[For immediate release]

21 March 2018, Hong Kong

Sun Hung Kai & Co 2017 EPS increased 67%
Strong growth across all asset classes

Sun Hung Kai & Co. Limited (SEHK: 86) (the "Company", together with its subsidiaries, the "Group") delivered a solid set of results for the year ended 31 December 2017. Profit attributable to owners of the Company for year was HK$1,824.3 million (2016: HK$1,109.6 million). The book value per share increased by 9.5% to HK$9.02.

The substantial growth was driven by the turnaround of the Group's Consumer Finance business, as well as increased returns from the Principal Investments business.

Group Executive Chairman Mr Lee Seng Huang said, "We are pleased with the 2017 results. Over two years ago, the Group embarked on a new strategy that is starting to show encouraging returns. Our Principal Investments platform has started to scale as the investment portfolio matures, and we continue to see a healthy pipeline of transactions across our debt and equity platforms."

2017 Annual Results Summary
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Business Segment Highlights:

Consumer Finance

- Operated under United Asia Finance Limited ("UAF").

- Contribution to profit before tax doubled to HK$1,445 million, driven by the continued improvement in the Mainland China business and record profits in Hong Kong.

- Net consumer finance loans increased by 20% to HK$9,164 million and total bad and doubtful debts expenses declined 68%.

- The Mainland China business restructuring was successfully completed. UAF operates on a leaner network of 85 branches, with improved efficiency. The loan portfolio resumed its growth momentum and increased by 50% during 2017, with a focus on smaller sized loans to salaried workers and SME's.

- The China UnionPay partnership has been encouraging, with the loan origination volume surpassing RMB500 million since its launch in May 2017. Last month, a similar partnership was formed with All In Pay and the Group shall continue to explore other online partnership opportunities.

- UAF also launched our own branded platform, Yirongzhan (壹融站) and mobile app, UA Rongyidai (UA融易貸). UAF will continue its online-to-offline approach which balances the power of online reach, as well as providing the personal "last mile" service through its branch network

Principal Investments

- Segment assets amounted to HK$15,937 million as at 31 December 2017, and contributed HK$1,061 million to pre-tax profit (2016: HK$472.6 million)

- The segment assets are invested across public equities (17%), private equities (27%), public credit (22%), private credit (20%) and real estate (13%). All the strategies contributed positively to the bottom line.

- Private Equities delivered the highest return of 20%. Our financial services sector expertise has landed us attractive direct and co-investments during the year, which in turn created further partnership opportunities for our existing businesses. We are pleased with the long-term potential of the portfolio that we have built and some current investments should have revaluation potential in the medium term.

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Mortgage Loans

- In its second full year of operation, Sun Hung Kai Credit's loan portfolio surpassed the HK$2 billion mark in December 2017, and was the top ranked non-bank mortgage provider in terms of the number of new loans originated for first mortgages in Hong Kong.

- The segment contributed HK$35 million to pre-tax profit, compared to HK$1.8 million in 2016.

- As the business scales up, management will also put a high priority on efficiency gains to improve returns, while adopting a prudent approach to credit quality.

Financial Services

- Pre-tax contribution from this segment was significant at HK$139.9 million (2016: HK$182.3 million). The decline was mainly due to the lower net accounting gain from our 30% interest in Sun Hung Kai Financial business, which was rebranded Everbright Sun Hung Kai ("EBSHK") in December 2017.

- EBSHK's client assets under management, custody and/or advice surpassed HK$100 billion at the end of 2017. Leveraging on its local heritage as part of the Group and the Mainland network of its new parent, it is expected that synergies should accelerate going forward.

- LSS Financial Leasing (Shanghai) Limited (40% shareholding) successfully expanded its business lines from corporate to consumer auto leasing and several alliances to expand its business reach, connecting financing to new transport models.

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About Sun Hung Kai & Co. Limited
Sun Hung Kai & Co. Limited (the "Group") is an investment firm headquartered in Hong Kong. Since its establishment in 1969, the Group has owned and operated market-leading businesses in financial services. Building on its rich heritage, experience and network, the Group aims to generate long-term capital growth for its shareholders through a diverse, yet complementary, portfolio of businesses and investments across multiple asset classes. It is the major shareholder of leading consumer finance firm United Asia Finance, and a substantial shareholder of Everbright Sun Hung Kai. The Group currently holds about HK$37 billion* in total assets.
*As at 31 December 2017

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

For enquiries, please contact:
Mokka Mok +852 2533 9971 mmok2@webershandwick.com