GLOSSARY OF TECHNICAL TERMS

This glossary contains definitions of certain terms used in this listing document in connection
with the Group and its business. Some of these definitions may not correspond to standard industry
definitions.

“average effective monthly rental” in relation to any property for any year or period, the quotient of
(a) the rental income of that property attributable to that year or
period, which for this purpose shall be a 360-day year with 12
equal months of 30 days each with any rent-free period amortized
throughout the life of the relevant leases, divided by (b) the
number of months in that year or period in which the Group had
the benefit of a lease for such property in that year or period

“Building Authority” the Director of Buildings under the Buildings Ordinance, who is
the head of the Buildings Department

“Buildings Department” the Buildings Department of the Government of Hong Kong,

which provides services to owners and occupants in both existing
and new buildings in the private sector through enforcement of the
Buildings Ordinance

“building order” means an order issued by the Building Authority under the
Buildings Ordinance

“Buildings Ordinance” the Buildings Ordinance (Chapter 123 of the Laws of Hong Kong)

“deed of mutual covenant” in respect of a multi-ownership building in Hong Kong, the

legal document registered with the Hong Kong Land Registry
which sets out the rights, interests and obligations of the owners,
occupiers, tenants and property management agents in respect
of the control, administration, maintenance and management of
private properties, common parts and facilities of the building

“occupancy rate” in relation to any property, means a number, expressed as a

percentage representing the days on which a property is subject to
tenancy in a 365-day year (or such shorter time as the Group held
such property in the relevant year)

“rental income” in relation to any property, the amount of the rental income
recognized from the property, comprising rent, licence fees, and
other income recognized in respect of the property

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“saleable floor area” or “SFA” (i) in the case of commercial or industrial properties:

(a) in respect of a unit occupying an entire floor, the

floor area available for the exclusive use of the
occupier as if the whole floor is taken up as a single
unit i.e. including toilets and passageways but
excluding common areas such as lift shafts, stairs,
plant rooms and smoke lobbies; and

(b) in respect of a unit which is one of several units

making up an entire floor, the floor area exclusively
allocated to that unit, being the area which is
measured up to the centre line of the wall separating
adjoining units, and the full thickness of the external
walls and walls separating the unit from common
areas. Cockloft, yard, carparking space, flat roof or
roof and other similar ancillary accommodation for
the exclusive occupation of the unit are excluded for
the purpose of calculating the saleable floor area, and
are measured and stated separately; and

(ii) in the case of residential properties, the floor area

exclusively allocated to the unit including balcony,
verandah and utility platform but excluding common areas,
such as staircases, lift shafts, lobbies and communal toilets,
being the area which is measured up to the centre line of
the wall separating adjoining units, and the full thickness
of the external walls and walls separating the unit from
common areas. Bay window, flat roof, roof, terrace, garden,
garage, carparking spaces and other similar ancillary
accommodation for the exclusive occupation of the unit are
excluded for the purpose of calculating the saleable floor
area, and are measured and stated separately

“sq.ft.” square feet. Where an area in square metres is converted into

square feet, we have applied a conversion ratio of 1 square metre:
10.764 square feet

“sq.m.” square metre

“warning notice” means a notice issued by the Building Authority under section
24C(1) of the Buildings Ordinance

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 GLOSSARY OF TECHNICAL TERMS

• The term “property” used in this listing document means:–

º in respect of properties as held by the Group in Hong Kong from time to time (i) those
properties the ownership of which constitutes a number of owned undivided shares pursuant
to the relevant deed of mutual covenant in the relevant parcel of land in Hong Kong, or (ii)
where there is no deed of mutual covenant, a parcel of land where the Group is the sole legal
owner; and

º in respect of the property held by the Group in the PRC, the unit located at the address
specified under the relevant property ownership certificate issued by the relevant local real
estate bureau in the PRC.

• For the purposes of this listing document, a “building” refers to a building registered at a singular
numbered address with the Hong Kong Land Registry. For example, two buildings may share a
common staircase but references to a building owned by us refers only to that building stated in our
valuation report with the designated registered numbered address.

• For the purposes of this listing document, the number of properties is arrived at by reference to
each property which is freely transferable on its own without further subdivision of the existing
undivided share(s) in respect of the relevant property.

• The terms “long lease” and “medium-term lease” referred to in this listing document have the same
meanings as defined in section 31 of Schedule 10 to the Companies Ordinance, that is:–

º in relation to land in Hong Kong–

(i) the expression “long lease” (長期租約) means a lease in the case of which either–

(A) the portion of the term for which it was granted remaining unexpired at the end
of the financial year is not less than 50 years, or

(B) if the lease is a renewable Government lease, the portion of the said term
remaining unexpired at the said date when added to the term for which the
lessee is entitled to renew the lease amounts to a period of not less than 50
years from the said date;

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(ii) the expression “medium-term lease” (中期租約) means a lease in the case of which
either–

(A) the portion of the term for which it was granted remaining unexpired at the end
of the financial year is less than 50 years but not less than 10 years; or

(B) if the lease is a renewable Government lease, the portion of the said term
remaining unexpired at the said date when added to the term for which the
lessee is entitled to renew the lease amounts to a period of less than 50 years
but not less than 10 years from the said date.

º in relation to land outside Hong Kong–

(i) the expression “long lease” (長期租約) means a lease in the case of which the portion
of the term for which it was granted remaining unexpired at the end of the financial
year is not less than 50 years; and

(ii) the expression “medium-term lease” (中期租約) means a lease in the case of which
the portion of the term for which it was granted remaining unexpired at the end of the
financial year is less than 50 years but not less than 10 years.

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