Asia-Pacific Strategic Investments Limited - Annual Report 2021

Chairman’s Statement

fact, pent-up demand has driven Chinese domestic travel to a post-pandemic recovery which has rebounded to surpass 2019 peaks 1 . Another trend is the world’s growing ageing population which will drive demand for healthcare and elderly-related services and facilities, including retirement villages. By 2050, it has been forecasted that one in four people in Asia-Pacific will be 60 years old or older, tripling between 2010 and 2050 to about 1.3 billion people 2 . And by 2050 in China, the elderly will form about a third of the population, creating an acute shortage of senior housing, facilities and other services if the supply of these is not accelerated 3 . As a result of these trends, we have set our strategic focus to develop and invest in quality hospitality assets and integrated retirement villages in China and Southeast Asia to grow our standing and brand in the real estate industry.

Dear Shareholders,

Many cultures attach great importance to the choice of given names as they often convey hopes of noble ambition and character. In the same way, the name change of the company back to Asia-Pacific Strategic Investments Limited (“APS” or the “Group”), approved by shareholders at the Annual General Meeting held on 30 December 2020, underlines our vision to establish the Group as a significant and distinctive real estate developer and investor beyond China, to Southeast Asia. However, building a name for APS in the industry takes time and must be founded on developing each project we undertake well, starting with our first two properties – a hotel already in operation and a sizeable plot of land – in the Chinese city of Huzhou, Zhejiang Province. We therefore took the opportunity during this time of disruption caused by COVID-19 to carefully review and rechart the Group’s strategic thrust for China and Southeast Asia, especially in the light of developments that are already shaping consumption trends in the region. One trend is the still strong demand for leisure, social and even business travel around the world, currently temporarily muted by lockdowns and international border restrictions. In China, the demand for local tours, and increasingly for cultural-themed trips, has not been dampened by the intermittent periods of inter-provincial travel restrictions to stem the rise of COVID infections. In

FORGING NEW PATHS IN HOSPITALITY

The recovery in domestic tourism in China is still exposed to temporary setbacks due to sporadic outbreaks of COVID-19, but there remains strong underlying demand in the sector, especially in local cultural tourism as national parks, museums, historical streets, cultural heritage sites and art galleries dominate searches and discussions on the internet 4 .

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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