Sun Hung Kai Properties : Sunevision Holdings Ltd. 2016 / 2017 Half Year Results Announcement

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This announcement, for which the directors (the "Directors") of SUNEVISION HOLDINGS LTD. (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

SUNEVISION HOLDINGS LTD.

新意網集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8008) HALF-YEAR RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. HIGHLIGHTS

• SUNeVision maintained its growth momentum in the first half of 2016/17 financial year with profit attributable to owners of the Company of HK$269.7 million for the six months ended 31 December 2016, an increase of 9% over the same period last year.

• Revenue for the period was HK$557.3 million, up 15% over the same period last year. This was due principally to higher revenue for the Group's data centre operations from new customers and rental reversions of existing customers.

• Gross profit for the period increased to HK$338.7 million with gross margin at 61%. Cost of sales for the period rose by HK$46.5 million to HK$218.6 million, mainly due to higher rental expenses incurred for expanded capacity taken up at MEGA Two (Sha Tin) and additional human resources to meet development and expansion needs.

• Operating expenditure for the period increased to HK$33.4 million. This was mainly due to the expansion of sales and marketing resources for the revitalization of MEGA Two and the new MEGA Plus (Tseung Kwan O) facilities.

• The Group's financial position remains strong, with approximately HK$1,174.6 million in cash and interest- bearing securities on hand. As at 31 December 2016, the Group had a medium-term bank borrowing of HK$995.2 million.

Jul to	Jul to
Dec 2016	Dec 2015
HK$'M	HK$'M
Revenue	557.3	483.0
Gross profit	338.7	310.9
Other income	17.9	8.7
Operating expenditure *	(33.4)	(25.2)
Profit before taxation	323.2	294.4
Income tax expense	(51.8)	(47.9)
Profit for the period Attributable to:	271.4	246.5
Owners of the Company	269.7	246.5
Non-controlling interests	1.7	-
271.4	246.5

* Selling, general and administrative expenses

CHAIRMAN'S STATEMENT

SUNeVision attained a profit attributable to owners of the Company of HK$269.7 million for the six months ended 31 December 2016 in the 2016/17 financial year, an increase of 9% over the same period last year.

Revenue for the period rose 15% to HK$557.3 million, largely attributable to higher revenue from the Group's data centre operations. iAdvantage continued to win new business and renew existing contracts with major multinational and local customers, and successfully attracted high growth customers such as cloud service providers. A 27% increase in cost of sales was reported during the period, mainly due to higher rental expenses for expanded capacity taken up at MEGA Two (Sha Tin) and additional human resources invested in meeting development and expansion needs. There have been strong interests from existing and new customers in the new and expanded facilities of the Group. Gross profit amount rose 9% to HK$338.7 million with gross margin for the period at 61%.

Operating expenditure for the period increased from HK$25.2 million to HK$33.4 million. This was mainly due to the expansion of sales and marketing resources for the revitalization of the MEGA Two and new MEGA Plus (Tseung Kwan O) facilities.

The Group's financial position remained healthy with approximately HK$1,174.6 million in cash and interest- bearing securities on hand as of 31 December 2016. Despite the Group having a medium-term bank borrowing of HK$995.2 million, the net position remained positive. Therefore, the Group has sufficient liquidity and financial resources to meet its funding requirements in near future.

Looking ahead, the Group will continue to enhance its assets and service quality. The transformation of the entire MEGA Two facility into a top-tier data centre is in the final stage. When completed, the whole building will be dedicated to data centre use, ensuring world-class security, network connection and facility management for customers. At the same time, the construction of the brand-new MEGA Plus facility in Tseung Kwan O is progressing well and due for completion in 2017. The topping out ceremony was held on 8 December 2016. MEGA Plus will be the first purpose-built, Tier-4 ready facility on land dedicated to data centre use, which distinguishes it from nearby data centre sites in the industrial estate that have restrictions on usage. These investments in new capacity will provide the Group with a good foundation for growth to satisfy the rising demand for top-tier, premium-service data centres. As well as building new facilities, the Group is investing to enhance its existing data centres and ensure they remain state-of-the-art facilities. In particular, the optimization project to upgrade the power capacity of MEGA has already started, in order to cater for the demand from power hungry customers.

I would like to close by thanking the Board, management and every member of our committed staff for their dedication and hard work, and our shareholders for their continued confidence and support.

Kwok Ping-luen, Raymond

Chairman

Hong Kong, 26 January 2017

CHIEF EXECUTIVE OFFICER'S REPORT OVERVIEW

SUNeVision reported its unaudited results for the first half of the 2016/17 financial year with a profit attributable to owners of the Company of HK$269.7 million, an increase of 23.2 million over the same period last year.

BUSINESS REVIEW

iAdvantage

iAdvantage secured new orders from another leading global cloud service provider during the period and anticipates further expansion plans by various telecommunication service providers. Work on several major enhancement and expansion projects to maintain iAdvantage's position as a leading data centre operator in Hong Kong continued. The optimization of the flagship MEGA facility, one of the most highly regarded data centres in the region, will enhance its ability to meet the increasing loading requirements, including both power capacity and power density of new and existing customers. The transformation of the entire MEGA Two facility in Sha Tin into a dedicated data centre building is attracting more interest from the market, especially among global cloud players and major telecommunications operators. The transformation has proven to be a strong attraction to customers with high standards for mission-critical operations.

Construction of the new MEGA Plus flagship facility in Tseung Kwan O is moving into the final stage and solidly on track for completion in 2017. Interest from prospects has been encouraging. The facility was designed with an understanding of the latest customer needs and leverages the Group's rich data centre operation experience. It is being built for flexibility to meet varying levels of resilience and power density for different customer needs. Upon completion, MEGA Plus will meet environmental friendly requirements with high-efficiency power usage to achieve best-in-class energy saving. It will also be the only data centre built on dedicated land in the Tseung Kwan O area without restrictions on usage.

The Group made another key achievement on 29 November 2016 when it secured Amazon Web Services (AWS) Direct Connect Services to anchor in our data centres. AWS Direct Connect's presence is starting to attract more cloud-receptive customers and traffic to its data centres.

In addition to investing in capacity, there were continuous improvements to existing data centres and expanded sales and marketing resources to strengthen capacity to serve customers.

Super e-Technology

Super e-Technology secured contracts for the installation of security surveillance, SMATV and IT systems totalling approximately HK$11 million during the first half of the 2016/17 financial year.

Super e-Technology maintains a positive outlook for the security surveillance and SMATV sectors for the second half of the financial year and is constantly pursuing opportunities to expand its service offerings.

Super e-Network

Super e-Network continues to capture new business providing wireless LAN infrastructure in shopping malls and is proactively seeking opportunities to bid for new projects and to expand its client base.