Appendix Iii Property Valuation Report

THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

The following is the text of a letter, summary of values and valuation certificates, prepared for the purpose of incorporation in this document received from AVISTA Valuation Advisory Limited, an independent valuer, in connection with its valuation as at 31 August 2019 of the property interests of the Company.

剥取忑娼἗嫕婉

23rd Floor, Siu On Centre, No. 188 Lockhart Road, Wan Chai, Hong Kong

: (852) 3702 7338 : (852) 3914 6388

[REDACTED]

The Board of Directors Xinji Shaxi Group Co., Ltd. 1st Floor, Xinjicheng Club, No. 250 Nanda Road, Panyu District, Guangzhou City, Guangdong Province, the PRC

Dear Sirs/Madams,

INSTRUCTIONS

In accordance with the instructions of Xinji Shaxi Group Co., Ltd. (the ‘‘Company’’)forus to carry out the valuation of the property interests occupied and rented by the Company and its subsidiaries (hereinafter together referred to as the ‘‘Group’’) in the People’s Republic of China (the ‘‘PRC’’), we confirm that we have carried out inspection, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market value of the property interests as at 31 August 2019 (the ‘‘valuation date’’).

PREMISES OF VALUE

The valuation is our opinion of market value which is defined by the Hong Kong Institute of Surveyors as ‘‘the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion’’.

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BASIC OF VALUATION

In valuing the property interests, we have complied with all the requirements set out in Chapter 5 and Practice Note 12 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited (‘‘Listing Rules’’), the HKIS Valuation Standards (2017 Edition) published by the Hong Kong Institute of Surveyors and the International Valuation Standards published from time to time by the International Valuation Standards Council.

Our valuations exclude an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of special value or costs of sale and purchase or offset for any associated taxes.

CATEGORISATION OF PROPERTY INTERESTS

In the course of our valuation, the appraised property interests have been categorized according firstly to type of interests held and occupied by the Group in the PRC, which in turn being classified into the following groups:

Group I — Property interests held for investment by the Group in the PRC;

Group II — Property Interests held for future development by the Group in the PRC; and

Group III — Property Interests rented by the Group in the PRC.

VALUATION METHODOLOGY

In the course of our valuation, unless otherwise stated, we have valued the properties in their designated uses with the understanding that the properties will be used as such (hereafter referred to as ‘‘continued uses’’).

InvaluingthepropertyinterestspropertyNo.1and2underGroupIandpropertyNo.3and 4 under Group II, we have valued by market approach by making reference to comparable market transactions in our assessment of the property interests. This approach rests on the wide acceptance of the market transactions as the best indicator and pre-supposes that evidence of relevant transactions in the market place can be extrapolated to similar properties, subject to allowances for variable factors.

Specifically, a range of unit rates between RMB8,000 to RMB15,000 per sq.m. as varied by floor levels, on lettable area basis, with respect to property No. 1, a range of unit rates between RMB10,000 to RMB18,000 per sq.m. with respect to property No. 2, a range of unit rates between RMB365 to RMB440 per sq.m. with respect to property No. 3, and a range of unit rates between RMB320 to RMB390 per sq.m. with respect to property No. 4, were adopted as parameters for valuation purpose.

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In valuing the property interests of property No. 5, 6 and 7 under Group III, we have valued by the income approach by taking into account the rental income of the properties derived from the existing leases or sub-leases and/or achievable in the existing market with due allowance for the reversionary income potential of the leases or sub-leases which have been then capitalized to determine the market value at an appropriate capitalization rate. Where appropriate, reference has also been made to the comparable sales transactions as available in the relevant market.

With respect to property No. 5, rent of similar properties in the locality concerned in the region of RMB25 to RMB35/sq.m. per month on lettable area basis for storage purpose, and RMB170 to RMB210/sq.m. per month on lettable area basis for shop purpose, coupled with an assumed market yield of 8%, were adopted for valuation purpose.

With respect to property No. 6, rent of similar properties in the locality concerned in the region of RMB25 to RMB35/sq.m. per month on lettable area basis for storage purpose, and RMB50 to RMB85/sq.m. per month on lettable area basis for shop purpose, coupled with an assumed market yield of 8%, were adopted for valuation purpose.

With respect to property No. 7, rent of similar properties in the locality concerned in the region of RMB20 to RMB30/sq.m. per month on lettable area basis for storage purpose, and RMB60 to RMB80/sq.m. per month on lettable area basis for shop purpose, coupled with an assumed market yield of 6%, were adopted for valuation purpose.

In valuing the property interests of property No. 8 under Group III, which are rented by the Group, we have attributed no commercial value due to inclusion of non-alienation clause or otherwise due to lack of substantial profit rents or short-term nature.

TITLE INVESTIGATION

We have been provided by the Company with copy of extract of the title documents relating to the property interests. Where possible, we have examined the original documents to verify the existing title to the property interests in the PRC and any material encumbrances that might be attached to the property interests or any amendments which may not appear on the copies handed to us.

However, we have not searched the original documents to verify ownership or to ascertain any amendment. Due to the current registration system of the PRC under which the registration information is not accessible to the public, no investigation has been made for the title of the property interests in the PRC and the material encumbrances that might be attached. In the course of our valuation, we have relied considerably on the legal opinion given by the Company’sPRC Legal Advisers — King & Wood Mallesons, concerning the validity of title of the properties in the PRC.

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SITE INVESTIGATION

We have inspected the exterior and, where possible, the accessible portions of the interior of the properties being appraised. The inspection was carried out by Mr. Oswald Au (Director of AVISTA Valuation Advisory Limited) and Mr. Greivis Sze (Senior Analyst of AVISTA Valuation Advisory Limited) on 17 January 2019. However, we have not been commissioned to carry out structural survey nor to arrange for an inspection of the services. We are, therefore, not able to report whether the properties are free of rot, infestation or any other structural defects. We formulate our view as to the overall conditions of the properties taking into account the general appearance, the apparent standard and age of fixtures and fittings and the existence of utility services. Hence it must be stressed that we have had regard to you with a view as to whether the buildings are free from defects or as to the possibility of latent defects which might affect our valuation. In the course of our inspection, we did not note any serious defects. No tests were carried out on any of the services. We have assumed that utility services, such as electricity, telephone, water, etc., are available and free from defect.

We have not arranged for any investigation to be carried out to determine whether or not high alumina cement concrete or calcium chloride additive or pulverized fly ash, or any other deleterious material has been used in the construction of the properties. We are therefore unable to report that the properties are free from risk in this respect. For the purpose of this valuation, we have assumed that deleterious material has not been used in the construction of the properties.

We have not been commissioned to carry out detailed site measurements to verify the correctness of the land or building areas in respect of the properties but have assumed that the areas provided to us are correct. Based on our experience of valuation of similar properties, we consider the assumptions so made to be reasonable.

Moreover, we have not carried out any site investigation to determine the suitability of the ground conditions or the services for any property development erected or to be erected thereon. Nor did we undertake archaeological, ecological or environmental surveys for the property interests. Our valuation is prepared on the assumption that these aspects are satisfactory and that no extraordinary expenses or delays will be incurred during the construction period. Should it be discovered that contamination, subsidence or other latent defects exists in the properties or on adjoining or neighbouring land or that the properties had been or are being put to contaminated use, we reserve right to revise our opinion of value.

SOURCE OF INFORMATION

Unless otherwise stated, we shall rely to a considerable extent on the information provided to us by the Company or the legal or other professional advisers on such matters as statutory notices, planning approval, zoning, easements, tenure, completion date of building, development proposal, identification of property, particulars of occupation, site areas, floor areas, matters relating to tenure, tenancies and all other relevant matters. Dimensions, measurements and areas included in the valuation certificate are based on information contained in the documents provided to us and are therefore approximations and for reference only. We have not searched original plans, developer brochures and the like to verify them.

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We have had no reason to doubt the truth and accuracy of the information provided to us by the Company. We have also sought confirmation from the Company that no material factors have been omitted from the information supplied. We consider that we have been provided with sufficient information to reach an informed view and we have no reason to suspect that any material information has been withheld.

VALUATION ASSUMPTIONS

For the properties which are held under long term land use rights, we have assumed that transferable land use rights in respect of the property interests at nominal land use fees has been granted and that any premium payable has already been fully settled. Unless stated as otherwise, we have assumed that the respective title owner of the properties have an enforceable title of the property interests and have free and uninterrupted rights to occupy, use, sell, lease, charge, mortgage or otherwise dispose of the properties without the need of seeking further approval from and paying additional premium to the Government for the unexpired land use term as granted. Unless noted in the report, vacant possession is assumed for the property concerned.

Moreover, we have assumed that the design and construction of the properties are/will be in compliance with the local planning regulations and requirements and had been/would have been duly examined and approved by the relevant authorities.

Continued uses assumes the properties will be used for the purposes for which the properties are designed and built, or to which they are currently adapted. The valuation on the property in continued uses does not represent the amount that might be realised from piecemeal disposition of the property in the open market.

No environmental impact study has been ordered or made. Full compliance with applicable national, provincial and local environmental regulations and laws is assumed. Moreover, it is assumed that all required licences, consents or other legislative or administrative authority from any local, provincial or national government or private entity or organisation either have been or can be obtained or renewed for any use which the report covers.

It is also assumed that all applicable zoning and use regulations and restrictions have been complied with unless nonconformity has been stated, defined and considered in the valuation report. In addition, it is assumed that the utilisation of the land and improvements are within the boundaries of the properties described and that no encroachment or trespass exists, unless noted in the report.

No allowance has been made in our report for any charges, mortgages or amounts owing on any of the property interests valued nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of an onerous nature, which could affect their values.

We have further assumed that the properties were not transferred or involved in any contentious or non-contentious dispute as at the valuation date. We have also assumed that there was not any material change of the properties in between dates of our inspection and the valuation date.

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LIMITING CONDITION

Wherever the content of this report is extracted and translated from the relevant documents supplied in Chinese context and there are discrepancies in wordings, those parts of the original documents will take prevalent.

CURRENCY

Unless otherwise stated, all amounts are denominated in Renminbi (RMB). Our valuations are summarized below and the valuation certificates are attached.

Yours faithfully, For and on behalf of AVISTA Valuation Advisory Limited Sr Oswald W Y Au MHKIS(GP) AAPI MSc(RE) Registered Professional Surveyor (GP) Director

Note: Mr. Oswald W Y Au holds a Master’s Degree of Science in Real Estate from the University of Hong Kong. He is also a member of Hong Kong Institute of Surveyors (General Practice) and Associate Member of Australian Property Institute. In addition, he is a Registered Professional Surveyor (General Practice) registered with Surveyors Registration Board. He has over 10 years’ experience in the valuation of properties including Hong Kong, the PRC, the U.S., Canada, East and Southeast Asia including Singapore, Japan and Korea.

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SUMMARY OF VALUES

Group I — Property interests held for investment by the Group in the PRC

Market value Market value in Interest Attributable to existing state as Attributable to the Group as at No. Property at 31 August 2019 the Group 31 August 2019 RMB RMB

1. Xinji Shaxi Hospitality Supplies 518,600,000 100% 518,600,000 Expo Center (Shenyang) (瀋陽信基沙溪酒店用品博覽城) located at No. 59–1 Daoyibeida Street, Shenbeixin District, Shenyang City, Liaoning Province, the PRC

2. Xinji Shaxi Home Furnishings 921,500,000 100% 921,500,000 Expo Center (Shenyang) (瀋陽信基沙溪國際家居用品博覽中心) located at No. 57–1 Daoyibeida Street, Shenbeixin District, Shenyang City, Liaoning Province, the PRC

Sub-total: 1,440,100,000 100% 1,440,100,000

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Group II — Property interests held for future development by the Group in the PRC

Market value Market value in Interest Attributable to existing state as Attributable to the Group as at No. Property at 31 August 2019 the Group 31 August 2019 RMB RMB

3. A parcel of industrial land 4,640,000 100% 4,640,000 located at No. 57 Daoyibeida Street, Shenbeixin District, Shenyang City, Liaoning Province, the PRC

4. A parcel of industrial land and 23,730,000 100% 23,730,000 temporary structures located at No. 59 Daoyibeida Street, Shenbeixin District, Shenyang City, Liaoning Province, the PRC Liaoning Province, the PRC

Sub-total: 28,370,000 100% 28,370,000

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Group III — Property interests rented by the Group in the PRC

Market value Market value in Interest Attributable to existing state as Attributable to the Group as at No. Property at 31 August 2019 the Group 31 August 2019 RMB RMB

5. Xinji Shaxi Hospitality Supplies No commercial 100% No commercial Expo Center value value (信基沙溪酒店用品博覽城) located at No. 11 Shaxida Road, Luopu Street, Panyu District, Guangzhou City Guangdong Province, the PRC

6. Xinji Hotelex Hospitality No commercial 100% No commercial Supplies Center value value (信基豪泰酒店用品城) located at Northern side of Yingbin Road, Shangjiao Village, Luopu Street, Panyu District, Guangzhou City Guangdong Province, the PRC

7. Xinji Dashi Home Furnishings No commercial 100% No commercial Center (信基大石家俬城) value value located at No. 105 Guo Road, Dashi Street, Panyu District, Guangzhou City Guangdong Province, the PRC

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Market value Market value in Interest Attributable to existing state as Attributable to the Group as at No. Property at 31 August 2019 the Group 31 August 2019 RMB RMB

8. Portion of 1 st to 3rd Floor of No commercial 100% No commercial Xinjicheng Club (信基城會所) value value located at No. 250 Nanda Road, Dashi Street, Panyu District, Guangzhou City Guangdong Province, the PRC

Sub-total: No commercial 100% No commercial value value

Grand Total: 1,468,470,000 100% 1,468,470,000

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VALUATION CERTIFICATE

Group I — Property interests held for investment by the Group in the PRC

Market value Attributable to the Particulars of Group as at No. Property Description and tenure occupancy 31 August 2019 RMB

1. Xinji Shaxi The property comprises 1 parcel of Portion of the property 518,600,000 Hospitality Supplies land with a total site area of with a lettable area of (100% interest Expo Center approximately 71,431.00 sq.m. and 1 approximately 25,907.03 attributable (Shenyang) (瀋陽信 block of 5-storey commercial sq.m. has been mainly to the Company: 基沙溪酒店用品博 building with 9 pair of escalators, 4 sub-leased to various 518,600,000) 覽城) passenger lifts and 3 goods lifts independent third parties located at erected thereon completed in 2015. for commercial purpose, No. 59–1 portion of the property Daoyibeida Street, Pursuant to the Building Ownership (Basement Level 1) with Shenbeixin District, Certificate, the building has a total alettableareaof Shenyang City, gross floor area of approximately approximately 10,200.00 Liaoning Province, 88,416.03 sq.m. and as advised by the sq.m. is under planning the PRC Company, the building has a total and the remaining portion lettable area of approximately with a lettable area of 48,933.43 sq.m. The details are set approximately 12,826.40 out as follows: sq.m. was vacant. Gross Floor Lettable Floor level Area Area (sq.m.) (sq.m.)

B 1 20,400.00 10,200.00 1 17,284.10 8,643.90 2 16,470.09 9,272.99 3 17,147.13 10,525.76 4 17,114.71 10,290.78

Total: 88,416.03 48,933.43

The property is located at Shenyang City, near the Shenyang Fantawild Adventure, with approximately 20km to Shenyang North Train Station and 42km to Shenyang Taoxian International Airport.

The land use rights of the property have been granted for a term of approximately 40 years expiring on 5 April 2051 for commercial use.

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Notes:

1. Pursuant to the State-owned Land Use Rights Certificate — Shen Bei Guo Yong (2011) Di No. 118 dated 16 June 2011 with a total site area of approximately 71,431.00 sq.m. have been granted to 瀋陽信基房地產開發有限公司 (the former name of 瀋陽信基實業有限公司), a wholly-owned subsidiary of the Company for a term expiring on 5 April 2051 for commercial use.

2. Pursuant to the Building Ownership Certificate -Shen Fang Quan Zheng Zhong Xin Zi Di No. N060630515 dated 26 September 2014 with a total gross floor area of approximately 88,416.03 sq.m. have been granted to 瀋陽信基房地產開發有限公司 for commercial use.

3. Pursuant to the tenancy agreement entered into between 瀋陽信基實業有限公司 and 瀋陽沙溪國際酒店用品博覽中心有限公司, a wholly-owned subsidiary of the Company, the buildings with a total gross floor area of approximately 88,416.03 sq.m. were contracted to be assigned for a term commencing from 1 March 2019 and expiring on 29 February 2024 at a total monthly rent of RMB442,080 and 瀋陽沙溪國際酒店用品博覽中心有限公司 is allowed to sublease the property.

4. Pursuant to various sub-tenancy agreements, portion of the property with a total lettable area of approximately 25,907.03 sq.m. are mainly leased to various independent third parties for various terms with the latest expiry date 31 July 2022 at a total monthly rent of approximately RMB1,029,000 mainly for commercial purpose.

5. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The Company has legally obtained the land use right and building ownership of the property;

b. The property can be legally occupied, used, leased, transferred, mortgaged or disposed by the Company subject to restrictions under relevant PRC laws;

c. The land use rights and buildings were pledged; and

d. The tenancy agreement mentioned in note no. 3 is valid, legal and binding.

6. A summary of major certificates/licenses is shown as follow:

a. State-owned Land Use Rights Certificate Yes

b. Building Ownership Certificate Yes

7. In our valuation, we have made reference to some transaction price references of some commercial development which have characteristics comparable to the property. We have adopted the range of unit rates between RMB8,000 to RMB15,000 per sq.m. for different floor levels on the lettable area basis. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

8. As confirmed by the Company, there are no material environmental and planning issues.

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VALUATION CERTIFICATE

Market value Attributable to the Particulars of Group as at No. Property Description and tenure occupancy 31 August 2019 RMB

2. Xinji Shaxi Home The property comprises 1 parcel of Portion of the property 921,500,000 Furnishings Expo land with a total site area of with a lettable area of (100% interest Center (Shenyang) approximately 43,973.00 sq.m. and 1 approximately 50,495.22 attributable (瀋陽信基沙溪國際 block of 5-storey commercial sq.m. has been mainly to the Company: 家居用品博覽中心) building with 16 pair of escalators, 4 sub-leased to various 921,500,000) located at No. 57–1 passenger lifts and 4 goods lifts independent third parties Daoyibeida Street, erected thereon completed in 2015. for commercial purpose Shenbeixin District, and the remaining portion Shenyang City, Pursuant to the Building Ownership with a lettable area of Liaoning Province, Certificate, the building has a total approximately 12,867.14 the PRC gross floor area of approximately sq.m. was vacant. 114,911.16 sq.m. and as advised by the Company, the building has a total lettable area of approximately 63,362.36 sq.m. The details are set out as follows:

Floor Gross Lettable level Floor Area Area (sq.m.) (sq.m.)

B 1 24,454.00 14,672.40 1 26,192.00 14,405.60 2 26,537.00 14,064.61 3 26,537.00 14,064.61 4 11,191.16 6,155.14

Total: 114,911.16 63,362.36

The property is located at Shenyang City, near the Shenyang Fantawild Adventure, with approximately 20km to Shenyang North Train Station and 42km to Shenyang Taoxian International Airport.

The land use rights of the property have been granted for a term of approximately 40 years expiring on 19 October 2049 for commercial use.

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Notes:

1. Pursuant to the State-owned Land Use Rights Certificate — Shen Bei Guo Yong (2016) Di No. 0019 dated 22 March 2016 with a total site area of approximately 43,973.00 sq.m. have been granted to 瀋陽信基房地產開發有限公司 (the former name of 瀋陽信基實業有限公司), a wholly-owned subsidiary of the Company for a term expiring on 19 October 2049 for commercial use.

2. Pursuant to the Building Ownership Certificate -Shen Fang Quan Zheng Zhong Xin Zi Di No. N060712502 dated 5 June 2015 with a total gross floor area of approximately 114,911.16 sq.m. have been granted to 瀋陽信基房地產開發有限公司 for commercial use.

3. Pursuant to the tenancy agreement entered into between 瀋陽信基實業有限公司 and 瀋陽沙溪國際酒店用品博覽中心有限公司, a wholly-owned subsidiary of the Company, the buildings with a total gross floor area of approximately 114,611.16 sq.m. were contracted to be assigned for a term commencing from 1 March 2019 and expiring on 29 February 2024 at a total monthly rent of RMB574,555.8 and 瀋陽沙溪國際家居用品博覽中心有限公司 is allowed to sublease the property to other third parties.

4. Pursuant to various sub-tenancy agreements, portion of the property with a total lettable area of approximately 50,495.22 sq.m. are mainly leased to various independent third parties for various terms with the latest expiry date 28 February 2023 at a total monthly rent of approximately RMB2,093,000 mainly for commercial purpose.

5. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The Company has legally obtained the land use right and building ownership of the property;

b. The property can be legally occupied, used, leased, transferred, mortgaged or disposed by the Company subject to restrictions under relevant PRC laws;

c. The land use rights and buildings were pledged; and

d. The tenancy agreement mentioned in note no. 3 is valid, legal and binding.

6. A summary of major certificates/licenses is shown as follow:

a. State-owned Land Use Rights Certificate Yes

b. Building Ownership Certificate Yes

7. In our valuation, we have made reference to some transaction price references of some commercial development which have characteristics comparable to the property. We have adopted the range of unit rates between RMB10,000 to RMB18,000 per sq.m. for different floor levels on the lettable area basis. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

8. As confirmed by the Company, there are no material environmental and planning issues.

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VALUATION CERTIFICATE

Group II — Property interests held for future development by the Group in the PRC

Market value Attributable to the Particulars of Group as at No. Property Description and tenure occupancy 31 August 2019 RMB

3. A parcel of The property comprises 1 parcel of The property is currently 4,640,000 industrial land land with a site area of approximately vacant as at the valuation (100% interest located at No. 57 11,492.00 sq.m. date. attributable Daoyibeida Street, to the Company: Shenbeixin District, The property is located at Shenyang 4,640,000) Shenyang City, City, near the Shenyang Fantawild Liaoning Province, Adventure, with approximately 20km the PRC to Shenyang North Train Station and 42km to Shenyang Taoxian International Airport.

The land use rights of the property have been granted for a term expiring on 8 September 2061 for industrial use.

Notes:

1. Pursuant to State-owned Land Use Rights Grant Contract — No. 2101132011A0087 dated 9 September 2011, the land use rights of a parcel of land with a site area of approximately 11,492.00 sq.m. have been granted to 瀋陽信基房地產開發有限公司 (the former name of 瀋陽信基實業有限公司), a wholly-owned subsidiary of the Company for a land use right term of 50 years for industrial use at a total land premium of approximately RMB4,332,484.

As revealed from the aforesaid State-owned Land Use Rights Grant Contract, the property is subject to the following material development conditions:

Site Area: 11,492.00 sq.m. Plot Ratio: ≥1 Site Coverage: ≥35% Greenery Coverage: ≦15%

2. Pursuant to the State-owned Land Use Rights Certificates — Shen Bei Guo Yong (2012) Di No. 138 dated 19 September 2012 with a total site area of approximately 11,492.00 sq.m. has been vested to 瀋陽信基房地產開發有限公司, for a term of approximately 50 years for industrial use.

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3. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The Company has legally obtained the land use right of the property;

b. The property can be legally occupied, used, leased, transferred, mortgaged or disposed by the Company subject to restrictions under relevant PRC laws; and

c. As confirmed by Planning and Land Resource Bureau of Shenyang Municipal Shenbei Branch (瀋陽市規劃和國土資源局瀋北分局), the Company will not be subjected to idle land fees/or forfeiture of land due to the delay in commencement of construction works of the property up to the date of confirmation.

4. In our valuation, we have made reference to some transaction price references of land comparables in the subject and nearby development. We have adopted the range of unit rates between RMB365 to RMB440 per sq.m. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

5. A summary of major certificates/licenses is shown as follows:

a. State-owned Land Use Rights Certificate Yes

b. Building Ownership Certificate N/A

c. Construction Land Planning Permit N/A

d. Construction Works Planning Permit N/A

e. Construction Works Commencement Permit N/A

6. As confirmed by the Company that there are no material environmental and planning issues.

– III-16 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value Attributable to the Particulars of Group as at No. Property Description and tenure occupancy 31 August 2019 RMB

4. A parcel of The property comprises 1 parcel of Portion of the temporary 23,730,000 industrial land and land with a site area of approximately structures with a gross (100% interest temporary structures 67,422.00 sq.m. and temporary floor area of attributable located at No. 59 structures with a total gross floor area approximately 2,672.22 to the Company: Daoyibeida Street, of approximately 5,380.26 sq.m. sq.m. was leased to 23,730,000) Shenbeixin District, erected thereon. various independent third Shenyang City, parties, and the remaining Liaoning Province, The property is located at Shenyang portion was vacant. the PRC City, near the Shenyang Fantawild Adventure, with approximately 20km to Shenyang North Train Station and 42km to Shenyang Taoxian International Airport.

The land use rights of the property have been granted for a term expiring on 7 September 2061 for industrial use.

Notes:

1. Pursuant to State-owned Land Use Rights Grant Contract — No. 2101132011A0086 dated 9 September 2011, the land use rights of a parcel of land with a site area of approximately 67,422.00 sq.m. have been granted to 瀋陽信基房地產開發有限公司 (the former name of 瀋陽信基實業有限公司), a wholly-owned subsidiary of the Company for a land use right term of 50 years for industrial use at a total land premium of approximately RMB22,114,416.

As revealed from the aforesaid State-owned Land Use Rights Grant Contract, the property is subject to the following material development conditions:

Site Area: 67,422.00 sq.m. Plot Ratio: ≥1 Site Coverage: ≥35% Greenery Coverage: ≦15%

2. Pursuant to the State-owned Land Use Rights Certificates — Shen Bei Guo Yong (2012) Di No. 139 dated 19 September 2012 with a total site area of approximately 67,422.00 sq.m. has been vested to 瀋陽信基房地產開發有限公司, for a term of approximately 50 years for industrial use.

– III-17 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

3. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The Company has legally obtained the land use right of the property;

b. The property can be legally occupied, used, leased, transferred, mortgaged or disposed by the Company subject to restrictions under relevant PRC laws;

d. As confirmed by Planning and Land Resource Bureau of Shenyang Municipal Shenbei Branch (瀋陽市規劃和國土資源局瀋北分局) and Urban Management and Law Enforcement Bureau of Shenyang Municipal Shenbeixin District (瀋陽市瀋北新區城市管理和行政執法局), the Company will not be subjected to administrative penalties due to the unauthorized temporary structures.

4. In undertaking our valuation, we have assigned no market value/reference value to the temporary structures with a total gross floor area of 5,380.26 sq.m. since it has not obtained valid title certificates and approval.

5. In our valuation, we have made reference to some transaction price references of land comparables in the subject and nearby development. We have adopted the range of unit rates between RMB320 to RMB390 per sq.m. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

6. A summary of major certificates/licenses is shown as follows:

a. State-owned Land Use Rights Certificate Yes

b. Building Ownership Certificate N/A

c. Construction Land Planning Permit N/A

d. Construction Works Planning Permit N/A

e. Construction Works Commencement Permit N/A

7. As confirmed by the Company that there are no material environmental and planning issues.

– III-18 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Group III — Property interests rented by the Group in the PRC

Market value Attributable to the Description Particulars of Group as at No. Property and tenure occupancy 31 August 2019 RMB

5. Xinji Shaxi The property comprises 2 parcels of Portion of the property No commercial Hospitality Supplies leased land with a total site area of with a lettable area of value Expo Center (信基沙 approximately 117,719.50 sq.m. approximately 61,789.32 (100% interest 溪酒店用品博覽城) (please refer to note no. 1) and sq.m. has been mainly attributable to the located at various blocks buildings erected leased to various Company: No. 11 Shaxida thereon completed from 2003 to independent third parties No commercial Road, Luopu Street, 2018. for commercial purpose, value) Panyu District, and the remaining portion Guangzhou City The buildings have a total lettable with a lettable area of Guangdong area of approximately 62,124.08 approximately 334.76 Province, sq.m.. sq.m. was vacant. the PRC The property is located at Guangzhou City, near the Guangzhou Fisherman’s Wharf, with approximately 14km to Guangzhou South Train Station and 46km to Guangzhou Baiyun International Airport.

The 2 parcels of land are leased to 廣州市番禺沙溪日用工業品商業城有限公司 (the former name of 廣州沙溪國際酒店用品城有限公司), a wholly- owned subsidiary of the Company for a term commencing from 1 January 2002 and expiring on 31 December 2031 and commencing from 1 July 2002 and expiring on 30 June 2022 respectively.

– III-19 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

Notes:

1. Pursuant to the 2 land use right tenancy agreements, the land use rights of 2 parcel of land with a total site area of approximately 117,719.50 sq.m. and 1 supplementary agreement for commercial and/or storage use. The details are set out as follows:

No. Lessor Lessee Lease term Annual rent Site area (sq.m.)

i. 番禺區大番禺區信基房地產發展 commencing from 1 RMB4,041,108 112,253.00 石鎮沙溪有限公司 (the former January 2002 and and a 5% 村經濟合 lessee). According to the expiring on 31 December increase every 作社 supplementary agreement 2031 next year dated 4 November 2003, the right of the lease has been assigned to廣州市番禺沙溪日用工業品商業城有限公司

ii. 廣東番禺廣州市番禺沙溪日用工 commencing from 1 July RMB229,596 5,466.50 大橋有限業品商業城有限公司 2002 and expiring on 30 and a 5% 公司 June 2022 increase every next year

2. Pursuant to various tenancy agreements, the property with a total lettable area of approximately 61,789.32 sq.m. are mainly leased to various independent third parties for various terms with the latest expiry date 31 July 2023 at a total monthly rent of approximately RMB11,646,000 mainly for commercial purpose.

3. According to surveying report provided by the Company, the property has a total gross floor area of approximately 62,222.59 sq.m.

4. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The relevant construction work planning permits, certificates of completion of fire inspection and construction completion certificates have been obtained and gone through the fire safety inspection therefore failure to obtain the relevant building ownership certificates would not invalidate the use and leasing of the relevant premises; and

b. Applying the interpretation of the current Land Administration Law of the PRC by the Natural Resources of Guangdong Province Bureau, the tenancy agreements mentioned in note no. 1 are not prohibited by the current Land Administration Law of the PRC,the legality and validity of the lease shall not be impinged, and such lease shall be deemed legal and valid.

5. In undertaking our valuation, we have assigned no commercial value to portion of the property with a total lettable area of approximately 59,137.1 sq.m. since it could not be freely transferred in the market. For reference purpose, we are of the opinion that the estimated value of the property as at the valuation date would be RMB1,024,820,000, assuming the property could be freely transferred in the market.

– III-20 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

6. In undertaking our valuation, we have assigned no commercial value to portion the property with a total lettable area of approximately 2,986.98 sq.m. since it could not be freely transferred in the market and without related construction approval and construction acceptance. For reference purpose, we are of the opinion that the estimated value of the property without construction approval and construction acceptance as at the valuation date would be RMB57,110,000, assuming the property could be freely transferred in the market and has obtained the construction approval and construction acceptance.

7. In our valuation, we have made reference to some rental evidence and asking rent of similar properties in the locality which are in the region of RMB25 to RMB35 per sq.m./month on the lettable area basis for storage purpose andRMB170toRMB210persq.m./monthonthelettablearea basis for shop purpose. The market yield assumed by us is 8% which is in line with the market yield of this property sector in the region of 7% to 9%.

8. As confirmed by the Company, there are no material environmental and planning issues.

– III-21 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value Attributable to the Description Particulars of Group as at No. Property and tenure occupancy 31 August 2019 RMB

6. Xinji Hotelex The property comprises 1 parcel of The property has been No commercial Hospitality Supplies leased land with a total site area of mainly leased to various value Center (信基豪泰酒 approximately 100,438.00 sq.m. independent third parties (100% interest 店用品城) (please refer to note no. 1) and for commercial purpose. attributable located at various blocks buildings erected to the Company: Northern side of thereon completed in 2007. No commercial Yingbin Road, value) Shangjiao Village, The buildings have a total lettable Luopu Street, area of approximately 70,845.28 Panyu District, sq.m. Guangzhou City Guangdong The property is located at Guangzhou Province, City, near the Guangzhou the PRC Fisherman’s Wharf, with approximately 14km to Guangzhou South Train Station and 46km to Guangzhou Baiyun International Airport.

The land is leased to 廣州萬華房地產經營有限公司 (the former name of 廣州萬華酒店用品城有限公司), a wholly-owned subsidiary of the Company for a term commencing from 1 June 2006 and expiring on 31 May 2026.

– III-22 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

Notes:

1. Pursuant to 1 land use rights tenancy agreement dated 11 November 2004 and 5 supplementary agreements dated 28 September 2007, 15 June 2010 and 26 August 2010 entered into between 番禺區大石鎮上漖村經濟合作社 and 廣州萬華房地產經營有限公司, 1 parcel of land with a total site area of approximately 100,438.00 sq.m. were contracted to be assigned for a term commencing from 1 June 2006 and expiring on 31 May 2026 at a total monthly rent of RMB281,226 and a 5% increase every next year.

2. Pursuant to various tenancy agreements, the property with a total lettable area of approximately 70,845.28 sq.m. are mainly leased to various independent third parties for various terms with the latest expiry date 31 May 2026 at a total monthly rent of approximately RMB5,130,000 mainly for commercial purpose.

3. According to surveying report provided by the Company, the property has a total gross floor area of approximately 72,636.09 sq.m.

4. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

b. Applying the interpretation of the current Land Administration Law of the PRC by the Natural Resources of Guangdong Province Bureau, the tenancy agreement mentioned in note no. 1 are not prohibited by the current Land Administration Law of the PRC,the legality and validity of the lease shall not be impinged, and such lease shall be deemed legal and valid.

5. In undertaking our valuation, we have assigned no commercial value to the property since it could not be freely transferred in the market. For reference purpose, we are of the opinion that the estimated value of the property as at the valuation date would be RMB337,110,000, assuming the property could be freely transferred in the market.

6. In our valuation, we have made reference to some rental evidence and asking rent of similar properties in the locality which are in the region of RMB25 to RMB35 per sq.m./month on lettable area basis for storage purpose andRMB50toRMB85persq.m./monthonlettableareabasis for shop purpose. The market yield assumed by us is 8% which is in line with the market yield of this property sector in the region of 7% to 9%.

7. As confirmed by the Company, there are no material environmental and planning issues.

– III-23 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value Attributable to the Particulars of Group as at No. Property Description and tenure occupancy 31 August 2019 RMB

7. Xinji Dashi Home The buildings have a total lettable The property has been No commercial Furnishings Center area of approximately 24,779.16 mainly sub-leased to value (信基大石家私城) sq.m. various independent third (100% interest located at parties for commercial attributable No. 105 Guo Road, The property is located at Guangzhou purpose. to the Company: Dashi Street, City, near the Chimelong Safari Park, No commercial Panyu District, with approximately 9km to value) Guangzhou City Guangzhou South Train Station and Guangdong 46km to Guangzhou Baiyun Province, International Airport. the PRC Thepropertyisleasedto廣東信基家居有限公司, a wholly-owned subsidiary of the Company for a term commencing from 1 December 2018 and expiring on 30 November 2021.

Notes:

1. Pursuant to the tenancy agreement dated 1 December 2018 entered into between 廣州市番禺信基房產發展有限公司, a connected person of the Company and 廣東信基家居有限公司, the building with a total lettable area of approximately 24,893.95 sq.m. (Please refer to note no. 3) was leased to 廣東信基家居有限公司 for a term commencing from 1 December 2018 and expiring on 30 November 2021 at a total monthly rent of RMB460,181 and a 5% increase every next year.

2. Pursuant to various sub-tenancy agreements, the property with a total lettable area of approximately 24,576.16 sq.m. are leased to various independent third parties for various terms with the latest expiry date 31 July 2023 at a total monthly rent of approximately RMB965,000 mainly for commercial purpose.

3. The decrease in the lettable area from 24,893.95 sq.m. to 24,779.16 sq.m. was due to the conversion of approximately 114.79 sq.m. into part of the fire exit area of the building as agreed between the tenant, the local authorities and our Group.

4. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The validity of the tenancy agreement mentioned in note no. 1 will not be affected by the absence of house tenancy registration, however the portion of the property with a lettable area of approximately 1,720.00 sq.m. as stated in the tenancy agreement may be invalid due to the construction approval and construction acceptance have not been obtained.

5. In undertaking our valuation, we have assigned no commercial value to the property since it could not be freely transferred in the market. For reference purpose, we are of the opinion that the estimated value of the aforesaid lease period as at the valuation date would be RMB26,380,000, assuming the property could be freely transferred in the market.

6. In our valuation, we have made reference to some rental evidence and asking rent of similar properties in the locality which are in the region of RMB20 to RMB30 per sq.m./month on lettable area basis for storage purpose andRMB60toRMB80persq.m./monthonlettableareabasis for shop purpose. The market yield assumed by us is 6% which is in line with the market yield of this property sector in the region of 5% to 7%.

7. As confirmed by the Company, there are no material environmental and planning issues.

– III-24 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value Attributable to the Description Particulars of Group as at No. Property and tenure occupancy 31 August 2019 RMB

8. Portion of 1st to 3rd The building has a total lettable area The property was No commercial Floor of Xinjicheng of approximately 712.53 sq.m. occupied by the Group value Club (信基城會所) for office purpose. (100% interest located at No. 250 The property is located at Guangzhou attributable Nanda Road, City, near the Guangzhou to the Company: Dashi Street, Fisherman’s Wharf, with No commercial Panyu District, approximately 14km to Guangzhou value) Guangzhou City South Train Station and 46km to Guangdong Guangzhou Baiyun International Province, Airport. the PRC Thepropertyisleasedto廣州沙溪國際酒店用品城有限公司, a wholly- owned subsidiary of the Company for a term commencing from 1 January 2019 and expiring on 31 December 2021.

Notes:

1. Pursuant to the tenancy agreement dated 1 January 2019 entered into between 廣州市信基置業房地產開發有限公司, a connected person of the Company and 廣州沙溪國際酒店用品城有限公司, the building with a total lettable area of approximately 712.53 sq.m. were contracted to be assigned for a term commencing from 1 January 2019 and expiring on 31 December 2021 at a total monthly rent of RMB28,501.20 and a 5% increase every next year.

2. As advised by the Company’s PRC Legal Adviser, which contains, inter alia, the following:

a. The tenancy agreement mentioned in note no. 1 is valid, legal and binding.

3. As confirmed by the Company, there are no material environmental and planning issues.

– III-25 –