APPENDIX 2

Results Summary of The Hong Kong Jockey Club 2014/15

All figures in HK$ millions

(A) Business Figures

1a. Horse Racing – by Financial Year (1 July 2014 – 30 June 2015)

2014/15 / 2013/14 / % Change
Total Turnover* / 105,406 / 103,918 / +1.4%
Betting Duty / 12,001 / 12,012 / -0.1%
Club's Net Margin / 4,412 / 4,424 / -0.3 %

* 81 race meetings in 2014/15 vs 85 in 2013/14

1b. Simulcasts – by Financial Year (1 July 2014 – 30 June 2015) [included in 1a]

2014/15 / 2013/14 / % Change
Turnover** / 2,441 / 1,988 / +22.8%
Betting Duty / 321 / 265 / +21.1%
Club's Net Margin / 85 / 70 / +21.4%

** simulcast races 120 in 2014/15 vs 114 in 2013/14

1c. Horse Racing – by Racing Season

(14 September 2014 - 12 July 2015; 8 September 2013 – 12 July 2014)

2014/15 / 2013/14 / % Change
Total Turnover*** / 107,925 / 101,970 / +5.8%
Betting Duty / 12,300 / 11,783 / +4.4%
Club's Net Margin / 4,513 / 4,343 / +3.9%

*** 83 race meetings in both racing seasons

1d. Simulcasts– by Racing Season [included in 1c]

(14 September 2014 - 12 July 2015; 8 September 2013 – 12 July 2014)

2014/15 / 2013/14 / % Change
Turnover**** / 2,309 / 2,009 / +14.9%
Betting Duty / 303 / 267 / +13.3%
Club's Net Margin / 80 / 71 / +12.7%

**** simulcast races 111 in 2014/15 vs 116 in 2013/14

2. Football Betting – by Financial Year (1 July 2014 – 30 June 2015)

2014/15 / 2013/14 / % Change
Turnover / 78,249 / 62,197 / +25.8%
Betting Duty / 5,594 / 4,881 / +14.6%
Club's Net Margin / 5,594 / 4,881 / +14.6%

3. Mark Six Lottery – by Financial Year (1 July 2014 – 30 June 2015)

2014/15 / 2013/14 / % Change
Turnover / 7,780 / 7,910 / -1.6%
Lottery Duty / 1,945 / 1,977 / -1.6%
Payment to Lotteries Fund / 1,167 / 1,187 / -1.6%
Club's Commission / 467 / 475 / -1.6%


(B) Club's Contributions (by Financial Year)

1. Betting Duties and Profits Tax

2014/15 / 2013/14 / % Change
Racing Betting Duty / 12,001 / 12,012 / -0.1%
Football Betting Duty / 5,594 / 4,881 / +14.6%
Lottery Duty / 1,945 / 1,977 / -1.6%
Profits Tax / 509 / 713 / -28.6%
Total / 20,049 / 19,583 / +2.4%

2. Donations by The Hong Kong Jockey Club Charities Trust

2015/14 / 2013/14 / % Change
Total / 3,871 / 3,606 / +7.3%

(C) Impact of 2006 Betting Duty Reforms on Club and Government Revenues

(by Financial Year)

Total racing turnover / Club's net margin / Government's share
(betting duty)
2005/06 (pre-reform) / 59,032 / 3,207 / 7,806
2006/07 / 63,860 / 2,902 / 8,031
2007/08 / 66,791 / 3,105 / 8,178
2008/09 / 67,653 / 3,126 / 8,228
2009/10 / 71,647 / 3,230 / 8,538
2010/11 / 81,924 / 3,663 / 9,735
2011/12 / 84,019 / 3,709 / 9,905
2012/13 / 94,370 / 4,118 / 11,108
2013/14 / 103,918 / 4,424 / 12,012
2014/15 / 105,406 / 4,412 / 12,001
Overall growth since reforms / 78.6% / 37.6% / 53.7%