Shun Tak Announces 2014 Interim Results

(Incorporated in Hong Kong with limited liability) (Stock code: 242)

website: http://www.shuntakgroup.com

Shun Tak posting 120% year-on-year increase in turnover and 225% growth in profit

(August 29, 2014- Hong Kong) Shun Tak Holdings Limited ("Shun Tak" or "the Group"; stock code:
242) posted a turnover of approximately HK$3,726 million over the first six months of 2014, a
120.4% year-on-year growth. Excluding the revaluation surplus on investment properties, profit attributable to shareholders registered 224.9% growth at HK$534 million for the first half of 2014. Basic earnings per share are HK36.5 cents. The interim results reflect strong business fundamentals in all core operations. The Board recommends an interim dividend of HK5.0 cents per share (2013: nil).
"The Group achieved an outstanding first half of 2014 and expects to navigate a steady course for the rest of year" said Ms. Pansy Ho, Managing Director of Shun Tak Holdings Limited. "Strong execution across our businesses helped to deliver better than expected earnings, while continued momentum in the tourism industry provides catalyst for medium term growth. We look forward to unleashing the full potentials in our pipeline of new property projects in Macau and China in the
coming years, which will further strengthen our healthy financial position achieved through prudent capital management."

In Hong Kong, the Group achieved solid sales for Chatham Gate over the first six months of 2014.
87 units have been sold at satisfactory prices, bringing accumulated sales to 324 units out of a total of 334 units as of 30 June 2014. The shopping arcade also opened in January 2014, registering a
87% occupancy as of 30 June 2014.
Five luxury residential houses at Chung Hom Kok are currently undergoing fit out works and two show houses will be available for viewing before the end of 2014.
In Macau, the Group has sold out all residential units at One Central Residences and The Residences and Apartments at Mandarin Oriental. For the latter, the last triplex unit was sold in February 2014 at record breaking market price. Another flagship development by the Group, Nova Park, is 76% sold as of 30 June 2014. Sales launch for the remaining units is scheduled for the second half of 2014.
On 31 July 2014, the Group and its joint venture partner has completed the respective sales agreements with a third party to dispose the Taipa Hills Memorial Garden along with its value-adding services for a total consideration of HK$793 million, subject to completion adjustment, allowing the Group to monetize the assets with favorable returns during the investment period.
In China, three major projects are progressing on track.
Shun Tak Tower, a wholly-owned property in Beijing Dong Zhi Men by the Group, will comprise both office and hospitality components in the future. It has a developable gross floor area of approximately 419,000 square feet rising 21 levels aboveground, and approximately 182,000 square feet in 4 underground levels. Handover of the property was completed in June 2014 and fitting out works are in progress. It is expected that leasing of units will commence in upcoming months.
Beijing Tongzhou Integrated Development, an iconic landmark in Tongzhou, is an integrated development with a gross floor area of approximately 6.8 million square feet comprising retail, office and serviced apartments. It enjoys direct connectivity to future subway and bus interchange stations, and is slated for completion in 2016.
In January 2014, the Group entered into a strategic partnership with Perennial Hengqin Investment
Group Pte. Ltd. to develop a 23,834 square meter site into an integrated development to include
office, hotel, commercial, and serviced apartments. It is located adjacent to the port and commercial facilities at the border to Macau, and is only a few minutes' drive away from the Cotai strip. Site works are underway with foundation works anticipated to commence in the second half of 2014.

The transportation division made significant headway in the first half of 2014 benefiting from stable growth in regional tourism demand.
TurboJET's signature Hong Kong - Macau routes registered a marginal increase of 2% in passenger numbers as compared with the same period last year, posting a profit of HK$99 million. Its Premier Grand class delivered strong returns, exhibiting a 41% year-on-year surge over the first half of 2014, while its SkyPier air-sea routes continued to be well received by international travelers, having serviced 1.3 million passengers in the same period.
On land, Shun Tak & CITS Coach (Macao) Limited, which operates coach rental services within Macau locally as well as cross-border PRC routes, has a fleet of 154 vehicles in service. HK$49 million in revenue was recorded over the first half of 2014.

Tourism performance continued its strong momentum in the first half of 2014, with the hospitality division experiencing all-rounded growth across different facets of the business, led by increased return from hotel investments, followed by hospitality management and travel & MICE services. The division collectively posted HK$42 million in operating profit (1H 2013: HK$35 million), with profitability partially offset by start-up investments in the newly-established Artyzen Hospitality Group.
In terms of hotels performance, Hong Kong SkyCity Marriott Hotel exhibited remarkable growth by posting an average occupancy rate of 84% and a 10% year-on-year growth in revenue. Mandarin Oriental, Macau also attained an average occupancy rate of 81% and registered a revenue of MOP125 million (equivalent to HK$121 million). Westin Resort Macau, recently rebranded as the Grand Coloane Resort, maintained an occupancy rate of 65% albeit going through a room upgrade program in the first half of 2014.

The investment division recorded a gain of HK$216 million (1H 2013: HK$100 million) over the first half of 2014, with the outstanding performance attributable to strong dividend income from Sociedade de Turismo e Diversões de Macau, S.A.("STDM") on the back of another period of robust growth in gaming revenue.
The Group is involved in the management and operation of the new Kai Tak Cruise Terminal in partnership with Worldwide Flight Services Holding SA and Royal Caribbean Cruises Ltd. As of 30
June 2014, the terminal has 87% of its retail space leased and received a total of 27 berth bookings for the full calendar year of 2014.
Building upon a solid foundation of strategic portfolio, the Group is diligently working to optimize
shareholders' return and will continue to invest prudently in generating values for its shareholders.

For media enquiries, please contact:
Karen Lee
Associate Director- Corporate Communications
Email: karenlee@shuntakgroup.com
Tel: +852 2859 4823

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