[For Immediate Release]

Shenzhen Investment Announces 2015 Interim Results
Core Profit Surges 184.8%
Contracted Sales for the Full Year Completed in the First Seven Months

(27 August 2015 - Hong Kong) Shenzhen Investment Limited ("SZI" or the "Group", SEHK stock code: 604.HK) is pleased to announce its unaudited interim results for the six months ended June 2015 (the "Period" or "1H2015").

In 1H2015, driven by picking-up of housing demand and capital markets, the real estate market recovery is strong in China's major cities. Both the trading volumes and prices have increased significantly. The Group promptly grasped this market opportunity to firmly implement the strategy of "intensifying the development in Shenzhen" and achieved desired sales results, realizing accelerated development.

Highlights

- In 1H2015, the Group achieved a turnover of HK$6,279.1 million, representing a substantial increase of 47.5% over the same period of last year; profit attributable to the owners of the Company amounted to HK$984.7 million, representing an increase of 3.1% over the same period of last year;

- During the period under review, core profit (excluding the net effect of the changes in fair value of investment properties attributable to the Group and one-time gain on disposal of a subsidiary at the same period of last year) amounted to HK$437.3 million, representing a substantial increase of 184.8% over the same period of last year;

- In 1H2015, the gross profit margin of the Group as a whole was 34.0%, representing an increase of 9.8 percentage points over the same period of last year; the gross profit margin of property development and sales was recorded 36.6%, representing an increase of 12.6 percentage points over the same period of last year;

- During the first seven months of 2015, completed RMB11.15 billion contracted sales, representing a year-on-year increase of 195%, and completed its target contracted sales for the full year ahead of schedule;

- As at 30 June 2015, cash on hand (including pledged deposits and restricted cash) of HK$15,022 million; net gearing ratio (including all the liabilities carrying interest) at 59.0%, representing a decrease of 20.9 percentage points over the same period of last year;

- The Board has declared 2015 interim dividend of HK3.00 cents per share to be paid in cash.

Outlook

Mr. Lu Hua, Chairman of Shenzhen Investment said, "In recent years, the differentiation of the real estate industry has been accelerating. Region and product differentiation is increasingly evident. The value of the assets in the core location of the first-tier cities is gradually becoming prominent. As the capital of innovation of China, Shenzhen's entrepreneurial atmosphere is strong and very attractive to the foreign population. In a few consecutive years, it maintains a net inflow of population. At present, it has a population of close to 20 million, with an average age of 30 years, and a higher real estate demand and spending ability than other cities in China. The Group is firmly optimistic about the long-term development prospect of the real estate market in Shenzhen.

"We will continue to firmly implement the Company's strategy of "intensifying the development in Shenzhen", to continue to expand the land reserves in Shenzhen by the asset injection from the parent company, Shenzhen's urban renewal project and the cooperation with state-owned companies, such as Shenzhen Metro Group.

Mr. Lu Hua said, "Both China's economy and real estate industry are coming through an important transformation. Facing the external adjustment, the Group will focus on developing its main business, meanwhile, make a good preparation for the transformation. The Group has formulated the strategy of transformation from the development model focusing on the development and sales to the development model of development, sales, holding and operation. We will maintain a steady growth in the scale of the development and sales, meanwhile, increase quality investment properties, implement "intensive and meticulous cultivation" and operate efficiently, to strive to achieve property appreciation and steady increase in the rental contribution. Having many years of practice, the Group has laid a solid foundation in the development of asset light business with operation and service as the core, and has had broad resources. In the future, the Group will integrate resources, exploit its advantages and actively build its three major operation service centers, i.e., wisdom industrial park operating platform, residential property service platform, and commercial management and operation platform. Through building a unified product and service platform and applying internet tools, the Group will focus on providing customers with value-added services, such as government affairs, business, E-business and community finance service, to improve the operation level and operation income, and promote the development of the asset-light business with operation and service as the core."

"We believe that through unremitting efforts, the Group will be able to continue to make considerable progress in scale expansion, value enhancement, transformation and upgrading, and constantly consolidate its leading position in Shenzhen's real estate market to create continuously greater value and provide better return for shareholders."

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