Hang Lung : 2016 Interim Results

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HANG LUNG PROPERTIES LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00101)

2016 INTERIM RESULTS CONTENTS Page Financial Highlights 1 Review of Operations 2 Consolidated Financial Statements 15 Notes to the Consolidated Financial Statements 18 Other Information 28 Glossary 30 FINANCIAL HIGHLIGHTS

RESULTS
For the Six Months Ended June 30
2016 2015	Change
Revenue	6,311 4,607	37%
Property Leasing	3,907 3,862	1%
Property Sales	2,404 745	223%
Operating Profit	4,320 3,523	23%
Property Leasing	2,931 2,961	-1%
Property Sales	1,389 562	147%
Net Profit Attributable to Shareholders	2,935 2,841	3%
Earnings Per Share (HK$)	$0.65 $0.63	3%
Interim Dividend Per Share (HK$)	$0.17 $0.17	-

in HK$ Million (unless otherwise stated)

UNDERLYING RESULTS

For the Six Months Ended June 30

2016	2015	Change
Underlying Net Profit Attributable to Shareholders	3,167	2,448	29%
Underlying Earnings Per Share (HK$)	$0.70	$0.55	27%

FINANCIAL POSITION

Shareholders' Equity	At June 30	At December 31
	2016	2015 Change
	127,817	128,989 -1%
Net Assets	133,677	134,892 -1%
Net Debt	2,834	1,482 91%
Financial Ratio
Net Debt to Equity Ratio	2.1%	1.1% 1.0pt
Debt to Equity Ratio	23.6%	24.3% -0.7pt
Shareholders' Equity Per Share (HK$)	$28.4	$28.7 -1%
Net Assets Per Share (HK$)	$29.7	$30.0 -1%

REVIEW OF OPERATIONS CONSOLIDATED RESULTS

For the six months ended June 30, 2016, total revenue of Hang Lung Properties Limited and its subsidiaries (collectively known as "Hang Lung Properties") increased 37% to HK$6,311 million driven by higher property sales. Property sales revenue rose 223% to HK$2,404 million as more residential units were sold during the first half of 2016. Revenue of property leasing posted a moderate growth to HK$3,907 million, or up 5% if excluding the 6% period-on-period Renminbi ("RMB") depreciation against the Hong Kong Dollar ("HKD"). Correspondingly, total operating profit advanced 23% to HK$4,320 million.

Underlying net profit attributable to shareholders advanced 29% to HK$3,167 million. After including a revaluation loss on investment properties due to a lower valuation of the mainland China leasing portfolio, net profit attributable to shareholders increased 3% to HK$2,935 million. Earnings per share increased similarly to HK$0.65.

Revenue and Operating Profit for the Six Months Ended June 30

Revenue Operating Profit 2016 2015 Change 2016 2015 Change

HK$ Million 3,907	HK$ Million 3,862	1%	HK$ Million 2,931	HK$ Million 2,961	-1%
2,038	2,118	-4%	1,327	1,464	-9%
1,869	1,744	7%	1,604	1,497	7%

Property Sales	2,404 745 223%	1,389 562 147%
Total	6,311 4,607 37%	4,320 3,523 23%

Property Leasing Mainland China Hong Kong

DIVIDEND

The Board of Directors has declared an interim dividend of HK17 cents per share for 2016 (2015: HK17 cents) to be paid by cash on September 29, 2016, to shareholders whose names appeared on the register of members on September 15, 2016.