Wheelock and : & Company Limited – 2016 Final Results Announcement

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(Incorporated in Hong Kong with limited liability)

Stock Code: 20

• Contracted sales increased by 71% to achieve a new record of HK$22.1 billion.
• Residential contracted sales was the growth driver which increased by 156% to HK$16.9 billion and accounted for 76% of contracted sales.

  • 92% average sell-through rate was achieved on all newly launched units.

  • Mount Nicholson sold six houses and 16 apartments for HK$10.0 billion or HK$81,300 per square foot (HK$5.0 billion on attributable basis). Two adjoining apartment units were sold for a new record of HK$104,800 per square foot.

  • Savannah presold 99% of launched units for HK$5.4 billion, underpinning the continued success of O'South portfolio.

  • ONE HOMANTIN gained momentum and presold 86% of launched units for HK$4.3 billion.

• One HarbourGate East Office Tower and East Retail Villa were sold en-bloc for HK$4.5 billion, marking the fourth en-bloc office transaction in four consecutive years.
• Net order book increased by 27% to HK$15.9 billion, locking in future revenue stream.
• Urban-focused land bank under management was maintained at 8.2 million square feet after acquiring a residential site in Kwun Tong. Wheelock Group Financials

• Group's core profit increased by 11% to a record high at HK$11.8 billion.

• Attributable core profit from Wharf increased to HK$8.3 billion.

• Strong balance sheet and holding power with net gearing at 14.6% and Wheelock's own net gearing before consolidation at 13.8%.

GROUP RESULTS

Excluding investment property revaluation gain and exceptional items, the core profit was HK$11,811 million (2015: HK$10,598 million).

Group profit attributable to equity shareholders was HK$16,294 million (2015: HK$14,232 million). Earnings per share were HK$8.02 (2015: HK$7.00).

DIVIDENDS

A first interim dividend of 45.0 cents per share was paid on 19 September 2016. In lieu of a final dividend, a second interim dividend ("Second Interim Dividend") of 85.0 cents per share will be paid on 28 April 2017 to Shareholders on record as at 12 April 2017. Total distribution for the year 2016 will amount to HK$1.30 (2015: HK$1.15) per share.

BUSINESS REVIEW

On completion, four developments were completed during the year, including One HarbourGate, Kensington Hill, Mount Nicholson and Peninsula East. Presold but not yet completed contracted sales

i.e. net order book increased by 27% to HK$15.9 billion, locking in future revenue stream.

Wheelock strives to contribute to sustainable development and create positive impact in society. Under the banner of "Business-in-Community", our CSR efforts aim to bring lasting value to our people, environment and community.

Project WeCan is a youth development programme launched in 2011 aiming to provide underprivileged secondary school students with opportunities and cares to pursue higher studies and future career. The project is continuing to earn recognition and moving into a new phase with number of supporting partners has nearly jumped four-fold to 42 in 2016, comprising of 31 corporates, five local universities, three consulates and three Government organisations. With their immense dedication and contribution, 43,000 students from 51 secondary schools have benefited. In 2016, 73 students were awarded Project WeCan Scholarship to continue their education in local universities. Together with the 58 awardees last year, a total of 131 students from humble background are provided with financial aid with a maximum amount of HK$100,000 throughout the four-year study for each of them. This echoes the project's vision of inspiring the next generation for a brighter future.

Riding on the successes of the previous three years, the Community Chest Wheelock Swim for Millions has become one of the most popular annual charity sports events in Hong Kong. The popularity of the event was marked by a jump in the number of relay teams to 123 in 2016, with participations varied from 15 families, 71 corporations, 25 schools and 12 disciplinary forces. Furthermore, the oldest swimmer was 74 while the youngest was only 5, underpinning our initiatives to promote healthy lifestyle. It has not only created unparalleled excitement for the competitors, but also a fun day for family with an array of game booths for children and cheering teams. During the

year, the event raised over HK$4 million to support local youth services.

The Wharf (Holdings) Limited ("Wharf") 61.6% Equity Investment

Core profit from Hong Kong properties increased by 35% to exceed HK$10.0 billion, while that from China properties, notwithstanding the devaluation of Renminbi, grew by 16% to exceed HK$2.6 billion. As a result, properties' share of core profit surged to 92%, affirming its primary strategic focus. Investment Properties (''IP'') core profit increased by 6% to HK$8.8 billion, on the back of high occupancy and favourable rental reversion achieved. In Hong Kong, IP continued to underpin the solid performance with total revenue increased by 6% to HK$12.9 billion and operating profit by 7% to HK$11.3 billion. Performance of Harbour City, Times Square and Plaza Hollywood remained solid with 3% to 6% increase in revenue. On office, steady demand continued to drive positive rental reversion and revenue.

In China, adverse impact of currency movements on translation to Hong Kong dollars slowed China IP growth in 2016. Revenue increased by 2% to HK$2.4 billion and operating profit by 1% to HK$1.3 billion. Chengdu International Finance Square ("IFS") continued to outshine the competition. The mega mall boasts an exquisite collection of nearly 300 global premium brands with over 100 debuts in western China, has earned a host of reputable accolades including "VIVA Best-of-the-Best Design and Development Award" by International Council of Shopping Centers in 2016, signifying China's first-ever commercial project winning this prestigious global title. Office demand from renowned tenants remained solid. Nearly 110,000 square metres (40% of total GFA) have been leased, with rental rates achieved among the highest in the city.

A solid pipeline of IFS developments is progressing at full speed to strengthen the recurrent income base. Chongqing IFS, a 114,000-square-metre retail podium, coupled with Niccolo Chongqing, are scheduled to open in the third quarter of 2017. Currently, over 90% of the retail floor plates were under offer to tenants or in serious discussion with key anchors. Changsha IFS, a massive 254,000-square-metre mall is scheduled to open in late 2017, which will be the ultimate shopping, dining, lifestyle and leisure destination in Hunan province and the most coveted destination for a wide assortment of celebrated retailers. Over 85% of total retail areas were under offer to tenants or discussion, a good testament to retailers' trust and confidence in management execution capabilities and the untapped potential of the city.