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(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Stock Code: 0440)
ANNOUNCEMENT OF 2007 INTERIM RESULTS

The Directors of Dah Sing Financial Holdings Limited (the “Company”) are pleased to present the interim
results and condensed consolidated financial statements of the Company and its subsidiaries (collectively the
“Group”) for the six months ended 30 June 2007. The unaudited profit attributable to shareholders after minority
interests was HK$664.2 million for the six months ended 30 June 2007.
UNAUDITED INTERIM FINANCIAL STATEMENTS

The unaudited 2007 interim condensed consolidated financial statements of the Group have been prepared in
accordance with Hong Kong Accounting Standard No. 34 “Interim Financial Reporting” issued by the Hong
Kong Institute of Certified Public Accountants.
UNAUDITED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June
Restated
HK$’000 Note 2007 2006 Variance
%
Interest income 2,856,268 2,499,747
Interest expense (1,770,206) (1,474,783)
Net interest income 3 1,086,062 1,024,964 6.0
Fee and commission income 351,371 295,176
Fee and commission expense (47,949) (40,027)
Net fee and commission income 4 303,422 255,149 18.9
Net trading income/(loss) 5 143,225 (13,204)
Net insurance premium income
and other income 819,564 325,272
Other operating income 6 29,518 38,119
Operating income 2,381,791 1,630,300 46.1
Net insurance claims and movement in
liabilities to policyholders (736,035) (207,219)
Total operating income net of insurance claims 1,645,756 1,423,081 15.6
Operating expenses 7 (706,840) (612,753) 15.4

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UNAUDITED CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June
Restated
HK$’000 Note 2007 2006 Variance
%
Operating profit before impairment losses
on loans and advances 938,916 810,328 15.9
Impairment losses on loans and advances 8 (87,854) (75,315) 16.6
Operating profit before gains on certain
investments and fixed assets 851,062 735,013 15.8
Net gain/(loss) on disposal of fixed assets 452 (9)
Net gain on disposal of interests in subsidiaries 9 – 189,443
Net gain on disposal of available-for-sale securities 97,785 64,536
Share of results of jointly controlled entities 4,339 2,675
Share of results of associates (7,717) (9,465)
Reversal of impairment losses on
available-for-sale securities – 25,891
Profit before income tax 945,921 1,008,084 – 6.2
Income tax expense 10 (123,878) (138,928)
Profit for the period 822,043 869,156
Profit attributable to minority interests (157,864) (140,846)
Profit attributable to shareholders
of the Company 11 664,179 728,310 – 8.8
Dividend 187,566 187,566
Earnings per share 12
Basic HK$2.66 HK$2.91
Diluted HK$2.65 HK$2.91
Dividends per share
Interim dividend HK$0.75 HK$0.75

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UNAUDITED CONSOLIDATED BALANCE SHEET

As at As at
HK$’000 Note 30 June 2007 31 Dec. 2006
ASSETS

Cash and balances with banks and
other financial institutions 6,134,816 7,440,296
Placements with banks maturing between
one and twelve months 1,622,080 853,327
Trading securities 12,061,816 9,113,785
Financial assets at fair value through profit or loss 1,266,015 1,276,671
Derivative financial instruments 13 803,876 374,317
Advances and other accounts 14 60,583,049 52,029,818
Available-for-sale securities 34,913,283 33,336,794
Held-to-maturity securities 339,010 458,395
Investments in associates 49,865 57,647
Investments in jointly controlled entities 41,531 37,192
Goodwill 950,992 950,992
Intangible assets 193,976 208,238
Premises and other fixed assets 1,586,468 1,597,491
Investment properties 500,235 484,465
Value of in-force long-term life assurance business 846,445 810,778
Current income tax assets 14,061 14,414
Deferred income tax assets 416 3,377
Total assets 121,907,934 109,047,997
LIABILITIES

Deposits from banks 2,607,622 1,678,259
Derivative financial instruments 13 560,483 323,809
Trading liabilities 8,469,893 6,526,233
Deposits from customers designated at
fair value through profit or loss 3,706,712 3,393,048
Deposits from customers 65,966,319 63,595,931
Certificates of deposit issued 10,064,051 8,768,472
Issued debt securities 2,309,668 2,299,574
Subordinated notes 5,004,716 3,480,127
Other accounts and accruals 7,410,964 4,051,157
Liabilities to policyholders under insurance contracts 2,782,567 2,286,088
Current income tax liabilities 172,533 91,498
Deferred income tax liabilities 146,451 144,256
Total liabilities 109,201,979 96,638,452
EQUITY

Minority interests 2,412,975 2,364,803
Equity attributable to the Company’s shareholders
Share capital 500,176 500,176
Retained earnings 7,509,582 7,032,969
Other reserves 15 2,095,656 2,111,456
Proposed dividend 187,566 400,141
Shareholders’ funds 10,292,980 10,044,742
Total equity 12,705,955 12,409,545
Total equity and liabilities 121,907,934 109,047,997

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2007
Attributable to the Shareholders of the Company
Share Share Other Retained Minority Total
HK$’000 capital premium reserves earnings interests equity
Balance at 1 January 2007 500,176 984,286 1,127,170 7,433,110 2,364,803 12,409,545
Fair value gains on available-for-sale securities – – 62,963 – 15,621 78,584
Disposal of available-for-sale securities – – (77,405) – (20,380) (97,785)
Deferred tax liabilities recognised on
fair value gains on and disposal of
available-for-sale securities – – (1,620) – (69) (1,689)
Exchange differences arising on translation
of the financial statements of foreign entities – – 262 – 187 449
Net expense recognised directly in equity – – (15,800) – (4,641) (20,441)
Profit for the period – – – 664,179 157,864 822,043
Total recognised (expense)/income for
the six months ended 30 June 2007 – – (15,800) 664,179 153,223 801,602
Dividend paid to minority
shareholders of subsidiaries ––––(105,051) (105,051)
2006 final dividend – – – (400,141) – (400,141)
– – – (400,141) (105,051) (505,192)
Balance at 30 June 2007 500,176 984,286 1,111,370 7,697,148 2,412,975 12,705,955
Six months ended 30 June
2007 2006

Proposed interim dividend included in retained earnings 187,566 187,566

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 30 June 2007
Attributable to the Shareholders of the Company
Share Share Other Retained Minority Total
HK$’000 capital premium reserves earnings interests equity
Balance at 1 January 2006 500,176 984,286 1,048,202 6,563,670 1,920,202 11,016,536
Fair value losses on available-for-sale securities – – (73,036) – (27,082) (100,118)
Disposal of available-for-sale securities – – (48,896) – (15,640) (64,536)
Deferred tax liabilities released on
fair value losses on and disposal of
available-for-sale securities – – 20,953 – 7,007 27,960
Exchange differences arising on translation
of the financial statements of a foreign subsidiary – – 65 – 22 87
Net expense recognised directly in equity – – (100,914) – (35,693) (136,607)
Profit for the period – – – 728,310 140,846 869,156
Total recognised (expense)/income for the
six months ended 30 June 2006 – – (100,914) 728,310 105,153 732,549
Disposal of interests in subsidiaries ––––316,630 316,630
Dividend paid to minority
shareholders of subsidiaries ––––(8,710)(8,710)
2005 final dividend – – – (340,120) – (340,120)
– – (100,914) 388,190 333,073 620,349
Balance at 30 June 2006 500,176 984,286 947,288 6,951,860 2,253,275 11,636,885

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UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June
HK$’000 2007 2006
Net cash from/(used in) operating activities 465,282 (2,702,675)
Cash flows from investing activities
Purchase of fixed assets (32,661) (13,207)
Purchase of investment properties (15,771) (20,059)
Proceeds from disposal of fixed assets 482 –
Disposal of interests in subsidiaries
(net of cash and cash equivalents disposed of) – 500,122
Net cash (used in)/from investing activities (47,950) 466,856
Cash flows from financing activities
Certificates of deposit issued 1,869,541 2,038,761
Certificates of deposit redeemed (596,661) (1,306,741)
Subordinated notes issued 1,562,570 1,162,210
Subordinated notes redeemed – (970,069)
Dividends paid on ordinary shares (400,141) (340,120)
Dividends paid to minority shareholders of subsidiaries (105,051) (88,710)
Net cash from financing activities 2,330,258 495,331
Net increase/(decrease) in cash and cash equivalents 2,747,590 (1,740,488)
Cash and cash equivalents at beginning of the period 11,970,929 13,559,222
Cash and cash equivalents at end of the period 14,718,519 11,818,734
Analysis of the balance of cash and cash equivalents:
Cash and balances with banks and other financial institutions 1,866,054 1,629,087
Money at call and short notice 4,268,763 4,833,863
Treasury bills with original maturity within three months 6,961,622 4,743,267
Placement with banks with original maturity within three months 1,622,080 1,125,051
Deposits and balances of banks with original maturity
within three months – (512,534)
14,718,519 11,818,734

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Note:
1. GENERAL INFORMATION

Dah Sing Financial Holdings Limited (the “Company”) and its subsidiaries (together the “Group”) provides banking,
insurance, financial and other related services in Hong Kong, Macau, and the People’s Republic of China.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

With effect from 1 January 2007, interest income or expense arising from trading assets and liabilities, financial
instruments designated at fair value through profit or loss, and interest rate derivatives not held for trading purposes
are reported under “Interest income” and “Interest expense” instead of “Net trading (loss)/income” in the previous
reporting periods. Comparative figures have been restated to conform with the current period’s presentation. This
revised classification has been made mainly to match interest expense on financial liabilities designated at fair
value through profit or loss with the interest income and expense of the interest rate derivatives entered to hedge
these liabilities.
With the exception of the restatement described above, the accounting policies and methods of computation used
in the preparation of the 2007 interim financial statements are consistent with those used and described in the
Group’s annual audited financial statements for the year ended 31 December 2006. The Group has not early
adopted Hong Kong Financial Reporting Standard No. 7 “Financial Instruments: Disclosure” and the Amendment
to Hong Kong Accounting Standard No. 1 “Presentation of Financial Statements – Capital disclosures” in its
2007 interim financial statements. The Group has assessed that the adoption of these new standards will result in
more qualitative and quantitative disclosures primarily related to fair value measurement and risk management
but they will have no effect on the Group’s results of operations or financial position.
The interim condensed consolidated financial statements are presented in thousands of Hong Kong dollars
(HK$’000), unless otherwise stated.

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3. NET INTEREST INCOME

For the six months ended 30 June
Restated
2007 2006

Interest income arising from:
Cash and balances with banks and other financial institutions 148,474 220,269
Debt securities held 955,145 711,708
Advances and other accounts 1,751,272 1,565,165
Others 1,377 2,605
2,856,268 2,499,747

Interest expense arising from:
Deposits from banks/Deposits from customers 1,299,805 1,121,939
Certificates of deposit issued 214,027 171,175
Issued debt securities 66,642 58,868
Subordinated notes 147,995 82,949
Others 41,737 39,852
1,770,206 1,474,783

Included within interest income:
Interest income on financial assets
not designated at fair value through profit or loss 2,763,928 2,409,479
Interest income on impaired loans 2,716 1,925
Included within interest expenses:
Interest expenses on financial liabilities not designated at
fair value through profit or loss 1,496,245 1,282,418

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4. NET FEE AND COMMISSION INCOME

For the six months ended 30 June
2007 2006

Fee and commission income
Credit related fees and commissions 29,245 31,256
Trade finance 31,077 31,729
Credit card 97,054 91,042
Securities brokerage and investment services 57,991 33,387
Insurance distribution and others 26,790 22,165
Retail investment funds and fiduciary services 71,348 59,126
Other fees 37,866 26,471
351,371 295,176

Fee and commission expense
Handling fees and commission paid 41,862 33,994
Other fees paid 6,087 6,033
47,949 40,027
303,422 255,149

5. NET TRADING INCOME/(LOSS)
For the six months ended 30 June
Restated
2007 2006

Dividend income from trading securities
– listed investments 11,302 7,101
– unlisted investments – 2,808
Net gain arising from dealing in foreign currencies 54,230 54,356
Net gain/(loss) from trading securities 77,539 (32,830)
Net gain/(loss) from derivatives entered into for trading purpose 19,680 (3,352)
162,751 28,083

Net loss arising from financial instruments designated
at fair value through profit or loss (19,526) (41,287)
143,225 (13,204)

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6. OTHER OPERATING INCOME

For the six months ended 30 June
2007 2006

Dividend income from investments in available-for-sale securities
– listed investments 5,512 1,260
– unlisted investments 2,988 20,995
Gross rental income from investment properties 9,336 8,073
Other rental income 3,458 3,318
Others 8,224 4,473
29,518 38,119
7. OPERATING EXPENSES

For the six months ended 30 June
2007 2006

Staff costs (including directors’ remuneration) 412,348 339,250
Premises and other fixed assets expenses, excluding depreciation 75,405 62,191
Depreciation 43,654 44,514
Advertising costs 45,183 39,652
Amortisation of intangible assets 14,262 18,924
Others 115,988 108,222
706,840 612,753
8. IMPAIRMENT LOSSES ON LOANS AND ADVANCES

For the six months ended 30 June
2007 2006

Net charge of impairment losses on loans and advances
– Individually assessed 27,520 41,084
– Collectively assessed 60,334 34,231
87,854 75,315

Of which:
– new and additional 139,959 128,817
– releases (9,064) –
– recoveries (43,041) (53,502)
87,854 75,315

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9. NET GAIN ON DISPOSAL OF INTERESTS IN SUBSIDIARIES

For the six months ended 30 June
2007 2006

Net gain on disposal of interests in subsidiaries – 189,443
The net gain on disposal of interests in subsidiaries in 2006 mainly arose from the Company’s placing of 3.6%
interest in Dah Sing Banking Group Limited (“DSBG”) to increase DSBG’s public float to 25.1%.
10. INCOME TAX EXPENSE

Hong Kong profits tax has been provided at the rate of 17.5% (2006: 17.5%) on the estimated assessable profit for
the period. Taxation on overseas profits has been calculated on the estimated assessable profit for the period at the
rates of taxation prevailing in the countries in which the Group operates.
Deferred taxation is calculated in full on temporary differences under the liability method using a taxation rate of
17.5% (2006: 17.5%).
For the six months ended 30 June
2007 2006

Current income tax
– Hong Kong profits tax 108,608 107,428
– Overseas taxation 11,804 7,936
Deferred income tax
– relating to the origination and reversal of timing differences – 23,564
– utilisation of tax losses 3,466 –
123,878 138,928
11. PROFIT ATTRIBUTABLE TO SHAREHOLDERS

The normalised profit attributable to shareholders for the six months ended 30 June 2006, excluding HK$189.4
million profit on disposal of interests in subsidiaries, was HK$538.9 million.
This attributable profit for the six months ended 30 June 2007 represents an increase of 23.3% from the normalised
attributable profit in 2006.

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12. BASIC AND DILUTED EARNINGS PER SHARE

The calculation of basic earnings per share is based on earnings of HK$664,179,000 (2006: HK$728,310,000)
and the weighted average number of 250,088,234 (2006: 250,088,234) shares in issue during the period.
The calculation of diluted earnings per share is based on earnings of HK$664,179,000 (2006: HK$728,310,000)
and the weighted average number of 250,667,582 (2006: 250,336,842) shares in issue during the period after
adjusting for the effect of all dilutive potential ordinary shares as shown below:
Number of shares 2007 2006
Weighted average number of ordinary shares as at 30 June 250,088,234 250,088,234
Adjustments for share options 579,348 248,608
Weighted average number of ordinary shares for diluted
earnings per share as at 30 June 250,667,582 250,336,842
Basic and fully diluted earnings per share for the six months ended 30 June 2007 were HK$2.66 and HK$2.65
which are higher than the normalised basic and diluted earnings per share in the same period last year (HK$2.15)
if the HK$189,443,000 net gain on the disposal of interests in subsidiaries in 2006 was excluded.

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13. DERIVATIVE FINANCIAL INSTRUMENTS

The notional principal amounts of outstanding derivatives contracts and their fair values were as follows:
As at 30 Jun 2007 As at 31 Dec 2006
Contract/ Contract/
notional Fair values notional Fair values
amount Assets Liabilities amount Assets Liabilities
1) Derivatives held for trading
a) Foreign exchange derivatives
Forward and future contracts 66,191,362 182,535 197,631 53,347,607 134,544 57,367
Currency swaps 1,139,355 86,937 22,348 1,370,700 45,470 27,559
Currency options purchased
and written 1,023,434 1,559 1,559 545,816 957 957
b) Interest rate derivatives
Interest rate swaps 31,310,275 69,844 224,058 20,733,671 43,875 127,636
Interest rate options purchased
and written 50,643,612 1,781 1,814 53,085,262 3,489 3,789
c) Equity derivatives
Equity options purchased
and written 97,050 587 587 125,749 1,719 1,701
d) Credit derivatives
Credit default swaps 703,620 3,114 834 1,088,913 6,570 1,322
Total derivatives held for trading 151,108,708 346,357 448,831 130,297,718 236,624 220,331
2) Derivatives held for hedging
a) Derivatives designated
as fair value hedges
Interest rate swaps 15,918,981 457,519 111,652 10,684,881 137,693 103,478
Total derivatives held for hedging 15,918,981 457,519 111,652 10,684,881 137,693 103,478
Total recognised derivative
financial instruments 167,027,689 803,876 560,483 140,982,599 374,317 323,809

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As at 30 June 2007, the credit risk weighted amounts of the above off-balance sheet exposures (including credit
default swaps) calculated under Basel II basis and without taking into account the effect of bilateral netting
arrangements that the Group entered into, are as follows:
As at As at
30 Jun 2007 31 Dec 2006
Derivatives
– Exchange rate contracts 368,412 151,477
– Interest rate contracts 337,128 247,460
– Equity contracts 3,009 2,533
– Other contracts 3,435 –
711,984 401,470

As at 31 December 2006, the credit risk weighted amount of credit default swaps calculated under Basel I basis
amounting to HK$855,575,000 is included in the total credit risk weighted amount of contingent liabilities and
commitments in Note 16.
14. ADVANCES AND OTHER ACCOUNTS

As at As at
30 Jun 2007 31 Dec 2006
Gross advances to customers 56,244,648 49,908,688
Gross advances to banks and other financial institutions 153,307 155,102
Trade bills 853,433 694,604
Accounts receivable on sale of investments in securities 1,504,592 300
Other assets 2,185,347 1,626,221
Gross advances and other accounts 60,941,327 52,384,915
Less: impairment allowances
– Individually assessed (136,782) (136,746)
– Collectively assessed (221,496) (218,351)
(358,278) (355,097)
Advances and other accounts 60,583,049 52,029,818

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(a) Gross advances to customers by industry sector classified according to the usage of loans and analysed by
percentage covered by collateral
As at 30 Jun 2007 As at 31 Dec 2006
% of gross % of gross
advances advances
Outstanding covered Outstanding covered
balance by collateral Balance by collateral
Loans for use in Hong Kong
Industrial, commercial and financial
– Property development 422,178 99.6 409,887 99.9
– Property investment 7,698,075 90.9 6,107,283 94.6
– Financial concerns 454,294 75.6 424,368 82.6
– Stockbrokers 71,882 38.8 49,845 38.2
– Wholesale and retail trade 1,071,147 87.0 1,086,361 87.5
– Manufacturing 1,300,005 70.3 1,334,677 74.9
– Transport and transport equipment 3,878,237 92.5 3,563,617 91.2
– Recreational activities 61,512 21.9 49,086 2.4
– Information technology 36,237 2.9 36,087 4.0
– Others 1,940,883 80.9 1,325,409 82.9
16,934,450 87.5 14,386,620 89.4

Individuals
– Loans for the purchase of flats in
Home Ownership Scheme,
Private Sector Participation
Scheme and Tenants Purchase
Scheme 1,843,010 99.7 1,850,462 99.7
– Loans for purchase of other
residential properties 11,553,318 99.7 10,917,179 99.5
– Credit card advances 3,221,049 – 3,154,851 –
– Others 6,728,853 50.9 5,614,419 53.7
23,346,230 71.9 21,536,911 73.0

Loans for use in Hong Kong 40,280,680 78.4 35,923,531 79.6
Trade finance 4,614,828 50.9 4,385,560 45.5
Loans for use outside Hong Kong 11,349,140 74.8 9,599,597 70.4
56,244,648 75.4 49,908,688 74.8

— 16 —
For each industry sector reported above with loan balance constituting 10% or more of the total balance of advances
to customers, the attributable amount of impaired loans, overdue loans, and individually and collectively assessed
loan impairment allowances are as follows:
As at 30 Jun 2007
Gross
advances Individually Collectively
overdue for assessed assessed
Outstanding Impaired over 3 impairment impairment
balance loans months allowances allowances
Loans for use in Hong Kong
Industrial, commercial and financial
– Property investment 7,698,075 – 1,122 – 12,627
Individuals
– Loans for purchase of other
residential properties 11,553,318 3,193 14,667 1,366 5,852
As at 31 Dec 2006
Gross
advances Individually Collectively
overdue for assessed assessed
Outstanding Impaired over 3 impairment impairment
balance loans months allowances allowances
Loans for use in Hong Kong
Industrial, commercial and financial
– Property investment 6,107,283 6,590 8,105 2,214 12,672
Individuals
– Loans for purchase of other
residential properties 10,917,179 10,320 23,694 3,739 11,854

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(b) Non-bank Mainland exposures
As at 30 Jun 2007
Individually
assessed
On-balance Off-balance impairment
Type of counterparties sheet exposure sheet exposure Total allowances
Mainland entities 1,697,301 5,662 1,702,963 –
Companies and individuals outside
Mainland where the credits are
granted for use in the Mainland 9,407,525 797,874 10,205,399 52,991
Other counterparties the exposures
to whom are considered by the
Group to be non-bank Mainland
exposures 63,342 6,501 69,843 –
As at 31 Dec 2006
Individually
assessed
On-balance Off-balance impairment
Type of counterparties sheet exposure sheet exposure Total allowances
Mainland entities 1,835,834 2,187 1,838,021 –
Companies and individuals outside
Mainland where the credits are
granted for use in the Mainland 8,415,195 767,331 9,182,526 78,942
Other counterparties the exposures
to whom are considered by the
Group to be non-bank Mainland
exposures 41,904 2,496 44,400 –
Note: The balances of exposures reported above include gross advances and other balances of claims on the
customers.
(c) Analysis of gross advances to customers and overdue loans by geographical area
Advances to customers by geographical area are classified according to the location of the counterparties
after taking into account the transfer of risk. In general, risk transfer applies when an advances is guaranteed
by a party located in an area which is different from that of the counterparty.
At 30 June 2007, over 90% of the Group’s advances to customers, including related impaired advances and
overdue advances, were classified under Hong Kong (a position unchanged from that as at 31 December
2006).

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(d) Impaired, overdue and rescheduled assets
(i) Impaired loans
As at As at
30 Jun 2007 31 Dec 2006
Gross impaired loans (Note (a)) 215,477 254,533
As a percentage of total advances to customers 0.38% 0.51%
Individual impairment allowances 136,782 136,746
Amount of collateral held 81,764 122,343
Note:
a. Impaired loans are defined as those loans having objective evidence of impairment as a result
of one or more events that occurred after the initial recognition of the asset (a “loss event”) and
that loss event has an impact on the estimated future cash flows of the loans that can be reliably
estimated. Impaired loans are individually determined to be impaired.
b. The above individual impairment allowances were made after taking into account the value of
collateral in respect of such advances as at 30 June/31 December.
(ii) Overdue loans
% of total % of total
As at advances As at advances
30 Jun 2007 to customers 31 Dec 2006 to customers
Gross advances to customers
which have been overdue for:
– six months or less but over
three months 97,210 0.17 99,855 0.20
– one year or less but over
six months 66,662 0.12 61,973 0.12
– over one year 103,872 0.19 119,804 0.24
267,744 0.48 281,632 0.56

Market value of securities held
against the secured overdue
advances 169,342 168,065
Secured overdue advances 113,635 133,324
Unsecured overdue advances 154,109 148,308
Individual impairment allowances 118,002 118,518

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(iii) Rescheduled advances net of amounts included in overdue advances shown above
% of total % of total
As at advances As at advances
30 Jun 2007 to customers 31 Dec 2006 to customers
Rescheduled advances 62,285 0.11 69,106 0.14
Impairment allowances 2,862 6,886
There were no advances to banks and other financial institutions, which were impaired, overdue for
over 3 months or rescheduled as at 30 June 2007 and 31 December 2006.
(iv) Trade bills
As at As at
30 Jun 2007 31 Dec 2006
Overdue for:
– six months or less but over three months 935 –
– one year or less but over six months 1,180 –
2,115 –
(e) Repossessed assets
The repossessed assets of the Group were as follows:
As at As at
30 Jun 2007 31 Dec 2006
Repossessed properties 20,506 31,485
Others 9,206 738
29,712 32,223
15. OTHER RESERVES

As at As at
30 Jun 2007 31 Dec 2006
Reserves
Share premium 984,286 984,286
Premises revaluation reserve 541,930 541,930
Investment revaluation reserve (5,401) 10,661
Exchange reserve 229 (33)
General reserve 574,612 574,612
2,095,656 2,111,456

— 20 —
16. CONTINGENT LIABILITIES AND COMMITMENTS

The contract and credit risk weighted amounts of the Group’s off-balance sheet financial instruments that commit
it to extend credit to customers are as follows:
Contract amounts
As at As at
30 Jun 2007 31 Dec 2006
Direct credit substitutes 618,249 1,628,553
Transaction related contingencies 276 4,576
Trade-related contingencies 1,070,787 1,066,214
Other commitments which are unconditionally cancelable 27,738,630 24,612,456
Other commitments with an original maturity of:
– under 1 year 6,608,256 7,725,382
– 1 year and over 2,206,043 790,570
Forward forward deposits placed 115,403 1,923,185
38,357,644 37,750,936

Credit risk weighted amounts
As at As at
30 Jun 2007 31 Dec 2006
Contingent liabilities and commitments 2,536,705 2,287,097

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17. SEGMENT REPORTING

(A) By business segments
For the six months ended 30 June 2007
Personal Commercial Insurance
Banking Banking Treasury Business Unallocated Elimination Total
Interest income from
– external customers 872,855 932,410 978,899 48,268 23,836 – 2,856,268
– inter-segments 632,899 – 10 3,424 424,316 (1,060,649) –
Interest expense to
– external customers (992,006) (251,388) (160,551) – (366,261) – (1,770,206)
– inter-segments 2,297 (318,854) (741,502) – (2,590) 1,060,649 –
Net interest income 516,045 362,168 76,856 51,692 79,301 – 1,086,062
Net fee and commission
income/(expense) 229,246 63,401 (734) 4,778 8,836 (2,105) 303,422
Net trading and other operating
income/(expense) 8,443 10,107 17,702 89,001 44,930 2,560 172,743
Net insurance premium income
and other income – – – 820,119 – (555) 819,564
Operating income 753,734 435,676 93,824 965,590 133,067 (100) 2,381,791
Net insurance claims and
movement in liabilities
to policyholders – – – (736,035) – – (736,035)
Total operating income net
of insurance claims 753,734 435,676 93,824 229,555 133,067 (100) 1,645,756
Operating expenses (422,342) (142,386) (42,893) (72,309) (27,010) 100 (706,840)
Operating profit before
impairment losses on loans
and advances 331,392 293,290 50,931 157,246 106,057 – 938,916
Impairment losses on loans
and advances (42,241) (45,636) 23 – – – (87,854)
Operating profit before gains
on certain investments and
fixed assets 289,151 247,654 50,954 157,246 106,057 – 851,062
Net (loss)/gain on disposal
of fixed assets (29) (4) – – 485 – 452
Net (loss)/gain on disposal
of available-for-sale securities (13) – 77,434 – 20,364 – 97,785
Share of results of jointly
controlled entities – – – – 4,339 – 4,339
Share of results of associates – – – – (7,717) – (7,717)
Profit before income tax 289,109 247,650 128,388 157,246 123,528 – 945,921
As at 30 June 2007
Total assets 27,670,126 31,743,952 53,371,073 6,160,798 3,314,817 (352,832) 121,907,934
Total liabilities 53,135,235 14,419,804 22,993,700 4,107,736 14,898,336 (352,832) 109,201,979
For the six months ended
30 June 2007
Depreciation 21,097 9,257 3,003 2,459 7,838 – 43,654
Capital expenditure incurred 20,750 1,907 496 1,547 7,961 – 32,661

— 22 —
For the six months ended 30 June 2006
(Restated)
Personal Commercial Insurance
Banking Banking Treasury Business Unallocated Elimination Total
Interest income from
– external customers 820,726 810,876 797,636 40,770 29,739 – 2,499,747
– inter-segments 584,940 – 107 2,306 328,828 (916,181) –
Interest expense to
– external customers (891,136) (221,781) (104,256) 994 (258,604) – (1,474,783)
– inter-segments (15,335) (244,238) (656,606) – (2) 916,181 –
Net interest income 499,195 344,857 36,881 44,070 99,961 – 1,024,964
Net fee and commission
income/(expense) 182,500 58,779 4,123 3,656 7,914 (1,823) 255,149
Net trading and other operating
income/(expense) 12,750 6,473 58,796 (12,560) (40,544) – 24,915
Net insurance premium income
and other income – – – 325,272 – – 325,272
Operating income 694,445 410,109 99,800 360,438 67,331 (1,823) 1,630,300
Net insurance claims and
movement in liabilities
to policyholders – – – (207,219) – – (207,219)
Total operating income net
of insurance claims 694,445 410,109 99,800 153,219 67,331 (1,823) 1,423,081
Operating expenses (382,861) (131,978) (28,719) (51,233) (19,785) 1,823 (612,753)
Operating profit before
impairment losses on loans
and advances 311,584 278,131 71,081 101,986 47,546 – 810,328
Impairment losses on loans
and advances (25,210) (50,078) – (45) 18 – (75,315)
Operating profit before gains
on certain investments and
fixed assets 286,374 228,053 71,081 101,941 47,564 – 735,013
Net (loss)/gain on disposal
of fixed assets (12) – – 8 (5) – (9)
Net gain on disposal of
interests in subsidiaries – – – – 189,443 – 189,443
Net (loss)/gain on disposal of
available-for-sale securities (6) – 62,409 – 2,133 – 64,536
Share of results of jointly
controlled entities – – – – 2,675 – 2,675
Share of results of associates – – – – (9,465) – (9,465)
Reversal of impairment losses
on available-for-sale securities – – 25,891 – – – 25,891
Profit before income tax 286,356 228,053 159,381 101,949 232,345 – 1,008,084
As at 31 December 2006
Total assets 24,952,007 27,542,139 47,003,768 6,294,879 3,370,945 (115,741) 109,047,997
Total liabilities 50,418,508 14,752,513 15,672,008 4,314,914 11,596,250 (115,741) 96,638,452
For the six months
ended 30 June 2006
Depreciation 26,780 9,299 2,090 3,035 3,310 – 44,514
Capital expenditure incurred 9,709 822 323 308 2,045 – 13,207

— 23 —
Personal banking business includes the acceptance of deposits from individual customers and the extension
of residential mortgage lending, personal loans, overdraft and credit card services, the provision of insurance
sales and investment services.
Commercial banking business includes the acceptance of deposits from and the advance of loans and working
capital finance to commercial, industrial and institutional customers, and the provision of trade financing.
Hire purchase finance and leasing related to equipment, vehicle and transport financing are included.
Treasury activities are mainly the provision of foreign exchange services and centralised cash management
for deposit taking and lending, interest rate risk management, management of investment in securities and
the overall funding of the Group.
Insurance business includes the Group’s life assurance and general insurance businesses. Through the Group’s
life insurance subsidiaries in Hong Kong and Macau, the Group offers a variety of life insurance products
and services. The Group’s general insurance business is conducted through a wholly-owned subsidiary in
Hong Kong and a 96% owned subsidiary in Macau.
Unallocated items include results of operations and corporate investments (including properties) not directly
identified under other business divisions.
(B) By geographical segments
Hong Kong Inter-segment
and others Macau elimination Total
For the six months ended 30 June 2007
Operating income 1,468,706 177,050 – 1,645,756
Profit before income tax 862,228 83,693 – 945,921
Profit for the period 749,460 72,583 – 822,043
Depreciation 34,528 9,126 – 43,654
Capital expenditure incurred 27,994 4,667 – 32,661
As at 30 June 2007
Total assets 110,414,949 12,584,444 (1,091,459) 121,907,934
Total liabilities 99,743,733 10,549,705 (1,091,459) 109,201,979
Contingent liabilities and commitments 45,174,613 1,947,833 – 47,122,446
Hong Kong Inter-segment
and others Macau elimination Total
For the six months ended 30 June 2006
Operating income 1,266,556 156,525 – 1,423,081
Profit before income tax 944,655 63,429 – 1,008,084
Profit for the period 813,332 55,824 – 869,156
Depreciation 34,418 10,096 – 44,514
Capital expenditure incurred 10,209 2,998 – 13,207
As at 31 December 2006
Total assets 99,497,800 11,436,218 (1,886,021) 109,047,997
Total liabilities 89,064,397 9,460,076 (1,886,021) 96,638,452
Contingent liabilities and commitments 43,148,836 1,974,306 (163,408) 44,959,734

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FINANCIAL RATIOS

Restated
Six months ended Six months ended
30 Jun 2007 30 Jun 2006
Net interest income/operating income 66.0% 72.0%
Cost to income ratio 42.9% 43.1%
Loan to deposit (including certificates of deposit) ratio 70.5% 66.8%
Return on average total assets (Note 1) 1.1% 1.0%
Return on average shareholders’ funds (Note 1) 12.2% 10.8%
Dividend payout ratio (Note 1) 28.2% 34.8%
Net interest margin 2.27% 2.46%
Note:
1. The normalised attributable profit of HK$538.9 million, excluding profit realised mainly on the placing of
3.6% interest in DSBG totalling HK$189.4 million, is used in calculating the profitability and dividend
payout ratios for the six months ended 30 June 2006.
INTERIM DIVIDEND

The Directors have declared an interim dividend of HK$0.75 per share for 2007 payable on or after Wednesday,
3 October 2007 to shareholders whose names are on the Register of Shareholders at the close of business on
Friday, 28 September 2007.
CLOSING OF REGISTER OF SHAREHOLDERS

The Register of Shareholders will be closed from Monday, 24 September 2007 to Friday, 28 September 2007,
both days inclusive. In order to qualify for the interim dividend, all transfers accompanied by the relevant share
certificates must be lodged with the Company’s Registrars, Computershare Hong Kong Investor Services Limited,
17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong for registration not later than 4:30 p.m. on
Friday, 21 September 2007.
CORPORATE AND BUSINESS OVERVIEW
HIGHLIGHTS

Against a backdrop of a generally positive operating environment, growing economies in Hong Kong and
Macau, extremely robust economic growth in the Mainland, and driven by a higher operating income (net of
insurance claims) rising from HK$1.42 billion in the same period last year to HK$1.65 billion in the period,
our profit attributable to shareholders increased by 23% from HK$539 million in the first half of 2006 (excluding
the exceptional gain on disposal of shares in Dah Sing Banking Group (“DSBG”)) to HK$664 million in the
first six months of 2007. Earnings per share increased by 24% to HK$2.66 if the exceptional gain on the
disposal of DSBG shares in 2006 was excluded in calculating the normalised earnings per share for the first
half of 2006. The Board of Directors has declared an interim dividend of HK$0.75 per share.
Our key businesses all performed well during the period, with the contribution from our banking business
increasing by 9% to HK$616 million, and our insurance business reporting extremely strong growth in earnings
of 57% to HK$151 million for the period.

— 25 —
Loan growth was particularly strong, with an increase of 22% year on year, and 13% since 31 December 2006,
driven mainly by our commercial lending business. Deposit growth was also significant, with an increase of
16% year on year, and 5% since the end of 2006.
Non-interest income grew strongly by 41% to HK$560 million, boosted by a particularly strong performance
from our insurance business as well as good performance from our banking business, particularly related to
wealth management businesses.
Operating expenses increased by around 15% year-on-year, reflecting the costs of the expansion of our businesses,
in the Hong Kong, Macau and Mainland markets.
During the period under review, we completed our acquisition of 17% of Chongqing Commercial Bank, and
contracted to acquire a further 3%, subject to regulatory approval, to take our total investment to 20%. Dah
Sing Bank also issued US$200 million perpetual subordinated debt callable in 2017 qualifying as Upper Tier 2
capital to strengthen its capital base and to prepare for the further expansion of our banking business, which
assisted our banking group to achieve a capital adequacy ratio of 17.1% at the mid-year.
BUSINESS AND FINANCIAL REVIEW

The key drivers of the strong loan growth in our banking business were property lending, syndicated loans,
equipment and vehicle financing and financing for securities trading. Growth was driven primarily by our
commercial lending business, although it was encouraging to note that the speed of growth in our retail lending
business has accelerated over the same period last year. Net interest margin weakened slightly to 2.27% in the
first half of 2007, compared with 2.46% in the first half of 2006, due mainly to a tighter Prime/HIBOR margin
and increased funding cost. Our strong loan growth was more than sufficient to offset the slightly weaker
margin, allowing us to report an increase in net interest income of 6% for the period to HK$1,086 million.
Our Macau banking business performed particularly well, with a 25% year on year increase in profit, driven by
healthy loan growth, as well as a steady net interest margin.
Net fee and commission income increased by 18.9% relative to the first half of 2006, largely contributed by
stronger wealth management income. Boosted by the buoyant investment environment and higher securities
turnover, our wealth management business recorded higher brokerage fees and commission income generated
from investment services and stronger unit trust sales.
Net trading income increased significantly when compared with the net trading loss in the first six months last
year, boosted largely by a much higher trading income generated by our insurance business, mainly contributed
by much higher gains on the equity investments of our life business. The stronger global equity market
performance and relatively stable bond market in the first six months period led to a higher valuation of our
insurance group’s investment portfolio, with fair value changes recognised in our income statement.
Our insurance business performed very well during the period. Net insurance premium income and other income
grew by 152% during the period, reflecting increased sales from our expanded agency force, as well as good
results from our bancassurance platform, including sales of single premium product. The increase in the value
of in-force long-term life assurance business (or embedded value) in the period also benefited from the stronger
new sales and amounted to HK$35 million, compared to the net decrease of HK$32 million in the first half of
2006 when the changes in valuation interest rate adversely affected the embedded value contribution. A much

— 26 —
improved investment performance, reflected in the positive mark to market appreciation of the insurance
investment portfolio through the profit and loss account, as well as an improved embedded value contribution
from our insurance business all contributed to the 54% increase in insurance earnings for the period.
Net insurance claims and movement in liabilities to policyholders also rose significantly in the period, reflecting
higher claim expenses, commission and acquisition costs, and higher transfer to actuarial reserves arising from
the much higher life policy sales.
The growth in operating expenses during the period was due mainly to increased staff costs, both through
higher salaries and increased headcount, as well as increased rental, and general expenses such as advertising
and marketing.
We were able to take advantage of favourable market conditions in the first half of the year to realise a net gain
on disposal of available-for-sale securities of HK$98 million, an increase of 52% relative to the same period
last year. In 2006, we benefited from a write-back of HK$26 million impairment allowance on an investment
which has not been repeated in 2007.
Credit quality remained solid, although impairment charges increased by 17% to HK$88 million, mainly relating
to higher collective impairment charges from our retail banking business, particularly our credit card and
personal loan businesses, reflecting higher business volumes. Credit quality in our commercial lending business
remained robust in the first half. Overall credit quality remained acceptable, as demonstrated by the continuing
low impaired loan ratio of 0.4%, and a total overdue and rescheduled loan ratio of 0.6% as of 30 June 2007.
As at 30 June 2007, the Group’s total gross loans and advances amounted to HK$56.2 billion, up 12.7%
relative to the end of last year. Strong growth was recorded in the Commercial Banking sector, led by syndicated
loans, commercial loans and property lending. The overall Personal Banking loan portfolio achieved a modest
growth amidst keen competition, and was mainly driven by mortgage loans and securities related financing.
Customers’ deposits including structured deposits totalled HK$69.7 billion, an increase of 4.0% relative to the
end of 2006. Issued certificates of deposit rose to HK$10.1 billion, 14.8% higher than 2006 year end. The loan
to deposit ratio increased from 66.8% as at 31 December 2006 to 70.5% as at 30 June 2007.
PROSPECTS

We continue to believe that the economic prospects in Mainland China will present an important opportunity
for growth in the coming years. In addition to our investment in Chongqing Commercial Bank, we have also
submitted an application for the opening of a Mainland locally incorporated subsidiary bank, based in Shenzhen,
to further develop our presence in that market.
We expect that the Hong Kong and Macau domestic economies will continue to develop positively in the
second half of the year, providing opportunities for the growth of both our banking and insurance businesses.
However, competition in these markets is expected to remain intense, and this coupled with the possible impact
on the economy of the recent volatile conditions in global financial markets, and particularly in global credit
markets where a rapid correction has been taking place, is likely to mean that the second half of the year will be
challenging.

— 27 —
COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE PRACTICES

The Company has complied with all the code provisions set out in the Code on Corporate Governance Practices
contained in Appendix 14 of the Listing Rules throughout the six months ended 30 June 2007.
COMPLIANCE WITH THE MODEL CODE FOR DIRECTORS’ SECURITIES TRANSACTIONS
The Company has adopted its own code of conduct regarding directors’ securities transactions on terms no less
exacting than the required standard set out in the Model Code for Securities Transactions by Directors (Appendix
10 of the Main Board Rules). After having made specific enquiry of all Directors, the Company confirmed that
the required standard set out in the Model Code and the Company’s code of conduct regarding directors’
securities transactions have been fully complied with.
UNAUDITED FINANCIAL STATEMENTS

The financial information in this results announcement is unaudited and does not constitute statutory financial
statements.
AUDIT COMMITTEE

The Audit Committee has reviewed with management the accounting principles and practices adopted by the
Group and discussed internal controls and financial reporting matters including a review of the unaudited
financial statements for the period ended 30 June 2007.
REMUNERATION AND STAFF DEVELOPMENT

There have been no material change to the information disclosed in the Company’s 2006 Annual Report in
respect of the remuneration of employees, remuneration policies and training schemes.
DEALINGS IN THE COMPANY’S SHARES
There was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company’s listed
shares during the period from 1 January 2007 to 30 June 2007.
INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

Copies of this announcement may be obtained from Corporate Secretarial Department at 36th Floor, Dah Sing
Financial Centre, 108 Gloucester Road, Hong Kong, or downloaded from the Company’s website at
<http://www.dahsing.com> free of charge.
The 2007 Interim Report of the Group containing all the information required by the Listing Rules will be
published on the websites of the Hong Kong Stock Exchange and the Company in due course. Printed copies of
the 2007 Interim Report will be sent to shareholders before the end of September 2007.

— 28 —
BOARD OF DIRECTORS

As at the date of this announcement, the Board of Directors comprises David Shou-Yeh Wong (Chairman),
Hon-Hing Wong (Derek Wong) (Managing Director and Chief Executive), Roderick S. Anderson, Gary Pak-
Ling Wang and Nicholas J. Mayhew as Executive Directors, Peter G. Birch, Robert Tsai-To Sze, Tai-Lun Sun
(Dennis Sun) and Kwok-Hung Yue (Justin Yue) as Independent Non-Executive Directors, and Chung-Kai
Chow, Kunio Suzuki (with Kenichi Yonetani as alternate), Tatsuo Tanaka (with Keisuke Tahara as alternate),
Eiichi Yoshikawa, John Wai-Wai Chow and Yiu-Ming Ng as Non-Executive Directors.
By Order of the Board
H L Soo
Company Secretary
Hong Kong, Wednesday, 29 August 2007