[For Immediate Release]

JOINTLY ANNOUNCES 2019/20 ANNUAL RESULTS

(, 23 June 2020) Emperor Entertainment Hotel Limited (“Emperor E Hotel”) (Stock code: 296) & Emperor International Holdings Limited (“Emperor International”) (Stock code: 163) jointly announced its 2019/20 annual results for the year ended 31 March 2020 (the “Year”).

Emperor Entertainment Hotel Limited

Results Summary For the Year ended 31 March HK$’000 2020 2019 Total revenue 1,143,230 1,381,335 Gaming revenue 926,845 1,136,856 - From gaming concourse 623,226 664,826 - From VIP room 267,961 429,423 Hotel revenue 216,385 244,479 Gross profit 614,150 838,191 Net profit 263,915 367,492 Basic earnings per share HK$0.21 HK$0.29 Total dividends per share HK$0.060 HK$0.082

During the Year, the Sino-US tensions and the outbreak of coronavirus disease (COVID-19; the “Pandemic”) have resulted in the most drastic economic slump over the past two decades. Due to the Pandemic, stringent travel restrictions and health control measures upon arrivals were imposed; the whole gaming services in Macau was even compulsorily closed for 15 days in February 2020, resulting in a significant drop in visitation in Macau. As a result, Emperor E Hotel’s revenue decreased to HK$1,143.2 million (2019: HK$1,381.3 million) during the Year. Net profit decreased to HK$263.9 million (2019: HK$367.5 million). Basic earnings per share were HK$0.21 (2019: HK$0.29). Emperor E Hotel recommended the payment of a final dividend of HK$0.030 (2019: HK$0.054) per share. Together with the interim dividend of HK$0.030 (2019: HK$0.028) per share, the total dividends for the Year are HK$0.060 (2019: 0.082) per share.

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Gaming Revenue During the Year, Emperor E Hotel’s gaming revenue decreased to HK$926.8 million (2019: HK$1,136.9 million), accounting for 81.1% (2019: 82.3%) of the total revenue, and continued to be the major revenue contributor.

The gaming revenue comprises the income from gaming concourse, VIP room and slot machines, accounting for 67.3%, 28.9% and 3.8% of the gaming revenue respectively. Operational results of gaming concourse and VIP room segments are summarised as follows:

For the Year ended 31 March HK$ 2020 2019 Gaming Concourse (67 tables) Gross win 1,113.8 million 1,187.0 million Average win per table per day 45,000 49,000 VIP Room (10 tables) Rolling amount 10.2 billion 19.3 billion Gross win 471.9 million 756.8 million Average win per table per day 129,000 207,000

Hotel Revenue During the Year, the hotel revenue derived from Grand Emperor Hotel and Inn Hotel Macau was HK$216.4 million (2019: HK$244.5 million), accounting for 18.9% (2019: 17.7%) of total revenue. As at 31 March 2020, Grand Emperor Hotel and Inn Hotel Macau provided 311 and 287 guest rooms, respectively. The average room rates of Grand Emperor Hotel and Inn Hotel Macau were HK$830 (2019: HK$888) per night and HK$504 (2019: HK$520) per night, with occupancy rates of 88% (2019: 94%) and 90% (2019: 93%), respectively.

Ms. Vanessa Fan, Executive Director of Emperor E Hotel, said, “The Pandemic has started since the end of January this year. All gaming services in Macau were compulsorily closed for 15 days in February. Stringent travel restrictions and health control measures upon arrivals were also enforced subsequently, resulting in a substantial decrease in the number of visitors to Macau. Although the Pandemic situation in Macau and its neighboring areas has been relatively contained for the past two months, the relevant restrictions and quarantine measures are still in place. It is believed that it will take some time before it can fully recover. Nevertheless, Emperor E Hotel completed its payback period in 2010, and it currently has a healthy balance sheet position. We will strive to strictly control daily operational and capital expenditures. At the same time, we will closely monitor the market situation, promptly adjust strategies accordingly and maintain its market competitiveness.”

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Emperor International Holdings Limited

Results Summary For the Year ended 31 March HK$’000 2020 2019 Total revenue 2,365,382 4,352,386 - Rental income 1,007,719 1,107,820 - Property sales 145,250 1,695,772 - Hotel and hotel related operations 1,212,413 1,548,794 Gross profit 1,506,653 2,536,482 Fair value (loss)/gain on investment properties (4,129,522) 1,749,284 Net (loss) / profit - Underlying 1 842,238 1,495,801 - Reported (3,644,359) 3,136,289 Basic (loss) / earnings per share HK$(0.99) HK$0.85 Total dividends per share HK$0.070 HK$0.110 1 Excluding the effect of any fair value changes and write-downs net of deferred taxation

The global trade disputes, local social issues and the Pandemic have unquestionably hindered economic development in Hong Kong. Market leasing demand of both retail and office segments remained under pressure, while demand for hospitality services was also adversely affected during the Year. Against such backdrop, Emperor International’s total revenue was HK$2,365.4 million (2019: HK$4,352.4 million) during the Year. Rental income dropped to HK$1,007.7 million (2019: HK$1,107.8 million), representing 42.6% (2019: 25.4%) of total revenue. Revenue from the sales of property development was HK$145.3 million (2019: HK$1,695.8 million). The fluctuation of this segment is mainly due to the sales pipeline and strategies, as well as the revenue recognition policy. Revenue from the hospitality segment decreased to HK$1,212.4 million (2019: HK$1,548.8 million), and accounted for 51.3% (2019: 35.6%) of the total revenue. Gross profit decreased to HK$1,506.7 million (2019: HK$2,536.5 million).

A revaluation loss on investment properties amounted to HK$4,129.5 million (2019: revaluation gain of HK$1,749.3 million). As a result, loss for the Year attributable to the owners of the Company of HK$3,644.4 million (2019: profit of HK$3,136.3 million) was recorded. Excluding the revaluation loss (2019: revaluation gain) on investment properties, the underlying profit amounted to HK$842.2 million (2019: HK$1,495.8 million). Basic loss per share was HK$0.99 (2019: basic earnings per share of HK$0.85). In order to strive for a relatively stable dividend for shareholders, Emperor International recommended the payment of a final dividend of HK$0.035 (2019: HK$0.063) per share. Together with the interim dividend of HK$0.035 (2019: HK$0.047) per share, the total dividends for the Year are HK$0.070 (2019: HK$0.110) per share.

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Property Sales As at 31 March 2020, only 1 out of 14 detached and semi-detached houses of Peak Castle in Siu Lam, Tuen Mun was open for sale. The site at Nos. 8-10A Mosque Street, Mid-Levels was developed into a 29-storey (including lower ground floor) boutique residential tower with a gross floor area of approximately 34,000 square feet. Subsequent to the end of the Year, the project has been named as Central 8, and the pre-sale has been launched. Another two luxury residential sites, located at Tuen Mun Town Lot No. 490, Tai Lam and Rural Building Lot No. 1198, Shouson Hill respectively, will offer altogether 23 blocks of detached houses nestling in the green belts and yet within proximity to transport links and prestigious schools. The occupation permits have been obtained. The projects are expected to be fully completed in 2020 and will soon be launched to the market.

There are 6 more redevelopment projects planned for completion from 2022 onwards, which provide an aggregate gross floor area of approximately 275,200 square feet: (1) the site at Nos. 20-26 & No. 11 Chancery Lane, Mid-Levels is planned for redevelopment into a 26-storey boutique luxury residential tower; (2) the site at Nos. 24-26A, Davis Street, Kennedy Town, a popular urban area in with the successful extension of MTR to Kennedy Town, will be redeveloped into a 22-storey residential and retail tower; (3) the site at Nos. 24-30 , Mid-Levels will be redeveloped into a 27-storey residential tower; (4) the site at No. 1 Wang Tak Street, Happy Valley, previously the Emperor (Happy Valley) Hotel, will be redeveloped into a 27-storey residential tower; (5) the existing building at Nos. 74-80 Old Main Street Aberdeen, Aberdeen will be redeveloped into a 23-storey residential and retail building; and (6) the site at No. 127 , Mid-Levels will be redeveloped into a 22-storey residential and retail tower.

Rental Income Emperor International’s investment property portfolio primarily focuses on quality street-level retail spaces and commercial buildings in key cities in Greater China as well as London. In recent years, Emperor International has been expanding its coverage, enabling it to possess a geographically balanced property portfolio. Hong Kong accounted for more than 65% of Emperor International’s total gross floor area of its entire investment properties portfolio. As at 31 March 2020, the occupancy rate of Emperor International’s investment properties in Hong Kong was nearly 95%.

During the Year, Emperor International enriched its investment properties portfolio by acquiring CentreHollywood at No. 151 , Hong Kong, a 26-storey commercial and office building with a gross floor area of approximately 35,000 square feet. Emperor International also continued to enhance the value and maximise the potential rental income of its premises by undertaking various redevelopment and revitalisation programmes in Hong Kong. The redevelopment project at Nos. 75-85 Lockhart Road, , will be transformed into a Grade-A office building with a gross floor area of approximately 96,000 square feet, which is scheduled for completion in 2021. Another redevelopment project at No. 4 Kin Fat Lane, Tuen Mun, will be transformed into a 14-storey commercial building through a wholesale conversion

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scheme, and will support diverse functions such as food and beverage, retail and offices. The alteration and addition works will be completed in 2020. In the meantime, Emperor International has already obtained several town planning approvals, covering Toppy Tower, New Media Tower, and Bhotai Industrial Building & Shan Ling Industrial Building, and the redevelopment projects are scheduled to be completed in or after 2024.

In London, the site at Nos. 25-27 Oxford Street will be redeveloped into a 9-storey retail and office building with a gross floor area of approximately 20,000 square feet. The redevelopment project will be completed in 2020.

Hotel and Hotel Related Operations Emperor International currently runs 3 hotels and 2 serviced apartments in Hong Kong and Macau, namely The Emperor Hotel, MORI MORI Serviced Apartments, The Unit Serviced Apartments, Grand Emperor Hotel and Inn Hotel Macau.

Emperor International continued to enjoy steady contributions from hotel operations. The disposal of Inn Hotel Hong Kong was completed in June 2019 and the relevant gain on disposal amounted to HK$712.6 million.

Mr. Alex Yeung, Executive Director of Emperor International, said, “The Pandemic, coupled with the stock market volatility and various unfavourable economic indicators, have led to a negative property investment sentiment. Nevertheless, we expect the land supply shortage, buyers’ solid demand for residential units and the low interest rate environment will help in supporting the residential property market. We have already established a solid pipeline in residential properties which will be completed in the coming years. These projects will provide promising contributions in the near to mid-term.”

Mr. Donald Cheung, Executive Director of Emperor International, said, “To sharpen its competitiveness, we will continue to acquire commercial buildings that have great potential, improve our investment property portfolio by undertaking urban renewal projects and structure enhancement, as well as tenants remix programs, with a view to ensure sufficient land bank for future developments. Although a tough business operating environment is expected to last for some time, we remain cautiously optimistic regarding the long-term development of the local residential property market.”

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About Emperor International Holdings Limited Emperor International is an investment holding company, which is principally engaged in property investments, property development and hospitality with property portfolio of over 6 million square feet in the Greater China and overseas. Under its tri-engine business model, Emperor International owns and manages investment properties in prime locations that generate solid income; developing residential projects to drive earnings visibility; and operating hospitality services with strong recurrent cash flow. With its management execution strengths and market insight, Emperor International aims to be a key property player in Greater China. Emperor International has been recognised by BCI Asia as one of the “Top 10 Developer in Hong Kong 2019” for its sustainability efforts and achievements in developing high quality and innovative projects. For more information, please visit its website: www.emperorint.com.

About Emperor Entertainment Hotel Limited Emperor E Hotel principally engages in provision of entertainment and hospitality services in Macau under its parent company, Emperor International. It runs two hotels in Macau, namely Grand Emperor Hotel and Inn Hotel Macau, offering entertainment and leisure services, accommodation, food and beverage as well as retail outlets. Looking forward, it continues to look for potential business opportunities worldwide in the leisure sector. For more information, please visit its website: www.emp296.com.

Investor/Press Enquiry Anna Luk, Group IR Director Janice Au, Group IR Manager Tel: +852 2835 6783 Tel: +852 2835 6799 Email: [email protected] Email: [email protected]

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