HONG FOK CORPORATION LIMITED

(Co. Reg. No. 196700468N)

Full Year Financial Statement And Dividend Announcement for the Year Ended 31 December 2006

PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR
RESULTS

1(a) An income statement (for the group), together with a comparati ve statement for the corresponding period of the
immediately preceding financial year.

Full year financial statement on consolidated results for the year ended 31 December 2006.
These figures have not been audited.

%
Increase/
2006 2005 (Decrease)
Revenue (Note 1) 63,235 38,729 63
Other income (Note 2) 293 327 (10)
63,528 39,056 63
Allowance for doubtful receivables and bad debts written off, net (136) (333) (59)
Cost of sales of development properties (23,538) - NM
Depreciation of fixed assets (448) (428) 5
Exchange (loss)/gain, net (206) 399 NM
Gain/(Loss) on remeasurement of other investments 140 (378) NM
Impairment loss on other investments - (591) NM
Write-back of allowance for diminution in value of development 849 - NM
properties
Write-back of impairment loss on other assets 44 43 2
Other operating expenses (26,992) (23,679) 14
Finance costs (25,358) (18,782) 35
(12,117) (4,693) 158
Share of results of associates (3,553) (4,383) (19)
Loss from operations before taxation (Note 3) (15,670) (9,076) 73
Income tax expense - current year (363) (96) 278
Income tax expense - overprovision in prior years - 305 NM
Deferred tax expense (67) (171) (61)
Net Loss for the year (16,100) (9,038) 78
$'000
The Group

Notes :
(1) Included in Revenue is investment income of approximately $79,000 (2005 : $312,000).
(2) Included in Other income is gain on disposals of fixed assets, net of approximately $5,000 (2005 : $97,000).
(3) Included in Loss from operations before taxation is net profit on disposals of development properties of approximately
$1,300,000 (2005 : $Nil).
(4) NM Not Meaningful.
(5) NA Not Applicable.










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1 (b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately
preceding financial year.


2006 2005 2006 2005
Non-current Assets
Fixed assets 568 732 - -
Subsidiaries - - 190,290 191,363
Associates 159,688 176,412 4,251 4,456
Investment properties 1,053,380 867,453 - -
Other assets 408 375 - -
Deferred tax assets - 51 - -
1,214,044 1,045,023 194,541 195,819
Current Assets
Derivative asset - 241 - -
Other investments 1,175 1,084 - -
Development properties 31,902 50,038 - -
Trade and other receivables 4,124 2,785 3 3
Cash and cash equivalents 703 967 50 51
37,904 55,115 53 54
Total Assets 1,251,948 1,100,138 194,594 195,873
Share capital (Note 6) 150,713 149,899 150,713 149,899
Reserves (Note 6) 594,537 438,347 40,516 42,289
Total Equity 745,250 588,246 191,229 192,188
Non-current Liabilities
Obligations under finance leases 82 215 - -
Interest bearing loans and borrowings 485,217 367,357 - -
Financial guarantees - - 1,769 2,366
Deferred tax liability 513 498 - -
485,812 368,070 1,769 2,366
Current Liabilities
Bank overdraft (secured) 1,465 123 - -
Trade and other payables 18,782 15,091 666 456
Obligations under finance leases 132 145 - -
Interest bearing loans and borrowings - 128,231 - -
Financial guarantees - - 930 863
Tax payable 507 232 - -
20,886 143,822 1,596 1,319
Total Liabilities 506,698 511,892 3,365 3,685
Total Equity and Liabilities 1,251,948 1,100,138 194,594 195,873
The Group The Company
$'000 $'000


Note :
(6) Under the Companies (Amendment) Act 2005 which became effective on 30 J anuary 2006, the concepts of par value
and authorised capital were abolished and the amount in the share premium account as at 30 J anuary 2006 became
part of the Companys share capital.


1(b)(ii) Aggregate amount of groups borrowings and debt securities.

Amount repayable in one year or less, or on demand
Secured Unsecured Secured Unsecured
$1,597,000 - $128,499,000 -
As at 31.12.2005 As at 31.12.2006

Amount repayable after one year
Secured Unsecured Secured Unsecured
As at 31.12.2005 As at 31.12.2006
$485,299,000 - $367,572,000 -
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Details of any collateral

The $110 million bonds due J uly 2006, classified as current liabilities as at 31 December 2005, was refinanced in J anuary
2006 by the issuance of $110 million notes due J anuary 2011 and is now classified as non-current liabilities.

The borrowings by the subsidiaries are generally secured by the Groups investment and development properties and are
guaranteed by the Company.


1(c) A cash flow statement (for the group), together with a comparati ve statement for the corresponding period of the
immediately preceding financial year.


2006 2005
Operating Activities
Loss from operations before taxation (15,670) (9,076)
Adjustments for :
Share of results of associates 3,553 4,383
Amortisation of transaction cost of interest bearing loans and borrowings 762 671
Depreciation of fixed assets 448 428
Gain on disposals of fixed assets, net (5) (97)
Gain on disposals of other investments (44) (225)
Impairment loss on other investments - 591
Write-back of impairment loss on other assets (44) (43)
(Gain)/Loss on remeasurement of other investments (140) 378
Write-back of allowance for diminution in value of development properties (849) -
Interest income (149) (252)
Interest expenses 25,358 18,782
Operating profit before working capital changes 13,220 15,540
Changes in working capital :
Development properties 19,275 (8,738)
Trade and other receivables (1,289) (124)
Trade and other payables 3,522 516
Cash generated from operations 34,728 7,194
Income tax paid (88) (107)
Interest received 88 72
Income tax refund 9 58
Cash Flows from Operating Activities 34,737 7,217
Investing Activities
(Increase)/Decrease in investment properties (744) 50
Increase in other investments (253) (426)
Purchase of fixed assets (288) (270)
Proceeds from disposals of fixed assets 8 97
Proceeds from disposals of other investments 346 1,381
Decrease/(Increase) in associates 204 (400)
Cash Flows from Investing Activities (727) 432
Financing Activities
Interest paid (25,478) (19,583)
Dividend paid - (1,199)
Repayment of interest bearing loans and borrowings (14,188) (1,000)
Payment of finance lease rentals (145) (136)
Proceeds from interest bearing loans and borrowings 4,196 15,429
Cash Flows from Financing Activities (35,615) (6,489)
Net (Decrease)/Increase in Cash and Cash Equivalents (1,605) 1,160
Cash and cash equivalents at 1 J anuary 844 (317)
Effect of exchange rate changes on balances held in foreign currencies (1) 1
Cash and Cash Equivalents at 31 December (762) 844
Cash and Cash Equivalents at 31 December is represented by :
Cash at banks and in hand 703 967
Bank overdraft (secured) (1,465) (123)
(762) 844
The Group
$'000

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1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than
those arising from capitalisation issues and distributions to shareholders, together with a comparati ve statement for
the corresponding period of the immediately preceding financial year.

Capital
Share Share and Other Translation Revaluation
Capital Premium Reserves Reserves Reserves Total
The Group
At 31 December 2004, as previously reported 149,899 814 9,971 (21,175) 322,362 75,924 537,795
Effects of adopting FRS 21 - - - 70 - (79) (9)
Effects of adopting FRS 103 - - (7,600) (317) - 13,983 6,066
At 1 J anuary 2005, restated 149,899 814 2,371 (21,422) 322,362 89,828 543,852
Exchange differences on translation of financial - - - 903 - - 903
statements of foreign subsidiaries and associates
Exchange differences on translation of balances at - - - - 2,035 - 2,035
beginning of the year
Net surplus on revaluation - - - - 37,783 - 37,783
Share of reserves of associates - - 772 - 13,324 (186) 13,910
Net gains/(losses) recognised directly in equity - - 772 903 53,142 (186) 54,631
Net loss for the year - - - - - (9,038) (9,038)
Total recognised income and expense for the year - - 772 903 53,142 (9,224) 45,593
Dividend - - - - - (1,199) (1,199)
At 31 December 2005 149,899 814 3,143 (20,519) 375,504 79,405 588,246
At 1 J anuary 2006 149,899 814 3,143 (20,519) 375,504 79,405 588,246
Exchange differences on translation of financial - - - (3,012) - - (3,012)
statements of foreign subsidiaries and associates
Exchange differences on translation of balances at - - (65) - (9,260) - (9,325)
beginning of the year
Exchange differences on monetary items forming - - - (1,426) - - (1,426)
part of net investments in foreign subsidiaries
Transfer from share premium account to share 814 (814) - - - - -
capital upon implementation of the Companies
(Amendment) Act 2005
Net surplus on revaluation - - - - 185,183 185,183
Share of reserves of associates - - 21 - 1,663 - 1,684
Net gains/(losses) recognised directly in equity 814 (814) (44) (4,438) 177,586 - 173,104
Net loss for the year - - - - - (16,100) (16,100)
Total recognised income and expense for the year 814 (814) (44) (4,438) 177,586 (16,100) 157,004
At 31 December 2006 150,713 - 3,099 (24,957) 553,090 63,305 745,250
$'000
Retained
Profit

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Capital
Share Share and Other Translation Revaluation
Capital Premium Reserves Reserves Reserves Total
The Company
At 31 December 2004, as previously reported 149,899 814 - - - 40,491 191,204
Effect of adopting amendments to FRS 39 - - - - - 517 517
At 1 J anuary 2005, restated 149,899 814 - - - 41,008 191,721
Net profit for the year - - - - - 1,666 1,666
Total recognised income and expense for the year - - - - - 1,666 1,666
Dividend - - - - - (1,199) (1,199)
At 31 December 2005 149,899 814 - - - 41,475 192,188
At 31 December 2005, as previously reported 149,899 814 - - - 40,087 190,800
Effect of adopting amendments to FRS 39 - - - - - 1,388 1,388
At 1 J anuary 2006, restated 149,899 814 - - - 41,475 192,188
Transfer from share premium account to share 814 (814) - - - - -
capital upon implementation of the Companies
(Amendment) Act 2005
Net gains/(losses) recognised directly in equity 814 (814) - - - - -
Net loss for the year - - - - - (959) (959)
Total recognised income and expense for the year 814 (814) - - - (959) (959)
Dividend - - - - - - -
At 31 December 2006 150,713 - - - - 40,516 191,229
$'000
Retained
Profit


1(d)(ii) Details of any changes in the companys share capital arising from rights issue, bonus issue, share buy-backs,
exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as
consideration for acquisition or for any other purpose since the end of the previous period reported on. State also
the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the
current financial period reported on and as at the end of the corresponding period of the immediately preceding
financial year.

Nil.


2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice.

The figures have not been audited nor reviewed by the Companys auditors.


3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a
matter).

NA.


4. Whether the same accounting policies and methods of computation as in the issuers most recently audited annual
financial statements have been applied.

Except as disclosed in paragraph 5 below, the Group and the Company have applied the same accounting policies and
methods of computation in the financial statements for the current reporting year compared with the Groups and the
Companys audited financial statements for the year ended 31 December 2005.










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5. If there are any changes in the accounting policies and methods of computation, including any required by an
accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

The Group and the Company adopted various new or revised Financial Reporting Standards (FRS) and Interpretations which
became effective for the financial year beginning 1 J anuary 2006. The FRS that has a financial impact on the Company is
disclosed below :

FRS 39 Financial Instruments : Recognition and Measurement Financial Guarantee Contracts

The adoption of the amendments to FRS 39 has resulted in the Company measuring its intra-group financial guarantees at
fair value upon inception of the guarantees.

This change in accounting policy was recognised retrospectively in accordance with the transitional provisions of the
amendment to the FRS, and comparatives have been restated. This change has no impact to the Groups financial
statements.


6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period
of the immediately preceding financial year, after deducting any provision for preference dividends.
2006 2005
Loss per ordinary share of the Group after deducting any provision for
preference dividends :
(a) Based on the average number of ordinary shares on issue; and (2.69) cts (1.51) cts
(b) On a fully diluted basis (detailing any adjustments made to the earnings) (2.69) cts (1.51) cts
The Group

The loss per ordinary share was calculated based on the loss for the year of approximately $16,100,000
(2005 : $9,038,000) and the number of ordinary shares in issue of 599,595,180 (2005 : 599,595,180).

There are no dilutive potential ordinary shares in existence as at 31 December 2006 and 31 December 2005.


7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end
of the :

(a) current financial period reported on; and
(b) immediately preceding financial year.
2006 2005 2006 2005
Net asset value per ordinary share based on 124 cts 98 cts 32 cts 32 cts
issued share capital
The Group The Company


8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the groups
business. It must include a discussion of the following :

(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial
period reported on, including (where applicable) seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the
current financial period reported on.

The Group recorded an increase in revenue as a result of the recognition of revenue from sales of development properties.
In particular, approximately $23.1 million was recognised from its residential property known as ten@suffolk as temporary
occupation permit was obtained in March 2006.

Although revenue increased, the Group made a loss before its share of results of associates of approximately $12.1 million
as compared to a loss of approximately $4.7 million for 2005 due to the following :

(i) Cost of sales of development properties of approximately $23.5 million was included in 2006.

(ii) With the weakening of the Hong Kong dollar against the Singapore dollar, there was an exchange loss of approximately
$0.2 million as compared to an exchange gain of $0.4 million in 2005.

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(iii) With the collection of sales revenue from its development properties, the Groups borrowings decreased gradually in
2006 but finance costs still increase in tandem with the rising interest rates in 2006.

In line with the improved property market, there was an increase in value of the Groups investment and development
properties. This has resulted in an increase in total assets of the Group as at 31 December 2006 in spite of a decrease in
associates of approximately $16.7 million. The latter was principally due to the Groups share of loss for 2006 and the
exchange differences on translation as at 31 December 2006 due to the weakening of the Hong Kong dollar against the
Singapore dollar.

The decrease in development properties was mainly due to the recognition of sales of units which resulted in a transfer of
associated cost of development in the balance sheet to cost of sales in the profit and loss account.

The increase in net tangible assets was principally due to an increase in reserves resulting from the net surplus arising from
the revaluation of the Groups investment properties as of December 2006.


9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it
and the actual results.

NA.


10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry
in which the group operates and any known factors or events that may affect the group in the next reporting period
and the next 12 months.

The Group expects the buoyant property market to sustain in 2007 but the current interest rate environment and high
operating costs will continue to make the Groups operating environment challenging.


11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on ? None

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year ? None

(c) Date payable

NA.

(d) Books closure date

NA.


12. If no dividend has been declared/recommended, a statement to that effect.

No dividend has been declared nor recommended for the full year ended 31 December 2006.


















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PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the
issuers most recently audited annual financial statements, with comparati ve information for the immediatel y
preceding year.

Property Property Property Other
Business Segments Investment Development Management Operations Total
2006
Total revenue 37,178 25,248 730 79 63,235
Segment results 11,384 2,466 (92) (517) 13,241
Finance costs (23,007) (1,757) - (594) (25,358)
(12,117)
Share of results of associates (3,553)
Income tax expense (430)
Net loss for the year (16,100)
2005
Total revenue 37,122 399 896 312 38,729
Segment results 14,250 286 65 (512) 14,089
Finance costs (17,689) (629) - (464) (18,782)
(4,693)
Share of results of associates (4,383)
Income tax expense 38
Net loss for the year (9,038)
$'000
The Group


14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings
by the business or geographical segments.

Please refer to paragraph 8 above.


15. A breakdown of sales.

%
Increase/
2006 2005 (Decrease)
(a) Sales reported for first half year 33,907 19,616 73
(b) Operating loss after tax before deducting minority (9,058) (580) 1,462
interests reported for first half year
(c) Sales reported for second half year 29,328 19,113 53
(d) Operating loss after tax before deducting minority (7,042) (8,458) (17)
interests reported for second half year
The Group
$'000









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16. A breakdown of the total annual dividend (in dollar value) for the issuers latest full year and its previous full year.

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)
Latest Full Year ('000) Previous Full Year ('000)
Ordinary - -
Preference - -
Total : - -










BY ORDER OF THE BOARD

Koh Chay Tiang
Dorothy Ho
Company Secretaries
28 February 2007

























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