1998 - 99 Interim Report
Results Announcement

The unaudited results of the Group for the half year ended 31st December, 1998 were as follows:-

1. The Group's share of results of jointly controlled entities are accounted for in accordance with the Statement of Standard Accounting Practice No. 21 "Accounting for Interests in Joint Ventures" issued by the Hong Kong Society of Accountants which becomes effective from lst January, 1998. Comparative figures for the same period last year have been reclassified to conform with the current period's presentation.
   


2. Hong Kong profits tax is provided at the rate of 16% (1997: 16%) based on the estimated assessable profits for the period.

3. The calculation of earnings per share is based on the Group's profit after taxation and minority interests for the six-month period ended 31st December, 1998 of HK$4,723 million (1997: HK$5,936 million) and on weighted average of 2,392.27 million shares (1997: 2,389.5 million shares) in issue during the period.

Additional Financial Information (Unaudited):

Note : Investment properties included in non-current assets are stated at market values as at 30th June, 1998 and 30th June, 1997 respectively. Revaluation of investment property is only carried out annually at the financial year end.

Purchase, Sale or Redemption of Shares

The Company has not redeemed any of its ordinary shares during the half year ended 31st December, 1998. Neither the Company nor any of its subsidiaries has purchased or sold any of the Company's ordinary shares during this period.

Interim Dividend

The Directors of the Company announced an interim dividend of HK$0.50 per HK$0.50 ordinary share payable in cash on 15^th April, 1999 to shareholders on the Register of Members as at 15^th April, 1999.

The Register of Members will be closed from 8^th April, 1999 to 15^th April, 1999, both days inclusive. In order to qualify for the above dividend, all transfer forms accompanied by the relevant share certificates must be lodged with the Company's Registrars, Central Registration Hong Kong Limited, Hopewell Centre, 17th floor, 183 Queen's Road East, Hong Kong for registration not later than 4:00 p.m. on 7^th April, 1999.

Year 2000 compliance

The Group continues to move along with priority the implementation of the "Year 2000 Compliance Programme" of which the approach, structure, risk assessment and compliance definition have been well covered in the previous Annual Report. Milestone accomplishments are basically on track with approximately 95% of critical systems completed at the end of 1998. The Group's target date for full compliance remains mid-1999 and spending remains within the total HK$10 million budgeted.

Continuous effort is placed on the completion of outstanding conversions and on the testing of those completed. Contingency plans, which assume the occurrence of unforeseeable failures beyond the Group's control, are being refined and put in place. These plans include listing the critical system functions, highlighting their outputs and information generation, assessing the impact of failure on the Group's business, proposing action plan and evaluating required resources. The objectives are to keep the failed functions operational and to carry out remedy.

Active follow-ups with various business counterparts for proper compliance response are also being pursued, ensuring that the Group is not unnecessarily exposed to risk due to the lack of readiness on the part of third parties. Nevertheless, there can be no assurance that equipment or services used by third parties on which the Group does or will rely, will be Year 2000 compliant as contemplated. The failure of these equipment and services may affect the Group's business operations.

By Order of the Board

ERNEST H.K. LAI

Secretary

Hong Kong, 18^th March, 1999