Sound corporate management is the glue that holds the

Club together and ensures all divisions get on with their

jobs. Hiring and training for football betting presented a

major challenge for the Club this year. As turnover in our

racing business continued

to slip, we endeavoured

to protect staff jobs and

find ways to further

increase productivity and

cut costs. We tried to do

things differently by

creating cross-divisional

teams to look into better

ways to run our business. And through our highly

popular Corporate Wellness campaign, we continued

to keep Club staff healthy and safe.

CORPORATEMANAGEMENT

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Jul 03Launching football betting How to prepare 10,000employees, many of them part-time and without prior footballbetting knowledge, for the launch of a totally new service andproduct line? How to ensure the football betting systems andservice would match up to the high standards and reliability ofthe Club’s horseracing and Mark Six services? And how toaccomplish this in just four months, in the midst of the SARScrisis, without disrupting existing operations? These were thechallenges confronting the Club in the run up to the 1st Augustlaunch of regulated football betting. • The solution lay in careful

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planning, close teamwork, a programme of intense developmentand testing of the Club’s betting systems, and exhaustiverehearsals of procedures. And for staff, a tailor-made self-learning programme, “Premier League Learning”, providedfull coverage of new products and service standards as well asthe Club’s Responsible Gambling Policy. • The result was thesmooth roll-out within weeks of Government’s decision toauthorise football betting.

Sep 03Corporate Wellness

As the Club looks to its employees for ever-higher levels of performance, so we appreciate

our responsibility for their welfare and well-being. The Corporate Wellness campaign is one

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such initiative. This year’s campaign enabled over 1,400 employees to participate in self-

development, health and fitness programmes.

Health and safety are particularly important in the Club’s stables and catering

environments. The Racing and Membership Services Divisions both have dedicated working

committees to maintain standards and raise safety awareness. Indeed, Racing succeeded in

reducing the number of work-related injuries by 26% in 2003, and cut the number of days

lost due to work-related injuries by 53% over the same period.

Oct 03Protecting employment, securing our future

This year, the Club implemented pay cuts of 8-10% for management-grade employees, while

end-of-year payments for non-management grade employees ceased beginning in October

2003. We believe these, together with on-going productivity measures, are the best means

to protect employment, maintain our commitment to charity, and finance the business

development that will ultimately guarantee the Club’s long-term success. In this we have

been greatly encouraged by the support of staff and their continuing commitment to higher

levels of performance and productivity.

Reflecting the importance the Club attaches to people management and development, a

new Stewards Human Resources Committee, headed by the Chairman, was created in May 2004.

Reviewing our supply chain and stables operations

The Club increased its operational efficiency through a number of initiatives during the year.

For example, a review of supply chain management and purchasing strategy was conducted

with the objective of obtaining better value from high-value and high-volume purchases. In

the stables, a review was conducted in conjunction with trainers and staff with the aim of

helping trainers run their stables with greater flexibility and efficiency.

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Supporting the development of equestrian sports in mainland China

Mainland China is fast developing its competitiveness in equestrian sports. The Club has long

supported China’s aims, providing advice and training, and supplying retired racehorses. This

year, the Club exported 101 retired racehorses to three provinces and provided blood testing

for the fifth National Speed Racing Championship in Wuhan.

Dec 03

0 5,000 10,000 15,000

03/04

02/03

01/02

00/01

99/00

25,00020,000

STAFF COUNT

Full-time staffPart-time staff

4,204

4,204

4,223

4,224

4,143

17,447

14,152

13,971

13,950

14,737

Team building The challenges of introducing newproducts and improving productivity call for exceptionalteamwork and strong leadership. This year, variousdivisions launched individual “change management”initiatives. Strategic Purchasing’s “Leading Change andTeam Alignment” workshop and Finance’s “PersonalDevelopment Workshop” were two successful examples.

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Feb 04Corporate citizenship In keeping with our commitment tocharity, the Club seeks to play an active role as a responsiblecorporate citizen, with staff encouraged to get personallyinvolved in community affairs. This past winter, for example,they volunteered to serve as Goodwill Ambassadors, bringingcomfort and cheer to residents of the Healthy Village ElderlyProject in North Point. • The Club is also playing its part indeveloping Hong Kong’s education and skills base. This year,we were the main sponsor of the Hong Kong ManagementAssociation Award for Excellence in Training and the leadorganiser of the 2003 Quality Improvement & ExperienceSharing Convention. And, in support of the Vocational TrainingCouncil's new Higher Diploma in Entertainment BusinessOperations, we will be opening our doors to visiting studentswho seek insight into the operations of Hong Kong’s leadingprovider of sporting entertainment. • This year, the Club washonoured to be awarded the Caring Company Logo, and to beone of 20 recipients of the Fighting SARS Award, in recognitionof its work during last year’s public health crisis.

SARS

Club Chairman Ronald Arculli and ChiefExecutive Lawrence T Wong pay a ChineseNew Year visit through the GoodwillAmbassador community outreach programme.

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Board of Stewards

Chief ExecutiveLawrence T Wong

Executive Director, FinancePaulus S Lee

Executive Director, RacingWinfried Engelbrecht-Bresges

Executive Director, BettingHenry S K Chan

Executive Director, Membership ServicesBilly K C Chen

Executive Director, Charities andCorporate SecretariatWilliam Y Yiu

Executive Director,Corporate DevelopmentKim K W Mak

Executive Director,Information TechnologySteve W Beason

Executive Director, Security and Corporate Legal ServicesTimothy P McNally

HONG KONG JOCKEY CLUB ORGANISATION

Finance, Treasury

Racing Registry; Handicapping, Race Planning and International Racing; Racing Operationsand Equestrian; Racing Laboratory; Veterinary Clinical Services, Veterinary Regulationand International Liaison; Racing Control; Apprentice Jockeys’ School; Property

Betting Services & Systems, Customer Management, Interactive Services, Telebet,Betting Services (On-Course), Betting Services (Off-Course), Football Betting

Membership Services, Hospitality Services (Clubhouses & Racecourse Catering)

Charities, Corporate Secretariat, Audit, Jockey Club Kau Sai Chau Public Golf Course

Corporate Marketing, Market Research and Planning, Broadcasting Services, PublicAffairs, Strategic Purchasing and Administration, Human Resources, External Relations

Systems Development, IT Architecture, IT Infrastructure, IT Quality Control,IT Operations, IT Business Planning

Security (Data, Investigations, Operations, Integrity Services),Corporate Legal Services

Apr 04Providing employment for Hong Kong

This year’s Job Fair saw 1,150 full-time and part-time staff

recruited. Like the May 2003 Job Fair, which recruited

4,000 full-time and part-time staff, many of the new

positions were created to serve football betting customers.

The Club is one of Hong Kong’s largest employers, with

4,204 full-time and 17,447 part-time employees. The Club is a

strong supporter of equal opportunities employment, this year

organising two recruitment days for graduates of the

government’s “Re-employment Training Programme for the

Middle Aged”.

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MIS

Mercury

Awards

Jun 04An award-winning year The hard work and achievements ofour employees were honoured in many fields. To mention just afew: the IT Division was Hong Kong’s only winner of theprestigious MIS Innovation Award, for its successful upgrade ofthe Club’s desktop PCs; Public Affairs received a Gold award inthe US Mercury Awards for the 2003 Annual Report; Treasurywas awarded Asian Investor magazine’s Institutional Investor ofthe Year 2004 award for outstanding achievements in fundmanagement; and “Premier League Learning”, Betting’sprogramme to prepare 10,000 frontline employees in just fourmonths for the launch of regulated football betting, washonoured with the Hong Kong Management Association’s Goldaward for Excellence in Training. “Premier League Learning” andthe Certificate Programme in Racehorse Management were alsoawarded Excellence in Practice Citations by the AmericanSociety for Training and Development.

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