream of recurrent income.

By status and usage

(Floor area in square feet)	Commercial	Residential	Industrial	Car Park	Hotel		Total area	Percentage
Properties under development	1,415,384	7,881,900	176,906	-	291,896		9,766,086	43.7%
Investment properties and hotels	7,295,409	330,010	1,743,621	1,568,757	909,845		11,847,642	53.0%
Completed properties for sale		161,153	79,701	493,726	-	-	734,580	3.3%
Total		8,871,946			8,291,611		2,414,253		1,568,757		1,201,741			22,348,308	100.0%
Percentage	39.7%	37.1%	10.8%	7.0%	5.4%	100.0%
By location and usage
(Floor area in square feet)	Commercial	Residential	Industrial	Car Park	Hotel		Total area	Percentage
Mainland China	1,744,548	3,751,329	-	267		29,876		5,526,020	24.7%
Kowloon	3,004,524	2,286,093	1,490,002	364,145	43,759	7,188,523	32.2%
New Territories	2,612,501	1,549,680	924,251	1,144,043	-	6,230,475	27.9%
Hong Kong Island	1,349,922	704,509	-	60,302	427,526	2,542,259	11.4%
Singapore	130,729		-	-	-	545,510	676,239	3.0%
Sydney, Australia		29,722		-	-	-	155,070	184,792	0.8%
Total		8,871,946			8,291,611		2,414,253		1,568,757		1,201,741		22,348,308	100.0%

Annual Report 2020	Sino Land Company Limited		17

Review of operations (Continued)

1. Land bank (Continued)

The following charts show the changes of the Group's land bank by usage and geographical location over the last five financial years:

Land bank - breakdown by usage as at 30th June

Million
square feet
35	32.3	32.8
	1.4	1.3
30	1.5	1.5
	2.3	2.4
25			21.9		22.1	22.3
	9.0	9.4		1.2
	1.2		1.2
20					1.5
		1.5		1.6
					2.4
			2.4		2.4
15
							Hotel
			8.8		8.7		8.9
10						Car park
18.1	18.2
						Industrial
5
		8.0		8.2		8.3	Commercial
0								Residential
2016	2017	2018		2019	2020		Year
Land bank - breakdown by geographical location as at 30th June
Million
square feet
20
	17.3	16.8			15.9	15.9
		15.8
15		15.1
14.1
10
5			5.2	5.3	5.5			Mainland China
							Hong Kong
	0.70.2	0.70.2	0.70.2		0.70.2	0.70.2		Singapore
0			Sydney
2016	2017	2018		2019	2020	Year

18		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

1. Highlights of the Group's major property developments Development projects in Hong Kong

Madison Park (joint venture)

1 Kowloon Road, Cheung Sha Wan, Kowloon, Hong Kong

The Group was awarded the right to develop the site in Kowloon Road in Cheung Sha Wan at a tender from the Urban Renewal Authority of Hong Kong ('URA') in October 2016. The project has a site area of approximately 5,842 square feet. Upon completion, a total of approximately 52,571 square feet of plot ratio area will be built, comprising approximately 43,809 square feet of residential plot ratio area in 100 residential units as well as approximately 8,762 square feet of retail area. The Occupation Permit for the project was obtained in May 2020 and the Certificate of Compliance is expected to be obtained in the financial year 2020/2021. The pre-sale consent was obtained in August 2018 and it was launched for sale in the same month; to date, 92% of the residential units have been sold.

(rendering)

133 Portofino (100% owned)

133 Hong Kin Road, Sai Kung, New Territories, Hong Kong

The site was acquired at a government tender in April 2015. It is located at a prime position on the seafront of Sai Kung and is closed to the 6-hectare Sai Kung Outdoor Recreation Centre and 16-hectare Lions Nature Education Centre. The project has a site area of approximately 36,856

square feet. The project will provide a total of approximately 51,592 square feet of residential plot ratio area in 33 residential units, comprising 26 apartments and 7 houses upon completion. The Occupation Permit for the project was obtained in May 2020 and the Certificate of Compliance is expected to be obtained in the financial year 2020/2021. The fitting out and landscaping works are in progress. The pre-sale consent was obtained in January 2020 and it was launched for sale in February 2020.

(rendering)

Grand Central (joint venture)

33 Hip Wo Street, Kwun Tong (South), Kowloon, Hong Kong

In September 2014, the Group was awarded the rights to develop Areas 2 and 3 of the Kwun Tong Town Centre Development project from the URA. The entire Kwun Tong Town Centre Development project is the

Annual Report 2020	Sino Land Company Limited		19

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

Grand Central (joint venture)(Continued)

largest redevelopment initiative ever undertaken by the URA and is divided into five development areas comprising residences, shopping arcades, office buildings, a hotel, government facilities and a public transport interchange.

Development Areas 2 and 3 comprise residences, a shopping mall, government facilities and a public transport interchange. The project will be a vibrant world-class, integrated mixed-used mega development. The location is easily accessed by various modes of public transport including MTR (Kwun Tong Station), buses and public light buses. The project has a site area of 234,160 square feet and upon completion, it will provide residential plot ratio area of approximately 1,495,981 square feet in 1,999 units. The Group has 90% equity interest in the development right of the project, and the residential plot ratio area attributable to the Group is approximately 1,346,383 square feet. The construction of the superstructure is in progress. The development will be divided into two phases with Phase 1 having 1,025 residential units and Phase 2 having 974 units. It is expected that the Occupation Permit and the Certificate of Compliance for both phases will be obtained in the financial year 2020/2021. The Group will build and sell the residential units.

The retail area, government facilities and the public transport interchange will be developed by the Group and after completion, the retail area will be transferred to the URA whilst government facilities and the public transport interchange will be transferred to the HKSAR Government.

The pre-sale consents for both Phases 1 and 2 of Grand Central were issued in November 2018 and they were launched for sale in December 2018. To date, approximately 82% of the units have been sold. Total proceeds derived from the sales have reached HK$20.3 billion.

(rendering)

Mayfair By The Sea 8 (100% owned)

1 Fo Yin Road, Pak Shek Kok (East), New Territories, Hong Kong

The site of TPTL 228 was acquired at a government tender in July 2016. It has a site area of approximately 114,594 square feet and is designated for residential development. The project is next to the Hong Kong Science Park and is only a few minutes' walk from Mayfair By The Sea I and II, which have also been developed by the Group. Mayfair By The Sea 8

will provide approximately 412,530 square feet of residential plot ratio area in 528 units upon completion. Both the Occupation Permit and the Certificate of Compliance are expected to be obtained in the financial year 2020/2021. Pre-sale consent was obtained in January 2019. To date, approximately 87% of the units have been sold. Total proceeds derived from the sale have reached HK$4.2 billion.

20		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

The Fullerton Ocean Park Hotel Hong Kong (joint venture)

Tai Shue Wan, Hong Kong

In January 2017, the joint venture company, to which the Group has 60% equity interest, was awarded the development rights by the Ocean Park Corporation to build and manage a hotel located on the seafront between Po Chong Wan and Tai Shue Wan within the Ocean Park boundary. It is adjacent to the all-weather Water Park in Tai Shue Wan Development Project in the Ocean Park which is due to open in 2021. Upon completion, the project will provide approximately 436,700 square feet of plot ratio area and the total plot ratio area attributable to the Group is approximately 262,020 square feet. The hotel is estimated to open in 2021. The foundation works have been completed and the superstructure works are currently in progress. Named The Fullerton Ocean Park Hotel Hong Kong, the total number of guest rooms in the hotel is expected to be approximately 440.

AIL 462 (60% owned)

Yip Kan Street and Wong Chuk Hang Road, Wong Chuk Hang, Hong Kong

The commercial site of AIL 462 in Wong Chuk Hang was acquired from a government tender in October 2016. The site is in a few minutes' walk from Wong Chuk Hang Station, which is two stations from Admiralty Station. With the MTR South Island Line commenced operations in December 2016 connecting the Central to Southern part of Hong Kong Island, Wong Chuk Hang has become a desirable location for

corporations to set up offices and the area has been undergoing a transformation from a traditional industrial area into a hub of commercial, industrial and residential district, making it a diversified and interesting area for work, entertainment and living. The project has a site area of 18,996 square feet and is currently undergoing superstructure construction. Upon completion, the project will provide approximately 141,731 square feet of plot ratio area attributable to the Group, as well as the development of an Arts and Cultural Centre to be handed over to the HKSAR Government. With the total plot ratio area, approximately 87% will be designated for the development of office and the rest for retail. Both the Occupation Permit and the Certificate of Compliance for the project are expected to be obtained in the financial year 2021/2022.

KCTL 524 (100% owned)

Wing Kei Road, Kwai Chung, New Territories, Hong Kong

The Group acquired an industrial site in Kwai Chung at a government tender in May 2017. The site has an area of approximately 18,623 square feet. Upon completion, the project will provide a total of approximately 176,906 square feet of plot ratio area for industrial use, which allows different industries including media design and production, laboratory, inspection and testing centre, information technology and telecommunications industries and so forth. Both the Occupation Permit and Compliance Certificate for the project are expected to be obtained in the financial year 2021/2022. The project is under superstructure construction stage.

Annual Report 2020	Sino Land Company Limited		21

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

YLTL 532 (100% owned)

Junction of Wang Yip Street West and Hong Yip Street, Tung Tau Industrial Area, Yuen Long, New Territories, Hong Kong

The Group acquired the site in Yuen Long for commercial development from a government tender in December 2015. The site is approximately 99,524 square feet and is within walking distance from the MTR Long Ping Station. Upon completion, a total of approximately 497,601 square feet of plot ratio commercial area will be built, in which approximately 76% is designated for office use and the rest for retail use. The project is under superstructure construction stage. The Occupation Permit and the Certificate of Compliance for the project are expected to be obtained in the financial years 2021/2022 and 2022/2023 respectively.

Silversands (100% owned)

Whitehead, Ma On Shan, Sha Tin, New Territories, Hong Kong

The site was acquired at a government tender for residential development in July 2017. It has a site area of approximately 49,729 square feet. Upon completion, it will provide a total of approximately 119,351 square feet of attributable gross floor area in approximately 160 units. The Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial years 2021/2022 and 2022/2023 respectively. The superstructure of the project is currently in process.

(rendering)

St. George's Mansions (joint venture)

24A Kadoorie Avenue, Ho Man Tin, Kowloon, Hong Kong

The Group was awarded the development right to redevelop the previous head office site of CLP in Ho Man Tin in December 2017. The site of 61,941 square feet is in the heart of Kowloon with picturesque view of Kadoorie Hill. It is a true rarity, which commands one of the most sought-after locations in Hong Kong's legendary neighbourhood with rich history, traditions and a coveted school network. The Clock Tower building will be preserved for community use. The project will be developed into residential properties. Upon completion, the project will provide a total of 309,707 square feet of residential plot ratio area in approximately 175 residences. Subsequent to Financial Year, pre-sale consent was obtained in July 2020. The Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial years 2021/2022 and 2022/2023 respectively. The construction of the superstructure is in progress.

22		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

Lot no. 765 in demarcation district no. 332 (100% owned)

South Lantau Road, Cheung Sha, Lantau Island, New Territories, Hong Kong

The Group acquired a residential site in Cheung Sha, Lantau Island through a government tender in December 2018. Upon completion of the construction, the project will provide a total of approximately 11,582 square feet of residential plot ratio area. The Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial years 2021/2022 and 2022/2023 respectively. The project is under planning stage.

Grand Victoria (22.5% owned)

6 Lai Ying Street and 8 Lai Ying Street, South West Kowloon, Kowloon, Hong Kong

The development site of approximately 208,262 square feet was acquired at a government tender in November 2017. The plot commands a coveted urban waterfront location enjoying panoramic harbour views while having the West Kowloon Cultural District and Guangzhou - Shenzhen - Hong Kong Express Rail Link Terminus in the vicinity. It enjoys excellent connectivity with MTR stations and lines linking Central, airport, the Express Rail Link Terminus and all the commercial hubs in the city. Upon completion, the project will provide a total of approximately 987,812 square feet of residential plot ratio area in approximately 1,437 units. The

plot ratio area which is attributable to the Group is 222,258 square feet. Both the Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial year 2022/2023. The superstructure works are in progress.

AIL 467 (Site B) (joint venture)

Wong Chuk Hang Station Package Two Property Development, Aberdeen, Hong Kong

The joint venture company to which the Group has 50% equity interest was awarded the rights to develop a residential project atop of the MTR Wong Chuk Hang Depot from MTR Corporation Limited in December 2017. The project overlooks The Aberdeen Marina Club at Shum Wan with Singapore International School and the Ocean Park nearby. Upon completion, the project will provide a total of approximately 492,991 square feet of residential plot ratio area (246,496 square feet attributable to the Group) on the site with an area of approximately 92,269 square feet. It is expected that

a total of approximately 600 apartments will be built. The Occupation Permit and Consent to Assign for the project are expected to be obtained in the financial years 2022/2023 and 2023/2024 respectively. The construction of the superstructure is in progress.

KIL 11254 (joint venture)

Reclamation Street/Shantung Street, Mongkok, Kowloon, Hong Kong

The Group was awarded the development right of this residential project from the URA in December 2017. The project is located at the shopping area of Mongkok and is within walking distance from Mong Kok Station. The site area of the project is approximately 14,961 square feet. Upon completion, the project will provide approximately 112,200 square feet of residential plot ratio area in approximately 322 residential units. The plot ratio area attributable to the Group is 67,320 square feet. The Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial years 2022/2023. The project is under construction stage.

Annual Report 2020	Sino Land Company Limited		23

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

IL 9064 (joint venture)

Site A, Peel Street, Central, Hong Kong

The Group was awarded the right to develop Site A at Peel Street in Central at a tender from URA in March 2017. The project has a site area of approximately 9,607 square feet. Upon completion, the Group will build approximately 84,260 square feet of residential plot ratio area in approximately 121 residential units as well as retail area and a multi-purpose activities hall and a public open space. The retail area, the multi-purpose activities hall and the public open space will be handed over to the URA upon completion of the project. The Occupation Permit and the Certificate of Compliance for the project are expected to be obtained in the financial years 2022/2023 and 2023/2024 respectively. The project is under foundation work.

feet of residential plot ratio area in approximately 2,200 units. The development of the project is divided into two phases. The number of residential units for Phases 1 and 2 are 1,520 and 680 respectively. As the Group has 33.3% equity interest in the development right of the project, the total residential plot ratio area attributable to the Group is approximately 412,247 square feet.

The Occupation Permit and Consent to Assign for both Phase 1 and Phase 2 are expected to be obtained in the financial years 2022/2023 and 2023/2024 respectively. The project is currently under foundation works stage.

Site C2 of the Remaining Portion of Tseung Kwan O Town lot no. 70 (joint venture)

LOHAS Park Package Eleven Property Development, Tseung Kwan O, New Territories, Hong Kong

Lot no. 1040 in Demarcation District no. 103 (joint venture)

Kam Sheung Road Station Package One Property Development, Kam Ho Road and Tung Wui Road, New Territories, Hong Kong

In May 2017, the joint venture company to which the Group has 33.3% equity interest was awarded the development right by the MTR Corporation Limited to develop the residential property at the site adjacent to Kam Sheung Road Station. The Station is along the West Rail and between Tsuen Wan West and Yuen Long Stations. The site with a total area of approximately 448,719 square feet lies in between Kam Ho Road and Tung Wui Road. Upon completion, the site will provide a total of approximately 1,236,741 square

The Group was awarded the right to develop the residential project which is also known as LOHAS Park Package Eleven Property Development Project by MTR Corporation Limited in April 2019. The project has a site area of 177,359 square feet and is atop the retail mall, it will provide a total of approximately 956,468 square feet of residential plot ratio area in approximately

1,880 units. The Group has 40% equity interest in the project, the plot ratio area attributable to the Group will be 382,587 square feet. The project is under planning stage. It is expected that both the Occupation Permit and the Consent to Assign will be obtained in the financial year 2023/2024.

24		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Hong Kong (Continued)

NKIL 6602 (joint venture)

Yau Tong Ventilation Building Property Development, Ko Chiu Road, Yau Tong, Kowloon, Hong Kong

The joint venture company to which the Group has 80% equity interest was awarded the development rights to build a residential project over the Yau Tong Ventilation Building from MTR Corporation Limited in May 2018.

The site is approximately 8 minutes' walk from Yau Tong Station. The project commands one of the most coveted locations in a fast-growing, urban neighbourhood with amenities and high potential. Yau Tong Station is one of the only three MTR stations directly connected to Hong Kong Island, alongside Kowloon Station and Tsim Sha Tsui Station. There are well-established amenities in the vicinity, it is one stop from Quarry Bay Station on the Island Line and connects residents to all other major business hubs with the city's efficient transport network. The project has a site area of 43,379 square feet. Upon completion, the project will provide a total of approximately 325,342 square feet of residential plot ratio area in approximately 792 apartments. The plot ratio area which is attributable to the Group is 260,274 square feet. Both the Occupation Permit and Certificate of Compliance for the project are expected to be obtained in the financial year 2024/2025. The foundation works is currently in progress.

AIL 467 (Site D) (joint venture)

Wong Chuk Hang Station Package Four Property Development, Wong Chuk Hang, Aberdeen, Hong Kong

The joint venture company to which the Group has

25% equity interest was awarded the right to develop a residential project atop of the MTR Wong Chuk Hang Depot from MTRCL in October 2019. The project is a few minutes' walk from The Aberdeen Marina Club at Shum Wan, Singapore International School, Canadian International School and with Ocean Park nearby. Upon completion, the project will provide a total of approximately 638,305 square feet of residential plot ratio area (159,576 square feet attributable to the Group) on the site with an area of approximately 65,015 square feet. It is expected that a total of approximately 800 apartments will be built. The Occupation Permit and Consent to Assign for the project are expected

to be obtained in the financial years 2023/2024 and 2024/2025 respectively. The project is currently under the progress of foundation works.

Annual Report 2020	Sino Land Company Limited		25

Review of operations (Continued)

1. Highlights of the Group's major property developments (Continued) Development projects in Mainland China

Dynasty Park, Zhangzhou, Fujian Province, PRC (100% owned)

No. 298, Tengfei Road, Xiangcheng District, Zhangzhou, Fujian Province, PRC

The development site of Dynasty Park was acquired in 2005. Named Dynasty Park, the project has a total of approximately 4.4 million square feet of plot ratio area with 4.2 million square feet of residential area in approximately 3,856 units, the remaining commercial area and resident communal facilities.

In respect of sales, a total of 2,641 residential units, comprising 602 units in Phase I, 1,047 units in Phase

1. and 992 units of the total of 1,268 units in Phase III, have been launched for sale since September 2012 and to date, approximately 91% of these units launched have been sold. In respect of the progress of the construction, Phase I comprising residential plot ratio area of approximately 0.6 million square feet in 602 units and commercial plot ratio area of 25,919 square feet was completed in the financial year 2013/2014. Phase II comprising residential plot ratio area of approximately 1.3 million square feet in 1,047 units and commercial plot ratio area of 47,095 square feet was completed in the financial year 2017/2018. Phases III

and IV comprising approximately 2.2 million square feet of residential area in approximately 2,207 units and 93,502 square feet of commercial space are expected to be completed in phases in the next four years.

T102-0262 (50% owned)

Land Parcel 04, Unit 7, Qianwan Area, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Shenzhen, PRC

The Group acquired 50% equity interest in a development project in Qianhai, Shenzhen in May 2017. The project has a total site area of approximately 80,485 square feet. Upon completion, which is estimated to be in 2021, it will provide a total of approximately 495,144 square feet of plot ratio area of commercial area. The project will be developed into serviced apartments.

The Group has 50% equity interest in the project, the commercial plot ratio area which is attributable to the Group is approximately 247,572 square feet.

T102-0261 (30% owned)

Land Parcel 03, Unit 7, Qianwan Area, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Shenzhen, PRC

The Group acquired 30% equity interest in a commercial development project in Qianwan Area in Qianhai, Shenzhen in July 2019. The project is opposite to the site of T102-0262, Land Parcel 04, unit 7. It has a total site area of approximately 183,842 square feet. Upon completion of the project, the total plot ratio area will be 861,120 square feet. In terms of the breakdown of usage, approximately 90% of the total plot ratio area will be office and the remaining will be retail and public and transport facilities. The Group has 30% equity interest in the project, total attributable plot ratio area will be 258,336 square feet. The project is expected to be completed in 2024.

26		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(3) Highlights of the Group's major properties completed in recent years

Capital Tower (30% owned)

38 Wai Yip Street, Kowloon Bay, Kowloon, Hong Kong

This commercial site of 40,849 square feet was acquired at a government tender in May 2015. The project provides a total of approximately 490,134 square feet of commercial plot ratio area. As the Group has 30% equity interest in the project, the total plot ratio area attributable to the Group is approximately 147,040 square feet. Of the total plot ratio area, approximately 92% is designated for the development of office area and the rest for retail use. The pre-sale consent was issued in February 2018. The Occupation Permit for the project was issued in April 2019 whilst the Certificate of Compliance was obtained in June 2019. The project was launched for sale in the first quarter of 2018 and to date, approximately 50% of the floor area have been sold.

The Hillside (100% owned)

9 Sik On Street, Wan Chai, Hong Kong

The site of IL9049 at 9 Sik On Street in Wan Chai was acquired at a government tender in September 2013. It has a site area of approximately 2,239 square feet and is designed for residential purpose. The project is close to The Avenue Phases 1 and 2, which were also developed by the Group and it is only a few minutes' walk from the Wan Chai Station. The Occupation Permit for the project was obtained in August 2018 whilst the Certificate of Compliance was issued in January 2019. The project provides a total of approximately 11,195 square feet of residential plot ratio area in 22 residential units and it is for leasing purposes.

Commune Modern (100% owned)

28 Wo Fung Street, Luen Wo Hui, Fanling, New Territories, Hong Kong

The development site of 30,440 square feet was acquired at a government tender in September 2014. The project is next to Luen Wo Market and Grand Regentville, a residential-cum-commercial project developed by the Group. It can be accessed by the East Rail Line and the nearest station is Fanling Station. Built in 1951, Luen Wo Market was formerly a market developed by local people and it was a popular place where local people did shopping daily. The building of Luen Wo Market has a history of over half of a century. It was confirmed as a Grade III historic building by the Antiquities Advisory Board of the HKSAR Government in 2010.

The project provides a total of approximately 209,909 square feet of plot ratio area comprising approximately 135,891 square feet of residential area in approximately 296 units, approximately 34,497 square feet of commercial area and approximately 39,521 square feet of car parking spaces. The Occupation Permit for the project was obtained in July 2018 whilst the Certificate of Compliance was issued in November 2018. The project was launched for sale in June 2016. All of the units have been sold.

Annual Report 2020	Sino Land Company Limited		27

Review of operations (Continued)

(3) Highlights of the Group's major properties completed in recent years

(Continued)

Park Mediterranean (100% owned)

9 Hong Tsuen Road, Sai Kung, New Territories, Hong Kong

The development site of approximately 86,898 square feet was acquired at a government tender in November 2013. The project is within the vicinity of Sai Kung Outdoor Recreation Centre, the Lion Club's Nature Education Centre and Ma On Shan Country Park. The Occupation Permit for the project was obtained in October 2017 whilst the Certificate of Compliance was obtained in March 2018. The project provides a total of approximately 173,796 square feet of plot ratio area in 285 residential units. Park Mediterranean was launched for sale in July 2016, and all of the residential units have been sold. The project received a Merit in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

The Mediterranean (100% owned)

8 Tai Mong Tsai Road, Sai Kung, New Territories, Hong Kong

The development site of approximately 166,089 square feet was acquired at a government tender in January 2013 and is located in the centre of Sai Kung. Sai Kung, which is well known as the 'Rear Garden of Hong Kong', is surrounded by greenery, mountains and Geoparks. The project is a few minutes' walk from the seafront of Sai Kung Promenade, where public recreation facilities abound. The Occupation Permit for the project was obtained in October 2017 whilst the Certificate of Compliance was obtained in January 2018. The project provides a total of approximately 249,133 square feet of plot ratio area in 297 residential units. It was launched for sale in December 2015 and to date, over 96% of the units have been sold. The project received a Merit in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

28		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(3) Highlights of the Group's major properties completed in recent years

(Continued)

Mayfair By The Sea II (100% owned)

21 Fo Chun Road, Pak Shek Kok, Tai Po, New Territories, Hong Kong

The site was acquired at a government land auction in December 2009. The Occupation Permit and Certificate of Compliance for the project were issued in June and November 2015 respectively. The project affords a total of approximately 720,669 square feet of plot ratio area. Of this total plot ratio area, approximately 675,673 square feet are for residential purposes comprising 545 units and the remaining area of 44,996 square feet for commercial. The residential units were launched for sale in June 2014 and they were sold by phases. All of the residential units have been sold. The commercial area is for leasing purposes.

Mayfair By The Sea I (85% owned)

23 Fo Chun Road, Pak Shek Kok, Tai Po, New Territories, Hong Kong

The site was acquired at a government land auction in December 2009. The area is well known for various types of sports including water sports and cycling. The Occupation Permit and Certificate of Compliance for the project were issued in June and November 2015 respectively. The project affords a total of approximately 720,559 square feet of plot ratio area. Of this total plot ratio area, approximately 675,598 square feet are for residential purposes comprising 546 units and the remaining area of 44,960 square feet for commercial. The Group has 85% equity interest in the

project. Therefore, the plot ratio area attributable to the Group is approximately 612,475 square feet. The residential units were launched for sale in June 2014 and they were sold by phases. All of the residential units have been sold whilst the commercial area is for leasing purposes.

The Fullerton Heritage (100% owned)

Singapore

Embracing the important history and heritage of the conserved buildings in the heart of Singapore's Central Business District, and the prime location of the promenade along Marina Bay, the Group has developed and transformed the precinct into a major destination for hospitality, dining, retail and entertainment. The development has been named The Fullerton Heritage which comprises The Fullerton Hotel Singapore, The Fullerton Bay Hotel Singapore, One Fullerton, The Fullerton Waterboat House, Clifford Pier, Customs House and The Fullerton Pavilion. The Fullerton Heritage offers a memorable lifestyle experience for locals and tourists, it also promotes the conservation of heritage buildings in line with the Group's ongoing commitment to corporate social responsibility. Further information of One Fullerton, The Fullerton Waterboat House, The Fullerton Pavilion and Customs House can be found in Section (5) of this Review of Operations whilst descriptions of The Fullerton Hotel Singapore and The Fullerton Bay Hotel Singapore can be found in Section (6) of this Review of Operations.

The Fullerton Heritage (Singapore)

Annual Report 2020	Sino Land Company Limited		29

Review of operations (Continued)

(4) Major investment properties and hotels

The Group has 11.8 million square feet of investment properties and hotels as at 30th June, 2020.

The portfolio comprises properties of diversified usage:

Use	Floor area (square feet)	Percentage
Office/Retail	7,295,409	61.6%
Industrial	1,743,621	14.7%
Car parks	1,568,757	13.2%
Hotels	909,845	7.7%
Residential	330,010	2.8%
	11,847,642		100.0%

The Group's investment property portfolio showed an overall occupancy rate of 94.8% for the financial year 2019/2020. Including attributable share from associates and joint venture, the total gross rental revenue was HK$4,061.9 million.

Gross rental revenue for the years ended 30th June (including attributable share from associates and joint ventures)

HK$ million

4,500				4,240
			4,082	4,062
4,000	3,834	3,949
3,500
3,000
2,500
2,000
1,500
1,000
500
0	2016	2017	2018	2019	2020	Year

30		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(5) Highlights of investment properties

tmtplaza Phase I (100% owned)

1 Tuen Shun Street and 1 Tuen Shing Street, Tuen Mun, New Territories, Hong Kong

tmtplaza Phase I is one of the major retail mall and landmark in North-West New Territories. It provides approximately 1.1 million square feet of floor area. The mall offers a wide spectrum of business mix with over 300 shops and restaurants catering to a diverse customer base. A good transport network including the West Rail, the Light Rail System and buses as well as increasing number of residential developments in the region over the years are the major contributory factors to support a good shopper flow to the mall. Trade mix is reviewed and refreshed from time to time to cater to the evolving catchment. Thanks to a balanced trade mix combined with the Group's thematic promotional and marketing events, the customers shopping in the mall find it appealing. The Group will continue its efforts in providing a pleasant shopping environment for its customers. The occupancy rate of the mall was steady during the year under review.

Olympian City 1 and 2 (joint venture)

11 Hoi Fai Road and 18 Hoi Ting Road, Olympic Station, Kowloon, Hong Kong

Olympian City 1 and 2 combined offers in excess of 650,000 square feet of retail area and they are conveniently accessed by MTR and other public transport modes. These two malls are inter-connected and linked to Olympic Station by footbridges. The malls have become the landmarks in the region which are desirable for major events during holiday seasons or special occasions such as Christmas, New Year and international events. Olympian City 1 and 2, with its three levels of shops, an open piazza, variety of retail and a cinema, offer shoppers a wide range of entertainment and shopping options, and the opportunity to dine on a wide selection of cuisines. Both malls maintained high occupancy throughout the year under review.

Annual Report 2020	Sino Land Company Limited		31

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

Olympian City 3 (50% owned)

1 Hoi Wang Road, South West Kowloon, Hong Kong

Olympian City 3 is the shopping mall at the residence of The Hermitage and it is adjacent to Olympian City 2 and Central Park, which are also developed by the Group. The shopping mall has a total of approximately 118,000 square feet of retail area. It is also connected to Mongkok area by a covered footbridge, which enhances the accessibility of the mall and shoppers' flow. Extending the Olympian City 1 and 2 shopping malls, the entire Olympian City shopping mall is home to an attractive trade mix. The Group strives to develop its malls as favourite family destinations by providing a pleasant shopping environment and an exciting programme of special events and entertainment. The occupancy rate of Olympian City 3 stayed at high level during the year under review. The mall received a Merit award in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

Hong Kong Pacific Centre (100% owned)

28 Hankow Road, Tsim Sha Tsui, Kowloon, Hong Kong

Located in the centre of Tsim Sha Tsui's vibrant retail neighbourhood, this commercial development comprises

1. high-riseoffice tower and a shopping centre podium with a total area of 219,853 square feet. Most of the shops enjoy extensive street frontage with a heavy pedestrian flow at Hankow Road and from nearby Nathan Road. The building is only a few minutes' walk from Tsim Sha Tsui Station on the Tsuen Wan Line and also in proximity to the East Tsim Sha Tsui Station on the West Rail Line. The property was close to full occupancy during the year under review.

The Centrium (70% owned)

60 Wyndham Street, Central, Hong Kong

This Grade A commercial development is located near the Lan Kwai Fong and SoHo. It is known for its cosmopolitan lifestyle, entertainment and dining. It includes retail space that complements the lively atmosphere and popular restaurants nearby. The total floor area attributable to the Group is 183,650 square feet. The building maintained high occupancy during the year under review.

32		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

China Hong Kong City (25% owned)

33 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong China Hong Kong City is a development encompassing

1. retail mall, offices, a 673-room hotel named Royal Pacific Hotel, a public transport interchange as well as a ferry terminal, located on the waterfront of western Tsim Sha Tsui. The gold curtain wall cladding and China Ferry Terminal passenger facilities have led to its recognition as the 'Golden Gateway to China'. The commissioning of the Kowloon Southern Link railway line and the commencement of passenger service of Austin Station have enhanced the accessibility of the area. These factors have made China Hong Kong City a desirable property for businesses, shoppers, business travellers and tourists. Excluding the hotel, China Hong Kong City offers a total of over 1.2 million square feet of area of offices and retail, to which the Group has 25% equity interest. Therefore, the plot ratio area attributable to the Group is approximately 308,308 square feet.
   The occupancy rates of both office and retail were maintained at high levels during the year under review. China Hong Kong City received a Gold award in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

Tsim Sha Tsui Centre (45% owned)

Salisbury Road, Tsim Sha Tsui East, Kowloon, Hong Kong

Tsim Sha Tsui Centre is conveniently accessed by various transport options. A well-developed public transport network, which includes Tsim Sha Tsui Station on the Tsuen Wan Line, East Tsim Sha Tsui Station on the West Rail Line and the Tsim Sha Tsui East (Mody Road) bus terminus has helped increase shopper's flow in the area. Tsim Sha Tsui Centre has a total area of approximately 514,020 square feet. The Group has

45% equity interest, the floor area attributable to the Group is 231,309 square feet. Located on the seafront of Tsim Sha Tsui East overlooking panoramic views of Hong Kong Island, most of the tenants can enjoy the view of the Victoria Harbour and food and beverage tenants can provide alfresco dining experience. The mall attracts locals and overseas visitors. The occupancy of the property maintained at a high level during the year under review.

Annual Report 2020	Sino Land Company Limited		33

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

Skyline Tower (50% owned)

39 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong

The development is located next to the Kwun Tong Bypass and provides a total of approximately 824,406 square feet of commercial area with 412,203 square feet attributable to the Group. The building maintained high occupancy during the year under review. The HKSAR Government's plan to develop Kowloon East as new core business district with new transport infrastructure to support the development will be positive to the leasing market.

Citywalk (joint venture)

1 Yeung Uk Road, Tsuen Wan, New Territories, Hong Kong

Opened in January 2008, Citywalk is an award-winning and environmentally friendly shopping mall which offers approximately 245,000 square feet of retail area. The

development is located in the heart of Tsuen Wan, with footbridges connecting to Tsuen Wan Station of Mass Transit Railway Tsuen Wan Line and Tsuen Wan West Station on the West Rail as well as other developments. A landmark shopping attraction, Citywalk includes a piazza, a Vertical Garden, an optimal tenant mix, good floor layouts, ample car park facilities and high accessibility via public transport networks. The project has received a Platinum rating from the Hong Kong Building Environmental Assessment Method Society (HK-BEAM Society) for eleven distinctive green features and designs, which include the Vertical Garden, Citywalk Piazza, a hybrid water and air- cooled air-conditioning system and more. Comprehensive promotion and marketing programmes designed to attract both shoppers and tenants are carried out on a regular basis. The occupancy rate of Citywalk was maintained at high level during the year under review. Citywalk received a Gold award in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

Citywalk 2 (joint venture)

18 Yeung Uk Road, Tsuen Wan, New Territories

Citywalk 2 is a contemporary three-storey shopping mall with approximately 180,000 square feet of plot ratio area. Both Citywalk 2 and Citywalk are connected by a footbridge and offer customers and local residents a complete spectrum of dynamic shopping, dining and entertainment.

34		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

Futura Plaza (100% owned)

Central Plaza (10% owned)

18 Harbour Road, Wan Chai, Hong Kong

Central Plaza is one of the tallest buildings in Asia. It is a

78-storey smart Grade A office tower, with panoramic views of Victoria Harbour. The building has a total of approximately

1.4 million square feet of floor area with 140,000 square feet attributable to the Group. With Hong Kong Convention & Exhibition Centre connected with a footbridge and an extensive transport network on the doorstep, this office property has attracted many multinational corporations tenants and consulate-generals. Occupancy maintained at a high level during the year under review.

148 Electric Road (100% owned)

148 Electric Road, North Point, Hong Kong

This is a prime commercial development near Fortress Hill Station and the Cross-Harbour Tunnel. The development caters to a wide range of businesses and is within walking distance of international hotels. The project has an attributable area of 197,400 square feet. The project enjoyed good occupancy during the year under review.

111-113 How Ming Street, Kwun Tong, Hong Kong

This 26-storey building provides 225,396 square feet of plot ratio area, is only a few minutes' walk from Kwun Tong Station. The property has been converted from industrial use to office use. The project was completed in November 2001.

Kwun Tong has been going through a significant improvement in terms of its commercial and residential landscape. The Kwun Tong Town Centre Development project is the largest redevelopment initiative ever undertaken by the Urban Renewal Authority of Hong Kong. It comprises residential units, hotel, shopping mall, commercial buildings and a public transport interchange. Combining the HKSAR Government's development programme to enhance the infrastructure of Kowloon East, Kwun Tong, Kowloon Bay and the Old Kai Tak Airport will benefit from this world-class integrated mixed-used development.

Pacific Plaza (100% owned)

418 Des Voeux Road West, Hong Kong

Pacific Plaza is situated in the popular Western district near HKU Station and the Western Harbour Tunnel. The building provides approximately 137,414 square feet of office area and 30,185 square feet of shopping podium. The occupancy maintained at a high level during the year under review.

Annual Report 2020	Sino Land Company Limited		35

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

The Hennessy (100% owned)

256 Hennessy Road, Wan Chai, Hong Kong

The Hennessy is conveniently located in a vibrant business area near Wan Chai Station, a stone's throw from the Causeway Bay entertainment hub and only minutes from the Central Business District. The building has been designed with full-height windows offering panoramic Victoria Harbour views, a 4.8-metrefloor-to-floor height and flexible layout. The first three floors of retail space are encased in a 15-metre glass curtain providing excellent visibility from the street. The aptly named Sky Garden reaches a colossal 6-metrefloor-to-floor height. The rooftop floor, with its stunning panoramic views of the harbour and the city, offers a visually spectacular setting for alfresco dining. The building contains a total of 71,862 square feet of commercial area and the occupancy was maintained at high level during the year under review.

It is also next to the SoHo entertainment area, where upmarket restaurants, boutiques, café and shops abound. It can be accessed by the Central-Mid-levels escalators. The Occupation Permit for the project was obtained

in 2017. This project provides a total of approximately 37,629 square feet of plot ratio area comprising approximately 28,439 square feet of residential plot ratio area in 57 residential units and approximately 9,190 square feet of retail area. Named The Staunton, the project is held for lease.

Island Resort Mall (45% owned)

28 Siu Sai Wan Road, Siu Sai Wan, Hong Kong

With 189,190 square feet of retail area over three levels and supported by ample parking spaces, Island Resort Mall offers a good consumer choice. The ground floor comprises a public transport interchange. Served by different bus companies with more than 20 routes, it links popular locations across the city and helps increase shoppers' flow. The mall features fine retail shopping and the relaxed appeal of a spacious promenade with views of Victoria Harbour. The occupancy rate of the mall was satisfactory during the year under review.

The Staunton (100% owned)

22 Staunton Street, Central, Hong Kong

The development is situated at the heart of an area with a number of heritage establishments, including a section of the Dr. Sun Yat-sen Historical Trail, the Central Police Station Compound, Man Mo Temple, Wing Lee Street and the original site of the Central School in Hollywood Road.

Lee Tung Avenue (joint venture)

200 Queen's Road East, Wan Chai, Hong Kong Lee Tung Avenue features a 200-metretree-lined

36		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

Lee Tung Avenue (joint venture)(Continued)

pedestrianised boulevard connecting Johnston Road and Queen's Road East in Wan Chai. It is directly connected to Wan Chai Station with a dedicated subway. It was completed in April 2015 and opened in November

2015. It provides a total plot ratio area of approximately 87,720 square feet and houses approximately 50 tenants offering a wide spectrum of business mix including cafes, confectioneries, fine restaurants as well as international and home-grown brands. With

its history as a centre for printing and selling wedding cards and other wedding-related items before the redevelopment, public transport network, business surroundings in the area and creative marketing activities, Lee Tung Avenue has established itself as a popular place for all walks of life. The occupancy of Lee Tung Avenue stayed at a high level during the year under review. Lee Tung Avenue together with the residential part, named The Avenue, received a Merit in the Quality Building Award 2018 under the category of Hong Kong Residential (Multiple Buildings) as well as Gold award in the Best Landscape Award for Private Property Development 2018 by Leisure and Cultural Services Department of The Government of HKSAR.

District 4 in Mui Wo, Lantau Island, at a government tender in December 2011. The site has an area of 24,327 square feet and is located next to the Mui Wo section of the Nature Heritage Trail. The Occupation Permit for the project was issued in November 2015 whilst the Certificate of Compliance was obtained in July 2016. Named Riverwalk, the project provides a total of approximately 47,607 square feet of plot ratio area comprising 32,400 square feet of residential area in 50 units and 15,207 square feet of retail area. The project is held for lease and it enjoys close to full occupancy.

Paloma Bay (100% owned)

18 Peng Lei Road, Peng Chau, New Territories,

Hong Kong

	The site of Lot 676 in Demarcation District Peng Chau
	was acquired at a government tender in March 2012. It
	has a site area of 49,127 square feet and is designated
	for residential development. The Occupation Permit
	for the project was issued in June 2016 whilst the
	Certificate of Compliance was obtained in February
	2017. Named Paloma Bay, the project provides
	approximately 36,845 square feet of residential plot
	ratio area in 54 units. It is held for lease and enjoyed
Riverwalk (100% owned)	close to full occupancy during the year under review.
6 Ngan Kwong Wan Road, Mui Wo, Hong Kong
The Group acquired the site Lot 726 in Demarcation

Annual Report 2020	Sino Land Company Limited		37

Review of operations (Continued)

(5) Highlights of investment properties (Continued)

Mayfair Lane (100% owned)

21 Fo Chun Road, Tai Po, New Territories, Hong Kong

Located in Pak Shek Kok and a mere 5-minute drive from University Station, Mayfair Lane is an exquisite arcade providing a combination of lifestyle offerings and services for residents and the broader Pak Shek Kok neighbourhood. There are a Chinese Restaurant, a café, a beauty salon, a clinic, ATMs and a convenience store to the mix.

Coronation Circle (45% owned)

1 Yau Cheung Road, South West Kowloon, Hong Kong

Coronation Circle is the commercial part of the residential development named The Coronation. It is conveniently located in South West Kowloon, close to the West Kowloon terminus of the Express Rail Link which connects the railway systems in China and Hong Kong as well as Yau Ma Tei Station and Austin Station of the Mass Transit Railway. The mall has a total of 86,758 square feet of plot ratio area. As the Group has 45% equity interest in the project, the floor area attributable to the Group is approximately 39,041 square feet. It features fine retail shopping and quality education centres to serve the residents in the region.

Paloma Cove (100% owned)

8 Ho King Street, Peng Chau, New Territories, Hong Kong

The site of Lot 674 in Demarcation District Peng Chau was acquired through a government tender in September 2012. It has a site area of approximately 19,163 square feet. The Occupation Permit for the project was issued in December 2016 whilst the Certificate of Compliance was obtained in August 2017. Named Paloma Cove, the project provides a total of approximately 14,372 square feet of residential plot ratio area in 10 houses. Paloma Cove is held for lease and maintained high occupancy during the year under review.

One Fullerton (100% owned)

1 Fullerton Road, Singapore

Developed in 2001, the site is adjacent to Merlion Park across from The Fullerton Hotel Singapore. It has been developed into a modern two-storey building providing over 80,000 square feet of commercial area. Named One Fullerton, it houses some of Singapore's best restaurants, bars and entertainment concepts, from Michelin-star restaurants to chic cafes and fine-dining alfresco restaurants serving cuisines from around the globe, paired with panoramic views of the Marina Bay. One Fullerton is connected with The Fullerton Hotel Singapore by an underpass. It is also a well-placed vantage point for the Formula One Grand Prix circuit in Singapore.

38		Sino Land Company Limited	Annual Report 2020

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(5) Highlights of investment properties (Continued)

Customs House (100% owned)

70 Collyer Quay, Singapore

Customs House, also part of The Fullerton Heritage, is a two-storey heritage building with a total floor area of approximately 14,800 square feet. It is located in Marina Bay, Singapore's Central Business District, arts, culture, and heritage waterfront area. Built in the '60s, Customs House was formerly home to the Customs Police. The building commands direct waterfront views of Marina Bay, and is now a dining destination with several chic restaurants. The project was completed in February 2010.

The Fullerton Waterboat House (100% owned)

3 Fullerton Road, Singapore

The Fullerton Waterboat House is a historic landmark that was formerly a dockyard where vessels refilled potable water. It was built in the 1940s and acquired by the Group in May 2002. The property has a total of 21,743 square feet of area.

The Fullerton Pavilion (100% owned)

82 Collyer Quay, Singapore

An addition to The Fullerton Heritage that was completed in May 2012, The Fullerton Pavilion is a first-of-its-kind floating, dome-shaped pod set on the waters of Marina Bay between One Fullerton and Clifford Pier. It features views of the bay, and the internal area of close to 4,500 square feet is leased to a leading restaurant.

Sino International Plaza, Fuzhou, PRC (100% owned)

137 Wusi Road, Fuzhou, PRC

Sino International Plaza is located in the central business district of Fuzhou city, the capital city of Fujian Province. Conveniently accessible through an extensive transport network, the development is in a desirable location for local and multinational firms. A number of local attractions, namely West Lake Park and Fujian Museum are also within the catchment area. The development, which provides approximately 493,177 square feet of commercial area, features environmentally friendly architectural characteristics. The project achieved high occupancy during the year under review.

Raffles City Shanghai (22.4% owned)

Plot 105 A & B, 228 Xizang Road Central, Huangpu District, Shanghai, PRC

Jointly developed by several international property developers, this commercial building comprising prime office tower and a shopping mall is located in the central business area of Huangpu District and surrounded by boutique shops that attract heavy pedestrian flows. The project was completed in October 2003, yielding a total of approximately

1.3 million square feet of floor area with approximately 0.3 million square feet attributable to the Group. The building enjoyed high occupancy during the year under review.

Annual Report 2020	Sino Land Company Limited		39

Review of operations (Continued)

(6) Hotels

The Fullerton Hotel Singapore (100% owned)

1 Fullerton Square, Singapore

Characterised by its unique heritage architecture with distinguished Doric columns and monumental porte cocheres, the Fullerton Building, unveiled in 1928, represents the pinnacle of Palladian architecture in Singapore. The Fullerton Building underwent a major makeover and was transformed into a prestigious,

5-star hotel with 400 guest rooms and suites. Named The Fullerton Hotel Singapore, it officially opened on 1st January, 2001.

The former Fullerton Building, which houses The Fullerton Hotel Singapore, was gazetted as Singapore's 71st National Monument on 7th December, 2015, signifying the highest form of preservation and national recognition, serving as a timely reflection on the trail history had left on Singapore's landscape. Located

by the scenic Marina Bay, the hotel is well situated in the heart of the Singapore's Financial and Business District. The hotel is linked by an underpass to adjacent commercial developments, namely One Fullerton, Clifford Pier, The Fullerton Bay Hotel Singapore,

Customs House, The Fullerton Pavilion and offices. With its prime location and comprehensive facilities including a spa, the hotel is ideal for both business and leisure travellers.

The Fullerton Hotel Singapore received a number of awards from respected organisations and magazines in recognition of its standards of service during the financial year 2019/2020. These awards included

1. Travel +l Leisure World's Best Awards 2020, (ii) American Chamber of Commerce CARES Awards - Distinction (2020), (iii) Travvy Awards (2020) - Best Luxury Hotel/Resort - Asia (Gold), (iv) Travvy Awards (2020) - Best Individual Hotel - Overall (Silver), (v) Expat Living Reader's Choice Awards (2020) - Best Hotel for Business in Singapore, (vi) Harper's Bazaar Spa Awards (2020) - The Fullerton Spa Best Cleansing Facial & Best Relaxing Massage, (vii) DestinAsian Magazine 15th Readers' Choice Awards for Top 10 Best Hotels and Resorts in Singapore and (viii) Expat Living Readers' Choice Awards for Best Hotel for Business in Singapore and (ix) Tripadvisor Travelers' Choice Awards 2020 for Best Hotels in Singapore.

The hotel has previously received a number of awards in recognition of its quality of service as well as its architectural design and interior concepts. These awards included Awards of Excellence by Urban Land Institute (2004), FIABCI Prix d'Excellence under the Leisure Category Winner (2003), Urban Redevelopment Authority Architectural Heritage Award 2001 and The Singapore Institute of Architects Architectural Design Award 2001 (Conservation Category).

40		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

1. Hotels (Continued)

The Fullerton Bay Hotel Singapore (100% owned)

80 Collyer Quay, Singapore

Completed in July 2010, The Fullerton Bay Hotel Singapore is exclusively built on the waters of Marina Bay - Singapore's latest focal destination for both business and leisure. At its prime waterfront location, the Central Business District, the new Marina Bay Financial District and key attractions like the Merlion Park, Gardens by the Bay, Esplanade-Theatres on the Bay, Boat Quay and the Singapore Flyer are all located within close proximity. The hotel features attractive architecture and sophisticated décor that combine contemporary style and Singapore's illustrious seafaring history. Each of its 100 guest rooms further impresses with panoramic views of the vibrant Singapore skyline through full-length windows and private balconies or sundecks. Overlooking the city's landmarks from the privacy of the guestroom, guests are treated to natural light and a sense of destination. The hotel's culinary experiences include the signature restaurants such as The Landing Point, La Brasserie and Lantern. The Art

Deco-inspired Clifford Pier is named after Sir Hugh Charles Clifford, Governor of the Straits Settlements (1927 to 1929). The pier was first opened on 3rd June, 1933. It is defined by its notable architecture as a quintessential column-free Victorian wrought-iron pier.

Clifford Pier is a celebrated historic landmark and was the first port of call for visitors and immigrants arriving by ships in the early days of Singapore. A part of The Fullerton Heritage, it was opened in December 2008. The revitalised pier has kept its original architectural characteristics and charm, and it commands the panorama of the Marina Bay developments. The pier affords over 10,000 square feet of commercial space. It is now operating as an event venue space under The Fullerton Bay Hotel Singapore and has been named The Clifford Pier in honour of the landmark's legacy. The Clifford Pier received the Her World Brides Venue Awards (2018).

Set amidst the skyline of the Marina Bay waterfront, La Brasserie is illuminated by 33-footfloor-to-ceiling windows overlooking the sparkling waters of the bay. Furnished with layers of theatrical salons and with splendid views of Marina Bay, La Brasserie provides fine French dining by the bay with personalised services.

The Landing Point is positioned alongside an indoor promenade paved in bespoke marble mosaics. With a

43-foot bar and spacious outdoor terrace, The Landing Point is designed to attract the sophisticated chic. Lantern is a stylish rooftop bar, surrounding the hotel's 82-foot rooftop swimming pool, where guests can enjoy sweeping views of the Marina Bay waterfront and the Singapore skyline.

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Review of operations (Continued)

1. Hotels (Continued)

The Fullerton Bay Hotel Singapore (100% owned)(Continued)

The Fullerton Bay Hotel Singapore received a number of awards from respected organisations and magazines in recognition of its standards of service during the financial year 2019/2020. These awards included

1. Travel + Leisure India Editors' Choice Awards for Best BLeisure (Business and Leisure Hotel), (ii) DestinAsian Magazine 15th Readers' Choice Awards
   - Best Boutique Hotel in Asia Pacific, (iii) America Chamber of Commerce CARES Awards - Distinction (2020), (iv) Wine Spectator Award of Excellence for La Brasserie, (v) Business Traveller Asia-Pacific Awards 2019 for Best Independent Hotel in Asia-Pacific, (vi) Forbes Travel Guide Awards, Five-star Hotel and (vii) Tripadvisor Travelers' Choice Awards 2020 for Best Hotels in Singapore.

is managed by a renowned international hospitality - Hilton. With its strategic location and high standard of service, Conrad Hong Kong has been placed among the most favoured hotels in the region.

In recognition of its professional service and warm hospitality demonstrated, the Hotel and its restaurants received a number of awards from respected titles and international magazines during the financial year 2019/2020. Major awards include (i) DestinAsian Readers' Choice Award 2019 - Top 10 Hotels in Hong Kong, (ii) 2020 Forbes Travel Guide Four-Star Award,

1. Travel + Leisure World's Best Award 2020 - Top 5 City Hotels in Hong Kong, (iv) Hong Kong Tatler Dining Best Restaurants 2020 - Golden Leaf, Brasserie on The Eighth; (v) South China Morning Post 100 Tops Tables 2020 - Nicholini's; and (vi) Certificate of Excellence of 2019 by TripAdvisor.

The Hotel also initiated myriads of community projects for the well-being and sustainability of guests, team members, communities and the environment. These projects encompass recycling of used soap, food trimmings and food donation with Foodlink Foundation; and 'Travel With Purpose' philosophy which constantly advocates the social and environmental impacts of our business.

Conrad Hong Kong (30% owned)

Pacific Place, 88 Queensway, Hong Kong

The flagship hotel is located atop a major shopping and entertainment complex on Hong Kong Island and

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Review of operations (Continued)

1. Hotels (Continued)

The Fullerton Hotel Sydney (50% owned)

1 Martin Place, Sydney, New South Wales 2000, Australia

The Group acquired The Westin Sydney in July 2015. The Group rebranded The Westin Sydney as The Fullerton Hotel Sydney, which was officially opened on 18th October, 2019. Located in the heart of Sydney's fashion and financial district, The Fullerton Hotel Sydney is a 5-star luxury hotel with 416 guest rooms and extensive conferencing facilities. The property is complemented by a large prime retail podium with its unparalleled location fronting Martin Place, George and Pitt Streets. With part of the redevelopment

of Sydney's historic General Post Office on Martin Place, The Fullerton Hotel Sydney is surrounded by Sydney's most exclusive designer shopping, fine restaurants and theatres, and is close to much-loved attractions such as Darling Harbour, the Sydney Opera House and the Sydney Harbour Bridge. The Fullerton Hotel Sydney received a number of awards from respected organisations and magazines in recognition of its standards of service during the financial year 2019/2020. These awards included (i) Trip Advisor

- Certificate of Excellence 2020 and (ii) I Prefer - Members' Choice Award 2020.

The Olympian Hong Kong (100% owned)

18 Hoi Fai Road, West Kowloon, Hong Kong

The Olympian Hong Kong hotel is situated on the waterfront of West Kowloon and only a few minutes' walk from Olympian City. With approximately 43,759 square feet of plot ratio area, the hotel provides 32 guest rooms and suites which range from 463-square-foot Deluxe Olympian Room to 807-square-foot Olympian Suite, a private lounge and a 24-hour gymnasium. All guest rooms feature 10.8-foot ceiling height and floor-to-ceiling windows to maximise the view over Victoria Harbour or Hong Kong's skyline. It commenced operations in March 2016. The hotel has received accolades namely (i) Certificate of Excellence 2017 - 2019 by TripAdvisor, (ii) Loved by Guests Award 2020 Winner by Hotels.com, (iii) Best Bespoke Luxury Boutique Hotel 2018 (Hong Kong) & LUX Guest Services Gold Standard Award 2018 by LUX Magazine's Hotel & Spa Awards, (iv) Asia's Best City Explorer Award 2018 by Boutique Hotel Awards, (v) Recommended Hotel in Louis Vuitton City Guide Hong Kong 2017-2020, (vi) Certified Quality Wedding Merchant 2019-2020 and (v) 'Caring Company Logo 2019/20' by The Hong Kong Council of Social Service.

Annual Report 2020	Sino Land Company Limited		43

Review of operations (Continued)

(7) Corporate affairs

The Group affirms its commitment to maintaining a high degree of corporate transparency and communicating regularly with banks, research analysts and investors. The Corporate Finance Department disseminates information about the Group's latest developments through various channels, including meetings with investors, fund managers and analysts, investor conferences, site visits, results briefings and the www.sino.com website. During the financial year 2019/2020, the Group participated in a total of 6 investor conferences and 4 non-deal roadshows reaching out to fund managers and investment advisors based in the cities, namely Hong Kong, New York, London, Singapore, Beijing and Shanghai. In addition to the meetings in the investor conferences, we had approximately 30 individual one-on-one or group meetings with investors and property analysts.

During the financial year, the Group received the 'Corporate Governance Asia 9th Asian Excellence Awards 2019' from Corporate Governance Asia magazine.

Sino Land is one of the constituent stocks of the Hang Seng Composite Index, the Hang Seng Corporate Sustainability Index and the Hang Seng ESG 50 Index.

Sino Club was established in July 1997 to enhance communication between the Group and its customers and promote customer loyalty. Sino Club communicates regularly with members through newsletters, websites and email. The Group has launched a brand new digital experience in May, 2020 including a new web-site and mobile app experience.

Sino Club members are offered a wide range of shopping and hospitality incentives from the Group and Group-related malls and hotels both in Hong Kong and Singapore, which include exclusive home purchase privileges. They are also invited to priority previews of show flats and enjoy activities arranged exclusively for them. As the Group markets more residential units and commercial space, Sino Club will see further increases in membership.

Sino Land Company Limited was honoured at the 9th Asian Excellence Award in recognition of its commitment to upholding corporate governance, sustainability and investor relations, namely 'Best Environmental Responsibility', 'Best Investor Relations Company' and 'Asia's Best CFO (Investor Relations)'.

44		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(8) Employee programmes

As at 30th June, 2020, the Group employed approximately 6,500 full-time employees.

In line with the Group's mission of being the "Preferred Choice for Customers, Investors and Employees", we have established policies and offered a wide range of programmes to ensure that employees are provided with opportunities for growth and a rewarding career. The Group seeks to retain talents through competitive remuneration packages, pay for performance reward schemes, together with a caring, respectful and supportive work environment. Employee engagement and development are always placed on top of the corporate agenda.

Employee engagement

The Group strongly believes that employee engagement is critical to organisational success and therefore

1. high priority is placed to ensure that two-way open communications between management and employees at all levels are established. Different forms of communication channels such as "Corporate Town Hall Meeting", "Mini-Town Hall Meeting", "On-site Staff Communication Meeting", regular site visits and company newsletters have been deployed to promote open communication and listen to the views of our employees.

The Group's staff app "InSino" was launched in December 2019. Symbolising "integration", "interaction" and "innovation", it aims to strengthen communication and collaboration within the Group and create better employee experience, as well as to facilitate more new ideas to drive growth as we work towards our goals.

131 innovative ideas were received from colleagues through the Sinovation programme

To cultivate an innovative culture, enhance work efficiency and drive quality improvement, the Group launched a new "Sinovation" programme in 2019 to engage employees in creating and implementing innovation ideas and business solutions. A total of 131 innovative ideas were collected. 9 employees, with their outstanding ideas, entered the "Learn & Grow" stage and further developed their ideas into prototypes. 4 innovation projects were eventually selected to be implemented in different business units in 2020.

In recognition of the continuous commitment in implementing innovative programmes for employees to achieve work-life balance and foster employee satisfaction, the Group was honoured with the "Excellence in Employee Work-Life Balance" Silver Award in HR Distinction Awards 2019 by HR Magazine. Besides, the Group was also awarded the "Happy Company" for 5 consecutive years by Hong Kong Productivity Council in recognition of its continuous efforts in introducing family caring initiatives and commitment in building a happy workplace culture.

Annual Report 2020	Sino Land Company Limited		45

Review of operations (Continued)

(8) Employee programmes (Continued)

Employee engagement (Continued)

As a caring employer, the Group re-designed a comprehensive Employee Wellness Programme to promote health and well-being among employees in 2020. Expanded and fully updated, it consists of a variety of initiatives spanning across 4 themes - physical health, mental health, family relationship and happy at work. All activities aim to help employees live healthier and happier, both at work and at home. Major contents of the Programme include recreational activities, interest classes, outdoor activities, family- friendly activities and socialising gatherings. Employees can also enjoy fun activities, welfare facilities and spend quality time with their family and friends at the holiday flat/house provided by the Group. Activities held during the financial year 2019/2020 were well-received with participant attendance figure over 4,000.

The Group also implemented family-friendly practices such as birthday laisee, birthday leave, parental leave, employee children education scholarship and bursary, financial assistance for special need education, textbook subsidy and employee children summer internship programme to extend our care and support to family members of our employees.

Employee learning and development

The Group fosters a continuous learning culture and provides comprehensive training and development programmes to meet employees' training and career development needs. The Group also sets aside budget for external education and training sponsorship to support employees' career development.

During financial year 2019/2020, approximately 106,000 training hours were provided to employees within the Group. Training focused on customer service quality, as well as enhancing awareness of innovation and digitalisation.

The Group's well-established training "Academies" aim to help employees develop functional and professional expertise and provide quality customer service. The "Academies" offer comprehensive training with more than 120 courses covering customer service, property management, leasing operation, building maintenance, security service, clubhouse management, environmental conservation, cleaning services, and car park operation.

The Group is committed to creating a happy and engaging workplace for employees.

It is the Group's policy that all employees, in particular those in frontline positions, must uphold meticulous standards of customer service. The Group continues to channel effort into enhancing customer service standards through training. "Star Service" training was revamped to "Star Service+" training. Launched in June 2020, "Star Service+" delivers to employees refreshed service concepts in a more effective manner.

46		Sino Land Company Limited	Annual Report 2020

(8) Employee programmes (Continued)

Employee learning and development

(Continued)

To enhance the effectiveness of training delivery across multiple locations of property sites and offices, e-learning programmes have been implemented in January 2020 in addition to conventional classroom training, allowing employees to acquire and deploy the latest industry practice more effectively. Online programmes further improves employees' learning experience by making the mode of learning more accessible, flexible and interactive, within a systematic and structured framework.

Leadership and management development

Executive and leadership development programmes were organised regularly. Apart from existing training curriculum to strengthen middle to senior managers' leadership competency aligning with company's operation focus and direction, senior leaders are sponsored to join various reputable external courses to broaden their business and leadership perspective. Leadership development programmes are designed to support development of specific groups. Experts from different fields and professions were invited to give seminars and management talks to our executives sharing current market trends and business insights.

Review of operations (Continued)

The Group has organised a two-day experience tour to the Greater Bay Area for 35 young colleagues to enhance understanding of the area.

Talent management

The Group has taken considerable steps to strengthen its leadership pipeline to support the continuous business development in Hong Kong and Mainland China. In addition to recruiting top-tier graduates from local universities to join our Corporate Management Trainee Programme and Engineer Trainee Programme, the Group has expanded the talent base by encouraging graduates from prestigious Mainland China and overseas universities to join the Group's Corporate Management Trainee Programme. The Group also collaborates with renowned universities such as Tsinghua University, Yale University and Columbia University and other education institutions to sponsor students for internship in our company.

Annual Report 2020	Sino Land Company Limited		47

Review of operations (Continued)

(9) Sino Property Services

The Group's fully integrated property management service is provided by Sino Property Services (SPS) which consists of four companies, namely Sino Estates Management Limited (SEML), Sino Security Services Limited (SSSL), Best Result Environmental Services Limited (BRESL) and Sino Parking Services Limited (SPSL). Each of these companies has its own functions. SPS is set up to complement the Group's property development and investment businesses. SPS currently manages 193 projects with an aggregate floor area of 54.9 million square feet.

Property management service

By providing property management services, the Group not only manages property assets, but also gains an opportunity to better serve customers, tenants and residents. SPS is an important channel that allows the Group to communicate with customers and receive feedback from them. This two-way communication channel spans daily observations, feedback from various sources, daily personal contact, regular inspections, mystery shopper reports and customer satisfaction surveys. From this, continual operational improvements can be made to bridge the gap between the Group's offerings and customer expectations. Delivering high-quality customer services is one of the Group's key business objectives. To achieve this objective, a quality recruitment process has been developed to select the right candidate for the right career. The Group cultivates a working environment that builds the sense of belonging and enables employees to work efficiently. Other initiatives that allow the Group to serve customers better include formal in-house training to enable staff to update and strengthen their skill set, a mentoring and coaching programme, efficient internal communications to ensure messages and experience sharing reaches all staff levels, and building a culture of teamwork and performance driven attitudes. Regular and thorough hardware checks are a must for effective property management and maintenance. Monitoring the maintenance process undertaken by contractors and staff, efficient supply chain processes,

efficient time management, effective process control and keeping close track of maintenance history are important to ensure the smooth running of daily operations and to optimise efficiency. SPS will continue to proactively make improvements in its quality of service with the aim to enhance both customer satisfaction and the value of the Group's properties.

Sino Estates Management Limited was honoured at the Excellence in Facility Management Award 10th Anniversary organised by the Hong Kong Institute of Facility Management with 44 properties being awarded. Citywalk received the EFMA 10th Anniversary Honorary Award.

Our efforts in quality services are recognised by the public. In recognition of our continuous improvement and innovation in customer services, Vision City won the Grand Award (Medium-Scale Residential) whereas Citywalk 2 and The Johnston received the Gold Awards (Theme Award 2019 - Asset Enhancement) at the Excellence in Facility Management Award (EFMA) 10th Anniversary organised by The Hong Kong Institute of Facility Management. Citywalk was conferred the EFMA 10th Anniversary Honorary Award, the Award is to recognise one of the past Grand Awardees demonstrating continuous upgrading

in service quality. 32 projects including The Johnston, The Staunton, Clifford Centre, Hong Kong Pacific Centre, Marina House, One Capital Place, Pacific Plaza, Sino Plaza, Skyline Tower, The Centrium, The Hennessy, Hong Kong Gold Coast, Grand Palisades, Mayfair by the Sea I & II, One SilverSea, Pacific Palisades, The Avenue, The Coronation,

48		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(9) Sino Property Services (Continued)

Property management service (Continued)

The Hermitage, Bowen's Lookout, Paloma Bay, Park Metropolitan, Park Summit, The Camphora, The Humphreys, Three Bays, China Hong Kong City, Citywalk, Citywalk 2, Olympian City 2, Tsim Sha Tsui Centre, Waterside Plaza Shopping Arcade won the Excellence Awards at the same competition in various categories. In addition, 11 projects including Pan Asia Centre, Parklane Centre, Sunley Centre, 148 Electric Road, Far East Finance Centre, Golden Centre, Oceania Heights, Golden Plaza, Island Resort Mall, Tuen Mun Town Plaza Phase 1 (Shopping Arcade), Tuen Mun Town Plaza Phase 2 (Shopping Arcade) received Merit Awards whereas 2 projects including The Johnston (Silver Award) and 148 Electric Road (Bronze Award) won the FM People Awards at the same competition in various categories. Olympian City received the Customer Service Award at the 2019 Hong Kong Awards for Industries: Customer Service organised by Hong Kong Retail Management Association.

Olympian City received the Customer Service Award at the 2019 Hong Kong Awards for Industries: Customer Service (HKIA: CS) organised by Hong Kong Retail Management Association.

During the reporting period, 26 managed properties and 361 security guards won a total of 387 awards from the Hong Kong Police Force's various Regional Crime Prevention Offices and District Fight Crime

Committees in recognising our quality security services and outstanding performance in crime prevention

as well as outstanding property and car parks management.

SPS's continuous involvement in Corporate Social Responsibilities (CSR) has also been recognised by the industry. Tuen Mun Town Plaza Phase 1 (Shopping Arcade) won the Merit Award for Inclusive Environment and The Hennessy received Progressive Award at the 2019 Inclusive Environment Recognition Scheme jointly organised by The Hong Kong Joint Council for People with Disabilities and The Hong Kong Council of Social Service. Under the Caring Company Scheme by The Hong Kong Council of Social Service, SEML achieved the 15 Years Plus Caring Company Logo while SSSL, SPSL, BRESL, China Hong Kong City, Tuen Mun Town Plaza (Shopping Arcade), Regentville Shopping Mall, Avon Mall received the 10 Years Plus Caring Company Logo. Citywalk, Citywalk 2, Gold Coast Piazza, Island Resort Mall, Olympian City were given the 5 Years Plus Caring Company Logo. The Waterside Shopping Arcade and Skyline Tower also received the Caring Company Logo 2019/20. SPS is committed in creating a happy working environment for staff. During the reporting period, SEML, SSSL, SPSL, BRESL and 3 managed properties received Happy Company 5 Years Plus Label whereas 89 managed properties received the Happy Company Label under the 2020 Happiness-at- Work Promotional Scheme initiated by the Promoting Happiness Index Foundation. SPSL won the Bronze Award (Enterprise) and Vision City received Merit Award (Volunteer Team) while BRESL and 10 managed properties received Corporate Citizenship Logo at The 10th Hong Kong Outstanding Corporate Citizenship Awards organised by Hong Kong Productivity Council. With continuous efforts in improving service quality

as well as enhancing the efficiency of work process, SEML, SSSL, SPSL and BRESL received different certifications, including ISO9001 (Quality), ISO14001 (Environmental), ISO10002 (Complaints Handling) and OHSAS18001/ISO45001 (Occupational Health and Safety) Management Systems Certifications as well as Hygiene Control System Certification.

Annual Report 2020	Sino Land Company Limited		49

Review of operations (Continued)

(9) Sino Property Services (Continued)

Over 30 colleagues attended the 2019 Apprentice Sharing Session held		Graduates from the Sino Green Academy
on 13 December 2019 with current apprentices and masters sharing
their work experience and know-how.

Training

Property management is a human capital intensive business. Employees are the Group's most important assets. Managing and maintaining a portfolio of properties requires stringent regular controls, close communications, an efficient internal operation workflow system and an effective internal database. All these are executed by human interaction. Training and good communication systems are vital to ensure staff can deliver the required standards of service, adapt to the latest changes

in the working environment, and upgrade their skill set, productivity and efficiency. Training and good communications also encourage staff to raise their value and increase their contributions to the Group, enhance job satisfaction and help ensure staff mindsets, attitudes and skill sets aligned with the interests of the Group. These all contribute to a knowledge-based management.

SPS has 11 academies designed to meet customer needs and expectations. Property management focused academies are Sino Property Management Academy, Sino Maintenance Academy, Sino Security Academy, Sino Cleaning Academy, Sino Carpark Academy, Sino Safety Academy and Sino Clubhouse Academy. Service focused academies are Sino Star Service Academy and Sino Language Academy. Sino Green Academy and Sino Landscape Academy are formed to promote green living. These academies aim at enhancing knowledge, skill and attitude for all our employees, ranging from professional property managers to frontline cleaners and security guards. Three Module Certificate Courses of SPS Academies have been recognised by the Government's Qualifications Framework: Supervisory Skills for Property Management (Level 3), Star Service (Level 2) and Clubhouse Management (Level 2). In recognition of our commitment in providing quality security services training, SSSL was granted 9 Gold Awards in the category of Licensed Security Company

• Type 1 while SPSL also received 2 Gold Awards in the same category at the 2019 Security Services Best Training Award jointly organised by the Vocational Training Council and the Hong Kong Police Force Crime Prevention Bureau.

50		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(9) Sino Property Services (Continued)

Argyle Centre Phase I and Kwun Tong Harbour Plaza, managed by Sino Estates Management Limited, received Silver Award (Safety Culture Award) and Merit Award (Best Safety Enhancement Programme) respectively at the 7th Best Property Safety Management Award.

Safety management

Establishing and maintaining a safe working environment is of paramount importance for SPS to increase productivity and efficiency. As a socially responsible corporation, SPS reviews and analyses working procedures and operations from time to time with the objective of maintaining a safe workplace. Safety precaution measures are also implemented for events and activities held in the premises where SPS manages. In addition to procedures and measures, training is also important for staff to build their mindsets and habits to pursue safety standards. SPS has been recognised and authorised by the Labour Department to run the Mandatory Basic Safety Training Courses (Construction Work) "Green Card" and the Safety Training Course for Competent Persons of Confined Spaces Operation and endorse related professional qualifications for the staff that have completed the courses. Since 2008, 6,263 staff members have completed the Green Card Training Course and 620 staff members have completed the Safety Training Course for Competent Persons of Confined Spaces Operation.

SPS's commitment to providing a safe working and living environment to employees, customers and other stakeholders is also well recognised. At the 7th Best Property Safety Management Award, Argyle Centre Phase I won the Silver Award - Safety Culture Award and Kwun Tong Harbour Plaza received Merit Award - Best Safety Enhancement Programme in Occupational Safety and Health. Sino Plaza achieved Bronze Award - Safety Culture Award and four performance awards, including Silver Award (Best Performance Award), Silver Award (Best Screenplay/Best Content Award), Bronze Award (Best Visual Effects Award) and Bronze Award (Best Performer Award) while Citywalk and The Avenue received Safety Performance Award at the 18th Hong Kong Occupational Safety and Health Award. The Avenue received the Bronze Award - Good Housekeeping Plan (Other Industries) and Bronze Award - Best Presentation Award at the Good Housekeeping Competition 2019. All these awards were organised by the Occupational Safety and Health Council. SEML - Hong Kong Island District (WOB) Team won the 1st Runner-up - Occupational Safety and Health Council Shield in the Union/Organisation Category at the Safety Quiz 2019 jointly organised by the Occupational Safety and Health Council and Labour Department. BRESL

won the Grand Award (Joyful@Healthy Workplace Best Practices Award - Enterprise/Organisation Category) and the Excellence Award (Prevention of Pneumoconiosis Best Practices Award) at the Occupational Health Award 2019-

20. The Avenue also received the Outstanding Award (Joyful@Health Workplace Best Practices Award - Branch/ SME Category) at the same competition.

Annual Report 2020	Sino Land Company Limited		51

Review of operations (Continued)

(9) Sino Property Services (Continued)

Environmental protection

SPS recognises its role in promoting environmental protection. SPS team participates in the group's integrated green project "Farm Together". The rooftop gardens of Skyline Tower and 148 Electric Road were transformed into urban farms, providing venues for stakeholders to experience the joy and benefits of urban farming as well as promoting a healthy lifestyle. This project supports the group's sustainability goals of Green, Wellness and Community.

conditioning as well as lifts and escalators. SPS installed over 2,100 photovoltaic panels on building roofs and podiums, generating total rated power of more than 700kW.

In recognition of our efforts in energy saving, SPS was awarded at the Charter on External Lighting Award Ceremony organised by the Environment Bureau with 84 managed properties (71 Platinum Awards and 13 Gold Awards) included. Hong Kong Pacific Centre (Final Platinum, Existing Building), Tsim Sha Tsui Centre and Empire Centre (Provision Platinum, Existing Buildings), Exchange Tower (Satisfactory - Management Aspect, Existing Buildings Selective Scheme) received BEAM Plus certification.

In response to the trend towards electric vehicles, SPSL has provided support for installing over 360 electric vehicle chargers at more than 50 flagship car parks and this project will be reviewed and expanded to cover more car parks with more advance charging facilities.

The property management team strives to enhance energy efficiency and support renewable energy through installing photovoltaic panels in our properties.

From the property management perspective, environmental protection initiatives can be applied in several main areas of the daily operations. These include treatment of used materials or waste; reduction of waste; use of sustainable materials, use of recycled materials, reduction of greenhouse gases (GHGs) or carbon audit and footprints; conservation of nature and landscaping. Initiatives can be extended to raise the awareness of the residents and customers as well as to educate the young generation to be more cautious on protecting the nature and environment. SPS supports building a sustainable environment in Hong Kong. Energy saving is also one of the main areas that can contribute to the reduction of fuel consumption thereby reducing carbon emission, and much attention has been paid to minimising power consumption in the areas of lighting, electrical appliances and equipment, air-

Sino Estates Management Limited received the Renewable Energy Excellence Award (Corporate/Government Bodies) and the Joint Energy Saving Award at CLP Smart Energy Award 2019.

SEML received a number of awards in recognition of its efforts in environmental protection. Citywalk won the Silver Award (Property Management - Commercial & Industrial) in the 2019 Hong Kong Awards for Environmental Excellence jointly organised by the Environmental Campaign Committee and the Environmental Protection Department. Citywalk

2, Hong Kong Pacific Centre and Skyline Tower received Merit Award in the Property Management - Commercial & Industrial category whereas Pacific Palisades achieved Merit

52		Sino Land Company Limited	Annual Report 2020

Review of operations (Continued)

(9) Sino Property Services (Continued)

Environmental protection (Continued)

Award in the Property Management - Residential category at the same competition. SEML won the Excellence Award - Renewable Energy (Corporate/Government Bodies) and Joint Energy Saving Award at the Smart Energy Award 2019 organised by CLP Power Hong Kong Limited. Skyline Tower, Exchange Tower, One SilverSea received Silver Award, Bronze Award and Merit Award respectively in the category of Green Management Award - Service Provider (SME) at the Hong Kong Green Awards 2019 organised by Green Council. SEML has received a Fully Support Organisation Award at the Umbrella Bags Reduction Accreditation Programme 2019 organised by the Greeners Action, with

39 properties joined the programme including 36 properties received Gold Awards, 2 properties received Silver Awards, 1 property received Merit Award, while 16 of them received Reduction Awards.

To support minimising waste at source, SPS has implemented food waste management programme in residential properties, shopping malls, office and industrial buildings including Pacific Palisades, Olympian City, Tuen Mun Town Plaza (Shopping Arcade), Island Resort Mall, Citywalk, Citywalk 2, Exchange Tower, Skyline Tower (including SPS Headquarters Office), The Coronation and Tsim Sha Tsui Centre (Sino Headquarters Office) as well as for the government sector and NGO.

BRESL and its wholly-owned subsidiary Perfect Green provide one stop waste recycling solutions to properties managed by SPS. In addition to the collection of general recyclables and food waste, BRESL and Perfect Green have registered as one of the collectors under the "Waste Cooking Oils" Recycling Administrative Registration Scheme by the Environmental Protection Department. This has further strengthened their competitive edge in providing professional waste recycling services.

Business development highlights

As part of its continuous business strategy, SSSL diversifies its business by obtaining a Type III Security Company license which allows the company to install and repair security devices and/or to design a security system incorporating a security device. SSSL has completed

many projects for provision and installation of security system in residential estates, serviced apartments, hotels, commercial buildings and malls. To further expand the business portfolio in security solutions, SSSL has set up a Central Alarm Monitoring Station and launched CCTV and burglar alarm monitoring services. SPSL is making steady progress in developing and implementing their in-house car park control system, jointly with The Hong Kong Polytechnic University. Currently, the system has been deployed in over 50 car parks. As one of the market leaders, SPSL has introduced Android and iOS parking apps which provide real-time parking vacancy data and parking navigation services, etc., for customers to locate parking spaces easily and therefore enhance their parking experience. To further enrich customers' everyday life, SPSL has also participated in S+ Rewards, a multi-mall socialised interactive rewards programme introduced by the Group, to allow customers to redeem their rewards for parking privileges in our flagship car parks. In order to expand the specialist cleaning services, BRESL added a truck mounted with aerial work platform to provide high level cleaning and external wall cleaning. Since February 2020, BRESL has set up a Special Disinfection Unit to provide specialised disinfection and cleaning services particularly for COVID-19 related cases.

Best Result has adopted a UV sanitisation robot to enhance sanitisation services.

Annual Report 2020	Sino Land Company Limited		53

60

66

59

67

17 68

74 65

78

18	69	14
	13	81
76	77

73	80								63
	70		61
												12
			62
			79
			15
					6
						47
				9					53
								8	41	4352
				49 48	50		42 51
						10			38	44	7
					40		54		56	57	11	64
						45	36		46
											19
						39	37 55				58
		71 72							21
		34	27	23		22	33	31
				3		29	25
					3524	2632
								30					28
	75
					4	5
						2
16						1		20
	Island Line	Tuen Ma Line Phase 1
	Kwun Tong Line	Light Rail
	Tseung Kwan O Line	Airport Express & Tung Chung Line
	Tsuen Wan Line	Disneyland Resort Line
	East Rail Line	South Island Line
	West Rail Line	Route 3

54		Sino Land Company Limited	Annual Report 2020

PROPERTIES UNDER DEVELOPMENT

HONG KONG ISLAND

1. The Fullerton Ocean Park Hotel Hong Kong
2. Aberdeen Inland Lot No. 462, Wong Chuk Hang
3. Peel Street / Gage Street Project (Site A), Central
4. Wong Chuk Hang Station Package Two Property Development
5. Wong Chuk Hang Station Package Four Property Development

KOWLOON

1. Madison Park, Cheung Sha Wan
2. Grand Central, Kwun Tong
3. St. George's Mansions, Ho Man Tin
4. Grand Victoria, South West Kowloon
5. Kowloon Inland Lot No. 11254, Mong Kok
6. Yau Tong Ventilation Building Property Development

NEW TERRITORIES

1. 133 Portofino, Sai Kung
2. Mayfair By The Sea 8, Pak Shek Kok
3. Silversands, Ma On Shan
4. Kwai Chung Town Lot No. 524
5. Lot 765 in DD332, Cheung Sha, Lantau Island
6. Yuen Long Town Lot No. 532

18. West Rail Kam Sheung Road

Station Package One Property

Development

19. LOHAS Park Package Eleven Property Development, Tseung Kwan O

MAJOR COMPLETED

PROPERTIES

HONG KONG ISLAND

1. 38 Repulse Bay Road
2. 148 Electric Road
3. Central Plaza
4. The Centrium
5. Conrad Hong Kong
6. The Hennessy
7. The Hillside
8. Hollywood Centre
9. Island Resort Mall
10. The Johnston
11. Lee Tung Avenue
12. Marina House
13. One Capital Place
14. Pacific Palisades
15. Pacific Plaza
16. The Staunton

KOWLOON

1. Cameron Plaza
2. The Camphora
3. Capital Tower
4. China Hong Kong City
5. Coronation Circle
6. Corporation Square
7. Exchange Tower
8. Fullerton Centre
9. Futura Plaza
10. Hong Kong Pacific Centre
11. Kwun Tong Harbour Plaza
12. Maison Rosé
13. Olympian City
14. The Olympian Hong Kong
15. Omega Plaza
16. Pan Asia Centre
17. Remington Centre
18. Skyline Tower
19. Sunshine Plaza Shopping Arcade
20. Tsim Sha Tsui Centre
21. Westin Centre
22. Westley Square
23. Yau Tong Industrial City

NEW TERRITORIES

1. Avon Mall
2. Cambridge Plaza
3. Citywalk
4. Citywalk 2
5. Corporation Park
6. Corinthia By The Sea
7. Golden Plaza
8. Grand Regentville Shopping Mall
9. Lincoln Centre
10. Mansfield Industrial Centre
11. Mayfair Lane
12. Oceania Heights Shopping Mall
13. Paloma Bay
14. Paloma Cove
15. Parklane Centre
16. Ping Wui Centre
17. Riverwalk
18. Rosedale Gardens Shopping Mall
19. Shatin Galleria
20. Springdale Shopping Mall
21. Sunley Centre
22. tmtplaza
23. The Waterside Shopping Mall

Annual Report 2020	Sino Land Company Limited		55

Sustainable development

This Sustainable Development Section highlights the Group's performance in sustainability for the financial year ended 30th June, 2020. Further details of the Group's environmental, social and governance ('ESG') policies and performance are included in the standalone Sustainability Report for the financial year ended 30th June, 2020, which has been prepared in accordance with the 'Core' option of the Global Reporting Initiative (GRI) Sustainability Reporting Standards as well as the requirements of the ESG Reporting Guide under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Sustainability Report will be made available on our corporate website at www.sino.com.

At Sino, sustainability is central to what we do,

it is integrated into every aspect of our operations as we strive to create long-term value for customers, employees, business partners, shareholders, investors and the broader community. From architectural planning to green property management, from exploring green innovations to serving the community, we take a holistic approach and contribute to a sustainable built environment.

We collaborate with like-minded partners - colleagues, residents, tenants, business associates and the broader community - on our sustainability journey. This is encapsulated in our ethos of 'Creating better lifescapes'

• committed and together, we make every effort to build a better life together, where communities thrive in harmony by embracing green living and wellness, by engaging with all and pursuing meaningful designs, and by seeking innovation while respecting heritage and culture. It is brought to life through work in six areas, namely Green, Wellness, Design, Innovation, Heritage & Culture and Community; these six pillars shape and guide how we plan, design, work and deliver products and services.

The Sustainability Committee was set up in 2010 to drive the planning and implementation of our strategies to build a more sustainable business. It was restructured and renamed as the Environmental, Social and Governance Steering Committee ('ESG Steering Committee') in 2020. The ESG Steering Committee comprises Executive Directors and key executives from different business units to support the Board of Directors in overseeing and steering the planning and execution of the Group's sustainability programmes.

It provides overall stewardship, formulates direction, strategies, policies and goals, in addition to facilitating execution of plans and activities.

We continue to make strides on our sustainability journey. In April 2020, we joined the United Nations Global Compact as a Signatory, becoming one of the first property companies in Hong Kong to do so, and standing in collaboration with over 13,000 leading companies, organisations and government authorities from around the world to champion principled business. Incorporating the Ten Principles of the United Nations Global Compact into strategies, policies and processes, the participation reaffirms our commitment to operate in a responsible manner.

We have aligned our sustainability strategies with

15 United Nations Sustainable Development Goals, and undertaken to report progress to promote responsible business practices.

We have formulated our Sustainability Vision 2030 to guide our sustainability efforts, as well as strategies to accelerate environmental actions while seeking to make a positive impact on the community.

56		Sino Land Company Limited	Annual Report 2020

Sustainable development (Continued)

Sustainability vision 2030 and performance

Governance

Our performance

• Signatory of the United Nations Global Compact since April 2020
• No corruption case recorded in the 2019/2020 financial year

Green

Our vision

• To achieve greenhouse gas ('GHG') emission reduction by 30% by 2030 from 2012 level

Our performance

• As of June 2020, achieved GHG emission reduction by 17.73% from 2012 level

Wellness

Our vision

• To improve the well-being of our employees through wellness programmes covering work, family, physical health and mental health
• To increase training hours per employee by 50% by 2025 and 100% by 2030 from 2019 level
• To increase recruitment diversity by employing different ethnic groups and less-abled personnel

Our performance

• On top of paid maternity leave entitlement of 14 weeks (effective October 2018), increased paid parental leave by 10 days effective June 2019
• On average 11 training hours per employee in the 2019/2020 financial year

Design

Our vision

• To achieve BEAM Plus certification for all of our new buildings in Hong Kong
• Seek to achieve WELLTM certification for all of our new buildings in Hong Kong

Our performance

• 76% of our projects under development have obtained BEAM Plus provisional rating
• 133 Portofino, the Group's latest residential project in Sai Kung, has received WELL v2TM pre-certification, becoming the first Hong Kong residential project receiving WELL v2TM accreditation

Annual Report 2020	Sino Land Company Limited		57

Sustainable development (Continued)

Sustainability vision 2030 and performance (Continued)

Innovation

Our vision

• To foster a culture of innovation that enables colleagues and external innovators to test out new ideas and build a mechanism to apply new technologies in our business operations
• To receive ISO 27001 (Information security management) certification by 2025

Our performance

• Sino Inno Lab welcomed over 2,400 visitors during the 2019/2020 financial year; evaluated over 100 technologies with 47 under study for adoption, and over 40 adopted and at trial stage
• 131 innovative ideas were received from colleagues through the Sinovation programme

Heritage & Culture

Our vision

• To work on revitalisation of heritage building, promote appreciation of heritage conservation as well as arts and culture to enrich life

Our performance

• The Fullerton Hotel Sydney, housed in the heritage-listed former Sydney General Post Office, opened doors in October 2019
• The Fullerton Hotel Sydney carried out chemical-free cleaning of the building's ornate sandstone façades; the remediation works spanned 38,000 hours over nine months

Community

Our vision

• To improve the well-being of less-resourced families
• To establish a wellness education programme to promote good health education in the community
• To collaborate with local NGOs to promote social inclusion

Our performance

• Sino Caring Friends performed over 174,000 volunteer service hours in Hong Kong in the 2019/2020 financial year
• Undertaken a two-year partnership with The Boys and Girls Brigade, a Sydney-based children's charity. Support includes upgrading current facility to create a multifaceted space that will improve physical and mental health of beneficiaries

58		Sino Land Company Limited	Annual Report 2020

Sustainable development (Continued)

Green

The Group is committed to contributing to the sustainable development of our community by minimising environmental impact while facilitating societal changes.

Climate resilience, energy and emissions

The Group had set a carbon reduction target of reducing GHG emission across the common areas of buildings under the Group's management by 16% before 2020 from 2012 level, the target was achieved and exceeded in 2019. The Group has set a new target of reducing GHG emission by 30% by 2030 from 2012 level, equivalent to planting 1,072,223 trees. As at 30th June, 2020, a reduction of 17.73% was recorded.

The Group's Energy Policy outlines our commitment to managing energy consumption and to adopting energy-efficient technologies. Since September 2019, we have adopted IoT technology, AI analysis and digitalisation to enhance property services. A good example is Exchange Tower, which has recorded

an 8% year-on-year reduction in chiller plant energy consumption while maintaining indoor comfort level through deploying a smart energy management system.

To support the use of renewable energy, we have installed renewable energy features in our managed properties and established smart monitoring platforms to optimise building services and renewable power systems. The Group is expanding the coverage of solar panels across our managed properties. Over 2,100 photovoltaic panels, with a total rated power capacity of more than 700 kW, have been installed at properties under the Group's management in

Hong Kong.

The Group preserves and cares for trees at its properties. When it becomes necessary to fell trees due to safety or any other concerns, we try to make the most of the precious resources. Felled trees are examined and sorted; branches and twigs with no signs of pest infestation or disease are recycled into compost or mulch, while larger trunks and branches are upcycled into planters, furniture and art pieces. Since the launch of the tree recycling/upcycling initiative in 2018,

536 trees have been collected and converted into more than 50 m³ of mulch and compost.

Supplier environmental performance

In May 2019, the Group updated the Contractor/Supplier Code of Conduct, which outlines the Group's fundamental requirements on the environmental performance of

its contractors and suppliers. Suppliers are expected to observe the Group's core values and are required to comply with applicable environmental codes, laws and regulations in the places where they operate and ensure that they obtain and maintain all necessary environmental permits and registrations to conduct their business. Regular compliance checks on suppliers are conducted. Environmental conservation training is also provided for suppliers to ensure they share the same values with the Group.

Wellness

In order to 'make Sino the preferred choice for customers, investors and employees', we make every effort to address stakeholders' feedback. We strive to safeguard and enhance the wellness of our people and community, including their physical and mental health.

Annual Report 2020	Sino Land Company Limited		59

Sustainable development (Continued)

Wellness (Continued)

Employees

The well-being and safety of our employees are the first and foremost concerns of the Group. Providing a safe, fair and inclusive workplace is crucial for our human capital.

With regard to occupational health and safety,

15 of our properties are certified under the ISO 45001 Occupational Health and Safety Management System standard. Since 2008, 6,263 staff members have completed the Mandatory Basic Safety Training Course (Construction Work), and 620 staff members have completed the Safety Training Course for Competent Persons of Confined Spaces Operation.

Employee development is vital to the sustainable growth of the Group. We provide a wide spectrum of internal and external training opportunities to deepen their professional knowledge and essential skills. During the reporting period, approximately 106,000 training hours were provided, with each employee receiving an average of 11 hours of training.

We aim to increase training hours by 50% by 2025 and 100% by 2030 from our 2019 baseline.

To enhance internal communication and employee experience, the Group launched its first proprietary staff mobile app, inSino, in December 2019, enabling employees to access e-learning while on the move. The app also serves as a platform for engaging staff with the latest corporate updates, announcements, management messages, staff discounts, annual leave and medical benefit balance as well as a library of useful reference.

During the first half of 2020, around 10,000 care packs were distributed to colleagues to help combat COVID-19. Other initiatives to support staff include counselling services, Employee Wellness Programme, Happy@Work and outdoor fun day for colleagues and their families.

Customers, tenants and partners

The Group strives to achieve service and product excellence by thoroughly understanding the needs of customers and consistently surpassing their expectations, in line with one of our core values of 'Customers First'. To this end, we collect feedback regarding our service and product quality through communication channels such as our annual customer satisfaction survey. Customers are welcome to rate our services and facilities, including those related to our management, clubhouse services, cleanliness and security. We have also established an ISO 10002 certified Customer Satisfaction and Complaint Handling System, which is facilitated by a digital platform, iPromise, to ensure customer feedback is handled promptly and communicated efficiently. During the reporting period, we achieved a customer satisfaction rating of 3.67 out of 4 in Hong Kong.

Different systems and technologies have been harnessed to enhance the environmental quality for tenants and customers of the Group. Highlights include:

• robot for Indoor Air Quality ('IAQ') measurement to keep track of IAQ for the health and well-being of tenants;
• inorganic paint Airlite that is capable of reducing pollutants and removing germs in the air;
• award-winningproprietary innovation City Air Purification System that can purify air in the open space;
• air purifiers featuring double-layered HEPA filter, PMmagnet technology and patented disinfecting and bactericidal solution that are capable of removing pollutants and killing bacteria and viruses in the air by up to 99.99%.

60		Sino Land Company Limited	Annual Report 2020

Sustainable development (Continued)

Design

Innovation

The Group attaches great importance to the sustainability of its business operations. We continue to adopt sustainable building standards, invest in improvements and incorporate energy-efficient features in our projects. Our Sustainable Building Guidelines provide a comprehensive framework for integrating sustainability attributes at the building design stage and throughout its lifecycle. To holistically and comprehensively reduce the environmental footprint of our developments and to improve their performance, we seek to achieve green building certification for both existing properties and new development projects. During the reporting period, 76% of our projects under development obtained BEAM Plus provisional rating.

We also seek to achieve WELLTM certification for all of our new buildings in Hong Kong. WELLTM is the world's first architectural benchmark focusing exclusively

on health and well-being to improve sustainability.

133 Portofino, the Group's latest residential project in Sai Kung, has become the first residential property in Hong Kong to receive WELL v2TM pre-certification.

The Group holds the firm belief that innovation and technology are key to developing a diversified, sustainable and resilient economy while enhancing Hong Kong's competitiveness internationally. The Group has set a goal of achieving ISO 27001 certification

by 2025. An independent consultant was engaged to conduct cybersecurity assessment and review systems and infrastructure in 2019. Regular employee training on cybersecurity issues is also arranged.

To create a culture of innovation, drive efficiency and improve quality, a group-wide competition - Sinovation

• was launched in June 2019. Staff members at all levels are encouraged to share ideas to enhance efficiency and customer service with shortlisted ideas receiving support from the Sino Innovation Fund. Technical sharing sessions in IoT, AI, robotics and presentation skills, as well as meet-the-innovator sessions with other start-ups, have also been arranged.

To date, 131 innovative ideas have been received, and nine colleagues with outstanding ideas have been shortlisted as Sinovators. Four of them have been selected as winners, and received funds to turn their proposals into functional prototypes. One of the winning entries is Dr temi, a robot piloted at Exchange Tower; it is capable of measuring body temperature, body weight, blood pressure and other health metrics for tenants and customers.

Sino Inno Lab, a sandbox platform for technology companies to test out inventions and facilitate co-creation, was honoured at the Global Most Innovative Knowledge Enterprise ('MIKE') and Hong Kong MIKE Awards 2019, alongside 21 organisations from

eight countries and regions. During the reporting period, Sino Inno Lab welcomed more than 2,400 visitors and evaluated over 100 technologies and solutions;

over 40 have been adopted for trial and 47 are under study for adoption.

Annual Report 2020	Sino Land Company Limited		61

Sustainable development (Continued)

Heritage & Culture

Community

The Group appreciates the crucial role that cultural heritage plays in preserving defining memories, building identity and strengthening the sense of belonging.

The Fullerton Hotel Sydney had engaged more than 30 stonemasons to carry out a meticulous, chemical-free cleaning of the building's ornate sandstone façades in preparation of its opening in October 2019. The works spanned 38,000 hours over nine months.

'Think Like Leonardo da Vinci 500th Anniversary Exhibition' was held in Olympian City between December 2019 and February 2020. Partnering with the Hong Kong Innovation Foundation, Italy's acclaimed Leonardo3 Museum ('L3') and the Italian Consulate-General in Hong Kong, the exhibition showcased da Vinci's ideas, inventions and contributions to humanity in an interactive and engaging way that encouraged the audience to delve into the amazing universe of the celebrated genius. In addition to the fascinating machines constructed by L3 based on da Vinci's ideas, the exhibition featured over 1,000 digitised manuscripts and interactive drawings as part of a multi-sensory experience tailored for this inspiring event.

As a committed corporate citizen, the Group holds the firm belief in supporting people in need and working hand in hand with community partners towards a better future.

We stay committed to reaching out to support those in need. Since 2010, Sino Caring Friends, the corporate volunteers, have been building relationships with less-resourced families in various districts through continued volunteer services. Through the Community Care Project launched in 2018, Sino Caring Friends and community members deepen their understanding of community care services through training and participation in volunteer services.

During the reporting period, Sino Caring Friends organised over 260 activities, with over 1,600 volunteers participating in services for over 8,000 less-resourced elderly, children, youth and families. In total, they performed over 174,000 hours of volunteer services in Hong Kong.

62		Sino Land Company Limited	Annual Report 2020

Corporate governance report

The Board of Directors ("Board") is committed to providing effective management and sound control of the Company for maximizing the shareholders' value. The corporate governance principles of the Company emphasize the attainment and maintenance of a high standard of corporate governance practices and procedures, a quality board, sound internal control, and high transparency and accountability to the shareholders. The Company has adopted its own Corporate Governance Code and has complied with all code provisions as set out in Appendix 14 ("Code") to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules"), save as disclosed in this report. The corporate governance practices of the Company in compliance with the Code during the financial year ended

30th June, 2020 with explanation of the deviation are set out in this report.

Corporate governance practices

Directors

Corporate governance principle

The Board provides overall leadership and control for the Company in an effective and responsible manner with a view to maximizing the financial performance of the Company and the shareholders' value. The Board makes decisions on business strategies and corporate governance practices, determines the Company's objectives, value and standards, and oversees and monitors the management performance within the control and delegation framework of the Company. These include the Company's financial statements, dividend policy, any significant changes in accounting policy, adoption of corporate governance practices and procedures, and risk management and internal control strategies.

Board composition

The current Board has eleven Directors comprising six Executive Directors including the Chairman and the Deputy Chairman of the Board, one Non-Executive Director and four Independent Non-Executive Directors, details of which are set out under the section entitled "Directors' Report" of this Annual Report. Biographical details of the Directors and their relationships, where applicable, are contained under the section entitled "Biographical Details of Directors & Senior Management" of this Annual Report. The Company has maintained on its website and on the website of The Stock Exchange of Hong Kong Limited ("Stock Exchange") an updated list of its Directors identifying their roles and functions and whether they are Independent Non-Executive Directors. Independent Non-Executive Directors are identified in all corporate communications that disclose the names of Directors of the Company.

Annual Report 2020	Sino Land Company Limited		63

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Directors (Continued)

Division of responsibilities

The Board, led by the Chairman, is responsible for the Company's future development directions, overall strategies and policies, evaluation of the financial performance of the Company and approval of matters that are of a material or substantial nature, including adequacy of systems of financial, risk management and internal control, and conduct of business in conformity with applicable laws and regulations. The Executive Directors, constituting the senior management of the Company, are delegated with responsibilities in the day-to-day management of the Company and make operational and business decisions within the control and delegation framework of the Company. The Board gives clear directions as to the matters that must be approved by the Board before decisions are made

on behalf of the Company. The implementation of strategies and policies of the Board and the operations of each business unit are overseen and monitored by designated responsible Executive Directors. The Board has found that the current arrangement has worked effectively in enabling it to discharge its responsibilities satisfactorily. The types of decisions to be delegated by the Board to the management include implementation of the strategy and direction determined by the Board, operation of the business of the Company

and its subsidiaries ("Group"), preparation of financial statements and operating budgets, and compliance with applicable laws and regulations.

The Chairman ensures that the Board works effectively to discharge its responsibilities in the best interests of the Company, and, to establish good corporate governance practices and procedures. He also ensures that all key and appropriate issues are discussed by the Board in a timely manner and all Directors are encouraged to make a full and active contribution to the board's affairs. Directors with different views are encouraged to voice their concerns. They are allowed sufficient time for discussion of issues so as to ensure that board decisions fairly reflect board consensus.

A culture of openness and debate is promoted to facilitate the effective contribution of Non-Executive Directors and ensure constructive relations between Executive and Non-Executive Directors. During the year, the Chairman held a meeting in December 2019 with the Independent Non-Executive Directors without the presence of other directors in compliance with the applicable code provision of the Code.

There is no separation of the roles of the chairman and the chief executive in the Company. The Chairman of the Board provides leadership to the Board and undertakes both roles of chairman and chief executive. The Board is of the view that the current management structure has been effective in facilitating the Company's operation and business development and that necessary checks and balances consistent with sound corporate governance practices are in place.

In addition, the four Independent Non-Executive Directors have contributed valuable views and proposals for the board's deliberation and decisions. The Board reviews the management structure regularly to ensure that it continues to meet these objectives and is in line with the industry practices.

64		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Directors (Continued)

Directors' and officers' liabilities insurance

The Company has arranged appropriate directors' and officers' liabilities insurance coverage for the Directors and officers of the Company.

Division of responsibilities (Continued)

To enhance the function of the Board, four board committees, namely the Remuneration Committee, Nomination Committee, Audit Committee and Compliance Committee, have been set up to take up different responsibilities. All board committees have specific terms of reference clearly defining their powers and responsibilities. All board committees are required by their terms of reference to report to the Board in relation to their decisions, findings or recommendations, and in certain specific situations, to seek the Board's approval before taking any action.

The Non-Executive Directors, including Independent Non-Executive Directors, provide the Company with diverse skills, expertise and varied backgrounds and qualifications. They participate in board/board committee (including Audit Committee, Nomination Committee and Remuneration Committee) meetings to bring independent views, advice and judgment on important issues relating to the Company's strategy, policy, financial performance, and take the lead on matters where potential conflicts of interests arise. They also attend annual general meetings of the Company to understand the view of shareholders. They make

a positive contribution to the development of the Company's strategy and policy through independent, constructive and informed comments.

Every Director is considered to have given sufficient time and attention to the Company's affairs for the year under review. Each of the Directors is required to disclose to the Company the number and nature of offices he/she held in public companies or organizations and other significant commitments as well as the identity of such public companies or organizations.

Board meetings and supply of and access to information

The Board holds at least four regular meetings a year, which are normally scheduled in advance in the

fourth quarter of the preceding year. During the financial year ended 30th June, 2020, the Board had held

five meetings. The attendance records of the Directors to these board meetings are set out below:

	Meeting(s)
Directors	attended/held
Executive Directors
Mr. Robert Ng Chee Siong (Chairman)	3/5
Mr. Daryl Ng Win Kong (Deputy Chairman)	5/5
Mr. Ringo Chan Wing Kwong	5/5
Mr. Gordon Lee Ching Keung	5/5
Mr. Sunny Yeung Kwong	5/5
Mr. Thomas Tang Wing Yung	3/3
(appointed on 15th January, 2020)
Ms. Velencia Lee	4/4
(appointed on 1st July, 2019 and
resigned on 1st May, 2020)
Non-Executive Director
The Honourable Ronald Joseph Arculli	5/5
Independent Non-Executive Directors
Dr. Allan Zeman	5/5
Mr. Adrian David Li Man-kiu	5/5
Mr. Steven Ong Kay Eng	5/5
Mr. Wong Cho Bau	3/5

Annual Report 2020	Sino Land Company Limited		65

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Directors (Continued)

Board meetings and supply of and access to information (Continued)

Notice incorporating the agenda for each regular board meeting or board committee meeting is given to all Directors or board committee members at least

14 days in advance, and, all Directors or board committee members are given the opportunity to include matters for discussion in the agenda. All Directors/ board committee members are entitled to have access to board/board committee papers and related materials in sufficient details to enable them to make informed decisions on matters to be placed before the board/ board committee meetings. Meeting papers are normally sent to all Directors or board committee members at least 5 days in advance of every regular board meeting or board committee meeting.

The Company Secretary assists the Chairman of the Board and the chairmen of board committees in preparing meeting agendas and ensures that the Code as well as all applicable laws and regulations are duly complied with. Minutes of board meetings and board committee meetings are recorded in sufficient details of the matters considered and decisions reached at the relevant meetings. Draft and final versions of the minutes in respect of board meetings and board committee meetings are sent to all Directors or board committee members respectively for comment and records within a reasonable time after the relevant meetings. All minutes are properly kept by the Company Secretary and are available for the Directors' and board committee members' inspection.

All Directors are given unrestricted access to the advice and services of the Company Secretary who is responsible to the Board for ensuring that the board procedures and all applicable laws, rules and regulations are followed. The selection, appointment or dismissal of the Company Secretary is subject to approval by the Directors at board meeting.

All Directors are entitled to have access to timely information in relation to the Company's business and make further enquiries or retain independent professional advisors where necessary. The management provides all relevant explanation and information to the Board so as to give the Board the information it needs to discharge its responsibilities. During the year under review, the management provided all members of the Board with the relevant updates of major business operations giving a balanced and understandable assessment of the Company's performance, position and prospects.

Directors' appointment, re-election and removal

All Non-Executive Directors have entered into letters of appointment with the Company for a specific term of three years. The Company's Articles of Association provide that each Director is subject to retirement from office by rotation and re-election once every three years and that one-third (or the number nearest to one-third) of the Directors shall retire from office every year at the annual general meeting. New appointment to the Board is subject to re-election at the next following

annual general meeting. In addition, the appointment of an Independent Non-Executive Director who has served on the Board for more than nine years will be subject to a separate resolution to be approved by shareholders.

The Board will provide in the circular accompanying the annual report sent to shareholders the reason why the Board considers the Independent Non-Executive Director is still independent and its recommendation to shareholders to vote in favour of the re-election of such Independent Non-Executive Director.

66		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Directors (Continued)

Directors' appointment, re-election and removal

(Continued)

The Directors who are subject to retirement and re-election at the 2020 annual general meeting are set out on page 90 of this Annual Report.

The Board is empowered under the Company's Articles of Association and is collectively responsible to appoint any person as a Director either to fill a casual vacancy or as an additional board member. Only the most suitable candidate who is experienced, competent and able to fulfill the fiduciary duties and duties of skill, care and diligence would be selected as Director.

During the year, the Nomination Committee took into account the selection criteria for directors as set out in the nomination policy for directorship of the Company and the board diversity policy recommended and the Board approved the appointment of Mr. Thomas Tang Wing Yung as an Executive Director of the Board with effect from 15th January, 2020.

Confirmation of independence

The independence of the Independent Non-Executive Directors has been assessed in accordance with the applicable Listing Rules. Each of the Independent Non-Executive Directors has provided an annual written confirmation of independence pursuant to Rule 3.13

of the Listing Rules. The Company is of the view that all the Independent Non-Executive Directors meet the guidelines for assessing independence as set out in Rule 3.13 of the Listing Rules and are independent.

Directors' training and professional development

Every Director keeps abreast of responsibilities as a Director and of the conduct, business activities and development of the Company. Every newly appointed director receives a comprehensive induction package covering the statutory and regulatory obligations of directors, organizational structure, policies, procedures and codes of the Company, terms of reference of board committees and internal audit charter of internal audit. The Company Secretary from time to time updates and provides written training materials to the Directors, and organizes seminars on the latest development of the Listing Rules, applicable laws, rules and regulations relating to Directors' duties and responsibilities.

The Company Secretary maintains records of trainings attended by the Directors. The trainings attended by the current Directors during the year are as follows:

	Training
Directors	matters(Notes)
Executive Directors
Mr. Robert Ng Chee Siong	a, b
Mr. Daryl Ng Win Kong	a, b
Mr. Ringo Chan Wing Kwong	a, b, c
Mr. Gordon Lee Ching Keung	a, b
Mr. Sunny Yeung Kwong	a, b
Mr. Thomas Tang Wing Yung	a, b
(appointed on 15th January, 2020)
Non-Executive Director
The Honourable Ronald Joseph Arculli	a, b, c, d
Independent Non-Executive Directors
Dr. Allan Zeman	a, b, d
Mr. Adrian David Li Man-kiu	a, b, c, d
Mr. Steven Ong Kay Eng	a, b
Mr. Wong Cho Bau	a, b

Notes:

1. corporate governance
2. regulatory
3. finance
4. managerial

Annual Report 2020	Sino Land Company Limited		67

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Remuneration of directors and senior management

makes recommendations to the Board relating to the remuneration package of individual Executive Directors and senior management, and it also makes recommendations to the Board on the remuneration of Non-Executive Directors. The Committee meets at least once a year and is provided with sufficient resources enabling it to discharge its duties.

Emolument policy

The Company's emolument policy is to ensure that the remuneration offered to employees, including Executive Directors and senior management, is based on skill, knowledge, responsibilities and involvement in the Company's affairs. The remuneration packages of Executive Directors are also determined by reference to the Company's performance and profitability, the prevailing market conditions and the performance or contribution of each Director. The emolument policy for Non-Executive Directors is to ensure that the Non-Executive Directors are adequately compensated for their efforts and time dedicated to the Company's affairs, including their participation in board committees. Individual Directors and senior management have not been involved in deciding their own remuneration.

Remuneration Committee

The Company established its Remuneration Committee with written terms of reference on 23rd June, 2005. The current written terms of reference are available at the Company's website www.sino.com and the Stock Exchange's website.

The Remuneration Committee is responsible for making recommendations to the Board on the Company's policy and structure for all Directors' and senior management's remuneration and on the establishment of a formal and transparent procedure for developing remuneration policy. In arriving at its recommendations, the Committee consults the Chairman of the Board and takes into consideration factors including salaries paid by comparable companies, employment conditions elsewhere in the Group, and desirability

of performance-based remuneration. The Committee

The Remuneration Committee currently comprises four members with the Independent Non-Executive Directors constituting the majority of the Committee and an Independent Non-Executive Director acting as its chairman.

During the year, the Remuneration Committee had performed the following works:

• reviewed the existing emolument policy of Directors;
• reviewed the remuneration packages of Executive Directors; and
• made recommendations on Non-Executive Directors' fees.

No Director was involved in deciding his own remuneration at the meeting of the Remuneration Committee. The attendance records of the committee members to committee meeting(s) are set out below:

	Meeting(s)
Committee members	attended/held
Mr. Steven Ong Kay Eng*	1/1
(Committee Chairman)
Dr. Allan Zeman*	1/1
Mr. Adrian David Li Man-kiu*	1/1
Mr. Daryl Ng Win Kong	1/1

* Independent Non-Executive Director

Details of Directors' emoluments for the year are set out in Note 12 to the consolidated financial statements.

68		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Nomination of directors and senior management

Nomination policy

The Company has adopted the Nomination Policy for Directorship ("Nomination Policy") with effect from 1st January, 2019 which supplements the terms of reference of the Nomination Committee, and, sets out the processes and criteria for the nomination of a candidate for directorship in the Company. This Policy ensures that all nominations of Board members are fair and transparent in order to facilitate the constitution of the Board with a balance of skills, experience and diversity of perspectives that is appropriate to the requirements of the Company's business.

The Nomination Policy contains a number of factors in assessing the suitability of a proposed candidate which include the reputation for integrity, accomplishment and professional knowledge and industry experience which may be relevant to the Company, commitment in respect of available time, merit and potential contributions to the Board with reference to the Company's Board Diversity Policy, and the independence criteria under Rule 3.13 of the Listing Rules if the candidate is proposed to be appointed as an independent non-executive director. This Policy also lays down the nomination procedures on appointment or re-appointment of directors. The Nomination Committee will conduct the relevant selection process (coupled with the relevant selection criteria) against the nominated candidate for new directorship or director offer for re-election and make recommendations to the Board for consideration.

The Board will then make a decision as to whether the nominated candidate or the director offer for re-election shall be eligible to be appointed as a director or eligible to be re-appointed as a director of the Company respectively.

Board diversity policy

With a view to achieving a sustainable and balanced development, the Company has been considering diversity at the Board level as an essential element in supporting the attainment of its strategic objectives and its sustainable development. The Board Diversity Policy allows the Company to consider board diversity from a number of factors when deciding on new and re-appointments to the Board in order to achieve a diversity of perspectives among Board members. These factors include but not limited to gender, age, ethnicity, cultural and educational background, professional

or industry experience, skills, knowledge and other qualities of Directors. The Nomination Committee shall consider candidates on merits as well as against these measurable objectives with due regard for the benefits of the appropriate diversity of perspectives within the Board and also the candidates' potential contributions thereto.

The Board as a whole is responsible for reviewing the structure, size and composition of the Board with due regard to the intended benefits of board diversity. The balance between the number of Executive and Non-Executive Directors is considered effective in ensuring independent judgment being exercised effectively to provide sufficient checks and balances to safeguard the interests of the Company and its shareholders. The Company believes that the current Board composition is well-balanced and of a diverse mix appropriate for the business of the Company. The Board reviews and monitors the implementation of board diversity on a regular basis to ensure its effectiveness on determining the optimal composition of the Board.

Annual Report 2020	Sino Land Company Limited		69

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Nomination of directors and senior

management (Continued)

Nomination Committee

The Company established its Nomination Committee with written terms of reference on 20th February, 2012. The current written terms of reference are available at the Company's website www.sino.com and the

Stock Exchange's website.

The Nomination Committee reports to the Board and holds regular meeting to assist the Board in discharging its responsibility in reviewing the structure, size and composition of the Board with reference to the Board Diversity Policy of the Company. The Committee makes recommendations on any proposed changes

to the Board to complement the Company's corporate strategy. Its duties include making recommendations to the Board on the selection of individuals nominated for directorships, the appointment or re-appointment of Directors and succession planning for Directors, and regularly reviewing the time required from a Director to perform his/her responsibilities. The Committee is also responsible for assessing the independence of Independent Non-Executive Directors and reviewing their annual confirmations on independence. The Committee meets at least once a year and is provided with sufficient resources enabling it to discharge its duties.

The Nomination Committee, which is chaired by the Chairman of the Board, currently comprises three members with the Independent Non-Executive Directors constituting the majority of the Committee.

During the year, the Nomination Committee had performed the following works:

• recommended the appointment of Mr. Thomas Tang Wing Yung as an Executive Director of the Board with effect from 15th January, 2020, with reference to the selection criteria for directors as set out in the Nomination Policy and the Board Diversity Policy;
• reviewed the structure, size and composition of the Board and recommended the re-appointment of the retiring Directors;
• assessed the independence of Independent Non-Executive Directors and their annual confirmations on independence; and
• reviewed time commitment of Directors.

The attendance records of the committee members to committee meeting(s) are set out below:

	Meeting(s)
Committee members	attended/held
Mr. Robert Ng Chee Siong	1/1
(Committee Chairman)
Dr. Allan Zeman*	1/1
Mr. Adrian David Li Man-kiu*	1/1

* Independent Non-Executive Director

70		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit

Directors' responsibilities for financial statements

The Board is responsible for the preparation of the financial statements which should give a true and fair view of the state of affairs of the Company and of the results and cash flows for such reporting period. In preparing the financial statements, the Board has adopted generally accepted accounting standards in Hong Kong and suitable accounting policies and applied them consistently, made judgments and estimates that are prudent, fair and reasonable, and prepared the financial statements on a going concern basis. The Board is responsible for ensuring that the Company keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company.

The Board is not aware of any material uncertainties relating to events or conditions which may cast significant doubt over the Company's ability to continue as a going concern. Accordingly, the Board has continued to adopt the going concern basis in preparing the financial statements.

The auditor is responsible for auditing and reporting its opinion on the financial statements of the Company and the independent auditor's report for the financial year ended 30th June, 2020 is set out in the section entitled "Independent Auditor's Report" of this Annual Report.

Risk management and internal control

The Board has the overall responsibility for evaluating and determining the nature and extent of the risks

it is willing to take in achieving the Company's strategic objectives, and ensuring that the Company establishes and maintains appropriate and effective risk management and internal control systems. The Audit Committee is delegated with the authority from the Board to oversee the risk management and internal control systems.

Effective risk management is important to the Company's achievement of its strategic goals. To this end, the Company adopts an Enterprise Risk Management ("ERM") approach to assist the Board in discharging its risk management responsibilities and individual business units in managing the key risks faced by the Company. Details of the main features of the ERM system including the processes for the identification, evaluation and management of significant risks are set out in the "Risk Management Report" on pages 82 to 88.

The Company's internal control system is built on a sound control environment with a strong commitment to ethical values. "Staff integrity" is among one of our core values. A Code of Conduct, including prevention of bribery and avoidance of conflict of interest has been established. The core values and Code of Conduct are communicated to all new staff during orientation. This information is also included in the Staff Handbook and available on our intranet. The importance of integrity is reiterated regularly by messages from senior management and through training and seminar. The Business Ethics Committee has been established as a whistle-blowing channel for staff and other relevant parties to report misconduct cases. Every reported case will be handled in confidence and followed through

in accordance with the policy and procedures for notification of unethical conduct.

Annual Report 2020	Sino Land Company Limited		71

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit (Continued)

Risk management and internal control (Continued)

The internal control system also includes an appropriate organizational structure with clearly defined responsibilities, accountability and authorities underpinning proper segregation of duties, complemented by monitoring and reporting mechanism to ensure proper checks and balances. Policies and procedures covering key business processes are established and communicated to staff, and are reviewed regularly to ensure continued relevance and effectiveness, and for continuous improvement.

The Company's internal control system is fully integrated with the risk management framework.

The ERM is a process through which risks together with the relevant controls are identified, assessed, evaluated and reviewed on an ongoing basis. All the significant risks identified are mapped to and incorporated in the annual internal audit plan. Key controls are subject to regular independent review and test by the Internal Audit Department in order to assess their adequacy and effectiveness.

Internal audit

The Internal Audit Department provides independent assurance regarding the existence of adequate and effective controls in the operations of the Company's business units. The Head of Internal Audit Department reports directly to the Audit Committee. In performing its duties, the Internal Audit Department has free and unfettered access to information and to meet with any of the department heads or persons-in-charge as stipulated in the Internal Audit Charter.

The Internal Audit Department adopts a risk-based audit approach. It conducts annual risk assessment and devises a 3-year-rolling internal audit plan which is reviewed and approved by the Audit Committee. Depending on the nature and level of the risks, the Internal Audit Department performs audits and reviews on the operations of individual business units, and conducts recurring and impromptu site investigations on selected risk areas to assess the effectiveness of the controls implemented by the business units concerned. The audit findings regarding control weaknesses are communicated to the relevant business units. Significant audit findings and recommendations are reported to the Audit Committee, which in turn reports to the Board. The implementation of the agreed actions in response to the audit findings are tracked and followed up regularly, and the status is reported to the Audit Committee.

Internal control self-assessment

To further enhance the risk management and internal control systems, the heads of individual business units conduct annual internal control self-assessment with reference to the 17 principles of the COSO (The Committee of Sponsoring Organizations of

the Treadway Commission) 2013 Internal Control - Integrated Framework. Through the use of internal control self-assessment questionnaires, the heads of individual business units systemically review and assess the effectiveness of all the key internal controls over their business operations that are in place to mitigate the risks, identify potential new risks affecting their businesses and operations, design and execute enhancement plans to address such new risks. The results of the self-assessment are reported to the Board through the Audit Committee and form part of the annual assessment of the adequacy and effectiveness of the risk management and internal control systems.

72		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit (Continued)

Risk management and internal control (Continued)

Evaluation of the adequacy of resources of the Company's accounting and financial reporting function, and internal audit function

For the year ended 30th June, 2020, the Internal Audit Department has conducted an assessment and concluded that the resources, staff qualifications and experience, training programmes and budget of the Company's accounting and financial reporting function were adequate. The Head of Internal Audit Department, in conjunction with the Human Resources Department, also carried out a review of the internal audit function and concluded that its resources, staff qualifications and experience, training programmes and budget were adequate. The results of the review were reported to the Audit Committee.

Based on the above, the Board and the Audit Committee were satisfied with the adequacy of the resources, staff qualifications and experience, training programmes and budget of the Company's accounting and financial reporting function, and internal audit function.

Review of the effectiveness of risk management and internal control systems

The Board has the overall responsibility for the risk management and internal control systems and reviewing effectiveness of such systems. Such systems are designed to manage rather than eliminate the risks of failure to achieve business objectives, and can only provide reasonable but not absolute assurance against material misstatement or loss.

On behalf of the Board, the Audit Committee evaluates the effectiveness of the Company's risk management and internal control systems at least annually. For the financial year ended 30th June, 2020, the Audit Committee, with the assistance of the Risk and Control Committee, conducted a review of the effectiveness of the Group's risk management and internal control systems covering all the material controls, including environmental, social and governance related risks, financial, operational and compliance controls. Throughout the year, the Audit Committee also oversaw the risk management system on an ongoing basis through various activities including reviewing and approving the updated ERM Policy and Framework as well as the ERM reports.

For the financial year ended 30th June, 2020, the Board received a confirmation statement from management on the effectiveness of the risk management and internal control systems. The confirmation is based on:

• the work performed by management in identifying, evaluating, monitoring and managing the existing, new and emerging risks on an ongoing basis;
• the results of formal risk assessments conducted quarterly during the year in accordance with the approved ERM Policy and Framework;
• the results of the Group-wide internal control self-assessment performed by individual business units; and
• the independent verification and assurance provided through audit and review performed by the external auditor and the Internal Audit Department.

In the light of the above, the Board and the Audit Committee concluded that the risk management and internal control systems of the Group were adequate and effective. Although there were no significant control failings or weaknesses or areas of major concerns identified during the year, the risk management and internal control systems will be reviewed regularly for continuous improvement.

Annual Report 2020	Sino Land Company Limited		73

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit (Continued)

Policy and procedures of inside information handling and dissemination

The Company handles and disseminates inside information in accordance with the Securities and Futures Ordinance and the Listing Rules and with reference to the Guidelines on Disclosure of Inside Information issued by the Securities and Futures Commission. Potential inside information is captured through established reporting channels of the business units and escalated to senior management which will consider the price sensitivity of the information. Inside information is kept strictly confidential and is restricted to relevant parties on a need-to-know basis so as

to ensure confidentiality until consistent and timely disclosure by way of corporate announcement is made to inform the public of the inside information in an equal and timely manner. A strict prohibition on the unauthorized use of confidential information is included in the Company's code of conduct applicable to all employees of the Group.

The Audit Committee reports to the Board and holds regular meetings to assist the Board in discharging its responsibilities for effective financial reporting controls, risk management and internal control. The Committee monitors the integrity of the Company's financial statements, annual report and accounts and half-year report and reviews significant financial reporting judgments contained in them. It reviews, makes recommendations and reports to the Board on findings relating to the financial statements, reports and accounts, risk management and internal control systems and compliance issues. The Committee also oversees the Company's relationship with the external auditor, reviews auditor's letter of engagement and makes recommendations to the Board on the appointment and re-appointment of external auditor. It is empowered

to review and monitor the external auditor's independence and objectivity and the effectiveness of the audit process in accordance with applicable standards. It reviews external auditor's management letter and any material queries raised by the auditor to the management and the management's response. The Committee meets at least four times a year and is provided with sufficient resources enabling it to discharge its duties.

Audit Committee

The Company established its Audit Committee with written terms of reference on 23rd September, 1998. The current written terms of reference are available at the Company's website www.sino.com and the Stock Exchange's website.

74		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit (Continued)

Audit Committee (Continued)

The Audit Committee currently comprises three members, all of them being Independent Non-Executive Directors.

During the year, the Audit Committee had held

four meetings and reviewed, inter alia, the following matters:

• the Company's 2019 annual report and audited financial statements and the 2019/2020 interim report and unaudited interim financial statements, including the accounting policies and practices adopted by the Company, before submitting to the Board;
• the ERM Policy and Framework of the Company for the enhancement of the risk management system;
• internal audit reports and ERM reports on the risk management and internal control systems, including the effectiveness of the risk management and internal control systems of the Group, the adequacy of resources, staff qualifications and experience, training programmes and budget of the Company's accounting and financial reporting function, and internal audit function;
• internal audit plan 2020/2021;
• usage of annual caps on certain continuing connected transactions of the Company; and
• re-appointmentof the Company's auditor before submitting to the Board.

All the meetings were attended by the external auditor of the Company. The attendance records of the committee members to these committee meetings are set out below:

	Meeting(s)
Committee members	attended/held
Mr. Adrian David Li Man-kiu	4/4
(Committee Chairman)
Dr. Allan Zeman	4/4
Mr. Steven Ong Kay Eng	4/4

Codes for dealing in the Company's securities

The Company has adopted its own code for dealing in the Company's securities by Directors ("Directors Dealing Code") on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers of the Listing Rules ("Model Code"). The Company has made specific enquiries of all Directors who held such offices during the year under review. All of them confirmed their compliance with the required standard set out in the Directors Dealing Code during the year ended 30th June, 2020. The Company has also adopted a code for dealing in the Company's securities by relevant employees, who are likely to be in possession of inside information in relation to the securities of the Company, on no less exacting terms than the

Model Code.

Annual Report 2020	Sino Land Company Limited		75

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Accountability and audit (Continued)

Auditor's remuneration

The fees in respect of audit and non-audit services provided to the Group by the external auditor of the Company for the year ended 30th June, 2020 amounted to HK$4,812,760 and HK$970,000 respectively.

The non-audit services mainly consist of review and consultancy services.

Corporate governance functions

The Board is responsible for performing the following corporate governance duties as required under the Code:

• to develop and review the Company's policies and practices on corporate governance;
• to review and monitor the training and continuous professional development of Directors and senior management;
• to review and monitor the Company's policies and practices on compliance with legal and regulatory requirements;
• to develop, review and monitor the code of conduct and compliance manual applicable to employees and Directors; and
• to review the Company's compliance with the Code and disclosure in the Corporate Governance Report.

During the year, the Board considered the following corporate governance matters:

• reviewed the usage of annual caps on certain continuing connected transactions of the Company;
• reviewed the compliance with the Code through the Compliance Committee; and
• reviewed the effectiveness of the risk management and internal control systems of the Group through the Risk and Control Committee and the Audit Committee.

Compliance Committee

The Company established its Compliance Committee with written terms of reference on 30th August, 2004 to enhance the corporate governance standard

of the Company. The Compliance Committee has dual reporting lines. A principal reporting line is to the Board through the Committee Chairman. A secondary reporting line is to the Audit Committee. The Compliance Committee currently comprises the Deputy Chairman of the Board Mr. Daryl Ng Win Kong (Committee Chairman), the other Executive Directors of the Company, the Group Chief Financial Officer,

a Senior Legal Counsel, the Company Secretary, the Head of Internal Audit Department, other department heads and the Compliance Officer. The Committee holds regular meetings on a bi-monthly basis to review bi-monthly management reports on ongoing compliance regarding continuing connected transactions and usage of annual caps, provide a forum for regulatory updates for the management, consider corporate governance issues and make recommendations to the Board and the Audit Committee on the Company's corporate governance issues and Listing Rules compliance matters.

76		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Communication with shareholders

The Company affirms its commitment to maintaining a high degree of corporate transparency, communicating regularly with its shareholders and ensuring in appropriate circumstances, the investment community at large being provided with ready, equal and timely access to balanced and understandable information about the Company (including its financial performance, strategic goals and plans, material developments, governance, risk profile and other material information), in order to enable the shareholders to exercise their rights in an informed manner.

Communication strategies

Principles

The Board is dedicated to maintain an ongoing dialogue with the shareholders of the Company and the investment community. Information is communicated to the shareholders and the investment community mainly through the Company's financial reports (interim and annual reports), annual general meetings and regular meetings with research analysts and fund managers, as well as by making available all the disclosures submitted to the Stock Exchange and its corporate communications and other corporate publications on the Company's website. The Company continuously enhances its website in order to improve communication with shareholders. Investor/analyst briefings and one-on-one meetings, investor conferences, site visits and results briefings are conducted on a regular basis in order to facilitate effective communication between the Company, shareholders and the investment community. The Board strives to ensure effective and timely dissemination of information to shareholders and the investment community at all times and reviews regularly the above arrangements to ensure its effectiveness.

Shareholders' meetings

The Board strives to maintain a continuing open dialogue with the shareholders of the Company. Shareholders are encouraged to participate in general meetings or to appoint proxies to attend and vote at meetings for and on their behalf if they are unable to attend the meetings. The process of the Company's general meeting is monitored and reviewed on a regular basis, and, if necessary, changes will be made to ensure that shareholders' needs are best served.

The Company uses annual general meeting as one of the principal channels for communicating with its shareholders. The Company ensures that shareholders' views are communicated to the Board. At the annual general meeting, each substantially separate issue has been considered by a separate resolution, including the election of individual Directors. The Chairman of the Board, chairmen of the respective board committees and the external auditor usually attend annual general meetings to inter-face with and answer questions from shareholders.

Annual Report 2020	Sino Land Company Limited		77

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Communication with shareholders

(Continued)

Communication strategies (Continued)

Shareholders' meetings (Continued)

The last annual general meeting of the Company is the 2019 annual general meeting ("2019 AGM") which was held on 24th October, 2019 at The Pacific Rooms, 9th Floor, Towers Wing, The Royal Pacific Hotel & Towers, 33 Canton Road, Tsim Sha Tsui, Kowloon. The Directors, including the Chairman of the Board, the Chairman of the Audit Committee, the Chairman of the Nomination Committee and the Chairman of the Remuneration Committee, and the external auditor of the Company, Deloitte Touche Tohmatsu, attended the 2019 AGM. The attendance records of the then Directors to the 2019 AGM are set out below:

	Meeting(s)
	attended/held
Executive Directors
Mr. Robert Ng Chee Siong	1/1
Mr. Daryl Ng Win Kong	1/1
Mr. Ringo Chan Wing Kwong	1/1
Mr. Gordon Lee Ching Keung	1/1
Mr. Sunny Yeung Kwong	1/1
Ms. Velencia Lee	1/1
(resigned on 1st May, 2020)
Non-Executive Director
The Honourable Ronald Joseph Arculli	1/1
Independent Non-Executive Directors
Dr. Allan Zeman	1/1
Mr. Adrian David Li Man-kiu	1/1
Mr. Steven Ong Kay Eng	1/1
Mr. Wong Cho Bau	0/1

The Company's notice to shareholders for the

2019 AGM was sent to shareholders more than 20 clear business days prior to the meeting. The chairman of the meeting exercised his power under the Company's Articles of Association to put each proposed resolution to vote by way of a poll. The Company adopted poll voting for all resolutions put to vote at the meeting.

The procedures for voting by poll at the 2019 AGM were contained in the circular of the Company to its shareholders, which was dispatched together with the 2019 annual report, and were further explained at the 2019 AGM prior to the polls being taken. Simultaneous translation from English to Cantonese was available at the 2019 AGM.

Separate resolutions were proposed at the 2019 AGM on each substantive issue and the percentage of votes cast in favour of such resolutions as disclosed in the announcement of the Company dated 24th October, 2019 are set out below:

		Percentage
Resolutions proposed at the 2019 AGM	of votes
1	Adoption of the audited Financial	99.99%
	Statements and the Directors' and
	Independent Auditor's Reports for the
	year ended 30th June, 2019
2	Declaration of a final dividend of	99.99%
	HK$0.41 per ordinary share with
	an option for scrip dividend
3(i)	Re-election of Mr. Daryl Ng Win Kong	87.92%
	as Director
3(ii)	Re-election of Mr. Ringo Chan Wing Kwong	89.74%
	as Director
3(iii) Re-election of Mr. Gordon Lee Ching Keung	93.21%
	as Director
3(iv) Re-election of Ms. Velencia Lee as	93.32%
	Director
3(v)	Authorization of the Board to fix the	99.96%
	Directors' remuneration for the financial
	year ending 30th June, 2020	99.70%
4	Re-appointment of Deloitte Touche
	Tohmatsu as Auditor for the ensuing
	year and to authorize the Board to
	fix their remuneration
5(i)	Share buy-back mandate up to 10% of	99.99%
	the Company's issued shares
5(ii) Share issue mandate up to 20% of the	82.25%
	Company's issued shares
5(iii) Extension of share issue mandate to the	82.19%
	shares bought back under the share
	buy-back mandate

78		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Communication with shareholders

(Continued)

Shareholders' privacy

The Company recognizes the importance of shareholders' privacy and will not disclose shareholders' information without their consent, unless required by law to do so.

Communication strategies (Continued)

Shareholders' meetings (Continued)

All resolutions put to shareholders at the 2019 AGM were passed. The Company's Share Registrar was appointed as scrutineers to monitor and count the

poll votes cast at that meeting. The results of the voting by poll were published on the respective websites of the Company and the Stock Exchange.

The latest version of the Articles of Association of the Company is available at the Company's website www.sino.com and the Stock Exchange's website. No changes have been made to the Company's Articles of Association during the year.

Enquiries

Shareholders can direct their questions about their shareholdings to the Company's Share Registrar. To the extent the requisite information of the Company is publicly available, shareholders and the investment community may at any time make a request for such information. Designated contacts, email addresses and enquiry lines of the Company have been provided in the "Corporate Information" section of this Annual Report to enable the shareholders and the investment community to make any enquiry in respect of the Company.

Corporate communications

Corporate communications issued by the Company have been provided to the shareholders in both English and Chinese versions to facilitate their understanding. Shareholders have the right to choose the language (either English or Chinese, or both) or means of receipt of the corporate communications (in hard copy or through electronic means). They are encouraged to provide, amongst other things, their email addresses to the Company in order to facilitate timely, effective and environmental friendly communication.

Company's website

A section entitled "Investor Relations" is available on the Company's website www.sino.com. Information on the Company's website is updated on a regular basis. Information released by the Company to the Stock Exchange is also posted on the Company's website immediately thereafter in accordance with the Listing Rules. Such information includes financial statements, announcements, circulars to shareholders and notices of general meetings, etc.

Annual Report 2020	Sino Land Company Limited		79

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Communication with shareholders

(Continued)

Dividend policy

The Board has formalized and adopted a Dividend Policy with effect from 1st January, 2019 to set out the framework that the Company has put in place in relation to dividend payout to shareholders. The Company's Dividend Policy is consistent with its business profile and maintenance of a strong credit profile while providing steady dividend payout to shareholders. The Company aims to provide relatively consistent, and where appropriate increases, in ordinary dividends linked to the underlying earnings performance of the Company's business for the reporting period. The Company will declare and pay dividends in Hong Kong dollars.

The Company may also offer to its shareholders an option to receive dividends in the form of new shares in the Company credited as fully paid in lieu of cash dividends. The scrip dividend option will enable the shareholders to increase their investment in the Company without incurring brokerage fees, stamp duty and related dealing costs. The Company may, at the Board's discretion, declare and pay dividends in any other forms as prescribed by its Articles of Association, as the Board deems appropriate.

The Board will review the Dividend Policy from time to time and may adopt changes as appropriate at the relevant time to ensure the effectiveness of this Policy.

Shareholders' rights

Pursuant to Section 566 of the Companies Ordinance, Directors are required to call a general meeting if the Company has received requests to do so from shareholders representing at least 5% of the total voting rights of all the shareholders having a right to vote

at the general meetings. The request must state the general nature of the business to be dealt with at the meeting and may include the text of a resolution that may properly be moved and is intended to be moved at the meeting. Such request must be authenticated by the shareholders making it and may either be deposited at the registered office of the Company at 12th Floor, Tsim Sha Tsui Centre, Salisbury Road, Tsim Sha Tsui, Kowloon, Hong Kong for the attention of the Company Secretary or sent to the Company's email address at [e-mail].

In relation to an annual general meeting which the Company is required to hold, Sections 615 and 616 of the Companies Ordinance provide that the Company must give notice of a resolution if it has received request to do so from shareholders representing at least 2.5% of the total voting rights of all shareholders of the Company having a right to vote on the resolution at the annual general meeting, or at least 50 shareholders having a right to vote on the resolution at the annual general meeting. Such request must be authenticated by the shareholders making it and may either be deposited at the registered office of the Company or sent to the Company's email address, both of which are mentioned above.

80		Sino Land Company Limited	Annual Report 2020

Corporate governance report (Continued)

Corporate governance practices

(Continued)

Communication with shareholders

(Continued)

Shareholders' rights (Continued)

Shareholders who wish to propose a person (other than a retiring Director) for election as director ("Candidate") at a general meeting of the Company, should (a) deposit a written notice of such proposal at the registered office of the Company for the attention of the Company Secretary, signed by the shareholders who should be qualified to attend and vote at the general meeting;

1. provide biographical details of the Candidate as set out in Rule 13.51(2)(a) to (x) of the Listing Rules; and
2. provide a written consent signed by the Candidate indicating his/her willingness to be elected. The period for lodgment of such a written notice shall be at least 7 days commencing no earlier than the day after the dispatch of the notice of the meeting appointed for such meeting and such election and ending not later than
   7 days prior to the meeting.

The Company has been practising the above shareholders' communication policy to handle enquiries put to the Board and will review them on a regular basis to ensure their effectiveness. Specific enquiries and suggestions by shareholders can be sent in writing to the Board or the Company Secretary at our registered office address or by email to the Company.

Annual Report 2020	Sino Land Company Limited		81

Risk management report

Risk policy statement

Risk governance and management

Robust and effective management of risks is an essential and integral part of corporate governance. It helps to ensure that the risks encountered in the course of achieving the Group's strategic objectives are managed within the Group's risk appetite.

To achieve this, an Enterprise Risk Management ("ERM") approach is adopted for identifying, assessing, responding to and reporting on risks that might affect the Group in pursuit of its objectives and goals. The purposes of the implementation of ERM are as follows:

• to establish a structured and systematic process for

identifying, assessing, reporting and managing risks;

• to define roles and responsibilities within a "Three

Lines of Defence" framework;

• to increase risk awareness at all levels;

• to enhance constructive discussion, effective

communication and timely escalation of risks by

adopting a common platform for risk management;

• to focus on risks that are relevant to the Group's

business and reputation, the Board's requirements

and stakeholders' expectations;

• to provide senior management and the Board with a

holistic view of the Group's material risk exposures

and steps taken to manage and monitor such

exposures;

• to provide senior management and the Board with

In June 2020, the Audit Committee approved the updated ERM Policy and Framework, which was based on the International Standard ISO 31000:2018 Risk Management - Guidelines, proposed by the Risk Management function of the Internal Audit Department. To ensure Continued relevance and continuous improvement, the ERM Policy and Framework is reviewed and updated with changes regularly.

The Group adopts a "Three Lines of Defence" model in risk governance. This is manifested by the oversight and directions from the Board, the Audit Committee and the Risk and Control Committee of the Group. The risk management framework of the Group combines a top-down strategic view with a bottom-up operational assessment conducted by each division and department. Members of senior management discuss the top-tier risks escalated through the bottom-up process and deliberate on any other risk issues that they consider important. This combined approach ensures that all the significant risks which need to be considered are identified and managed properly.

The following diagram illustrates the Group's Risk Governance and Management Framework:

the best available risk information and facilitate the

making of informed decisions;

• to ensure compliance with the relevant laws and

regulations, and the best practices in corporate

governance; and

• to help creating and protecting the value of the

Group.

The Group is committed to continuously improving its ERM framework and processes and building a risk- aware culture across the Group with a view to achieving a sustainable and balanced development.

Governance

3 Lines of defence

		up	approach
Bottom	-

First line Business owners

Board

of Directors

Audit committee

Risk and control committee

Second line

Risk

management

Top - down

approach

Third line

Internal

audit

providers assurance External

82		Sino Land Company Limited	Annual Report 2020

Risk management report (Continued)

Risk governance and management

(Continued)

The Board has the overall responsibility for evaluating and determining the nature and extent of the risks it is willing to take in achieving the Group's strategic objectives, and ensuring that the Group establishes and maintains appropriate and effective risk management and internal control systems.

The Audit Committee is delegated with the authority from the Board to oversee the design, implementation and monitoring of the risk management and internal control systems within the Group. The Audit Committee advises the Board on the Group's risk-related matters. The Audit Committee is also responsible for reviewing and approving the Group's ERM Policy and Framework and for ensuring the adequacy and effectiveness of the Group's risk management and internal control systems. The Head of Internal Audit Department reports regularly to the Audit Committee, which in turn reports to the Board, on the Group's overall risk position and key exposures, the actions planned or taken by management, and major emerging risks that require special attention.

The Risk and Control Committee, with its formal terms of reference approved by the Audit Committee, is made up of members from senior management. The Risk and Control Committee assists the Audit Committee in discharging its corporate governance responsibilities for risk management and internal control. Regarding risk management, the Risk and Control Committee

is responsible for ensuring that the ERM system is adequate and effective and that the ERM framework is implemented consistently throughout the Group. It monitors the Group's overall risk profiles by reviewing the key risks relating to individual business units and the key risks that are enterprise-wide, and ensures alignment with the approved risk appetite.

As the first line of defence, heads of individual divisions and departments manage risks faced by their business units/functions. As the risk owners, they identify and

evaluate the risks which may potentially impact the achievement of their business objectives, mitigate and monitor the risks by designing and executing control procedures in their day-to-day operations. They conduct risk assessment and control self-assessment on a regular basis to evaluate the adequacy and effectiveness of controls that are in place to mitigate the identified risks.

As the second line of defence, the Risk Management function is responsible for the ongoing maintenance of the ERM infrastructure and recommending changes to the Risk and Control Committee and the Audit Committee as appropriate. The Risk Management function collects and collates risk information to create an enterprise-wide view of risks and controls. In doing so, it critically reviews the results of risk assessment individual business units, constructively challenges their views so as to ensure that all the risks relevant to the Group are identified properly, assessed consistently and reported timely. It prepares reports for the Risk and Control Committee and the Audit Committee and escalates risk and control issues with reference to the risk appetite thresholds.

As the third line of defence, the Internal Audit Department acts as an independent assessor. It conducts independent review and assessment of the adequacy and effectiveness of the risk management and internal control systems. The Internal Audit Department assesses if all the key risks are identified properly and evaluated according to the approved ERM Policy and Framework and whether the existing key controls are operating effectively. The results of risk assessment are also mapped to the internal audit plan to ensure the audit performed by the Internal Audit Department systematically covers all the significant risks and the corresponding key controls. As such, the Internal Audit Department is able to provide independent assurance on the adequacy and effectiveness of the risk management and internal control systems and to report any deficiencies and room for improvement to the Risk and Control Committee and the Audit Committee.

Annual Report 2020	Sino Land Company Limited		83

Risk management report (Continued)

Risk management process

The ERM process is illustrated in the diagram below:

CONSULTATION&COMMUNICATION		Scope, context, criteria
			REVIEW&MONITORING
	Risk assessment
		Risk
		identification
		Risk
		analysis
		Risk
		evaluation
		Risk treatment
	RECORDING & REPORTING

external and internal factors, the relationships with the external and internal stakeholders and the contractual relationships and commitments to ensure that the risk management approach adopted is appropriate for the Group. To ensure a common assessment standard is adopted, risk criteria are defined to measure the relative significance of risk.

c) Risk identification

Divisions and departments analyze their respective business activities and main processes to identify operational risks, which forms a "bottom-up" approach. A "top-down" approach is also adopted by the senior management to identify business/ strategic risks. Combining the output from the two approaches, a comprehensive list of risks for individual business units and hence for the Group can be generated. Risk classification system is used to facilitate the identification and accumulation of similar risks.

(Source: The ISO 31000:2018 Risk Management Process)

a) Communication and consultation

Communication and consultation with appropriate external and internal stakeholders take place within and throughout all steps of the ERM process. For instance, the management team holds daily meetings to raise risk concerns, discuss emerging risks identified and formulate early response actions.

b) Scope, context, criteria

The risk management process applies to all business and decision-making processes, including the formulation of strategic objectives, business planning and day-to-day operations. The context of the ERM process is developed from the understanding of the external and internal environment in which the Group operates, taking into account the relevant

d) Risk analysis

The purpose of risk analysis is to comprehend the nature of risk and its characteristics. Risk analysis involves a detailed consideration of the sources of risk, the consequences and likelihood, the existing controls and their effectiveness.

e) Risk evaluation

Divisions and departments use the predefined criteria to assign scores for the risks identified. With reference to the risk matrix (i.e. a combination of the consequence and likelihood scores), the risk ratings are determined (i.e. low risk, moderate risk, high risk and extreme risk). The risk ratings reflect the management attention and risk treatment effort required, taking into account the Group's risk appetite.

84		Sino Land Company Limited	Annual Report 2020

Risk management report (Continued)

Risk management process (Continued)

f) Risk treatment

The adequacy of existing controls is assessed in order to determine if additional measures are required to bring the remaining risks to an acceptable level. When determining the appropriate risk treatment plans, one or more of the following four types of risk response will generally be adopted:

1. • avoid (not starting or continuing with the activity that gives rise to the risk);
   • reduce (lessening the likelihood or consequences);
   • transfer (sharing the risk with another party, e.g. insurance); and
   • accept (retaining the risk by making an informed decision).
2. Monitoring and review

Annual risk assessment is conducted to effectively manage the Group's risk profile. A half-yearly review is also conducted to update the progress of risk treatment plans and incorporate changes in the

external and internal environment. Key risks and emerging risks are reviewed at least quarterly or when the situation may require.

h) Recording and reporting

The results of risk assessment are documented in the risk registers in a consistent manner. All the identified risks, risk scoring and ratings, together with the details of existing controls and proposed treatment plan (if any) are recorded in the risk registers. Daily management meetings are held to identify and discuss emerging risk and determine the response required.

Quarterly ERM report is prepared for the Risk and Control Committee and the Audit Committee. The Group's top tier risks are presented in a heat map which provides a dynamic and forward-looking picture of the Group's risk position. The changes in risk profile since the last review, the corresponding key controls and risk treatment plans, as well as the targeted risk positions upon the completion of risk treatment plans with specified time frame are highlighted in the ERM reports. The potential/ expected trend of certain risks, such as emerging risk, is also indicated on the heat map.

Annual Report 2020	Sino Land Company Limited		85

Risk management report (Continued)

Principal risks to the group

The principal risks faced by the Group include the following:

Risk	Risk	Risk
category	description	movement*
Strategic	Changing market
risk	sentiment caused
	by uncertainties in
	macro-economic
	and political
	outlook, changes in
	government policies

Key controls/ mitigation measures

• Closely monitoring market situation and adopting appropriate strategies promptly
• Stress test for different scenarios
• Regular performance review of individual business units/projects
• Maintaining sound financial position
• Closely monitoring the situation of public protests and civil unrest and taking the appropriate measures including but not limited to cost control.

Changes in the competition landscape regarding property development in Hong Kong, e.g. new competitors, increasing land cost, challenges in land acquisition

Operational Rising costs,

risk including construction costs and operating costs

• Selective land bank replenishment to optimize earning potential
• Careful consideration of business cases before commitment, studies on market transactions, joint venture partnership if necessary
• Regular review of our properties, asset enhancement where necessary
• Continued effort to improve quality of products and services to strengthen our brand and market position
• Investments in Mainland China, Singapore and Australia
• Budgetary control mechanism established
• Analysis and benchmarking of construction and operating costs
• Tender/quotation procedures in place to ensure best prices are achieved through competitive bidding
• Broadening contractor/supplier base
• Ongoing enhancement of efficiency and productivity

86		Sino Land Company Limited	Annual Report 2020

Risk management report (Continued)

Principal risks to the group (Continued)

Risk	Risk	Risk	Key controls/
category	description	movement*	mitigation measures

Operational Cyber security risk

(Continued)

Fraud

Disaster event, e.g. pandemic, terrorist attack, civil unrest

• Implementation of security measures such as firewall, anti-spam and anti-virus protection
• Ongoing review of IT infrastructure and systems and the need for upgrade/enhancement
• Internal communication and training on cyber-attack threats
• Employment of IT Security Manager to focus on security issues
• Set up of emergency incident response team to handle imminent threat of cyber-attack
• Upgrade of the network service for contingency
• Engagement of independent consultant to perform penetration tests and to assess the cybersecurity risks
• High commitment to ethical values with "integrity" as one of our core values
• Code of Conduct covering prevention of bribery
• Whistle-blowingand staff grievance procedures in place
• Regular reinforcement of our core value of "integrity" to staff and external stakeholders (including contractors and suppliers) through training and communication
• Policies and procedures incorporating proper segregation of duties with checks and balances
• System of approved contractor and supplier lists with performance evaluation and business concentration monitoring mechanism
• Comprehensive insurance coverage for our properties and business operations
• Contingency plans developed for critical business processes/ functions and accounting system recovery drill performed
• Taking immediate response actions, e.g. stepping up hygiene measures during COVID-19 pandemic
• Special work arrangement (e.g. flexible working hours; and splitting of the team to work on different floors/locations)

For the financial risks of the Group, please refer to "Notes to the Consolidated Financial Statements" on pages 202 to 211.

• Key - Risk Movement (change from last year)

ﾠ Risk rating increased

ﾠ Risk rating remained broadly the same

Annual Report 2020	Sino Land Company Limited		87

Risk management report (Continued)

Principal risks to the group (Continued) Integration of risk management with internal control system

Apart from the above principal risks, other specific emerging risks have also been identified and kept under regular monitoring and review. In particular, the Group has identified and focused on the "technology strategic risk". Technology is advancing exponentially and disrupting the status quo. It is crucial that we can anticipate trends and adopt the appropriate technologies so as to maintain our competitiveness, market share, and branding position. The Group has signed a strategic memorandum of understanding with China Mobile Hong Kong Limited to develop a pre-5G infrastructure across the Group's residential and commercial properties. As at 30th June, 2020, 5G infrastructure has been installed in 4 of the Group's residential and commercial properties. This partnership, encompassing Smart Home, Smart Shopping Mall, and Smart Property Management, supports Hong Kong's transformation into a "smart city". Moreover, Sino Inno Lab was launched in September 2018 as a real-life incubator platform to try out new ideas.

Risk management is closely linked to the Group's Internal Control Framework. Key controls for mitigating high risk items identified in the ERM process are subject to independent reviews and tests by the Internal Audit Department in order to assess their adequacy and effectiveness. Details of the internal control system are set out in the "Corporate Governance Report" on pages 71 to 73.

Review of the effectiveness of risk management and internal control systems

During the year, the Audit Committee, on behalf of the Board, has reviewed the effectiveness of the Group's risk management and internal control systems. Details of the aforesaid review of effectiveness are described in the "Corporate Governance Report" on page 73.

88		Sino Land Company Limited	Annual Report 2020

Directors' report

The Directors present their annual report and the audited consolidated financial statements of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 30th June, 2020.

Principal activities

The Company acts as an investment holding company. The principal activities of its principal subsidiaries are set out in Note 51 to the consolidated financial statements.

Business review

A review of the business of the Group during the year and a discussion on the Group's future business development are provided in the Chairman's Statement on pages 8 to 16 of this Annual Report. Description of possible risks and uncertainties that the Group may be facing can be found in the Risk Management Report on pages 82 to 88. Also, the financial risk management objectives and policies of the Group can be found

in Note 47 to the consolidated financial statements. Particulars of important events affecting the Group that have occurred since the end of the financial year ended 30th June, 2020, if any, are provided in the Notes to the consolidated financial statements. An analysis of the Group's performance during the year using financial key performance indicators is provided in the Group Financial Summary on pages 4 to 7 of this Annual Report.

The Group has set up proper procedures to ensure adherence to the relevant laws and regulations which have a significant impact on the Group in conduct of its business, including but not limited to the Residential Properties (First-hand Sales) Ordinance, Competition Ordinance, Personal Data (Privacy) Ordinance, Minimum Wage Ordinance, Employment Ordinance and Occupational Safety and Health Ordinance in Hong Kong. The Group also complies with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules"), the applicable companies laws and the Securities and

Futures Ordinance ("SFO"). Any new enactment of or changes in the relevant laws and regulations would be communicated to the relevant departments and staff to ensure compliance. Reminders on the compliance would also be sent out regularly where necessary.

Discussions on the Group's environmental policies, performance and relationships with its key stakeholders are contained in the Sustainable Development on pages 56 to 62 and the Company's Sustainability Report to be published on the Company's website. No incident of non-compliance to environmental laws and regulations that has a significant impact on the Group was recorded for the financial year ended 30th June, 2020.

Results and appropriations

The results of the Group for the year are set out in the consolidated statement of profit or loss on page 116.

An interim dividend of HK14 cents per share amounting to HK$974,251,863, including HK$168,467,201 by way of cash dividends and HK$805,784,662 by way of scrip alternatives, was paid to the shareholders during the year. The Directors now recommend the payment of a final dividend of HK41 cents per share amounting to HK$2,888,515,165 payable to shareholders whose names appear on the Register of Members of the Company on 4th November, 2020.

Major properties

Details of the major properties of the Group at 30th June, 2020 are set out on pages 232 to 243.

Subsidiaries, associates and joint ventures

Details of the Company's principal subsidiaries, associates and joint ventures at 30th June, 2020 are set out in Notes 51, 52 and 53 to the consolidated financial statements, respectively.

Annual Report 2020	Sino Land Company Limited		89

Directors' report (Continued)

Share capital

Name of Director

Details of shares issued by the Company during the year are set out in Note 35 to the consolidated financial statements. The shares issued during the year were in lieu of cash dividends.

Purchase, sale or redemption of the Company's listed securities

Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities of the Company during the year.

The Directors of the Company during the year and up to the date of this report are:

Executive Directors

Mr. Robert Ng Chee Siong (Chairman)

Mr. Daryl Ng Win Kong (Deputy Chairman) Mr. Ringo Chan Wing Kwong

Mr. Gordon Lee Ching Keung Mr. Sunny Yeung Kwong

Mr. Thomas Tang Wing Yung (appointed on 15th January, 2020) Ms. Velencia Lee (appointed on 1st July, 2019 and

resigned on 1st May, 2020)

Distributable reserves of the Company

The Company's reserves available for distribution to shareholders as at 30th June, 2020 were the retained profits of HK$20,974,221,187 (2019: HK$20,351,123,662).

Treasury, group borrowings and interest capitalised

The Group maintains a prudent approach in its treasury management with foreign exchange exposure being kept at a minimal level and interest rates on a floating rate basis. Bank borrowings repayable within one year are classified as current liabilities. Repayment analysis of bank borrowings as at 30th June, 2020 are set out in Note 34 to the consolidated financial statements.

Interest expenses capitalised by the Group during the year in respect of properties under development amounted to HK$107,790,738 (2019: HK$74,471,973).

Non-Executive Director

The Honourable Ronald Joseph Arculli

Independent Non-Executive Directors

Dr. Allan Zeman

Mr. Adrian David Li Man-kiu

Mr. Steven Ong Kay Eng

Mr. Wong Cho Bau

In accordance with the Company's Articles of Association and pursuant to Appendix 14 to the Listing Rules, Mr. Robert Ng Chee Siong, Mr. Adrian David Li Man-kiu and Mr. Thomas Tang Wing Yung will retire at the forthcoming Annual General Meeting and, who being eligible, will offer themselves for re-election. Mr. Sunny Yeung Kwong will also retire at the forthcoming Annual General Meeting but will not offer himself for re-election.

The list of directors who have served on the boards of the subsidiaries of the Company included in the annual consolidated financial statements for the financial year ended 30th June, 2020 during the year and up to the date of this report is available on the Company's website at www.sino.com under Corporate Governance of the Investor Relations section.

90		Sino Land Company Limited	Annual Report 2020

Directors' report (Continued)

Directors' interests

As at 30th June, 2020, the interests and short positions held by the Directors of the Company in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO), as recorded in the register required

to be kept by the Company under Section 352 of the SFO or otherwise notified to the Company and The Stock Exchange of Hong Kong Limited ("Stock Exchange") pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") contained in the Listing Rules, were as follows:

(a) Long positions in shares of the Company

Name of Director	Number of	Capacity and	% of
	ordinary shares	nature of interest	issued shares

Mr. Robert Ng Chee Siong	4,044,997,320
	(Note)

The Honourable Ronald Joseph Arculli	1,191,997
Dr. Allan Zeman	－
Mr. Adrian David Li Man-kiu	－
Mr. Steven Ong Kay Eng	－
Mr. Wong Cho Bau	－
Mr. Daryl Ng Win Kong	133,107
Mr. Ringo Chan Wing Kwong	200,000
Mr. Gordon Lee Ching Keung	－
Mr. Sunny Yeung Kwong	－
Mr. Thomas Tang Wing Yung	－
Note:

Beneficial owner of 232,218 shares, spouse interest in 4,968,916 shares and trustee interest in 4,039,796,186 shares in the capacity as one of the co-executors of the estate of the late Mr. Ng Teng Fong

Beneficial owner

－

－

－

－

Beneficial owner

Beneficial owner

－

－

－

57.41%

0.01%

－

－

－

－

≃ 0% ≃ 0%

－

－

－

The trustee interest in 4,039,796,186 shares comprises:

1. 1,729,155,449 shares which were held by Tsim Sha Tsui Properties Limited, which was 72.03% controlled by the co-executors of the estate of the late Mr. Ng Teng Fong;
2. (i) 53,498,941 shares which were held by Orchard Centre Holdings (Private) Limited, in which Nam Lung Properties Development Company Limited, a wholly-owned subsidiary of Tsim Sha Tsui Properties Limited, had a 95.23% control; and
3. 1. 2,079,729,979 shares which were held through wholly-owned subsidiaries of Tsim Sha Tsui Properties Limited;
4. 130,735,359 shares which were held through companies 100% controlled by the co-executors of the estate of the late Mr. Ng Teng Fong, namely, 216,604 shares by Fanlight Investment Limited, 209,024 shares by Garford Nominees Limited, 47,040,037 shares by Karaganda Investments Inc., 20,288,166 shares by Orient Creation Limited, 9,860,538 shares
   by Strathallan Investment Limited, 29,719,860 shares by Strong Investments Limited, 22,774,379 shares by Tamworth Investment Limited and 626,751 shares by Transpire Investment Limited; and
5. 46,676,458 shares which were held by the co-executors of the estate of the late Mr. Ng Teng Fong.

Annual Report 2020	Sino Land Company Limited		91

Directors' report (Continued)

Directors' interests (Continued)

(b)Long positions in shares of associated corporations

(i) Holding Company

Tsim Sha Tsui Properties Limited

Name of Director	Number of	Capacity and	% of
	ordinary shares	nature of interest	issued shares

Mr. Robert Ng Chee Siong	1,363,983,874
	(Note)

The Honourable Ronald Joseph Arculli	60,000
Dr. Allan Zeman	－
Mr. Adrian David Li Man-kiu	－
Mr. Steven Ong Kay Eng	－
Mr. Wong Cho Bau	－
Mr. Daryl Ng Win Kong	－
Mr. Ringo Chan Wing Kwong	－
Mr. Gordon Lee Ching Keung	－
Mr. Sunny Yeung Kwong	－
Mr. Thomas Tang Wing Yung	－
Note:

Beneficial owner of 732,493 shares and trustee interest in 1,363,251,381 shares in the capacity as one of the co-executors of the estate of the late Mr. Ng Teng Fong

Beneficial owner

－

－

－

－

－

－

－

－

－

72.07%

• 0%
  －
  －
  －
  －
  －
  －
  －
  －
  －

The trustee interest in 1,363,251,381 shares comprises:

1. 1,255,660,102 shares which were held through companies 100% controlled by the co-executors of the estate of the late Mr. Ng Teng Fong, namely, 130,149,144 shares by Fanlight Investment Limited, 176,371,078 shares by Nippomo Limited, 4,052,817 shares by Orient Creation Limited, 346,884,800 shares by Strathallan Investment Limited, 517,646,313 shares by Tamworth Investment Limited and 80,555,950 shares by Transpire Investment Limited; and
2. 107,591,279 shares which were held by the co-executors of the estate of the late Mr. Ng Teng Fong.

92		Sino Land Company Limited	Annual Report 2020

Directors' report (Continued)

Directors' interests (Continued)

(b)Long positions in shares of associated corporations (Continued)

(ii) Associates and joint ventures

Mr. Robert Ng Chee Siong was deemed to be interested in shares of the following companies through corporations controlled by him:

Name of Company	Number of		% of
	ordinary shares	issued shares
Brighton Land Investment Limited	1,000,002	(Notes 1 and 2)	100%
Empire Funds Limited	1	(Notes 1 and 3)	50%
Erleigh Investment Limited	110	(Notes 1 and 3)	55%
Eternal Honest Finance Company Limited	1	(Notes 1 and 3)	50%
Famous Empire Properties Limited	5,000	(Notes 1 and 4)	50%
FHR International Limited	1	(Note 5)	33.33%
Island Resort Estate Management Company Limited	10	(Notes 1 and 3)	50%
Jade Result Limited	500,000	(Notes 1 and 3)	50%
Murdoch Investments Inc.	2	(Notes 1 and 2)	100%
Real Maker Development Limited	20,000	(Notes 1 and 6)	10%
Rich Century Investment Limited	500,000	(Notes 1 and 3)	50%
Sea Dragon Limited	70	(Notes 1 and 3)	70%
Silver Link Investment Limited	10	(Notes 1 and 3)	50%
Sino Club Limited	2	(Note 7)	100%
Sino Parking Services Limited	450,000	(Note 8)	50%
Sino Real Estate Agency Limited	50,000	(Note 8)	50%

Notes:

1. Osborne Investments Ltd. ("Osborne") was a wholly-owned subsidiary of Seaview Assets Limited which was in turn 100% owned by Boswell Holdings Limited in which Mr. Robert Ng Chee Siong had a 50% control.
2. The shares were held by Erleigh Investment Limited, a company 55% controlled by Osborne.
3. The share(s) was (were) held by Osborne.
4. The shares were held by Standard City Limited, a wholly-owned subsidiary of Osborne.
5. The share was held by Smart Link Limited in which Mr. Robert Ng Chee Siong had a 100% control.
6. The shares were held by Goegan Godown Limited, a wholly-owned subsidiary of Osborne.
7. The shares were held by Sino Real Estate Agency Limited, a company 50% controlled by Deansky Investments Limited in which Mr. Robert Ng Chee Siong had a 100% control.
8. The shares were held by Deansky Investments Limited.

Save as disclosed above, as at 30th June, 2020, none of the Directors had or was deemed to have any interests or short positions in the shares, underlying shares or debentures of the Company or its associated

corporations which were recorded in the register required to be kept by the Company under Section 352 of the SFO or required to be notified to the Company and the Stock Exchange pursuant to the Model Code.

Annual Report 2020	Sino Land Company Limited		93

Directors' report (Continued)

Share option schemes

The Company and its subsidiaries have no share option schemes.

Arrangement to purchase shares or debentures

At no time during the year was the Company, its holding company, any of its subsidiaries or fellow subsidiaries a party to any arrangements to enable the Directors

of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Directors' interests in competing businesses

Pursuant to Rule 8.10(2) of the Listing Rules, the Company discloses that during the year, the following current Directors held share interests and/or directorships in companies engaged in businesses which compete or likely to compete, either directly or indirectly, with the businesses of the Group:

Mr. Robert Ng Chee Siong and Mr. Daryl Ng Win Kong held share interests and directorships and Mr. Ringo Chan Wing Kwong held directorships in companies of the Ng Family (including Mr. Robert Ng Chee Siong, Mr. Philip Ng Chee Tat, and as co-executors of the estate of the late Mr. Ng Teng Fong and/or their respective associates) which engage in businesses of property investment, development and management and hotel operation.

The Honourable Ronald Joseph Arculli is a Non-Executive Director of HKR International Limited, which engages in businesses of property investment, development and management and hotel operation.

As the Board of Directors of the Company is independent of the boards of the aforesaid companies and maintains four Independent Non-Executive

Directors, the Group operates its businesses independently of, and at arm's length from, the businesses of the aforesaid companies.

Directors' material interests in transactions, arrangements or contracts

Apart from the transactions disclosed under the heading "Related Party Disclosures" as set out in Note 49 to the consolidated financial statements, there were no other transactions, arrangements or contracts of significance in relation to the Group's business to which the Company, its holding company, any of its subsidiaries or fellow subsidiaries was a party and in which a Director of the Company or his connected entities had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year.

Permitted indemnity provision

Pursuant to the Company's Articles of Association, every Director shall be entitled to be indemnified out of the assets of the Company against all losses or liabilities (to the fullest extent permitted by the Companies Ordinance) which he may sustain or incur in or about the execution of the duties of his office or otherwise in relation thereto. The Company has arranged appropriate directors' and officers' liability insurance coverage for the Directors and officers of the Group during the year, which remains in force.

Service contracts

None of the Directors of the Company has a contract of service with the Company, its holding company, any of its subsidiaries or fellow subsidiaries not determinable by the employing company within one year without payment of compensation (except for statutory compensation).

94		Sino Land Company Limited	Annual Report 2020

Directors' report (Continued)

Connected transactions

Continuing connected transactions for the year ended 30th June, 2020

The Company and its holding company, Tsim Sha Tsui Properties Limited ("TST Properties"), jointly announced on 28th June, 2019 that the Company and/or its subsidiaries ("Group") had entered into agreements

on 28th June, 2019 ("Agreements" or individually, "Agreement") relating to the following continuing

connected transactions between the Group and the Ng Family (including Mr. Robert Ng Chee Siong, Mr. Philip Ng Chee Tat, and as co-executors of the estate of the late Mr. Ng Teng Fong, and/or their respective associates) for the three financial years commencing from 1st July, 2019 and ending on 30th June, 2022 with annual caps fixed for each of the years. Applicable particulars of the Agreements together with the total amount received/paid in respect of the transactions for the year ended 30th June, 2020 are disclosed herein as required under the Listing Rules:

Nature of	Parties to	Nature of	Basis of	Applicable	Total amount
services	the transactions	transactions	consideration	annual cap(s)	received/paid for
provided under				under	the year ended
the Agreement				the Agreement	30th June, 2020

1. Building cleaning	Service provider	Provision of building
services	Best Result Environmental	cleaning services and
	Services Limited, a	cleaning consultancy
	wholly-owned subsidiary	services by the Group
	of the Company	to properties developed/
		owned/partly owned or
	Service recipient	to be developed/owned/
	Ng Family	partly owned by the
		Ng Family

A lump sum fee to be agreed between the parties which shall be determined by reference to cost plus a profit margin ranging from approximately 5% to 25% of the amount thereof, payable in monthly instalments in arrears on the last day of each month.

The parties will take into account factors such as the size, nature of the building, location, complexity of the work, image, competition and length of the contract in determining the lump sum fee under each individual contract in respect of the services contemplated thereunder

The aggregate	HK$112.99
amount payable by	million
the relevant members
of the Ng Family
under the Agreement
shall not exceed:

1. HK$180 million for the period from 1st July, 2019 to 30th June, 2020;
2. HK$198 million for the period from 1st July, 2020 to 30th June, 2021; and
3. HK$218 million for the period from 1st July, 2021 to 30th June, 2022

Annual Report 2020	Sino Land Company Limited		95

Directors' report (Continued)

Connected transactions (Continued)

Continuing connected transactions for the year ended 30th June, 2020 (Continued)

Nature of	Parties to	Nature of	Basis of	Applicable	Total amount
services	the transactions	transactions	consideration	annual cap(s)	received/paid for
provided under				under	the year ended
the Agreement				the Agreement	30th June, 2020

2. Car park	Service provider
management	Sino Parking Services
services	Limited ("SPSL"), a
	company held as to 50%
	by the Company and 50%
	by the Ng Family

Service recipient

Group

Provision of car park management services by SPSL and/or members of the Ng Family to properties owned/ developed or to be owned/developed by the Group

A lump sum fee to be agreed between the parties which shall be determined by reference to a rate of approximately 16% to 20% of the total gross revenue generated from car parking operations in the relevant properties managed by SPSL and/or the relevant member of the

Ng Family, payable in half-yearly instalments in arrears on the last day of each half year. The parties will take into account factors such as the size, nature of the building, location, complexity of the work, image, competition and length of the contract in determining the lump sum fee under each individual contract in respect of the services contemplated thereunder

The aggregate	HK$32.19 million
amount payable by
the relevant members
of the Group under
the Agreement shall
not exceed:
(i) HK$57 million for
the period from
1st July, 2019 to
30th June, 2020;
(ii) HK$65 million for
the period from
1st July, 2020 to
30th June, 2021;
and
(iii) HK$79 million for
the period from
1st July, 2021 to
30th June, 2022

96		Sino Land Company Limited	Annual Report 2020

Directors' report (Continued)

Connected transactions (Continued)

Continuing connected transactions for the year ended 30th June, 2020 (Continued)

Nature of	Parties to	Nature of	Basis of	Applicable	Total amount
services	the transactions	transactions	consideration	annual cap(s)	received/paid for
provided under				under	the year ended
the Agreement				the Agreement	30th June, 2020

3. Estate	Service provider	Provision of estate
management	Sino Estates Management	management services,
and general	Limited ("SEML"), a	life-style services, home
administrative	wholly-owned subsidiary	maintenance services,
services	of the Company	courtesy services and
		general administrative
	Service recipient	services by the Group
	Ng Family	to properties developed/
		owned/partly owned or
		to be developed/owned/
		partly owned by the
		Ng Family

A lump sum fee to be agreed between the parties which shall be a fixed sum or determined by reference to a rate of approximately 2% to 15% of the management expenditure as shown in the annual budget of, or actually incurred by, the relevant member of the Ng Family in respect of the properties managed by SEML, payable by periodic instalments (for example, monthly, quarterly or half-yearly) in advance or in arrears. The parties will take into account factors such as the size, nature of the building, location, complexity of the work, image, competition and length of the contract in determining the lump sum fee under each individual contract in respect of the services contemplated thereunder

The aggregate	HK$25.36 million
amount payable by
the relevant members
of the Ng Family
under the Agreement
shall not exceed:
(i) HK$52 million for
the period from
1st July, 2019 to
30th June, 2020;
(ii) HK$57 million for
the period from
1st July, 2020 to
30th June, 2021;
and
(iii) HK$63 million for
the period from
1st July, 2021 to
30th June, 2022

Annual Report 2020	Sino Land Company Limited		97

Directors' report (Continued)

Connected transactions (Continued)

Continuing connected transactions for the year ended 30th June, 2020 (Continued)

Nature of	Parties to	Nature of	Basis of	Applicable	Total amount
services	the transactions	transactions	consideration	annual cap(s)	received/paid for
provided under				under	the year ended
the Agreement				the Agreement	30th June, 2020

4. Security services Service provider Sino Security Services Limited, a wholly-owned subsidiary of the Company

Service recipient

Ng Family

Provision of security services by the Group to properties developed/ owned/partly owned or to be developed/owned/ partly owned by the Ng Family

A lump sum fee to be agreed between the parties which shall be determined by reference to cost plus a profit margin ranging from approximately 5% to 25% of the amount thereof, payable in monthly instalments in arrears on the last day of each month.

The parties will take into account factors such as the size, nature of the building, location, complexity of the work, image, competition and length of the contract in determining the lump sum fee under each individual contract in respect of the services contemplated thereunder

The aggregate	HK$89.90 million
amount payable by
the relevant members
of the Ng Family
under the Agreement
shall not exceed:

1. HK$131 million for the period from 1st July, 2019 to 30th June, 2020;
2. HK$144 million for the period from 1st July, 2020 to 30th June, 2021; and
3. HK$158 million for the period from 1st July, 2021 to 30th June, 2022

98		Sino Land Company Limited	Annual Report 2020