Directors and Colleagues, Happy New Year!

Tonight, we are pleased to have more than a thousand of you gathered together -- directors, key management and colleagues -- we hope all of you here will enjoy this evening’s programme.

Hong Kong's business environment in 2002 has been tough. Though the government introduced some measures in the fourth quarter to stabilize the property market which should benefit the market in the longer term, the overall outlook for the local GDP growth is estimated to be only 2%. Looking towards 2003, deflation is unlikely to improve in the short term and globalization will bring about even tougher economic competition. It is anticipated that Hong Kong and most parts of the world will still have to face significant economic uncertainties.

Despite the unfavourable environment, our operations remain competitive and continue to improve and expand. I would like to take this opportunity to extend my sincere appreciation to our outstanding management team and hard-working colleagues. At present, we have over 150 thousand employees in 41 countries. An important element of our corporate culture over the years is the integration of a western-style management system with Chinese philosophical thinking. I believe this firm foundation allows us to have a structure of greater stability , flexibility and vitality. With this structure, our colleagues have ample room to grow and develop themselves , and the Group can move quickly to take advantage of the narrow windows of opportunity that present themselves in this fast-paced business world.

In a rapidly changing environment driven by the dynamics of the global and knowledge based economy, all industries have to face unprecedented challenges and competition. The key to success is to have a management team who can see far with a broad vision, and who, by having the ability to look at the bigger picture and think globally, are capable of executing a well thought out action plan. To stay ahead in the race, management must also possess a deep understanding of their own organization as well as that of the others and be able to stay competitive at all times. . They must also be practical and innovative, and be equipped with the newest and most accurate information in their strategic and tactical maneuvers. They must also act decisively and whole-heartedly to maintain their leading market position.

2003 is the Year of the Goat, and we have a Chinese saying that "three goats bring prosperity". We will spare no efforts to develop our 3G services in Europe and our plan is to launch the service in Hong Kong after the first quarter. This is a revolutionary service combining two of the most successful consumer technologies in human history. It provides the convenience of mobile communication with point-to-point video-telephony, as well as the interactivity and depth of the Internet. We will launch this service in Europe first, and our senior management are confident that we can create a new era of digital information technology for the entire world. All our core businesses and new operations are growing steadily. Thanks to our outstanding directors, superb management team and excellent colleagues, we are able to make the right decisions and implement them carefully and accurately within a short period of time. We also have a strong financial background that will enable us to capitalize on new opportunities . I believe the number of our colleagues will keep growing and, as long as we continue to work hard and take our responsibilities seriously, I am fully confident about the future of the Group. With our solid foundation and the concerted efforts of our colleagues, I believe that we can certainly achieve even better results in the coming year. Let us work hard hand in hand towards this goal.

Thank you.