"Aspire Towards Perfection, Reach Beyond The Best" FINANCIAL HIGHLIGHTS (Year ended 31st December, 2000) Turnover was HK$1,198,378,000 Profit attributable to shareholders amounted to HK$160,864,000 Earnings per share were HK$0.16 A final dividend of HK$0.03 per share was proposed

MARKET OVERVIEW

• China experienced an encouraging GDP growth of 8%, with impressive progress in economic development.

• Guangzhou still took the lead amongst major cities of the country, achieving an increase of 13% for economic growth.

• The monetary housing policy has smoothly replaced the previous welfare housing system. Individuals are the dominant buying force of commodity properties.

• The potentially large supply in the market is a concern to property developers, forcing some of them to sell stocks under pressure and depressing the price levels of commodity properties.

SALES PERFORMANCE AND PROJECT DEVELOPMENT PROGRESS

• Projects available for sale in 2000 were all existing projects, namely, Regal Court, Gallopade Park, Huajing New City and Fairview Garden. The Group successfully sold approximately 2,157 residential units with total gross floor areas ("GFA") of approximately 218,014 sq.m.

• Regal Court, the flagship project of the Group in the luxurious market segment, achieved the best performance with sales of approximately RMB600 million.

• According to the official statistics released by the Guangzhou Land and Housing Administrative Bureau, two of the Group's projects, Regal Court and Gallopade Park, were enlisted amongst the top ten best-selling property development projects again in 2000.

• Projects of the Group progressed in accordance with, or even ahead of, planned schedule. In March, 23 mid-rise blocks of Gallopade Park Phase 3 and 4 high-rise blocks of Huajing New City Phases 6A and 6B were in occupancy. Besides, 2 mid-rise blocks of Fairview Garden Phase 3 were completed in June and 5 high-rise blocks of Regal Court Phase 1 were completed in August.

• The total GFA completed in 2000 amounted to approximately 500,000 sq.m., containing approximately 3,320 residential units.

• As at the end of 2000, the projects under construction were Regal Court Phase 2 and Huajing New City Phase 6C. New projects, including Riverside New City, Pleasant View Garden and Huanan New City, were all in active preparation stage.

PROSPECTS

• The property market will benefit from far-reaching initiatives of the central and municipal governments to liberate the housing policy.

• In the pursuit of realizing an impeccable quality of living, the Group aspires towards perfection and will continue to commit to its core activities of providing large-scale projects with integrated quality and comprehensive facilities so as to satisfy the market demand. From 2001, the Group is expected to derive substantial revenue from new projects.

• In light of China's impending entry into the WTO, the Group also anticipates an influx of foreign investments and stimulation of economic activities.

• In order to capture such valuable opportunities, the Group contemplates the possibilities of repeating business success in other metropolis of China. Feasible business ventures will be carefully identified in order to expand our businesses geographically and maximise shareholders' value.

FINAL RESULTS

The Directors of Hopson Development Holdings Limited (the "Company") are pleased to announce that the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31st December, 2000 with comparative figures for the previous year are as follows:

                                                        2000        1999
                                          Notes      HK$'000     HK$'000

Turnover                                   (1)     1,198,378   1,328,513
Cost of sales                                       (829,788)   (768,515)
                                                   ---------   ---------
Gross profit                                         368,590     559,998
Selling and marketing expenses                       (91,353)    (74,268)
General and administrative expenses                  (44,095)    (26,305)
                                                   ---------   ---------
Profit from operations                               233,142     459,425
Interest income                                        7,939      16,593
Interest expenses                                       (698)       (686)
                                                   ---------   ---------
Profit before taxation                               240,383     475,332
Taxation                                   (2)       (86,195)   (162,857)
                                                   ---------   ---------
Profit after taxation but before
  minority interests                                 154,188     312,475
Minority interests                                     6,676     (23,564)
                                                   ---------   ---------
Profit attributable to shareholders                  160,864     288,911
                                                   =========   =========
Earnings per share                         (3)
  - Basic                                           16 cents    29 cents
  - Diluted                                         16 cents    28 cents

Notes:

(1) Turnover

Turnover (net of applicable business tax) comprised (1) pre-sale of properties under development for sale, which is recognised by reference to the stage of completion of properties, the pre-sale activities and construction work of which have progressed to a stage when the completion of properties and the ultimate realisation of profit can be reasonably determined. Revenue recognised is limited to properties sold under legally-binding sale and purchase agreements. On this basis, the profit so recognised is restricted to the amount of instalments received; (2) sale of completed properties held for sale which is recognised upon execution of a legally-binding sale and purchase agreement. The profit recognised is restricted to the amount of instalments received; (3) rental income which is recognised when rental is received or receivable; and (4) property management income which is recognised when services are rendered.

(2) Taxation

Taxation comprised (1) provisions for Hong Kong profits tax at the rate of 16% (1999: 16%) and overseas taxation at the applicable rates prevailing in the countries of operations on the profits of companies within the Group for financial reporting purposes, adjusted for income and expenses items which are not assessable or deductible for taxation purposes; (2) provisions for deferred taxation at the current tax rate, in respect of significant timing differences arising from the use of different bases of recognition of revenues and expenses for financial reporting and tax purposes; and (3) land appreciation tax levied at progressive rates ranging from 30% to 60% on the balance of the proceeds received on transfer of real properties after deducting certain deductible items including consideration paid for acquisition of land use rights, land development costs incurred, construction costs spent for new buildings and facilities on the land or the assessed value of old buildings and facilities on the land and taxes paid in relation to the transfer of real properties. In December 1999, the National Tax Bureau granted a tax ruling to the Group to extend the land appreciation tax exemption period up to 31st December, 2000 regarding development projects registered before 1st January, 1994.

(3) Earnings per share

The calculation of basic earnings per share was based on the consolidated profit attributable to shareholders of approximately HK$160,864,000 (1999: HK$288,911,000) and the weighted average number of 1,000,000,000 shares (1999: 1,000,000,000 shares) in issue during the year.

The calculation of diluted earnings per share was based on the consolidated profit attributable to shareholders of approximately HK$160,864,000 (1999: HK$288,911,000), and the diluted weighted average number of approximately 1,000,483,000 shares (1999: 1,003,417,000 shares) in issue after adjusting the effect of all dilutive potential shares. The effect of the dilutive potential ordinary shares resulting from the outstanding employee share options on the weighted average number of shares in issue during the year was approximately 483,000 shares (1999: 3,417,000 shares), which were deemed to be issued at no consideration if all outstanding share options have been exercised, on the date when the options were granted.

MANAGEMENT DISCUSSION AND ANALYSIS

The Group's profit attributable to shareholders of approximately HK$160,864,000, sustained under a strongly competitive market environment, was 44% below the 1999 results of approximately HK$288,911,000. Basic earnings per share decreased from HK$0.29 in 1999 to HK$0.16 in 2000.

Turnover dropped by 10% to approximately HK$1,198,378,000 (1999: HK$1,328,513,000) as sales activities were focused on existing completed properties and none of the Group's new projects had yet come onto the market.

Market demand, coupled with our commitment to provide quality housing to customers, exerted pressure on cost of sales which increased by 8% to approximately HK$829,788,000 (1999: HK$768,515,000), with the cost-to-turnover ratio rising from 57.8% in 1999 to 69.2% in 2000.

More efforts were made to promote sales as a result selling and marketing expenses increased by 23% to approximately HK$91,353,000 (1999: HK$74,268,000). General and administrative expenses also increased by 68% to approximately HK$44,095,000 (1999: HK$26,305,000) reflecting mainly increased business activities, greater staff numbers and costs, and higher operating disbursements. The Group nevertheless remains committed to tightly controlled operating efficiency.

Interest income decreased primarily due to lower rates of interest applying to deposits and less funds placed on term deposit. At year end, cash and bank deposits totalled approximately HK$330 million and our borrowings were approximately HK$993 million, representing an increase of 63% over the 1999 borrowings of approximately HK$606 million. The main reason for the increase was to replenish landbank and to finance the development of new projects.

The financial position was comfortable with a gearing ratio of 31.2%, being the proportion of net borrowings (after deducting cash and bank deposits) against shareholders' equity. The Group's borrowings were secured and denominated in Renminbi.

The Group operated predominately in one geographical area, namely, Guangzhou, the People's Republic of China, and in one industry segment, being property development and investment.

DIVIDEND

An interim dividend of HK$0.01 (1999: HK$0.03) per share was paid in November 2000. The Board of Directors has recommended the payment of a final dividend of HK$0.03 (1999: HK$0.05) per share, making a total payment of HK$0.04 (1999: HK$0.08) per share for the year ended 31st December, 2000.

The final dividend will be paid on Friday, 8th June, 2001 to shareholders whose names appear on the register of members on Monday, 21st May, 2001 subject to the approval of shareholders at the Annual General Meeting to be held on Monday, 21st May, 2001.

CHARGES ON ASSETS

As at 31st December, 2000, certain assets of the Group with aggregate carrying value of HK$1,261 million (1999: HK$580 million) were pledged to secure banking facilities.

CONTINGENT LIABILITIES

As at 31st December, 2000 the Group provided:

a) guarantees to banks for mortgage facilities granted to the buyers of the Group's properties amounted to HK$1,315 million (1999: HK$707 million); and

b) a guarantee to a bank for a bank loan borrowed by an associate amounted to HK$11 million (1999: HK$11 million).

FOREIGN EXCHANGE FLUCTUATIONS

The Group earns revenue and incurs costs and expenses mainly in Renminbi. The Group experienced no significant foreign exchange movement and the Directors do not anticipate significant foreign exchange loss as a result of changes in the exchange rate between Hong Kong dollars and Renminbi in the foreseeable future.

EMPLOYEES

At the end of year 2000, the Group, including its subsidiaries but excluding the associate and jointly controlled entity, had approximately 1,115 (1999: 358) employees. Employees' remuneration (excluding directors' emoluments) was approximately HK$22 million (1999: HK$15 million) for the year.

CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 14th May, 2001 to Monday, 21st May, 2001, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the final dividend, all transfers of shares accompanied by the relevant share certificates must be lodged with the Company's Share Registrars in Hong Kong, Central Registration Hong Kong Limited, Shops 1712-1716, Hopewell Centre, 183 Queen's Road East, Hong Kong not later than 4:00 p.m. on Friday, 11th May, 2001.

CODE OF BEST PRACTICE

In the opinion of the directors, the Company has complied with the Code of Best Practice as set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("the Listing Rules") throughout the year, except that the independent non-executive directors of the Company are not appointed for specific terms. All directors other than the Chairman and Managing Director are subject to retirement by rotation at Annual General Meetings of the Company in accordance with the Company's Bye-laws.

PURCHASE, REDEMPTION AND SALE OF THE COMPANY'S LISTED SECURITIES

Neither the Company nor any of its subsidiaries has purchased, redeemed or sold any of the Company's listed securities during the year.

AUDIT COMMITTEE

The Audit Committee met with the management and the external auditors to review the financial statements for the year ended 31st December, 2000 and consider the significant accounting policies, and had discussed with the management the Group's internal controls and financial reporting matters.

PUBLICATION OF DETAILED RESULTS ANNOUNCEMENT ON THE STOCK EXCHANGE'S WEBSITE

The Company will submit CD-ROM to The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on or before 24th April, 2001 containing all the information required by paragraphs 45(1) to 45(3) of Appendix 16 of the Listing Rules for publication on the Stock Exchange's website.

By Order of the Board
Chu Mang Yee
Chairman

Hong Kong, 18th April, 2001

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