Great Eagle : 2016 Annual Report

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The Great Eagle Group is one of Hong Kong's leading property companies; the Group also owns and manages an extensive international hotel portfolio branded under The "Langham" and its affiliate brands. Headquartered in Hong Kong, the Group develops, invests in and manages high quality residential, office, retail and hotel properties in Asia, North America, Australasia and Europe.

The Group's principal holdings include a 65.5% interest (as at 31 December 2016) in Champion Real Estate Investment Trust, and a 61.9% interest (as at 31 December 2016) in Langham Hospitality Investments and Langham Hospitality Investments Limited (LHI). Champion Real Estate Investment Trust owns 1.64 million square feet of Grade-A commercial office space in Three Garden Road (formerly known as Citibank Plaza) in the central business district of Hong Kong, as well as the office tower and shopping mall of Langham Place comprising a total floor area of 1.29 million square feet in the prime shopping district of Mongkok, Kowloon. As for LHI, it owns three high quality hotels in the heart of Kowloon, the 498-room The Langham hotel in the prime shopping district of Tsimshatsui, the 668-room Cordis hotel (rebranded from Langham Place hotel) in the prime shopping area of Mongkok and connected to the Langham Place Office and Mall, and the 465-room Eaton hotel located on the busy arterial Nathan Road.

CORPORATE

PROfilE

The Group's development projects include a luxury residential development project in Pak Shek Kok, Tai Po, Hong Kong, two development projects in San Francisco, U.S., a development project in Seattle, U.S. and a hotel development project in Tokyo, Japan. The Group also owns a 50.0% equity stake in the U.S. Real Estate Fund, which invests in office properties and residential developments in the U.S. The Group's share of net asset value in the U.S. Real Estate Fund amounted to HK$423 million as at the end of 2016. In addition, the Group is the asset manager of the U.S. Real Estate Fund with an 80% stake in the asset management company of the Fund. The Group is also active in property management and maintenance services as well as building materials trading.

The Group's extensive international hotel portfolio currently comprises twenty-one luxury properties with more than 8,000 rooms, including eighteen luxury hotels branded under The Langham, Langham Place or Cordis brands in the gateway cities of Hong Kong, London, New York, Chicago, Boston, Los Angeles, Sydney, Melbourne, Auckland, Shanghai, Beijing, Shenzhen, Guangzhou, Haining, Haikou, Ningbo and Xiamen; two Eaton hotels in Washington D.C. and Hong Kong; and the Chelsea hotel in Toronto. All the hotels are managed by Langham Hotels International Limited, which is a wholly-owned subsidiary of Great Eagle.

The Group was founded in 1963 with The Great Eagle Company, Limited as its holding company, shares of which were listed on the Hong Kong Stock Exchange in 1972. The Group underwent a re-organisation in 1990 and Great Eagle Holdings Limited, a Bermuda registered company, became the listed company of the Group in place of The Great Eagle Company, Limited.

The Group had a core profit after tax of approximately HK$2,022 million in the financial year 2016 and a net asset value (based on share of net assets of Champion Real Estate Investment Trust and LHI) of approximately HK$65 billion as of 31 December 2016.

CONTENTS

Corporate Information 2

Dividend Notice 3

Financial Highlights and Financial Calendar 4

Chairman's Statement 7

Overview Business Review Financial Review Outlook

Corporate Social Responsibility 26

Biographical Details of Directors and Senior Management 47

Corporate Governance Report 55

Report of the Directors 79

Independent Auditor's Report 101

Consolidated Income Statement 106

Consolidated Statement of Comprehensive Income 107

Consolidated Statement of Financial Position 108

Consolidated Statement of Changes in Equity 110

Consolidated Statement of Cash Flows 113

Notes to the Consolidated Financial Statements 116

Appendix I - List of Major Properties 212

Appendix II - Five Years' Financial Summary 218

Glossary of Terms 219

GREAT EAGLE HOLDINGS LIMITED Annual Report 2016

CORPORATE INFORMATION

DIRECTORS

LO Ka Shui (Chairman and Managing Director)

LO Kai Shui (Deputy Managing Director) LO TO Lee Kwan#

CHENG Hoi Chuen, Vincent* WONG Yue Chim, Richard* LEE Pui Ling, Angelina*

LEE Siu Kwong, Ambrose* POON Ka Yeung, Larry* LO Hong Sui, Antony LAW Wai Duen

LO Hong Sui, Vincent# LO Ying Sui#

LO Chun Him, Alexander

KAN Tak Kwong (General Manager) CHU Shik Pui

# Non-executive Directors

* Independent Non-executive Directors

AUDIT COMMITTEE

CHENG Hoi Chuen, Vincent (Chairman)

WONG Yue Chim, Richard LEE Pui Ling, Angelina

LEE Siu Kwong, Ambrose

REMUNERATION COMMITTEE

LEE Pui Ling, Angelina (Chairman)

CHENG Hoi Chuen, Vincent WONG Yue Chim, Richard LEE Siu Kwong, Ambrose

NOMINATION COMMITTEE

WONG Yue Chim, Richard (Chairman)

CHENG Hoi Chuen, Vincent LEE Pui Ling, Angelina

LEE Siu Kwong, Ambrose POON Ka Yeung, Larry

FINANCE COMMITTEE

LO Ka Shui (Chairman)

LO Kai Shui KAN Tak Kwong

COMPANY SECRETARY

WONG Mei Ling, Marina

AUDITOR

Deloitte Touche Tohmatsu

LEGAL ADVISORS

Appleby

Clifford Chance Dentons US LLP Mayer Brown JSM Shartsis Friese LLP

PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited

Citibank, N.A.

Hang Seng Bank Limited

The Hongkong and Shanghai Banking Corporation Limited

REGISTERED OFFICE

Canon's Court, 22 Victoria Street

Hamilton HM12 Bermuda

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

33rd Floor, Great Eagle Centre

23 Harbour Road Wanchai, Hong Kong Tel: (852) 2827 3668

Fax: (852) 2827 5799

PRINCIPAL SHARE REGISTRAR

MUFG Fund Services (Bermuda) Limited

The Belvedere Building 69 Pitts Bay Road Pembroke HM08 Bermuda

BRANCH SHARE REGISTRAR IN HONG KONG

Computershare Hong Kong Investor Services Limited

Shops 1712-1716

17th Floor, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong

Email: hkinfo@computershare.com.hk

WEBSITE

www.GreatEagle.com.hk

STOCK CODE

41