INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1998

HIGHLIGHTS

  • Profit attributable to shareholders was HK$182.6 million, up 25.4%.
  • Earnings per share were HK$0.70, up 25.4%.
  • Interim dividend per share was HK$0.40, up 166.7%.
  • The Construction Division achieved strong profit growth with improved profit margin from contracts and effective cost control. Turnover decreased as a number of new construction projects were at initial stages of works which normally would not generate a high volume of works.
  • The Construction Division was, in July 1998, awarded the contract for the development of a home ownership project under the Private Sector Participation Scheme in Tseung Kwan O.
  • The gross and outstanding values of construction contracts on hand at 30 September 1998 maintained at high levels of approximately HK$12.0 billion and HK$8.6 billion respectively.
  • Demand for concrete, aggregates and cement of the Construction Materials Division remained steady.
  • Continued profit growth is anticipated for the second half of the year.

RESULTS

The Directors of Shui On Construction and Materials Limited ("the Company") are pleased to announce the unaudited consolidated results of the Company and its subsidiaries ("the Group") for the six months ended 30 September 1998.


Notes:

1. Taxation


Hong Kong profits tax has been provided at the rate of 16% (1997: 16.5%) on the estimated assessable profits for the period.

2. Earnings per share

(a) Basic

The calculation of basic earnings per share is based on net profit for the period attributable to shareholders of HK$182,629,328 (1997: HK$145,580,536) and on 260,000,000 shares (1997: 260,000,000 shares) in issue during the period.

(b) Diluted

The calculation of diluted earnings per share is based on net profit for the period attributable to shareholders of HK$182,629,328 (1997: HK$145,580,536) and on 260,239,864 shares (1997: 260,064,739 shares), being the weighted average number of shares outstanding during the period, adjusted for the effects of all dilutive potential shares.

INTERIM DIVIDEND

The Directors have declared an interim dividend of HK$0.40 (1997: HK$0.15) per share to shareholders whose names appear on the Company's register of members on Monday, 7 December 1998. The interim dividend will be paid on Friday, 11 December 1998.

CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Wednesday, 2 December 1998 to Monday, 7 December 1998, both days inclusive, during which period no transfer of shares will be effected.

In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Standard Registrars Limited, 5th Wing On Centre, 111 Connaught Road Central, Hong Kong not later than 4:00 p.m. on Tuesday, 1 December 1998.

YEAR 2000 COMPLIANCE

Following a detailed risk assessment of the Year 2000 issue, a special task force, led by an executive director of the Company and supported by in-house IT personnel, was set up to undertake the compliance work and a comprehensive action plan and a timetable have been put in place.

The required systems upgrade and modification are progressing satisfactorily on schedule. Suppliers and service providers are being asked to confirm if their products and services are Year 2000 compliant.

The Group targets to achieve full compliance by the second quarter of 1999. The Group anticipates that the Year 2000 issue will not cause any significant operational problems.

A more detailed disclosure of the compliance work will be included in the interim report for 1998/99.

PURCHASE, SALE OR REDEMPTION OF SHARES

Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company's shares during the six months ended 30 September 1998.

By Order of the Board
Lo Hong Sui, Vincent
Chairman

Hong Kong, 10 November 1998