Dci Advisors Regulatory News (DCI)

30 September 2016

DOLPHIN CAPITAL INVESTORS LIMITED

("DCI" or "Dolphin" or the "Company"

and together with its subsidiaries the "Group")

Disposal of 49.75% stake in Aristo Developers

Half Year Results for the six months ended 30 June 2016

Trading Update

Highlights:

· On 29 September 2016 the Company signed a binding agreement to sell its 49.75% stake in Aristo Developers Ltd ("Aristo") to Mr. Theodoros Aristodemou for a €45 million cash consideration. This represents a 70% discount to the carrying value as at 31 December 2015 on a pro-forma basis reflecting Aristo's debt restructuring agreed with Bank of Cyprus. The €45 million cash consideration is payable in quarterly instalments over three years and bearing annual interest of 4% in the first year, increasing to 5% and 6% respectively for each of the ensuing two years.

· Arranged a new €7.5 million 18 month credit facility with a major financial institution, subject to definitive documentation, which on signing will create additional liquidity for general corporate purposes.

· Amanzoe performance is significantly ahead on a year-on-year basis, especially with respect to villa rental income.

· Total Group Net Asset Value ("NAV") as at 30 June 2016, as adjusted for the disposal of Aristo, was €355 million and €317 million before and after Deferred Tax Liabilities ("DTL") respectively. This represents a decrease of €190 million and €164 million, or 34.8% and 34.1%, respectively, against the year end 2015 figures.

· NAV reduction is mainly due to:

o the reduction in the carrying value of Aristo by €35 million from the debt restructuring agreement reached with Bank of Cyprus in June 2016 and half year operating losses, as well as a further €109 million write-down on Aristo's carrying amount to reflect the agreed €45 million sales price; and,

o Dolphin's regular operational, corporate, finance and management expenses, as well as the devaluation of the Americas properties in Euro terms due to the appreciation of the Euro against the US Dollar by c. 2%.

· No portfolio revaluation was undertaken during this period; the next full portfolio valuation will be conducted at 31 December 2016.

· Sterling NAV per share as at 30 June 2016 stood at 32p before DTL and 29p after DTL, a 26.8% and 26% decrease before and after DTL respectively compared to the 31 December 2015 figures. The decrease was mainly driven by the factors mentioned above, offset by a 12.3% appreciation of the Euro versus Sterling.

· The Company continues to have a significant asset base, after the sale of its shareholding in Aristo:

o Gross Assets of €700 million

o Total Debt of €215 million (€232 million as at 31 December 2015) with a Group total debt to total assets value ratio of 31% respectively. The remaining US$16.7 million of the 2016 Convertible Bonds, which matured on 31 March 2016, were repaid in full.

· Sue Farr joined the Board of Directors on 19 July 2016.

Commenting, Andrew Coppel, Non-Executive Chairman of Dolphin's Board of Directors said:

"We are delighted to have completed the disposal of our holding in Aristo Developers. The sale will significantly enhance the Group's liquidity and allow the Company the flexibility to deliver value for shareholders through the monetization of assets on a timely basis."

Miltos Kambourides, Founder of Dolphin and Managing Partner of Dolphin Capital Partners said:

"The sale of Aristo Developers is the first major step towards further asset realizations and focusing on the Company's core assets. We look forward to accelerating this process."

For further information, please contact:

A. Chairman's Statement

I am pleased to report Dolphin's interim financial results for the period ended 30 June 2016 and provide a trading update for the period.

The revenue for the six month period rose from €8.1 million to €15.9 million and the operating losses were reduced from €20.8 million to €11.3 million.

Following the Board's decision earlier this year to accelerate asset divestments and improve liquidity, the Company was able to achieve tangible results through the disposal of our 49.75% investment in Aristo.

The Aristo divestment, further details of which are set out in paragraph B.2.2. of the Investment Manager's Report below, will result in significant cash inflows for the Company over the next three years thereby allowing the Group to proceed with its value realization policy for the remaining portfolio from a position of financial strength. However, this disposal has also resulted in an impairment charge in these financial statements of €109 million, in addition to the €35 million charge following Aristo's debt restructuring agreement reached with Bank of Cyprus and Aristo's half year operating losses to 30 June 2016.

Whilst the agreed sale proceeds are significantly below the adjusted net asset value of DCI's interest in Aristo as at 30 June 2016, it should be emphasised that this figure essentially reflects the appraised value of the aggregate of Aristo assets, net of liabilities, in accordance with IFRS requirements. This carrying amount takes no account of the fact that Aristo has not adopted an asset disposal strategy that could generate dividends for DCI in the near future, nor of Aristo's annual overheads, financing expenses and potential further NAV reductions due to additional bank restructurings. Furthermore, it takes no account of the commercial reality that our shareholding represented an illiquid substantial minority position in Aristo.

On 19 July 2016, Sue Farr joined the Board, which now consists of six members. Sue is also a non-executive director at ACCSYS Technologies plc, British American Tobacco plc, Dairy Crest plc and Millennium & Copthorne plc, and has won wide recognition in the marketing sector and a number of awards.

The Board is aware of its commitment to convene a shareholders' meeting before 31 December 2016, so that shareholders have an opportunity to review the life of the Company and consider a resolution for its continuation and future strategy. The Board is in the process of formulating its proposal to Dolphin's shareholders and this will be announced in the near future.

We have made good progress to secure the Group's financial position and begin to realise value for shareholders. The Board and the Investment Manager will continue their efforts to increase working capital and accelerate shareholders' returns through the monetization of assets. We believe that further tangible results can be achieved in the short term.

Andrew M. Coppel CBE

Non-Executive Chairman

Dolphin Capital Investors

30 September 2016

B. Investment Manager's Report

B.1. Business Overview

During the first half of 2016 we continued the development of our Core Projects (ranging from villa sales initiatives and construction of sold villas to advancing zoning and permitting) and progressed a number of discussions to monetise the Group's portfolio assets and explore joint venture options. These have so far resulted in the sale of DCI's minority stake in Aristo while a number of other discussions remain ongoing.

Our recent actions can be summarised as follows:

· Sold Dolphin's 49.75% minority position in Aristo for a cash consideration of €45 million, full details of which are set out below, which will make a significant contribution to meeting the Group's overheads and operational expenses (including non-operating project interest costs) over the next three years.

· Realised continuously improving revenue and Net Operating Income ("NOI") in Amanzoe which is expected to exceed our 2015 results.

· Successfully managed the first year of Amanera operations through the Zika outbreak in the Caribbean, achieving higher Average Daily Rate ("ADR"), albeit at lower occupancy rates, than targeted.

· Signed additional sales and/or reservation agreements for the sale of Seafront villas in Kilada Hills and at La Vanta.

· Arranged a €7.5 million 18 month revolving credit facility with a major regional financing institution, subject to documentation, which, on signing, would enhance Dolphin's liquidity.

We continue to focus on the implementation of the Company's strategy to realise the value of our diverse asset portfolio in order to maximise cash returns for our shareholders, which include the sourcing of disposal or JV opportunities for our projects, and the further refinement of our sales and marketing strategy to increase the pace of villa sales.

We are confident that these efforts should result in the conclusion of further transactions in the near term.

B.2. Portfolio Review

B.2.1. CORE PROJECTS

· Amanzoe, Greece (www.amanzoe.com) 

- Amanzoe initiated operations for the 2016 season on 1 April 2016, as scheduled, with seven villas in the rental programme. Hotel performance is currently ahead of last year, with occupancy reaching 61.4% and an Average Daily Rate ("ADR") of €1,122 versus 56.5% and €1,116 recorded on the books in 2015, ie 9% and 1% higher respectively on a year-on-year basis.

- The Villa rental daily rates ranged from €4,800 to €25,000 and generated revenues that are 39% above budget for the period up to and including August 2016.

- During the summer season, several site visits took place with potential villa buyers, and a number of them are currently in negotiations which are expected to be concluded by the end of the year. Sothebys Real Estate was hired as a marketing and sales agent for the Amanzoe Villas on 1 April 2016 and has already contributed some sales leads.

- All construction works were suspended during the summer period so as not to disturb the smooth operations of the resort. Works are expected to resume in the fourth quarter of 2016, with the commencement of construction of three villas.

- Amanzoe continues to receive outstanding reviews. Victoria Hislop included the resort and its Villa 20 in her recent article in the Daily Mail and praised Amanzoe's beauty once again. The resort's architecture was also mentioned in The Evening Standard while the resort was voted as The Most Expensive Resort in Europe in the Mr & Mrs. Smith list. The resort's Villa 20 was also extensively featured in The Daily Telegraph's quarterly luxury supplement, Ultra travel, as well as in its Travel section of the Year. At the same time, the resort was featured in the UK Harper's Bazaar, the Russian online magazine Buro247.ru, the Brazilian Vogue, the Italian Glamour magazine, the Turkish In Style, the Horizon & Beyond publication of the Middle East and in the UK Country & Town House magazine.

· Amanera, Dominican Republic (www.amanera.com)

- The Amanera Golf Resort at Playa Grande was delivered as scheduled and formally opened for paying guests on 23 November 2015. The Amanera hotel achieved occupancy and average daily rates of 43.5% and US$1,549 respectively during the first eight months of 2016. ADR was above expectations but occupancy was lower than budget, primarily due to the Zika outbreak which affected the Caribbean region. Measures are being implemented, in conjunction with Aman, to improve occupancy and underlying profitability.

- The hotel closed on 26 August 2016 and will remain closed until 31 October 2016, the low season in the Caribbean, in order to implement a number of improvements that have been identified since opening.

- In order to increase the sales velocity of Amanera Villas, a key factor to the project's financial sustainability, the Company has adopted a more focused sales, marketing and PR plan. In March 2016, Bespoke Real Estate, a real estate brokerage and consulting boutique, was hired as a marketing and sales agent for the Amanera Villas and has generated a number of interested potential buyer leads who are expected to visit the resort from November 2016 onwards.

- The Amanera hotel continues to receive accolades from the world's top travel publications. It was featured on the cover of the March 2016 issue of Travel + Leisure Magazine as well as Vogue, Financial Times "How to Spend it", Wallpaper, Robb Report, New York Times and Conde Nast Traveller, with the last-mentioned featuring the resort at the top of their "Hot list" for the Caribbean. The golf course also continues to receive exceptional reviews from industry commentators and extensive coverage including articles in Golf Week, Golf Digest and Discover Golf.

· Kilada Hills Golf Resort, Greece

- Subsequent to the issuance of the presidential decree granting special zoning to the Kilada Hills Project in December 2015, the residential master plan remains under review as planned in the relevant ministries, with an expected approval prior to the end of 2016. Once approved, the freehold sale of lots will be permissible.

- A residential offering proposal for a set of 40 Founder Golf Lots has been prepared. It is expected that the interest generated from the founding programme will facilitate securing the external funding of the first phase of the project, including the Jack Nicklaus Signature Golf Course, the golf clubhouse, the beach club and relevant infrastructure works.

· Pearl Island ("Pearl Island" - www.pearlisland.com), Panama

- The project team is in the process of completing the Ritz Carlton Reserve detailed designs and value engineering. Commencement of construction is subject to securing US$33 million of third party equity capital. Debt financing of US$33 million has been arranged but not yet drawn down.

- In the meantime, development expenses and project overheads have been kept at a minimum necessary for the project to continue its operations.

- The first group of turn-key villas and condos in the Founder's Phase (which is owned by a regional investor group which is our local partner in the island) were delivered in December 2015, together with the already completed beach club, airstrip, service pier, and main island infrastructure, first phase of the marina and other common amenities in the Founder's Phase.

- The Founder's Phase, which has been sold by Dolphin on 5 September 2012, has already sold or reserved 109 residential units consisting of high-end lots, villas and condo apartments. Out of these units sold, the project has already delivered 36 lots connected to all utilities, together with a further 20 completed villas and condos and 28 marina berths / slips.

· Kea Resort, Greece

- The Company is advancing discussions with an international resort and real estate investor for a joint venture transaction involving an equity investment, required for the construction of the Kea resort, for a 50% shareholding stake in the project.

B.2.2. NON-CORE ASSETS

· Aristo (a 49.8% affiliate)

- The Company reached agreement on 29 September 2016 to divest its 49.75% shareholding in Aristo to an legal entity owned by Mr. Theodore Aristodemou and his family.

- The divestment will be effected by way of a sale of 49.75% of the shares in DCI Holdings Two Ltd by DCI Holdings One Ltd (a wholly owned subsidiary of DCI) for a total cash consideration of €45 million, payable in quarterly instalments over three years and bearing annual interest of 4% in the first year, increasing to 5% and 6% respectively for each of the ensuing two years. A €2 million discount to the total consideration will be granted if the full consideration is settled by 29 December 2016.

- The sold shares in DCI Holdings Two Ltd will be kept in escrow and transferred to Mr. Aristodemou in line with the collection of the consideration by the Company, apart from a percentage of c. 20% which will remain escrowed until 50% of the payment is received by the Company and c. 10% until the final settlement of the consideration. Potential dividend distributions corresponding to the shares kept on escrow will also remain escrowed. In the event that any payment becomes overdue for more than three months either party has the right to terminate the sales agreement, in which case all the shares kept in escrow together with any corresponding dividend distributions will be retained by Dolphin.

- Dolphin will also be entitled to a 25% share of any gross proceeds in excess of an implied company equity valuation of €100 million from the sale of any shares of Aristo by the Acquirer until the earlier of six months from the settlement of the full consideration (to the extent such settlement occurs by 29 December 2016) and the second anniversary from the transaction.

- DCI will continue to be entitled to one seat on the Board of Aristo as long as a minimum of a 10% holding is retained, as well as keeping certain minority protection rights.

- As at 31 December 2015, DCI's interest in Aristo was carried in DCI's accounts at €189 million. Following the completion of the restructuring arrangement with Bank of Cyprus earlier this year and Aristo's half year losses, this was reduced to €154 million. The divestment resulted in a further impairment charge of €109 million in DCI's financial statements for 30 June 2016, with Aristo now recorded at its recoverable amount of €45 million.

- Aristo's sales significantly increased during the six month period compared to the respective period in 2015, however the Company incurred operating losses. 

· Nikki Beach, Porto Heli (a 25% DCI affiliate)

- The operations improved significantly during 2016 compared to 2015. The expected occupancy for the 2016 operational period is 55% (163 days) compared to 48% for 2015 (169 days), with a net ADR up more than 35% expected at €250 vs €183 last season.

- At the same time there was a major improvement on the cost side with total expenses down c. 25%.

· Sitia Bay

- As announced on 30 June 2016, Dolphin has signed an MoU for the sale of its 78% stake in Sitia Bay for €17.2 million, which was subject to receipt of an initial deposit from the purchaser. The initial deposit was not received, and Dolphin is therefore progressing discussions with other potential purchasers.

· LaVanta

- Two additional villas were sold, and one reservation agreement was signed. Upon conversion of the reservation agreement into final contract form, the first phase of LaVanta will be fully sold.

C. Market Dynamics

The key points with regard to the tourism industry evolution in Dolphin's basic markets are as follows:

- In Greece, for the period between January and July 2016, international arrivals rose by 6.4% compared to the same period last year. The Greek Tourism Confederation noted that the surge in last-minute bookings means that there is a strong likelihood that the target set at the start of the year, for an increase of 6% in arrivals over the course of the whole year, can be achieved.

- In Cyprus, for the period January - July 2016 tourist arrivals totalled 1.74 million compared to 1.45 million in the corresponding period of 2015, recording an increase of 20% as reported by the country's Statistical Service. The most recent estimate for 2016 tourist arrivals is 3.1 million compared with 2.65 million in 2015 and 2.7 million in 2001 which was the last record year.

- The Dominican Republic continues to be the Caribbean's largest tourist destination. The economy grew robustly in the first half of 2016 and the tourism sector had a strong performance. The period from January to July 2016 saw 6.9% growth in tourist arrivals compared to 2015, reaching over 3.6 million visitors according to the Dominican Republic's Central Bank. The country is projected to reach 6 million total visitors in 2016, thus meeting the targeted 7% growth.

- Despite the release of the Panama Papers and other challenges, the Panamanian economy is gaining traction and GDP is expected to increase by 5.9% in 2016, the highest rate in the region. The opening of the Canal expansion in late June and the income it will generate will provide further strength to the economy. Over the course of January through June 2016, the total number of visitors was approximately 1.17 million, indicating a 1% increase compared to 2015, based on the data provided by the National Institute of Statistic and Census. Tourist expenditure was US$2.4 billion, representing an increase of 4.4%, compared to the same period of 2015.

D. Group Assets

A summary of Dolphin's current investments is presented below. As at 30 June 2016, the net invested amount, excluding DCI's interest in Aristo, stood at €412* million.

*Residual investment cost, including amounts paid in shares but excluding Dolphin's 49.75% shareholding in Aristo which has been sold on 29 September 2016.

** Further details on debt maturities are set out under note 23 of the financial statements.

*** Excluding the €45 million Aristo disposal receivable.

**** Group total debt to total gross asset value ratio is 26%.

A breakdown of Dolphin's portfolio for certain key metrics is provided below.

* Residual investment cost, including amounts paid in shares.

** Excluding Dolphin's 49.75% shareholding in Aristo which has been sold.

* Residual investment cost, including amounts paid in shares. ** Excluding Dolphin's 49.75% shareholding in Aristo which has been sold.

E. Future Objectives

The Company's main objectives for the remainder of 2016 are to:

1. Continue the monetization of additional Core and Non-Core portfolio assets;

2. Secure third-party funding for the development of the remaining Core Assets through sales, joint venture and financing transactions in order to increase their realization potential and value;

3. Increase sales velocity of villas;

4. Oversee the implementation of the Aristo transaction;

5. Complete the €7.5 million 18 month revolving loan facility to ensure that the Group has continued liquidity to meet its ongoing obligations over the medium term; and,

6. Where appropriate, advance the zoning, permitting, design and branding of Core and Non-Core Assets to improve their sales potential and actively pursue their divestment.

F. Financial Position for the first half of 2016

F.1. Condensed consolidated interim statement of profit or loss and other comprehensive income for the H1 2016

· Financial Results

Loss after tax for the period ended 30 June 2016 attributable to owners of the Company amounted to €162 million compared to €36 million loss for the six-month period ended 30 June 2015. Loss per share was €0.18 and €0.05 for the six-month period ended 30 June 2016 and 30 June 2015 respectively.

.

The variation in NAV was mainly due to the reduction in the carrying value of Aristo by €35 million from the debt restructuring agreement reached with Bank of Cyprus in June 2016 and half year operating losses, as well as a further €109 million write-down of Aristo's carrying amount to reflect the agreed €45 million sales price. Further analysis of individual revenue and expense items is provided below.

· Revenue

Revenues of €15.9 million (H1 2015: €8.1 million), were derived from the following sources:

· Operating expenses

Operating expenses were €14.1 million (H1 2015: €13.0 million). The respective operating expenses are analysed in the following table:

The increase in Hotel Operations and Personnel expenses over the period is due to the opening of Amanera at the end of 2015. The expense relating to the sales of trading and investment properties, is attributable to the delivery of one Amanera villa and one Amanzoe plot to their respective buyers, which triggered the recognition of the corresponding revenue and expense (the carrying value of these properties) in DCI's financial statements.

· Professional Fees

The majority of professional fees related to the design, appraisal, project management and development costs incurred by the Company on its property interests, which are expensed to profit or loss as incurred and not capitalized. The charge for the period was €4.1million (H1 2015: €3.7 million) and comprises the following:

· Administrative and other expenses

The administrative and other expenses amounted to €2.0 million (H1 2015: €3.5 million) and are analysed as follows:

*€1.9 million relates to Zoniro (Greece) S.A. which was divested during 2015.

F.2. Condensed consolidated interim statement of financial position as at 30 June 2016

 The reported NAV as at 30 June 2016 is presented below:

___________

Notes:

1. Euro/GBP rate 0.82718 as at 30 June 2016 and 0.73693 as at 31 December 2015.

2. Euro/USD rate 1.1102 as at 30 June 2016 and 1.0887 as at 31 December 2015.

3. NAV per share has been calculated on the basis of 904,626,856 issued shares as at 30 June 2016 and as at 31 December 2015.

Total Group NAV as at 30 June 2016 was €355 million and €317 million before and after DTL respectively. This represents a decrease of €190 million (34.8%) and €164 million (34.1%), respectively, from the respective 31 December 2015 figures. As no valuation of the Company's portfolio took place as at 30 June 2016, the NAV reduction is mainly due to the reduction in value of Aristo whose fair value has been adjusted to reflect the agreed €45 million sales price, Dolphin's regular operational, corporate, finance and management expenses, as well as the devaluation of the Americas properties in Euro terms due to the appreciation of the Euro against the US Dollar by c. 2%.

Sterling NAV per share as at 30 June 2016 was 32p before DTL and 29p after DTL and decreased by 26.8 % and 26.0 %, before and after DTL respectively compared to the 31 December 2015 figures. In addition to the factors mentioned above, the NAV per share was affected by a 12.3% appreciation of Euro versus the Sterling.

The Company's consolidated assets include €621 million of real estate assets (of which, €66 million are classified as assets held for sale), €45 million of investments in equity accounted investees (to reflect the agreed sale price of the Company's 49.8% interest in Aristo), €18 million of other assets (namely trade and other receivables and available for sale financial assets) and €11 million in cash.

The €621 million figure represents the fair market valuation of Dolphin's real estate portfolio for both freehold and long leasehold interests out of which the €66 million figure represents the appraised value of Sitia Bay, Livka Bay, LaVanta and Nikki Beach Resort which are currently classified as assets available for sale. The €15 million of trade and other receivables comprise mainly €3.4 million due from villa buyers and €3.3 million of VAT receivables. Available- for- sale financial assets represents the Company's investment in Itacare Investors Ltd.

The Company's consolidated liabilities (excluding DTL and €8 million DTL classified as liabilities held for sale) total €311 million and mainly comprise €218 million of interest-bearing loans and finance lease liabilities (of which, €8 million are classified as liabilities held for sale), out of which €50 million and US$9.17 million Convertible Bonds are held at Company level. The remaining loans are held by Group subsidiaries and are non-recourse to Dolphin (except for the Playa Grande construction loan which is guaranteed by the Company). The €92 million of trade and other payables and deferred revenue comprise mainly €26 million of option contracts to acquire land in the Company's Lavender Bay project, €7 million deferred income from government grants and €24 million of client advances from villa sales.

 F.3. Condensed consolidated interim statement of changes in equity for the period ended 30 June 2016

F.4. Consolidated statement of cash flows for the period ended 30 June 2016

Condensed consolidated interim statement of profit or loss and other comprehensive income

For the six-month period ended 30 June 2016

Condensed consolidated interim statement of financial position

As at 30 June 2016

Condensed consolidated interim statement of changes in equity

For the six-month period ended 30 June 2016

Condensed consolidated interim statement of cash flows

For the six-month period ended 30 June 2016

Notes to the condensed consolidated interim financial statements

1. REPORTING ENTITY

Dolphin Capital Investors Limited (the 'Company') was incorporated and registered in the British Virgin Islands ('BVIs') on 7 June 2005. The Company is a real estate investment company focused on the early-stage, large-scale leisure-integrated residential resorts in south-east Europe and the Americas, and managed by Dolphin Capital Partners Limited (the 'Investment Manager'), an independent private equity management firm that specialises in real estate investments, primarily in south-east Europe. The shares of the Company were admitted to trading on the AIM market of the London Stock Exchange ('AIM') on 8 December 2005.

The condensed consolidated interim financial statements of the Company as at and for the six-month period ended 30 June 2016 comprise the financial statements of the Company and its subsidiaries (together referred to as the 'Group') and the Group's interests in associates.

The condensed consolidated interim financial statements of the Group as at and for the six-month period ended 30 June 2016 are available at www.dolphinci.com.

2. STATEMENT OF COMPLIANCE

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2015. They are presented in euro (€), rounded to the nearest thousand.

These condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 29 September 2016.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2015.

4. ESTIMATES

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2015.

5. PRINCIPAL SUBSIDIARIES

As at 30 June 2016, the Group's most significant subsidiaries were the following:

The above shareholding interest percentages are rounded to the nearest integer.

As at 30 June 2016 and 31 December 2015, all or part of the shares held by the Company in some of its subsidiaries are pledged as a security for loans.

6. revenue

7. OPERATING EXPENSES

Personnel expenses