【Corporate News】 Shenzhen International Signs Investment Agreement for Shenyang Project Integrated Logistic Hub Project Development is set to launch Shenzhen International Holdings Limited is pleased to announce that the Group has signed an agreement with the government of the Yuhong District in Shenyang city regarding its investment in and construction of “Shenzhen International Shenyang Modern Integrated Logistic Hub (“Shenyang Project”)”. The Shenyang Project is expected to implement in 2013. The Shenyang Project is the Group’s first “integrated logistic hub” project focusing on highway logistic transportation market. It integrates logistics, trading, e-commerce and other functional services and serves as a service platform that provides effective logistic infrastructure facilities and management services to customers inside the logistic park. The Shenyang Project is located at the Shenyang International Logistic Zone in the Yuhong District of Shenyang city. Shenyang Project has a total planned land area of approximately 700,000 square meters and the first phase of the project occupies a land area of approximately 200,000 square meters. The location of the project is just a 10-minute drive from the urban district of Shenyang city and within an hour drive from other cities in the Shenyang economic region. In addition, the Shenyang Project’s location features well-established expressway, railway, port and other infrastructure, allowing it to enjoy instant connection with the expressway and urban road network in the vicinity of Shenyang city. The Shenyang Project possesses excellent conditions for transportation and also cargo consolidation and distribution. In 2011, the cargo traffic volume in Shenyang city reached 194.05 million tons, 97% of which was transported through highway. Shenyang's GDP in 2011 was RMB591.5 billion, an increase of 12.3% year-on-year, and ranked 2nd only after Dalian among major cities of the Northeast region. The demand for logistic services in Shenyang city is considerable and is expected to grow steadily. By 2015, Shenyang's GDP and cargo traffic volume are expected to reach RMB803 billion and 266 million tons respectively. However, the market currently faces a shortage of logistic facilities and a lack of participation by sizable and highly efficient highway logistic park that provides the necessary facilities and services. The Group believes that there is sufficient market demand in Shenyang city to support the development of integrated logistic hub project. The Group is stepping up its efforts to develop and to implement its “integrated logistic hub” business model. The “integrated logistic hub” not only provides traditional logistic warehousing services, but also combines other functional facilities including office buildings, parking spaces, inns 1 and logistic information centres etc. Through its comprehensive and full spectrum services, the integrated logistic hub will be able to assist customers to further expand their businesses by providing logistic facilities and other ancillary services, together with the sharing of logistic information resources. The rental income to be generated from warehouse, office building and other functional facilities are the major source of revenue of the “integrated logistic hub” business model, which also derives steady growth revenue from the provision of other forms of integrated ancillary services. The investment cost of the first phase of Shenyang Project with a total land area of 200,000 square meters will be approximately RMB350 million (HKD432 million). The first phase of the project has a construction period of approximately two years. Upon completion, the logistic park is targeted to reach an annual cargo throughput of 15 million tons and to generate an average annual operating revenue of more than RMB100 million (HKD120 million). The Group intends to finance the first phase of the Shenyang Project by internal resources. Shenyang city is an important transportation gateway to the three provinces in Northeast China. With the geographical advantages of Shenyang city and the massive local demand for highway logistic transportation in the area, the Group considers Shenyang Project to be a strategic foothold in the Northeast region under its “integrated logistic hub” nationwide network. In the future, the Group will actively continue its investment in “integrated logistic hub” projects in key logistic gateway cities in China and more integrated logistic hub projects are expected to implement in 2013. The Group will continue to adhere to its development strategy in the investment and expansion of its logistic business. Through its “integrated logistic hub” business model, the Group will be able to provide highly efficient one-stop service to its customers and business partners. To sustain its long-term development, the Group is determined to cultivate its core business and profit driver by focusing in establishing logistic service platforms. The Group strives to become a leading logistic infrastructure facility provider in China and to enhance returns for our shareholders. － End － Note: HKD/RMB exchange rate used: 1 HKD to 0.81 RMB 2 .