The board of directors of Shenzhen Investment Ltd. announced that based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended 30 June 2014, profits attributable to the shareholders of the company for the six months ended 30 June 2014 are expected to decrease by approximately 40% odd as compared with the corresponding period last year. Such expected decrease is mainly attributable to the downturn in properties market of China during the same period, and also the following: a majority of the property projects of the Group are scheduled to be launched for sale, and the sale proceeds of sold properties will mainly be booked in the second half of 2014; the prohibition of sales of industrial property to individuals and the requirement for the payment to the Government of a proportion of the disposal gain from industrial property sales pursuant to the Management Measures for Industrial Building Transfer in Shenzhen (Measures) implemented during the period had negative impact on the sales arrangements of the industrial buildings of the group located in Shenzhen (for example, Terra Building); however, the management expects that there will be positive adjustment to the Measures shortly, and the unsold premises in Terra Building are proposed to be launched for sale after such adjustment takes effect; and the other income and gains for the first half of 2014 are less than those for the corresponding period last year, which included a non-recurring bargain purchase gain of approximately HKD 638 million during the corresponding period last year in relation to Shenzhen Silicon Valley (namely, the Shenzhen Kezhigu Project). On the other hand, the increase in fair value of investment properties included in the profits for the first half of 2014 is higher than that for the corresponding period last year.

The Board expects that the results of the group for the full year of 2014 will remain stable as compared with the full year results of 2013.