Shenzhen Investment Limited

08/10/2018 | Press release | Distributed by Public on 08/10/2018 04:20

Announcements and Notices - Profit Warning

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00604)

PROFIT WARNING

This announcement is made by Shenzhen Investment Limited (the "Company", together with its subsidiaries, collectively the "Group") pursuant to Rule 13.09(2)(a) of the Rules

Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of Directors (the "Board") of the Company wishes to inform the shareholders of the Company and potential investors that, based on a preliminary review by the management of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018, the Group is expected to record a significant decline in the consolidated net profit for the six months ended 30 June 2018 by about 90% over that for the same period last year.

The business performance of the Group for the six months ended 30 June 2018 remained stable. The expected decline in the consolidated net profit for the six months ended 30 June 2018 was primarily attributable to the following factors:

(i)a non-recurring gain on disposal of subsidiaries recorded in the corresponding period last year whilst no such non-recurring gain was recorded in the six months ended 30 June 2018; and

(ii) the non-cash revaluation loss of the Group's financial assets at the fair value on 30 June 2018.

As of the date of this announcement, the main financial asset assessment parameters causing such losses have basically recovered, but the relevant parameters and their impact on the financial statements are still changing. If excluding the abovementioned non-cash revaluation loss of the Group's financial assets at the fair value on 30 June 2018, the Group is expected to record a decline in the consolidated net profit for the six months ended 30 June 2018 by about 50% over that for the same period last year.

The information contained in this announcement is only based on a preliminary review by the management of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 which have not been audited or reviewed by the independent auditor or the audit committee of the Company. Shareholders of the Company and potential investors are advised to read carefully the Company's announcement of the interim results for the six months ended 30 June 2018 which is expected to be published in late August 2018.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

Shenzhen Investment Limited

LU Hua

Chairman

Hong Kong, 10 August 2018

As at the date of this announcement, the Board comprises 9 directors, of which Dr. LU Hua, Mr. HUANG Wei, Mr. MOU Yong and Mr. LIU Chong are the executive directors of the Company, Dr. WU Jiesi and Mr. LIU Shichao are the non-executive directors of the Company and Mr. WU Wai Chung, Michael, Mr. LI Wai Keung and Dr. WONG Yau Kar, David are the independent non-executive directors of the Company.