Treasury Policy

We continue to adopt a conservative treasury policy with all bank deposits in either Hong Kong Dollars, United States Dollars or in the local currencies of the operating subsidiaries, keeping a minimum exposure to foreign exchange risks. If necessary, forward foreign contracts are utilized to hedge against foreign exchange exposure arising from procurement or subletting denominated in other floating currencies. The group has not engaged in the use of other derivative products, which are considered not necessary for the group's treasury management activities.