Sino Land : Final Results for the Year Ended 30 June 2017

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I am pleased to present the 2016/2017 Annual Report to shareholders.

For the year ended 30th June, 2017, the Group's underlying net profit attributable to shareholders, excluding the effect of fair-value changes on investment properties, was HK$5,526.8 million (2015/2016: HK$5,351.4 million). Underlying earnings per share was HK$0.89 (2015/2016: HK$0.88).‌

The Group's reported net profit attributable to shareholders was HK$7,414.6 million (2015/2016: HK$7,090.4 million). Earnings per share was HK$1.19 (2015/2016: HK$1.16). The reported profit for the year included a revaluation surplus (net of deferred taxation) on investment properties of HK$1,887.8 million (2015/2016: HK$1,739.0 million).‌

The Directors have resolved to recommend a final dividend of 40 cents per share in respect of the year ended 30th June, 2017 to shareholders whose names appear on the Register of Members of the Company on 2nd November, 2017. Together with the interim dividend of 13 cents per share, the total dividend for the year ended 30th June, 2017 is 53 cents per share.

The Directors propose that shareholders be given the option to receive the final dividend in new shares in lieu of cash. The scrip dividend proposal is subject to: (1) the approval of the proposed final dividend at the Annual General Meeting to be held on 26th October, 2017; and (2) The Stock Exchange of Hong Kong Limited granting the listing of and permission to deal in the new shares to be issued pursuant to this proposal.

A circular containing details of the scrip dividend proposal will be dispatched to shareholders together with the form of election for scrip dividend on or about 9th November, 2017. It is expected that the final dividend warrants and share certificates for the scrip dividend will be dispatched to shareholders on or about 5th December, 2017.

1. Sales Activities

   Total revenue from property sales for the year ended 30th June, 2017, including property sales of associates and joint ventures recognised by the Group, was HK$15,029.1 million (2015/2016: HK$11,439.4 million).

   Total revenue from property sales comprises mainly the sales of residential units in Corinthia By The Sea in Tseung Kwan O, Dragons Range in Kau To, Mayfair By The Sea I and II in Pak Shek Kok, Cluny Park at 53 Conduit Road, Botanica Bay in Lantau and Mayfair By The Lake in Xiamen, and to date, approximately 100%, 99%, 99%, 100%, 93%, 94% and 99% of the units in the respective projects have been sold.

   During the financial year 2016/2017, the Group launched the residential project Park Mediterranean in Sai Kung for sale and to date, approximately 56% of the units have been sold.

   In China, 215 residential units in The Palazzo in Chengdu were launched for sale during the financial year 2016/2017. To date, a total of 3,915 residential units in The Palazzo in Chengdu and 1,649 residential units in Dynasty Park in Zhangzhou have been launched for sale and approximately 99% of the units in both of the projects have been sold.

2. Land Bank

   As at 30th June, 2017, the Group has a land bank of approximately 32.8 million square feet of attributable floor area in Hong Kong, China, Singapore and Sydney which comprises a balanced portfolio of properties of which 55.3% is residential; 28.7% commercial; 7.4% industrial; 4.6% car parks and 4.0% hotels. In terms of breakdown of the land bank by status,

   20.2 million square feet were properties under development, 11.9 million square feet of properties for investment and hotels, together with 0.7 million square feet of properties held for sale. The Group will continue to be selective in replenishing its land bank to optimise its earnings potential.

   During the year ended 30th June, 2017, the Group acquired in Hong Kong three sites from the HKSAR Government as well as the development rights of four sites with a total attributable floor area of approximately 1.5 million square feet. Details of the projects are as follows:

   Location	Usage	Group's Interest	Attributable Floor Area(Square feet)
   1. TPTL 228 Fo Yin Road, Pak Shek Kok, Tai Po, New Territories, Hong Kong	Residential	100%	412,530
   2. Lot No. 1040 in D.D. No. 103 Kam Sheung Road Station Package One Property Development, Kam Ho Road and Tung Wui Road, New Territories, Hong Kong	Residential	Joint Venture	412,247
   3. The Fullerton Hotel Ocean Park Hong Kong Tai Shue Wan, Hong Kong	Hotel	60%	262,020
   4. KCTL 524 Wing Kei Road, Kwai Chung, New Territories, Hong Kong	Industrial	100%	176,906
   5. AIL 462 Yip Kan Street and Wong Chuk Hang Road, Wong Chuk Hang, Hong Kong	Commercial	60%	144,567
   6. IL 9064 Site A, Peel Street/Graham Street, Central, Hong Kong	Residential	Joint Venture	84,260
   7. NKIL 6558 1-3B Kowloon Road / 1-5 Kiu Yam Street, Sham Shui Po, Kowloon, Hong Kong	Residential/ Retail	Joint Venture	52,571
   1,545,101

   Subsequent to the year ended 30th June, 2017, the Group acquired a site in Whitehead, Ma On Shan (STTL 611) at a government tender for residential development on 21st July, 2017. Upon completion, it will provide a total of approximately 119,351 square feet of attributable gross floor area.

   In China, the Group acquired a commercial site in Qianhai during the financial year 2016/2017 and details of the project are as follows:

   Location	Usage	Group's Interest	Attributable Floor Area(Square feet)
   T102-0262 Land Parcel 04, Unit 7, Qianwan Area, Qianhai Shenzhen-Hong Kong Modern Service Industry Corporation Zone, Shenzhen, PRC	Serviced Apartment	50%	247,572

3. Property Development

   During the year ended 30th June, 2017, the Group completed the project Mayfair By The Lake in Xiamen and obtained Occupation Permits for two residential projects in Hong Kong and details of the projects are as follows:

   Location	Usage	Group's Interest	Attributable Floor Area(Square feet)
   1. Mayfair By The Lake 26 North Hubin Road, Xiamen, PRC	Residential/ Retail	100%	522,223
   2. The Staunton Suites 22 Staunton Street, Central, Hong Kong	Residential/ Retail	100%	37,629
   3. Paloma Cove 8 Peng Chau Ho King Street, Peng Chau, New Territories, Hong Kong	Residential	100%	14,372
   574,224

4. Rental Activities

For the year ended 30th June, 2017, the Group's gross rental revenue, including attributable share from associates and joint ventures, increased 3.0% to HK$3,949.1 million (2015/2016: HK$3,834.1 million) and net rental income increased 4.2% to HK$3,486.0 million (2015/2016: HK$3,344.7 million). The increase in rental revenue was mainly due to higher