WLP Wing Lee Property Investments : Announcements and Notices - Profit Warning

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WING LEE PROPERTY INVESTMENTS LIMITED

永 利 地 產 發 展 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 864)

PROFIT WARNING

The Board wishes to inform the shareholders and potential investors of the Company that the Group expects to record a net loss for the year ended 31 December 2016 as compared with a net profit recorded for 2015. This is mainly attributable to the fact that there is expected to be a net decrease in fair values of the Group's investment properties for the year ended 31 December 2016 as compared with a net increase for 2015. In addition, there is an increase in share option expenses in 2016, whilst there was no such expense in 2015.

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

This announcement is made by Wing Lee Property Investments Limited (the "Company" and together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the provisions in Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) relating to disclosure of inside information.

The board of directors (the "Board") of the Company wishes to inform the shareholders and potential investors of the Company that, based on a preliminary assessment of the unaudited management accounts of the Group for the year ended 31 December 2016 and a draft valuation report for the Group's investment property portfolio as at 31 December 2016 prepared by the Group's external valuer, the Group expects to record a net loss for the year ended 31 December 2016 as compared with a net profit recorded for 2015. This is mainly attributable to the fact that there is expected to be a net decrease in fair values of the Group's investment properties for the year ended 31 December 2016 as compared with a net increase for 2015, which reflects the general market conditions of the commercial retail and residential investment property market in Hong Kong for the period under review. The net decrease in fair values of the Group's investment properties for the year ended 31 December 2016 is expected to range from HK$6 million to HK$8 million (the net increase in fair values of the Group's investment properties for the year ended 31 December 2015 was approximately HK$14 million). In

addition, there is an increase in share option expenses of approximately HK$8 million during the year ended 31 December 2016, whilst there was no such expense in 2015. Nevertheless, as the net decrease in fair values of the Group's investment properties and the granting of share options are non-cash item and the business of the Group is long- term investment and leasing of properties, the Board does not expect any material adverse effect on the operations of the Group. Without taking into account the impact of the aforesaid net decrease in fair values of the Group's investment properties and the granting of share options, the Group is expected to make a net profit for the year ended 31 December 2016, which is in line with that for 2015. However, such profit is not sufficient to make up for the difference between the net change in fair values of the Group's investment properties for the year ended 31 December 2016 and that for 2015, and the granting of share options.

The Company is in the process of finalising the results of the Group for the year ended

31 December 2016. The information contained in this announcement is only a preliminary assessment by the Board and is not based on any figures or information which have been audited or reviewed by the Company's auditor.

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

By order of the Board of

Wing Lee Property Investments Limited Ng Ho Yin Owen

Company Secretary

Hong Kong, 25 January 2017

As at the date of this announcement, the Board comprises of four executive directors, namely Ms. Chau Choi Fa, Ms. Wong Siu Wah, Ms. Wong Vivien Man-Li and Mr. Lui Siu Fung and three independent non-executive directors, namely Mr. Lam John Cheung-wah, Dr. Tse Kwok Sang and Mr. Chui Chi Yun Robert.

* for identification purposes only