Hong Kong Shanghai Alliance Holdings Limited

Stock code: 1001.HK

Property value-added investor with regional niche

Tapping into booming economic regions

Corporate Presentation

August 2019

Turnaround Results with Satisfactory

Performance across Segments

Achieved results turnaround

from last year to approximately

HK$13.9 million

1

Successful ramp-up of Central Park Jing’an

(formerly known as Longyu International Plaza)

Further enriching its product / service

mix by acquiring another Grade A-office

building in a central commercial area

2

Enhancement of Central Park Pudong’s

occupancy rate

The occupancy rate increased from

approximately 76% of last year to

approximately 85% in June 2019

3 Various notable projects have been

secured for the BDS business

Rosewood Hotel, St. Regis Hotel,

Chater House Renovation, Macau

City of Dreams Renovation and

Parisian Hotel Renovation, etc.

4

2

Scope of Business

Portion of FY18/19 Revenue | FY17/18 Revenue (For the year ended 31 March 2019 | 2018)

12.0% | 10.9%

3

Building & Design Solutions

A distributor of world-

renowned sanitary &

kitchenware brands in Hong

Kong & Mainland China

Architectural & Design Centre

serving the needs of developers

in the high-end consumer

market where purchases are

influenced by architects and

designers

Engineering Plastics

Distribution of general and

engineering plastic resins in

Hong Kong and Mainland

China

Provide processing,

inventory management,

logistics and financing

service

Serving segments such as

home appliances,

consumer electronics,

household products, power

equipment and lighting

9.3% | 12.5%

Property Investment and

Project Management

A niche player and

specialist in property value

enhancement with

successful track record

Tenant upgrade

Asset management

Participated property

projects include Point Jing

An (disposed in March

2014), Central Park Putuo

(disposed in March 2017),

Shanghai Park Lane

(disposed in September

2017), Central Park

Pudong and Central Park

Jing’an (Formerly known as

Longyu International Plaza)

3.5% | 2.1%

Construction Material

75.1% | 73.6%

A leading processor and

distributor of infrastructure

products serving Hong Kong’s

burgeoning construction market

Leading market share in Hong

Kong (approx. 30%)

Hong Kong’s first government

approved automated rebar

processing and assembly plant

One of the largest processors

of recycled steel in the region

Leading supplier of surface

critical steel serving China’s

automotive sector

Secured various notable

projects including Rosewood

Hotel, St. Regis Hotel, Chater

House Renovation, Macau City

of Dreams Renovation and

Parisian Hotel Renovation etc. 3

Property Investment and

Project Management Business

Shanghai Focused High-end Commercial Property

A niche player and specialist in property value enhancement with successful track record

Business Model

Project selection Exit strategies Project upgrade

Shanghai focused

High demand in high-end

commercial and residential

properties

Strong potential of occupancy and

rental upside improvement after

enhancement works

Appoint professional property

management team or partner

with well-known designers

Redesign, reconstruct and

renovate the property

Upgrade the tenant mix

Upgrade period: 1 – 2 years

• Rental income significantly

increased by [-]%

• Hold for investment or sell out

Participated Projects

Hold for investment

Rental income

Sell

Asset revaluation

Central Park Putuo Successful disposal in March 2017

Shanghai Park Lane Successful disposal in September 2017

Point Jing An Successful disposal in March 2014

5

Central Park Pudong Central Park Jing’an

(formerly known as Longyu

International Plaza)

6

Central Park Pudong (100% owned)

Competitive

Edges

Located in the Pudong New District (financial services centre)

Benefited from the market trend of decentralisation from central business district

LEED gold for sustainable development

Synergies with the HK Land project

Business

Strategies

Position as prime office with quality facilities and services

Enhance facilities and surrounding environment

Increase leasable areas through renovation of G/F space

Appoint professional property management service

3-Year Plan: Steady Enhancement of Overall Property Values

2019 2020 2021

Increase occupancy

rate to approx. 93.0%

and average rental to

RMB6.6/sqm

Maintain occupancy

rate to 93.0% and

increase average

rental to

RMB6.9/sqm

Fine tune the tenant

mix and increase the

average unit rent

charge when some

of the leases expire

Fair value increased from RMB800 million (acquisition price in 2015)

to RMB1,206 (approximately HK$1,404.9) million (as at 31 March

2019) in the past 4 years

Central Park Jing’an (Jointly owned with GIC through JV)

7

Competitive

Edges

Located in Jing’an District (central commercial area)

Directly accessible to 3 metro lines

Business

Strategies

Position as prime office with quality facilities and services

Renovate the project to uplift the quality and recruit new tenants

Appoint professional property management service

Target Tenant Mix

Prospective tenants:

[-]

[-]%

[-]%

[-]%

[-]%

[-]%

[-]%

[-]% [-]%[值]

[-]% % in 2018-2019 Financial service

Non-financial professional service

E-commerce

Fitness and beauty

Real estate & construction

Manufacturing & trading

Logistics & shipping

High-tech & IT

Others

3-Year Plan: Steady Enhancement of Overall Property Values

2019 2020 2021

Increase occupancy

rate to approx. 90.0%

and average rental to

RMB7.6/sqm

Increase occupancy

rate to 93.0% and

average rental to

RMB8.0/sqm

Fine tune the tenant

mix and increase the

average unit rent

charge when some

of the leases expire

Fair value at RMB3,540 million as at 30 June 2019

Growth Strategy

Growth Strategy: One-Stop Solutions Provider, Hongkong and Shanghai Land Capital Ltd. (“HSL”)

Sources: Colliers, Savillis

2019 Shanghai Property Market

Grade A Office Market

2019Q2 2019Q1 Change

New Supply (sqm) 111,000 258,000 -57.0%

Unit Rent (RMB / sqm / day) 8.73 8.83 -1.1%

Vacancy rate 16.8% 16.4% +0.4 p.p.

2019Q2 2019Q1 Change

New Supply (sqm) 2.09m 1.46m +43.2%

Transaction Volume (sqm) 1.89m 1.42m +33.1%

Average Selling Price (RMB / sqm) 54,200 56,500 -4.1%

Residential Market

HSL is the property project management arm, which specializes in re-positioning, re-development, re-leasing and refurbishment of commercial assets

Identify property projects with high potentials

in occupancy rate / rental rate / tenant mix

enhancement

Provide one-stop solutions for revitalizing

under-performing commercial buildings to

valuable assets

Look for quality partners for setting up joint

venture and/or fund partnership for business

expansion

Co-investment venture with Reco Wisteria Private Limited*

Date of Completion June 2018

Term of the

venture

5 years

Role of HSL Provide management and administration

of all operations

Provide quarterly and annual reports on

business performance and financial

summary of the Venture

8

*An investment arm of the Minister for Finance of the Government of Singapore

Construction Material Business

Value-Added Processing and Tailor-made Solutions

VSC Steel Company Limited is one of the leading construction steel distributors in

Hong Kong

VSC Construction Steel Solutions Limited is the first government-approved automation

prefabrication yard

Regional player serving Hong Kong and Macau

Established Hong Kong’s First Automated Rebar Processing and Assembly Plant

Location : Tsing Yi, Hong Kong

with pier access

Total site

area : 30,000 square meters

Highly Automated Cut & Bend Equipment Rebar Processing

Traceability Safety On-time Completion Processing Efficiency

Competitive Edges

10

BSC – Coil Processing

Early Vendor Involvement

(EVI)

Product Design

Product Testing

Inventory Planning

Value Analysis/

Value Engineering (VA/VE)

Processing

Logistics

Inventory Management

Cost & Efficiency

Steel Mills BSC Automotive End Users

Services

Coil Slitting

Cut-to-length Stamping

Development Plan

1

2

3

Geographical expansion – expanding presence in

Shanghai, Liaoning, Shandong, Jiangsu, Guangdong,

Hubei and Henan

Margin expansion – walk away from customers that

have low profit margin or high collection risk in order to

further boost profitability

Management by local – promoting employee stock

ownership plan to senior management in order to

promote efficient management with local expertise

11

Promising Prospect of the Hong Kong Construction Market

Continuous Strong Demand from Local Market

The expenditure of public work projects will be increased to HK$100 billion per annum

Annually construction expenditure will be over HK$300 billion for public housing, redevelopment of hospital

and development of new town

Recognition of off-site prefabrication

The Group is eligible and in the process of applying the HK$1 billion “Construction Innovation and

Technology Fund” (2018/19 – 2022/23)

Encourage contractors to use rebar products made by the large-scale, highly-automated approved rebar

prefabrication yards

Currently there are four major off-site prefabrication yards with a total production capacity of about 0.25

million tons per year, which can potentially meet about 15% of Hong Kong’s demand

Favorable Market Conditions

Our Competitive Advantages

First Mover Advantage Approved Steel Rebar

Prefabrication Yard for Public

Work

Visionary Management Years of Experience

12

One Belt One Road Initiative Opportunities

A Materializing Plan with Strong Financial Support

Asian Infrastructure Investment Bank (AIIB)

Initial subscription: US$100 billion

Silk Road Fund

Initial China contribution: US$40 billion

The Belt and Road, AIIB and Silk Road Fund are expected to boost infrastructure development in Asia

Project name Country Project nature Total project cost (USD mil.)

National Slum Upgrading Project Indonesia Urban infrastructure

and services in slums 1,743.0

Distribution System Upgrade and Expansion Project Bangladesh Expand electricity

coverage 262.3

Dushanbe-Uzbekistan Border Road Improvement Project Tajikistan Road reconstruction 105.9

National Motorway M-4 (Shorkot-Khanewal Section) Project Pakistan Motorway construction 273.0

Yamal LNG Project Russia Liquefied natural gas 10,000.0

Intercity Railway Project Egypt Railway EPC 1,500.0

Sources: Xinhuanet, Ministry of Commerce, HKTDC Belt and Road, AIIB, Silk Road Fund 13

One Belt One Road

Covers about 71 countries, accounting for 1/3 of global GDP

During 2013-2018, goods trade between China and OBOR countries

reached US$6 trillion

Until April 2019, China has signed 173 OBOR collaboration documents with

29 international institutions and 125 countries

Between Jan-Apr 2019, Chinese enterprises signed project contracts

totaled >US$40.4 billion with countries along the OBOR

Sources:

http://www.xinhuanet.com/2019-

04/18/c_1124385792.htm

http://fec.mofcom.gov.cn/article/fwydyl/tjsj/20190

5/20190502865552.shtml

https://www.worldbank.org/en/topic/regional-

integration/brief/belt-and-road-initiative

One Belt One Road Initiative Opportunities (Cont’)

0

100

200

300

400

500

600

700

800

900

1000Steel Output Along the New Silk Road

China Steel Industry benefited from the Belt and Road

Initiative:

To meet all of the Belt and Road demands for railways,

pipelines, power stations and other projects:

In Asia, the annual investment in OBOR infrastructure is

estimated at US$1.7 trillion through 2030

Could generate an increase of ~150 million tonnes of

steel demand

If spreading out in a 10-year period, this could represent

a CAGR of 3-4% in steel demand in OBOR area

Only 10 of the OBOR countries are net exporters of

steel

Source: BHP Billiton, AIIB, Bloomberg Intelligence

Million tonnes / year

Road Railway Port Telecommunication Energy

Second Phase of

the Central Asia

Road Links

Karakoram

Highway

Railway projects in

Thailand and

Myanmar, Pakistan,

Iran and Giuseppe

Beijing - Moscow

Eurasian high-speed

rail

Enhance ports

constructions in

Shanghai, Tianjin,

Ningbo and

Guangzhou

Gwadar port project

Bilateral cross-border

communication lines

between Burma,

Tajikistan, Pakistan

Submarine cable

project in Southeast

Asia

Transmission

channels from

China's Xinjiang to

the five Central

Asian countries

14

Sources:

https://www.bhp.com/media-and-

insights/prospects/2017/09/belt-and-road-

initiative

https://www.marketscreener.com/BHP-

BILLITON-PLC-S-AFRI-1413356/news/BHP-

Billiton-S-Africa-China-Development-Forum-Belt-

and-Road-Initiative-Andrew-Mackenzie-

28230428/

https://www.afr.com/world/asia/bhp-s-mackenzie-

defends-belt-and-road-initiative-20190324-

p51716

https://www.scmp.com/business/companies/articl

e/2136372/chinas-ambitious-belt-and-road-

initiative-risk-worth-taking

Guangdong-Hong Kong-Macao Bay Area serves as a strategic hub for Belt and Road and stimulates the Southeastern economy

Sources: Greater Bay Area website, SCMP

Opportunities under the Greater Bay Area Initiative

We can ride on the increasing demand of high-quality construction steel, expanding current businesses while

consolidating its market leader position.

Our Offer:

Huge potentials in collaborating with multinational corporations to extend the services to other countries

High-quality

steel

High processing

efficiency High traceability

On-time

completion

Strong

emphasis on

safety

Covers about 11 cities: Hong Kong, Macao, Guangzhou,

Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou,

Jiangmen and Zhaoqing

Combined population: ~70 million

Combined GDP in 2017 reached USD$ 1.5 trillion

(approximately 12% of the national GDP), and the figure

is expected to reach US$4.62 trillion by 2030

15

Source:

https://www.bayarea.gov.hk/en/ab

out/overview.html

https://www.scmp.com/native/eco

nomy/china-

economy/topics/great-

powerhouse/article/3002844/great

er-bay-area-10-facts-put

https://www.scmp.com/business/c

hina-

business/article/2186681/can-

chinas-greater-bay-area-really-

rival-likes-tokyo-new

Building & Design

Solutions Business

Building & Design Solutions

Extensive client network of the Group’s infrastructure and property

business brings synergy and accelerates with the development of

the Building & Design Solutions Business

Increased market perception of better quality of life

Experienced team delivering technical and design services as well

as installation

Software solutions that simplify design and layout efforts for

customers

Brands Represented End-users

Distributor with Value-added Services Distribution Channels

Building & Design Solutions for Sanitary & Kitchenware

Wholesale to sub-dealers

Directly supply to projects

including our

property renovation

New Architectural & Design

Centre for retail business and

renovation where architects

and designers are influential

1

2

3

Architectural & Design Centre

catering to architects & designers

Product testing

Mock displays

Space for architects &

designers

Software solutions

Establish & manage showrooms

with sub-dealers

Credit payment terms

Property developers

Architects and

designers

Hotels

Interior design

companies

Healthcare and

Elderly care

17

New Product Line with Expanding Geographical Coverage

Re-entering Macau Market with TOTO

Enter Macau market with one-off solutions along with efficient technical support on site & instant spare parts replacement

Key project reference and project pipelines include:

New Product Line Catering General Residential Market

Durban is a Germany brand with various OEM possibilities on sanitary-wares, fittings & accessories

Durban is developed for design-oriented customers who look for tailor-made or unique solutions

Aim to offer a complementary one-off product portfolio

Expected contribution of around 3 to 5% of total turnover

Project Name

Seac Pai Van Residential Alexandra House Renovation

Macau City of Dream Renovation Sheraton Hotel Renovation

The Rosewood Hotel Chater House Renovation

St. Regis Hotel Hong Kong International Airport Food Court Renovation

Parisian Hotel 2.3 Bay Hong Kong Convention & Exhibition Centre Renovation

Galaxy Phase 3 HOH Prince Building Renovation

City of Dream Phase 2 Galaxy Phase 3C

Galaxy Phase 3 FOH Harbour City Renovation

St. George’s Building Renovation Hong Kong International Airport T1 Renovation

18

Financial Overview

Group Financial Summary

For the year ended 31 March

Financial highlights (HK$m) FY17/18 FY18/19 Change

Revenue 3,032.9 2,882.6 -5.0%

Gross profit 197.6 275.1 +39.2%

Operating profit / (loss) (90.7) 74.3 Negative to Positive

Profit / (loss) attributable to

owners of the Company (147.7) 13.9 Negative to Positive

Basic earnings / (loss) per share

(HK cents) (23.02) 2.17 Negative to Positive

Profitability ratios

Gross profit margin 6.5% 9.5% +3.0 p.p.

Operating profit margin (3.0%) 2.6% +5.6 p.p.

Net profit margin (4.9%) 0.5% +5.4 p.p.

Return on equity (14%) 1.4% +15.4 p.p.

20

The turnaround in profit was

mainly due to the increase in

revenue from the Property

Investment and Project

Management Business and the

recovery in the Construction

Materials Business

Revenue Analysis

Total revenue

2,231.6 2,164.6

330.1 346.8

378.5 268.7

63.0 100.0

29.6

2.5

FY17/18 FY18/19

Construction Materials Building & Design Solutions

Engineering Plastics Property Investment and Project Management

Unallocated

75.1% (73.6%)

12.0% (10.9%)

9.3% (12.5%)

3.5% (2.1%)

0.1% (0.9%)

Construction Materials Building & Design Solutions

Engineering Plastics Property Investment and Project Management

Unallocated

FY18/19 (FY17/18)

Total:

HK$2,882.6 million

(HK$3,032.9 million)

Total revenue by business segment

21

HK$m

Gross Profit Analysis

Gross profit and gross profit margin

HK$m

Gross profit margin by business segment

197.6

275.1 6.5%

9.5%

125.0

175.0

225.0

275.0

325.0

375.0

FY17/18 FY18/19

Benefited from the increase in sales orders from the reinforcing

bar processing and assembly business, as well as the reversal

of provision for onerous contracts for outstanding sales contract

order, gross profit margin increased by 3 p.p.

FY17/18 FY18/19 Change

Construction

Materials (1.2)% 4.1%

Negative to

Positive

Building & Design

Solutions 21.1% 20.7% -0.4 p.p.

Engineering

Plastics 5.7% 4.1% -1.6 p.p.

Property

Investment and

Project

Management

100.0% 100.0% Remain

Unchanged

22

Net Profit Analysis

Net profit and net profit margin Key expenses as % to revenue

HK$m FY17/18 FY18/19 Change

Selling and

distribution

expenses

58.6

(1.9%)

19.2

(0.7%) -1.2 p.p.

General and

administrative

expenses

278.1

(9.2%)

298.7

(10.4%) +1.2 p.p.

Net finance costs 65.7

(2.2%)

75.7

(2.6%) +0.4 p.p.

Income tax

credit/(expense)

(% to profit before

income tax)

1.8

(1.2%)

(13.4)

(75.4%) N/A

HK$m FY17/18 FY18/19 Change

Profit / (loss)

attributable to

owners of the

Company

(147.7) 13.9 Negative

to Positive

Basic earnings /

(loss) per share

(HK cents) (23.02) 2.17

Negative

to Positive

Dividend per share

(HK cents) 1.57 2.00 +27.4%

Dividend payout

ratio -- 92.3% --

23

Working Capital Management

HK$m As at 31 March 2018 As at 31 March 2019 Change

Total interest-bearing borrowings 1,558.9 1,492.5 -4.3%

– Long-term borrowings 611.3 704.8 +15.3%

– Short-term borrowings 947.6 787.7 -16.9%

Cash and cash equivalents 312.8 126.8 -59.5%

Pledged bank deposits 57.8 38.9 -32.7%

Net debts 1,188.3 1,326.9 +11.7%

Net gearing ratio Note 1 52.2% 54.4% +2.2 p.p.

FY17/18 FY18/19 Change

Net cash generated from/(used in)

operating activities (HK$m) (106.0) (118.5) +11.8%

Inventory turnover days 37 41 +4 days

A/R turnover days 61 57 -4 days

A/P turnover days 25 18 -7 days

Cash conversion cycle days 73 80 +7 days

Note 1: Net gearing ratio = net debts / (total equity + net debts ); Net debt = total borrowings – (pledged bank deposits + cash and cash equivalents)

24

Capital Allocation Philosophy

2

Priority

Acquisition Opportunities Identify potential projects that have strong potential of occupancy and rental upside improvement after enhancement works,

leveraged our strong network and relationships with funds to lower the capital requirement for each individual project

Identify Building & Design Solutions competitors that allow us to expand our geographic coverage and diversify our brand

and product offer

Our strong relationships with fund and brands with international appeal but under financial distress

3 Capital Expenditure Automated cut & bend plant in Hong Kong and increase the capability to meet the strong growth in market demand

(internal or bank funding)

Existing property upgrade to enhance the properties’ values, occupancy rates and average rent (internal or bank funding)

4 Dividend Consistent payout of dividends as preferred way of returning capital to shareholders

5 Share Buyback

1 Ensure Sufficient Working Capital for Normal Business Operations

25

Appendix

Corporate Milestones

￭ Formed JV

Company with

Baosteel Group -

Shanghai Bao

Shun Chang, with

focus in the steel

processing &

distribution

business

(HKSHA holds

66.7% ownership)

￭ Launched

Building &

Design

Solutions

business and

became the

distributor of

TOTO Japan

sanitary ware

products in HK

￭Obtained

distribution

rights to

TOTO

products in

Hubei

Province

￭ Jointly acquired

investment property

“The Point Jing An”

in Shanghai

￭ Listed on the

Main Board of the

Hong Kong Stock

Exchange,

stock code:

1001.HK

￭Commenced

distribution

business in high

quality

engineering

plastics resins

￭ Founded as

an importer

of

construction

steel

￭Disposal of the joint investment

property “The Point Jing An” in

Shanghai

￭ Acquired He Tai, one of Hong

Kong’s largest steel recycling plants

￭ Acquired the deluxe serviced

complex apartment “Park Lane”

(formerly known as “Metropark”) in

Shanghai through investment in a

fund

￭ Partnership with NatSteel to

establish an automated rebar

processing and assembly plant in

Tsing Yi

2015

￭ Launched Hong

Kong's first

automated rebar

processing and

assembly plant

￭Completed

acquisition of “Central

Park Pudong”

(Formerly known as

“Chuang Yi Tower”) in

Shanghai

￭Opened the largest TOTO

Flagship Architectural &

Design Centre in HK

￭ Acquired the remaining

33.3% stake of Shanghai

Bao Shun Chang from

Baosteel Group (HKSHA

100% ownership)

￭ Acquired 2nd investment

property “Central Park

Putuo” (Formerly known as

“China CTS Tower”) in

Shanghai

2016 2017

￭ Successful

disposal of

Central Park

Putuo and

Shanghai

Park Lane

￭ Became the

sole distributor

of KEUCO

sanitary

products in

Hong Kong

1961 1964 2008 2013 2014 1993 2011 1994 1997 2018

￭Completed the

formation of a co-

investment venture

with an investment

arm of the Minister for

Finance of the

Government of

Singapore

27

2019

￭Central Park

Jing’an

completed

ramp-up and

began to

generate profit

for the Group

Shareholding Structure

Mr. Andrew Yao (Chairman)

& Associates

44.2%

Public Shareholders

55.8%

No. of issued shares (as of 31 July 2019): 641,232,315 shares

28

Consolidated Income Statement

For the Year ended 31 March

HK$’000 2018 2019

Revenue 3,032,852 2,882,605

Cost of sales (2,835,235) (2,607,507)

Gross profit 197,617 275,098

Selling and distribution expenses (58,610) (19,226)

Net impairment loss on financial assets (1,218) (4,262)

General and administrative expenses (278,052) (298,720)

Other gains – net 34,765 12,513

Fair value gain on investment properties 14,818 108,865

Operating (loss) / profit (90,680) 74,268

Finance income 5,010 4,920

Finance costs (70,708) (80,638)

Share of results of joint ventures – net 14,366 19,276

(Loss) / Profit before income tax (142,012) 17,826

Income tax (expense) / credit 1,772 (13,447)

(Loss) / Profit for the Year (140,240) 4,379

(Loss) / Profit Attributable to:

Owners of the Company (147,712) 13,888

Non-controlling interests 7,472 (9,509)

Basic (loss) / earnings per share (HK cents) (23.02) 2.17

Final dividends per share (HK cents) 1.57 2.00

29

Consolidated Statement of Financial Position

HK$’000 As at 31 March 2018 As at 31 March 2019

Property, plant and equipment 131,319 116,767

Investment properties 1,389,377 1,413,227

Land use rights 9,316 9,019

Intangible assets 6,607 2,602

Investments in joint ventures 19,931 299,747

Prepayments, deposits and other receivables 22,628 19,084

Deferred income tax assets 24,817 47,082

Financial asset at fair value through

other comprehensive income -- 144

Available-for-sale financial asset 286 --

Total non-current assets 1,604,281 1,907,672

Prepayments, deposits and other receivables 186,102 115,410

Inventories 289,566 290,659

Amount due from a joint venture 17,593 --

Trade and bill receivables 528,238 480,523

Financial asset at fair value through profit or loss 135,535 36,698

Pledged bank deposits 57,807 38,884

Cash and cash equivalents 312,766 126,775

Total current assets 1,527,607 1,088,949

Total assets 3,131,888 2,996,621

30

Consolidated Statement of Financial Position (cont.)

HK$’000 As at 31 March 2018 As at 31 March 2019

Trade and bill payables 284,811 189,093

Receipts in advance 24,174 27,956

Accrued liabilities and other payables 81,604 52,819

Current income tax liabilities 12,032 13,360

Borrowings 947,565 787,710

Total current liabilities 1,350,186 1,070,938

Accrued liabilities and other payables 11,813 15,246

Deferred income tax liabilities 71,156 92,162

Borrowings 611,292 704,839

Total non-current liabilities 694,261 812,247

Net assets 1,087,441 1,113,436

Equity

Equity attributable to owners of the Company

Share capital 64,055 64,123

Reserves 993,648 926,223

1,057,703 990,346

Non-controlling interests 29,738 123,090

Total equity 1,087,441 1,113,436

31

Thank You

DISCLAIMER

This document is confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in

whole or in part, for any purpose without prior written approval from Hong Kong Shanghai Alliance Holdings Limited (“HKSHA”).

HKSHA and its subsidiaries (collectively the “Group”) make no representation or warranty (express or implied) as to the accuracy, reliability or

completeness of this document. The Group and its respective directors, employees, advisors, agents and consultants shall have no liability

(including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters

(expressed or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that

cannot be excluded.

This document may contain forward looking statements concerning the Group. Forward looking statements are not statements of historical fact

and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risk,

uncertainties, and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the

forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates

should change or to reflect other future developments.

No representation or warranty (expressed or implied) is made by the Group or any of its respective directors, employees, advisors, agents or

consultants that any forecast, projections, intentions, expectations or plans set out in this document will be achieved, either totally or partially, or

that any particular rate of return will be achieved.

This document is not:

(I) an offer of securities for sale in Hong Kong or elsewhere; or

(II) an invitation to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities; or related to the issue of any securities.