THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your stockbroker or other registered securities dealer, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in CHTC Fong’s Industries Company Limited, you should at once hand this circular with the enclosed form of proxy to the purchaser or transferee or to the bank, licensed securities dealer or other agent through whom the sale or the transfer was effected for transmission to the purchaser or transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

CHTC FONG’S INDUSTRIES COMPANY LIMITED 恒天立信工業有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 641)

DISCLOSEABLE AND CONNECTED TRANSACTION AND NOTICE OF SPECIAL GENERAL MEETING

Independent Financial Adviser to the Independent Board Committee and the Independent Shareholders

A letter from the board of directors of CHTC Fong’s Industries Company Limited is set out on pages 4 to 20 of this circular. A letter from the Independent Board Committee containing its recommendation to the Independent Shareholders is set out on pages 21 to 22 of this circular. A letter from the Independent Financial Adviser containing its advice and recommendation to the Independent Board Committee and the Independent Shareholders is set out on pages 23 to 38 of this circular.

A notice convening the SGM to be held at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong on Tuesday, 11 August 2015 at 11:00 a.m. is set out on pages SGM-1 to SGM-2 of this circular. A form of proxy for use at the SGM is enclosed with this circular.

Whether or not you are able to attend the SGM, you are requested to complete the accompanying form of proxy in accordance with the instructions printed thereon and return it to the principal place of business of the Company in Hong Kong at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong as soon as possible but in any event not later than 48 hours before the appointed time for holding the SGM or any adjournment thereof. Completion and return of the form of proxy will not preclude you from attending and voting in person at the SGM or any adjournment thereof should you so wish.

24 July 2015 CONTENTS

Page

Definitions ...... 1

Letter from the Board ...... 4

Letter from the Independent Board Committee ...... 21

LetterfromQuamCapital ...... 23

Appendix I – Property Valuation Report ...... I-1

Appendix II – General Information ...... II-1

Notice of Special General Meeting ...... SGM-1

– i – DEFINITIONS

In this circular, unless the context otherwise requires, the following expressions shall have the following meanings:

‘‘Acquisition’’ the acquisition by the Purchaser of the Sale Shares pursuant to the terms and conditions of the Agreement

‘‘Agreement’’ the sale and purchase agreement dated 25 June 2015 entered into between the Purchaser and the Vendors in relation to the Acquisition

‘‘associate(s)’’ has the meaning ascribed to it under the Listing Rules

‘‘Board’’ the board of Directors

‘‘Business Day’’ a day (other than a Saturday or Sunday or any day on which a tropical cyclone warning no. 8 or above, or a ‘‘black’’ rainstorm warning, is hoisted or remains hoisted between 9:00 a.m. and 12:00 noon and is not lowered or discontinued at or before 12:00 noon) on which licensed banks are generally open for business in Hong Kong throughout their normal business hours

‘‘Bye-laws’’ the bye-laws of the Company

‘‘close associate(s)’’ has the meaning ascribed to it under the Listing Rules

‘‘Company’’ CHTC Fong’s Industries Company Limited, a company incorporated in Bermuda with limited liability, the issued shares of which are listed on the Main Board

‘‘Completion’’ completion of the Acquisition

‘‘connected person(s)’’ has the meaning ascribed to it under the Listing Rules

‘‘Consideration’’ the aggregate consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000) for the sale and purchase of the Sale Shares under the Agreement

‘‘Director(s)’’ the director(s) of the Company

‘‘Group’’ the Company and its subsidiaries

‘‘Hengtian Real Estate’’ 恒天地產有限公司 (Hengtian Real Estate Company Limited*), a company incorporated in the PRC and the attributable interest of it held by the Parent Company is 47.35% as at the Latest Practicable Date

‘‘HK$’’ Hong Kong dollar, the lawful currency of Hong Kong

– 1 – DEFINITIONS

‘‘Hong Kong’’ the Hong Kong Special Administrative Region of the PRC

‘‘Independent Board Committee’’ the independent committee of the Board comprising all independent non-executive Directors, namely Mr. Ying Wei,Dr.YuenMingFaiandMr.LiJianxin,establishedto provide recommendation to the Independent Shareholders in relation to the Agreement and the transactions contemplated thereunder

‘‘Independent Shareholder(s)’’ Shareholder(s) other than the Parent Company and its associate(s)

‘‘Latest Practicable Date’’ 21 July 2015, being the latest practicable date prior to the printing of this circular for ascertaining certain information in this circular

‘‘Listing Rules’’ the Rules Governing the Listing of Securities on the Stock Exchange

‘‘Main Board’’ the Main Board of the Stock Exchange

‘‘Parent Company’’ 中 國 恒 天 集 團 有 限 公 司 (China Hi-Tech Group Corporation), the controlling shareholder of the Company holding approximately 55.80% of the entire issued share capital of the Company as at the Latest Practicable Date

‘‘PRC’’ the People’s Republic of China

‘‘PRC GAAP’’ generally accepted accounting principles in the PRC

‘‘Purchaser’’ 立 信 染 整 機 械（ 深 圳 ）有 限 公 司 (Fong’s National Engineering (Shenzhen) Company Limited*), a wholly- owned subsidiary of the Company

‘‘Quam Capital’’ or ‘‘Independent Quam Capital Limited, a corporation licensed to carry out Financial Adviser’’ Type 6 (advising on corporate finance) regulated activity under the SFO, being the independent financial adviser to the Independent Board Committee and the Independent Shareholders in respect of the Agreement and the transactions contemplated thereunder

‘‘RMB’’ Renminbi, the lawful currency of the PRC

‘‘Sale Shares’’ 100% of the paid up registered capital of the Target

‘‘SFO’’ the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)

– 2 – DEFINITIONS

‘‘SGM’’ the special general meeting of the Company to be held to consider and, if thought fit, to approve the Agreement and the transactions contemplated thereunder

‘‘Share(s)’’ ordinary share(s) of HK$0.05 each in the capital of the Company

‘‘Shareholder(s)’’ registered holder(s) of the Shares

‘‘Stock Exchange’’ The Stock Exchange of Hong Kong Limited

‘‘Target’’ 佛山市禪華德信息科技有限公司 (Foshan City Chanhuade Information Technology Limited*), a company incorporated in the PRC

‘‘Vendors’’ 北京華德投資有限公司 (Beijing Huade Investment Co., Ltd.*), a company incorporated in the PRC, holding 75% paid up registered capital of the Target; and 佛山市匯銀金盛投資有限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*), a company incorporated in the PRC, holding 25% paid up registered capital of the Target

‘‘%’’ per cent

Unless otherwise specified and for illustration purpose only, the conversion of RMB into HK$ adopted in this circular is based on the approximate exchange rate of RMB1.00 to HK$1.25. Such conversion should not be construed as a representation that the currency could actually be converted to HK$ at that rate or at all.

All English translations of Chinese names in this circular marked with ‘‘*’’ are not official English names and are for identification purpose only.

– 3 – LETTER FROM THE BOARD

CHTC FONG’S INDUSTRIES COMPANY LIMITED 恒天立信工業有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 641)

Executive Directors: Registered office: Mr. Shi Tinghong (Chairman) Canon’sCourt Mr. Ji Xin (Chief Executive Officer) 22 Victoria Street Mr. Wan Wai Yung Hamilton HM 12 Mr. Fong Kwok Leung, Kevin Bermuda

Non-Executive Director: Head office and principal Mr. Ye Maoxin (Vice-Chairman) place of business: 8th Floor Independent Non-executive Directors: 22-28 Cheung Tat Road Mr. Ying Wei Tsing Yi Dr.YuenMingFai Hong Kong Mr. Li Jianxin

24 July 2015

To the Shareholders

Dear Sirs or Madam,

DISCLOSEABLE AND CONNECTED TRANSACTION AND NOTICE OF SPECIAL GENERAL MEETING

INTRODUCTION

On 25 June 2015, the Board was pleased to announce that the Purchaser, a wholly-owned subsidiary of the Company, entered into the Agreement with the Vendors pursuant to which the Purchaser has conditionally agreed to acquire the Sale Shares (representing 100% of the paid up registered capital of the Target) from the Vendors at the aggregate consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000).

– 4 – LETTER FROM THE BOARD

The Target is a substantial shareholder, holding 13.26% paid up registered capital, of Hengtian Real Estate. As the attributable interest of Hengtian Real Estate held by the Parent Company is 47.35%, the acquisition of the Target constitutes a connected transaction for the Company under Rule 14A.28 of the Listing Rules. As the highest applicable percentage ratio in respect of the Acquisition is more than 5% but less than 25%, the Acquisition also constitutes a discloseable transaction for the Company. Accordingly, the Acquisition is subject to the reporting, announcement and independent shareholders’ approval requirements under the Listing Rules.

The purposes of this circular are to provide you with (i) further details of the Agreement and the transactions contemplated thereunder; (ii) the letter of recommendation from the Independent Board Committee in respect of the Acquisition; (iii) the recommendation of the Independent Financial Adviser regarding the terms of the Acquisition; (iv) the property valuation report; and (v) other information as required under the Listing Rules, together with the notice of the SGM and the accompanying form of proxy.

THE AGREEMENT

Date

25 June 2015

Parties

Vendors: 北京華德投資有限公司 (Beijing Huade Investment Co., Ltd.*), a company incorporated in the PRC, holding 75% paid up registered capital of the Target; and

佛山市匯銀金盛投資有限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*), a company incorporated in the PRC, holding 25% paid up registered capital of the Target

Purchaser: 立信染整機械（深圳）有限公司 (Fong’s National Engineering (Shenzhen) Company Limited*), a wholly-owned subsidiary of the Company

Mr. Xiang Dejun, a director and the legal representative of the Target is also a director and the chief executive officer of Hengtian Real Estate. Save as disclosed above, to the best of the Directors’ knowledge, information and belief having made all reasonable enquiry, the Vendors and their ultimate beneficial owners are third parties independent of the Company and its connected persons.

– 5 – LETTER FROM THE BOARD

Subject matter

The Purchaser has conditionally agreed to acquire, and the Vendors have conditionally agreed to sell, the Sale Shares representing 100% of the paid up registered capital of the Target, subject to the terms and conditions of the Agreement.

The Target is a substantial shareholder, holding 13.26% paid up registered capital, of Hengtian Real Estate. As the attributable interest of Hengtian Real Estate held by the Parent Company is 47.35%, Hengtian Real Estate is a connected person of the Company under Chapter 14A of the Listing Rules.

The following chart summarises the effective shareholding structure of Hengtian Real Estate immediately prior to the Acquisition:

中國恒天集團有限公司 (China Hi-Tech Group Corporation)

87.57%

中國紡織機械（集團） 有限公司 (China Textile Machinery (Group) Company Limited*)

31.13% 2.7%

佛山市匯銀金盛 經緯紡織機械股份有限公司 北京華德投資有限公司 投資有限公司 (Jingwei Textile Machinery (Beijing Huade (Foshan City Huiyin Jinsheng Company Limited) Investment Co., Ltd.*) Investment Co., Ltd.*)

90.62% 9.38% 75% 25%

佛山市禪華德信息 恒天資產管理有限公司 佛山華德金匯投資有限公司 科技有限公司 北京廣合置業有限公司 (Hengtian Assets (Foshan City Huade Jinhui (Foshan City Chanhuade (Beijing Guanghe Management Investment Limited*) Information Technology Real Estate Limited*) Company Limited*) Limited*)

28.57% 22.86% 23.31% 13.26% 12%

恒天地產 (Hengtian Real Estate)

– 6 – LETTER FROM THE BOARD

The following chart summarises the effective shareholding structure of Hengtian Real Estate immediately after the Acquisition:

中國恒天集團有限公司 (China Hi-Tech Group Corporation)

100%

China Hi-Tech Holding Company Limited 87.57%

中國紡織機械（集團） 100% 有限公司 (China Textile Machinery (Group) Company Limited*) Newish Trading Limited

32.45% 23.35%

31.13% 2.7% the Company 經緯紡織機械股份有限公司 (Jingwei Textile Machinery Company Limited) 100% (Indirect holding) 立信染整機械（深圳） 有限公司 (Fong’s National Engineering (Shenzhen) Company Limited*) 90.62% 9.38% 100% 佛山市禪華德信息 恒天資產管理有限公司 佛山華德金匯投資有限公司 科技有限公司 北京廣合置業有限公司 (Hengtian Assets (Foshan City Huade Jinhui (Foshan City Chanhuade (Beijing Guanghe Management Investment Limited*) Information Technology Real Estate Limited*) Company Limited*) Limited*)

28.57% 22.86% 23.31% 13.26% 12%

恒天地產 (Hengtian Real Estate)

– 7 – LETTER FROM THE BOARD

Consideration

The aggregate consideration is RMB146,139,690 (equivalent to approximately HK$182,675,000). The Consideration will be settled in cash. The amounts payable to the Vendors on the date of Completion are as follows:-

Vendors Amount

北京華德投資有限公司 (Beijing Huade Investment Co., Ltd.*) RMB109,604,767.50

佛山市匯銀金盛投資有限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*) RMB36,534,922.50

The Consideration was determined after arm’s length negotiations between the Vendors and the Purchaser and by reference to, amongst other things, the Target’s initial capital investment in Hengtian Real Estate on 15 May 2010 and a preliminary valuation of 13.26% interest in the property interests held by Hengtian Real Estate as at 30 April 2015 by 北京中資房地產土地評估 有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd*), a firm of independent professional valuers. The final valuation report in respect of real properties held by Hengtian Real Estate as assessed by 北京中資房地產土地評估有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd*) is set out in Appendix I to this circular. The final valuation of 13.26% interest of Hengtian Real Estate’s real properties as at 30 April 2015 was RMB166,517,881 (equivalent to approximately HK$208,147,351), based on the valuation methodology as set out in the property valuation report set out in Appendix I to this circular. Based on the final valuation, the adjusted net asset value of 13.26% interest of Hengtian Real Estate as at 30 April 2015 is in excess of the Target’s initial capital investment in Hengtian Real Estate as at 15 May 2010.

– 8 – LETTER FROM THE BOARD

The table below sets out the real property interests held by Hengtian Real Estate as at the Latest Practicable Date:-

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

1 中國北京朝陽區水郡長安家園1號院4號樓文化 13.26% 4,752,032 活動站（會所） (Cultural Activity Centre (Club), Building No. 4, Yard No. 1, Shuijun Chang An JiaYuan, Chaoyang District, Beijing, the PRC*)

2 中國北京朝陽區雙橋路水郡長安家園地下車庫 13.26% 5,406,609 (Underground Garage, Shuijun Chang An JiaYuan, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

3 中國陝西省渭南市臨渭區華山大街北恒天首府 5.304% 7,201,666 一期 (Hengtian Shoufu Phase I, North Huashan Avenue, Linwei District, Weinan, Shaanxi Province, the PRC*)

4 中國浙江省嘉興市嘉善縣惠民街道泰山路嘉善 6.7626% 13,153,568 恒天花園里 (Jiashan Hengtian Garden Lane, Taishan Road, Huimin Street, Jiashan County, Jiaxing City, Zhejiang Province, the PRC*)

– 9 – LETTER FROM THE BOARD

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

5 中國陝西省咸陽市渭城區人民中路16號中宏國 13.26% 46,145,962 際廣場A座高層住宅樓、B座高層住宅樓、商業 裙樓以及地下車庫 (Zhong Hong International Plaza, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC, comprised of Block A, a High-rise Residential Building, and Block B, a High-rise Residential Building, a Commercial Podium and an Underground Garage*)

6 中國江蘇省宿遷市泗陽縣洋河南路10號恒天‧ 6.7626% 10,112,495 香緹花園一期 (Hengtian Xiangti Garden Phase I, 10 Yanghe Nan Road, Siyang County, Suqian City, Jiangsu Province, the PRC*)

7 中國陝西省咸陽市渭城區人民中路16號中宏麗 13.26% 4,923,208 舍T3、T4號樓 (Building Nos. T3, T4 of Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

8 中國陝西省咸陽市渭城區人民中路16號北區商 13.26% 342,412 業區土地及地上建築物 (Land of and the structures thereon of Northern District of Commercial Zone, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

– 10 – LETTER FROM THE BOARD

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

9 中國江蘇省宿遷市泗陽縣洋河南路10號 6.7626% 11,478,646 恒天‧香緹花園後期土地 (The later phase of the land of Hengtian Xiangti Garden, 10 Yanghe Nan Road, Siyang County, Suqian City, Jiangsu Province, the PRC*)

10 中國陝西省渭南市臨渭區華山大街北恒天首府 5.304% 9,217,075 二期及三期土地 (Lands of Hengtian Shoufu Phase II and Phase III, North Huashan Avenue, Linwei District, Weinan City, Shaanxi Province, the PRC*)

11 中國江西省南昌市紅谷灘新區九龍湖片區西部 6.7626% 23,759,292 大街以南、城運大道以西土地 (Land of Honggutan New District (South of the street in the western part of Jiulonghu area and west of Cheng Yun Avenue), Nanchang City, Jiangxi Province, the PRC*)

12 中國陝西省咸陽市渭城區人民中路16號 13.26% 655,283 中宏大廈22及23層 (Floors 22 and 23, Zhonghong Tower, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

13 中國陝西省咸陽市秦都區寶泉路中宏星苑二期3 13.26% 50,958 號樓2單元102室 (Room 102, Unit 2, Building No. 3, Phase II, Zhong Hong Xing Yuan, Baoquan Road, Qindu District, Xianyang City, Shaanxi Province, the PRC*)

– 11 – LETTER FROM THE BOARD

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

14 中國上海市徐匯區漕寶路400號上海明申廣場 6.7626% 674,191 1203室、1204室、1205室及1206室 (Rooms 1203, 1204, 1205 & 1206, Mingshen Plaza, 400 Caobao Road, Xuhui District, Shanghai City, the PRC*)

15 中國北京朝陽區雙橋路水郡長安家園2號院1號 13.26% 0 樓202、203及302室 (Rooms 202, 203 & 302, Building No. 1, Yard No. 2, Shuijun Chang An JiaYuan, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

16 中國河南省鄭州市中原區天山路東，牛莊路南 6.63% 7,105,168 保利百合花園未售部份 (Unsold portion of Poly Baihe Garden, Niuzhuang Road South and Tianshan Road East, Zhongyuan District, Zhengzhou City, Henan Province, the PRC*)

17 中國陝西省咸陽市渭城區人民中路16號中宏麗 13.26% 13,657,066 舍T7、T10、T11號樓及U2地下車庫未售部份 (Unsold portion of Building Nos. T7, T10, T11, and No. U2 underground garage of Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

18 中國陝西省咸陽市秦都區寶泉路中宏星苑二期3 13.26% 268,324 棟1601號房 (Unit 1601, Building 3, Phase II, Zhong Hong Xing Yuan, Baoquan Road, Qindu District, Xianyang City, Shaanxi Province, the PRC*)

– 12 – LETTER FROM THE BOARD

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

19 中國陝西省咸陽市渭城區人民中路16號中宏麗 13.26% 857,053 舍T5、T6號樓未售部份 (Unsold portion of Building Nos. T5, T6 of ZhongHongLiShe,16RenminZhongRoad, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

20 中國陝西省咸陽市渭城區人民中路16號中宏麗 13.26% 1,829,353 舍T9號樓地下車庫未售部份 (Unsold portion of the underground garage of Building No. T9, Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

21 中國北京市朝陽區雙橋路水郡長安2號院5號樓2 13.26% 532,813 單元302室 (Room 302, Unit 2, Building No. 5, Yard No. 2, Shuijun Chang An, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

22 中國北京市朝陽區北沙灘大屯路36號 13.26% 66,475 華源凱旋園1號樓儲蓄所用房 (A savings office in Building No. 1, Hua Yuan Kai Xuan Garden, 36 Datun Road, Beishatan, Chaoyang District, Beijing, the PRC*)

23 中國北京市朝陽區北沙灘大屯路36號 13.26% 4,193,583 華源凱旋園2號樓未售部份 (Unsold portion of Building No. 2, Hua Yuan Kai Xuan Garden, 36 Datun Road, Beishatan, Chaoyang District, Beijing, the PRC*)

– 13 – LETTER FROM THE BOARD

Effective stake Market value in held by the existing state Target as at attributable to the Latest the Target as at Practicable Date 30 April 2015 RMB

Real property interests held by Hengtian Real Estate

Property Location No.

24 中國吉林省延吉市長白路2號恒天‧玫瑰園二期 4.641% 134,649 未售部份 (Unsold portion of Phase II of ‘‘Hengtian Rose Garden’’, 2 Changbai Road, Yanji City, Jilin Province, the PRC*)

25 中國北京朝陽區建國路99號中服大廈寫字樓 – No commercial 第20層 value (An office on Floor 20, China Garments Mansion, 99 Jianguo Road, Chaoyang District, Beijing, the PRC*)

26 中國山東省青島市嶗山區梅岭路29號 – No commercial 810、811及813房間 value (Rooms 810, 811 & 813, 29 Meiling Road, Laoshan District, Qingdao City, Shangdong Province, the PRC*)

Total market value 166,517,881

The Consideration represents a discount of approximately 12.2% to the final valuation as referred to above. For full description of the real property interests set out in the above table, please refer to Appendix I to this circular.

Conditions precedent

Completion is subject to (amongst others) the fulfilment of the following conditions precedent:

(a) compliance with the Listing Rules by the Company, including obtaining the approval of the Independent Shareholders at the SGM; and

(b) approval(s) by the competent Chinese authorities (where applicable).

– 14 – LETTER FROM THE BOARD

The Agreement shall terminate automatically if the above conditions precedent are not fulfilled within nine months from the date of the Agreement. Upon termination, none of the parties shall have any claims against each other. The conditions set out in the Agreement are not capable of being waived.

As at the Latest Practicable Date, both conditions precedent specified above have yet to be fulfilled.

Completion

Completion shall take place within six months after fulfilment of all conditions precedent. Following Completion, the Target will become an indirect wholly-owned subsidiary of the Company.

INFORMATION OF THE TARGET GROUP

The Target

The Target is a company incorporated in the PRC on 9 November 2009 and is principally engaged in investment holding businesses. As at the Latest Practicable Date, the Target’ssole asset is its holding of 13.26% equity interests in Hengtian Real Estate.

Set out below is the audited financial information of the Target for the year ended 31 December 2013 and the year ended 31 December 2014 prepared in accordance with PRC GAAP:

For the year For the year ended ended 31 December 31 December 2013 2014 (audited) (audited) HK$ HK$

Net profit before taxation 3,760,765 9,824,831 Net profit after taxation 2,820,574 9,824,831

As at As at 31 December 31 December 2013 2014 (audited) (audited) HK$ HK$

Net assets 176,436,429 174,252,195

– 15 – LETTER FROM THE BOARD

Hengtian Real Estate

Hengtian Real Estate is a company incorporated in the PRC and is principally engaged in real estate development with a number of property development projects and assets in Beijing, Jiaxing, Nanchang, Qingdao, Shanghai, Suqian, Weinan, Xiangyang, Xianyang, Yanji and Zhengzhou in the PRC.

Set out below is the audited financial information of Hengtian Real Estate for the year ended 31 December 2013 and the year ended 31 December 2014 prepared in accordance with PRC GAAP:

For the year For the year ended ended 31 December 31 December 2013 2014 (audited) (audited) HK$ HK$

Net profit before taxation 405,634 63,729,832 Net (loss)/profit after taxation (8,519,216) 57,525,357

As at As at 31 December 31 December 2013 2014 (audited) (audited) HK$ HK$

Net assets 1,300,026,321 1,410,382,534

AsconfirmedbyHengtianRealEstate,theDirectors noted that the increase in the net profits of Hengtian Real Estate for the year ended 31 December 2014 as compared to the previous year was mainly attributable to (i) an increase in revenue generated from the sales of properties in Suqian City, Jiangsu Province, the PRC during the year ended 31 December 2014; and (ii) an increase in investment income from Hengtian Real Estate’s long-term equity investment in a joint venture.

FINANCIAL EFFECT OF THE ACQUISITION

Upon Completion, the Group will settle the Consideration in cash in the aggregate amount of RMB146,139,690 (equivalent to approximately HK$182,675,000), subject to tax to be paid by the Group in due course. Immediately following Completion, the Target will be accounted for as a subsidiary of the Company and the financial results of the Target will be reflected in the consolidated financial statements of the Group. The carrying amount of the Target was

– 16 – LETTER FROM THE BOARD approximately RMB141,458,834 (equivalent to approximately HK$176,823,543 as at 30 April 2015). Hengtian Real Estate will be recognised as an available-for-sale financial asset in the consolidated financial statements of the Group under Hong Kong Financial Reporting Standards. Dividend on available-for-sale financial asset is recognised in the consolidated statement of profit or loss of the Group when the Group’s right to receive the dividend is established. The Acquisition will be subject to stamp duty in the PRC levied at the rate of 0.05%, based on which the total estimated tax payable would be approximately RMB73,070 (equivalent to approximately HK$91,337).

Reconciliation of valuation

The Target’s sole asset is its holding of 13.26% equity interests in Hengtian Real Estate, which has significant interests in real estate properties. To illustrate the financial impact of the real estate valuation on Hengtian Real Estate’s balance sheet, a reconciliation was performed basedonHengtianRealEstate’s latest audited financial statements. The reconciliation is set out as follows:

HK$

Net asset value of 13.26% of property interests in Hengtian Real Estate held by the Target Carrying balance as at 30 April 2015 187,984,204 Add: value brought forward from revaluation 28,880,687

Adjusted net asset value as at 30 April 2015 216,864,891

REASONS FOR THE ACQUISITION

The Group is principally engaged in the manufacture and sale of dyeing and finishing machines, trading of stainless steel supplies and the manufacture and sale of stainless steel casting products.

The Purchaser is a wholly-owned subsidiary of the Company established under the laws of the PRC and its principal business is manufacture and sale of dyeing and finishing machines.

The Vendors are both investment holding companies incorporated in the PRC, with interests in the real estate property sector in the PRC.

The Target is a company incorporated in the PRC and is principally engaged in investment holding businesses. It holds 13.26% equity interests in Hengtian Real Estate, which is a company incorporated in the PRC and is principally engaged in real estate development with a number of property development projects in the PRC. With reference to the announcement of the Company dated 31 August 2014, Hengtian Real Estate is the company which conditionally purchased 30% equity interests of 佛山東亞股份有限公司 (Foshan East Asia Company Limited*) from the Group

– 17 – LETTER FROM THE BOARD at the consideration of RMB150,000,000. At the time of that announcement, the Group was in preliminary discussion on the possibility of acquiring an equity stake in Hengtian Real Estate. As at the Latest Practicable Date, the transaction has not completed.

The Directors continue to have confidence in the property market generally. Taking into account the quality and size of the property development portfolio held by Hengtian Real Estate, the Directors believe that the Acquisition will provide an alternative source of income going forward, hence improving the profitability of the Group.

The terms of the Agreement have been negotiated on an arm’s length basis. The Directors believe that the Acquisition is in line with the business plan of the Group and the terms of the Agreement are fair and reasonable so far as the Independent Shareholders are concerned, and the Acquisition is in the interest of the Company and the Shareholders as a whole.

LISTING RULES IMPLICATIONS

As at the Latest Practicable Date, the Parent Company was interested in 615,408,140 Shares, representing approximately 55.80% of the entire issued share capital of the Company. As at the Latest Practicable Date, the Target is a substantial shareholder, holding 13.26% paid up registered capital of Hengtian Real Estate. As the attributable interest of Hengtian Real Estate held by the Parent Company is 47.35%, the Acquisition constitutes a connected transaction for the Company under Rule 14A.28 of the Listing Rules. As the highest applicable percentage ratio in respect of the Acquisition is more than 5% but less than 25%, the Acquisition also constitutes a discloseable transaction for the Company. Accordingly, the Acquisition is subject to the reporting, announcement and independent shareholders’ approval requirements under the Listing Rules. The Parent Company and its associate(s) are required to abstain from voting on the resolution approving the transactions contemplated under the Agreement. To the knowledge of the Board, as none of the Vendors and their respective ultimate beneficial owners are shareholders of the Company as at the Latest Practicable Date, no other Shareholder has a material interest in the transactions contemplated under the Agreement and is required to abstain from voting at the SGM on the resolution approving the same save for the Parent Company and its associate(s).

Mr. Xiang Dejun, a director and the legal representative of the Target, is also a director and the chief executive officer of Hengtian Real Estate. Save as disclosed above, to the best of the Directors’ knowledge, information and belief having made all reasonable enquiry, the Vendors and their ultimate beneficial owners are third parties independent of the Company and its connected persons.

As none of the Directors has any material interest in the transactions contemplated under the Agreement, none of the Directors has abstained from voting in the board resolution approving the transactions contemplated under the Agreement.

– 18 – LETTER FROM THE BOARD

SGM

The SGM will be held on Tuesday, 11 August 2015 to consider and, if thought fit, approve the Agreement and the transactions contemplated thereunder. A notice convening the SGM is set out on pages SGM-1 to SGM-2 of this circular.

A form of proxy for use by the Shareholders at the SGM is enclosed with this circular. Whether or not you intend to attend and vote at the SGM in person, you are requested to complete the form of proxy and return it to the principal place of business of the Company in Hong Kong at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong in accordance with the instructions printed thereon as soon as possible and in any event not less than 48 hours before the time appointed for holding the SGM or any adjourned meeting. Completion and return of the form of proxy will not prevent you from attending and voting at the SGM or any adjourned meeting should you so wish.

For determining the entitlement to attend and vote at the SGM, the register of members of the Company will be closed from Monday, 10 August 2015 to Tuesday, 11 August 2015, both days inclusive, during which period no transfers of Shares will be effected. In order to be eligible to attend and vote at the SGM, all share transfer documents accompanied by the relevant share certificates must be lodged with the Company’s Hong Kong Branch Registrar, Tricor Secretaries Limited, at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong for registration not later than 4:30 p.m. on Friday, 7 August 2015.

Pursuant to Bye-law 70 of the Bye-laws, a resolution put to the vote of a meeting shall be decided on a show of hands unless voting by way of a poll is demanded as stated in Bye-law 71 of the Bye-laws. Pursuant to Rule 13.39(4) of the Listing Rules, all votes of the Shareholders at general meetings must be taken by poll. The chairman of the meeting will therefore demand a poll for every resolution put to the vote of the SGM pursuant to Bye-law 71 of the Bye-laws.

The results of the poll will be published on the websites of the Stock Exchange and of the Company after the conclusion of the SGM.

INDEPENDENT BOARD COMMITTEE

Pursuant to the Listing Rules, the Independent Board Committee, comprising all the independent non-executive Directors, namely Mr. Ying Wei, Dr. Yuen Ming Fai and Mr. Li Jianxin, has been established to consider the terms of the Agreement and the transactions contemplated thereunder, and to advise the Independent Shareholders as to whether they are on normal commercial terms, fair and reasonable and in the interests of the Company and the Shareholders as a whole.

– 19 – LETTER FROM THE BOARD

None of the members of the Independent Board Committee has any interest or involvement in the transactions contemplated under the Agreement. The views of the Independent Board Committee in respect of the terms of the Agreement are given taking into account the advice from the Independent Financial Adviser.

Your attention is drawn to the letter from the Independent Board Committee as set out on pages 21 to 22 of this circular which contains its recommendation to the Independent Shareholders as to voting at the SGM.

Your attention is also drawn to the letter from the Independent Financial Adviser as set out on pages 23 to 38 of this circular, which contains its advice to the Independent Board Committee and the Independent Shareholders in relation to the Agreement and the transactions contemplated thereunder.

RECOMMENDATION

The Board considers that the terms of the Agreement are fair and reasonable so far as the Independent Shareholders are concerned, and that the Acquisition is in the interests of the Company and the Shareholders as a whole. Accordingly, the Directors recommend the Independent Shareholders to vote in favour of the resolution to be proposed at the SGM to approve the Agreement and the transactions contemplated thereunder.

ADDITIONAL INFORMATION

As the Completion contemplated under the Agreementissubjecttothefulfillmentofthe conditions precedent set forth therein, the transactions contemplated in the Agreement may or may not proceed to completion. Shareholders and potential investors of the Company should exercise caution when dealing in the Shares.

Your attention is drawn to the additional information set out in the other sections of and Appendices to this circular.

Yours faithfully, For and on behalf of the Board of CHTC Fong’s Industries Company Limited Shi Tinghong Chairman and Executive Director

– 20 – LETTER FROM THE INDEPENDENT BOARD COMMITTEE

CHTC FONG’S INDUSTRIES COMPANY LIMITED 恒天立信工業有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 641)

24 July 2015

To the Independent Shareholders

Dear Sir or Madam,

DISCLOSEABLE AND CONNECTED TRANSACTION

INTRODUCTION

Werefertothecirculardated24July2015(the‘‘Circular’’) of CHTC Fong’s Industries Company Limited (the ‘‘Company’’) of which this letter forms part. Terms used in this letter shall have the meanings as defined in the Circular unless the context requires otherwise.

We, being the independent non-executive Directors, have been appointed to form the Independent Board Committee to advise you in relation to the Agreement (including the transactions contemplated thereunder), details of which are set out in the section headed ‘‘Letter from the Board’’ in the Circular.

Quam Capital has been appointed as the Independent Financial Adviser to advise the Independent Board Committee and the Independent Shareholders on the fairness and reasonableness of the terms of the Agreement.

We wish to draw your attention to the letter from the Board as set out on pages 4 to 20 of the Circular and the letter from Quam Capital as set out on pages 23 to 38 of the Circular which contain, among other things, their advice, and recommendation to us regarding the terms of the Agreement and the principal factors and reasons taken into consideration in arriving at their advice and recommendation.

– 21 – LETTER FROM THE INDEPENDENT BOARD COMMITTEE

RECOMMENDATION

Having taken into account the advice and recommendation of Quam Capital and the principal factors and reasons considered by them in arriving at their opinion, we consider that the terms of the Agreement are on normal commercial terms and are fair and reasonable as far as the Independent Shareholders are concerned and the entering into of the Agreement is in the interests of the Company and the Shareholders as a whole although not in the ordinary and usual course of business of the Group. Accordingly, we recommend the Independent Shareholders to vote in favour of the resolution to be proposed at the SGM to approve the Agreement and the transactions contemplated thereunder.

Yours faithfully, Mr. Ying Wei Dr. Yuen Ming Fai Mr. Li Jianxin Independent Board Committee

– 22 – LETTER FROM QUAM CAPITAL

The following is the full text of a letter of advice from Quam Capital, the independent financial adviser to the Independent Board Committee and the Independent Shareholders, which has been prepared for the purpose of incorporation in this circular, setting out its advice to the Independent Board Committee and the Independent Shareholders in respect of the terms of the Agreement and the transactions contemplated thereunder.

24 July 2015

To the Independent Board Committee and the Independent Shareholders

CHTC Fong’s Industries Company Limited 8th Floor 22-28 Cheung Tat Road Tsing Yi Hong Kong

Dear Sir or Madam,

DISCLOSEABLE AND CONNECTED TRANSACTION

INTRODUCTION

We refer to our appointment as the independent financial adviser to the Independent Board Committee and the Independent Shareholders in respect of the terms of the Agreement and the transactions contemplated thereunder, details of which are set out in the ‘‘Letter from the Board’’ (the ‘‘Letter from the Board’’) contained in the circular issued by the Company to the Shareholders dated 24 July 2015 (the ‘‘Circular’’), of which this letter forms part. Terms used in this letter shall have the same meanings as defined in the Circular unless the context otherwise requires.

On 25 June 2015, the Purchaser, a wholly-owned subsidiary of the Company, entered into the Agreement with the Vendors, pursuant to which the Purchaser has conditionally agreed to acquire the Sale Shares, representing the entire paid up registered capital of the Target, from the Vendors at the aggregate consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000). The Consideration will be settled in cash on the date of Completion. As at the Latest Practicable Date, the Target’s sole asset was its holding of 13.26% equity interests in Hengtian Real Estate which is principally engaged in real estate development in the PRC.

As the attributable interest of Hengtian Real Estate held by the Parent Company is 47.35%, the Acquisition constitutes a connected transaction for the Company under Rule 14A.28 of the Listing Rules. As the highest applicable percentage ratio in respect of the Acquisition is more

– 23 – LETTER FROM QUAM CAPITAL than 5% but less than 25%, the Acquisition also constitutes a discloseable transaction for the Company. Accordingly, the Acquisition is subject to the reporting, announcement and independent shareholders’ approval requirements under the Listing Rules. The Parent Company and its associate(s) are required to abstain from voting on the relevant resolution to be proposed at the SGM for approving the Agreement and the transactions contemplated thereunder.

The Independent Board Committee, comprising all the independent non-executive Directors, namely Mr. Ying Wei, Dr. Yuen Ming Fai and Mr. Li Jianxin, has been established to advise the Independent Shareholders as to whether the terms of the Agreement are on normal commercial terms, fair and reasonable so far as the Independent Shareholders are concerned and whether the Acquisition is in the interests of the Company and the Shareholders as a whole, and to advise the Independent Shareholders on how to vote in respect of the relevant resolution to be proposed at the SGM to approve the Agreement and the transactions contemplated thereunder. As the Independent Financial Adviser, our role is to give an independent opinion to the Independent Board Committee and the Independent Shareholders in such regard.

As at the Latest Practicable Date, Quam Capital did not have any relationships or interests with the Company, the Vendors or the Parent Company that could reasonably be regarded as relevant to the independence of Quam Capital. In the past two years, we have acted as the independent financial adviser to the independent board committee and the independent shareholders of the Company (in October 2014) in relation to the disposal (the ‘‘Disposal’’)of 30% equity interest in 佛山東亞股份有限公司 (Foshan East Asia Company Limited*) (‘‘Foshan East Asia’’) by a wholly-owned subsidiary of the Company to Hengtian Real Estate. Apart from normal professional fees paid or payable to us in connection with this appointment as the independent financial adviser, no arrangements exist whereby we had received any fees or benefits from the Company, the Vendors or the Parent Company. Accordingly, we are qualified to give independent advice in respect of the Agreement and the transactions contemplated thereunder.

BASIS OF OUR OPINION

In formulating our opinion and advice, we have relied on (i) the information and facts containedorreferredtointheCircular;(ii)theinformationsuppliedbytheGroupandits advisers; (iii) the opinions expressed by and the representations of the Directors and the management of the Group; and (iv) our review of the relevant public information. We have assumed that all the information provided and representations and opinions expressed to us or contained or referred to in the Circular were true, accurate and complete in all respects as at the date thereof and may be relied upon. We have also assumed that all statements contained and representations made or referred to in the Circular are true at the time they were made and continued to be true as at the Latest Practicable Date and all such statements of belief, opinions and intentions of the Directors and the management of the Group and those as set out or referred to in the Circular were reasonably made after due and careful enquiry. We have no reason to doubt the truth, accuracy and completeness of the information and representations provided to us

– 24 – LETTER FROM QUAM CAPITAL by the Directors, the management of the Group, and/or the advisers of the Company. We have also sought and received confirmation from the Directors that no material facts have been withheld or omitted from the information provided and referred to in the Circular and that all information or representations provided to us by the Directors and the management of the Group are true, accurate, complete and not misleading in all respects at the time they were made and continued to be so until the date of the Circular.

We consider that we have reviewed the sufficient information currently available to reach an informed view and to justify our reliance on the accuracy of the information contained in the Circular so as to provide a reasonable basis for our recommendation. We have not, however, carried out any independent verification of the information provided, representations made or opinion expressed by the Directors and the management of the Group, nor have we conducted any form of in-depth investigation into the business, affairs, operations, financial position or future prospects of the Company, its subsidiaries and associates as well as the Target and the underlying assets to be acquired pursuant to the Agreement.

PRINCIPAL FACTORS AND REASONS CONSIDERED

In considering whether the terms of the Agreementarefairandreasonableinsofarasthe Independent Shareholders are concerned, we have taken into account the principal factors and reasons set out below:

1. Background to, reasons for and benefits of the Acquisition

(i) Information on the Group

The Group is principally engaged in (a) the manufacture and sale of dyeing and finishing machines; (b) trading of stainless steel supplies; and (c) the manufacture and sale of stainless steel casting products, which accounted for approximately 73.6%, 12.6% and 13.8% of total segment revenue for the year ended 31 December 2014 respectively. The Group recorded net profit of approximately HK$117.5 million for the year ended 31 December 2014.

(ii) Information on the Target and Hengtian Real Estate

As disclosed in the Letter from the Board, the Target is an investment holding company incorporated in the PRC and is currently owned as to 75% and 25% by 北京 華德投資有限公司 (Beijing Huade Investment Co., Ltd.*) and 佛山市匯銀金盛投資有 限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*) respectively. As at the Latest Practicable Date, the Target’s sole asset was its holding of 13.26% equity interests in Hengtian Real Estate.

– 25 – LETTER FROM QUAM CAPITAL

Hengtian Real Estate is a company incorporated in the PRC and is principally engaged in real estate development with a number of property development projects and assets in Beijing, Jiaxing, Nanchang, Qingdao, Shanghai, Suqian, Weinan, Xiangyang, Xianyang, Yanji and Zhengzhou in the PRC. We note from the valuation report set out in Appendix I to the Circular (the ‘‘Valuation Report’’)thatthe property development projects of Hengtian Real Estate are mainly developed for residential use. As at the Latest Practicable Date, Hengtian Real Estate had a fully paid-up capital of RMB875,000,000.

(iii) Reasons for and benefits of the Acquisition

On 31 August 2014, it was announced that the Group agreed to sell its entire 30% equity interests in Foshan East Asia to Hengtian Real Estate at the consideration of RMB150,000,000. The major assets of Foshan East Asia are three parcels of land located in the Chancheng District, Foshan City, the PRC. Subsequent to the cessation of its color woven fabrics manufacturing business in early March 2014, Foshan East Asia intended to engage in property development business. Given that (a) both the Group and Foshan East Asia have no prior experience and expertise in property development business; and (b) the Group may be required to contribute a substantial amount of funds to support the ongoing business of Foshan East Asia, the Group agreed to dispose of its entire 30% equity interests in Foshan East Asia to Hengtian Real Estate, a property developer, in exchange for additional capital to fund quality investments that would generate more attractive financial returns for the Group.

As disclosed in the announcement and the circular of the Company dated 31 August 2014 and 31 October 2014 respectively in relation to the Disposal, the Group was considering the possibility of acquiring an equity stake in Hengtian Real Estate with the sale proceeds from the Disposal such that the Group did not have to participate in property development business and contribute a substantial amount of funds to this business while such investment would generate additional source of income to the Group.

As stated in the Letter from the Board, the Directors continue to have confidence in the property market generally. Taking into account the quality and size of the property development portfolio held by Hengtian Real Estate, the Directors believe that the Acquisition will provide an alternative source of income going forward, hence improving the profitability of the Group.

The PRC property market

According to the National Bureau of Statistics of China, the PRC’s economy continued to expand and recorded a gross domestic product growth rate of approximately 7.4% in 2014, as compared to 2013. In terms of the property market, the investment in real estate development reached approximately

– 26 – LETTER FROM QUAM CAPITAL

RMB9,503.6 billion in 2014, representing an increase of approximately 10.5% as compared to 2013. Furthermore, the investment in real estate development amounted to approximately RMB1,665.1 billion during the first quarter of 2015, representing an increase of approximately 8.5% as compared to the corresponding period in 2014. In particular, the investment in residential and commercial properties in 2014 increased by approximately 9.2% and 21.3% to approximately RMB6,435.2 billion and RMB564.1 billion, respectively, as compared to the previous year. In addition, the investment in residential and commercial properties during the first quarter of 2015 increased by approximately 5.9% and 20.6% to approximately RMB1,115.6 billion and RMB108.8 billion, respectively, as compared to the corresponding period in 2014. The average selling price (RMBpersquaremetre)ofcommercialised residential buildings and office buildings amounted to approximately RMB5,850 and RMB12,997 in 2013, representing an increase of approximately 7.7% and 5.6% as compared to previous year.

Given that the properties of Hengtian Real Estate are mainly located in Beijing, Shaanxi Province and Jiangsu Province, we have independently researched on certain key background information and the latest available statistics in relation to Beijing, Shaanxi Province and Jiangsu Province, as follows:

Beijing

Beijing is one of the four direct-controlled municipalities and surrounded by Hebei Province. The total area of Beijing is approximately 16,801 square kilometres (‘‘sq.km.’’) with approximately 19.6 million residents by the end of 2014. According to the statistics office of Beijing, the gross domestic product of Beijing reached approximately RMB2,133.1 billion in 2014, representing an increase of approximately 7.3% as compared to 2013. The amount of investment in real estate development increased by approximately 6.7% to approximately RMB371.5 billion in 2014 as compared to 2013. The disposable income and expenditure per capita of the urban residents of Beijing also increased by approximately 7.2% to approximately RMB43,910 and approximately 6.6% to approximately RMB28,009 respectively in 2014 as compared to 2013.

Shaanxi Province

Shaanxi Province is located at Northwest China region. The total area of Shaanxi Province is approximately 205,800 sq.km. with approximately 37.3 million residents by the end of 2014. According to the statistics office of Shaanxi Province, the gross domestic product of Shaanxi Province

– 27 – LETTER FROM QUAM CAPITAL reached approximately RMB1,769.0 billion in 2014, representing an increase of approximately 9.7% as compared to 2013. The amount of investment in real estate development increased by approximately 8.3% to approximately RMB242.7 billion in 2014 as compared to 2013. The disposable income and expenditure per capita of the urban residents of Shaanxi Province also increased by approximately 9.0% to approximately RMB24,366 and approximately 7.0% to approximately RMB17,546 respectively in 2014 as compared to 2013.

Jiangsu Province

Jiangsu Province is located at Eastern coastal province of the PRC. The total area of Jiangsu Province is approximately 102,600 sq.km. with approximately 78.8 million residents by the end of 2014. According to the statistics office of Jiangsu Province, the gross domestic product of Jiangsu Province reached approximately RMB6,508.8 billion in 2014, representing an increase of approximately 8.7% as compared to 2013. The amount of investment in real estate development increased by approximately 13.8% to approximately RMB824.0 billion in 2014 as compared to 2013. The disposable income and expenditure per capita of the urban residents of Jiangsu Province also increased by approximately 8.7% to approximately RMB34,346 and approximately 6.9% to approximately RMB19,164 respectively in 2014 as compared to 2013.

The 2014 and 2015 average selling prices of residential properties in Beijing, Shaanxi Province and Jiangsu Province are not published on the websites of National Bureau of Statistics of China and statistics offices of Beijing, Shaanxi Province and Jiangsu Province. We have searched for the information, to the best of our endeavours, through other public domain, but this is not available. Accordingly, we are not able to compare the recent average selling prices of residential properties in these locations.

Outlook

As disclosed in the annual report of the Company for the year ended 31 December 2014, the Group will put great efforts on certain action items which include (i) exploring new income sources and retrenching expenses, further promoting lean production with an aim to maintain sound momentum in production and operation; and (ii) considering investment and acquisition opportunities in order to optimise its business structure and profit model.

Based on the aforesaid, we consider that the Acquisition is in line with the business strategy of the Group and is in the interests of the Company and the Shareholders as a whole.

– 28 – LETTER FROM QUAM CAPITAL

2. Principal terms of the Agreement

(i) Subject matter

Pursuant to the Agreement, the Purchaser, a wholly-owned subsidiary of the Company, has conditionally agreed to purchase the entire paid up registered capital of the Target from the Vendors. Upon Completion, the Company, through the Target, will own 13.26% equity interests in Hengtian Real Estate.

(ii) Consideration

Pursuant to the Agreement, the Purchaser will pay to the Vendors an aggregate consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000) for the acquisition of the Sale Shares and will be settled in cash. The amounts payable to the Vendors on the date of Completion are as follows:

Vendors Amount

北京華德投資有限公司 (Beijing Huade Investment Co., Ltd.*) RMB109,604,767.50

佛山市匯銀金盛投資有限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*) RMB36,534,922.50

The Consideration was determined after arm’s length negotiations among the Vendors and the Purchaser with reference to (a) the Target’s initial capital investment in Hengtian Real Estate on 15 May 2010; and (b) an independent valuation of 13.26% interest in the property interests held by Hengtian Real Estate as at 30 April 2015 performed by 北京中資房地產土地評估有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd.*) (the ‘‘Valuer’’), a firm of independent professional valuers.

(iii) Conditions precedent

Completion of the Agreement is conditional upon, among other things, (a) the compliance with the Listing Rules by the Company, including obtaining the approval of the Independent Shareholders at the SGM; and (b) the approval(s) by the competent Chinese authorities (where applicable).

If the conditions precedent above are not fulfilled within nine months from the date of the Agreement, the Agreement shall terminate automatically and none of the parties shall have any claims against each other. The conditions set out in the Agreement are not capable of being waived.

As at the Latest Practicable Date, both conditions precedent specified above have yet to be fulfilled.

– 29 – LETTER FROM QUAM CAPITAL

3. Financial information of the Target and Hengtian Real Estate

(i) Target

The audited consolidated financial information of the Target for the two years ended 31 December 2013 and 31 December 2014, and for the four months ended 30 April 2015, which has been prepared in accordance with PRC GAAP, are summarised as follows:

For the four months ended For the year ended 30 April 31 December 2015 2014 2013 (audited) (audited) (audited) RMB’000 HK$’000 HK$’000

Net profit before taxation 2,018 9,825 3,761 (equivalent to approximately HK$2,522)

Net profit after taxation 2,018 9,825 2,821 (equivalent to approximately HK$2,522)

As at 30 April As at 31 December 2015 2014 2013 (audited) (audited) (audited) RMB’000 HK$’000 HK$’000

Net assets 141,459 174,252 176,436 (equivalent to approximately HK$176,824)

As at the Latest Practicable Date, save for its 13.26% equity interests in Hengtian Real Estate, the Target did not have any other investment or subsidiary. The financial results and net assets of Hengtian Real Estate have been accounted for using the equity method of accounting in the financial statements of the Target. The financial results of the Target were therefore mainly driven by the share of the profit or loss of Hengtian Real Estate, dividend income received from Hengtian Real Estate and other operating expenses of the Target.

– 30 – LETTER FROM QUAM CAPITAL

As at 30 April 2015, the assets of the Target comprised approximately RMB31,000 of cash and cash equivalents and approximately RMB145.2 million of investment in Hengtian Real Estate. The sole liability of the Target as at 30 April 2015 was a tax liability of approximately RMB3.8 million. These resulted in a net asset value of approximately RMB141.5 million as at 30 April 2015.

(ii) Hengtian Real Estate

The audited consolidated financial information of Hengtian Real Estate for the two years ended 31 December 2013 and 31 December 2014, and for the four months ended 30 April 2015, which has been prepared in accordance with PRC GAAP, are summarised as follows:

For the four months ended For the year ended 30 April 31 December 2015 2014 2013 (audited) (audited) (audited) RMB’000 HK$’000 HK$’000

Net profit before taxation 5,837 63,730 406 (equivalent to approximately HK$7,296)

Net profit/(loss) after taxation 5,837 57,525 (8,519) (equivalent to approximately HK$7,296)

As at 30 April As at 31 December 2015 2014 2013 (audited) (audited) (audited) RMB’000 HK$’000 HK$’000

Net assets 1,134,143 1,410,383 1,300,026 (equivalent to approximately HK$1,417,679)

Net profit before taxation of Hengtian Real Estate for the year ended 31 December 2014 was approximately HK$63.7 million as compared with approximately HK$0.4 million for the year ended 31 December 2013. In addition, Hengtian Real Estate recorded a net profit after taxation of approximately HK$57.5 million for the year ended 31 December 2014 while it recorded a net loss after taxation of

– 31 – LETTER FROM QUAM CAPITAL

approximately HK$8.5 million for the year ended 31 December 2013. We were advised that the substantial increase in profit of Hengtian Real Estate for the year ended 31 December 2014 was mainly due to the (i) increase in revenue generated from the sales of properties in Suqian City, Jiangsu Province, the PRC during the year ended 31 December 2014; and (ii) increase in investment income contributed from the long-term equity investment in a joint venture.

According to the audited consolidated financial statements of Hengtian Real Estate as at 30 April 2015 provided by the Company, the non-current assets of Hengtian Real Estate amounted to approximately RMB256.6 million, which mainly consisted of (a) fixed assets (net of depreciation) of approximately RMB118.0 million, mainly comprising properties of approximately RMB90.4 million; and (b) long-term equity investments in a joint venture and two associates of approximately RMB129.6 million. The current assets of Hengtian Real Estate amounted to approximately RMB2,399.7 million, which were principally (a) inventories amounting to approximately RMB1,448.1 million, of which approximately RMB1,411.4 million was classified as the development costs; (b) cash and bank balances amounting to approximately RMB142.8 million; and (c) trade and other receivables amounting to approximately RMB767.7 million. The current liabilities of Hengtian Real Estate amounted to approximately RMB1,131.9 million, which were principally (a) a short- term loan of approximately RMB200.0 million; and (b) trade and other payable amounting to approximately RMB687.9 million. The non-current liabilities of Hengtian Real Estate of approximately RMB390.3 million principally comprised a long-term loan of approximately RMB364.9 million. As at 30 April 2015, the net assets of Hengtian Real Estate amounted to approximately RMB1,134.1 million.

4. Valuation of the property interests held by Hengtian Real Estate

(i) Experience of the Valuer and its engagement

We have conducted an interview with the Valuer to enquire its experience in valuing similar property interests in the PRC and its independence, and have reviewed the terms of the engagement letter of the Valuer, in particular its scope of work. We consider that its scope of work is appropriate to form the opinion required to be given and there is no limitation of the scope of work which might have an adverse impact on the degree of assurance given by the Valuer in the Valuation Report.

(ii) Valuation methodologies

The property interests (the ‘‘Property Interests’’) held by Hengtian Real Estate have been valued by the Valuer and the full text of the Valuation Report and certificate dated 24 July 2015 is set out in Appendix I to the Circular.

– 32 – LETTER FROM QUAM CAPITAL

As set out in the Valuation Report, we noted that the Property Interests comprise a total of 26 properties located in the PRC, in which they were classified as different kinds of properties including (a) properties held for investment; (b) properties held under development; (c) properties held for future development; (d) properties held for own use; (e) properties held for sale; and (f) rental properties.

In general, in valuing properties held for sale and properties held for own use in the PRC, the direct comparison approach was adopted assuming that each property is sold in its current state and making reference to comparable sales prices available in the relevant market. For properties held under development or for future development in the PRC, the direct comparison approach was generally adopted by making reference to comparable sales evidences as available in the existing market, the construction costs expended and the costs that will be expended to complete the development project, to reflect the quality of the development project completed. As regards the properties held for investment, the Valuer has directly adopted their respective carrying amount.

Given the nature of use and other particulars of the Property Interests, the Valuer considers that the above approaches are appropriate valuation methods in arriving at their values. Moreover, as advised by the Valuer, such approaches are in compliance with the standards and guidelines set out in the Hong Kong Institute of Surveyors Valuation Standards (2012 Edition) published by the Hong Kong Institute of Surveyors and Chapter 5 and Practice Note 12 of the Listing Rules. We also understand from the Valuer that it has carried out an on-site inspection and made relevant enquiries for the purpose of the valuation and no irregularities were noted during the course of the valuation. Given the valuation methodologies adopted by the Valuer are usual and in compliance with the standards published by the Hong Kong Institute of Surveyors, we consider that the methodologies and bases adopted by the Valuer for determining the value of the Property Interests are appropriate.

– 33 – LETTER FROM QUAM CAPITAL

5. Evaluation of the Consideration

(i) Reassessed net asset value

As most of the Property Interests are typically carried at cost, the below reassessed net asset value (the ‘‘Reassessed NAV(s)’’) of Hengtian Real Estate reflects its underlying net asset backing after taking into account the valuation of the Property Interests:

RMB’000 (Approximate)

Audited consolidated net asset value of Hengtian Real Estate attributable to owners of Hengtian Real Estate as at 30 April 2015 (Note 1) 984,600 Add: Net revaluation surplus arising from the valuation of the property interests attributable to Hengtian Real Estate as at 30 April 2015 (Note 2) 174,242

Reassessed NAV of Hengtian Real Estate 1,158,842

Target’s equity interests in Hengtian Real Estate 13.26%

Target’s share of the Reassessed NAV of Hengtian Real Estate 153,662

Add: Cash of the Target as at 30 April 2015 (audited) 31 Less: Liabilities of the Target as at 30 April 2015 (audited) (3,785)

Adjusted net asset value of the Target 149,908

Consideration 146,140

Discount of the Consideration to the adjusted net asset value of the Target 2.5%

– 34 – LETTER FROM QUAM CAPITAL

Notes:

1. The audited consolidated net asset value of Hengtian Real Estate (including its non-controlling interests) as at 30 April 2015 amounted to approximately RMB1,134,1 million (equivalent to approximately HK$1,417.7 million).

2. This represents the revaluation surplus arising from the difference between the valuation of the Property Interests controlled by Hengtian Real Estate (excluding (i) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*); and (ii) 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co.. Ltd.*) which were not subsidiaries of Hengtian Real Estate as at 30 April 2015) of approximately RMB1,509.1 million as at 30 April 2015 (as valued by the Valuer) and their respective book value of approximately RMB1,334.8 million as at 30 April 2015), net of the estimated amount of relevant taxes attributable to such revaluation surplus.

As shown above, the Consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000) represents approximately 2.5% discount to the adjusted net asset value attributable to its 13.26% equity interests in Hengtian Real Estate of approximately RMB149.9 million (equivalent to approximately HK$187.4 million). As such, we consider that the Consideration is fair and reasonable in this regard. We are not able to compare the 2.5% discount to Hengtian Real Estate’speers in the market due to unavailability of such Reassessed NAVs of the peers, supported by independent valuation, from public source. As a supplement and cross-check to our analysis on Reassessed NAV, we compared the Consideration with the prevailing market valuations of companies engaged in the same industry as Hengtian Real Estate, as detailed in the following section.

(ii) Comparable analysis

As discussed above, Hengtian Real Estate is principally engaged in real estate development with a number of property development projects and assets in certain cities in the PRC and that the property development projects are mainly focusing on projects comprising residential properties. Therefore, we have performed a search for companies listed on the Main Board of the Stock Exchange principally engaged in real estate development business in the PRC and with latest published net asset values attributable to equity holders (‘‘NAV(s)’’) ranging from approximately RMB500.0 million (equivalent to approximately HK$625.0 million) to RMB2,500.0 million (equivalent to approximately HK$3,125.0 million), being approximately 50% to 250% of the NAV of Hengtian Real Estate as at 30 April 2015. Based on these criteria, we identified seven companies (the ‘‘Comparable Companies’’),whichweconsidertobe an exhaustive list according to our research on the website of the Stock Exchange.

– 35 – LETTER FROM QUAM CAPITAL

Although the Comparable Companies have NAVs which vary when comparing with that of Hengtian Real Estate (attributable to owners of Hengtian Real Estate) of approximately RMB984.6 million (equivalent to approximately HK$1,230.8 million) as at 30 April 2015, they are included in our comparable analysis as their business scope is similar to that of Hengtian Real Estate and they are considered to be operating in the same industry as Hengtian Real Estate. One should recognise that due to the unique business strategy and position of each company, it is not practical to identify a company with the same proportion of revenue contribution from the same business and geographic segment.

Price-to-book ratio (‘‘P/B(s)’’) is one of the most commonly used yardsticks for judging valuations of property companies. The table below illustrates the P/B of each of the Comparable Companies:

Market Latest capitalisation published as at the NAV Latest attributable Stock Practicable to equity Comparable Companies code Date holders P/B (HK$ million) (HK$ million) (Note 1) (Note 2) (Note 2)

Skyfame Realty (Holdings) Limited 59 1,994.9 2,137.6 0.93

LVGEM (China) Real Estate 95 3,585.2 988.8 3.63 Investment Company Limited

Landsea Green Properties Co., Ltd. 106 2,056.1 1,669.6 1.23

Chuang’s China Investments Limited 298 836.0 2,590.0 0.32

Hopefluent Group Holdings Limited 733 1,509.7 2,144.9 0.70

Redco Properties Group Limited 1622 8,576.0 2,118.5 4.05

Sino Harbour Property Group Limited 1663 1,632.0 1,487.9 1.10

Maximum 4.05 Minimum 0.32 Average 1.71

The Target 182.7 176.8 1.03 (Note 3) (Note 4) (Note 5)

Source: Website of the Stock Exchange (www.hkexnews.hk)

– 36 – LETTER FROM QUAM CAPITAL

Notes:

1. Calculated based on their respective closing share price and number of issued shares as at the Latest Practicable Date.

2. Calculated based on their latest audited/unaudited consolidated net asset value attributable to owners and their market capitalisations as at the Latest Practicable Date.

3. Being the Consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000).

4. Being the consolidated net asset value of the Target as at 30 April 2015.

5. The P/B of Hengtian Real Estate is calculated based on (i) the Consideration; and (ii) the consolidated net asset value of the Target as at 30 April 2015.

6. For the purpose of this table, the translation of RMB into HK$ is based on the average exchange rate of RMB1.00 to HK$1.25 for the purpose of illustration only.

As shown in the above table, the P/Bs of the Comparable Companies ranged from approximately 0.32 to 4.05 times, with an average of approximately 1.71 times. We noted that the implied P/B for the Acquisition, calculated as the Consideration divided by the consolidated net asset value of the Target as at 30 April 2015, is approximately 1.03 times, which is within the range of the Comparable Companies and lower than the average, which is considered in line with the market. It should also be noted that the Comparable Companies, depending on their own business activities, statuses of their development projects and financial positions, can have different valuations attributed by the market. Coupled with our analysis on Reassessed NAV of Hengtian Real Estate, we consider that the Consideration is fair and reasonable so far as the Company and the Shareholders as a whole are concerned.

6. Financial effects on the Group

(i) Earnings

Following Completion, the Target will be accounted for as subsidiary of the Company and the financial results of the Target will be reflected in the consolidated financial statements of the Group. Hengtian Real Estate will be recognised as an available-for-sale financial asset in the consolidated financial statements of the Group under Hong Kong Financial Reporting Standards. Dividend on available-for-sale financial asset is recognised in the consolidated statement of profit or loss of the Group when the Group’s right to receive the dividend is established.

The Group recorded a profit attributable to the Shareholders of approximately HK$117.9 million for the year ended 31 December 2014. The Target also recorded a profit attributable to its shareholders of approximately RMB7.9 million (equivalent to

– 37 – LETTER FROM QUAM CAPITAL

approximately HK$9.8 million) for the year ended 31 December 2014. The Directors believe that the Acquisition will provide an alternative source of income going forward, hence improving the profitability of the Group.

(ii) Net asset value and gearing ratio

As at 31 December 2014, the consolidated net asset value of the Company was approximately HK$1,290.4 million and the gearing ratio, being bank borrowings net of cash and cash equivalents and divided by total equity, of the Group was approximately 40.8%. As the Consideration of RMB146,139,690 (equivalent to approximately HK$182,675,000) will be wholly financed by the sale proceeds from the Disposal, the Directors expect the Acquisition would not have any material impact on the Group’s netassetvalueandgearingratio.

(iii) Working capital

The Group had cash and cash equivalent of approximately HK$495.6 million as at 31 December 2014. Upon Completion, the Group will settle the Consideration with the sale proceeds from the Disposal. The Directors are of the view that the Acquisition will not have any significant adverse impact on the working capital position of the Group upon Completion.

RECOMMENDATION

Having considered the principal factors and reasons described above, we are of the opinion that the terms of the Agreement are on normal commercial terms, fair and reasonable so far as the Independent Shareholders are concerned. We also consider that the entering into of the Agreement, while not in the ordinary and usual course of business of the Group, is nevertheless in the interests of the Company and the Shareholders as a whole. Accordingly, we advise the Independent Shareholders, as well as the Independent Board Committee to recommend the Independent Shareholders, to vote in favour of the ordinary resolution to be proposed at the SGM to approve the Agreement and the transactions contemplated thereunder.

Yours faithfully, For and on behalf of Quam Capital Limited Noelle Hung Managing Director

Ms. Noelle Hung is a licensed person and a responsible officer of Quam Capital registered with the Securities and Futures Commission to carry out type 6 (advising on corporate finance) regulated activities under the SFO. She has over 15 years of experience in corporate finance.

* for identification purpose only

– 38 – APPENDIX I PROPERTY VALUATION REPORT

The following is the full text of a letter, comprising a summary of valuation and valuation certificates from 北京中資房地產土地評估有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd.*), an independent valuer, in connection with its valuations of the properties held by 恒天地 產有限公司 (Hengtian Real Estate Co., Ltd.*) and its subsidiaries as at 30 April 2015, prepared for the purpose of inclusion in this circular. The property valuation report was prepared in Chinese and the English version is a translation of the original. In case of any discrepancies between the two versions, the Chinese version shall prevail.

北京中資房地產土地評估有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd.*) Room 1603, C2 Tower, Jin Mao Building, 18 Xizhimenwai Street, Xicheng District, Beijing Tel: (86) 010-8833 4853 Fax: (86) 010-8833 4017 www.chinarec.net

The Board of Directors 立信染整機械（深圳）有限公司 (Fong’s National Engineering (Shenzhen) Company Limited*) 17-19 Lixin Road, Danzhutou Industrial Zone, Nanwan Sub-district, Longgang District, Shenzhen

Dear Sirs,

INSTRUCTIONS

We refer to your instructions for us to value the property interests (the ‘‘Properties’’)held by 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) (‘‘Hengtian Real Estate’’) and its subsidiaries (hereinafter referred to as the ‘‘Estate Group’’) located in the People’s Republic of China (the ‘‘PRC’’). We are informed that 立信染整機械（深圳）有限公司 (Fong’s National Engineering (Shenzhen) Company Limited*) is considering to acquire the entire equity interest in 佛山市禪華德信息科技有限公司 (Foshan Chanhuade Information Technology Ltd.*) (‘‘Chanhuade’’), which directly held 13.26% equity interest in Hengtian Real Estate. We confirm that we have conducted on-site inspections, made relevant enquiries and investigations, and obtained such further information as we considered necessary for the purpose of providing you with our opinion of the market values (‘‘Market Value’’) of the Properties as at 30 April 2015 (the ‘‘Valuation Date’’).

I – 1 APPENDIX I PROPERTY VALUATION REPORT

BASIS OF VALUATION

Our valuation of the Properties is on their ‘‘Market Value’’, which is defined 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 wherein the parties had each acted knowledgeably, prudently and without compulsion’’. Our Valuation is prepared based on 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 and the Hong Kong Institute of Surveyors Valuation Standards (2012 Edition) issued by the Hong Kong Institute of Surveyors.

VALUATION ASSUMPTIONS

Our valuation excludes 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.

In the course of our valuation of the Properties situated in the PRC, we have prepared our valuation on the basis that transferable land use rights in respect of each of the Properties for its specific term at nominal annual land use fee have been granted and that any premium payable has already been fully paid by their owner. We have relied on the information and advice given by the Estate Group and the legal opinion of 北京金誠同達律師事務所 (Beijing Jincheng Tongda & Neal Law Firm*) (‘‘JT&N’’) dated 30 April 2015 regarding the titles to the Properties and the interest in the Properties. Unless otherwise stated, in valuing the Properties, we have assumed that the owners have enforceable titles to the Properties and have free and unencumbered rights to use, occupy or assign the Properties for the whole of the unexpired term as granted.

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

We have not been able to carry out detailed on-site measurements to verify the site area of the Properties and we have assumed that the site areas shown on the documents and official site plans handed to us by Estate Group are correct. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations. No on-site measurement has been taken.

I – 2 APPENDIX I PROPERTY VALUATION REPORT

SITE INSPECTION

Our valuers, Sun Fangfang (senior project manager, registered real estate appraiser, certificate No. 1120090002) and Jiang Nu (senior project manager, registered real estate appraiser, certificate No. 1120070053), have, in the months of December 2014 and May 2015, conducted site inspections for the object properties of this valuation report, on site verification of the related land ownership certificates, physical lands and buildings survey, and investigations on the extent of lands development and of the same type markets surrounding. We are unaware of any adverse ground conditions affecting the Properties and have not carried out a soil survey. We have not carried out investigations on site to determine the suitability of the ground conditions and services etc. for any future development (if any). Our valuations are prepared on the assumption that these aspects are satisfactory and that no extraordinary expenses or delays will be incurred during the construction period.

METHOD OF VALUATION

For properties in Group I which are held for investment by the Estate Group, pursuant to the Undertaking Letter on 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (‘‘Jingdeshun’’)signedbyeachof中國恒天集團有限公司 (China Hi- Tech Group Corporation) and 恒天資產管理有限公司 (Hengtian Assets Management Co., Ltd.*) (hereinafter collectively referred to as the ‘‘Hengtian Group’’), the Hengtian Group undertakes to dispose of the equity interests in Jingdeshun and its assets that may be subject to impairment from 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) by 30 April 2016 and make good any resulting losses to 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*); if the disposal is not completed by the aforesaid date, the Hengtian Group shall make up the shortfall assumed by Hengtian Group in cash. Therefore, the valuation is presented at carrying amount.

For properties in Group II, which are under development, held by the Estate Group and the properties in Group III held by the Estate Group for future development (excluding Property No. 8), our valuations are on the basis that each property will be developed and completed in accordance with the updated development proposals provided by the Estate Group. We have assumed that all consents, approvals and licences from the relevant government authorities for the development proposals have been granted without any onerous conditions or undue delay. We have also assumed that the design and construction of the development projects are in compliance with the local planning regulations and are approved by competent authorities. In arriving at our opinion of value, we have adopted the direct comparison approach by making reference to comparable sales evidences as available in the existing market and have also taken into account the construction costs expended and the costs that will be expended to complete the development project, to reflect the quality of the development project completed.

I – 3 APPENDIX I PROPERTY VALUATION REPORT

For Property No. 8 in Group III, which are held by the Estate Group for future development, we have directly adopted their carrying amounts as the valuation results as they do not possess sufficient elements for us to carry out the valuation attributable to reasons such as uncertainty regarding planning and that the relevant certificate of title has yet to be obtained.

For Property No. 12 to Property No. 14 in Group IV, which are held by the Estate Group for owner-occupation, we have adopted the direct comparison approach in our valuation, assuming that each property is sold in its current state and making reference to comparable sales price available in the relevant market.

For Property No. 15 in Group IV, which are held by the Estate Group for its own use, the assessed value is nil since the carrying amount has been included in Property No. 1 in Group I, which is held by the Estate Group for investment.

For properties in Group V (excluding Property No. 16), which is held by the Estate Group for sale, we have adopted direct comparison approach in our valuation, assuming that each property is sold in its current state and making reference to comparable sales price available in the relevant market.

For Property No. 16 in Group V which is held by the Estate Group for sale, our valuation was conducted on the basis that such property will be developed and completed in accordance with the updated development proposal provided by the Estate Group. We have assumed that all consents, approvals and licences from the relevant government authorities for the development proposal have been granted without any onerous conditions or undue delay. We have also assumed that the design and construction of the development project are in compliance with the local planning regulations and are approved by competent authorities. In arriving at our opinion of value, we have adopted the direct comparison approach by making reference to comparable sales evidences as available in the existing market and have also taken into account the construction costs expended and the costs that will be expended to complete the development project, to reflect the quality of the project completed.

For properties in Group VI rented by the Estate Group, we are of the opinion that they have no commercial value either because of their non-assignability and non-subletting or lack of substantial profits for rent.

For properties in Group I held by the Estate Group for investment, our valuation is the carrying amount and has not taken into account the business tax and surcharges, property tax, deed tax, corporate income tax and land value-added tax.

For properties in Group IV held by the Estate Group for owner-occupation, our valuation has not take into account the business tax and surcharges, the corporate income tax and land value-added tax, etc.

I – 4 APPENDIX I PROPERTY VALUATION REPORT

For properties under development in Group II held by the Estate Group, properties in Group III held by the Estate Group for future development and properties in Group V held by the Estate Group for sale, our valuation has taken into account the sales tax, land value-added tax and income tax.

SOURCE OF INFORMATION

We have relied to a very considerable extent on the information given by Hengtian Real Estate and have accepted advice given to us on such matters as tenure, planning approvals, proposed development plans, estimated development cost, easements, particulars of occupancy, identification of the Properties and all other relevant matters.

We have had no reason to doubt the truth and accuracy of the information provided to us by Hengtian Real Estate. We have also obtained confirmation from Hengtian Real Estate that no material facts has been omitted from the information supplied. We consider that we have been provided with sufficient information to reach aninformedview,andwehavenoreasontosuspect that any material information has been withheld.

It should be noted that the copies of documents provided to us are mainly compiled in Chinese and the translation into English represents our understanding of the contents. We would therefore advise Hengtian Real Estate to make reference to the original Chinese edition of the documents and consult its legal adviser regarding the legality and interpretation of these documents.

TITLE INVESTIGATION

We have been provided summaries of several documents of titles (including the site boundaries of the relevant property interests) by Hengtian Real Estate in certain occasions and have made relevant inquiries. But we have not reviewed the original copies of the documents to verify the existing title of the property interests and encumbrances of onerous nature that may be attached to the Properties. In our valuations, we have relied to a considerable extent on the information related to the title of relevant properties provided by the Estate Group and JT&N.

I – 5 APPENDIX I PROPERTY VALUATION REPORT

CURRENCY AND EXCHANGE RATE

Unless otherwise stated, all sums stated in our valuations are in Renminbi, the lawful currency of the PRC.

Set out below is our summary of valuations, and the valuation certificates are enclosed herewith.

Yours faithfully, For and on behalf of Beijing Zhongzi Real Estate Appraisal Co., Ltd. Feng Chunlei China Certified Public Valuer China Certified Real Estate Appraiser Legal representative

24 July 2015

Note: 北京中資房地產土地評估有限公司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd.) is a registered corporate member of the China Institute of Real Estate Appraisers and Agents. Mr. Feng Chunlei is a China Certified Real Estate Appraiser (Certificate No.1119960026) registered in March 1996. He has been practising since 1996 with over 19 years of experience in property valuation in the PRC. Mr. Feng Chunlei joined our company as the legal representative in April 2004.

I – 6 APPENDIX I PROPERTY VALUATION REPORT

SUMMARY OF VALUES

Group I – Properties held by the Estate Group for investment in the PRC

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

1 中國北京朝陽區雙橋路水郡長安家園1號院 35,837,343 13.26 4,752,032 4號樓文化活動站（會所）(Cultural Activity Centre (Club), Building No. 4, Yard No. 1, Shuijun Chang An JiaYuan, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

2 中國北京朝陽區雙橋路水郡長安家園 40,773,826 13.26 5,406,609 地下車庫 (Underground Garage, Shuijun Chang An JiaYuan, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

Sub-total: 76,611,169 10,158,641

I – 7 APPENDIX I PROPERTY VALUATION REPORT

Group II – Properties under development in the PRC held by the Estate Group

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

3 中國陝西省渭南市臨渭區華山大街北恒天首 135,778,021 5.304 7,201,666 府一期 (Hengtian Shoufu Phase I, North Huashan Avenue, Linwei District, Weinan, Shaanxi Province, the PRC*)

4 中國浙江省嘉興市嘉善縣惠民街道泰山路嘉 194,504,600 6.7626 13,153,568 善恒天花園里 (Jiashan Hengtian Garden Lane, Taishan Road, Huimin Street, Jiashan County, Jiaxing City, Zhejiang Province, the PRC*)

5 中國陝西省咸陽市渭城區人民中路16號中宏 348,008,763 13.26 46,145,962 國際廣場A座高層住宅樓、B座高層住宅 樓、商業裙樓以及地下車庫 (Zhong Hong International Plaza, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC, comprised of Block A, a High-rise Residential Building, Block B, a High-rise Residential Building, a Commercial Podium and an Underground Garage*)

6 中國江蘇省宿遷市泗陽縣洋河南路10號 149,535,605 6.7626 10,112,495 恒天 • 香緹花園一期 (Hengtian Xiangti Garden Phase I, 10 Yanghe Nan Road, Siyang County, Suqian City, Jiangsu Province, the PRC*)

7 中國陝西省咸陽市渭城區人民中路16號中宏 37,128,269 13.26 4,923,208 麗舍T3、T4號樓 (Building Nos. T3, T4 of Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

Sub-total: 864,955,258 81,536,899

I – 8 APPENDIX I PROPERTY VALUATION REPORT

Group III – Properties held by the Estate Group for future development in the PRC

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

8 中國陝西省咸陽市渭城區人民中路16號北區 2,582,291 13.26 342,412 商業區土地及地上建築物 (Land of and the structures thereon of Northern District of Commercial Zone, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

9 中國江蘇省宿遷市泗陽縣洋河南路10號 169,737,169 6.7626 11,478,646 恒天 • 香緹花園後期土地 (The later phase of the land of Hengtian Xiangti Garden, 10 Yanghe Nan Road, Siyang County, Suqian City, Jiangsu Province, the PRC*)

10 中國陝西省渭南市臨渭區華山大街北恒天首 173,775,932 5.304 9,217,075 府二期及三期土地 (Lands of Hengtian Shoufu Phase II and Phase III, North Huashan Avenue, Linwei District, Weinan City, Shaanxi Province, the PRC*)

11 中國江西省南昌市紅谷灘新區九龍湖片區西 351,333,695 6.7626 23,759,292 部大街以南、城運大道以西土地 (Land of Honggutan New District (South of the street in the western part of Jiulonghu area and west of Cheng Yun Avenue), Nanchang City, Jiangxi Province, the PRC*)

Sub-total: 697,429,087 44,797,425

I – 9 APPENDIX I PROPERTY VALUATION REPORT

Group IV – Properties held by the Estate Group for own use in the PRC

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

12 中國陝西省咸陽市渭城區人民中路16號中宏 4,941,800 13.26 655,283 大廈22及23層 (Floors 22 and 23, Zhonghong Tower, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

13 中國陝西省咸陽市秦都區寶泉路中宏星苑二 384,300 13.26 50,958 期3號樓2單元102室 (Room 102, Unit 2, Building No. 3, Phase II, Zhong Hong Xing Yuan, Baoquan Road, Qindu District, Xianyang City, Shaanxi Province, the PRC*)

14 中國上海市徐匯區漕寶路400號上海明申廣 9,969,400 6.7626 674,191 場1203室、1204室、1205室及1206室 (Rooms 1203, 1204, 1205 & 1206, Mingshen Plaza, 400 Caobao Road, Xuhui District, Shanghai City, the PRC*)

15 中國北京朝陽區雙橋路水郡長安家園2號院1 0 13.26 0 號樓202、203及302室 (Rooms 202, 203 & 302, Building No. 1, Yard No. 2, Shuijun Chang An JiaYuan, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

Sub-total: 15,295,500 1,380,432

I – 10 APPENDIX I PROPERTY VALUATION REPORT

Group V – Properties held by the Estate Group for sale in the PRC

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

16 中國河南省鄭州市中原區天山路東，牛莊路 107,166,934 6.63 7,105,168 南保利百合花園未售部份 (Unsold portion of Poly Baihe Garden, Niuzhuang Road South and Tianshan Road East, Zhongyuan District, Zhengzhou City, Henan Province, the PRC*)

17 中國陝西省咸陽市渭城區人民中路16號中宏 102,994,468 13.26 13,657,066 麗舍T7、T10、T11號樓及U2地下車庫未售 部份 (Unsold portion of Building Nos. T7, T10, T11, and No. U2 underground garage of Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

18 中國陝西省咸陽市秦都區寶泉路中宏星苑二 2,023,558 13.26 268,324 期3棟 1601房 (Unit 1601, Building 3, Phase II, Zhong Hong Xing Yuan, Baoquan Road, Qindu District, Xianyang City, Shaanxi Province, the PRC*)

19 中國陝西省咸陽市渭城區人民中路16號中宏 6,463,444 13.26 857,053 麗舍T5、T6號樓未售部份 (Unsold portion of Building Nos. T5, T6 of Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

I – 11 APPENDIX I PROPERTY VALUATION REPORT

Group V – Properties held by the Estate Group for sale in the PRC (continued)

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

20 中國陝西省咸陽市渭城區人民中路16號中宏 13,796,023 13.26 1,829,353 麗舍T9號樓地下車庫未售部份 (Unsold portion of the underground garage of Building No. T9, Zhong Hong Li She, 16 Renmin Zhong Road, Weicheng District, Xianyang City, Shaanxi Province, the PRC*)

21 中國北京市朝陽區雙橋路水郡長安2號院5號 4,018,200 13.26 532,813 樓2單元302室 (Room 302, Unit 2, Building No. 5, Yard No. 2, Shuijun Chang An, Shuangqiao Road, Chaoyang District, Beijing, the PRC*)

22 中國北京市朝陽區北沙灘大屯路36號 501,319 13.26 66,475 華源凱旋園1號樓儲蓄所用房 (A savings office in Building No. 1, Hua Yuan Kai Xuan Garden, 36 Datun Road, Beishatan, Chaoyang District, Beijing, the PRC*)

23 中國北京市朝陽區北沙灘大屯路36號 31,625,811 13.26 4,193,583 華源凱旋園2號樓未售部份 (Unsold portion of Building No. 2, Hua Yuan Kai Xuan Garden, 36 Datun Road, Beishatan, Chaoyang District, Beijing, the PRC*)

24 中國吉林省延吉市長白路2號恒天 • 玫瑰園 2,901,300 4.641 134,649 二期未售部份 (Unsold portion of Phase II of ‘‘Hengtian Rose Garden’’, 2 Changbai Road, Yanji City, Jilin Province, the PRC*)

Sub-total: 271,491,057 28,644,484

I – 12 APPENDIX I PROPERTY VALUATION REPORT

Group VI – Properties rented by the Estate Group in the PRC

Market Value in existing state Market Value attributable to in existing Interest to be Chanhuade state as at attributable to as at No. Property 30 April 2015 Chanhuade 30 April 2015 RMB % RMB

25 中國北京朝陽區建國路99號中服大廈寫字樓 No commercial 第20層 (An office on Floor 20, China value Garments Mansion, 99 Jianguo Road, Chaoyang District, Beijing, the PRC*)

26 中國山東省青島市嶗山區梅嶺路29號810、 No commercial 811及813房間 value (Rooms 810, 811 & 813, 29 Meiling Road, Laoshan District, Qingdao City, Shangdong Province, the PRC*)

Sub-total 00

Total: 1,925,782,071 166,517,881

Note:

(1) We noted that 青島瑞和置業有限公司 (Qingdao Ruihe Real Estate Co., Ltd.*), a company which is indirectly held as to 54% by Hengtian Real Estate, has obtained 3 海域使用權證 (Sea Area Use Certificates*) and completed the groundwork. However, the respective State-owned Land Use Rights Certificates have not been obtained yet. The project only incurred part of up-front fees in sum of RMB226,520,359. According to the PRC legal opinion, the sea use rights obtained is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures. As the State-owned Land Use Rights Certificates have not been obtained, the up-front fees paid and any value of land is not included in this valuation report.

I – 13 APPENDIX I PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Group I – Properties held by the Estate Group for investment in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

1 中國北京朝陽區雙橋 Building No. 4 of the property was The properties are fully RMB35,837,343 路水郡長安家園1號 completed in 2008. It comprises two floors leased under 6 tenancies 院4 號樓文化活動站 above ground, two floors underground with with the shortest term (13.26% interest （會所）(Cultural 19 units in total, 12 of which are owned by expiring on 30 September attributable to Activity Centre 北京京德順房地產開發有限公司 (Beijing 2015 and the latest term Chanhuade: (Club), Building No. Jingdeshun Real Estate Development Co., expiring on 16 October RMB4,752,032) 4, Yard No. 1, Ltd.*) and are all cultural activity centres 2032. In particular, Shuijun Chang An (clubs). Pursuant to a Property Ownership Rooms 101, 102, 103 and JiaYuan, Shuangqiao Certificate, 京房權證朝字第652613號 (Jing 106 are leased on a term Road, Chaoyang Fang Quan Zheng Chao Zi No. 652613*) of 20 years and the rental District, Beijing, the dated 23 March 2009, the said 12 units payments for the entire PRC*) cover a total floor area of 4,065.88 sq.m., 20-year tenancy have been with the specific composition as follows: received and recognised as income. The current 101, Bldg. 4, Yard 1 162.68 monthly pre-tax rental 102, Bldg. 4, Yard 1 24.41 income amounted to 103, Bldg. 4, Yard 1 147.02 RMB61,565 per month 104, Bldg. 4, Yard 1 51.17 (excluding management 105, Bldg. 4, Yard 1 371.55 fee and other operating 106, Bldg. 4, Yard 1 11.57 expenses). 201, Bldg. 4, Yard 1 625.70 202, Bldg. 4, Yard 1 93.40 203, Bldg. 4, Yard 1 45.18 204, Bldg. 4, Yard 1 45.88 -201, Bldg. 4, Yard 1 910.02 -101, Bldg. 4, Yard 1 1,577.30

Total: 4,065.88

The property is located at Chaoyang District of Beijing. Developments nearby are mainly commercial and residential projects. The property is mainly leased and used for the provision of services to owners of Chang An JiaYuan; there is no environmental issues or litigation dispute; there is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term commencing on 5 May 2004 and expiring on 4 May 2074 for residential use and a term commencing on 5May2004andexpiringon4May2044 for ancillary and underground ancillary use.

I – 14 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) Pursuant to a Beijing Property Ownership Certificate, 京房權證朝字第652613號 (JingFangQuanZheng Chao Zi No. 652613*) dated 23 March 2009 and a State-owned Land Use Rights Certificate, 京朝國用（2004 出）第0502號 (JingChaoGuoYong（2004 Chu）No. 0502*) dated 14 October 2004, details of the above certificates are summarised as follows:

(i) Owner: 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (a direct 100% owned subsidiary of Hengtian Real Estate as at the Valuation Date)

(ii) Location: 北京市朝陽水郡長安1號院4號樓 (Building No. 4, Yard No. 1, Shuijun Chang An, Chaoyang District, Beijing*)

(iii) Site Area: 53,356.79 sq.m.

(iv) Usage: Residential, ancillary, and underground ancillary

(v) Land Use Term: The land use term commences on 5 May 2004 and expires on 4 May 2074 for residential use and commences on 5 May 2004 and expires on 4 May 2044 for ancillary and underground ancillary use.

(vi) Total Gross Floor Area (GFA): 17,634.27 sq.m.

The property was included in the said site area.

(2) Pursuant to a Business Licence, No. 110000001877336 dated 25 October 2013, 北京京德順房地產開發有限 公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) was established as a limited liability company on 20 December 2000 with a registered capital of RMB180,000,000 for a valid operation period from 20 December 2000 to 19 December 2020.

(3) According to the PRC legal opinion:

(i) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) shall not sell, but, pursuant to the PRC laws, may use the property for self-use or lease within the remaining land use term;

(iv) The property is free from any mortgages, ownership disputes, seizures or other judicial compulsory measures.

I – 15 APPENDIX I PROPERTY VALUATION REPORT

(4) Pursuant to the Undertaking Letter on 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (‘‘Jingdeshun’’) signed by each of 中國恒天集團有限公司 (China Hi-Tech Group Corporation) and 恒天資產管理有限公司 (Hengtian Assets Management Co., Ltd.*) (hereinafter collectively referred to as the ‘‘Hengtian Group’’), the Hengtian Group undertakes to dispose of the equity interests in Jingdeshun and its assets that may be subject to impairment from 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) by 30 April 2016 and make good any resulting losses to 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) ; if the disposal is not completed by the aforesaid date, the Hengtian Group shall make up the shortfall assumed by Hengtian Group in cash. Therefore, the valuation is presented at carrying amount.

(5) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Beijing Property Ownership Certificate Yes

Beijing State-owned Land Use Rights Certificate Yes

Business Licence Yes

I – 16 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

2 中國北京朝陽區雙橋路 Thepropertywascompletedin2008.The The property is fully RMB40,773,826 水郡長安家園地下車庫 property owned by 北京京德順房地產開 leased. Pursuant to the (Underground garage, 發有限公司 (Beijing Jingdeshun Real agreement entered into (13.26% interest Shuijun Chang An Estate Development Co., Ltd.*) is located between 北京京德順房地 attributable to JiaYuan, Shuangqiao on the First Basement Floor. Pursuant to 產開發有限公司 (Beijing Chanhuade: Road, Chaoyang a Property Ownership Certificate, 京房權 Jingdeshun Real Estate RMB5,406,609) District, Beijing, The 證朝字第884080號 (JingFangQuan Development Co., Ltd.*) PRC*) Zheng Chao Zi No. 884080*) dated 27 and 北京誠信安順停車管 July 2010, the property covers a total 理有限公司 (Beijing area of 2,980.17 sq.m. for car parking Chengxin Anshun Car- use as planned. parking Management Co., Ltd.*) (Party B) for the The property is located at Chaoyang use of the car-parking District of Beijing. Developments nearby spaces and facilities of the are mainly commercial and residential underground garage of 水 projects. The property is mainly leased 郡長安 (Shuijun Chang and used for the provision of services to An*), 北京誠信安順停車 owners of Chang An JiaYuan; there is no 管理有限公司 (Beijing environmental issues or litigation dispute; Chengxin Anshun Car- there is no plan for renovation or change parking Management Co., of the use of the property Ltd.*) leased from 北京京 德順房地產開發有限公司 The land use rights of the property have (Beijing Jingdeshun Real been granted for a term commencing on Estate Development Co., 1April2004andexpiringon31March Ltd.*) the underground 2054 for underground garage use. garage of the community of 水郡長安 (Shuijun Chang An*), including 986 mechanical car parking spaces and 33 civil air defense parking spaces of the east zone, for a term commencing on 1 September 2011 and expiring on 31 August 2021; the contracting fee for the garage is determined on the basis of 400 parked vehicles managed by Party B; if the number of managed vehicles exceed 400, 北京 京德順房地產開發有限公 司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is entitled to share 60% of the rentals generated from the number of parking spaces exceeding 400. The standard pre-tax rental for each parking space is RMB350-380 per month (excluding management fee and other operating fee).

I – 17 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) Pursuant to a Beijing Property Ownership Certificate, 京房權證朝字第884080號 (JingFangQuanZheng, Chao Zi Di No. 884080*) dated 27 July 2010 and a State-owned Land Use Rights Certificate, 京朝國用 （2005出）第0013號 (Jing Chao Guo Yong (2005 Chu) No. 0013*) dated 19 January 2005, details of the above certificates are summarised as follows:

(i) Owner: 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (a direct 100% owned subsidiary of Hengtian Real Estate as at the Valuation Date)

(ii) Location: 北京市朝陽水郡長安2號院26幢 (Building No. 26, Yard No. 2, Shuijun Chang An, Chaoyang District, Beijing*)

(iii) Site Area: 47,407.88 sq.m.

(iv) Usage: Residential, ancillary, underground ancillary, and underground garage

(v) Land Use Term: The land use term commences on 1 April 2004 and expires on 31 March 2074 for residential use; commences on 1 April 2004 and expires on 30 March 2044 for ancillary and underground ancillary use; and commences on 1 April 2004 and expires on 31 March 2054 for underground garage

(vi) Total gross floor area: 3,185.92 sq.m.

The Property was included in the above site area.

(2) Pursuant to a Business Licence, No. 110000001877336 dated 25 October 2013, 北京京德順房地產開發有限 公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) was established as a limited liability company on 20 December 2000 with a registered capital of RMB180,000,000 for a valid operation period from 20 December 2000 to 19 December 2020.

(3) The total development cost for 水郡長安家園 (Shuijun Chang An JiaYuan*) was RMB42,136,231 (including this property). The net value after provision for depreciation was RMB40,773,826.

(4) According to the PRC legal opinion:

(i) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The property is free from any mortgages, ownership disputes, seizures or other judicial compulsory measures.

I – 18 APPENDIX I PROPERTY VALUATION REPORT

(5) Pursuant to the Undertaking Letter on 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (‘‘Jingdeshun’’) signed by each of 中國恒天集團有限公司 (China Hi-Tech Group Corporation) and 恒天資產管理有限公司 (Hengtian Assets Management Co., Ltd.*) (hereinafter collectively referred to as the ‘‘Hengtian Group’’), the Hengtian Group undertakes to dispose of the equity interests in Jingdeshun and its assets that may be subject to impairment from 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) by 30 April 2016 and make good any resulting losses to 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*); if the disposal is not completed by the aforesaid date, the Hengtian Group shall make up the shortfall assumed by it in cash. Therefore, the valuation is presented at carrying amount.

(6) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Beijing Property Ownership Certificate Yes

Beijing State-owned Land Use Rights Certificate Yes

Business Licence Yes

I – 19 APPENDIX I PROPERTY VALUATION REPORT

Group II – Properties held by the Estate Group under development in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

3 中國陝西省渭南市臨 Hengtian Shoufu project comprises The property is under RMB135,778,021 渭區華山大街北恒天 residential apartments, commercial construction 首府一期 (Hengtian properties, facilities area and kindergarten, (5.3040% interest Shoufu Phase I, North etc. The total planned gross floor area of attributable to Huashan Avenue, the project is 332,706.68 sq.m. Hengtian Chanhuade: Linwei District, Shoufu Phase I under construction RMB7,201,666) Weinan City, Shaanxi comprises 1# residential building, 2# Province, the PRC*) residential building, 8# residential building, 9# residential building, and kindergarten, with a planned gross floor area of 86,790.44 sq.m. The construction of Hengtian Shoufu Phase I commenced in April 2013 and is expected to be completed at the end of third quarter of 2015.

According to the information provided, the total gross floor area of the properties of Hengtian Shoufu Phase I upon completion is 86,790.44 sq.m. Details are shown as follows:

GFA Property Name (sq.m.)

1# Residential Building 29,806.92 2# Residential Building 15,203.57 8# Residential Building 15,203.57 9# Residential Building 24,509.28 Kindergarten 2,067.10

Grand Total 86,790.44

The property is located in Linwei District, Weinan City, Shaanxi Province, the PRC, which is the main urban district of Weinan. Developments nearby are mainly residential projects. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in May 2082 for residential use.

I – 20 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 渭城國用(2012)第058號 (Wei Cheng Guo Yong (2012) No. 058*) dated 6 September 2012, the land use rights of Hengtian Shoufu with a site area of 85,700.26 sq.m. have been granted to 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) for a term due to expire in May 2082 for residential use.

(2) Pursuant to the State-owned Land Use Rights Grant Contract, No. SX001654 dated 16 December 2011:

(i) Grantee: 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) (a company indirectly owned as to 28% by Hengtian Real Estate as at the Valuation Date. See Note 10)

(ii) Site Area: 85,700.26 sq.m.

(iii) Land: 解放路與華山大街十字西北角 (Northwest corner to the cross of Jiefang Road and Huashan Avenue*)

(iv) Land Use: Residential

(v) Land Use Term: 70 Years

(vi) Land Premium: RMB111,053,000

The Property was included in the above site area.

(3) Pursuant to a Construction Land Planning Permit, 渭規地字第[2012]10號 (Wei Gui Di Zi No.[2012]10*) dated 14 May 2012, the construction site of the land parcel with a total gross floor area of 332,706.68 sq.m. was in compliance with urban planning requirements.

(4) In accordance with the Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

渭規建字第[2013]22號 2 July 2013 1#, 2# Residential Buildings 45,010.49 (Wei Gui Jian Zi No. [2013]22*) 渭規建字第[2013]23號 2 July 2013 8#, 9# Residential Buildings, 41,779.95 (Wei Gui Jian Zi No. [2013]23*) Kindergarten

The property was included in the said site area.

I – 21 APPENDIX I PROPERTY VALUATION REPORT

(5) In accordance with the Construction Works Commencement Permits, the following construction works have been approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

6105022013121001-43 10 December 2013 Hengtian Shoufu (1#, 2#, 8#, 9# 86,790 Residential Buildings and Kindergarten)

The property was included in the said site area.

(6) In accordance with the Commodity House Pre-sale Permits, the following commodity houses were approved for pre-sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

House Pre-sale Permit 25 December 2013 Hengtian Shoufu 1# 29,806.90 No. 062 of 2013 Residential Building

House Pre-sale Permit 25 December 2013 Hengtian Shoufu 2# 15,203.50 No. 063 of 2013 Residential Building

House Pre-sale Permit 25 December 2013 Hengtian Shoufu 8# 15,203.50 No. 064 of 2013 Residential Building

House Pre-sale Permit 25 December 2013 Hengtian Shoufu 9# 24,509.28 No. 065 of 2013 Residential Building

(7) According to the information provided by the Estate Group, as at the Valuation Date of the project, 49.7% of the total construction works for the residential buildings has been completed, 0.00% of the total construction works for the shops has been completed, 49.7% of the total construction works for the garages has been completed. Hengtian Shoufu Phase I has not been completed as at the Valuation Date and will complete the handover for use in September 2015. The sales cycle of the residential and commercial use property is estimated to be 3 years, a period from 2014 when the pre-sale commenced to 2016 when the properties will be sold out. The underground garages are intended to be granted to property owners.

(8) According to the information provided by the Estate Group, the construction cost amounting to RMB168,458,170.16 has been paid as of the Valuation Date. The total construction cost of Phase I development plan was estimated to be RMB338,972,893.84. We have included such costs in the valuation.

(9) The capital value of the property in existing state estimated on the effective Valuation Date was RMB135,778,021. The estimated capital value of Phase I is RMB332,231,947.15 upon completion.

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(10) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) owns 40% of the equity interests of 渭南恒天地產 有限公司 (Weinan Hengtian Real Estate Co., Ltd.*). According to the PRC legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械 廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產 開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the PRC legal opinion, this Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to applicable laws and regulations, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) which in turn, owns 40% of the equity interests of 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*).

(11) Pursuant to a Business License, No. 610500100014786 dated 19 May 2014, 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) was established as a limited liability company on 22 March 2010 with a registered capital of RMB30,000,000 and the operation period is effective from 22 March 2010 to 21 March 2060.

(12) According to the PRC legal opinion:

(i) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) is the legal owner of the property;

(iii) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants;

(v) The specified completion date of the project is 9 September 2016;

(vi) In accordance with the PRC laws, the property is not regarded as idle land;

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(vii) The land portion and construction works of Hengtian Shoufu (i.e. State-owned Land Use Rights Certificate, 渭城國用(2012)第58號 (Wei Cheng Guo Yong (2012) No. 058)) is currently subject to mortgages in favour of Bank of Beijing Co., Ltd. in respect of a total loan amount of RMB180,000,000. Other than that, the property is free from any other mortgages, ownership disputes, seizures or other judicial compulsory measures.

(13) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

4 中國浙江省嘉興市嘉善 Jiashan Hengtian Garden Lane project The property is under RMB194,504,600 縣惠民街道泰山路嘉善 comprises residential apartments, construction 恒天花園里 (Jiashan commercial and auxiliary facilities, etc. It (6.7626% interest Hengtian Garden Lane, has a total planned gross floor area of attributable to Taishan Road, Huimin 82,083.6 sq.m. with 676 apartments. The Chanhuade: Street, Jiashan County, project is expected to be fully completed RMB13,153,568) Jiaxing City, Zhejiang by November 2015 and delivered for use Province, the PRC*) by December 2015.

The property is located in 中國浙江省嘉 興市嘉善縣 (Jiashan County, Jiaxing City, Zhejiang Province, the PRC*). Developments nearby are mainly residential projects. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term commencing on 15 November 2013 for commercial and residential use. The commercial use land term lasts for 40 years and the residential use land term lasts for 70 years.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 善國用（2014）第00301196號 (Shan Guo Yong (2014) No. 00301196*) dated 27 January 2014, the land use rights of Jiashan Hengtian Garden Lane with a site area of 31,510.50 sq.m. have been granted to 嘉善恒華房地產開發有限公司 (Jiashan Henghua Real Estate Development Co., Ltd.*) (a direct 51%-owned subsidiary of Hengtian Real Estate as at the Valuation Date)foratermof40yearsforcommercialuseand70 years for residential use commencing from 15 November 2013. The land is for commercial and residential use.

(2) Pursuant to the State-owned Land Use Rights Grant Contract, No. 3304212013A21034 dated 6 September 2013:

(i) Grantee: 嘉 善 恒 華 房 地 產 開 發 有 限 公 司 (Jiashan Henghua Real Estate Development Co., Ltd.*)

(ii) Site Area: 31,510.50 sq.m.

(iii) Land: 開發區泰山東路南側、永豐橋港東側 (Southern side of Taishan Road East, eastern side of Yongfengqiao Port, Jiashan Economic Development Zone*)

(iv) Land Use: Commercial and residential use

(v) Land Use Term: 70 years for residential use and 40 years for commercial use

(vi) Land Premium: RMB57,065,516

(vii) Total gross floor area: 81,984.44 sq.m.

(3) Pursuant to a Construction Land Planning Permit, 地字第330421201400016號 (Di Zi No. 330421201400016*) dated 26 January 2014, the construction site of the land parcel with the total gross floor area of 81,501.50 sq.m. was in compliance with the urban planning requirements.

(4) According to a Construction Works Planning Permit, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第33042120140079號 5May2014 JiashanHengtianGardenLane 82,083.6 (Jian Zi No. project 33042120140079*)

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(5) According to a Construction Works Commencement Permit, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

330421201406160101 16 June 2014 Jiashan Hengtian Garden Lane 82,083.6 project

(6) According to a Commodity House Pre-sale Permit, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

售許字(14)第023號 29 September 2014 Buildings 6, 7 and 8 of Hengtian 20,916.48 (Shou Xu Zi (14) No. 023*) Garden Lane

售許字(15)第002號 10 March 2015 Buildings 1 – 5 of Hengtian Residential (Shou Xu Zi (15) No. 002*) Garden Lane 39,910.84 Commercial 1,322.47

(7) According to the information provided by the Estate Group, as at the Valuation Date of the project, 70% of the total construction works for the residential buildings has been completed, 75% of the total construction works for the shops has been completed, 80% of the total construction works for the garages has been completed. The project is expected to be fully completed by November 2015 and delivered for use by December 2015. The sales cycle of the residential and commercial use property is estimated to be two years, aperiodfrom2015whenthepre-salecommencedto2016 when the properties will be sold out. The underground garage spaces are intended to be granted to property owners in one-off.

(8) According to the information provided by the Estate Group, the construction cost amounting to RMB146,796,697.01 has been paid as of the Valuation Date. The total cost for completing the development plan was estimated to be RMB260,536,560. We have included such costs in the valuation.

(9) The capital value of the property in existing state estimated on the effective Valuation Date was RMB194,504,600. The estimated capital value is RMB352,078,130 upon completion.

(10) Pursuant to a Business Licence, No. 330421000106176(1/1) dated 12 November 2013, 嘉善恒華房地產開發 有限公司 (Jiashan Henghua Real Estate Development Co., Ltd.*) was established as a limited liability company on 10 October 2013 with a registered capital of RMB50,000,000 and the operation period is effective from 10 October 2013 to 9 October 2033.

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(11) According to the PRC legal opinion:

(i) 嘉善恒華房地產開發有限公司 (Jiashan Henghua Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 嘉善恒華房地產開發有限公司 (Jiashan Henghua Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 嘉善恒華房地產開發有限公司 (Jiashan Henghua Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants;

(v) The specified completion date of the project is November 2015;

(vi) According to the PRC laws, the property is not regarded as idle land;

(vii) The land portion and construction works of Hengtian Garden Lane (i.e. State-owned Land Use Rights Certificate, 善國用(2014)第00301196號 (Shan Guo Yong (2014) No.00301196*) is currently subject to mortgages in favour of Jiashan Branch of Bank of Jiaxing in respect of a loan of RMB44,900,000 with maturity date on 15 September 2017. Other than that, the property is free from any other mortgages, ownership disputes, seizures or other judicial compulsory measures.

(12) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

5 中國陝西省咸陽市渭城 Zhong Hong International Plaza project The property is under RMB348,008,763 區人民中路16號中宏國 comprises residential apartments and construction 際廣場A座高層住宅 auxiliary facilities area, etc. The total (13.26% interest 樓、B座高層住宅樓、 planned gross floor area of the project is attributable to 商業裙樓以及地下車庫 93,817.79 sq.m. Zhong Hong Chanhuade: (Zhong Hong International Plaza project comprises of RMB46,145,962) International Plaza, 16 Block A, a high-rise residential building Renmin Zhong Road, and Block B, a high-rise residential Weicheng District, building, a commercial podium and an Xianyang City, Shaanxi underground garage. The construction of Province, the PRC the project commenced on July 2013 and comprised of Block A, a was estimated to be completed and high-rise residential handover in December 2015. building, Block B, a high-rise residential According to the information provided, building, a commercial property of Zhong Hong International podium and an Plaza project has not been sold yet. underground garage*) The property is located in Weicheng District, Xianyang City, Shaanxi Province, the PRC, which is the main urban district of Xianyang. The developments nearby are mainly residential projects and commercial use property. As advised by the Estate Group, the property is mainly for commercial and residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire on November 2049 for commercial use and a term due to expire on November 2079 for residential use. The land is for commercial and residential use.

I – 29 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2014)第037號 (Xian Guo Yong (2014) No. 037*) dated 18 March 2014, the land use rights of Zhong Hong International Plaza with a site area of 11,012.5 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a direct 70%-owned subsidiary of Hengtian Real Estate as at the Valuation Date. See Note 12) for a term due to expire in November 2049 for commercial use and a term due to expire in November 2079 for residential use. The land is for commercial and residential use.

(2) Pursuant to a State-owned Land Use Rights Grant Contract, No. (2009)0008 dated 25 November 2009:

(i) Grantee: 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*)

(ii) Site Area: 11,012.5 sq.m.

(iii) Land: 咸陽市人民中路 (Renmin Zhong Road, Xianyang*)

(iv) Land Use: Commercial and residential use

(v) Land Use Term: 40 years for commercial use and 70 years for residential use

(vi) Land Premium: RMB4,653,954

(3) Pursuant to a Construction Land Planning Permit, 地字第610400201000043號 (Di Zi No. 610400201000043*) dated 5 June 2014, the construction site of the land parcel with a site area of approximately 17.36 mu was in compliance with the urban planning requirements.

(4) According to Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第610400201300056號 5 June 2014 International Plaza project 93,817.79 (Jian Zi No. 610400201300056*)

The property was included in the said site area.

I – 30 APPENDIX I PROPERTY VALUATION REPORT

(5) According to a Construction Works Commencement Permit, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

咸建施2013-59號 11 September 2013 International Plaza project 95,047 (Xian Jian Shi No. 2013-59*)

The property was included in the said site area.

(6) According to a Commodity House Pre-sale Permit, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

咸房預售證第2014038號 18 July 2014 Zhong Hong International Plaza 91,280.39 (XianFangYuShouZheng No. 2014038*)

(7) According to the information provided by the Estate Group, on the Valuation Date of the Zhong Hong International Plaza project, building Block A has main construction built up to Floor 28 and has completed 9 floors’ masonry works, building Block B has main construction built up to Floor 31 and has completed 8 floors’ masonry works, the commercial podium construction and the underground garage main construction have completed and is now processing with second structural masonry works. The commercial podium is expected to be delivered for use by December 2015. The residential portions are expected to be delivered for use by September 2016. The sales cycle of the residential and commercial properties of this project is estimated to be 4 years, a period commencing from late 2014 when the pre-sale commenced to 2017 when the properties will be sold out. The underground garage are intended to be granted to property owners.

(8) According to the information provided by the Estate Group, the construction cost (including land lot transfer compensations and demolition and relocation costs) amounting to RMB216,604,617.53 has been paid as of the Valuation Date. The total cost for completing the development plan (including land lot transfer compensations and demolition and relocation costs) was estimated to be RMB461,199,647.80. We have included such costs in the course of valuation.

(9) The capital value of the property in existing state estimated on the effective Valuation Date was RMB348,008,763. The estimated capital value is RMB785,762,769.14 upon completion.

(10) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

I – 31 APPENDIX I PROPERTY VALUATION REPORT

(11) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid Business License and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants;

(v) The specified completion date of the project is 10 March 2016;

(vi) According to the PRC laws, the property is not regarded as idle land;

(vii) The land portion and construction works of Zhong Hong International Plaza (i.e. State-owned Land Use Rights Certificates 咸國用(2014)第037號 (Xian Guo Yong (2014) No. 037*) and 咸國用(2006)第 217號 (Xian Guo Yong (2006) No. 217) is currently subject to mortgages in favour of Bank of Beijing Co., Ltd. in respect of a total loan amount of RMB150,000,000. Save for above, the property is free from any other mortgages and ownership disputes, seizures or other judicial compulsory measures;

(viii) Pursuant to the ‘‘Zhong Hong International Plaza’’ Development Agreement entered into between 咸 陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) and 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) in March 2012, 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) shall pay 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) the land lot transfer compensations and demolition and relocation costs equivalent to RMB112,905,000. As at the benchmark date of valuation, RMB67,247,625 was paid and RMB45,657,375 remained unpaid.

(12) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its shareholder’s rights (including but not limited to voting right), interests, profit and dividend (excluding investment cost), etc. incidental to its 30% Shareholding in 咸陽宏 大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the PRC legal opinion, this Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests in 咸陽宏大房地產開發 有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸

I – 32 APPENDIX I PROPERTY VALUATION REPORT

陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(13) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 33 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

6 中國江蘇省宿遷市泗陽 ‘‘Hengtian Xiangti Garden’’ covers a total The property is under RMB149,535,605 縣洋河南路10號恒天 • area of approximately 135,000 sq.m. and construction 香緹花園一期 (Hengtian a total planned gross floor area of (6.7626% interest Xiangti Garden Phase I, approximately 460,000 sq.m. with over attributable to 10 Yanghe Nan Road, 2,900 houses. The project is located in Chanhuade: Siyang County, Suqian the eastern side of Yanghe Road, Sishui RMB10,122,495) City, Jiangsu Province, riverside and the southern side of Huaihai the PRC*) Road (one of the main roads of the city) and is 500 metres to the city center area Hua Yuan Kou from the east. It is surrounded by CBD of Zhongxing Road, main business axis of Renmin Road and Sishui Commercial Street in the left and right sides. Shiyan Primary School and Shixiao Nursery of Siyang County are situated around it.

The expiration date of the land use rights for the project is 18 July 2052 for commercial use and 18 July 2082 for residential use. Currently Phase I of the project is under development.

Phase I of ‘‘Hengtian Xiangti Garden’’ commenced in October 2012, with a site area of 74.8 mu, amounting to 49,866.92 sq.m. The project is expected to be completed in June 2015. The total gross floor area is 167,516.50 sq.m. and the property types include 1,060 residential units of 122,947.23 sq.m., 99 shops of 10,866 sq.m., storage rooms of 5,701.84 sq.m. and 580 parking spaces. Phase I composes of two lots, with Lot I including a total of 6 buildings – Buildings No. 1-4, 7 and 11 as well as building S1 and Lot II including a total of 5 buildings – Buildings No. 5, 6, 8- 10.

Lot I was delivered by the end of 2014 and the revenue from which was recognised; Lot II is expected to be delivered and opened for sale in June 2015. The entire sales period is estimated toendbytheendof2016withall properties sold out.

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Notes:

(1) The State-owned Land Use Rights Certificates obtained for this project are as follows:

Type of Owner of Use Land Category Issue Date Certificate No. Land Use Rights Location Rights (Use) Site Area Expiration Date (sq.m.)

24 July 2012 泗國用(2012)第1120 宿遷金科房地產開發 Southern side of Huaihai Grant Commercial and 36,405 Commercial Use 號 (Si Guo Yong 有限公司 (Suqian Road and eastern side of Residential Use 18/7/2052, (2012) No.1120*) Jinke Real Estate Yanghe Road, Zhongxing Residential Use Development Co., Town 18/7/2082 Ltd.*) 24 July 2012 泗國用(2012)第1121 宿遷金科房地產開發 Southern side of Huaihai Grant Commercial and 33,333 Commercial Use 號 (Si Guo Yong 有限公司 (Suqian Road and eastern side of Residential Use 18/7/2052, (2012) No.1121*) Jinke Real Estate Yanghe Road, Zhongxing Residential Use Development Co., Town 18/7/2082 Ltd.*)

Phase I of ‘‘Hengtian Xiangti Garden’’ occupied all of the land No.1120 and 13,461.92 sq.m. of the land No.1121.

The owner of the land use rights of the property, 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is a subsidiary directly owned as to 51% by Hengtian Real Estate as at the Valuation Date.

(2) Pursuant to the State-owned Land Use Rights Grant Contract, No. 3213232010CR0032 dated 20 June 2010:

(i) Grantee: 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*)

(ii) Site Area: 135,096 sq.m.

(iii) Location of Land: Southern side of Huaihai Road and eastern side of Yanghe Road

(iv) Land Use: Commercial and residential use

(v) Land Use Term: Commercial use for 40 years and residential use for 70 years

(vi) Land Premium: RMB253,305,000

(vii) Total gross floor area: A total of not more than 270,000 sq.m.

The property was included in the said site area.

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(3) Pursuant to a Construction Land Planning Permit, the construction site of the land parcel with a total site area of 202.6 mu, totalling 135,096 sq.m., was in compliance with the urban planning requirements.

Name of Approved Scope Certificate No. Issue Date Land Use Project Land Usage of Land Use

地字第321323201100090號 20 December 2011 Xiangti Garden Residential and Approximately (Di Zi No.321323201100090*) Commercial Use 202.6 mu

The property was included in the said site area.

(4) According to the Construction Works Planning Permit, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第321323201300008號 25 March 2013 Buildings 9#-11#, S1# of 39,496 (Jian Zi No. Xiangti Garden 321323201300008*)

建字第321323201300007號 25 March 2013 Buildings 5#-8# of Xiangti 47,005 (Jian Zi No. Garden 321323201300007*)

建字第321323201300006號 25 March 2013 Buildings 1#-4# of Xiangti 54,343 (Jian Zi No. Garden 321323201300006*)

建字第321323201400085號 1 September 2014 Basement of Xiangti Garden 19,634 (Jian Zi No. 321323201400085*)

Total 160,478

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(5) According to a Construction Works Commencement Permit, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

321323020130022 22 April 2013 Buildings 1-4, 7, 11, S1 of 86,794 Xiangti Garden, Siyang

321323020130042 27 June 2013 Buildings 5, 6, 8, 9, 10 of 54,050 Xiangti Garden, Siyang

Total 140,844

(6) According to a Commodity House Pre-sale Permit, the following property was approved for pre-sale:

GFA for Certificate No. Issue Date Location of Pre-sale Property Pre-sale (sq.m.)

泗房准預[2013]030號 21 May 2013 Buildings 1#, 2#, 3# of Xiangti 37,294.5 (Si Fang Zhun Yu [2013] No. Garden 030*)

泗房准預[2013]069號 29 September 2013 Buildings 4#, 7#, 11#, S1 of 45,134.27 (Si Fang Zhun Yu [2013] No. Xiangti Garden 069*)

泗房准預[2013]081號 3 December 2013 Buildings 5#, 6# of Xiangti 22,587.44 (Si Fang Zhun Yu [2013] No. Garden 081*)

泗房准預[2013]089號 27 December 2013 Buildings 8#, 9#, 10# of Xiangti 28,797.29 (Si Fang Zhun Yu [2013] No. Garden 089*)

Total 133,813.5

(7) AccordingtotheinformationprovidedbytheEstateGroup, on the Valuation Date, the main construction of buildings No. 11 and S1 of Xiangti Garden project have been completed and are expected to be fully delivered for use by June 2015. The sales cycle of the residential and commercial properties is estimated to be 1.5 years, a period commencing from June 2015 when the pre-sale commenced to end of 2016 when the properties will be sold out. The underground garage are intended to be granted to property owners.

(8) According to the information provided by the Estate Group, the construction cost (including land lot transfer compensations and demolition and relocation costs) amounting to RMB365,740,848.61 has been paid as of the Valuation Date. The total cost for completing the development plan (including land lot transfer compensations and demolition and relocation costs) was estimated to be RMB549,201,158.45. We have included such costs in the course of valuation

(9) The capital value of the property in existing state estimated on the effective Valuation Date was RMB149,535,605. The estimated capital value is RMB625,946,204 upon completion.

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(10) Pursuant to a Business Licence, No. 321323000057836 dated 26 December 2013, 宿遷金科房地產開發有限 公司 (Suqian Jinke Real Estate Development Co., Ltd.*) was established as a limited liability company on 21 May 2010 with a registered capital of RMB100,000,000 and the valid operation period is effective from 21 May 2010 to 10 May 2030.

(11) According to the PRC legal opinion:

(i) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) has obtained a valid Business Licence and is legally established;

(ii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The Land Use Rights of 33,333 sq.m. in [泗國用(2012)第1121號] ([Si Guo Yong (2012) No. 1121]*), 36,405 sq.m. in [泗國用(2012)第1120號] ([Si Guo Yong (2012) No.1120]*), and the unsold properties and shops of Buildings No. 1, 2, 3, 4, 7, 11 and S1 of Phase I of ‘‘Hengtian Xiangti Garden’’ under development, including 439 residential units and 92 shops, are subject to a mortgage in favour of 中國農業銀行泗陽縣支行 (Siyang Branch of Agricultural Bank of China*) with a term from October 2013 to 1 October 2016. The amount of the above-mentioned mortgage loan is RMB50,000,000;

Save for above, the property is free from any other mortgages and ownership disputes, seizures or other judicial compulsory measures;

(v) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants;

(vi) The specified completion date of the project is 30 September 2015;

(vii) According to the PRC laws, the property is not regarded as idle land.

(12) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 38 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

7 中國陝西省咸陽市渭城 Nos. T3, T4 of Zhong Hong Li She The property is under RMB37,128,269 區人民中路16號中宏麗 project comprises residential apartments construction. 舍T3、T4號樓 and auxiliary facilities area, etc. The total (13.26% interest (Building Nos. T3, T4 planned gross floor area of the project is attributable to of Zhong Hong Li She, 21,200 sq.m. Nos. T3, T4 of Zhong Hong Chanhuade: 16 Renmin Zhong Road, Li She project comprises high-rise RMB4,923,208) Weicheng District, residential buildings of T3 and T4. The Xianyang City, Shaanxi construction of the project commenced in Province, the PRC*) October 2014 and is expected to be completed and delivered in September 2016.

The property is located in Weicheng District, Xianyang City, Shaanxi Province, the PRC, which is the main urban district of Xianyang City. The developments nearby are mainly residential projects and commercial use property. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue and litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in March 2071 for residential use.

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2005)第201號 (Xian Guo Yong (2005) No. 201*) dated 16 November 2005, the land use rights of Nos. T3, T4 of Zhong Hong Li She with a site area of 58,783 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a direct 100%-owned subsidiary of Hengtian Real Estate as at the Valuation Date) (See Note 9) for a term due to expire in March 2071 for residential use.

(2) Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 71,950 sq.m.

I – 39 APPENDIX I PROPERTY VALUATION REPORT

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB4,662,360

Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 51,702 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB3,350,289.60

According to the Land Development Agreement entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) (as Party A), 宏大投資有限公司 (Hongda Investment Co., Ltd.*) (as Party B) and 中國 紡織機械（集團）有限公司 (China Textile Machinery (Group) Co., Ltd.*) (as Party C) dated 18 August 2005, Party A agreed to transfer, the land of its original production plant (which is the land portion of the production plant), to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), the subsidiary of Party B for the overall joint development. The aggregate amount of the land compensation plus the entitlement to dividend of 40% shall be determined at RMB130,000,000. According to the PRC legal opinion, 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) shall accordingly obtain the legal land use rights of the property.

The property was included in the said site area.

(3) Pursuant to a Construction Land Planning Permit, 編號2005征72號 (Bian Hao 2005 Zheng No. 72*) dated 28 July 2005, the construction site of the land parcel with a total site area of approximately 87.53 mu was in compliance with the urban planning requirements.

I – 40 APPENDIX I PROPERTY VALUATION REPORT

(4) According to a Construction Works Planning Permits the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

編號2006新76號 4 August 2006 High-rise residential buildings in 42,400 (Bian Hao 2006 Xin No. 76*) Nos. T1-T4 of Phase II of Zhong Hong

The property was included in the said site area.

(5) According to a Construction Works Commencement Permit, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

咸建施2014-68號 7 November 2014 High-rise residential buildings in 21,200 (Xian Jian Shi No. 2014-68*) Nos. T3, T4 of Phase II of Zhong Hong

The property was included in the said site area.

(6) AccordingtotheinformationprovidedbytheEstate Group, on the Valuation Date of the project, the concrete wall structure of the basement of the residential portion thereof is under construction. The main construction is expected to be fully completed by October 2015 and to be delivered for use by September 2016. The sales cycle of the residential properties is estimated to be 1 year, a period commencing from the end of 2015 when the pre-sale commenced to the end of 2016 when the properties will be sold out.

(7) In accordance with the information provided by the Estate Group, construction cost amounting to RMB20,802,212.41 has been paid as of the Valuation Date. The total cost for completing the development plan was estimated to be RMB72,252,724.94. We have included such costs in the course of valuation.

(8) The capital value of the property in existing state estimated on the effective Valuation Date was RMB37,128,269.44. The estimated capital value is RMB115,255,920.00 upon completion.

I – 41 APPENDIX I PROPERTY VALUATION REPORT

(9) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its shareholder’s rights (including but not limited to voting right), interests, profit and dividend (excluding investment cost), etc. incidental to its 30% Shareholding in 咸陽宏 大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the PRC legal opinion, this Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate owns the entire equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地 產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(10) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(11) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid Business Licence and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures;

(v) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants or term for completion of the development plan;

(vi) According to the PRC laws, the property is not regarded as idle land.

I – 42 APPENDIX I PROPERTY VALUATION REPORT

(12) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Business Licence Yes

I – 43 APPENDIX I PROPERTY VALUATION REPORT

Group III – Properties held by the Estate Group for future development in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

8 中國陝西省咸陽市渭城 Zhong Hong Northern District of The property is a reserved RMB2,582,291 區人民中路16號北區商 Commercial Zone project is a business land. Buildings and 業區土地及地上建築物 complex. structures thereon are to (13.26% interest (Land of and the be dismantled. As of the attributable to structures thereon of 咸陽宏大房地產開發有限公司 (Xianyang benchmark date of Chanhuade: Northern District of Hongda Real Estate Development Co., valuation, they are leased RMB342,412) Commercial Zone, 16 Ltd.*) plans to conduct preliminary work out. The monthly rental is Renmin Zhong Road, for the Northern District of Commercial collected by 咸陽紡織機 Weicheng District, Zone project in the first half of 2015. 械廠 (Xianyang Textile Xianyang City, Shaanxi The Construction Land Planning Permit Machinery Factory*). The Province, the PRC*) and the Construction Works Planning lease term will expire by Permit concerning the project have not at the end of 2015. been obtained as of the benchmark date of valuation.

Buildings and structures thereon are to be dismantled. The demolition expected to commence in 2016. The development plan, construction schedule and sales plan of the project have not been prepared.

The property is located in Weicheng District, Xianyang City, Shaanxi Province, the PRC, which is the main urban district of Xianyang City. The developments nearby are mainly residential projects and commercial use property. As advised by the Estate Group, the property is mainly for commercial use. There is no environmental issue and litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in December 2042 for commercial use.

I – 44 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2006)第217號 (Xian Guo Yong (2006) No. 217*) dated 31 December 2006, the land use rights of Northern District of Commercial Zone with a site area of 8,819 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a direct 70%-owned subsidiary of Hengtian Real Estate as at the Valuation Date) (See Note 4) for a term due to expire in December 2042 for commercial use.

(2) Pursuant to State-owned Land Use Rights Grant Contract, No. 2002-55 dated 2002:

(i) Grantee: 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*)

(ii) Site Area: 8,819 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Commercial use

(v) Land Use Term: 40 years

(vi) Land Premium: RMB2,275,174

(3) By now, 咸陽宏大 (Xianyang Hongda*) has only applied and obtained the Land Use Rights Certificate for the land. However, the original buildings are still in use, and no demolition plan concerning the land has been agreed upon and no land-use planning is developed. As the future development and operation of the project and its realisable interests cannot be readily estimated, the valuation is presented at the carrying amount of occurred development cost.

(4) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its shareholder’s rights (including but not limited to voting right), interests, profit and dividend (excluding investment cost), etc. incidental to its 30% Shareholding in 咸陽宏 大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate owns the entire equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

I – 45 APPENDIX I PROPERTY VALUATION REPORT

(5) Pursuant to a Business licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(6) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The land portion of Northern District of Commercial Zone (i.e. State-owned Land Use Rights Certificate, 咸國用(2006)第217號 (Xian Guo Yong (2006) No. 217*)) is currently subject to mortgages in favour of 北京銀行股份有限公司 (Bank of Beijing Co., Ltd.*) in respect of a total loan amount of RMB150,000,000. Except for that, the property is free from any ownership dispute, seizure or other judicial compulsory measures;

(v) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants or term for completion of the development plan;

(vi) According to the PRC laws, the property is not regarded as idle land.

(7) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Business Licence Yes

I – 46 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

9 中國江蘇省宿遷市泗陽 ‘‘Hengtian Xiangti Garden’’ covers a total As at the Valuation date, RMB169,737,169 縣洋河南路10號恒天 • area of approximately 135,000 sq.m. and the property is vacant. 香緹花園後期土地 (The a total planned gross floor area of The total vacant area is (6.7626% interest later phase of the land approximately 460,000 sq.m. with over 85,229.08 sq.m. attributable to of Hengtian Xiangti 2,900 apartments. The project is located Chanhuade: Garden, 10 Yanghe Nan in the eastern side of Yanghe Road, RMB11,478,646) Road, Siyang County, Sishuiriversideandthesouthernsideof Suqian City, Jiangsu Huaihai Road (one of the main roads of Province, the PRC*) the city) and is 500 meters to the city center area Hua Yuan Kou from the east. It is surrounded by CBD of Zhongxing Road, main business axis of Renmin Road and either sides of Sishui Commercial Street. Shiyan Primary School and Shixiao Nursery of Siyang County are situated around it.

Phase I of ‘‘Hengtian Xiangti Garden’’ commenced the construction in October 2012, covering a site area of 74.8 mu, amounting to 49,866.92 sq.m. The construction was expected to be completedbyJune2015(seevaluation certificate No.6). The project’s total gross floor area is 167,516.50 sq.m.

The later phase of the land to be developed covering part of the land numbered [泗國用(2012)第1121號] ([Si Guo Yong (2012) No. 1121]*) with an area of 19,871.08 sq.m., all of the land numbered [泗國用(2012) 第1122號] ([Si Guo Yong (2012) No. 1122]*) with an area 39,467 sq.m. and all of the land numbered [泗國用(2012) 第1119號] ([Si Guo Yong (2012) No. 1119]*) with an area of 25,891 sq.m.

The land use rights of the property has been granted for term due to expire on 18 July 2052 for commercial use and on 18 July 2082 for residential use.

I – 47 APPENDIX I PROPERTY VALUATION REPORT

Notes:

(1) The State-owned Land Use Rights Certificates obtained for this project are as follows:

Owner of Type of Land Category Issue Date Certificate No. Land Use Rights Location Use Rights (Use) Site Area Expiration Date (sq.m.)

24 July 泗國用(2012)第1121 宿遷金科房地產開發 Southern side of Huaihai Grant Commercial and 33,333 Commercial Use 2012 號 (Si Guo Yong 有限公司 (Suqian Road and eastern side of Residential 18/7/2052, (2012) No.1121*) Jinke Real Estate Yanghe Road, Zhongxing Use Residential Use Development Co., Town 18/7/2082 Ltd.*)

24 July 泗國用(2012)第1122 宿遷金科房地產開發 Southern side of Huaihai Grant Commercial and 39,467 Commercial Use 2012 號 (Si Guo Yong 有限公司 (Suqian Road and eastern side of Residential 18/7/2052, (2012) No.1122*) Jinke Real Estate Yanghe Road, Zhongxing Use Residential Use Development Co., Town 18/7/2082 Ltd.*)

24 July 泗國用(2012)第1119 宿遷金科房地產開發 Southern side of Huaihai Grant Commercial and 25,891 Commercial Use 2012 號 (Si Guo Yong 有限公司 (Suqian Road and eastern side of Residential 18/7/2052, (2012) No. 1119*) Jinke Real Estate Yanghe Road, Zhongxing Use Residential Use Development Co., Town 18/7/2082 Ltd.*)

The property included part of the land certificate No.1121 (19,871.08 sq.m.) and all of the land certificate No.1122 and land No.1119. The owner of the Land Use Rights of the property, 宿遷金科房地產開發有限公 司 (Suqian Jinke Real Estate Development Co., Ltd.*) is a subsidiary directly owned as to 51% by Hengtian Real Estate as at the Valuation Date.

(2) Pursuant to State-owned Land Use Rights Grant Contract, No. 3213232010CR0032 dated 20 June 2010:

(i) Grantee: 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*)

(ii) Site Area: 135,096 sq.m.

(iii) Land: Southern side of Huaihai Road and eastern side of Yanghe Road

(iv) Land Use: Commercial and residential use

(v) Land Use Term: 40 years for commercial use and 70 years for residential use

(vi) Land Premium: RMB253,305,000

(vii) Total gross floor area: A total of not more than 270,000 sq.m.

The property was included in the said site area.

I – 48 APPENDIX I PROPERTY VALUATION REPORT

(3) Pursuant to a Construction Land Planning Permit, the construction site of the land parcel with a total site area of 202.6 mu, totalling 135,096 sq.m., was in compliance with the urban planning requirements.

Name of Land Use Approved Scope Certificate No. Issue Date Project Land Usage of Land Use

地字第321323201100090號 20 December Xiangti Garden Residential and Approximately (Di Zi No.321323201100090*) 2011 Commercial 202.6 mu Use

The property was included in the said site area.

(4) According to the information provided by the Estate Group, the expended construction cost of the property as at the Valuation Date was approximately RMB35,000. We have included such costs in the course of valuation.

(5) Pursuant to a Business Licence, No. 321323000057836 dated 26 December 2013, 宿遷金科房地產開發有限 公司 (Suqian Jinke Real Estate Development Co., Ltd.*) was established as a limited liability company on 21 May 2010 with a registered capital of RMB100,000,000 and the operation period is effective from 21 May 2010 to 10 May 2030.

(6) According to the PRC legal opinion:

(i) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The Land Use Rights of 33,333 sq.m. in [泗國用(2012)第1121號] ([Si Guo Yong (2012) No. 1121]*) is subject to a mortgage in favour of 中國農業銀行泗陽縣支行 (Siyang Branch of Agricultural Bank of China*) with a term from October 2013 to 1 October 2016. Other than that, the property is free from any mortgages, ownership disputes, seizures or other judicial compulsory measures;

(v) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants or term for completion of the development plan;

(vi) According to the PRC laws, the property is not regarded as idle land.

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(7) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

10 中國陝西省渭南市臨渭 恒天首府 (Hengtian Shoufu*) project As at the Valuation Date, RMB173,775,932 區華山大街北恒天首府 comprises residential houses, commercial the property was a reserve 二期及三期土地 (Lands properties, auxiliary facilities and land and a total of (5.3040% interest of Hengtian Shoufu kindergartens, etc. The total planned 63,344.34 sq.m. was attributable to Phase II and Phase III, gross floor area of the project (including vacant. Chanhuade: North Huashan Avenue, Phases I, II and III) is 332,706.68 sq.m. RMB9,217,075) Linwei District, Weinan and the planned site area of Phases II and City, Shaanxi Province, III is 245,916.24 sq.m. the PRC*) The property is located in Linwei District, Weinan City, Shaanxi Province, the PRC, which is the main urban district of Weinan City. Developments nearby are developed mainly for residential use. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The project site area is 85,700.26 sq.m. The land to be developed for Phases II and III covering part of the land numbered 渭城國用(2012)第058號 (Wei Cheng Guo Yong (2012) No. 058*) with an area of 63,344.34 sq.m.

The land use rights of the property have been granted for a term due to expire in May 2082 for residential use.

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 渭城國用(2012)第058號 (Wei Cheng Guo Yong (2012) No. 058*) dated 6 September 2012, the land use rights of Hengtian Shoufu with a site area of 85,700.26 sq.m. have been granted to 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) for a term due to expire in May 2082 for residential use.

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(2) Pursuant to State-owned Land Use Rights Grant Contract, No. SX001654 dated 16 December 2011:

(i) Grantee: 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) (a company indirectly owned as to 28% by Hengtian Real Estate as at the Valuation Date. Please refer to Note 5)

(ii) Site Area: 85,700.26 sq.m.

(iii) Land: 解放路與華山大街十字西北角 (Northwest corner to the cross of Jiefang Road and Huashan Avenue*)

(iv) Land Use: Residential use

(v) Land Use Term: 70 years

(vi) Land Premium: RMB111,053,000

The property was included in the said site area.

(3) Pursuant to a Construction Land Planning Permit, 渭規地字第[2012]10號 (Wei Gui Di Zi No. [2012]10*) dated 14 May 2012, the construction site of the land parcel with a total gross floor area of 332,706.68 sq.m. was in compliance with the urban planning requirements.

The property was included in the said site area.

(4) According to the information provided by the Estate Group, phases II and III of the project have not yet been constructed as at the Valuation Date and no construction cost has been paid as of the Valuation Date. The capital value of the project estimated based on the situation at the Valuation Date was RMB173,775,932.46.

(5) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) owns 40% of the equity interests of 渭南恒天地產 有限公司 (Weinan Hengtian Real Estate Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械 廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產 開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and (including but not limited to voting right) accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限 公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to applicable laws and regulations, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the

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legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) which in turn, owns 40% of the equity interests of 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*).

(6) Pursuant to a Business Licence, No. 610500100014786 dated 19 May 2014, 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) was established as a limited liability company on 22 March 2010 with a registered capital of RMB30,000,000 and the valid operation period is effective from 22 March 2010 to 21 March 2060.

(7) According to the PRC legal opinion:

(i) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) is the legal owner of the property;

(iii) 渭南恒天地產有限公司 (Weinan Hengtian Real Estate Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The land portion and construction works of Hengtian Shoufu (i.e. State-owned Land Use Rights Certificate, 渭城國用(2012)第058號 (Wei Cheng Guo Yong (2012) Di No. 058)*) is currently subject to a mortgage in favour of Bank of Beijing Co., Ltd. in respect of a total loan amount of RMB180,000,000. Other than that, the property is free from any ownership disputes, seizures or other judicial compulsory measures;

(v) The implementation of the project is not subject to special or important restraints or specific conditions. There is no special or important construction covenants or term for completion of the development plan;

(vi) According to the PRC laws, the property is not regarded as idle land.

(8) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

11 中國江西省南昌市紅谷 As the Land Use Rights Certificate in As at the Valuation Date, RMB351,333,695 灘新區九龍湖片區西部 relation to the Honggutan New District the property was a reserve 大街以南、城運大道以 project has not been obtained and only land and a total of (6.7626% interest 西土地 (Land of Land Use Rights Grant Contract was 55,965.23 sq.m. was attributable to Honggutan New District signed, the specific time of obtaining vacant. The Grant Chanhuade: (South of the street in such certificate, the development time Contractinrelationtothe RMB23,759,292) the western part of and development products can not be property has been signed Jiulonghu area and west ascertained accurately. but no land use rights of Cheng Yun Avenue), certificate has been Nanchang City, Jiangxi The property is located in Honggutan obtained. The land Province, the PRC*) New District, Jiangxi Province, which is premium has been paid the new city district of Nanchang City. but deed tax has not been Developments nearby are developed paid. mainly for residential and office use. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

Expenses incurred in the project mainly include land transfer price.

Notes:

(1) Pursuant to State-owned Land Use Rights Grant Contract, No. 36201401120024 dated 11 September 2014:

(i) The grantees of the land are 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*), 北京中地華夏投資 有限公司 (Beijing Zhong Di Hua Xia Investment Co., Ltd.*) and 江西省昌吉恒中投資有限公司 (Jiangxi Province Chang Ji Heng Zhong Investment Co., Ltd.*). The grantor agreed when a new company namely, 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*), to be established by the grantees with investment as to 51% by 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*), 25% by 北京中地華夏投資有限公司 (Beijing Zhong Di Hua Xia Investment Co., Ltd.*) and 24% by 江西省昌吉恒中投資有限公司 (Jiangxi Province Chang Ji Heng Zhong Investment Co., Ltd.*) is incorporated, the grantor will enter into a supplemental agreement to the present contract with the grantees and such a newly established company. The newly established company shall enjoy all rights and assume all obligations of the present contract. The State-owned Land Use Rights Certificate of the present contract shall be applied under the name of the newly established company.

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(ii) Site Area: 55,965.23 sq.m.

(iii) Land: the parcel of land (HJZ705-C01) in south of the street in the 紅谷灘新區九龍湖片區西部大街 以南、城運大道以西 (western part of Jiulonghu area and west of Cheng Yun Avenue, Honggutan New District*)

(iv) Land Use: Business and Commercial Use

(v) Land Use Term: 40 years

(vi) Land Premium: RMB335,792,000 (RMB335,792,000 has been paid)

(2) Pursuant to supplemental agreement of the State-owned Land Use Rights Grant Contract, No. 36201401120024 dated 30 October 2014:

The grantees of the land are 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*), 北京中地華夏投資有限公 司 (Beijing Zhong Di Hua Xia Investment Co., Ltd.*) and 江西省昌吉恒中投資有限公司 (Jiangxi Province Chang Ji Heng Zhong Investment Co., Ltd.*). The grantor agreed when a new company namely, 恒天地產 （南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*), to be established by the grantees with investment as to 51% by 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*), 25% by 北京中地華夏投資 有限公司 (Beijing Zhong Di Hua Xia Investment Co., Ltd.*) and 24% by 江西省昌吉恒中投資有限公司 (Jiangxi Province Chang Ji Heng Zhong Investment Co., Ltd.*) is incorporated, the grantor will enter into a supplemental agreement to the present contract with the grantees and such a newly established company. The newly established company shall enjoy all rights and assume all obligations of the present contract. The State-owned Land Use Rights Certificate of the present contract shall be applied under the name of the newly established company.

(3) Pursuant to supplemental agreement of the State-owned Land Use Rights Grant Contract, No. 36201401120024 dated 4 February 2015, 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*) discovered that the gross floor area is not in line with the red-line map during the application for the Construction Land Use Planning Permit. According to the survey conducted by a surveying firm, the gross floor area was 56,141.53 sq.m. (equivalent to 84.212 mu), representing a difference of 176.3 sq.m over the transferred area, for which a land premium of RMB1,057,800 has been paid in full.

(4) Pursuant to a Construction Land Use Planning Permit 地字第360100201401078號 (Di Zi No. 360100201401078*) dated 12 December 2014, the construction site of a plot with a total gross floor area of approximately 84.212 mu has been complied with urban planning requirements.

(5) Accordingly to the information provided by the Estate Group, as at the Valuation Date, the project has not been constructed. No land use rights certificate has been obtained for the parcel of land and the future development operation and achievable interests of the project cannot be estimated reliably, the related development cost was presented at carrying amount in the valuation.

(6) Pursuant to a Business Licence, No. 360100110017925 dated 10 July 2014, 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*) was established as a limited liability company on 19 July 2013 with a registered capital of RMB100,000,000 and the operation period is effective from 19 July 2013 to 18 July 2033.

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(7) According to the PRC legal opinion:

(i) 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*) shall be the legal owner of the property after full payment of the land premium and may obtain the Land Use Rights Certificate;

(iii) 恒天地產（南昌）有限公司 (Hengtian Real Estate (Nanchang) Co., Ltd.*) shall be entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term after full payment of all land premium;

(iv) The property is free from any mortgage, any ownership disputes, seizures or other judicial compulsory measures;

(v) The specified date for the commencement of the project’s construction is before 11 June 2015. The specified date for project’s completion is before 11 June 2018;

(vi) According to the PRC laws, the property is not regarded as idle land.

(8) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Business Licence Yes

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Group IV – Properties held by the Estate Group for self use in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

12 中國陝西省咸陽市渭城 Zhonghong Tower was completed in The property is for self RMB4,941,800 區人民中路16號中宏大 January 2007 and is developed for use as office. 廈22及23層 (Floors 22 commercial and residential use. (13.26% interest and 23, Zhonghong attributable to Tower, 16 Renmin Zhonghong Tower is a project developed Chanhuade: Zhong Road, Weicheng by 咸陽宏大房地產開發有限公司 RMB655,283) District, Xianyang City, (Xianyang Hongda Real Estate Shaanxi Province, the Development Co., Ltd.*). Floors 22 and PRC*) 23 are for self use as office for 咸陽宏大 房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). 咸 陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has conducted the basic finishing.

The property is located in 中國陝西省咸 陽市渭城區 (Weicheng District, Xianyang City, Shaanxi Province, the PRC*), which is the main urban district of 咸陽市 (Xianyang City*). Developments nearby are mainly residential and commercial projects. As advised by the Estate Group, the property is mainly for office use; there is no environmental issues or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in December 2072 for residential use.

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Notes:

(1) The company has obtained the Property Ownership Certificates (咸陽市房權證秦都區字第G010460-6號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-6*), 咸陽市房權證秦都區字第G010460-7號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-7*), 咸陽市房權證秦都區字第G010460-8號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-8*), 咸陽市房權證秦都區字第G010460-9號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-9*), 咸陽市房權證秦都區字第G010460-10號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-10*), 咸陽市房權證秦都區字第G010460-11 號 (Xian Yang Shi Fang Quan Zheng Qin Du Qu Zi No. G010460-11*)). The said property ownership certificates were issued on 10 June 2007 and details are summarised as follows:

(i) Owner of the Property: 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a direct 70%-owned subsidiary of Hengtian Real Estate as at the Valuation Date (see Note 3))

(ii) Location: 陝西省咸陽市人民中路16號 (16 Renmin Zhong Road, Xianyang City, Shaanxi Province*)

(iii) Room No.: Nos. 22-1, 22-2, 22-3, 22-4, 22-5 and 23-1 of Zhonghong Tower

(iv) Category of Property: Property of a limited liability company

(v) Floor Area: 998.35 sq.m.

(vi) Designed Use: Residential

(vii) Number of levels: 23

(viii) Building Structure: Reinforced concrete frame-shear wall structure

(ix) Date of Completion: Year of 2007

(2) The Land Use Rights Certificate (編號：咸國用(2002)字第160號 (No.: Xian Guo Yong (2002) Zi No. 160*)) of the property has been obtained.

(i) Land Use: Commercial use

(ii) Type of Land Use Rights: Granted

(iii) Expiry Date: 2072 for residential use and 2042 for commercial use

(iv) Area of Land Use Rights: 1,753.7 sq.m. (representing the entire area of land use rights of Zhonghong Tower)

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(3) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有 限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織 機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to applicable laws and regulations, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(4) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(5) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business license and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(6) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Xianyang City Property Ownership Certificate Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

13 中國陝西省咸陽市秦都 Room 102, Unit 2, Building No. 3, Phase The property is used by RMB384,300 區寶泉路中宏星苑二期 IIofZhongHongXingYuanisa 咸陽中宏物業服務有限公 3號樓2單元102室 residential property. The property was 司 (Xianyang Zhong (13.26% interest (Room 102, Unit 2, competed in September 2012. Hong Property Services attributable to Building No. 3, Phase Co., Ltd.*) as office. Chanhuade: II, Zhong Hong Xing Zhong Hong Xing Yuan is the project RMB50,958) Yuan, Baoquan Road, developed by 咸陽宏大房地產開發有限 Qindu District, 公司 (Xianyang Hongda Real Estate Xianyang City, Shaanxi Development Co., Ltd.*). The area of Province, PRC*) Room 102, Unit 2, Building No. 3, Phase IIofZhongHongXingYuanis70.29 sq.m. It is used by 咸陽中宏物業服務有 限公司 (Xianyang Zhong Hong Property Services Co., Ltd.*) as office.

咸陽中宏物業服務有限公司 (Xianyang Zhong Hong Property Services Co., Ltd.*) is responsible for the property management services of all projects of 咸 陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). As there is no design for property management use office in Zhong Hong Xing Yuan, so such residential property is provided to the property management company as management use.

The property is located in Qindu District, Xianyang City, Shaanxi Province, PRC. Weicheng District is the main city of Xianyang City. Developments nearby are developed mainly for residential and commercial use. As advised by the Estate Group, the property is mainly for office use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in November 2077 for residential use.

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Notes:

(1) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has not yet obtained the Property Ownership Certificate.

(2) The Property has obtained the Land Use Rights Certificate (編號：咸國用(2008)第004號 (No.: Xian Guo Yong (2008) Zi No. 004*)).

(i) Land Use: Residential

(ii) Type of Land Use Rights: Granted

(iii) Expiry Date: November 2077

(iv) Area of Land Use Rights: 7,025 sq.m. (representing the entire area of land use rights of Phase II of Zhong Hong Xing Yuan)

(3) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有 限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織 機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to applicable laws and regulations, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(4) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

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(5) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business license and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(6) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Xianyang City Property Ownership Certificate No Business Licence Yes

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Market Value in existing state as at 30 No. Property Description and tenure Particulars of occupancy April 2015

14 中國上海市徐匯區漕寶 上海市徐匯區漕寶路400號上海明申廣場 The property is self used RMB9,969,400 路400號上海明申廣場 (Mingshen Plaza, 400 Caobao Road, by 宿遷金科房地產開發 1203室、1204室、1205 Xuhui District, Shanghai*), a class-A 有限公司 (Suqian Jinke (6.7626% interest 室及1206室 (Rooms office building, is located at the Real Estate Development attributable to 1203, 1204, 1205 & intersection of 漕寶路 (Caobao Road*) Co., Ltd.*) as office. Chanhuade: 1206, Mingshen Plaza, and 虹漕路 (Hongcao Road*). RMB674,191) 400 Caobao Road, Appearance of the building creates a Xuhui District, modern impression and its interior adopts Shanghai, the PRC*) an advanced design. Total gross floor area of the 25-floor building is 35,619 sq.m., comprising a main building (floors 5-25) for office use with a gross floor area of 20,648 sq.m. and a podium (floors 1-4) with a gross floor area of 11,838 sq.m. The building is equipped with over 100 underground and overground parking spaces, sufficiently satisfying the users’ needs. The external facade of the main building is glass walls with 5 express elevators accessible to all floors, providing convenient vertical transportation. The main building has an exclusive entry to the office area and a simple yet gorgeous lobby with fine granite floor and natural marble walls. A central air conditioning system is adopted enabling separated air control of different units. In addition, the building is furnished with sufficient telephone lines to ensure improved and advanced smart functions and there are dining rooms within the building. The building was completed in 2002.

The land is for composite use with a term from 18 April 2011 to 18 December 2052.

宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) purchased the property with a gross floor area of 506.06 sq.m. in April 2011. The property was redecorated in February 2012 and the 4 offices were rearranged into a larger one.

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Notes:

(1) Pursuant to a 上海市房地產權證 (Shanghai Property Ownership Certificate*), the details provided in the aforesaid certificates are summarised as follows:

Use Right Room Date of Location of Nature of Land Acquisition Lot No. or Registration Certificate No. Owner Property Ownership Method Use Lot No. Area Land Use Term Unit GFA Property Type (sq.m.) (sq.m.)

5 May 2011 滬房地徐字(2011) 宿遷金科房地產開 漕寶路400號 State-owned Granted Composite 徐匯區康健街道 8,457 18 April 2011 to 1203 110.89 Office building 第006411號 發有限公司 (400 Caobao construction 329街坊1丘 18 December (HuFangDi (Suqian Jinke Road*) land use right (1 Hillock, 2052 Xu Zi (2011) Real Estate 329 Block No. 006411*) Development Street, Co., Ltd.*) Kangjian Sub- District, Xuhui District*)

28 July 2011 滬房地徐字(2011) 宿遷金科房地產開 漕寶路400號 State-owned Granted Composite 徐匯區康健街道 8,457 18 April 2011 to 1204 142.14 Office building 第001926號 發有限公司 (400 Caobao construction 329街坊1丘 18 December (HuFangDi (Suqian Jinke Road*) land use right (1 Hillock, 2052 Xu Zi (2011) Real Estate 329 Block No. 001926*) Development Street, Co., Ltd.*) Kangjian Sub- District, Xuhui District*)

5 May 2011 滬房地徐字(2011) 宿遷金科房地產開 漕寶路400號 State-owned Granted Composite 徐匯區康健街道 8,457 18 April 2011 to 1205 110.89 Office building 第006412號 發有限公司 (400 Caobao construction 329街坊1丘 18 December (HuFangDi (Suqian Jinke Road*) land use right (1 Hillock, 2052 Xu Zi (2011) Real Estate 329 Block No. 006412*) Development Street, Co., Ltd.*) Kangjian Sub- District, Xuhui District*)

5 May 2011 滬房地徐字(2011) 宿遷金科房地產開 漕寶路400號 State-owned Granted Composite 徐匯區康健街道 8,457 18 April 2011 to 1206 142.14 Office building 第006409號 發有限公司 (400 Caobao construction 329街坊1丘 18 December (HuFangDi (Suqian Jinke Road*) land use right (1 Hillock, 2052 Xu Zi (2011) Real Estate 329 Block No. 006409*) Development Street, Co., Ltd.*) Kangjian Sub- District, Xuhui District*)

The owner of use rights of the land, 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is a direct 51%-owned subsidiary of Hengtian Real Estate as at the Valuation Date. The total purchase cost of the property is RMB7,882,494, which included other costs related to the acquisition.

(2) Pursuant to a Business licence, No. 321323000057836 dated 26 December 2013, 宿遷金科房地產開發有限 公司 (Suqian Jinke Real Estate Development Co., Ltd.*) was established as a limited liability company on 21 May 2010 with a registered capital of RMB100,000,000 for a valid operation period from 21 May 2010 to 10 May 2030.

(3) According to the PRC legal opinion:

(i) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is the legal owner of the property;

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(iii) 宿遷金科房地產開發有限公司 (Suqian Jinke Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(4) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Shanghai Property Ownership Certificate Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

15 中國北京朝陽區雙橋 Located at 中國北京朝陽區水郡長安家園2 Rooms 202 and 203 of RMB0 路水郡長安家園2號院 號院1號樓 (Building No. 1, Yard No. 2, the property are leased. 1號樓202、203及302 Shuijun Chang An JiaYuan, Chaoyang Pursuant to the property (13.26% interest 室 (Rooms 202, 203 District, Beijing, the PRC*), the property tenancy agreement entered attributable to & 302, Building No. was completed in 2008. Floors 2-3 thereof into between 北京京德順 Chanhuade: 1, Yard No. 2, are owned by 北京京德順房地產開發有限 房地產開發有限公司 RMB0) Shuijun Chang An 公司 (Beijing Jingdeshun Real Estate (Beijing Jingdeshun Real JiaYuan, Shuangqiao Development Co., Ltd.*). Pursuant to a Estate Development Co., Road, Chaoyang Property Ownership Certificate, 京房權證 Ltd.*) and 北京粉紅女郎 District, Beijing, the 朝字第670728號 (JingFangQuanZheng 美容有限公司 (Beijing PRC*) Chao Zi No. 670728*) dated 11 December Fenhong Nulang Beauty 2008, the property covers a total area of Salon Co., Ltd.*), the 2,980.17 sq.m. for office use as office of lease term shall property management and health clinic as commence on 18 October planned. The details are as follows: 2010 and expire on 17 December 2015, of which 202 Office of property the term prior to 17 June management 606.42 2011 was free of rent. 203 Health clinic 53.91 The annual pre-tax rental 302 Office of property after the expiry of the management 688.84 rent-free term is RMB30,000 for the year Total 1,349.17 (excluding management fee and other operating expenses). As at the The property is located in Chaoyang Valuation Date, such District, Beijing. Developments nearby are rental is in line with the mainly commercial and residential projects. market rent. The annual The property is mainly leased and used for rental should be subject to the provision of services to owners of an annual increment of ChangAnJiaYuan;thereisno 5% on the previous year environmental issues or litigation dispute; for the second year and there is no plan for renovation or change thereafter. of the use of the property.

Room302isforselfused Residential land use term commences on 1 by 北京京德順房地產開 April 2004 and expires on 31 March 2074, 發有限公司 (Beijing auxiliary and underground auxiliary land Jingdeshun Real Estate use term commences on 1 April 2004 and Development Co., Ltd.*). expires on 31 March 2044, underground garage use term commences on 1 April 2004 and expires on 31 March 2054.

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Notes:

(1) Pursuant to a Beijing Property Ownership Certificate, 京房權證朝字第670728號 (JingFangQuanZheng Chao Zi No. 670728*) dated 11 December 2008 and a State-owned Land Use Rights Certificate, 京朝國用 （2005出）第0013號 (Jing Chao Guo Yong (2005 Chu) No. 0013*) dated 19 January 2005, the details provided in the aforesaid certificates are summarised as follows:

(i) Owner: 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (a direct 100% owned subsidiary of Hengtian Real Estate as at the Valuation Date)

(ii) Location: 北京市朝陽區水郡長安2號院1號樓 (Building No. 1, Yard No. 2, Shuijun Chang An, Chaoyang District, Beijing*)

(iii) Site Area: 47,407.88 sq.m.

(iv) Use: Residential, auxiliary, underground ancillary, underground garage

(v) Land Use Term: Residential land use term commences on 1 April 2004 and expires on 31 March 2074, auxiliary and underground auxiliary land use term commences on 1 April 2004 and expires on 31 March 2044, underground garage use term commences on 1 April 2004 and expires on 31 March 2054.

(vi) Total gross floor area: 77,430.01 sq.m.

The property was included in the said site area.

(2) Pursuant to a Business Licence, No. 110000001877336 dated 25 October 2013, 北京京德順房地產開發有限 公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) was established as a limited liability company on 20 December 2000 with a registered capital of RMB180,000,000 for a valid operation period from 20 December 2000 to 19 December 2020.

(3) According to the PRC legal opinion:

(i) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures;

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(iv) Pursuant to the Undertaking Letter on 北京京德順房地產開發有限公司 (Jingdeshun Real Estate Development Co., Ltd.*) signed by each of 中國恒天集團有限公司 (China Hi-Tech Group Corporation) and 中國恒天資產管理有限公司 (China Hengtian Asset Management Co., Ltd.*) (hereinafter collectively referred to as the ‘‘Hengtian Group’’), the Hengtian Group undertakes to strip off the equity interests in Jingdeshun and its assets that may be impaired from 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) by 30 April 2016 and make up any resulting losses to 恒天地產有 限公司 (Hengtian Real Estate Co., Ltd.*) ; if the strip-off is not completed within the aforesaid specified period, the Hengtian Group shall make up the shortfall assumed by Hengtian Group in cash. Therefore, the valuation is presented at carrying amount. The assessed value is nil since the carrying amount of the property has been included in valuation certificate of Property No. 1.

(4) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Beijing Property Ownership Certificate: Yes Beijing State-owned Land Use Rights Certificate: Yes Business Licence: Yes

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Group V – Properties held by the Estate Group for sale in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

16 中國河南省鄭州市中原 The property comprises unsold As at the Valuation Date, RMB107,166,934 區天山路東，牛莊路南 commodity houses, commercial houses, the property was vacant. 保利百合花園份未售部 parking spaces, affordable housing and The vacant area was in (6.63% interest 份 (Unsold portion of kindergartens of Poly Baihe Garden. Poly aggregate 29,063.46 sq.m. attributable to Poly Baihe Garden, Baihe Garden project covers a total gross Chanhuade: Niuzhuang Road South floor area of 251,266.27 sq.m., including RMB7,105,168) andTianshanRoad a floor area of 207,821.89 sq.m. above East, Zhongyuan ground and a floor area of 43,528 sq.m. District, Zhengzhou underground. The plot ratio is 3.8 and City, Henan Province, the building density is 23%. It was the PRC*) completed in May 2014.

Poly Baihe Garden project has a floor area of 169,404.68 sq.m. for commodity residential housing, 20,710.4 sq.m. for low-rent housing, 13,172.26 sq.m. for auxiliary commercial facilities, 2,165.88 sq.m. for kindergartens, 2,169.22 sq.m. for property equipment rooms and 43,528 sq.m. for underground garage with 872 car parking spaces. There are 2,213 residential units in total, including 1,337 commodity houses smaller than 90 sq.m. with a total floor area of 114,359.48 sq.m.; 416 low-rent houses with a total floor area of 20,710.4 sq.m. (with a dwelling area of 50 sq.m.); 460 commodity houses larger than 90 sq.m. with a total floor area of 55,045.2 sq.m. As at the benchmark date of valuation, the sold residential area amounted to 169,516.40 sq.m.; the sold commercial area amounted to 2,377.93 sq.m.; 308 parking spaces have been sold; a transfer agreement has been entered into between the kindergarten and the Municipal Government of Zhongyuan District, Zhengzhou City; a repurchase agreement has been entered into with Zhengzhou Affordable Housing Office in respect of the low-rent houses.

The Property is located in Zhongyuan District, Zhengzhou City, Henan Province, the PRC. Developments nearby are mainly residential projects. As advised by the Estate Group, the property is mainly for residential use；there is no environmental issue or litigation dispute; there is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire on 20 July 2081 for residential use.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 鄭國用(2011)第0387號 (Zheng Guo Yong (2011) No. 0387*) dated 31 August 2011, the land use rights of Poly Baihe Garden with a site area of 54,502.69 sq.m. have been granted to 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*) (a joint venture indirectly owned as to 50% by Hengtian Real Estate as at the Valuation Date) for a term due to expire on 20 July 2081 for residential use. Hengtian Real Estate holds 100% of equity interests of 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) and the latter holds 50% of that of 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*)).

(2) Pursuant to the State-owned Land Use Rights Grant Contract, 豫（鄭）出讓(2011年)第0001號 (Yu (Zheng) Chu Rang (2011) No. 0001*) dated 22 April 2011:

(i) Grantee: 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*)

(ii) Site Area: 54,502.69 sq.m.

(iii) Land: Niuzhuang Road South and Tianshan Road East, Zhengzhou

(iv) Land Use: Urban residential property

(v) Land Use Term: 70 Years

(vi) Land Premium: RMB263,230,000

(3) Pursuant to a Construction Land Planning Permit, 鄭規地字第410100201119105號 (ZhengGuiDiZiNo. 410100201119105*) dated 25 July 2011, the construction site of the land parcel with the total gross floor area of 54,502.497 sq.m. was in compliance with urban planning requirements.

(4) According to Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

鄭規建字 31 December 2011 Poly Baihe Residential 251,525.49 第410100201129241號 (Zheng Gui Jian Zi Di No. 410100201129241*)

The property was included in the said site area.

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(5) According to Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

410102201203120101 12 March 2012 Poly Baihe Residential 125,263.25

410102201202230101 23 February 2012 Poly Baihe Residential 126,262.24

The property was included in the said site area.

(6) According to Commodity House Pre-sale Permits, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

2012鄭房管預字第2982號 24 August 2012 Poly Baihe Residential Residential (2012 Zheng Fang Guan Yu 65,722.35 Zi No. 2982*) Non-residential 3,523.07

2012鄭房管預字第3058號 12 December 2012 Poly Baihe Residential Residential (2012 Zheng Fang Guan Yu 67,540.73 Zi No. 3058*) Non-residential 2,385.21

2013鄭房管預字第3008號 15 July 2013 Poly Baihe Residential Residential (2013 Zheng Fang Guan Yu 36,141.60 Zi No. 3008*) Non-residential 7,463.43

(7) As advised by the Estate Group, the total construction cost of the project is RMB1,047,247,227.06. As at the Valuation Date, all construction cost has been paid. The property is part of the project.

(8) Pursuant to a Business Licence, No. 410100000039380 (1-1) dated 26 March 2012, 鄭州恒天興華房地產有 限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*) was established as a limited liability company on 25 February 2010 with a registered capital of RMB100,000,000 for a valid operation period from 25 February 2010 to 8 February 2020.

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(9) According to the PRC legal opinion:

(i) 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*) is the legal owner of the property;

(iii) 鄭州恒天興華房地產有限公司 (Zhengzhou Hengtian Xinghua Real Estate Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures;

(v) Further to the verification, the shareholding proportion of Hengtian Real Estate is 50%. Save and except entitling to the equity rights and interests in proportion to the statutory shareholding and as stipulated in the Company Law, there is no special agreement on other arrangement that Hengtian Real Estate is entitled to the company’s equity interests/profits/property.

(10) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

17 中國陝西省咸陽市渭城 Nos. T7, T10, and T11 of Zhong Hong The property was vacant RMB102,994,468 區人民中路16號中宏麗 Li She and No. U2 underground garage as at the Valuation Date. 舍T7、T10、T11號樓及 project include residential houses and The vacant area was in (13.26% interest U2地下車庫未售部份 underground garage, etc. The planned aggregate 23,308.66 sq.m. attributable to (Unsold portion of gross floor area of the project is 72,945 Chanhuade: Building Nos. T7, T10, sq.m. Nos. T7, T10, and T11 of Zhong RMB13,657,066) T11, and No. U2 Hong Li She and No. U2 underground underground garage of garage project include high-rise Zhong Hong Li She, 16 residential houses of T7, T10 and T11 Renmin Zhong Road, and underground garage. The project Weicheng District, commenced on October 2012 and was Xianyang City, Shaanxi completed and delivered on October Province, the PRC*) 2014.

According to the information provided, the unsold residential properties of Nos. T7, T10 and T11 of Zhong Hong Li She and No. U2 underground garage project cover a total gross floor area of 23,308.66 sq.m.

The property is located in 中國陝西省咸 陽市渭城區 (Weicheng District, Xianyang City, Shaanxi Province, the PRC*), which is the main urban district of Xianyang City. The adjacent development projects are mainly residential projects and estate for commercial use. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in March 2071 for residential use.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2006)第082號 (Xian Guo Yong (2006) No. 082*) dated 8 June 2006, the land use rights of Nos. T7, T10, and T11 of Zhong Hong Li She and No. U2 underground garage project with a site area of 44,973 sq.m. have been granted to 咸陽宏大房地產開發有限 公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a company directly owned as to 70% by Hengtian Real Estate as at the Valuation Date, see Note 8) for a term due to expire in March 2071 for residential use.

(2) Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 71,950 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB4,662,360

Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 51,702 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB3,350,289.60

According to the Land Development Agreement entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) (as Party A), 宏大投資有限公司 (Hongda Investment Co., Ltd.*) (as Party B) and 中國 紡織機械（集團）有限公司 (China Textile Machinery (Group) Co., Ltd.*) (as Party C) dated 18 August 2005, Party A agreed to transfer, the land of its original production plant (which is the land portion of the production plant), to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), the subsidiary of Party B for the overall joint development. The aggregate amount of the land compensation plus the entitlement to dividend of 40% shall be determined at RMB130,000,000. According to the PRC legal opinion, 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) shall accordingly obtain the legal land use rights of the property.

The property was included in the said site area.

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(3) Pursuant to a Construction Land Planning Permit, 地字第610400200900018號 (Di Zi No. 610400200900018*) dated 28 July 2005, the construction site of the land parcel with a total site area of approximately 67.45 mu was in compliance with urban planning requirements.

(4) According to Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第610400200800032號 21 February 2013 High-rise residential houses and 170,480.97 (Jian Zi No. underground garage in Nos. T5 610400200800032*) to T11 of Zhong Hong Li She

The property was included in the said site area.

(5) According to Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

編號咸建施2013-08號 21 March 2013 Buildings Nos. T7, T10, and T11 72,945 (Bian Hao Xian Jian Shi No. and No. U2 underground 2013-08*) garage of Zhong Hong Li She

The property was included in the said site area.

(6) According to Commodity House Pre-sale Permits, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

咸房預售第2013023號 10 June 2013 Nos. T7, T10, and T11 of Zhong 63,654.98 (XianFangYuShouNo. Hong Li She 2013023*)

(7) In accordance with the information provided by the Estate Group, the total construction cost of the project was approximately RMB243,604,796.17. As at the Valuation Date, the total amount of construction cost paid was approximately RMB243,604,796.17 and the property is part of the project.

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(8) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有 限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織 機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(9) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(10) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business license and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(11) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 76 APPENDIX I PROPERTY VALUATION REPORT

Market Value in Particulars of existing state as at No. Property Description and tenure occupancy 30 April 2015

18 中國陝西省咸陽市秦 Phase II project of Zhong Hong Xing Yuan The property was vacant RMB2,023,558 都區寶泉路中宏星苑 includes residential houses and facilities area, etc. as at the Valuation 二期3棟1601號房 The gross planned floor area of the project is Date. The vacant area (13.26% interest (Unit 1601, Building 48,096.38 sq.m. Phase II project of Zhong Hong was in aggregate 78.53 attributable to 3, Phase II, Zhong Xing Yuan includes No. 3 and No. 4 Residential sq.m. Chanhuade: Hong Xing Yuan, Buildings. The project commenced on June 2010 RMB268,324) Baoquan Road, Qindu and was completed and delivered in September District, Xianyang 2012. City, Shaanxi Province, the PRC*) According to the information provided, the total gross floor area of the unsold properties of Phase II project of Zhong Hong Xing Yuan is 78.53 sq.m. Details are shown as follows:

No. Bldg No. Rm No. Area (sq.m.)

1 3 3-1601 78.53

Total 78.53

The property is located in Qindu District, Xianyang City, Shaanxi Province, the PRC, which is the western urban district of Xianyang City. Developments nearby are developed mainly for residential use. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in November 2077 for residential use.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2008)第004號 (Xian Guo Yong (2008) No. 004*) dated 9 January 2008, the land use right of Phase II of Zhong Hong Xing Yuan with a site area of 7,025 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) for a term due to expire in November 2077 for residential use.

(2) Pursuant to State-owned Land Use Rights Grant Contract, No. 2007-42 dated 2007:

(i) Grantee: 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a subsidiary directly owned as to 70% by Hengtian Real Estate as at the Valuation Date. Please refer to Note 8)

(ii) Site Area: 7,025 sq.m.

(iii) Land: Western side of family member area for 咸陽紡機電子多臂廠 (Xianyang Textile Machinery Electronic Dobby Factory*), southern side of Longhai Railway, and eastern side of New Caihong Residential Area of Baoquan Road

(iv) Land Use: Residential

(v) Land Use Term: 70 years

(vi) Land Premium: RMB1,325,000

(3) Pursuant to a Construction Land Planning Permit, 地字第610400200900018號 (Di Zi No.610400200900018*) dated 4 May 2009, the construction site of the land parcel with the total gross floor area of 48,096.38 sq.m. was in compliance with urban planning requirements.

(4) According to Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Approved Construction Certificate No. Issue Date Works Total GFA (sq.m.)

建字第610400201000010-1號 18 November 2010 No.3 Residential Building of 43,400 (Jian Zi No. Zhong Hong Xing Yuan 610400201000010-1*)

建字第610400201000010-2號 8 July 2010 No.4 Residential Building of 4,696.38 (Jian Zi No. Zhong Hong Xing Yuan 610400201000010-2*)

The property was included in the said site area.

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(5) According to Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

咸建施2010-094號 (Xian Jian 9 November 2010 No.3 and No.4 Residential 49,696 Shi No. 2010-094*) Buildings of Zhong Hong Xing Yuan Phase II

The property was included in the said site area.

(6) According to Commodity House Pre-sale Permits, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

（咸）房預售證第2010076號 17 December 2010 No.3 Residential Building of 43,374.98 ((Xian) Fang Yu Shou Zheng Zhong Hong Xing Yuan No. 2010076*) 咸房預售第2011049號 2 September 2011 No.4 Residential Building of 4,661.25 (XianFangYuShouNo. Zhong Hong Xing Yuan 2011049*)

(7) As advised by the Estate Group, the total construction cost of the project amounting to approximately RMB127,746,222.48 and the property is part of the project.

(8) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有 限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織 機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets.

I – 79 APPENDIX I PROPERTY VALUATION REPORT

Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(9) Pursuant to a Business licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(10) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business license and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(11) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 80 APPENDIX I PROPERTY VALUATION REPORT

Market Value in Particulars of existing state as at No. Property Description and tenure occupancy 30 April 2015

19 中國陝西省咸陽市渭 Nos. T5, T6 of Zhong Hong Li She project The property was vacant RMB6,463,444 城區人民中路16號中 includes residential houses and auxiliary houses, as at the Valuation 宏麗舍T5、T6號樓未 etc. The planned gross floor area of the project is Date. The vacant area (13.26% interests 售部份 (Unsold 63,380.42 sq.m. Nos. T5, T6 of Zhong Hong Li was 2,200.71 sq.m. attributable to portion of Building She project includes high-rise residential houses of Chanhuade: Nos. T5, T6 of Zhong T5 and T6. The project commenced on October RMB857,053) Hong Li She, 16 2010 and was completed and delivered on October Renmin Zhong Road, 2012. Weicheng District, Xianyang City, According to the information provided, the total Shaanxi Province, gross floor area of the unsold properties of Nos. PRC*) T5, T6 project of Zhong Hong Xing Yuan is 2,200.71 sq.m. Details are shown as follows: Actual No. Bldg No. Rm No. Area (sq.m.)

1 T5 1-601 128.05 2 T5 3-102 128.35 3 T5 2-201 128.66 4 T6 6-1-201 122.07 5 T6 6-3-102 70.29 6 T6 6-4-1801 126.75 7 T6 6-4-2002 140.47 8 Basement 6-4-2801 1,356.07

Total 2,200.71

The property is located in 中國陝西省咸陽市渭城 區 (Weicheng District, Xianyang City, Shaanxi Province, PRC*), which is the main urban district of Xianyang City. The adjacent development projects are mainly residential projects and commercial use estate. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue or litigation dispute. There is no plan for renovation or change of the use of the property.

The land use rights of the property have been granted for a term due to expire in March 2071 for residential use.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2006)第082號 (Xian Guo Yong (2006) No. 082*) dated 8 June 2006, the land use rights of Nos. T5, T6 of Zhong Hong Li She and underground garage with a site area of 44,973 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a company directly owned as to 70% by 恒天地產 (Hengtian Real Estate*) as at the Valuation Date, see Note 8) for a term due to expire in March 2071 for residential use.

(2) Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 71,950 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB4,662,360

Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 51,702 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB3,350,289.60

According to the Land Development Agreement entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) (as Party A), 宏大投資有限公司 (Hongda Investment Co., Ltd.*) (as Party B) and 中國 紡織機械（集團）有限公司 (China Textile Machinery (Group) Co., Ltd.*) (as Party C) dated 18 August 2005, Party A agreed to transfer, the land of its original production plant (which is the land portion of the production plant), to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), the subsidiary of Party B for the overall joint development. The aggregate amount of the land compensation plus the entitlement to dividend of 40% shall be determined at RMB130,000,000. According to the PRC legal opinion, 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) shall accordingly obtain the legal land use rights of the property.

The property was included in the said site area.

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(3) Pursuant to a Construction Land Planning Permit, 地字第610400200900018號 (Di Zi No. 610400200900018*) dated 28 July 2005, the construction site of the land parcel with a total site area of approximately 67.45 mu was in compliance with the urban planning requirements.

(4) According to Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第610400200800032號 21 February 2013 High-rise residential buildings in 170,480.97 (Jian Zi No. Nos. T5-T11 and underground 610400200800032*) garage of Zhong Hong Li She

The property was included in the said site area.

(5) According to Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

編號咸建施2011-001號 (Bian 5 January 2011 Nos. T5, T6, and underground 63,380.42 Hao Xian Jian Shi No. 2011- garage of Zhong Hong Li She 001*)

The property was included in the said site area.

(6) According to Commodity House Pre-sale Permits, the following commodity houses were approved for pre- sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

咸房預售證第2011029號 27 May 2011 Nos. T5, T6 of Zhong Hong Li 56,919.15 (XianFangYuShouZheng She No. 2011029*)

(7) As advised by the Estate Group, the total construction cost of the project amounting to approximately RMB200,458,893.02. As at the Valuation Date, the total amount of construction cost paid was approximately RMB200,458,893.02 and the property is part of the project.

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(8) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽宏大房地產 開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to relevant laws, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(9) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established as a limited liability company on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(10) According to the PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has obtained a valid business license and is legally established;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant the PRC laws within the remaining land use term;

(iv) The property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

I – 84 APPENDIX I PROPERTY VALUATION REPORT

(11) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 85 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

20 中國陝西省咸陽市渭城 No. T9 of Zhong Hong Li She and The property was vacant RMB13,796,023 區人民中路16號中宏麗 underground garage projects include as at the Valuation Date. 舍T9號樓地下車庫未售 residential building and underground Therewere132parking (13.26% interests 部份 (Unsold portion of garage, etc. The planned total gross floor spaces and basement with attributable to the underground garage area of the project is 28,345 sq.m. No. area of 660.87 sq.m. Chanhuade: of Building No. T9, T9 of Zhong Hong Li She and vacant. RMB1,829,353) Zhong Hong Li She, 16 underground garage projects include T9 Renmin Zhong Road, high-rise residential building and Weicheng District, underground garage. The projects Xianyang City, Shaanxi commenced in September 2008 and were Province, the PRC*) completed and delivered in September 2011.

In accordance with the information provided, the unsold properties of No. T9 of Zhong Hong Li She and underground garage project are 132 underground parking spaces and basement with an area of 660.87 sq.m.

The property is located in Weicheng District, Xianyang City, Shaanxi Province, the PRC, which is the main urban district of Xianyang. The adjacent development projects are mainly residential projects and commercial use estate. As advised by the Estate Group, the property is mainly for residential use. There is no environmental issue nor litigation dispute. There is no plan for renovation of the building nor change to the use of the property.

The land use rights of the property has been granted for a term due to expire in March 2071 for residential use.

Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 咸國用(2006)第082號 (Xian Guo Yong (2006) No. 082*) dated 8 June 2006, the land use rights of No. T9 of Zhong Hong Li She and underground garage with a site area of 44,973 sq.m. have been granted to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) (a subsidiary directly owned as to 70% by 恒天地產 (Hengtian Real Estate*) as at the Valuation Date, see Note 8) for a term due to expire in March 2071 for residential use.

I – 86 APPENDIX I PROPERTY VALUATION REPORT

(2) Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 71,950 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB4,662,360

Pursuant to a State-owned Land Use Rights Grant Contract, No. GF-94-1003 dated 29 March 2001:

(i) Grantee: 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*)

(ii) Site Area: 51,702 sq.m.

(iii) Land: 16 Renmin Zhong Road

(iv) Land Use: Residential use

(v) LandUseTerm:70yearsuntilMarch2071

(vi) Land Premium: RMB3,350,289.60

According to the Land Development Agreement entered into between 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) (as Party A), 宏大投資有限公司 (Hongda Investment Co., Ltd.*) (as Party B) and 中國 紡織機械（集團）有限公司 (China Textile Machinery (Group) Co., Ltd.*) (as Party C) dated 18 August 2005, Party A agreed to transfer, the land of its original production plant (which is the land portion of the production plant), to 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), the subsidiary of Party B for the overall joint development. The aggregate amount of the land compensation plus the entitlement to dividend of 40% shall be determined at RMB130,000,000. According to the PRC legal opinion, 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) shall accordingly obtain the legal land use rights of the property.

The property was included in the said site area.

(3) Pursuant to a Construction Land Use Planning Permit, 地字第610400200900018號 (DiZiNo. 610400200900018*) dated 28 July 2005, the construction site of a plot with a site area of approximately 67.45 mu has been complied with urban planning requirements.

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(4) In accordance with Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

建字第610400200800032號 21 February 2013 High-rise residential buildings of 170,480.97 (Jian Zi No. Nos. T5-T11 of and 610400200800032*) underground garage in Zhong Hong Li She

The property was included in the said site area.

(5) In accordance with Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

編號咸建施(2008)49號 25 September 2008 Underground garage project in 88,947 (Bian Hao Xian Jian Shi Nos. T8, T9, and T11 of Zhong (2008) No. 49*) Hong Li She

The property was included in the said site area.

(6) In accordance with Commodity House Pre-sale Permits, the following commodity houses were approved for pre-sale:

Total GFA Certificate No. Issue Date Project Name for Pre-sale (sq.m.)

咸房預售第2010027號 23 April 2010 No. T9 of Zhong Hong Li She 26,070.70 (XianFangYuShouNo. 2010027*)

(7) As advised by the Estate Group, the total construction cost of the project amounting to approximately RMB109,970,245.92. As at the Valuation Date, the total amount of construction cost paid was approximately RMB109,970,245.92 and the property is part of the project.

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(8) 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) owns 70% of the equity interests of 咸陽宏大房地產開 發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). According to the legal opinion regarding the Land Development Supplemental Agreement (‘‘Agreement’’) entered into between 咸陽紡織機 械廠 (Xianyang Textile Machinery Factory*) and 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) dated 8 October 2014, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) has unconditionally given up its rights (including but not limited to voting right), interests, profit and dividend, etc. (excluding investment cost) incidental to its 30% Shareholding in 咸陽宏大房地產開發有 限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) with effect from 1 January 2012. 咸陽紡織 機械廠 (Xianyang Textile Machinery Factory*) agreed that 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) shall be entitled to such rights (including but not limited to voting right), interests, profit and dividend, etc. In addition, 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) shall, therefore, not assume any responsibilities and liabilities of 恒天地產有限公司 (Hengtian Real Estate Co., Ltd.*) and 咸陽 宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*). This Agreement is in compliance with the PRC laws and is currently in force and accordingly Hengtian Real Estate is entitled to the entire equity interests of 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) save that in the event of liquidation of 咸陽宏大地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*), 咸陽紡織機械廠 (Xianyang Textile Machinery Factory*) is entitled, subject to applicable laws and regulations, to a return of all or part of its initial investment cost or 30% of the realised net assets. Therefore, this valuation was assessed based on the legal opinion adopting the same principle, i.e. that Hengtian Real Estate owns 100% of the equity interests in 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*).

(9) Pursuant to a Business Licence, No. 610400100003319 dated 17 October 2014, 咸陽宏大房地產開發有限公 司 (Xianyang Hongda Real Estate Development Co., Ltd.*) was established with limited liability on 27 January 2000 with a registered capital of RMB60,000,000 and the operation period is effective for a long term.

(10) According to PRC legal opinion:

(i) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) has duly obtained a valid business licence and lawfully incorporated;

(ii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 咸陽宏大房地產開發有限公司 (Xianyang Hongda Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The Property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(11) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Use Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

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Market Value in existing state as at 30 No. Property Description and tenure Particulars of occupancy April 2015

21 中國北京市朝陽區雙橋 The property was completed in 2008, a The Property was vacant RMB4,018,200 路水郡長安2號院5號樓 left property of 水郡長安 (Shuijun Chang as at the Valuation Date. 2單元302室 (Room 302, An Project*) developed by 北京京德順房 The vacant area was in (13.26% interests Unit 2, Building No. 5, 地產開發有限公司 (Beijing Jingdeshun aggregate 152.02 sq.m. attributable to YardNo.2,Shuijun Real Estate Development Co., Ltd.*). Chanhuade: Chang An, Shuangqiao Pursuant to 京房權證朝字第547193號 RMB532,813) Road, Chaoyang (JingFangQuanZhengChaoZiNo. District, Beijing, the 547193*) dated 29 February 2008, the PRC*) property covers an area of 152.02 sq.m. and was planned for residential use.

The property is located in Chaoyang District, Beijing. The adjacent projects are developed mainly for commercial and residential use. There is no environmental issue nor litigation dispute. There is no plan for renovation of the building nor change to the use of the property.

The property has been granted with land use rights and the residential use land term commences on 1 April 2004 and expires on 31 March 2074.

Notes:

(1) Pursuant to a Beijing Property Ownership Certificate, 京房權證朝字第547193號 (JingFangQuanZheng Chao Zi No. 547193*) dated 29 February 2008 and a State-owned Land Use Rights Certificate, 京朝國 用(2005出)第0013號 (Jing Chao Guo Yong (2005 Chu) No. 0013*) dated 19 January 2005, the details provided by the aforesaid certificates are summarised as follows:

(i) Owner: 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) (a subsidiary directly owned as to 100% by Hengtian Real Estate as at the Valuation date).

(ii) Location: Building No. 5, Yard No. 2, Shuijun Chang An, Chaoyang District, Beijing

(iii) Located at 朝陽區茶家東路東側京德順生態家園一期（西區）西一區1-16號、西二區1號-8號樓 (Nos. 1-16, West 1 Zone and Buildings Nos. 1-8, West 2 Zone, Jingdeshun Eco Home Phase I (West Zone), Eastern Side of East Chajia Road, Chaoyang District*)

(iv) Site Area: 47,407.88 sq.m.

(v) Use: Residential, auxiliary, underground auxiliary, underground garage

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(vi) Land Use Term: Residential land use term commences on 1 April 2004 and expires on 31 March 2074, auxiliary and underground auxiliary land use term commences on 1 April 2004 and expires on 31 March 2044, underground garage use term commences on 1 April 2004 and expires on 31 March 2054.

(vii) Total gross floor area: 20,547.02 sq.m.

The property was included in the said site area.

(2) Pursuant to a Business Licence, No. 110000001877336 dated 25 October 2013, 北京京德順房地產開發有限 公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) was established with limited liability on 20 December 2000 with a registered capital of RMB180,000,000 and the operation period is effective from 20 December 2000 to 19 December 2020.

(3) According to PRC legal opinion:

(i) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) has duly obtained a valid business licence and lawfully incorporated;

(ii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 北京京德順房地產開發有限公司 (Beijing Jingdeshun Real Estate Development Co., Ltd.*) is entitled to assign, use, grant, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The Property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(4) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Beijing Property Ownership Certificate: Yes Beijing State-owned Land Use Rights Certificate: Yes Business Licence: Yes

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Market Value in existing state as at 30 No. Property Description and tenure Particulars of occupancy April 2015

22 中國北京市朝陽區北沙 The property was completed in 2008, a On the Valuation Date, RMB501,319 灘大屯路36號華源凱旋 left property of 華源凱旋園 (Hua Yuan the property was vacant. 園1號樓儲蓄所用房 Kai Xuan Garden*) project developed by The vacant area was in (13.26% interests (A savings office in 北京博宏房地產開發有限公司 (Beijing aggregate 55.62 sq.m. attributable to Building No. 1, Hua Bohong Real Estate Development Co., Chanhuade: Yuan Kai Xuan Garden, Ltd.*) was at 36 Datun Road, on Floor 1 RMB66,475) 36 Datun Road, of Building No. 1. Pursuant to a Beijing Beishatan, Chaoyang Property Ownership Certificate, 京房權證 District, Beijing, the 朝字第709138號 (JingFangQuanZheng PRC*) Chao Zi No. 709138*) dated 7 August 2009, the property covers an area of 55.62 sq.m. and was planned for savings office use.

The property is located in Chaoyang District, Beijing. The adjacent projects are developed mainly for commercial and residential use. There is no environmental issue nor litigation dispute. There is no plan for renovation of the building nor change to the use of the property.

The property has been granted with land use rights. The auxiliary use land term commences on 27 January 2003 and expires on 26 January 2043 and the non- auxiliary and underground garage use term commences on 27 January 2003 and expires on 26 January 2053.

Notes:

(1) Pursuant to a Beijing Property Ownership Certificate, 京房權證朝字第709138號 (JingFangQuanZheng Chao Zi No. 709138*) dated 7 August 2009 and a State-owned Land Use Rights Certificate, 京朝國用(2005 出)第0045號 (Jing Chao Guo Yong (2005 Chu) No. 0045*) dated 6 February 2005, the details provided by the aforesaid certificates are summarised as follows:

(i) Owner: 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) (a subsidiary directly owned as to 100% by Hengtian Real Estate as at the Valuation Date)

(ii) Location: Building No. 1, 36 Datun Road, Chaoyang District

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(iii) Site Area: 29,441.22 sq.m.

(iv) Use: Residential, auxiliary, non-auxiliary, underground non-auxiliary, underground garage

(v) Land Use Term: Residential land use term commences on 27 January 2003 and expires on 26 January 2073, auxiliary land use term commences from 27 January 2003 and expires on 26 January 2043, non- auxiliary and underground garage use term commences on 27 January 2003 and expires on 26 January 2053.

(vi) Total gross floor area: 53,279.56 sq.m.

The property was included in the said site area.

(2) Pursuant to a Business Licence, No. 110000002716356 dated 6 December 2010, 北京博宏房地產開發有限公 司 (Beijing Bohong Real Estate Development Co., Ltd.*) was established with limited liability on 25 May 2001 with a registered capital of RMB100,000,000 and the operation period is effective from 25 May 2001 to 24 May 2021.

(3) According to PRC legal opinion:

(i) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) has duly obtained a valid business licence and lawfully incorporated;

(ii) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the remaining land use term;

(iv) The Property is free from any mortgage, ownership dispute, seizure or other judicial compulsory measures.

(4) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

Beijing Property Ownership Certificate: Yes Beijing State-owned Land Use Rights Certificate Yes Business Licence Yes

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Market Value in existing state as at 30 No. Property Description and tenure Particulars of occupancy April 2015

23 中國北京市朝陽區北沙 The property was completed in 2009, a The storeroom on RMB31,625,811 灘大屯路36號華源凱旋 left property of 華源凱旋園 (Hua Yuan Basement 2 of the 園2號樓未售部份 Kai Xuan Garden*) project developed by property with an total area (13.26% interest (Unsold portion of 北京博宏房地產開發有限公司 (Beijing of 3,508.8 sq.m. was attributable Building No. 2, Hua Bohong Real Estate Development Co., vacant and for sale as at to Chanhuade: Yuan Kai Xuan Garden Ltd.*) was at 36 Datun Road, Chaoyang the Valuation Date. RMB4,193,583) 36 Datun Road, District, a storeroom on Basement 2 of Beishatan, Chaoyang Building No. 2, and auxiliary commercial 北京市商品房認購書 (a District, Beijing, the houses on Basement 1, Floor 1, and Beijing commercial PRC*) Floor 2. According to the Technical property offers*) Report on the Land Survey of Buildings concerning the properties issued by 北京中鼎衡測繪事務所 on Basement 1, Floor 1 (Beijing Zhongdingheng Surveying firm*) and Floor 2 has been on 10 June 2011, the property comprises entered into between 北京 an area of 325.47 sq.m. on Basement 2, 博宏房地產開發有限公司 an area of 798.21 sq.m. on Basement 1, (Beijing Bohong Real an area of 1,060.87 sq.m. on Floor 1, an Estate Development Co., area of 1,324.25 sq.m. on Floor 2, which Ltd.*) and 羅柱流 (Luo total 3,508.8 sq.m. Zhuliu*) on 30 December 2010, providing that the The property is located in Chaoyang unit price for the District, Beijing. The adjacent projects properties was are developed mainly for commercial and RMB17,287.88/sq.m. and residential use. There is no environmental thetotalpricewas issue nor litigation dispute. There is no RMB54,426,922. A plan for renovation of the building nor supplemental agreement change to the use of the property. was entered into on 30 December 2010, providing The property has been granted with land that 北京博宏房地產開發 use rights. The auxiliary land use term 有限公司 (Beijing commences on 27 January 2003 and Bohong Real Estate expires on 26 January 2043. The non- Development Co., Ltd.*) auxiliary and underground garage use shall pay the buyer a term commences on 27 January 2003 to penalty, accrued on a 26 January 2053. daily basis of 0.03% of the actual amounts paid (which is RMB7.1309 million) from 1 January 2013, if 北京博宏房地產 開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) fails to meet the conditions for formally signing the online filing contract prior to 1 January 2013. After 30 days past due, the buyer is entitled to a refund.

As at the Valuation Date, no online filing contract has been entered into concerning the Property. The buyer has not requested a refund and the property is still vacant.

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Notes:

(1) Pursuant to a State-owned Land Use Rights Certificate, 京朝國用(2005出)第0045號 (JingChaoGuoYong (2005 Chu) No. 0045*) dated 6 February 2005, the details provided are summarised as follows:

(i) Owner: 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) (a subsidiary directly owned as to 100% by Hengtian Real Estate as at the Valuation Date).

(ii) Location: 36 Datun Road, Chaoyang District

(iii) Site Area: 29,441.22 sq.m.

(iv) Use: Residential, auxiliary, non-auxiliary, underground non-auxiliary, underground garage

(v) Land Use Term: Residential land use term commences on 27 January 2003 and expires on 26 January 2073, auxiliary land use term commences on 27 January 2003 and expires on 26 January 2043, non- auxiliary and underground garage use term commences on 27 January 2003 and expires on 26 January 2053.

The property was included in the said site area.

(2) Pursuant to a Construction Land Use Planning Permit, 2004規地字0129號 (2004 Gui Di Zi No. 0129*) dated 5 July 2007, the construction site of a plot with a total gross floor area of 29,836.804 sq.m. has been complied with urban planning requirements.

(3) In accordance with Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

2007規（朝）建字0034號 7 February 2007 1# Residential Building 24,260.94 (2007 Gui (Chao) Jian Zi No. 0034*)

The property was included in the said site area.

(4) In accordance with Construction Works Commencement Permits, the following construction works were approved for construction:

Certificate No. Issue Date Approved Construction Works Total GFA (sq.m.)

[2008]施建字0708號 29 April 2008 1# Residential Building 24,636.78 ([2008] Shi Jian Zi No. 0708*)

The property was included in the said site area.

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(5) Pursuant to a business licence, No. 110000002716356 dated 6 December 2010, 北京博宏房地產開發有限公 司 (Beijing Bohong Real Estate Development Co., Ltd.*) was established on 25 May 2001 with limited liability with a registered capital of RMB100,000,000 and the operation period is effective from 25 May 2001 to 24 May 2021.

(6) According to the PRC legal opinion:

(i) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 北京博宏房地產開發有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the Property pursuant to the PRC laws within the remaining land use term;

(iv) The Property is free from any mortgages, ownership disputes, seizures or other judicial compulsory measures.

(7) As at the Valuation Date, as the educational auxiliary facilities of project developed by 北京博宏房地產開發 有限公司 (Beijing Bohong Real Estate Development Co., Ltd.*) have not been completed, the sale of the property was not completed and was not able to deliver the property to the buyer. Having considered the time for the completion of the educational auxiliary facilities cannot be ascertained, although the company has made estimation on the future construction cost of the educational auxiliary facilities, given the existing of uncertainty, the property was recognised at audited carrying amount.

(8) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Business Licence Yes

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Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

24 中國吉林省延吉市長白 The property comprises 2 units of Phase The property with a total RMB2,901,300 路2號恒天•玫瑰園二期 II 「恒天•玫瑰園」(‘‘Hengtian Rose area of 2,588.58 sq.m. 未售部份 (Unsold Garden’’*) for sale, with a total area of was vacant as at the (4.641% interest portion of Phase II of 104.93 sq.m.; 9 garages of Building No. Valuation Date. attributable to ‘‘Hengtian Rose 11 for sale, with a total area of 201.20 Chanhuade: Garden’’, 2 Changbai sq.m.; 9 garages of Building No. 14 for RMB134,649) Road, Yanji City, Jilin sale, with a total area of 195.61 sq.m.; 3 Province, the PRC*) garages of Building No. 17 for sale, with a total area of 63.88 sq.m.; 3 garages of Building No. 19 for sale, with a total area of 68.94 sq.m.; 43 underground parking spaces of Building No. 1 for sale, with a total area of 2,588.58 sq.m.

The property is located in the southern side of Yanji City, on the southeastern section at the cross of Changbai Road and Xinfeng Street, 40 metres to the south of Xiantong Hospital, and to the north of Tiebei Road. Its eastern side is adjacent to 渤海小區 (Bohai Residential Community*), and its western side is next to Xinfeng Road and across from a tobacco warehouse. The plot is 180 metres from east to west and 430 metres from north to south, with a site area of 65,300 sq.m. and total gross floor area of 109,091 sq.m. It is developed by two phases, Phase I of which covers a site area of approximately 36,700 sq.m. and a gross floor area of approximately 61,000 sq.m. The plot ratio is 1.66. Phase I is designed for low residential density and a high-quality project. Phase II of which covers a site area of approximately 28,600 sq.m. and a gross floor area of approximately 48,500 sq.m. So far, Phase I properties have been sold out.

The construction of Phase II project commenced in October 2012 and was completed and opened for sale in June 2013. There are only a few units left currently.

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Notes:

(1) The State-owned Land Use Rights Certificates obtained for the property are as follows:

Owner of Type of Land Category Issue Date Certificate No. Land Use Rights Location Use Rights (Use) Site Area Expiration Date (s.q.)

27 August 2012 延州國用(2012)第 延邊宏大興邊置業發 Southern side of Grant Commercial 87.61 13 December 2046 240100186號 展有限公司 Changbaishan Road Service Use (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2012) No. Xingbian Real Xinfeng Street, 240100186*) Estate Development Yanji City Co., Ltd.*)

27 August 2012 延州國用(2012)第 延邊宏大興邊置業發 Southern side of Grant Commercial 8,116.01 13 December 2046 240100187號 展有限公司 Changbaishan Road Service Use (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2012) No. Xingbian Real Xinfeng Street, 240100187*) Estate Development Yanji City Co., Ltd.*)

27 August 2012 延州國用(2012)第 延邊宏大興邊置業發 Southern side of Grant Urban 19,886.71 13 December 2076 240100185號 展有限公司 Changbaishan Road Residential (Yan Zhou Guo (Yanbian Hongda and eastern side of Use Yong (2012) No. Xingbian Real Xinfeng Street, 240100185*) Estate Development Yanji City Co., Ltd.*)

2 August 2010 延州國用(2010)第 延邊宏大興邊置業發 Southern side of Grant Residential Use 32,107.96 13 December 2076 240100160號 展有限公司 Changbaishan Road (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2010) No. Xingbian Real Xinfeng Street, 240100160*) Estate Development Yanji City Co., Ltd.*)

2 August 2010 延州國用(2010)第 延邊宏大興邊置業發 Southern side of Grant Commercial 2,716.29 13 December 2046 240100161號 展有限公司 Changbaishan Road Service Use (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2010) No. Xingbian Real Xinfeng Street, 240100161*) Estate Development Yanji City Co., Ltd.*)

2 August 2010 延州國用(2010)第 延邊宏大興邊置業發 Southern side of Grant Commercial 28,090.30 13 December 2046 240100158號 展有限公司 Changbaishan Road Service Use (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2010) Di Xingbian Real Xinfeng Street, No. 240100158*) Estate Development Yanji City Co., Ltd.*)

2 August 2010 延州國用(2010)第 延邊宏大興邊置業發 Southern side of Grant Commercial 762.03 13 December 2046 240100159號 展有限公司 Changbaishan Road Service Use (Yan Zhou Guo (Yanbian Hongda and eastern side of Yong (2010) No. Xingbian Real Xinfeng Street, 240100159*) Estate Development Yanji City Co., Ltd.*)

10 July 2007 延州國用(2007)第 延邊宏大興邊置業發 No. 2 Changbaishan Grant Commercial 65,411.37 13 December 2046 240100115號 展有限公司 Road, Yanji City Service Use (Yan Zhou Guo (Yanbian Hongda Yong (2007) No. Xingbian Real 240100115*) Estate Development Co., Ltd.*)

The above-mentioned lands are the entire property site of the project. The property was included in the said site area.

延邊宏大興邊置業發展有限公司 (Yanbian Hongda Xingbian Real Estate Development Co., Ltd.*) who is the owner of the land is a direct 35%-owned subsidiary of Hengtian Real Estate as at the Valuation Date.

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(2) Pursuant to Reserved Land Contract, No. 延市收儲處合字[2005] (012)號 (Yan Shi Shou Chu Chu He Zi [2005] No.(012)*) dated 18 October 2005:

(i) Grantee: 吉林興邊實業集團有限公司 (Jilin Xingbian Industrial Estate Group Co., Ltd.*)

(ii) Site Area: 65,411.37 sq.m.

(iii) Land: Southern side of Changbaishan Road of Henan Street and eastern side of Xinfeng Street, Yanji City

(iv) Land Use: Commercial service use

(v) Land Use Term: 40 years for commercial use and 70 years for residential use

(vi) Land Premium: RMB32,705,685

(vii) Total gross floor area: Up to 157,178.28 sq. m in total.

The property was included in the said site area.

(3) Pursuant to Construction Land Planning Permits, the construction site of the land parcel with a total site area of 61,826 sq.m. was in compliance with urban planning requirements.

Name of Land Nature of the Approved Scope Certificate No. Issue Date Use Project Land of Land Use (sq.m.)

地字第YD-SQ2010036號 22 June 2010 Commercial Residential Land 34,856 (Di Zi No.YD-SQ2010036*) Building and Residential Building (Hengtian Rose Garden) 地字第YD-SQ2012045號 30 July 2012 Phase II of Residential Land 19,885 (Di Zi No.YD-SQ2012045*) Hengtian Rose Garden 地字第YD-SQ2013005號 19 February Phase III of Residential Land 7,085 (Di Zi No.YD-SQ2013005*) 2013 Hengtian Rose Garden

Total 61,826

The property was included in the said site area.

I – 99 APPENDIX I PROPERTY VALUATION REPORT

(4) In accordance with Construction Works Planning Permits, the following construction works were in compliance with the urban planning requirements:

Approved Construction Certificate No. Issue Date Works Total GFA (sq.m.)

建字第GC-SQ2010036號 20 July 2010 JR Commercial Building, and 60,298.74 (Jian Zi No.GC-SQ2010036*) Floors1-8, Building 9, Residential Building with Attic and Basement 建字第GC-SQ2012054號 25 October 2012 Floors 3-4, Building 9, Phase II 22,281.24 (Jian Zi No.GC-SQ2012054*) of Hengtian Rose Garden 建字第GC-SQ2013006號 11 March 2013 Floor 3 of Building 4, Phase III 6,801.2 (Jian Zi No.GC-SQ2013006*) of Hengtian Rose Garden

Total 89,381.18

The property was included in the said site area.

(5) In accordance with Construction Works Commencement Permits, the following construction works have been approved for construction:

Approved Construction Certificate No. Issue Date Works Total GFA (sq.m.)

222400201007270101 27 July 2010 Hengtian Rose Garden 27,103 (2010-11) 222400201007270101 27 July 2010 Hengtian Rose Garden 19,116 (2010-13) 222400201007270101 27 July 2010 Hengtian Rose Garden 14,872 (2010-12) 222401201210290101 29 October 2012 Residential Community of 22,281.21 PhaseIIofHengtianRose Garden 222401201304170101 17 April 2013 Works of 13#、14#、20#、21# 6,801.2 Building of Residential Community of Phase III of Hengtian Rose Garden

Total 90,173.41

The property was included in the said site area.

I – 100 APPENDIX I PROPERTY VALUATION REPORT

(6) In accordance with Commodity House Pre-sale Permits, the following property was approved for pre-sale:

GFA for Certificate No. Issue Date Location of Pre-sale Property Pre-sale (sq.m.)

延房許字第2010080號 21 October 2010 Building No. 1, Hengtian Rose 16,262.73 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010080*) Yanji City 延房許字第2010081號 21 October 2010 Building No. 2, Hengtian Rose 10,439.09 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010081*) Yanji City 延房許字第2010082號 21 October 2010 Building No. 3, Hengtian Rose 8,982.09 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010082*) Yanji City 延房許字第2010083號 21 October 2010 Building No. 4, Hengtian Rose 7,838.58 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010083*) Yanji City 延房許字第2010084號 21 October 2010 Building No. 5, Hengtian Rose 4,027.80 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010084*) Yanji City 延房許字第2010085號 21 October 2010 Building No. 6, Hengtian Rose 4,702.07 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010085*) Yanji City 延房許字第2010086號 21 October 2010 Building No. 7, Hengtian Rose 5,374.28 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010086*) Yanji City 延房許字第2010087號 21 October 2010 Building No. 8, Hengtian Rose 3,381.42 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2010087*) Yanji City 延房許字第2012193號 31 October 2012 10#、11#、12#、13#、16#、 22,266.19 (Yan Fang Xu Zi No. 17#、18#、19#、20# 2012193*) Residential Building, Phase II of Hengtian Rose Garden 延房許字第2013045號 27 April 2013 Building No. 14, Hengtian Rose 2,788.82 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2013045*) Yanji City 延房許字第2013044號 27 April 2013 Building No. 15, Hengtian Rose 1,605.84 (Yan Fang Xu Zi No. Garden, 708 Xinfeng Street, 2013044*) Yanji City 延房許字第2013043號 27 April 2013 Building No. 22, Hengtian Rose 1,605.84 (Yan Fang Xu Di Garden, 708 Xinfeng Street, No.2013043*) Yanji City

Total 89,274.75

I – 101 APPENDIX I PROPERTY VALUATION REPORT

(7) As advised by the Estate Group, the construction cost of the unsold portion of the project was RMB1,116,146.75 and the property was part of the project.

(8) Pursuant to a Business License, No. 222400000012313 dated 5 February 2010, 延邊宏大興邊置業發展有限 公司 (Yanbian Hongda Xingbian Real Estate Development Co., Ltd.*) was established as a limited liability companyon29November2006witharegisteredcapitalofRMB10,000,000andtheoperationperiodis effective from 29 November 2006 to 28 November 2026.

(9) According to the PRC legal opinion:

(i) 延邊宏大興邊置業發展有限公司 (Yanbian Hongda Xingbian Real Estate Development Co., Ltd.*) has obtained a valid business licence and is legally established;

(ii) 延邊宏大興邊置業發展有限公司 (Yanbian Hongda Xingbian Real Estate Development Co., Ltd.*) is the legal owner of the property;

(iii) 延邊宏大興邊置業發展有限公司 (Yanbian Hongda Xingbian Real Estate Development Co., Ltd.*) is entitled to occupy, use, assign, lease, mortgage or otherwise legally dispose of the property pursuant to the PRC laws within the land use term;

(iv) The Property is free from any mortgages, ownership disputes, seizures or other judicial compulsory measures.

(10) The status of the title and grant of major approvals and licences as per information provided by the Estate Group and the legal opinion are as follows:

State-owned Land Use Rights Certificate Yes State-owned Land Use Rights Grant Contract Yes Construction Land Planning Permit Yes Construction Works Planning Permit Yes Construction Works Commencement Permit Yes Commodity House Pre-sale Permit Yes Business Licence Yes

I – 102 APPENDIX I PROPERTY VALUATION REPORT

Group VI – Properties rented by the Estate Group in the PRC

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

25 中國北京朝陽區建國路 China Garments Mansion (the Mansion) The property is occupied No commercial value 99號中服大廈寫字樓第 includes a 26-floor commercial property, by Hengtian Real Estate 20層 (An office on which was completed in 2002. as office as at the Floor 20, China Valuation Date. Garments Mansion, The property includes an office with a 99 Jianguo Road, total gross floor area of 1,168.2 sq.m. Chaoyang District, situated on Floor 20 of the Mansion. Beijing, the PRC*) The property was leased to 恒天地產有限 公司 (Hengtian Real Estate Co., Ltd.*) by 中國服裝集團公司 (China Garments Group Corporation*) (a connected company to Hengtian Real Estate) from 1 October 2014 and the term is due to expire on 30 September 2015.

Notes:

(1) The property is rented by Hengtian Real Estate at the rent of RMB266,466 per month (excluding management fees) from 中國服裝集團公司 (China Garments Group Corporation*) from 1 October 2014, and the tenancy is due to expire on 30 September 2015, and the rent under the contract is in line with the market rate.

(2) We have received the legal opinion on whether the property’s tenancy is legal, issued by the PRC legal advisor of Hengtian Real Estate, and the information included is as follows:

(i) The tenancy is legally binding;

(ii) Hengtian Real Estate is entitled to occupy and use the property during the tenancy term; and

(iii) The tenancy has been registered and filed with the relevant authorities.

I – 103 APPENDIX I PROPERTY VALUATION REPORT

Market Value in existing state as at No. Property Description and tenure Particulars of occupancy 30 April 2015

26 中國山東省青島市嶗山 The office building located at No. 29 The property is rented by No commercial value 區梅嶺路29號810、811 Meiling Road, Laoshan District, Qingdao 青島瑞和置業發展有限公 及813房間 (Rooms 810, City was completed in 2008. 司 (Qingdao Ruihe Real 811 & 813, No. 29 Estate Development Co., Meiling Road, Laoshan The property includes an office with a Ltd.*) as office as at the District, Qingdao City, total gross floor area of 170.24 sq.m. Valuation Date. Shangdong Province, situated on Floor 8 of the building. the PRC*) The property was leased to 青島瑞和置業 發展有限公司 (Qingdao Ruihe Real Estate Development Co., Ltd.*) by 青島 嶗山風景旅遊發展公司 (Qingdao Laoshan Scenic Tourism Development Corporation*) from8March2015and the term is due to expire on 7 March 2016.

Notes:

(1) The property is rented by 青島瑞和置業發展有限公司 (Qingdao Ruihe Real Estate Development Co., Ltd.*) at the daily rent of RMB3 per sq.m. (excluding management fees) from 青島嶗山風景旅遊發展公司 (Qingdao Laoshan Scenic Tourism Development Corporation*) from 8 March 2015, and the tenancy is due to expire on 7 March 2016, and the rent under the contract is in line with the market rate.

(2) We have received the legal opinion on whether the property’s tenancy is legal, issued by the PRC legal advisor of Hengtian Real Estate, and the information included is as follows:

(i) The tenancy is legally binding;

(ii) Hengtian Real Estate is entitled to occupy and use the property during the tenancy term; and

(iii) The tenancy has been registered and filed with the relevant authorities.

I – 104 APPENDIX II GENERAL INFORMATION

1. RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Group. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

2. DISCLOSURE OF INTERESTS

(a) Interests of Directors and chief executive of the Company

As at the Latest Practicable Date, the interests and short positions of the Directors or chief executive of the Company in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO), which (a) were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO), or (b) were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein, or (c) were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the ‘‘Model Code’’) adopted by the Company, to be notified to the Company and the Stock Exchange, were as follows:

Name of company in which Appropriate interests or short Nature of Number of percentage of Name positions were held interests Shares shareholding

Mr. Fong Kwok Leung, The Company Beneficial owner 3,100,000 0.28% Kevin

Held by spouse 200,000 0.02%

3,300,000 0.30%

Mr. Wan Wai Yung The Company Beneficial owner 4,036,000 0.36%

Corporate interest 2,627,000 0.24% (Note 1)

6,663,000 0.60%

Note: Mr. Wan Wai Yung is deemed to be interested in 2,627,000 Shares held by Campbell and Company Limited as he wholly owns Campbell and Company Limited.

II – 1 APPENDIX II GENERAL INFORMATION

Save as disclosed above but other than certain nominee shares in subsidiaries held by the Directors on trust for the Company or its subsidiaries, as at the Latest Practicable Date, none of the Directors or chief executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO), which (a) were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO, or (b) were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein, or (c) were required, pursuant to the Model Code adopted by the Company, to be notified to the Company and the Stock Exchange.

(b) Interests of Shareholders discloseable pursuant to the SFO

As at the Latest Practicable Date, so far as was known to the Directors or chief executive of the Company based on the register maintained by the Company pursuant to Part XV of the SFO, the following persons (other than a Director or chief executive of the Company) had an interest or a short position in the Shares and underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, or, who was, directly or indirectly, interested in 10% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of any other member of the Group or had options in respect of such capital:

Name of company in which Appropriate interests or short Number of percentage of Name positions were held Nature of interests Shares shareholding

China Hi-Tech Group The Company Corporate interests 615,408,140 55.80% Corporation (Note A)

Mr. Fong Sou Lam The Company Beneficial owner 58,800,000 5.33%

Held by spouse 10,000,000 0.91%

Corporate interests 126,104,220 11.43% (Note B)

194,904,220 17.67%

Note A: By virtue of the SFO, China Hi-Tech Group Corporation is deemed to be interested in 615,408,140 Shares held by its two wholly-owned subsidiaries as follows:

(i) Newish Trading Limited – 257,617,640 Shares

(ii) China Hi-Tech Holding Company Limited – 357,790,500 Shares

Mr. Shi Tinghong, an Executive Director, and Mr. Ye Maoxin, a Non-executive Director, are the directors of both Newish Trading Limited and China Hi-Tech Holding Company Limited.

II – 2 APPENDIX II GENERAL INFORMATION

Note B: Mr. Fong Sou Lam is deemed to be interested in 126,104,220 Shares by virtue of him being beneficially interested in (i) the entire share capital of Loyal Mate Limited which in turn beneficially owns 5,100,000 Shares and (ii) the entire issued share capital of GBOGH Assets Limited which in turn beneficially owns the entire share capital of the following companies which in turn beneficially own an aggregate of 121,004,220 Shares as follows:

(i) Bristol Investments Limited – 16,000,000 Shares

(ii) Polar Bear Holdings Limited – 78,000,000 Shares

(iii) Sheffield Holdings Company Limited – 27,004,220 Shares

Save as disclosed above, as at the Latest Practicable Date, so far as was known to the Directors or chief executive of the Company based on the register maintained by the Company pursuant to Part XV of the SFO, no person (other than a Director or chief executive of the Company) had, or were deemed or taken to have, any interest or short position in the Shares and underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, nor were there any persons, directly or indirectly, interested in 10% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of any other member of the Group or who had any options in respect of such capital.

3. SERVICE CONTRACT

As at the Latest Practicable Date, none of the Directors had entered into, or was proposing to enter into any service contract with the Company or any of its subsidiary which does not expire or is not determinable by the employing company within one year without payment of compensation other than statutory compensation.

4. DIRECTORS’ INTERESTS IN COMPETING BUSINESS

As at the Latest Practicable Date, to the best knowledge of the Directors, none of the Directors or their respective close associates had any interests in any business which compete or are likely to compete with the business of the Group.

5. MATERIAL INTERESTS

As at the Latest Practicable Date, none of the Directors had any direct or indirect interest in the assets which had been, since 31 December 2014, being the date to which the latest published audited consolidated accounts of the Company were made up, acquired or disposed of by or leased to any member of the Group, or were proposed to be acquired or disposed of by or leased to any member of the Group.

As at the Latest Practicable Date, none of the Directors was materially interested in any contract or arrangement which was significant in relation to the business of the Group.

II – 3 APPENDIX II GENERAL INFORMATION

6. MATERIAL ADVERSE CHANGE

As at the Latest Practicable Date, the Directors were not aware of any material adverse change in the financial or trading position of the Group since 31 December 2014, being the date to which the latest published audited consolidated accounts of the Company have been made up.

7. QUALIFICATION AND CONSENT OF EXPERTS

The following are the qualifications of the experts who have given advice and recommendation which are included in this circular:

Name Qualification

Quam Capital Limited a corporation licensed to carry out Type 6 (advising on corporate finance) regulated activity under the SFO

北京中資房地產土地評估有限公 an independent professional valuer 司 (Beijing Zhongzi Real Estate Appraisal Co., Ltd*)

北京金誠同達律師事務所 PRC legal advisers (Beijing Jincheng Tongda & Neal Law Firm*)

Each of the above experts has given and has not withdrawn its written consent to the issue of this circular with its opinion included in the form and context in which it is included and the references to its name in the form and context in which they respectively appear.

As at the Latest Practicable Date, the above experts had no shareholding in any member of the Group or the right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for securities in any member of the Group, nor did they have any direct or indirect interest in any assets which had been, since 31 December 2014, being the date to which the latest published audited consolidated accounts of the Company were made up, acquired or disposed of by or leased to any member of the Group, or were proposed to be acquired or disposed of by or leased to any member of the Group.

II – 4 APPENDIX II GENERAL INFORMATION

8. MISCELLANEOUS

(a) The registered office of the Company is at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.

(b) The Hong Kong branch share registrar and transfer office of the Company is Tricor Secretaries Limited at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

(c) The secretary of the Company is Mr. Lee Che Keung, who is an associate member of the Hong Kong Institute of Chartered Secretaries.

(d) The property valuation report as set out in Appendix I to this circular was prepared in Chinese, and the English version is a translation of the original. Should there be any discrepancies between the Chinese and English versions, the Chinese version shall prevail. Except the aforesaid, in the event of any inconsistency, the English text of this circular shall prevail over the Chinese text.

9. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the following documents are available for inspection at the principal place of business of the Company in Hong Kong at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong during 9:00 a.m. to 5:00 p.m. on any Business Day, from the date of this circular up to and including the date of the SGM:

(a) the Agreement;

(b) the property valuation report as set out in Appendix I to this circular; and

(c) this circular.

II – 5 NOTICE OF SPECIAL GENERAL MEETING

CHTC FONG’S INDUSTRIES COMPANY LIMITED 恒天立信工業有限公司 (Incorporated in Bermuda with limited liability) (Stock Code: 641)

NOTICE IS HEREBY GIVEN THAT the special general meeting (the ‘‘SGM’’)ofCHTC Fong’s Industries Company Limited (the ‘‘Company’’) will be held at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong on Tuesday, 11 August 2015 at 11:00 a.m. for the purpose of considering and, if thought fit, passing, with or without amendments, the following resolution as an ordinary resolution of the Company:

ORDINARY RESOLUTION

‘‘THAT:

(a) the conditional sale and purchase agreement dated 25 June 2015 (the ‘‘Sale and Purchase Agreement’’, a copy of which has been produced to the SGM marked ‘‘A’’ and initialled by the chairman of the SGM for the purpose of identification) entered into between 立信染整機械（深圳）有限公司 (Fong’s National Engineering (Shenzhen) Company Limited*), a wholly-owned subsidiary of CHTC Fong’s Industries Company Limited (the ‘‘Purchaser’’), as purchaser and 北京華德投資有限公司 (Beijing Huade Investment Co., Ltd.*), holding 75% paid up registered capital of the Target, and 佛山 市匯銀金盛投資有限公司 (Foshan City Huiyin Jinsheng Investment Co., Ltd.*), holding 25% paid up registered capital of the Target, together as the vendors (the ‘‘Vendors’’) in relation to the acquisition of the 100% paid up registered capital of 佛山市禪華德信息科技有限公司 (Foshan City Chanhuade Information Technology Limited*), by the Purchaser from the Vendors at the consideration of RMB146,139,690 be and is hereby approved, confirmed and ratified; and

(b) any one director of the Company be and is hereby authorised on behalf of the Company to do all such things and sign, seal, execute, perfect and deliver all such documents as they may in their discretion consider necessary, desirable or expedient, for the purposes of or in connection with the implementation and/or give effect to any matters relating to the Sale and Purchase Agreement and the transactions contemplated thereunder.’’

By order of the Board CHTC Fong’s Industries Company Limited C.K. Lee Company Secretary

Hong Kong, 24 July 2015

* for identification purposes only

SGM – 1 NOTICE OF SPECIAL GENERAL MEETING

Notes:

1. For determining the entitlement to attend and vote at the meeting, the register of members of the Company will be closed from Monday, 10 August 2015 to Tuesday, 11 August 2015, both days inclusive, during which period no transfers of shares will be effected. In order to be eligible to attend and vote at the meeting, all share transfer documents accompanied by the relevant share certificates must be lodged with the Company’s Hong Kong Branch Registrar, Tricor Secretaries Limited, at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong for registration not later than 4:30 p.m. on Friday, 7 August 2015.

2. A shareholder entitled to attend and vote at the above meeting may appoint one or more than one proxy to attend and to vote in his stead. A proxy need not be a shareholder of the Company. On a poll, vote may be given either personally or by a duly authorised corporate representative or by proxy. A shareholder who is the holder of two or more shares may appoint more than one proxy to attend on the same occasion.

3. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing, or if the appointor is a corporation, either under seal or under the hand of an officer or attorney duly authorised.

4. Where there are joint registered holders of any share of the Company (the ‘‘Share’’), any one such persons may vote at the meeting, either personally or by proxy, in respect of such Share as if he were solely entitled thereto; but if more than one of such joint holders be present at the meeting personally or by proxy, that one of the said persons so present whose name stands first on the register of members of the Company in respect of such Shares shall alone be entitled to vote in respect thereof.

5. The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed or a notarially certified copy of that power or authority, shall be deposited at the principal place of business of the Company in Hong Kong at 8th Floor, 22-28 Cheung Tat Road, Tsing Yi, Hong Kong not later than 48 hours before the time for holding of the meeting or adjourned meeting or poll (as the case may be) at which the person named in such instrument proposes to vote, and in default the instrument of proxy shall not be treated as valid.

6. Completion and return of the form of proxy will not preclude you from attending and voting at the meeting (or any adjournment thereof) if you so wish and in such event, the instrument appointing a proxy shall be deemed to be revoked.

7. Pursuant to Rule 13.39(4) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the resolution set out in the notice convening the meeting will be voted by way of poll at the meeting.

8. As at the date of this notice, the Chairman and executive Director is Mr. Shi Tinghong; the Vice-Chairman and Non-executive Director is Mr. Ye Maoxin; the other Executive Directors are Mr. Ji Xin (Chief Executive Officer), Mr. Wan Wai Yung and Mr. Fong Kwok Leung, Kevin; and the Independent Non-executive Directors are Mr. Ying Wei, Dr. Yuen Ming Fai and Mr. Li Jianxin.

SGM – 2