Symphony : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

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新灃集團有限公 司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 01223)

(Warrant Code: 01537)

It is my pleasure to present the results of the Group for the first half of 2017.

In the first half of 2017, the Group continued to face challenges ranging from general market uncertainty and volatility. Despite these headwinds, the Group demonstrated its resilience and delivered sales growth in Travel Retail.

The Group continues to expand its Travel Retail strategy. We successfully won the bid for a parcel of land of 60,273 sq.m. in Xiamen in mid February 2017. This will be developed for our flagship Park Outlet store in China which will have a catchment area of more than 50 million people around a 3 hour vicinity of Xiamen city.

Overall revenue for the Group in the first half of 2017 was HKD158.7 million, a slight decrease of 9.7% from same period last year.

Profit attributable to the owners of the Company after tax was HKD36.9 million, a significant increase from the same period last year. This is due to the fair value increase in our Group's property investment holdings.

* For identification only

Dividend

The board recommends no dividend payout for the interim period.

Outlook

The Group will continue to build on its strategy in Travel Retail. The opening of our Anyang City Park Outlet in the late 3rd quarter of 2017 will not only solidify our presence across the PRC but also build on our Park Outlet Brand. We will also enhance our product mix services and cater for more sizeable food and beverages chain to our Park Outlet Malls.

In our community malls we also anticipate occupancy rates to increase in both Chongqing and Tianjin as more reputable tenants will be signed.

We are confident with our duty free business in Kinmen as we expand our product range in store and tie up alliances with key partners and suppliers.

We are also looking for business development opportunities to further expand our duty free business geographically.

Regarding our brands, we expect a strong second half from our Arena joint venture operations.

The summer months of July and August will fuel a strong second half momentum for 2017 as we increase distribution, points of sales and points of usage. Marketing efforts with Descente will also raise communication awareness for the brand.

Online momentum will also be captured via our e-commerce platform which captures major e-commerce stores like JD, T Mall and Amazon.

For our financial services business, we will continue a prudent management approach to manage and mitigate risk. At the same time, we will explore potential strategic partnership and opportunities as we move forward.

Pony will continue to expand into new geographical territories in Africa, Middle East & Latin America in the second half of 2017.

We expect the second half of the year to be exciting and productive as we continue to build on our strategic platform.

Finally we would like to thank our Board and management for their devoted service during the interim period and of course, we want to thank our shareholders, customers and suppliers for their continued support for the Company.

Business Performance

1. Travel Retail

2. Outlet Malls

   The Group Shenyang's outlet mall sales revenue grew 9.4% versus the same period last year spurred by new product mix and the addition of new product service categories. The Group's opening of Anyang City Park Outlet, a joint venture with China International Travel Service Group Corporation was postponed to the 3rd Quarter of 2017.

   The Group is pushing forward its plan of completing the construction of its Park Outlet anchor flagship store in Xiamen in late 2018.

   At the same time the Group intends to expand its professional management of outlets malls in different cities in China. Ongoing discussions are being held with major property groups in China to capitalise on Symphony's Park Outlet management services.

3. Community Malls

   Our community mall in Tianjin hailed in Metro AG our anchor tenant. Metro is one of the biggest supermarket chains in the world. Tianjin occupancy rate is also rising. There are on-going discussions with key tenants and we expect occupancy rate to further increase.

   Our Chongqing mall is also performing well with improving occupancy rates.

   We are aggressively pursuing customer services and a new product mix to enhance the mall traffic.

4. Duty Free

   Despite lower tourist arrivals from China, our duty free operations in Kinmen saw an increase of sales revenue of 68.4% versus same period of last year. Aggressive sourcing and a restructure of product mix captured more sales for the operation.

5. Brands

6. Arena

Our joint venture with Descente Group for the brand Arena which just started in early 2017 is performing well. After six months of operations only, sales revenues are at HKD59.8 million.