[For Immediate Release]

Shenzhen Investment Announces 2014 Audited Annual Results

Highlights

- In 2014, revenue up 41.4% to HK$13,827.1 million; Profit for the year attributable to owners of the parent up14.3% to HK$3,131.3 million;

- Contracted sales amounted to RMB7.4 billion in 2014, with a target contracted sales of RMB11 billion for 2015;

- At the end of August 2014, successfully had Shenzhen Nongke Holdings Company Limited under its control by acquiring from its parent company a 100% stake in Shenzhen Bio-Agriculture Company Limited, to further optimize its land reserves and enhance its product quality;

- Proposed final dividend at HK13 cents per share, with an annual payout ratio of 29.8%.

(26 March 2015 - Hong Kong) Shenzhen Investment Limited ("SZI" or the "Group", SEHK stock code: 604.HK) is pleased to announce its audited annual results for the twelve months ended 31 December 2014.

Annual results and dividend payout

In 2014, the real estate market in China was cooling as a whole. Overall, the market was weak, with real estate transactions dropping markedly and price falling in most cities. With the improvement in financing and policy in the end of the year, the market picked up to some extend but different regional markets diverged more distinctly. Despite the challenging environment, the Group firmly implemented its established strategies, expedited the sales, promoted transformation and made plans for the future, which resulted in its steady development.

During the year, the Group achieved a turnover of HK$13,827.1 million, representing an increase of 41.4% over the same period of last year. Profit for the year attributable to the shareholders was HK$3,131.3 million, representing an increase of 14.3% over the same period of last year. Basic earnings per share were HK53.62 cents, representing a decrease of 9.1% over the same period of last year. The Board proposed to distribute a final dividend of HK13 cents per share for 2014 in cash with a scrip dividend alternative.

Implement the strategy of "intensifying the development in Shenzhen" to optimize the structure of the Group's land bank and promote the sales of quality projects

During the year, the Group further implemented the strategy of "intensifying the development in Shenzhen", and had Shenzhen Nongke Holdings Company Limited ("Nongke Group") under its control by acquiring from its parent company a 100% stake in Shenzhen Bio-Agriculture Company Limited, which was another major capital injection after its acquisition of Kezhigu project from its parent company. Nongke Group owns valuable lands and property assets in Honey Lake area, a core area of Shenzhen. Nongke Group's core asset is a piece of land with planned gross floor area of 260,000 square meters in the central of Honey Lake area. This project will generate a profitable return for the Group in the future.

Deepen strategic cooperation to promote vigorous development of the Group's business

During the year, the Group continued deepening its strategic cooperation with companies including Shenzhen Metro and Shenzhen International Holdings. The cooperation was very effective, and the Group's expertise and team spirit were highly appreciated by its partners, which laid a solid foundation for expanding cooperation next.

Property development business achieved remarkable results in 2014. During the year, the Group recorded 757,306 square meters in property sales (excluding the interests attributable to the Group in its three principal associates), representing an increase of 41% over the same period of last year, and achieved a net revenue in property sales of RMB8,690.7 million (equivalent to HK$10,938.1 million) (net of business tax), representing an increase of 55.4% over the same period of last year.

The Group's property investment business continued to maintain a steady growth. During the year, the Group achieved a rental income of HK$681.2 million, representing an increase of approximately 24.3% over the same period of last year, while the gross profit margin of its property investment was 88.6%, representing an increase of 6 percentage points over the same period of last year.

Property management business and hotel operation business maintained stable. During the year, the property management business contributed an income of HK$1,211 million to the Group, representing an increase of 9.0% over the same period of last year. In 2014, Group's three hotels in operation overcame challenges from increased competition, and achieved a turnover (under other operating segment) of HK$176.9 million, representing an increase of 8.6% over the same period of last year.

Financing and Financial Position

During the year, the Group actively explored financial resources, and endeavored to reduce financing costs through the optimization of liability structure. The Group attached great importance to cash flow management to provide funding for its business development.

On 25 August 2014, the Company entered into an agreement for a syndicated loan of US$435 million and HK$2,510 million for a term of 5 years with certain banks in Hong Kong. On 4 December 2014, the Company entered into a facility agreement for an amount of HK$400 million for a term of 3 years with a bank in Hong Kong.
As at 31 December 2014, the Group's total bank loans and other borrowings amounted to
HK$29,398.8 million. The Group's cash balance was HK$ 9,657.4 million. The net gearing ratio with the liabilities including bank loans and other borrowings only was 64.7% and the net gearing ratio with the liabilities including shareholders' loan from the parent company and all other interest-bearing debts was 79.9%.

Future Prospects

Mr. Lu Hua, Chairman of Shenzhen Investment said, "As to real estate industry, the past strategy of achieve extensive economic growth with scale has failed, the regional and product differences will become increasingly apparent. The third and fourth-tier cities with limited housing demand will face low sell-through rate in the short run and weak growth in the long run, while the first-tier and key second-tier cities with great population aggregation ability will have sustainable development. As the innovation city of China, Shenzhen has been at the forefront of transformation and upgrade across the country. The Group is firmly confident in Shenzhen's real estate market."

"The Group fully understands the necessity of transformation. The Group will transform its development model from "focusing on development and sale" to "focusing on development, sale, holding, and development equally". The Group will maintain the solid growth of development and sale scale on one hand, and achieve property appreciation and steadily increase the contribution from rental income by improving the operating capacity in real estate and conducting an intensive cultivation in the high quality property on the other hand. The Group attaches great importance to the operation of investment properties. In the next three years, it is expected that the Group will add more than 600,000 square meters of commercial property, most of them will be located in the premium locations of Shenzhen."

Mr. Lu Hua further said, "In recent years, we have proposed the strategy of "intensifying the development in Shenzhen", strived to focus the core business in Shenzhen and a few other first-tier and key second-tier cities, and strengthened the effort in the sale and disposal of projects in the third and fourth-tier cities. Now the Group has quality land reserves with gross floor area of over 2 million square meters."

Looking forward to the future, Mr. Lu Hua said, "In 2015, the Group anticipates a fast-growing sales revenue and an annual sales target of RMB11 billion, in which over 60% will be from Shenzhen. During the year, we will take effective measures to further optimize its land reserves structure, and further concentrate its assets and business in first-tier and key second-tier cities including Shenzhen. During the year, we will also expand the cooperation with other companies in terms of capital and operation to achieve mutual benefit and win-win situation by continuously exploring opportunities for cooperation. Through a great range of effort on transformation and upgrade, the Group will make a leap from its current level, and continue to create value for its shareholders."

For latest news about Shenzhen Investment, please go to the official website (www.shenzheninvestment.com)

For enquiry, please contact:

Shenzhen Investment Limited Nicole Zhou zhouq@shumyip.com.hk Tel: (852) 2312 8746

Financial PR (HK) Ltd. Dawn Lee dawnlee@financialpr.hk Canace Xie canacexie@financialpr.hk Tel: (852) 2610 0846 Fax: (852)2610 0842