Results Highlights:

• The Group recorded revenue of HK$491.3 million
• Profit attributable to equity holders of the Company recorded a substantial increase of 16 times to HK$1.45 billion
• The disposal of development project in Dongguan brought a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment.
• The board proposed a final dividend of 2.0 HK cents per share and a special dividend of 2.0 HK cents per share. Total dividend per share increased by about 83% to 5.5 HK cents. The dividend yield was approximately 8.5%.

(Hong Kong, 27 June 2017) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced its annual results for the year ended 31 March 2017 (“the Period under Review”). During the Period under Review, the Group recorded revenue of approximately HK$491.3 million (2016: HK$470.0 million), representing a slight increase of 4.5% compared with the corresponding period. Such increase was mainly attributable to the net gain on the disposal of a property development project at Dongguan, which brought a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment. Profit attributable to equity holders of the Company also escalated 16 times and reached HK$1.45 billion (2016: HK$85.0 million). Basic earnings per share amounted to HK61.57 cents. The board proposed a final dividend of 2.0 HK cents per share and a special dividend of 2.0 HK cents per share. Total dividend per share increased by about 83% to 5.5 HK cents. The dividend yield was approximately 8.5%.

Strategic adjustment of business directions actualize investment returns

During the Period under Review, Chuang’s China captured the rising market trend and disposed of several investment projects to unleash their values in return of cash. In mid-2016, the Group disposed of its development project in Guangdong at approximately RMB1.3 billion (equivalent to approximately HK$1.5 billion), and earned a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment. The disposal demonstrated that substantial value is embedded in the Group’s property development assets as a result of their low book cost. Then in January 2017, the Group disposed of the investment in 50.0 million shares in Shenzhen Harmony Investment Funds Company Limited (“深圳市同心投資基金股份公司”), at a cash consideration of RMB64.5 million (equivalent to approximately HK$74.2 million). A gain of HK$16.7 million was realized from the disposal that represents a 30% return on this investment.

Eyes further expansion of investment portfolio to property market in London  

In late 2016, the Group acquired an office property in the prime location of City of London, United Kingdom, at a net consideration of approximately GBP79.0 million (equivalent to approximately HK$764.0 million), which arose a negative goodwill of HK$38.9 million. London, being one of the world’s leading financial centers, is well sought-after by global investors for its market liquidity and transparency. The acquisition of this prime office property provides the Group with a steady stream of rental income as well as a corresponding increase in its capital value over time. This move also marks an important milestone in the Group’s expansion of the real estate investment business.

Extends to China’s cemetery business to meet the growing market demand

In March 2017, Chuang’s China further achieved another strategic expansion and completed the acquisition of an effective 85.5% interests in Fortune Wealth at RMB398.0 million (equivalent to approximately HK$449.0 million). Situated at Sihui, Guangdong Province, Fortune Wealth Memorial Park is currently the largest planned cemetery project in China with comprehensive services, facilities and city connections. China’s population is aging rapidly, yet, owing to the limited supply of quality private cemetery services in Guangdong, cemetery operation has emerged as a booming business in the mainland. Furthermore, as the Private Columbaria Bill comes into effect, there will be increasing demand for authorized private columbarium niches in Hong Kong. The Group believes that its cemetery business can fill the existing market gap in Mainland China and Hong Kong and accommodate the growing demand for niches and cemetery among the two areas.

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “Chuang’s China achieved a momentous year of financial growth and completed a series of strategical moves that not only realign the Group’s business directions, but also substantially enhanced our financial capabilities. Looking forward, the Group will continue to seek the suitable investment opportunities to further promote the sustainable development of business and generate returns for the shareholders. “