Annual Report 2015
RISK FACTORS
229
C. OTHER RISKS
1. An outbreak of any other epidemics in the region where the Group operates may result in material disruptions
in the Group’s and its tenants’ businesses. Natural disasters or other catastrophic events, such as earthquake,
flood or severe weather conditions, could, depending on its magnitude, significantly disrupt the Group’s
business operations or result in significant economic downturn in the affected regions. The Group cannot
assure that there will be no occurrence of earthquakes or other natural hazards in the area where it operates,
which may result in severe destruction of the Group’s property development projects, assets, cash flow from
infrastructure and facilities.
2. The Group is subject to extensive and increasingly stringent environmental protection laws, regulations and
decrees that imposes fines for violation of such laws, regulations or decrees and provide for the shutdown
by the government authorities of any construction sites not in compliance with government orders requiring
the cessation or cure of certain activities causing environmental damage. In addition, there is a growing
global awareness of environmental issues and the Group may sometimes be expected to meet a standard
which is more stringent than the requirement of the prevailing environmental laws and regulations and may
cause negative impacts on the costs and operations of its projects. We have adopted various environmental
protection measures, including conducting environmental assessment on the Group’s property construction
project and hiring contractors with good environmental protection and safety track records, and required
them to comply with the relevant regulations or laws on environmental protection and safety, whereas
such measure may be ineffective. In addition, the Group cannot assure that more stringent environmental
projection regulations will not be imposed in the future. If the Group fails to comply with the prevailing
environmental laws or regulations, or fails to meet public expectations in relation to environmental matters, the
Group’s reputation may be damaged or may be required to pay fines or take remedial actions, in which case
suspension of operation may be required in the Group’s subsidiaries.
3 The development of, and future trends in Hong Kong and the PRC property industries have been the focus
of numerous media reports. As a leading property developer in Hong Kong and the PRC, information about
the Group or its projects appears frequently in various media outlets. Some of these media reports contain
inaccurate information about the projects of the Company and the Group. There can be no assurance that
there will not be false, inaccurate or adverse media reports about the Group or its projects in the future.
In particular, the Group may be required to respond or take defensive and remedial actions with regard to
such inaccurate or adverse media reports, which may adversely divert its resources and our management’s
attention and may materially and adversely impact its business operations. Moreover, there can be no assurance
as to the appropriateness, accuracy, completeness or reliability of any media reports regarding the Company.
The Group disclaims any media reports contain information that is inconsistent or conflicts with the information
contained in its annual report and circulars. Investors should not rely on such information in making a decision as
to invest in the company’s shares and/or its listed securities, and should rely only on the information included
in its listing document.
4 The Group has insurance in place in relation to its various development projects, including third-party and
earthquake insurances. In general, such insurances do not cover wars, riots, terrorism and acts of God, any
of which case would result in an unpredictable amount of losses and have negative impacts on the Group’s
businesses and cash flow to a certain extent.
5 Certain businesses of the Group are operated under concession rights, including the Hong Kong Convention
and Exhibition Centre, public bus services, public ferry services, operations of duty-free shops and toll
roads etc. The Group cannot assure that such concession rights can be renewed upon their expiry, and the
conditions could be worse off than the existing ones even if renewals are approved.
6. Notwithstanding the appropriate measures adopted to protect the Group’s computer system and information,
the Group cannot assure that there will be no occurrence of unlawful break-ins or misuse with rapid
technological advancement, which may affect its businesses to a certain extent.
