(For Immediate Release)

Financial Highlights Year ended December 31 1999 1998 HK$'000 HK$'000 YOY(%) Turnover 1,328,513 1,303,332 +1.9 Net profit 288,911 310,678 -7.0 Basic earnings per share 29 cents 35 cents Final dividend 5 cents 12 cents Total dividend payout 8 cents 12 cents

(May 8, 2000 - Hong Kong) - Hopson Development Holdings Limited ("Hopson Development" or the "Company", together with its subsidiaries, the "Group", stock code: 754) today announced its annual results for the year ended December 31, 1999. The Group recorded a growth rate of 1.9 percent in turnover, totaled HK$1,328,513,000. Net profit attributable to shareholders was HK$ 288,911,000.

The Board of Directors recommended the payment of a final dividend of HK 5 cents per share for the year ended December 31, 1999, together with an interim dividend of HK 3 cents, total dividend for the year is HK 8 cents.

During 1999, the Group well adapted to the transitional period of housing reform, pitching itself as one of the PRC property developers with best earning performance. During the year under review, Hopson completed 79 residential blocks containing approximately 3,210 residential units. The total gross floor area ("GFA") completed amounted to about 550,000 sq.m. In the year, Hopson sold approximately 2,500 residential units with total GFA of approximately 265,000 sq.m.

In terms of sales performance, Hopson Development is among the top list in the marketplace. In just 14 months' time, the Group had superstructures of over 110 residential blocks topped out, which was a remarkable achievement for the Group.

Hopson Development has already established a constructive brandname effect in Guangzhou property market, buildings developed by the Group now become the most sought-after projects in the city. Three of the Group's projects, namely Gallopade Park, Fairview Garden and Huajing New City were included into the list of top ten "best-selling" property development projects in Guangzhou. Hopson is the property developer with most projects listed as "best selling" developments. In addition, Gallopade Park was also elected as the No. 1 "most popular" project in the city.

Commenting on the overall operating environment, Mr. Stones Tse, Managing Director of Hopson Development, said, "During 1999, the Guangzhou commodity property market recorded growth in transacted floor areas of 10.6 percent but reduction in the approved pre-sale floor areas of 25.2 percent. The improved absorption rate of commodity property space and the marked diminishing of market supply reflected that, even under the highly competitive environments, the local property market remained reasonably stable and healthy."

He added, "It is also worthy to note that last year the proportion of individual purchasers buying the Group's residential units was increased to 85 percent, implying a smooth transition for the Group to cope with change in housing reform policy from influencing institutional buying to dominant individual buyers."

In January 2000, the Group announced its intention for a series of acquisitions to replenish its landbank. These include enlargement of the Group's shares in both Gallopade Park and the prime site of Haizhu District, Riverside New City. Besides, the neighboring sites of Pleasant View Garden are to be merged to triple the size of original development. Other than these, the Group also decided a strategic move to acquire its single-largest development, Huanan New City in Panyu's riverbank. The total GFA proposed to be added is over 2.6 million sq.m., doubling the Group's existing landbank.

Project	Location	Site Area (sq.m.)	Estimated Total GFA (sq.m.)	Interest Attributable to the Group	Additional Estimated Attributable GFA (sq.m.)
Gallopade Park	Tianhe District	179,667	563,345	95 percent	140,836
Riverside New City	Haizhu District	654,107	1,969,727	40 percent	443,188
Pleasant View Garden	Haizhu District	342,727	685,454	52 percent	246,416
Huanan New City	Panyu	2,015,614	3,023,421	60 percent	1,814,053
Total					2,644,493

As a step towards lateral expansion, the Group set up its 90 percent owned property management company, Esteem Guangdong Zhujiang Investment Company ("Esteem"), to provide quality property management services to customers. "Esteem" is deemed to be one of the largest property management companies in Guangzhou City.

Since technology is changing people's way of living all over the world, the Group has closely observed such changes and has installed community-based intranet and internet services in Regal Court, it also plans to replicate this services in its upcoming new developments.

Mr. Tse added, "Property market has entered into a new era whereby individual buyers become dominant buying forces. The implemented housing reform will further activate the urge for individual home ownership, thereby accelerating the degree of marketization. The local property is undergoing consolidation and polarization where developers lacking competitive edges are being squeezed out. As the new housing reform propelling at full speed, the Group also envisaged that mid-range properties are going to be in keen demand.

"Hopson does not rest on its laurels. In contrast, we have determined efforts in carving out our niches: precise market targeting, meticulous project planning, scale economy exploitation and constructive brandname effect . The Group will continue to realize its mission to provide better quality of life to its customers and to reinforce its position as a leading property developer in the marketplace. Through Hopson, you find impeccable realization of living quality ."

For further information, please contact:

iPR ASIA Limited
Tina Law/ Natalie Tam
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Fax: 2136 6118/ 2136 6068
E-mail: [email protected]

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