Bangkok--Oct 29--Hopewell Hopewell Holdings Limited yesterday (October 28) announced its annual results for the 12 month-period ended June 30, 1997. The Group's loss attributable to shareholders was HK$ 1.696 million, compared with profits of HK$769.19 million in the previous year. The loss was due to a provision of HK$ 5,000 million against the Group's expenditure to date on the Bangkok Elevated Road and Train System (BERTS) which was taken in view of the uncertainly regarding the project, the weak Thai economy and the devaluation of the Baht. "This has clearly affected profit for the current year. Without this exceptional item, profit would have been HK$ 3.3 billion", said Sir Gordon Wu Ying-Sheung, Chairman and Managing Director of Hopewell. "If the project gets back on track, the directors expect that this provision will be reconsidered. Hopewell remains committed to the project and looks forward to negotiations with the government", he said. The Company said it would not be proceeding with new investment in the project in Thailand until all the fundamentals are satisfactory. Turnover for the period was HK$ 2850 million, compared with HK$ 2365 million in the previous year. Loss per share was 39 cents, compared with earnings of 18 cents in 1995/96. An exceptional gain of HK$ 2.8 billion was realized from the sale of a 40 per cent stake in Consolidated Electric Power Asia Limited (CEPA), which was completed in January 1997 but this was offset by the BERTS provision. Hopewell's Board of Directors has recommended a final dividend of 3 cents to make a total dividend for the year of 9 cents, compared with 6 cents the previous year. "The CEPA saled has strengthened our capital base and represents a good deal for our shareholders. It's hard to argue against an exceptional gain of HK$ 2.8 billion in the three years since CEPA was floated", said Sir Gordon. Proceeds from the sale have been largely used to reduce the Group's gearing levels. As at June 30, 1997, Hopewell Holdings corporate debt/equity ratio level stood at 21.1 per cent, compared with 23.9 per cent at the end of the previous financial year. In August 1997, the Company completed a deal to sell its remaining 19.99 per cent of CEPA in return for US$ 150 million plus an 80 per cent interest in the 1,320-megawatt Tanjung Jati B plant under construction in Indonesia. The Group received preliminary approval from the Indonesian government to develop Tanjung Jati C and negotiations on the power purchase agreement began in September 1997. This would give Hopewell an eventual total generating capacity of 2,640 megawatts in Indonesia. Exceptional gains from this sale will be recognised in the interim results for the first half of the Group's 1997/98 financial year and the proceeds have reduced gearing levels further. As at August 31, 1997, the corporate debt/equity ratio stood at 0 per cent. The Group realised higher revenues from toll roads in the Pearl River Delta. Traffic on the 123-kilometre GSZ East Superhighway in the PRC's Guangdong Province increased 20 per cent during the year and, as of August 1997, traffic flow had increased to 71,000 vehicles daily. A 20 per cent RMB toll increase was approved in September 1997, which comes on top of a 25 per cent toll increase in September 1996. Traffic on the 102-kilometre Shunde Roads network also increased strongly to reach 94,000 vehicles per day, as of August 1997. In May 1997, the Boca Tigris Bridge across the Pearl River was opened and in September 1997 the first section of the Guangzhou South-East Ring Road opened. In the Property Division, rental income from the Hopewell Centre and other properties contributed $300 million income to the Group. Hopewell has a land bank of 8,000 square metres in the Wan Chai area of Hong Kong which it intends to develop. The Group's 1,026-room Kowloon Panda Hotel in Tsuen Wan, close to Hong Kong's new airport, had occupancy rates of 80 per cent during the year, although occupancy rates have fallen since the Hong Kong handover in line with a general decline in the hotal industry. The Group's 438-room Grand Hotel Excelsior in Malta will open in 1998. The hotel operations contributed $125 million income to the Group. Hopewell Holdings develops and operates large scale infrastructure projects in Asia including the development of a 379-kilometre toll road network in China's fast-growing Pearl River Delta region and the development of a 60-kilometre road and train system in Bangkok, Thailand. It is constructing power plants in Indonesia and developing transport infrastructure in the Philippines. The Group also has extensive property and hotel interests. Issued by Hopewell Holdings Limited Contact Hong Kong : Rosemary Sayer: 909 64432 (Mobile) Bob Fienberg: 9408-6599 (Mobile) Mike Wong: 901-69226 (Mobile) Bangkok : Paterson & Partners (Thailand) Limited Public Relations Department, (662) 637-0270-9 This press release can be retrieved at http://irasia.com/listco/hk/hopewell. End.