Announcement: Results for the six months ended 30 June 2017

RNS Number: 3237P 30 August 2017

Asian Growth Properties Limited

ASIAN GROWTH PROPERTIES LIMITED

(Incorporated in the British Virgin Islands and continued in Bermuda with limited liability)

Results for the period ended 30 June 2017

Asian Growth Properties Limited (the "Company") (AIM Stock Code: AGP), the Hong Kong based China property development and investment company, announces its unaudited condensed consolidated results for the period ended 30 June 2017. These financial results are the first results since the completion of the disposal of the Company's non-China properties on 15 May 2017.

Financial Highlights

• Profit attributable to the Company's shareholders of HK$2,599.4 million (£256.7 million) (2016: HK$561.3 million (£53.7 million)).

• Profit attributable to the Company's shareholders (excluding revaluation surplus net of deferred tax) was HK$2,590.6 million (£255.9 million) (2016: HK$573.9 million (£54.9 million) excluding revaluation deficit net of deferred tax). The increment was a result of a realized gain of HK$2,549.9 million (£251.9 million) on the sale of the entire issued share capital of Benefit Strong Group Limited which holds the non-PRC assets pursuant to the sale and purchase agreement dated 31 March 2017 made between the Company and S E A Holdings Limited ("SEA").

• Earnings per share for profit attributable to the Company's shareholders of HK293.3 cents (29.0 pence) (2016: HK63.3 cents (6.1 pence)).

• Net asset value per share attributable to the Company's shareholders as at 30 June 2017 of HK$4.9 (48.4 pence) (31 December 2016: HK$14.4 (150.5 pence)).

• The Group's equity attributable to the Company's shareholders amounted to HK$4,295.6 million (£424.3 million) as at 30 June 2017 (31 December 2016 pro forma (unaudited) Note1: HK$4,263.5 million (£445.5 million)).

• Geographical location of the Group's property assets were as follows:

  30 June 2017 31 December 2016

  Hong Kong - HK$892.2 million (£93.2 million)

  United Kingdom - HK$1,494.1 million (£156.1 million) Mainland China HK$2,486.6 million (£245.6 million) HK$2,413.1 million (£252.1 million) Total HK$2,486.6 million (£245.6 million) HK$4,799.4 million (£501.4 million)

• As at 30 June 2017, bank balances and cash of the Group amounted to HK$1,724.5 million (£170.3 million). After netting off bank borrowings of HK$129.0 million (£12.7 million), the Group had a net cash position of HK$1,595.5 million (£157.6 million) at period end date, compared to a net cash position of HK$6,320.3 million (£660.4 million) as at 31 December 2016.

• The Board declared a special dividend of HK$10.35 (£1.06 Note 2) per common share to the shareholders of the Company and the special dividend was paid on 15 May 2017.

  Operational Highlights

• On 31 March 2017, the Company entered into a sale and purchase agreement with SEA pursuant to which the Company conditionally agreed to sell the entire issued share capital of Benefit Strong Group Limited, which owns Crowne Plaza Hong Kong Causeway Bay in Hong Kong and a commercial property at 20 Moorgate in UK, at an aggregate consideration of HK$8,913.4 million (£913.6 million Note 2). Completion of the disposal took place on 15 May 2017.

• The sale of Benefit Strong Group Limited realised a gain on disposal of HK$2,549.9 million (£251.9 million). The consideration of HK$8,913.4 million (£913.6 million Note2) was settled by offsetting the special dividend of HK$10.35 (£1.06 Note2) per share that SEA was entitled to receive.

• Prior to the completion of disposal of Benefit Strong Group Limited in May 2017, stable gross rental income was generated from an investment property in UK and the hotel operation results of Crowne Plaza Hong Kong Causeway Bay were in general in line with the weaker hotel business environment in 2017.

• The rental income from investment properties situated in the PRC continued to provide stable returns to the Company.

Notes:

1. The unaudited pro forma financial information was disclosed by the Company in the Circular dated 31 March 2017.

2. Amounts in Pounds Sterling use the exchange rates which were previously disclosed by the Company in the relevant announcements.

3. Other figures in Pounds Sterling are translated from Hong Kong dollars based upon the exchange rates prevailing on the latest practicable business day of the respective accounting periods. The relevant exchange rates adopted are stated as follows:

   For 30 June 2017: £1 = HK$10.1244

   For 31 December 2016: £1 = HK$9.5710 For 30 June 2016: £1 = HK$10.4562

4. For the Company's shareholders' information, the exchange rate on 29 August 2017 was £1 = HK$10.1375.

Miscellaneous

The results included in this announcement are extracted from the unaudited condensed consolidated financial statements of the Company for the period ended 30 June 2017, which have been approved by the Board of Directors on 30 August 2017.

The 2017 Interim Report is expected to be posted to the Company's shareholders and holders of depositary interests in late September 2017.

This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please contact:

Lincoln Lu TEL: [phone]

Chief Executive Officer and Executive Director

Asian Growth Properties Limited

Richard Gray/Andrew Potts/Atholl Tweedie TEL: [phone]

Panmure Gordon (UK) Limited

(Nominated Advisor)

Attached:-

1. Chairman's Review;

2. Executive Directors' Review;

3. Condensed Consolidated Statement of Profit or Loss;

4. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income;

5. Condensed Consolidated Statement of Financial Position;

6. Condensed Consolidated Statement of Changes in Equity;

7. Condensed Consolidated Statement of Cash Flows; and

8. Notes to the Condensed Consolidated Financial Statements.

This announcement can also be viewed on the Company's website at: http://www.asiangrowth.com/html/eng/news.asp

CHAIRMAN'S REVIEW

I am pleased to present the unaudited condensed consolidated financial results of Asian Growth Properties Limited ("AGP" or the "Company", together with its subsidiaries, the "Group") for the first six months of 2017 to the shareholders of the Company.

Results

AGP reported a profit attributable to the Company's shareholders of HK$2,599.4 million (£256.7 million) for the period ended 30 June 2017 (2016: HK$561.3 million (£53.7 million)). The reported profit included a revaluation surplus on investment properties net of deferred taxation of HK$8.8 million (£0.9 million) (2016: revaluation deficit of HK$12.6 million (£1.2 million)). By excluding the net effect of such surplus, the Group's net profit attributable to the Company's shareholders was HK$2,590.6 million (£255.9 million) (2016: HK$573.9 million (£54.9 million) excluding revaluation deficit net of deferred tax), including a realised gain of HK$2,549.9 million (£251.9 million) on the sale of the entire issued share capital of Benefit Strong Group Limited which holds the non-PRC assets pursuant to the sale and purchase agreement dated 31 March 2017 made between the Company and SEA.

As at 30 June 2017, the Group's equity attributable to the Company's shareholders amounted to HK$4,295.6 million (£424.3 million) (31 December 2016 pro forma (unaudited) Note 1: HK$4,263.5 million (£445.5 million)). The net asset value per share attributable to the Company's shareholders as at 30 June 2017 was HK$4.9 (48.4 pence) as compared with pro forma (unaudited) Note 1 HK$4.8 (50.2 pence) as at 31 December 2016.

Unless stated otherwise, figures in Pounds Sterling are translated from Hong Kong dollars based upon the exchange rates prevailing on the latest practicable business day of the respective accounting periods.

Operations

During the period ended 30 June 2017, the Group has continued to focus on property development and property investment projects. The rental income from investment properties situated in the PRC continued to provide stable returns to the AGP Group.

The Company completed the sale of the entire issued share capital of Benefit Strong Group Limited, which owns the Crowne Plaza Hong Kong Causeway Bay in Hong Kong and a commercial property at 20 Moorgate in UK, at an aggregate consideration of HK$8,913.4 million (£913.6 million Note2). Completion of the disposal took place on 15 May 2017 and realised a gain on disposal of HK$2,549.9 million (£251.9 million). The consideration in relation to the sale was satisfied by AGP offsetting an amount equal to the consideration against the proportion of the Company's special dividend of HK$10.35 (£1.06 Note2) per share that SEA was entitled to receive.

The Group will continue to monitor the property markets of the PRC and other markets closely, in order to identify potential acquisition targets at opportune times.

For details of the Group's operations, please refer to the Executive Directors' Review.