Company News

• May 16, 2013
• CDB raises its potential investment stake in the Company, New World Development joins as a potential investor

• A supplementary memorandum of understanding (the “Supplementary MOU”) was signed by China Development Bank International Holdings (“CDBIH”), a wholly owned subsidiary of China Development Bank Capital Corporation Ltd. (“CDBC”), SRE Investment Holding Limited (“SREI”), the existing largest shareholder of the Company on 16 May 2013.
   
  According to the Supplementary MOU, the potential subscription for 3 billion shares of the Company announced on 18 March 2013 will be fortified to approximately 5.348 billion shares, and the subscription price will increase 9.76%, from HK$0.246 to HK$0.27 per share.After the completion of the potential subscription, 51% of the issued shares of the Company will be held by CDBIH. The Company will become a subsidiary (instead of a member according to the MOU) of CDBIH. Further, CDBIH and SREI shall not sell the related shares within one year. The enhanced commitment to be made by CDBIH reflects its high recognition to the Company’s achievement in urbanization as well as its confidence in the Company’s growth potential.
   
  On the same day, the Company entered into another memorandum of understanding with Zennon Capital Partners L.P (“Zennon”), a private equity and a New World Strategic Investment Limited (“NWSI”), wholly-owned subsidiary of New World Development Company Limited (“NWD”), for subscription of respectively 520million and 120million shares of the Company at a price of HK$0.30 per share.
   
  It is expected that the proceeds from the potential share subscription by the Zennon and NWSI will enhance the Company’s capital structure by providing long-term permanent capital and additional funding for the company’s capital intensive business.
   
  NWD, the holding company of NWSI, is a leading conglomerate based in Hong Kong, with business portfolio in four core areas, including property, infrastructure, services and department store in Hong Kong, Macau and the PRC. Its property development and investment business in the PRC is a natural extension of the primary land development business of the Company. NWD is able to provide valuable advice on design and planning to the Company’s business. Zennon is a private equity fund which focuses on companies with good potential for growth. The fund manager of Zennon has both experience in international capital markets and connections with major corporate in the real estate and related industries, and is expected to provide guidance and strategic support to the Company’s future capital management.