The Directors of Silver Grant International Industries Limited, a company listed on the Stock Exchange of Hong Kong, are pleased to announce operating results for the six months ended June 30, 1997. The Group's profit after tax for the first half of 1997 was approximately HK$138 million, representing a multiple of 18 times the profit earned in the first half of 1996.

This remarkable increase in profits can be attributed to three factors. Firstly, the proceeds from the disposal of 80 million shares in Qingling in 1996 and the placement of 130.72 million shares in the Company in the first half of 1997, the Group's debt was paid off and interest expenses were transformed into interest income from the Group's cash balance. Secondly, the Group made an exceptional gain of HK$40 million on the disposal of a further 11 million shares in Qingling. Lastly, the Group's share of profits from associated companies grew to HK$103 million for the first six months of 1997 from HK$0.9 million in the same period year.

"The first half of 1997 was an active one for Silver Grant," said Mr. Wu Jian Chang, Chairman, "The Group entered into joint venture agreements with several companies in China for projects that promise to expand our business and future profit potential significantly. We are pleased with our results and the new businesses we started during the period."

During the six months ended 30^th June 1997, the Group continued to transform itself into a conglomerate with a diversified portfolio of businesses including infrastructure projects, department stores, copper production, light truck manufacturing, automotive components manufacturing and property. The Group has made further investments in infrastructure projects in the PRC through China Infrastructure Investments Limited which has entered into agreements to invest in a number of infrastructure projects.

The Group increased its investment in Beijing Wang Fu Jing Retail Management Company to US$14.9 million in the first half of 1997. The investment will increase further in the second half of 1997 so as to meet the funding requirements of additional department stores expected to be in operation by the end of 1997 and 1998, as part of the Group's plan for a nationwide department store concept in the PRC.

Other than exploring the possibility of investing further in the nonferrous metals industry, the Group is also looking for other new business opportunities, especially in the PRC. To meet the funding requirements of these investments, the Group has proposed the issue of guaranteed convertible bonds, due 2004, for a total amount of up to US$115 million.

Released by:	Silver Grant International Industries Limited
Through:	Keith Statham Associates PR
Contact:	Philip Hui
	Tel:   2810 8108	Fax:   2868 4116

 

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