[For immediate release]

Sun Hung Kai & Co Announced 2016 Annual Results
Profit from Continuing Operations Increased 66%

Hong Kong, 22 March 2017 - Sun Hung Kai & Co. Limited (SEHK: 86) (the "Company", together with its subsidiaries, the "Group") announced that its profit attributable to owners of the Company for the year ended 2016 amounted to HK$1,109.6 million. Compared with HK$667.7 million achieved in 2015 from continuing operations, this represents a 66% increase year-on-year. The total 2015 profit of HK$3,896.5 million included a one-off gain from the sale of a 70% equity interest in Sun Hung Kai Financial Group Limited as well as its 100% profit contribution up to the sale date. Profit before tax was HK$1,501.6 million (2015: HK$973.2 million).

Basic earnings per share for 2016 was HK50.3 cents (2015: HK173.8 cents). The Board has declared a second interim dividend of HK14 cents per share. Including the first interim dividend, the total dividend per share for 2016 was HK26 cents (2015: HK26 cents). During the year, the Company has also repurchased and subsequently cancelled 36 million shares for a total consideration of HK$168.5 million as part of the ongoing HK$1 billion share buy-back program. The book value per share gained 2% to HK$8.24.

Group Executive Chairman Mr LEE Seng Huang said, "I am pleased that during this period, not only did we achieve solid financials, but our businesses are also well positioned for the future."

In the Consumer Finance business operated under United Asia Finance Limited ("UAF"), the Group made an important strategic decision in mid-2015 to de-risk the loan portfolio by shifting the focus from small businesses to individual consumers and reducing the average loan size in the Mainland. As a result of this change, the credit quality and profitability of this business improved throughout the year despite the still challenging economic backdrop. This focus on a more diversified and resilient segment will allow UAF to grow in a more sustainable manner in the longer term. UAF's market-leading Hong Kong business remained steady during the year. The segment's pre-tax contribution to the Group increased 19% year-on-year to HK$726.6 million. Momentum was strong in the second half of 2016, with pre-tax contribution nearly tripling from the first half.

During the year, we have continued to increase our investment in various loan businesses. The Mortgage Loan business operated under Sun Hung Kai Credit provides tailor made funding solutions to home owners and investors in Hong Kong. It already ranks amongst the top three non-bank institutions for loan origination in this market segment.

LSS Financial Leasing (Shanghai), the Group's 40% owned associate, established a strong foothold in the Mainland car leasing market and started a number of strategic partnerships.

Both of these new businesses have become profitable in their first full year of operation and have aggressive expansion plans in place for the coming year.

Since 2015, the Group started to build out its Principal Investments platform. Our investment model combines our financial strength with our network and experience from investing in market-leading financial services businesses to achieve long-term capital growth. This segment delivered a solid performance during 2016, achieving a 10% return on average assets before costs despite continued market volatility. The focus on investments that leverage on our expertise and networks has paid off, particularly with our private equity investments. In order to allocate capital internally in the most efficient manner across the various asset classes in which we invest, the Structured Finance business is now grouped under the Principal Investments segment as another asset class that sits alongside our fixed income and other debt investments. After internal cost and interest allocation, the Principal Investments segment contributed HK$472.6 million (2015: HK$460.7 million) to pre-tax profit.

Critical to this strategy, the Group continued to maintain a prudent and flexible balance sheet, with a net debt-to-equity ratio of 20.3%. During the year, we have also successfully issued new 5-year 4.75% 2021 US dollar notes and completed an exchange offer for the 2017 6.375% notes to extend the debt maturity profile and to lower the cost of capital.

"Our strategy is clear, to achieve long term value accretion for our shareholders through financing and direct investments. I am pleased to report that after more than a year of implementation post the partial sell down of our wealth management unit Sun Hung Kai Financial, we have established a solid platform with our core lending activities sitting alongside our Principal Investments platform." Mr Lee concluded.

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About Sun Hung Kai & Co. Limited

Sun Hung Kai & Co. Limited (the "Group") is an investment and finance firm with a focus on Greater China.

Since its foundation in 1969, the Group has owned and operated market-leading businesses in financial services, striving to generate long-term capital growth for its shareholders. Leveraging on its heritage and operational experience, the Group invests across a diverse yet complementary portfolio of investment and finance businesses. Through on-line platforms as well as an extensive branch and office network across Hong Kong and Mainland China, the finance business provides funding solutions to individuals, small businesses and corporates.

The Group currently has about HK$18 billion* in shareholders' equity. It is the major shareholder of leading consumer finance firm United Asia Finance Limited and a substantial shareholder of Sun Hung Kai Financial Group Limited.
^*As of 31 December 2016.

For more information about Sun Hung Kai & Co. Limited (SEHK: 86), please visit its website at www.shkco.com.

For enquiries, please contact:
Nancy Chen (852) 3748 2823 nancy.chen@shkco.com