Hkc : Annual Results Announcement for the Year Ended 31 December 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

(Stock code: 190)

(website: www.hkcholdings.com)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

The board of directors ("the Board") of HKC (Holdings) Limited ("the Company" or "HKC") announces the consolidated results of the Company and its subsidiaries ("the Group") for the year ended 31 December 2016 as follows:

CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2016
Note	2016 HK$ Million	2015 HK$ Million (Re-presented)
Continuing operations Revenue	4	1,605.2	1,195.5
Cost of sales	(1,062.5)	(825.6)
Gross profit	542.7	369.9
Other income	5	57.4	176.3
Fair value adjustments on investment properties	607.2	(469.8)
Provision for impairment losses on assets	6	-	(135.6)
Selling and distribution costs	(49.6)	(47.2)
Administrative expenses	(174.2)	(190.1)
Other and general expenses	(70.1)	(57.7)
Operating profit/(loss)	7	913.4	(354.2)
* For identification purposes only

Note	2016 HK$ Million	2015 HK$ Million (Re-presented)
Finance income	8	33.0	32.3
Finance costs	8	(48.5)	(85.8)
Finance costs - net	(15.5)	(53.5)
Share of profits less losses of associates	98.2	96.4
Share of profit less loss of a joint venture	82.0	(228.3)
Profit/(loss) before income tax	1,078.1	(539.6)
Income tax expense	9	(599.6)	(8.8)
Profit/(loss) for the year from continuing operations	478.5	(548.4)
Discontinued operations Profit/(loss) for the year from discontinued operations	111.0	(31.7)
Profit/(loss) for the year	589.5	(580.1)
Profit/(loss) attributable to: Equity holders of the Company	386.3	(497.7)
Non-controlling interests	203.2	(82.4)
589.5	(580.1)
Earnings/(loss) per share from continuing and discontinued operations attributable to equity holders of the Company for the year (expressed in HK cents per share)	10
Basic - From continuing operations	52.0	(93.8)
- From discontinued operations	21.0	(6.4)
From profit/(loss) for the year	73.0	(100.2)
Diluted - From continuing operations	51.8	(96.8)
- From discontinued operations	21.0	(6.4)
From profit/(loss) for the year	72.8	(103.2)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2016

2016 2015

HK$ Million HK$ Million

(Re-presented)

Profit/(loss) for the year 589.5 (580.1) Other comprehensive (loss)/income Items that may be reclassified subsequently to profit or loss

Translation of financial statements of foreign operations

• Currency translation differences (789.4) (857.0) Reclassification adjustments

• Release of exchange differences upon disposal

of subsidiaries Investments available for sale - Gain in fair value	(9.7) -	- 0.6
Other comprehensive loss for the year, net of tax	(799.1)	(856.4)
Total comprehensive loss for the year	(209.6)	(1,436.5)
Total comprehensive (loss)/income attributable to: Equity holders of the Company	(278.1)	(1,229.2)
Non-controlling interests	68.5	(207.3)
(209.6)	(1,436.5)
Total comprehensive (loss)/income attributable to equity holders of the Company arising from: Continuing operations	(389.1)	(1,197.5)
Discontinued operations	111.0	(31.7)
(278.1)	(1,229.2)

CONSOLIDATED BALANCE SHEET As at 31 December 2016
Note	2016 HK$ Million	2015 HK$ Million
ASSETS Non-current assets Investment properties	9,141.5	8,229.7
Prepaid land lease payments Property, plant and equipment - Other property, plant and equipment	1,461.5 1,008.7	1,563.2 1,138.1
- Construction in progress	7.3	1.1
Intangible assets	0.2	1,098.3
Properties under development	471.0	489.1
Interests in associates	1,180.5	1,189.9
Interest in a joint venture	1,925.8	1,892.1
Available-for-sale financial assets	24.0	24.9
Prepayments and other receivables	12	84.1	97.1
Total non-current assets	15,304.6	15,723.5
Current assets Properties under development	-	950.7
Inventories	5.9	5.9
Properties held for sale	2,490.0	2,809.9
Financial assets at fair value through profit or loss	12.7	13.4
Trade and other receivables	12	199.9	176.2
Restricted cash	614.7	614.5
Short-term bank deposits	13.5	4.3
Cash and cash equivalents	1,296.3	974.2
Total current assets	4,633.0	5,549.1
Total assets	19,937.6	21,272.6