Sun Hung Kai Properties : Sunevision Holdings Ltd. 2017 / 2018 First Quarterly Results Announcement

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement, for which the directors (the "Directors") of SUNeVision Holdings Ltd. (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

SUNEVISION HOLDINGS LTD.

新意網集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8008) FIRST QUARTERLY RESULTS ANNOUNCEMENT FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2017 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. HIGHLIGHTS

• SUNeVision continued to grow as it entered the 2017/18 financial year. It generated HK$154.6 million in profit attributable to owners of the Company for the quarter ended 30 September 2017, an increase of 16% over the same quarter last year.

• Revenue for the quarter was HK$312.5 million, a 14% growth over the same quarter last year. This was largely due to increased revenues from the Group's data centre operations.

• Gross profit for the quarter increased to HK$186.9 million, with gross margin for the quarter at 60%. Cost of sales for the quarter rose by HK$18.6 million to HK$125.6 million. This was mainly due to higher operating costs and depreciation charge for new data centre.

• Operating expenditure for the quarter increased to HK$20.1 million. This was mainly due to expanded sales and marketing resources, including various marketing activities for new data centre capacities as well as the legal and professional fees incurred in relation to the proposed transfer of listing from GEM to the Main Board announced by the Company on 19 September 2017.

• Other gain for the quarter was HK$9.1 million, being the increase in fair value of a securities investment.

• The Group's cash and interest-bearing securities on hand as of 30 September 2017 amounted to approximately HK$840.9 million, while it had long-term bank borrowing of HK$980.3 million. The gearing as of 30 September 2017 calculated as net borrowing to shareholders' funds remained low at 8%.

Jul to	Jul to
Sep 2017	Sep 2016
HK$'M	HK$'M
Revenue	312.5	275.0
Gross profit	186.9	168.0
Other income	7.0	6.1
Operating expenditure *	(20.1)	(15.5)
Profit from operations	173.8	158.6
Other gain	9.1	-
Profit before taxation	182.9	158.6
Income tax expense	(28.3)	(25.7)
Profit for the period attributable to owners of the Company	154.6	132.9

* Selling, general and administrative expenses

CHAIRMAN'S STATEMENT

SUNeVision maintained its growth momentum as it started the 2017/18 financial year, reporting HK$154.6 million in profit attributable to owners of the Company for the quarter ended 30 September 2017, an increase of 16% over the same quarter last year.

Revenue for the quarter rose 14% to HK$312.5 million, largely attributable to increased revenues from the Group's data centre operations. This increase came from revenues from our newly opened MEGA Plus, the Group's new data centre in Tseung Kwan O, as well as new customers and rental reversions of existing customers at other data centers. Cost of sales increased 17% to HK$125.6 million during the quarter, mainly because of higher operating costs and depreciation charge for the new data centre. Gross profit amount rose 11% to HK$186.9 million with gross margin for the quarter at 60%.

Operating expenditure for the quarter increased from HK$15.5 million to HK$20.1 million. This was mainly due to expanded sales and marketing resources, including various marketing activities for new data centre capacities as well as the legal and professional fees incurred in relation to the proposed transfer of listing from GEM to the Main Board announced by the Company on 19 September 2017.

Other gain for the quarter was HK$9.1 million, being the increase in fair value of a securities investment.

The Group's financial position remained healthy with approximately HK$840.9 million in cash and interest-bearing securities on hand as of 30 September 2017, despite a long-term bank borrowing of HK$980.3 million. The Group had approximately HK$288.9 million in net borrowing due to the planned capital expenditure for new data centre capacities. However, gearing as of 30 September 2017, calculated as net borrowing to shareholders' funds, remained low at 8%. During the quarter, the Group took advantage of favourable interest rates to obtain a new long-term HK$2 billion loan facility to refinance its preceding bank borrowing and to fund various existing capital investment projects. Payment of a HK$553.9 million final dividend and distribution for the 2016/17 financial year, which was approved by the shareholders at the Annual General Meeting on 31 October 2017, will be made on 20 November 2017.

Looking ahead, the Group will continue to enhance its assets and service quality. The Group is very proud of MEGA Plus as a state-of-the-art facility to cater for the most demanding data needs. It is the first purpose-built facility on land designated for data centre use by the Hong Kong government and was acquired through open tender at market rate. This distinguishes the site from neighbouring data centres in the Tseung Kwan O Industrial Estate, and is not subject to any restrictions on land use such as subletting. The transformation of the entire MEGA Two facility is also recently complete. MEGA Two becomes a dedicated high-tier data centre offering world-class security, network connectivity and facility management for customers. In addition, the optimization of MEGA-i to upgrade its power capacity to meet increasing demand from fast-growing customers is in full force. All these investments in new capacity and enhancements will provide the Group with a good foundation to satisfy the increasing demand for top-tier, premium service data centres. SUNeVision will continue to differentiate itself with superior infrastructure and quality service.

I would like to close by thanking the Board, management and every member of our committed staff for their dedication and hard work, and our shareholders for their continued confidence and support.

Kwok Ping-luen, Raymond

Chairman

Hong Kong, 2 November 2017

CHIEF EXECUTIVE OFFICER'S REPORT OVERVIEW

SUNeVision reported its unaudited results for the first quarter of the 2017/18 financial year, with HK$154.6 million in profit attributable to owners of the Company.

BUSINESS REVIEW

iAdvantage

iAdvantage secured new contracts from a leading global cloud service provider for its two data centre sites, which will be the main infrastructure for its expansion in the region. At the same time, iAdvantage continued to work on various major expansion and enhancement projects to maintain its market position as a major carrier-neutral data centre service operator in Hong Kong.

The MEGA Plus flagship facility is now in operation and one of the anchor customers has already moved in. Fitting-out works for other customers continued during the quarter. The facility is designed and built with high flexibility catering to different needs in term of resilience and power density of various high growth customer segments. It meets environmental requirements with high-efficiency power usage to achieve best-in-class energy saving. MEGA Plus is also the only data centre built on dedicated land in Tseung Kwan O without any restrictions on land use such as subletting. This distinguishes the site from the neighbouring data centres in the Tseung Kwan O Industrial Estate, which are built on subsidised land that prohibit any form of subletting.

The transformation of the entire MEGA Two facility in Sha Tin into a dedicated data centre building is recently complete, and has proven to be a strong attraction for customers with high standards for mission critical operations.

The optimization of the flagship MEGA-i facility, one of the most highly regarded data centres in the region, is in full force. It will enhance power capacity and density as well as connectivity in meeting the increasing demand from new and existing customers.

In addition to investing in the expansion of new capacity, there are continuous enhancements being made at existing data centres. The Group also invested additional sales and marketing resources to strengthen customer service quality.

Super e-Technology

Super e-Technology secured contracts for the installation of security surveillance, SMATV and IT systems totalling approximately HK$15.5 million during the quarter.

Super e-Technology maintains a positive outlook for the security surveillance and SMATV sectors in the new financial year and is constantly pursuing opportunities to expand its service offerings.

Super e-Network

Super e-Network continues to capture new business providing wireless LAN infrastructure in shopping malls and related value added services. It will continue expanding its broadband deployment and Wi-Fi services to different sectors.