Interim Results Announcement 2017/2018

1 1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this Announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Announcement . (incorporated in Hong Kong with limited liability) (Hong Kong Stock Code: 0017) Interim Results Announcement 2017/2018 Results The board of Directors (the Board ) of New World Development Company Limited ( ) (the Company ) is pleased to announce the unaudited Interim Results of the Company and its subsidiaries (collectively the Group ) for the six months ended 31 December 2017 as follows.

2 CONDENSED CONSOLIDATED INCOME STATEMENT - UNAUDITED For the six months ended 31 December Note 2017 HK$m 2016HK$m Revenues 3 27, 26, Cost of sales (17, ) (17, ) Gross profit 10, 9, Other income gains, net 1, and marketing expenses ( ) ( )Administrative and other operating expenses (3, ) (3, )Changes in fair value of investment properties 7, Operating profit 4 14, 6, Financing income costs (1, ) (1, ) 13, 6, Share of Results of Joint ventures 1, 1, Associated companies Profit before taxation 15, 7, Taxation 5(3, ) (2, ) Profit for the period 12, 5, Attributable to.

3 Shareholders of the Company 11, 4, Holders of perpetual capital securities Non-controlling interests 1, 1, 12, 5, Dividends 1, 1, Earnings per share (HK$) 6 Basic Diluted 2 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - UNAUDITED For the six months ended 31 December 2017 HK$m 2016HK$m Profit for the period 12, 5, Other comprehensive income Items that will not be reclassified to profit or loss Remeasurement of post employment benefit obligation - ( )Revaluation of investment properties upon reclassification from property, plant and equipment and land use rights 3, deferred tax arising from revaluation thereof - ( )Items that had been reclassified/may be reclassified subsequently to profit or loss Fair value changes of available-for-sale financial assets Release of reserve upon disposal of available-for-sale financial assets ( ) ( )Release of reserves upon disposal of subsidiaries - ( )

4 Release of reserve upon restructuring of a joint venture - of reserves upon remeasurement of previously held equity interest in a joint venture - of reserve upon deregistration of subsidiaries ( ) ( )Share of other comprehensive income of joint ventures and associated companies (1, )Cash flow hedges differences 4, (4, ) Other comprehensive income for the period 8, (5, ) Total comprehensive income for the period 20, Attributable to: Shareholders of the Company 18, ( ) Holders of perpetual capital securities Non-controlling interests 1, 20, 3 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED Note As at 31 December 2017 HK$m As at30 June2017HK$m ASSETS Non-current assets Investment properties 133, 105, Property, plant and equipment 29, 30, Land use rights 1, 1, Intangible concession rights 11, 11, Intangible assets 4, 3, Interests in joint ventures 50, 49, in associated companies 27, 26, Available-for-sale financial assets 7, 6.

5 Held-to-maturity investments Financial assets at fair value through profit or loss Derivative financial instruments Properties for development 18, 18, Deferred tax assets Other non-current assets 3, 2, 289, 258, Current assets Properties under development 46, 48, Properties held for sale 34, 34, Inventories Debtors, prepayments and contract assets 7 28, 27, Financial assets at fair value through profit or loss Derivative financial instruments Restricted bank balances Cash and bank balances 65, 66, 175, 178, Non-current assets classified as assets held for sale 8 3, 178, 178, Total assets 468, 437, 4 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION UNAUDITED Note As at 31 December 2017 HK$m As at30 June2017HK$m EQUITY Share capital 76, 73.

6 128, 112, Shareholders funds 204, 186, capital securities 9, 9, interests 25, 25, Total equity 239, 220, LIABILITIES Non-current liabilities Long-term borrowings 127, 125, Deferred tax liabilities 9, 9, Derivative financial instruments Other non-current liabilities 137, 136, Current liabilities Creditors, accrued charges and contract liabilities 9 61, 50, Current portion of long-term borrowings 12, 14, Derivative financial instruments - Short-term borrowings 6, 6, Current tax payable 8, 7, 89, 79, directly associated with non-current assets classified as assets held for sale 8 - 90, 79, Total liabilities 228, 216, Total equity and liabilities 468, 437, 5 Notes: 1.

7 Basis of preparation and accounting policies The unaudited condensed consolidated Interim financial statements (the Interim Financial Statements ) for the six months ended 31 December 2017 have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants ( HKICPA ) and Appendix 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Hong Kong Stock Exchange ) (the Listing Rules ). The Interim Financial Statements should be read in conjunction with the 30 June 2017 annual financial statements.

8 The accounting policies used in the preparation of these Interim Financial Statements are consistent with those set out in the annual report for the year ended 30 June 2017 except as described in note 1 (a) and (b) below. (a) Adoption of amendments to standards The Group has adopted the following amendments to standards which are relevant to the Group s operations and are mandatory for the financial year ending 30 June 2018: Amendments to HKAS 7 Disclosure Initiative Amendments to HKAS 12 Recognition of Deferred Tax Assets for Unrealised Losses Annual Improvement Project Annual Improvements 2014 2016 Cycle The adoption of these amendments to standards does not have any significant effect on the Results and financial position of the Group.

9 (b) Early adoption of Hong Kong Financial Reporting Standard 15 Revenue from Contracts with Customers ( HKFRS 15 ) HKFRS 15 as issued by the HKICPA is effective for the financial year beginning or after 1 January 2018. The Group has elected to early adopt HKFRS 15 for the year ending 30 June 2018 because the new accounting standard provides more reliable and relevant information for users to assess the amounts, timing and uncertainty of revenue and cash flows. The Group has also elected to apply the cumulative catch-up transitional method whereby the effects of adopting HKFRS 15 for uncompleted contracts with customers as at 30 June 2017 are adjusted at the opening balance of equity as at 1 July 2017 and prior period comparatives are not restated.

10 The effects of the adoption of HKFRS 15 are set out in Note 2 below. HKFRS 15 establishes a comprehensive framework for determining when to recognise revenue and how much revenue to be recognised through a 5-step approach: (i) identify the contract(s) with customer; (ii) identify separate performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; and (v) recognise revenue when a performance obligation is satisfied. The core principle is that a company should recognise revenue when control of a good or service transfers to a customer.