09:50     SHK PPT<00016> - Announcement (2)                                   

    As at 30 June 2004, the audited consolidated total asset value of         
    Widegood was approximately HK$950,339,231 and Widegood had an audited     
    consolidated negative net asset value of HK$12,544,258 as at 30 June      
    2004. The audited consolidated net profits before taxation and            
    extraordinary items of Widegood for the two financial years ended 30      
    June 2003 and 30 June 2004 were approximately HK$8,636,519 and            
    HK$62,011,638 respectively and the audited consolidated net profits       
    after taxation and extraordinary items of Widegood for the two            
    financial years ended 30 June 2003 and 30 June 2004 were                  
    approximately HK$2,774,905 and HK$43,292,278 respectively. The            
    financial statements of Widegood were prepared in accordance with         
    Hong Kong generally accepted accounting principles.                       
                                                                              
    After completion of the Acquisition, Widegood has become a                
    wholly-owned subsidiary of the Company. As Widegood is all along a        
    subsidiary of the Company, the financial statements of Widegood were      
    consolidated into that of the Group even prior to completion of the       
    Sale and Purchase Agreement.                                              
                                                                              
    REASONS FOR AND BENEFITS OF THE ACQUISITION                               
    The Directors believe that the Acquisition provides an opportunity        
    for the Group to consolidate full control of Widegood at a reasonable     
    consideration. The Directors (including the independent non-executive     
    Directors) are of the view that the terms of the Acquisition are fair     
    and reasonable and in the interests of the Group and the shareholders     
    of the Company as a whole.                                                
                                                                              
    CONNECTED TRANSACTION                                                     
    Since the Vendor is a substantial shareholder of Widegood which is a      
    subsidiary of the Company, it is a connected person of the Company        
    for the purpose of the Listing Rules and transactions between members     
    of the Group and the Vendor constitute connected transactions for the     
    Company. As the relevant percentage ratios calculated under Rules         
    14.07(1) and 14.07(3) of the Listing Rules in respect of the              
    Acquisition are more than 0.1% but less than 2.5%, the Company is         
    required by the Listing Rules to disclose particulars of the              
    Acquisition by way of an announcement but is exempted from the            
    independent shareholders' approval requirements under the Listing         
    Rules.                                                                    
                                                                              
    GENERAL                                                                   
    The Group is principally engaged in the development of and                
    investment in properties for sale and for rental purposes. As far as      
    the Directors are aware and according to publicly available               
    information, the Vendor and its subsidiaries are engaged in multiple      
    types of businesses, ranging from consumer and retail related, IT         
    products and services, natural resource development, and financial        
    services to investment and project management.                            
                                                                              
    DEFINITIONS                                                               
    In this announcement, unless the context requires otherwise, the          
    following terms shall have the following meanings:                        
                                                                              
    `Acquisition'                  the acquisition of the Sale                
                                   Shares and the Sale Loan by                
                                   the Purchaser from the Vendor              
                                   pursuant to the terms and                  
                                   conditions of the Sale and                 
                                   Purchase                                   
                                   Agreement                                  
    `Company'                      Sun Hung Kai Properties                    
                                   Limited, a company                         
                                   incorporated in Hong Kong                  
                                   with limited liability, the                
                                   shares of which are listed on              
                                   the main board of the Stock                
                                   Exchange                                   
    `Directors'                    the directors (including the               
                                   independent non-executive                  
                                   directors) of the                          
                                   Company                                    
    `Group'                        the Company and its                        
                                   subsidiaries                               
    `Hong Kong'                    the Hong Kong Special                      
                                   Administrative Region of the               
                                   PRC                                        
    `Listing Rules'                The Rules Governing the                    
                                   Listing of Securities on the               
                                   Stock                                      
                                   Exchange                                   
    `PRC'                          the People's Republic of                   
                                   China, which for the purposes              
                                   of the announcement, excludes              
                                   Hong Kong, the Macau Special               
                                   Administrative Region and                  
                                   Taiwan                                     
    `Purchaser'                    Sun Hung Kai Development                   
                                   (China) Ltd., a company                    
                                   incorporated in Hong Kong and              
                                   a wholly-owned subsidiary of               
                                   the                                        
                                   Company                                    
    `Sale and Purchase Agreement'  the unconditional sale and