Appendix Iii Property Valuation Report

APPENDIX III PROPERTY VALUATION REPORT

The following is the text of a letter, a summary of values and valuation certificates, prepared for the purpose of incorporation in this prospectus received from Greater China Appraisal Limited, an independent valuer, in connection with its valuation as at 30 September 2014 of the real property interests of the Group.

Room 2703 Shui On Centre 6-8 Harbour Road Wanchai Hong Kong

31 December 2014

The Board of Directors Zhejiang Chang’an Renheng Technology Co., Ltd. 4/F, 5/F & 1602, Central Tower 28 Queen’s Road Central Hong Kong

Dear Sirs,

In accordance with the instructions from Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”) for us to value the real property interests which are held by or leased to the Company or its subsidiaries (together referred to as the “Group”) in the People’s Republic of China (“PRC”), we confirm that we have carried out inspections, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing the Company with our opinion of the market value of the real property interests as at 30 September 2014 (referred to as the “valuation date”) for inclusion in a Public Offering Document.

This letter which forms part of our valuation report explains the basis and methodology of valuation, and clarifies our assumptions made, title investigations of the real properties and the limiting conditions.

BASIS OF VALUATION

The valuation is our opinion of the market value which we would define as intended to mean “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”.

Market value is understood as the value of an asset or liability estimated without regard to costs of sale or purchase (or transaction) and without offset for any associated taxes or potential taxes.

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VALUATION METHODOLOGY

In valuing the real property Nos. 1 to 5 in Group I, due to the nature of buildings and structures of the real property interests, there is no readily identifiable market comparable to them. We have applied the cost method in valuing the real property interests on the basis of its depreciated replacement cost.

Depreciated replacement cost is defined as “the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimization.” It is based on an estimate of the market value for the existing use of the land, plus the current cost of replacing the improvements, less deductions for physical deterioration and all relevant forms of obsolescence and optimization. The reported market value only applies to the whole of the complex or development as a unique interest, and no piecemeal transaction of the complex or development is assumed. The depreciated replacement cost of the real property interest is subject to adequate potential profitability of the concerned business.

We have valued the real property No. 6 in Group I by the direct comparison approach assuming sale of such real property in its existing state with the benefit of immediate vacant possession and by making reference to comparable sale transactions as available in the relevant market.

In valuing the real property No. 7 in Group I, we have attributed no commercial value to the real property as the land use rights of the real property is allocated in nature and the transferability of such real property is restricted.

In valuing the real property in Group II, which is leased by the Group, we have attributed no commercial value to such property interest due either to the prohibition against assignments or sub-letting or otherwise due to lack of substantial profit rents.

ASSUMPTIONS

Our valuation has been made on the assumption that the owner sells the real property Nos. 1-6 on the open market in their existing states without the benefit of any deferred terms contracts, leaseback, joint ventures, management agreements or any similar arrangement which would serve to increase or reduce the value of the real property interests.

For the real property Nos. 1-6 which are held under long term land use rights, we have assumed that the owner of the real property interests has free and uninterrupted rights to use, transfer or lease the real property interests for the whole of the unexpired term of the respective land use rights. In our valuation, we have assumed that the real property interests can be freely disposed of, transferred and leased to third parties on the open market without any additional payment to the relevant government authorities.

All applicable zoning and use regulations and restrictions have been complied with unless nonconformity has been stated, defined, and considered in the valuation report.

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No environmental impact study has been ordered or made. Full compliance with applicable local, provincial and national environmental regulations and law is assumed. In addition, it is assumed that all required licences, consents or other legislative or administrative authorisation 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.

Other specific assumptions of the valuation, if any, have been stated out in the footnotes of the valuation certificates.

TITLESHIP INVESTIGATION

We have been provided with copies of legal documents regarding the title of the real properties in Group I. However, due to the current registration system of PRC, we are unable to conduct any search or investigations regarding the legal title or any liabilities attached to the real properties.

In the course of our valuation, we have relied upon the legal opinion provided by the Company’s PRC legal adviser – Shanghai AllBright Law Offices (上海市錦天城律師事務所) in relation to the legal title of the real properties.

All legal documents disclosed in this report are for reference only and no responsibility is assumed for any legal matters concerning the legal title to the real properties set out in this report.

LIMITING CONDITIONS

We have inspected the exterior and, where possible, the interior of the real properties. However, no structural survey has been made and we are therefore unable to report as to whether the real properties are free from rot, infestation or any other structural defects. No tests were carried out on any of the services.

We have not carried out detailed site measurements to verify the correctness of the areas in respect of the real properties but have assumed that the areas shown on the legal documents and the information provided to us are correct. Based on our experience of valuation of similar real properties, we consider the assumptions so made to be reasonable. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations.

No soil investigations have been carried out to determine the suitability of the ground conditions or the services for any property development. Our valuation has been prepared on the assumption that these aspects are satisfactory and that no unexpected cost and delay will be incurred during construction.

Having examined all relevant documentation, we have relied to a very considerable extent on the information provided by the Company and have accepted advice given to us by it on such matters as planning approvals, statutory notices, easements, tenures, lettings, rentals, occupations, site and floor areas and in the identification of the real properties. We were also advised by 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 have no reason to suspect that any material information has been withheld.

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

Since the real properties are located in a relatively developing market, PRC, those assumptions are often based on imperfect market evidence. A range of values may be attributable to the real property interests depending upon the assumptions made. While we have exercised our professional judgments in arriving at the value, report readers are urged to consider carefully the nature of such assumptions which are disclosed in the valuation report and should exercise caution in interpreting the valuation report.

OPINION OF VALUE

Our opinion of the market value of the real property interests is shown in the attached summary of values and valuation certificates.

REMARKS

Our valuation has been prepared in accordance with generally accepted valuation procedures and in compliance with the requirements contained in Chapter 8 of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited.

In valuing the real property interests, we have complied with the requirements contained in the HKIS Valuation Standards (2012 Edition) published by the Hong Kong Institute of Surveyors.

Site inspections of the real properties were conducted in May 2014 by Mr. Daniel W. H. Tang who is a Chartered Surveyor, Mr. C.P. Fan who is a cost engineer and Mr. Wesley Z. W. Li (MSc). The buildings of the real properties were maintained in a reasonable condition commensurate with its respective ages and uses and equipped with normal building services.

Unless otherwise stated, all monetary amounts are denominated in the currency of Renminbi (referred to as “RMB”).

We enclose herewith the summary of values and valuation certificates.

This valuation report is issued subject to our General Service Conditions.

Yours faithfully, For and on behalf of GREATER CHINA APPRAISAL LIMITED

Mr. Gary Man Registered Professional Surveyor (G.P.) HKIoD, FRICS, MHKIS, MCIREA Director

Note: Mr. Gary Man is a Chartered Surveyor who has more than 26 years of valuation experience in countries such as PRC, Hong Kong, Singapore, Vietnam, Philippines and the Asia Pacific region.

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SUMMARY OF VALUES

Group I – Real properties held by the Group for owner occupation in PRC

Market Value in existing state as at 30 September No. Real property 2014 RMB

1. A parcel of land, known as 10-17-55, and various buildings erected 5,210,000 thereon located at Xi Jie, Lincheng Town, Changxing County, Huzhou City, Zhejiang Province, the PRC 313112

2. 2 parcels of land, known as 18-16-3 and 18-704-2, various buildings 8,580,000 and structures erected thereon located at Bailian Village and Laoyatang, Sian Town, Changxing County, Huzhou City, Zhejiang Province, the PRC 313113

3. A parcel of land, known as 18-16-5, various buildings and structures 4,370,000 erected thereon located at Zaoshan Village, Sian Town, Changxing County, Huzhou City, Zhejiang Province, the PRC 313113

4. A parcel of land, known as Yangchu 2014-03 Hao, various buildings 7,480,000 and structures erected thereon located at Cao Cun Cun Nan, Fu Tu Jiang Village, Yangyuan County, Zhangjiakou City, Hebei Province, the PRC 075826

5. A parcel of land, known as Yangchu 2014-04 Hao, and a building 1,870,000 erected thereon located at Cao Cun Cun Nan, Fu Tu Jiang Village, Yangyuan County, Zhangjiakou City, Hebei Province, the PRC 075826

6. Unit 706 of Block 1 and car parking space Nos. 1-3 of Zone 18 on 3,850,000 Basement 1 Shipping International Administration Mansion, No. 618 Zhi Jiang Road, Shangcheng District, Hangzhou City, Zhejiang Province, the PRC 310008

7. Unit 1-102, Block 1, located at Qing Xi Jia Yuan, Tai Hu Road, Zhi No commercial value Cheng Town, Changxing County, Huzhou City, Zhejiang Province, the PRC 313100

Sub-total: RMB31,360,000

Group II – Real property leased and occupied by the Group in PRC

8. A parcel of land located at Cao Cun Cun Nan, Fu Tu Jiang Village, No Commercial Value Yangyuan County, Zhangjiakou City, Hebei Province, the PRC 075826

Sub-total: Nil

Total: RMB31,360,000

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VALUATION CERTIFICATES

Group I – Real properties held by the Group for owner occupation in PRC

Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

1. A parcel of land, The real property comprises a parcel of land (the As advised by the 5,210,000 known as 10-17-55, “Land Parcel”) with a site area of approximately Company, the real and various buildings 13,086.66 square metres and 36 blocks of property is (Renminbi Five erected thereon located building (the “Buildings”) erected thereon. The currently vacant. Million Two at Xi Jie, Lincheng Buildings were completed in various stages Hundred and Ten Town, Changxing between 1988 and 1990. Thousand) County, Huzhou City, Zhejiang Province, the The total gross floor area of the Buildings is PRC 313112 approximately 8,912.42 square metres, details of which are as follows:

Gross No. of No. of Floor Block Storey Area (square metres)

Office building 1 2 440.30 Workshop/ Warehouse 35 1 to 4 8,472.12

Total: 36 8,912.42

The land use rights of the Land Parcel have been granted for a term expiring on 26 February 2053 for industrial uses.

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Notes:

(i) According to an Asset Transfer Agreement, dated 20 December 2009 and entered into between Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”) and 長興縣天順糧油廠 (translated as Changxing County Tianshun Liangyou Factory) (“Party A”) and 王順森 (translated as Wang Shun Sen) (“Party B”), the land use rights of the Land Parcel with a site area of approximately 13,086.66 square metres and the ownership of the Buildings with a total gross floor area of approximately 8,912.42 square metres were contracted to be transferred to the Company from Party A and Party B respectively at a total consideration of RMB4,187,627.

(ii) According to a State-owned Land Use Rights Certificate, known as Chang Tu Guo Yong (2010) Di 01003379 Hao, dated 28 June 2010 and issued by the People’s Government of Changxing County, the land use rights of the Land Parcel with a site area of approximately 13,086.66 square metres have been granted to the Company for a term expiring on 26 February 2053 for industrial uses.

(iii) According to 12 sets of Building Ownership Certificate, known as Chang Fang Quan Zheng Lin Cheng Zi Di 00131520 to 00131531 Hao, dated 4 June 2010 and issued by the Real Estate Management Office of Changxing County, the ownership of the Buildings with a total gross floor area of approximately 8,912.42 square metres is held by the Company.

(iv) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) the Company has legally obtained the land use rights of the Land Parcel within the land use rights term set forth in the State-owned Land Use Rights Certificate mentioned in Note (ii). The Company has the rights to occupy, use, gain earnings, transfer, lease, mortgage or other ways to dispose of the land use rights of the Land Parcel legally within the land use rights term;

(b) pursuant to the regulations of PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose of the Buildings; and

(c) the real property is subject to a mortgage in favour of Shanghai Pudong Development Bank – Huzhou Changxing Sub-branch.

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

2. 2 parcels of land, The real property comprises 2 parcels of land As advised by the 8,580,000 known as 18-16-3 and (the “Land Parcels”) with a total site area of Company, the real 18-704-2, various approximately 11,503.86 square metres, 5 blocks property is (Renminbi Eight buildings and structures of building (the “Buildings”) and various currently occupied Million Five erected thereon located structures erected thereon. The Buildings and the by the Company Hundred and Eighty at Bailian Village and various structures were completed in various for production, Thousand) Laoyatang, Sian Town, stages between 2008 and 2013. storage and other Changxing County, associated uses. Huzhou City, Zhejiang The total gross floor area of the Buildings is Province, the PRC approximately 5,248.43 square metres, details of 313113 which are as follows:

Gross No. of No. of Floor Block Storey Area (square metres)

Office building 1 2 749.63 Workshop 2 1 3,911.04 Warehouse 2 1 587.76

Total: 5 5,248.43

The various structures mainly include internal roads, boundary walls, landscape features and pools.

The land use rights of the Land Parcels have been granted for terms expiring on 24 December 2050 and 2 August 2058 for industrial uses.

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Notes:

(i) According to 2 sets of State-owned Land Use Rights Certificate, known as Chang Tu Guo Yong (2010) Di 01800541 Hao and Chang Tu Guo Yong (2012) Di 01801927 Hao, dated 20 January 2010 and 30 March 2012 respectively and issued by the People’s Government of Changxing County, the land use rights of the Land Parcels with a total site area of approximately 11,503.86 square metres have been granted to Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”) for terms expiring on 24 December 2050 and 2 August 2058 for industrial uses.

(ii) According to 3 sets of Building Ownership Certificate, known as Chang Fang Quan Zheng Si An Zi Di 00127319, 00130382 and 00130383 Hao, dated 19 January 2010 or 21 April 2010 and issued by the Real Estate Management Office of Changxing County, the ownership of the Buildings with a total gross floor area of approximately 5,248.43 square metres is held by the Company.

(iii) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) the Company has legally obtained the land use rights of the Land Parcels within the land use rights terms set forth in the State-owned Land Use Rights Certificates mentioned in Note (i). The Company has the rights to occupy, use, gain earnings, transfer, lease, mortgage or other ways to dispose of the land use rights of the Land Parcels legally within the land use rights terms;

(b) pursuant to the regulations of PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose of the Buildings; and

(c) the real property is subject to a mortgage in favour of Industrial and Commercial Bank of China - Changxing Sub-branch.

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

3. A parcel of land, The real property comprises a parcel of land (the As advised by the 4,370,000 known as 18-16-5, “Land Parcel”) with a site area of approximately Company, the real various buildings and 6,673 square metres and a block of building (the property is (Renminbi Four structures erected “Building”) and various structures erected currently occupied Million Three thereon located at thereon. The Building and the various structures by the Company Hundred and Zaoshan Village, Sian were completed in about 2009. for storage and Seventy Thousand) Town, Changxing other associated County, Huzhou City, The gross floor area of the Building is uses. Zhejiang Province, the approximately 1,023.9 square metres. PRC 313113 The various structures mainly include internal roads, boundary walls and landscape features.

The land use rights of the Land Parcel have been granted for a term expiring on 14 January 2060 for industrial uses.

Notes:

(i) According to a State-owned Land Use Rights Certificate, known as Chang Tu Guo Yong (2012) Di 01801936 Hao, dated 30 March 2012 and issued by the People’s Government of Changxing County, the land use rights of the Land Parcel with a site area of approximately 6,673 square metres have been granted to Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”) for a term expiring on 14 January 2060 for industrial uses.

(ii) According to a Building Ownership Certificate, known as Chang Fang Quan Zheng Si An Zi Di 00130380 Hao, dated 21 April 2010 and issued by the Real Estate Management Office of Changxing County, the ownership of the Building with a gross floor area of approximately 1,023.9 square metres is held by the Company.

(iii) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) the Company has legally obtained the land use rights of the Land Parcel within the land use rights term set forth in the State-owned Land Use Rights Certificate mentioned in Note (i). The Company has the rights to occupy, use, gain earnings, transfer, lease, mortgage or other ways to dispose of the land use rights of the Land Parcel legally within the land use rights term;

(b) pursuant to the regulations of PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose of the Building; and

(c) the real property is subject to a mortgage in favour of Industrial and Commercial Bank of China - Changxing Sub-branch.

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

4. A parcel of land, The real property comprises a parcel of land (the As advised by the 7,480,000 known as Yangchu “Land Parcel”) with a site area of approximately Company, the real 2014-03 Hao, various 17,451.3 square metres and 6 blocks of single property is (Renminbi Seven buildings and structures storey building (the “Buildings”) and various currently occupied Million Four erected thereon located structures erected thereon. The Buildings and the by the Company Hundred and Eighty at Cao Cun Cun Nan, various structures were completed in various for production, Thousand) Fu Tu Jiang Village, stages between 2012 and 2014. storage and other Yangyuan County, associated uses. Zhangjiakou City, The total gross floor area of the Buildings is Hebei Province, the approximately 6,280.08 square metres. PRC 075826 The various structures mainly include internal roads, boundary walls, landscape features, pools and pipes.

The land use rights of the Land Parcel have been granted for a term expiring on 7 May 2064 for industrial uses.

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Notes:

(i) According to a State-owned Construction Land Use Rights Grant Contract, known as C13072720140002, dated 7 May 2014 and entered into between the Land Resources Bureau of Yangyuan County and 陽原縣仁恒精細粘土有限責任公司 (translated as “Yangyuan Renheng Fine Clay Co., Ltd.”) (the “Yangyuan Renheng Fine Clay”), the land use rights of the Land Parcel with a site area of approximately 17,451.3 square metres were contracted to be granted to Yangyuan Renheng Fine Clay for a term of 50 years for industrial uses at a consideration of RMB1,730,000.

(ii) According to a State-owned Land Use Rights Certificate, known as Yang Guo Yong (2014) Di 05-01 Hao, dated 23 May 2014 and issued by the People’s Government of Yangyuan County, the land use rights of the Land Parcel with a site area of approximately 17,451.3 square metres have been granted to Yangyuan Renheng Fine Clay for a term expiring on 7 May 2064 for industrial uses.

(iii) According to a Building Ownership Certificate, known as Yang Fang Quan Zheng Zi Guan Chan Zi Di 000469 Hao, dated 23 May 2014 and issued by 陽原縣房屋確權發證辦公室 (translated as “Yangyuan County Housing Rights Confirmation and Issuance Office”), the ownership of the Buildings with a total gross floor area of approximately 6,280.08 square metres is held by Yangyuan Renheng Fine Clay.

(iv) As advised by the Company, Yangyuan Renheng Fine Clay is the former name of Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”).

(v) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(b) pursuant to the regulations of PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose of the Buildings; and

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

5. A parcel of land, The real property comprises a parcel of land (the As advised by the 1,870,000 known as Yangchu “Land Parcel”) with a site area of approximately Company, the real 2014-04 Hao, and a 2,998.27 square metres and a block of building property is (Renminbi One building erected thereon (the “Building”) erected thereon. The Building currently occupied Million Eight located at Cao Cun was completed in about 2014. by the Company Hundred and Cun Nan, Fu Tu Jiang for production Seventy Thousand) Village, Yangyuan The gross floor area of the Building, which is a uses. County, Zhangjiakou single storey workshop, is approximately 1,596 City, Hebei Province, square metres. the PRC 075826 The land use rights of the Land Parcel have been granted for a term expiring on 7 May 2064 for industrial uses.

Notes:

(i) According to a State-owned Construction Land Use Rights Grant Contract, known as C13072720140003, dated 7 May 2014 and entered into between the Land Resources Bureau of Yangyuan County and 陽原縣仁恒精細粘土有限責任公司 (translated as “Yangyuan Renheng Fine Clay Co., Ltd.”) (the “Yangyuan Renheng Fine Clay”), the land use rights of the Land Parcel with a site area of approximately 2,998.27 square metres were contracted to be granted to Yangyuan Renheng Fine Clay for a term of 50 years for industrial uses at a consideration of RMB300,000.

(ii) According to a State-owned Land Use Rights Certificate, known as Yang Guo Yong (2014) Di 05-02 Hao, dated 23 May 2014 and issued by the People’s Government of Yangyuan County, the land use rights of the Land Parcel with a site area of approximately 2,998.27 square metres have been granted to Yangyuan Renheng Fine Clay for a term expiring on 7 May 2064 for industrial uses.

(iii) According to a Building Ownership Certificate, known as Yang Fang Quan Zheng Zi Guan Chan Zi Di 000468 Hao, dated 23 May 2014 and issued by 陽原縣房屋確權發證辦公室 (translated as “Yangyuan County Housing Rights Confirmation and Issuance Office”), the ownership of the Building with a gross floor area of approximately 1,596 square metres is held by Yangyuan Renheng Fine Clay.

(iv) As advised by the Company, Yangyuan Renheng Fine Clay is the former name of Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”).

(v) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(b) pursuant to the regulations of PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose of the Building; and

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

6. Unit 706 of Block 1 The real property comprises an office unit on As advised by the 3,850,000 and car parking space Level 5 and a mechanical car park on basement Company, the real Nos. 1-3 of Zone 18 on level of a 26-storey commercial building plus a property is (Renminbi Basement 1 Shipping 2-level basement. The building was completed in occupied by the Three Million International about 2013. Company for Eight Hundred and Administration office and car Fifty Thousand) Mansion, No. 618 Zhi The total gross floor area of the office unit is parking uses. Jiang Road, approximately 183.36 square meters. (See Note (vi)) Shangcheng District, Hangzhou City, The land use rights of the office portion of the Zhejiang Province, the real property have been granted for a term PRC 310008 expiring on 16 February 2055 for composite (office) uses.

Notes:

(i) According to a Zhejiang Province Commodity Housing Sales Contract, known as No. 2013 Yu 1209391, dated 26 March 2013 and entered into between 浙江省錢江船舶有限公司 (translated as Zhejiang Province Qianjiang Shipping Co., Ltd.) and Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”), the land use rights and the building ownership of the office unit of the real property with a gross floor area of approximately 183.36 square metres were contracted to be transferred to the Company for a term expiring on 16 February 2055 for office uses at a consideration of RMB3,749,345.

(ii) According to a State-owned Land Use Rights Certificate, known as Hang Shang Guo Yong (2014) Di 002879 Hao, dated 4 June 2014 and issued by the People’s Government of Hangzhou City, the land use rights of the office unit of the real property with an allocated site area of approximately 14 square metres have been granted to the Company for a term expiring on 16 February 2055 for composite (office) uses.

(iii) According to a Building Ownership Certificate, known as Hang Fang Quan Zheng Shang Yi Zi Di 14746770 Hao issued by Hangzhou Housing Security and Management Bureau, the ownership of the office unit of the real property with a gross floor area of approximately 183.36 square metres is held by the Company.

(iv) According to a Transfer Agreement for a rights to use Shipping International Administration Mansion Mechanical Car Park (the “Transfer Agreement”), dated 9 January 2014 and entered into between Zhejiang Province Qianjiang Shipping Co., Ltd. and the Company, the rights to use the mechanical car park were contracted to be transferred to the Company at a consideration of RMB302,291. The Transfer Agreement contains, inter alia, the following salient covenants:

(a) pursuant to the relevant regulations, the title ownership certificate or the land use rights certificate of the mechanical car park could not been processed;

(b) Such mechanical car park is located within the civil air defence area; and

(c) The rights to use such mechanical car park can only be transferred or leased to the owner or the occupier of the subject building.

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(v) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) the Company has legally obtained the land use rights of the office portion of the real property within the land use rights term set forth in the State-owned Land Use Rights Certificate mentioned in Note (ii). The Company has the rights to occupy, use, gain earnings, transfer, lease, mortgage or other ways to dispose of the land use rights of the office portion of the real property legally within the land use rights term;

(b) pursuant to the regulations of the PRC law and statutes, the Company has the rights to occupy, use, transfer, gift, lease, mortgage or other ways to legally dispose the office portion of the real property;

(c) the Company has the rights to occupy and use the car parking portion of the real property within the term as set forth in the Transfer Agreement; and

(d) the building ownership of the real property as mentioned in Note (iii) above is subject to a mortgage in favour of Bank of Hangzhou.

(vi) Having considered the aforesaid legal opinion and the fact that a long-term land use rights certificate of the car parking portion of the real property could not been obtained, we have attributed no commercial value to such car parking portion. However, for reference purpose, we are of the opinion that the market value of such car parking portion as at the valuation date would be in the region of RMB250,000 assuming such car park could be transferred to the owner or the occupier of the subject building.

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Market value in Particulars of existing state as at No. Real property Descriptions and tenure occupancy 30 September 2014 RMB

7. Unit 1-102, Block 1 The real property comprises a residential unit on As advised by the No Commercial located at Qing Xi Jia Level 1 of a 5-storey residential building plus a Company, the real Value Yuan, Tai Hu Road, basement and a cockloft, which was completed property is Zhi Cheng Town, in about 2006. currently occupied (see Note (iv)) Changxing County, by the Company Huzhou City, Zhejiang The total gross floor area of the real property is for residential and Province, PRC 313100 approximately 55.85 square meters. parking uses.

The land use rights of the real property have been allocated for township residential uses.

Notes:

(i) According to a State-owned Land Use Rights Certificate, known as Chang Tu Guo Yong (2013) Di 00106438 Hao, dated 27 August 2013 and issued by the People’s Government of Changxing County Zhejiang Province, the land use rights of the real property with a site area of approximately 40.89 square metres were allocated to Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”) for township residential uses.

(ii) According to a Building Ownership Certificate, known as Chang Fang Quan Zheng Tai Hu Zi Di 00195915 Hao, dated 23 August 2013 and issued by the Real Estate Management Office of Changxing County, the building ownership of the real property with a gross floor area of approximately 55.85 square metres is held by the Company.

(iii) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) The Company has legally obtained the land use rights of the real property. According to the land usage stated in the State-owned Land Use Rights Certificate mentioned in Note (i), the Company has the rights to occupy and use such land parcel;

(b) Upon completion of land use rights grant procedures and settled the land premium of the land use rights or settled the land premium by the earnings gained from transferring, leasing or mortgaging the land use rights of the real property subject to the approval of the local county level or above of the People’s Government, the Company has the rights to transfer, lease or mortgage of such land use rights legally and has the rights to transfer, gift, lease, mortgage or other ways to dispose of the building ownership legally; and

(iv) Having considered the aforesaid legal opinion and the fact that the allocated land nature of the real property, we have attributed no commercial value to the real property in our valuation.

- III-16 - APPENDIX III PROPERTY VALUATION REPORT

Group II – Real property leased and occupied by the Group in PRC

Market value in existing state as at No. Real property Descriptions and occupancy 30 September 2014 RMB

8. A parcel of land, located The real property comprises a parcel of land with a site area of No Commercial Value at Cao Cun Cun Nan, Fu approximately 129,550 square metres. Tu Jiang Village, Yangyuan County, According to the information provided by the Company, the real Zhangjiakou City, Hebei property is leased to the Group from an independent third party Province, the PRC 075826 for a term of 30 years commencing on 10 May 2011 and expiring on 9 May 2041 at an annual rental of RMB2,666.67.

As advised by the Company, the real property is currently occupied by the Group as a drying yard.

Notes:

(i) According to a 土地承包合同 (translated as Land Use Contract) dated 10 May 2011 and entered into between 陽原縣浮圖講鄉槽村村民委員會 (translated as “Villagers Committee of Cao Cun, Fu Tu Jiang Village, Yangyuan”) (the “Villagers Committee”) and 陽原縣仁恒精細粘土有限責任公司 (translated as “Yangyuan Renheng Fine Clay Co., Ltd.”) (the “Yangyuan Renheng Fine Clay”), the real property with a site area of approximately 150,000 square metres were leased to Yangyuan Renheng Fine Clay for a term of 30 years at an annual rental of RMB2,666.67.

(ii) According to a 土地承包合同補充協議 (translated as Supplemental Agreement of the Land Use Contract) dated 30 May 2014 and entered into between Villagers Committee and Yangyuan Renheng Fine Clay, land area of approximately 20,449.57 square metres were excluded from the land as mentioned in Note (i) above.

(iii) As advised by the Company, Yangyuan Renheng Fine Clay is the former name of Zhejiang Chang’an Renheng Technology Co., Ltd. (the “Company”).

(iv) We have been provided with a legal opinion regarding the real property issued by the Company’s legal adviser, which contains, inter alia, the following:

(a) the Land and Resource Bureau of Yangyuan County confirmed that the Land Use Contract is legal and valid;

(b) the Villagers Committee has the rights to lease the real property to Yangyuan Renheng Fine Clay;

(c) the use of the real property by Yangyuan Renheng Fine Clay complies with the relevant regulations of the PRC laws and statutes, and is valid; and

(d) according to a confirmation letter dated 14 June 2014 and issued by the Company, within the term stated in the aforesaid Land Use Contract, the Company will not sub-lease, lease, exchange or by shares to transfer the real property. Such confirmation complies with the relevant regulations of the PRC laws and statutes and is legal and valid.

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