Financial Statements/ESG Information - Interim Report 2016

Stock Code : 0184

INTERIM REPORT 2016 INTERIM REPORT 2016

Interim Report 2016

HO Kian Guan - Executive Chairman

HO Kian Hock - Deputy Executive Chairman

TSE See Fan Paul CHAN Lui Ming Ivan YU Yuet Chu Evelyn HO Chung Tao

HO Chung Hui

* HO Kian Cheong

** CHAN Yau Hing Robin

** KWOK Chi Shun Arthur

** WANG Poey Foon Angela

** YU Hon To David

HO Chung Kain (Alternate to HO Chung Hui)

* Non-executive Director

** Independent Non-executive Director

CHAN Yau Hing Robin - Chairman

KWOK Chi Shun Arthur WANG Poey Foon Angela YU Hon To David

WANG Poey Foon Angela - Chairman

CHAN Yau Hing Robin KWOK Chi Shun Arthur YU Hon To David

TSE See Fan Paul YU Yuet Chu Evelyn

KWOK Chi Shun Arthur - Chairman

CHAN Yau Hing Robin WANG Poey Foon Angela YU Hon To David

TSE See Fan Paul HO Chung Tao

KPMG

8th Floor Prince's Building 10 Chater Road Central

Hong Kong

Tricor Tengis Limited

Level 22, Hopewell Centre 183 Queen's Road East Hong Kong

NG Sing Beng

Room 2902 West Tower Shun Tak Centre

168-200 Connaught Road Central Hong Kong

www.keckseng.com.hk

1

Keck Seng Investments (Hong Kong) Limited‌

The board of directors (the "Board") of Keck Seng Investments (Hong Kong) Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim financial information of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016.

The consolidated profit attributable to equity shareholders of the Company for the six months ended 30 June 2016 was HK$81,574,000 (HK$0.240 per share), compared to HK$129,993,000 (HK$0.382 per share) for the first six months of 2015.

The Board has declared an interim dividend of HK$0.03 (2015: HK$0.03) per share for 2016 payable on Friday, 21 October 2016, to equity shareholders whose names appear on the register of members of the Company on Friday, 7 October 2016.

The Group's business is organized by geographical locations. These locations are mainly divided into Macau, Vietnam, the United States of America (the "US"), the People's Republic of China (the "PRC"), Japan, Canada and other markets.

A summary and analysis of the operations are as follows:

During the first half of 2016, revenue from Macau operations decreased slightly to HK$53.1 million, as compared to HK$53.3 million in the first half of 2015, a decrease of 0.4%. The decrease came about mostly as a result of reduction in rental income arising from lower rental rates. Occupancy rates, however, have remained high and there was take up of commercial space. There were no sales of properties during the first six months of 2016.

Tourist arrivals and turnover of the gaming industry appeared to have stabilized in the first half of 2016. It is expected that there will be two to three luxurious hotels being completed in Cotai of Macau in the second half of 2016.

According to the latest data released by Macau Government, total transaction volume increased 1.37 times from previous quarter to 2,679 residential units in the second quarter of 2016. The average transaction price of second-hand residential units rose by 7% up to MOP75,127 per square meter (net) as compared to the first quarter of 2016.

2

Interim Report 2016

After reviewing the property market conditions and the state of the Macau economy, directors considered that the properties held for sale were to be disposed of at an opportune moment in order to maximize value for the Group. The property market was expected to improve after the current period of adjustment in the market. Over the longer term, capital values of properties in Macau will be further enhanced after the completion of the Hong Kong-Zhuhai-Macau Bridge and the Macau light-rail transit line, with one of the stations immediately adjacent to Ocean Gardens, the Group's premier development. In the short term, the Group will therefore continue to maximize revenue by leasing out the properties held for sale.

Vietnam's economy expanded an estimated 5.55% year-on-year in the second quarter of 2016, compared to 5.48% growth in the first quarter and lower than 6.47% in the same quarter last year. The economy is still heavily dependent on manufacturing and agricultural sectors as the main drivers of economic growth. With impending visits by President of China and President of US respectively, we foresee that Vietnam shall continue to be an attractive destination for investors.

During the first six months of 2016, the Group's revenue from Vietnam increased to HK$339.5 million, as compared to HK$339.0 million in the first half of 2015, an increase of 0.1%.

Sheraton Saigon Hotel and Towers

For the first half of 2016, average room rate was at US$162 per room night, as compared to US$176 per room night during the first six months of 2015. Occupancy rate has increased to 69.0% during the first half of 2016, as compared to 66.7% for the first half of 2015.

Caravelle Hotel

For the first half of 2016, average room rate was at US$127 per room night, as compared to US$143 per room night during the first six months of 2015. Occupancy rate has increased to 56.5% during the first half of 2016, as compared to 51.4% for the first half of 2015.

3