(Hong Kong, 26 June 2000) Shui On Construction and Materials Limited (“SOCAM”) announced that for the year ended 31 March 2000, profit attributable to shareholders rose to HK$503 million, an increase of 23% over that of the 1998/99 financial year. This represented earnings per share of HK$1.92, an increase of 22% over the previous year. Turnover amounted to HK$5,985 million, 11% higher than the year before.

The Directors recommended the payment of a final dividend of HK$1.25 per share to shareholders. This together with the interim dividend of HK$0.55 per share gives a total of HK$1.8 per share for the 1999/2000 financial year.

“SOCAM not only continued to achieve solid profit growth in the past year but also won a number of prestigious awards from the Labour Department, Hong Kong Housing Authority, Works Bureau, Construction Industry Training Authority, Hong Kong Construction Association, Occupational Safety and Health Council, etc. These results and awards were in recognition of our dedication to making continuous improvement on our works and the good efforts of all our staff members,” said Mr Vincent Hong Sui Lo, Chairman of SOCAM.

During the year, both Shui On Building Contractors Limited and Shui On Construction Company Limited were certified with the ISO 14001 environmental management system. SOCAM has topped the award lists for both the private and public sector categories for building sites in the first Safety Award Scheme on Good Housekeeping for the Construction Industry. Shui On’s outstanding performance in people management was recognized by the Labour Department’s 1999 Good People Management Award.

The turnover of the Construction Division remained high during 1999/2000. At 31 May 2000, the Construction Division’s contracts on hand and outstanding works totalled approximately HK$13.5 billion and HK$7.4 billion, respectively.

The Construction Materials Division also recorded a steady performance during the year. The Division’s cement joint venture in Chongqing had commissioned the second rotary kiln in the fourth quarter of 1999. The addition of the second rotary kiln increased the annual production capacity of the plant to one million tonnes.

“SOCAM will continue to perform well in the coming year although profit growth is expected to slow down. The average increase of profitability for SOCAM since listing in February 1997 has been 31%. However, we expect substantial growth in both our turnover and profitability when the cement investment in the Mainland and the on-line materials trading activities become more matured in three to five years time. Barring any unforeseen circumstances, the high dividend payout policy will be maintained in the coming year,” said Mr Lo.

“Economic recovery has taken shape in Hong Kong. Major projects such as the Urban Renewal Programme, Kowloon Canton Railway’s West Rail, East Rail and Light Rail extensions, Mass Transit Railway’s Tseung Kwan O extension, Hong Kong Disneyland, Science Park and Cyberport are encouraging signs for Hong Kong’s future development. The Construction Materials Division is expected to maintain its market share in the year ahead. The Central Government’s decision to open up and expedite the development of the western region will provide an attractive opportunity and market conditions for our cement investment in the Mainland,” continued Mr Lo.

“SOCAM will continue to focus on its core businesses and at the same time capitalize on the benefits of information technology, e-commerce and Internet applications. In the fourth quarter of this year, we will be launching two e-commerce websites, AsiaMaterials.com and SOCAM.com, which will supply materials for construction companies and distributors, and to cater for the internal procurement and project management control needs respectively. With the establishment of these websites, Shui On is taking a major step forward into the Internet era,” Mr Lo concluded.

Shui On Construction and Materials Limited, a member of the Shui On Group, was listed on the Hong Kong Stock Exchange in 1997. Apart from SOCAM, the Shui On Group has a separate, non-listed property arm with investments in Hong Kong, the United States, Beijing, Guangzhou and, in particular, Shanghai where it has a land bank of 3.5 million square metres of buildable space in very centrally located sites.