HONG KONG, September 23 /PRNewswire/ --

- Begins Process of Selling Non-Core Holdings Disposing of Entire
Interest in Beijing Jingguang Centre

HKC (Holdings) Limited ("HKC (HOLDINGS)" or "the Group") (HKEx: 190),
announced its interim results for the six months ended 30 June 2007. During
the period under review, the Group's turnover was reported at HK$315.9
million (2006: HK$125.9 million). Net profit surged 143% to HK$603.3 million
(2006: HK$247.9 million) as the Group benefited from its strategic decision
to focus on property. Basic earnings per share were recorded at HK13.9 cents
(2006: HK10.5 cents).

In view of the encouraging results, and to reward shareholders, the Board
of Directors recommended the payment of an interim dividend of HK8 cents per
share, with HK4 cents given out as a scrip dividend. Investors will have the
option of receiving the other HK4 cents in cash or in scrip. The Board of
Directors also recommended a special dividend of HK2 cents in cash for the
disposal of the Beijing Jingguang and to commemorate the company's 20th
anniversary of its listing on the Hong Kong Stock Exchange, resulting in a
total dividend for the first-half 2007 of HK10 cents per share.

Strong property markets and ability to acquire undervalued assets account
for the strong gain.

For first-half 2007, the Group's property portfolio benefited from the
continued improvement in China's property market, with property prices
continuing to increase in China, resulting in substantial revaluation gains
for HKC (HOLDINGS)'s portfolio of properties. Despite the price increases and
reflecting the abilities of HKC (HOLDINGS)'s land acquisition team, HKC
(HOLDINGS) was still able to acquire land at very favorable prices. In
Tianjin, the Group acquired a property company with the rights to develop
lake villas and low rise apartments along the eastern shore of Tuanbo Lake in
Jinhai County. HKC (HOLDINGS) acquired the company for HK$774.9 million in
May 2007. In June 2007, the property was revalued, resulting in a negative
goodwill of HK$374.5 million for first-half 07.

Outlook remains strong for the second half, especially as the company
begins to dispose of non-core assets at substantial profits.

Looking forwards, prospects for the Group remain very positive-not only
because of the continued improvement in the property market and the Group's
ability to acquire land at favorable prices, but also because the Group is
beginning to implement its plan to sell off non-core assets, the cash
proceeds of which will be used to increase the company's landbank and
therefore further increase the Group's net asset value (NAV) and future
profitability.

On 20 September, the Group entered into an agreement to dispose its
entire interests in Beijing Jingguang Centre at a total consideration of
HK$505 million. HKC (HOLDINGS) is expected to record a profit of
approximately HK$150 million in the second half-year of 2007 on the sale,
subject to the annual audit of the Group's financial statements.

Mr. Eric Oei, Managing Director and Chief Executive Officer of HKC
(HOLDINGS), said, "It has always been our strength to obtain land at
reasonable prices. Capitalizing on this strength, we would like to sell our
non-core assets in order to increase the size of our landbank, particularly
for commercial properties. The Group has a number of other non-core
properties that it expects to sell over the next year, enabling the Group to
monetize the substantial valuation gains achieved for its many properties."

"Our strengths have attracted one of the world's top private investment
companies, Cerberus Asia Capital Management, LLC ("Cerberus"), which intends
to use the Group as its preferred platform for investing in China's property
market." Mr. Oei said. "With its anticipated investment and participation on
our investment committee, we intend to work together in acquiring additional
sites that will substantially add to the Group's NAV."

In addition to property, the Group expects its alternative energy
investments to begin generating revenues in the second half. HKC (HOLDINGS)'s
wind power station in Mudanjiang, Heilongjiang Province, has completed
construction. Meanwhile, the Group's waste to energy plant in Linyi, Shandong
Province is currently under trial operation, and is also expected to generate
revenues in the second half.

About HKC (Holdings) Limited (stock code: 190)

HKC (Holdings) Limited is principally engaged in property development and
investment activities with a primary focus in the PRC. It is also one of the
leading providers of alternative energy in the PRC.

For more information, please visit the Group's website:
http://www.hkcholdings.com.

Web site: http://www.hkcholdings.com