Shenzhen Investment : VOLUNTARY ANNOUNCEMENT - IMPACT OF NOVEL CORONAVIRUS (COVID-19) EPIDEMIC ON BUSINESS OPERATIONS

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 00604)

VOLUNTARY ANNOUNCEMENT

IMPACT OF NOVEL CORONAVIRUS (COVID-19) EPIDEMIC

ON BUSINESS OPERATIONS

This announcement is made by Shenzhen Investment Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis for the purpose of keeping the shareholders and potential investors of the Company informed of the impact of the novel coronavirus (COVID-19) epidemic (the "Epidemic") on the Group's business operations.

The attached press release sets out the Group's sales, rental income, land reserves, project progress and working capital positions, and/or the impact of the Epidemic on the respective aspect.

The board of directors of the Company will closely monitor the development of the Epidemic and assess its impact on the business operations and financial performance of the Group. The Company will make further announcement(s) as and when necessary.

By Order of the Board

SHENZHEN INVESTMENT LIMITED

LU Hua

Chairman

Hong Kong, 18 February 2020

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.

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[For Immediate Release]

Impact of Novel Coronavirus (COVID-19) Epidemic

on SZI's Business Operations

(18 February 2020 - Hong Kong) Shenzhen Investment Limited ("SZI" or the "Group", SEHK stock code: 604.HK) wishes to address its stakeholders' major concerns over the impact of the novel coronavirus (COVID-19) epidemic (the "Epidemic") on the Group's business operations: -

Sales

1. The sales from Wuhan, Hubei Province accounted for approximately 0.3% of SZI's total contracted sales for 2019. It is expected that the saleable value from Wuhan, Hubei Province will only account for 0.4% of the total saleable value of the Group for 2020, and as such, the impact on the overall sales will be minimal.
2. As SZI's sales centers are closed for Epidemic prevention and control, the contracted sales in January and February were significantly affected. In response to the Epidemic situation, certain projects have launched an online all-round sales platform on which customers can make inquiries and subscriptions as well as sign contracts online, so as to protect public safety whilst the project sales can still be properly carried out.

Rental Income

Together with Shum Yip Group, the parent company, SZI responded to Shenzhen Municipal Government and SASAC's requests to aid enterprises in this difficult time and implemented measures to reduce rents and burdens. SZI have waived 2-months' rent for non-state-owned enterprises, scientific research institutions, medical institutions and individual industrial and commercial households, which benefited over 7,000 enterprises and individual businesses. Based on the preliminary estimation, the total rental reliefs provided by SZI amounted to approximately RMB220 million.

Land Reserves

1. As of the end of 2019, land reserves in Wuhan, Hubei Province represented approximately 5.7% of the Group's land reserves. In 2019, the Grouup did not acquire any land in Hubei Province.
2. In 2019, SZI obtained 3 new projects, in Shenzhen, Dongguan and Nanjing respectively, with a total gross floor area of approximately 220,000 square meters and a total land price of approximately RMB 3.6 billion. The land price has been paid in full.

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3. According to the current plan, the Group will pay approximately RMB 1 billion in land price for a city renewal project within 2020.

Project Progress

In order to strengthen the Epidemic prevention and control work, SZI's construction site will not resume work prior to 1 March, and the project progress will be affected. SZI is formulating a response plan: according to this year's construction schedule, the delayed resumption of work has not significantly affected important project nodes in key projects planned for completion in 2020.

Working Capital

1. The Group has sufficient cash. Based on the SZI's management account, the Group has a cash balance of approximately HK$12.2 billion (unaudited). According to internal estimates, assuming no pre-sale in the first quarter, the cash balance will remain at about HK$11 billion.
2. For short-term debt, approximately HK$3.2billion is due in the first half, and approximately HK$3.5 billion is due in the second half, of 2020. At present, the financing channels are open and there is no liquidity pressure.

Thank you for your attention and support. Let us work together to overcome difficulties.

- END -

For latest news about Shenzhen Investment Limited, please go to the official website

www.shenzheninvestment.com

For enquiry, please contact:

Shenzhen Investment Limited

Nicole Zhou	[e-mail]
Mabel Xiao	[e-mail]
Tel:	(852) 2312 8746

Financial PR (HK) Limited

Dawn Lee	[e-mail]
Vivi Mai	[e-mail]
Elva Li	elvali@ financialpr.hk
Tel:	(852) 2610 0846
Fax:	(852) 2610 0842

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