Financial Highlights

Turnover: Up 14% to HK$5.4billion
-------------------------------------
Profit: Up 30% to HK$408million
-------------------------------------
Dividend per share: Up 22% to HK$1.40
-------------------------------------
Earnings per share: Up 30% to HK$1.57
-------------------------------------

Business Review

• The Construction Division achieved strong profit growth due to improved profit margin from contracts and effective cost control.

• Construction works of the Private Sector Participation Scheme project in Tseung Kwan O, awarded in July 1998, was progressing ahead of schedule.

• Construction contracts secured during the year reached a record level of HK$8.6 billion. The gross and outstanding values of construction contracts on hand at 31 May 1999 maintained at high levels of HK$14.3 billion and HK$9.2 billion respectively.

• Demand for concrete, aggregates and cement of the Construction Materials Division remained stable amid an increasingly competitive market environment with declining prices.

Prospects

• Strong profit growth is expected for the coming year with the current dividend policy maintained, barring unforeseen circumstances.

• The Construction Division is well poised to capitalise on the increase in construction activity in the public sector in Hong Kong.

• With increased housing construction and infrastructural works in Hong Kong and the Chinese Mainland, steady demand for the Group's construction materials is expected to be maintained.

• The second 300,000-tonne rotary kiln at the cement plant in Chongqing, when completed towards end of this year, will increase the annual production capacity to one million tonnes and contribute to the Group's future profitability growth.

Results

                                      Notes         1999        1998
                                                 HK$'000     HK$'000
Turnover                                       5,375,963   4,731,874
---------------------------------------------------------  ---------
Operating profit
   Excluding exceptional item                    474,514     332,864
   Exceptional item                    1         (30,601)          -
---------------------------------------------------------  ---------
                                                 443,913     332,864
Share of results of associated
   companies                                          (9)       (223)
Share of results of jointly
   controlled entities                            39,580      29,673
---------------------------------------------------------  ---------
Profit before taxation                           483,484     362,314
Taxation                               2         (74,374)    (49,965)
---------------------------------------------------------  ---------
Profit after taxation                            409,110     312,349
Minority interests                                  (791)        787
---------------------------------------------------------  ---------
Profit attributable to shareholders              408,319     313,136
=========================================================  =========
Dividends                              3         364,040     299,000
=========================================================  =========
Earnings per share
   Basic / Diluted                     4         HK$1.57    HK$ 1.20
=========================================================  =========

Notes:

1. Exceptional item

It represented deficit on revaluation of an investment property.

2. Taxation

                                                       1999     1998
                                                    HK$'000  HK$'000
------------------------------------------------------------  ------
Company and subsidiaries
   Hong Kong profits tax                             68,543   44,522
   Income tax of other regions in Chinese Mainland      187        -
   Deferred taxation                                   (833)     919

Jointly controlled entities
   Hong Kong profits tax                              6,566    4,984
   Income tax of other regions in Chinese Mainland      269        -
   Deferred taxation                                   (358)    (460)
------------------------------------------------------------  ------
Total                                                74,374   49,965
============================================================  ======

Hong Kong profits tax has been provided at the rate of 16% (1998: 16.5%) on the estimated assessable profits for the year.

3. Dividends

                                                      1999      1998
                                                   HK$'000   HK$'000
----------------------------------------------------------  --------
Interim dividend                                   104,000    39,000
Proposed final dividend                            260,040    78,000
Special dividend                                         -   182,000
----------------------------------------------------------  --------
Total                                              364,040   299,000
===========================================================  =======

4. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

                                                       1999     1998
                                                    HK$'000  HK$'000
-----------------------------------------------------------  -------
Earnings for the purposes of basic and diluted
   earnings per share                               408,319  313,136
===========================================================  =======
                                                       '000     '000
Weighted average number of ordinary shares for
   the purposes of basic earnings per share         260,002  260,000

Effect of dilutive potential ordinary shares:
   Share options                                        603       72
-----------------------------------------------------------  -------
Weighted average number of ordinary shares for
   the purposes of diluted earnings per share       260,605  260,072
===========================================================  =======

Dividends

The Directors recommend the payment of a final dividend of HK$1.00 per share. This together with the interim dividend of HK$0.40 per share paid on 11 December 1998 will give a total of HK$1.40 per share for the year ended 31 March 1999.

Subject to shareholders' approval at the forthcoming Annual General Meeting, the final dividend will be paid on 26 August 1999 to shareholders whose names appear on the Company's register of members on 17 August 1999.

Closure of register of members

The register of members of the Company will be closed from Tuesday, 10 August 1999 to Tuesday, 17 August 1999, both days inclusive, during which period no transfer of shares will be effected.

In order to qualify for the proposed final dividend, all share transfers accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Standard Registrars Limited at 5th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong, not later than 4:00 p.m. on Monday, 9 August 1999.

Year 2000 compliance

Following a detailed risk assessment of the Year 2000 issue, a special task force was set up to undertake the compliance work and a comprehensive action plan and a timetable have been put in place.

The required systems upgrade and modification have been completed according to schedule. It is anticipated that the Year 2000 issue will not cause any significant operational problems to the Group. The Group is in the process of formulating contingency plans to deal with any unforeseen problems that may arise during the millennium crossover.

A more detailed disclosure of the compliance work will be included in the annual report for 1998/99.

Purchase, sale or redemption of shares

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

Acknowledgment

I would like to extend my heartfelt appreciation to the staff members of the Group for their dedication and contribution this past year and congratulate them on the results we have achieved.

By Order of the Board
Lo Hong Sui, Vincent
Chairman

Hong Kong, 28 June 1999

Web Site: www.shuion.com