Shoucheng : 2021 Full Year Results Presentation

Shoucheng Holdings Limited (0697.HK)

2021 Full-Year Results

April 2022

Disclaimer

These materials are prepared by Shoucheng Holdings Ltd. (the "Company") solely for information use during its presentation to investors/research analysts and may not be reproduced, passed on or redistributed directly or indirectly to any other person (whether within or outside your organization/firm) or published, in whole or in part, for any purpose.

The information contained in these materials has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. Some of the information is still in draft form and will only be finalized at the time of publication of the financial report.

The information and opinions in these materials are provided as at the date of this presentation and are subject to change without notice. None of the Company, nor any of its respective affiliates, advisors or representatives accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials.

Except as required by law or any appropriate regulatory authority, the Company undertakes no obligation to publicly release the result of any revision to any forward-looking statement in this document that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this presentation.

By attending this presentation and accepting this document, you agree to maintain absolute confidentiality regarding the information contained in this document (until notified by the sponsors that research publication is permitted) and to be bound by the restrictions and other limitations set forth herein. Any failure to comply with these limitations may constitute a violation of law and may lead to legal or regulatory action.

Table of Contents

• 1 Business Highlights

  Business Overview

• 3 Future Prospects

FY2021 Business Highlights

Asset optimization

Revenue +69%

11.95 HKD million

Gross Profit +214%

5.47 HKD million

• • In January 2022, the company divested 11.88% equity interest in Shougang Fushan Resources Group Limited, which was a vital step on the strategic reconfigurations. The company is committed to become an infrastructure asset management platform with stable cashflow、 efficient operation and high economic cycle resistance

Equity incentive plan was officially launched to encourage employees to act as a whole

• • In November 2021, the company officially passed the equity incentive plan, becoming the first to implement equity incentives for the red chips of foreign state-owned enterprises in Beijing. Through all-round, multi-dimensional and strict standard consideration of the performance conditions of the exercise of rights, the employees and the enterprise can share the benefits, risks and grow together

  Operating Profit +818%

  Recurring Profit before tax +13%

  Taking the first mover advantage and being a leader of publicly-offered infrastructure REITs in China

• • Adapt to the policy opportunity of the publicly-offered infrastructure REITs, creating a closed loop of investment in the infrastructure sector, seizing the first-mover advantage and becoming the new benchmark of the industry

  5.69 HKD million

  3.65 HKD million

  Stable and high dividends to reward shareholders

• • The Company announced a final dividends HKD 400 million for the six months ended December 31 2021. The total dividends for the year was HKD 700 million. The company will insist on actively rewarding shareholders' support, and sharing company's development results with them

1