ESR AR 2019 EN

Directors’ Report 98 Focused The Board is pleased to present this report together with the consolidated financial statements of the Group for the year ended 31 December 2019. PRINCIPAL ACTIVITIES The Group is the largest Asia Pacific focused logistics real estate platform by gross floor area and by value of the portfolio assets. In the course of the year ended 31 December 2019, the Group was principally engaged in (i) the development, construction and sale of completed properties; (ii) the management of the underlying assets on behalf of its capital partners via the funds and investment vehicles it managed; and (iii) the investment in completed properties, co-investment in the funds and investment vehicles and the public REITs it managed, and other investments. The activities of its principal subsidiaries and joint ventures are set out in note 1 and note 15 to the Consolidated Financial Statements. SHARE CAPITAL AND SHARES ISSUED BY GLOBAL OFFERING The Company was incorporated in the Cayman Islands as an exempted company with limited liability on 14 June 2011 under the Companies Law of the Cayman Islands (the “Cayman Companies Law”). Its securities were listed on the Stock Exchange on 1 November 2019 by way of Global Offering and it issued 280,140,000 ordinary shares in the Global Offering (the “Listing”). Details of the movements in the share capital of the Company and the shares issued during the reporting year are disclosed in note 41 to the Consolidated Financial Statements. BUSINESS REVIEW A fair review of the Group’s business, a discussion about the principal risks and uncertainties facing the Group, and an indication of likely future development in the Group’s business are detailed in the sections headed “Operations Review” and “Financial Review” on pages 40 to 49 and “Message from Chairman” and “Message from CEOs” on pages 14 to 21 of this annual report. RESULTS The financial results of the Group for the year ended 31 December 2019 are set out in the Consolidated Financial Statements of the Group on pages 123 to 238 of this annual report. BANK AND OTHER BORROWINGS Particulars of bank and other borrowings of the Group as at 31 December 2019 are set out in note 26 to the Consolidated Financial Statements. RECOMMENDED DIVIDEND The Board resolved not to recommend the payment of a final dividend for the year ended 31 December 2019 (2018: nil). DIVIDEND POLICY The Company currently intends to retain most, if not all, of its available funds to operate and expand its business. The Company’s long term objective is to deliver returns to shareholders that is sustainable and in line with the long-term growth of the Company. Subject to maintaining an optimal capital structure to ensure that adequate capital resources are available for business growth and investment opportunities, the Board will continue to evaluate the merits and timing of future dividend payments. FOUR-YEAR FINANCIAL SUMMARY A summary of the audited consolidated results and the assets and liabilities of the Group for the last four financial years is set out on pages 239 to 240 of this annual report. The summary does not form part of the audited Consolidated Financial Statements.