The Directors are pleased to announce that the Group's turnover in the consolidated accounts for 1996 amounted to HK$6,471,842,000.  Although decreased by 21% from the previous year, it represents a 50.2% increase when compared with the turnover of continuing operations.  Profit attributable to shareholders after taxation was up 4.4% to reach HK$604,294,000.  Profit attributable to shareholders after taxation excluding exceptional items was HK$520,444,000, an increase of 14.4% from HK$454,854,000 the previous year.  Earnings per share declined slightly by 3.4% from 1995 to 28.0 cents.
 

• Chairman's Statement
• Financial Highlights
• Analysis of Operations
• Dividends
• Consolidated Profit and Loss Account
• Consolidated Balance Sheet
• Consolidated Cash Flow Statement

Chairman's Statement

Despite the unbalanced global economic development, China can still strive ahead to achieve a prosperous economy and a stable society, demonstrating to the world its vigour and vast market potential. The implementation of the ninth "Five-year Plan" has created many opportunities for economic growth and investment. The integrated businesses of the Group are becoming more mature. Coupled with a strong asset base, its quality of assets has enjoyed substantial improvements. The Group benefits from the easy access to investment opportunities in Guangdong and other provinces as a result of its close relationship with Guangdong Provincial Government.

In 1997, the Group continues the development of its five core businesses in a balanced manner, particularly the infrastructure investment and the industrial manufacturing business. The infrastructure projects previously planned and under negotiations have made good progress recently. With regard to the industrial division, the Group will devote its utmost effort in and place top priority on marketing and sales, with superior quality as assurance, prestigeous brandname as appeal and services as backup. By the adoption of such policy, production will be aligned with sales and a balance of production and sales will be achieved.

Meanwhile, the Group will continue to acquire and invest in quality assets to broaden its earnings base. As such, the Directors are considering separate listing of more companies within the Group that possess great potential for further development in order to expedite its growth amid keen market competition.

We are confident that the economy of China and Hong Kong in 1997 will outperform that of 1996, and the market will be more buoyant. As the income generated by the new and existing projects increases, we are optimistic that the Group as a whole will achieve even better results in 1997.
 

The Directors are pleased to announce that the Group's turnover in the consolidated accounts for 1996 amounted to HK$6,471,842,000.  Although decreased by 21% from the previous year, it represents  a  50.2% increase when compared with the turnover of continuing operations.  Profit attributable to shareholders after taxation was up 4.4% to reach HK$604,294,000.  Profit attributable to shareholders after taxation excluding exceptional items was HK$520,444,000, an increase of 14.4% from HK$454,854,000 the previous year.  Earnings per share declined slightly by 3.4% from 1995 to 28.0 cents.
 

Turnover (HK$'m)	Consolidated Net Assets (HK$'m)
Net Profit Attributable to Shareholders (HK$'m)	Earnings Per Share (cents)

Analysis of Operation

The Group's operating profits for the year were broken down as follows: 28.1% from industrial manufacturing; 33% from infrastructure investment; 18.5% from travel services and hotel operation; 12.5% from property development and investment; 4.3% from wholesale and retaill; and the remaining 3.6% from securities and other investments made by the Group.

Sixty-nine percent of the total operating profits were derived from China, 23% from Hong Kong and 8% from investments in overseas countries.
 

Turnover (HK$'m)	Operating Profit (HK$'m) (excluding exceptional items)
Breakdown of Turnover	Breakdown of Operating Profit   (excluding exceptional items)

Dividends

An interim dividend of 3.8 cents per share was paid on 15 October 1996. The Directors recommend the payment of a final dividend of 5.2 cents per share, in respect of the year ended 31 December 1996, to shareholders on the register of members on 25 June 1997.