NWS HOLDINGS LIMITED

1 NWS HOLDINGS LIMITED takes every practicable measure to conserve resources and minimize annual report is printed on FSC certified paper using chemistry free plate system and soy FSC logo identifies product group from responsible forestry in accordance with the rules of the Forest Stewardship Council .NWS HOLDINGS LIMITED (incorporated in Bermuda with LIMITED liability)28/F New World Tower18 Queen s Road CentralCentral, Hong KongTel : (852) 2131 0600 Fax : (852) 2131 0611E-mail : Report 2017 Connecting Lives Building FuturesNWS HOLDINGS LIMITED ANNUAL REPORT 2017 NWS HOLDINGS LIMITEDSTOCK CODE: 659To build a dynamic and premier group of infrastructure and service management companies driven by a shared passion for customer value and careVISIONNWS HOLDINGS LIMITED (Hong Kong stock code.)

2 659) is the infrastructure and service flagship of New World Development Company LIMITED (Hong Kong stock code: 17). Listed on the Hong Kong Stock Exchange, NWS HOLDINGS embraces a range of businesses predominately in Hong Kong and Mainland a workforce of over 28,000 people, NWS HOLDINGS is committed to achieving sustainable growth in its two core business areas of infrastructure and VALUES Reputable customer care Pride and teamwork Innovation Community contributions and environmental awareness Stakeholders interestDownload the NWS HoldingsAnnual Report 2017 Connecting Lives Building FuturesThe vibrant colours and design of this year s annual report represent the stable growth of our enterprise.

3 And the relationships that link our diverse business portfolio. Icons of the seven business segments lie at the heart of the circular image, symbolizing the focus of the Group s prudent development strategy. These business segments are linked by interconnecting shapes, which represent the synergies among them and the dynamism driving expansion. The Group s corporate tagline Connecting Lives Building Futures underpins our commitment to delivering strong, sustainable shareholder and stakeholder and develop business units that: Nurture total integrity Attain total customer satisfaction Foster learning culture and employee pride Build a world-class service provider brand Maximize financial returnsAbout NWS HoldingsNWS HOLDINGS LIMITEDSTOCK CODE.

4 659 Annual Report 2017 Connecting Lives Building Futures 2 Corporate Profile 4 Major Events and Accolades 6 Financial Highlights 8 Chairman s Statement 10 Q&A with CEO 12 Board of Directors and Senior management 24 Corporate Governance Report 51 Risk management 58 Sustainability 70 management Discussion and Analysis 88 Reports and Financial Statements 216 Five-Year Financial Summary 218 Project Key Facts and Figures 230 Glossary of Terms 232 Corporate InformationCONTENTSQINGXINJIANGHAI1 TIBETNWS HOLDINGS LIMITED2 INFRASTRUCTUREAs a leading infrastructure player in Mainland China, NWS HOLDINGS possesses an extensive business network in managing and operating 94 projects in four major segments, namely Roads, Environment.

5 Logistics and Aviation as at 30 June road portfolio comprises 16 roads and related projects in strategic locations in Hong Kong and Mainland network approximately599 km in lengthENVIRONMENTThis segment comprises water and wastewater treatment, waste management , renewable resource recycling and utilization, environmental remediation, as well as design, engineering and procurement services and energy related up to a total million cbmsof water and wastewater per day24,000 tonnesof waste per dayTotal installed capacity of power plants reaches1,820 MWLOGISTICSThe Group invests in a large-scale pivotal rail container terminal network and three ports in Mainland China.

6 And a logistics centre in Hong logistics centre offers total leasable area million sq ftHandling capacity of12 million TEUsper year for port projectsAVIATIONThe Group invests in Beijing Capital International Airport and develops commercial aircraft leasing business through two investment fleet of90 commercial aircraft on leaseAs at 30 June 2017 (Please refer to Project Key Facts and Figures on page 218 to page 229 for project details)Corporate Profi le111931-816122-310111, 4, 6 11111111, 4-5 JILINLIAONINGINNER MONGOLIANINGXIAGANSUSHAANXIHUBEIHUNANSHA NXIHEBEI Beijing Tianjin Shanghai ChongqingMacau Hong KongSHANDONGANHUIJIANGSUZHEJIANGJIANGXIF UJIANGUIZHOUSICHUANYUNNANGUANGXIGUANGDON GTAIWAN115111-14 111, 5 HAINAN1 HENAN11111-3111 Commercial aircraft on lease to worldwide airline operators ANNUAL REPORT 20173 SERVICESAs a pioneer in the services industry.

7 NWS HOLDINGS provides excellent services in supporting the needs of Hong Kong people and driving the city s MANAGEMENTThis segment mainly comprises the management and operation of Hong Kong Convention and Exhibition Centre, the businesses of Free Duty and Gleneagles Hong Kong million visitorsattended events at Hong Kong Convention and Exhibition Centre this yearCONSTRUCTION & TRANSPORTThe Group is dedicated to providing professional construction services and reliable public transport services in Hong bus and ferry fleets carry approximately millionpatronage per daySTRATEGIC INVESTMENTSThe segment includes Haitong International Securities Group LIMITED , Newton Resources Ltd, Tharisa plc.

8 Hyva Holding and other investments held by the Group for strategic investment Profi leNOVEMBER The Group s corporate volunteering team, the NWS Volunteer Alliance, celebrated its 15 years of community work involving more than 165,000 hours of social service to NWS HOLDINGS and Chow Tai Fook Enterprises LIMITED ( CTF Enterprises ) formed a 50/50 joint venture, Healthcare Assets management LIMITED , to develop healthcare services in Mainland China and Hong Kong. NWS HOLDINGS also acquired a 20% interest in UMP Healthcare China LIMITED to develop corporate healthcare solutions business in Mainland China.

9 The Group acquired the remaining 50% interest in NWS Transport Services LIMITED , which indirectly held the entire equity interest in New World First Bus Services LIMITED , Citybus LIMITED and New World First Ferry Services LIMITED ( NWFF ), from CTF Enterprises at a total consideration of approximately HK$ billion. NWS HOLDINGS and its member companies in Hong Kong received 10 awards at the seventh Hong Kong Corporate Citizenship Programme. Hong Kong Convention and Exhibition Centre was awarded Best Convention and Exhibition Centre in Greater China in the CEI Editors Choice industry excellence report, produced by CEI Asia magazine.

10 NWS HOLDINGS and its French partner SUEZ restructured their joint venture SUEZ NWS LIMITED ( SUEZ NWS ). The enlarged platform, in which NWS HOLDINGS owns 42% interest, provides a one-stop service for water, wastewater and waste The Group increased its stake in Goshawk Aviation LIMITED to 50% as part of its effort to expand its commercial aircraft leasing business. The Group was named a Distinguished Family-Friendly Employer 2015/16 with a Special Mention (Gold) Award by the Family NWS HOLDINGS was selected as a constituent stock of the Hang Seng Corporate Sustainability Benchmark Index for the sixth consecutive year.