Shenzhen Heung Kong Holding Co., Ltd planned to issue non-tradable shares to specific objectives including South Heung Kong Group Co., Ltd, the holding shareholder of Shenzhen Heung Kong.

The total amount of issued shares this time was no more than 200 million (including 200 million). Meanwhile, the share amount issued to South Heung Kong Group Co., Ltd was no more than 50% of the total, while to other organizations and investors except South Heung Kong Group Co., Ltd, the amount was no less than 50%.

The new non-tradable shares this time will be used to acquire 51% of equity of Guangzhou Panyu Jinjiang Real Estate Development Co., Ltd, 90% of equity of Baiding Heung Kong Real Estate Co., Ltd, 100% of equity of Chengdu Heung Kong Furniture Industry Investment Development Co., Ltd, 20% equity of Tianjin Huayun Commercial Property Co., Ltd, and 90% of equity of Zengcheng Heung Kong Real Estate Co., Ltd, in addition, to invest the fourth-stage construction of Zengcheng Heung Kong Jade Oasis.

The total value of the above equity was about RMB 1. 62 billion, except the benchmark of the account value of Chengdu Heung Kong and Tianjin Huayun with the securities qualification auditing organization, the other companies’ equity should be priced by the evaluation results of the securities qualification assets organization (the appraisal benchmark is Apr 30th, 2007). It is forecasted that the capital for the fourth-stage construction of Zengcheng Heung Kong Jade Oasis will be RMB 252 million.

The non-tradable shares sold to South Heung Kong is to be some consideration of the company to acquire the equity, while the shares sold to the other organizations and investors is to pay for the balance of consideration of acquiring the above equity, as well as for the fourth-stage construction of Zengcheng Heung Kong Jade Oasis.