Q1

What are Wharf's main businesses?

A1

The Group has a strategic focus on property and infrastructure in Hong Kong and the Mainland. The "Heart of the Group" is Harbour City and Times Square in Hong Kong which together represent 47% of the Group's total assets and 58% of total operating profit in the first half of 2009. They easily outperformed the general economy. In the first half of 2009, total retail sales at Harbour City rose by 7% year-on-year, which was over 11 percentage points better than the 4.5% decline for that of Hong Kong as a whole. Harbour City and Times Square consistently account for about 7% of the total value of all goods sold in the entire Hong Kong.

"Building for Tomorrow" is the Group's mission. The dependability of cashflow from the "Heart of the Group" has enabled the Group to re-invest to build a new "Tomorrow" for the future. That new "Tomorrow" is clearly in Mainland China.

In properties, the Group has over the years acquired numerous sites in Mainland for development. As at the end of 2008, the Group's attributable landbank and investment properties came close to our interim target of 100 million square feet of gross floor area. The Group remains enthusiastic about the fundamental outlook for the real estate market in the Mainland. Urbanization is the theme for the next 20 years. Close to 300 million people are anticipated to be moving into the cities. The Group's overall development portfolio is expected to generate attractive returns to the Group in the coming years. In particular, International Finance Centre in Chengdu, Sichuan, the Group's next flagship, will be comparable in significance, mix and scale to Harbour City in Hong Kong. Chengdu is the up and coming business hub at the heart of Western China and has a population of 11 million to trail only Beijing, Shanghai and Chongqing. The project, as the top location in the city's main commercial district, aims to quickly become the "Best of the West" as the new shopping hub for not only Chengdu but the entire Western region.

Through Hong Kong-based Modern Terminals, which maintained a market share of 33.3% in Kwai Tsing in 2008, the Group is developing new container terminals in the two largest manufacturing regions (Pearl River Delta and Yangtze River Delta) in China, as well as targeting other new projects along the China Coast.

Q2

What is the Group's strategy towards asset split between Hong Kong and China?

A2

With its expansion in China on properties and ports, the Group aims to have 50% of its total assets in the Mainland in the next few years.

Q3

How big is the Group's investment property portfolio?

A3

The Group's property investment portfolio totals 15.8 million square feet, represented primarily by Harbour City (8.4 million square feet) and Times Square (2.0 millions square feet).

Q4

Could you describe more on the Group's two core properties?

A4

Harbour City and Times Square in Hong Kong are the "Heart of the Group" outperforming the general economy. In the first half of 2009, total retail sales at Harbour City rose by 7% year-on-year, which was over 11 percentage points better than the 4.5% decline for that of Hong Kong as a whole. Harbour City and Times Square consistently account for about 7% of the total value of all goods sold in the entire Hong Kong.

Harbour City is the Group's flagship property comprising offices, serviced apartments, hotels, club and the city's largest shopping centre, situated in the commercial hub of Tsim Sha Tsui. It is the largest "shoppertainment" destination in town with an 18% year-on-year growth in average sales per square foot in 2008. Shoppers' foot traffic for the year grew by 7% to 80 million and total sales in 2008 set a new record at HK$13.4 billion. Harbour City has been a hub for international luxury fashion brands in Hong Kong and remained one of the most sought-after shopping malls for retailers. Louis Vuitton, in March 2008, expanded its store at Harbour City to three levels, which made it the second largest LV store in the world after the main store at Champs Elysees in Paris, France. Hermès boutique in December 2008 opened a store of 5,300 square feet along Canton Road. Riding on its excellent retail management, win-win tenant-landlord partnership concept and constant trade-mix enhancement, Harbour City performed solidly despite the deteriorating economic environment. Good clustering and segmenting review, together with powerful marketing and promotion programmes including the Christmas festive decorations and Chinese New Year decorations, enable Harbour City to continuously excel and stay ahead in the marketplace.

Times Square is another core investment property asset of the Group which comprises offices and a shopping centre. As a must-visit shopping landmark in Causeway Bay, Times Square strived to stay competitive in the marketplace through its constant trade-mix enhancement, strong branding and marketing programmes including its popular annual Apple Countdown. Times Square, over the years, supported and organized exhibitions of both local artists and world-renowned art masters including Ju Ming, Huang Yong Yu and Jimmy Liao and has evolved itself as an art and cultural hub.

Q5

What is the size of the Group's property portfolio in China and which cities are being covered? Is there any target size being set? Is the Group developing any local base in the Mainland?

A5

The Group has over the years acquired numerous sites in various Mainland cities for development. As at the end of 2008, the Group's attributable land bank of development and investment properties came close to our interim target of 100 million square feet of gross floor area. In early 2009, the Group has initiated a deliberate process of localization in an effort to establish substantial local business bases in the Mainland. The Group believes strongly this would empower the Group to compete more effectively in the future with leading local property developers there.

Q6

What's the latest throughput handled by Modern Terminals? What kind of port investment does Modern Terminals have in China?

A6

For 2008, Modern Terminals' throughput in Kwai Ching grew by 3% year-on-year to 5.9 million TEUs and maintained a market share of 33.3% in Kwai Tsing, on the back of an increase in Intra-Asia services and South America services being partially offset by the decline in Europe and Middle East volume. In addition to Hong Kong port business, Modern Terminals already had a strong foothold in the two largest manufacturing regions (Pearl River Delta and Yangtze River Delta) through investment in Chiwan Container Terminal and Shekou Container Terminals (both in Shenzhen), and new terminal projects in Taicang (Suzhou) and Dachan Bay (Shenzhen). Strategic framework agreements have been signed with Dalian Port (PDA) Co., Ltd and the Dalian Municipal Government (Liaoning) and Zhoushan Port Authority (Zhejiang). These agreements, along with further expansion at the existing terminals in Taicang and Dachan Bay, will affirm Modern Terminals' strong positioning in Greater China.

Q7

What is the Group's policy towards its non-core properties?

A7

The Group has a policy to dispose of those non-core properties when opportunity arises.

Q8

What's the size of i-CABLE's subscriber base?

A8

As of the end of June 2009, the subscriber base of Pay TV and Broadband were 947,000 and 260,000 respectively.

Q9

How many installed fixed lines in total does Wharf T&T have?

A9

As of the end of June 2009, Wharf T&T's installed base of fixed lines was 632,000, representing an overall market share of 12%.