APPENDIX III PROPERTY VALUATION The following is the text of a letter with the summary of values and valuation certificate received from CB Richard Ellis Limited, prepared for the purpose of incorporation in the prospectus, in connection with their valuation as at 31 October 2010 of all the property interests of the Group. 4/F Three Exchange Square 8 Connaught Place Central, Hong Kong T 852 2820 2800 F 852 2810 0830 香港中環康樂廣場八號交易廣場第三期四樓 電話 852 2820 2800 傳真 852 2810 0830 www.cbre.com.hk 地產代理（公司）牌照號碼 Estate Agent’s Licence No: C-004065 15 December 2010 The Board of Directors, China Animal Healthcare Ltd., No. 6 Kangding Street, Yi Zhuang Economic Development Zone, Beijing City, the People’s Republic of China Dear Sirs, In accordance with your instructions for us to value the property interests held by China Animal Healthcare Ltd. (the ‘‘Company’’) and its subsidiaries (hereinafter together know as the ‘‘Group’’)inthePeople’s Republic of China (the ‘‘PRC’’). We confirm that we have carried out inspections, made relevant enquiries and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the capital values of such property interests as at 31 October 2010 (the ‘‘date of valuation’’). Our valuation is our opinion of Market Value which is defined to mean ‘‘the estimated amount for which a property should exchange on the date of valuation 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.’’ Unless otherwise stated, our valuation is prepared in accordance with the ‘‘First Edition of The HKIS Valuation Standards on Properties’’ published by The Hong Kong Institute of Surveyors (‘‘HKIS’’). We have also complied with all the requirements contained in Paragraph 46 of Schedule 3 of the Companies Ordinance (Cap. 32), Chapter 5, Practice Note 12 and Practice Note 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’). – III-1 – APPENDIX III PROPERTY VALUATION Our valuation has been made on the assumption that the owner sells the properties on the open market without the benefit or burden of a deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which would serve to affect the values of the property interests. Unless otherwise stated, all the property interests are valued by the comparison method on the assumption that each property can be sold with the benefit of vacant possession. Comparison is based on prices realized on actual transactions or asking prices of comparable properties. Comparable properties with similar sizes, character and locations are analyzed, and carefully weighted against all respective advantages and disadvantages of each property in order to arrive at a fair comparison of value. In valuing the property interests in Group I, which are held by the Group for occupation and development in the PRC, we have valued each of these property interests by the direct comparison approach assuming sale of each of these property interests in its existing state with the benefit of vacant possession and by making reference to comparable sales transactions as available in the relevant market. For the property interests in Group II which are rented by the Group in the PRC, are considered to have no commercial value due mainly to the prohibition against assignment or sub- letting or otherwise due to the lack of substantial profit rent. In the course of our valuation for the property interests in the PRC, we have relied on the legal opinion provided by Group’s PRC Legal Adviser, Jingtian & Gongcheng Law Firm (the ‘‘PRC Legal Opinion’’). We have been provided with extracts from title documents relating to such property interests. We have not, however, searchedtheoriginaldocumentsto verify ownership or existence of any amendment which does not appear on the copies handed to us. All documents have been used for reference only. We have relied to a considerable extent on the information given by the Company, in particular, but not limited to, the sales records, planning approvals, statutory notices, easements, tenancies and floor areas. No on-site measurement has been taken. Dimensions, measurements and areas included in the valuation certificates are only approximations. We have taken every reasonable care both during inspecting the information provided to us and in making relevant enquiries. We have no reason to doubt the truth and accuracy of the information provided to us by the Company, which is material to the valuation. We were also advised by the Group that no material facts have been omitted from the information provided to us. We have inspected the properties to such extent as for the purpose of this valuation. In the course of our inspection, we did not notice any serious defects. However, we have not carried out any structural survey nor any tests were made on the building services. Therefore, we are not able to report whether the properties are free of rot, infestation or any other structural defects. We have not carried out investigations on the site to determine the suitability of the ground conditions and the services etc. for any future development. – III-2 – APPENDIX III PROPERTY VALUATION No allowance has been made in our valuation for any charges, mortgages or amounts owing on the property interests nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the property interests are free from encumbrances, restrictions and outgoing of an onerous nature which could affect their values. Unless otherwise stated, all monetary amounts are stated in Renminbi (‘‘RMB’’). We enclose herewith a summary of valuation and our valuation certificate. Yours faithfully, For and on behalf of CB Richard Ellis Limited Leo MY Lo Director Valuation & Advisory Services Note: Mr. Leo MY Lo is a member of Royal Institution of Chartered Surveyors, a member of the Hong Kong Institute of Surveyors. He has over 7 years’ valuation experience in the PRC and Hong Kong. – III-3 – APPENDIX III PROPERTY VALUATION SUMMARY OF VALUES Capital Value Capital Value in Interests attributable to the existing state as at attributable to the Group as at Property Interests 31 October 2010 Group 31 October 2010 (RMB) (RMB) Group I — Property interests held by the Group for occupation and development in the PRC 1. An industrial complex located at Bei 64,700,000 60% 38,820,000 Si Street, Shengle Economic Park, Helinger County, Hohhot City, Inner Mongolia Autonomous Region, the PRC 2. An industrial complex located at the 34,000,000 72% 24,480,000 south of Shanxi Agricultural University, Taigu County, Jinzhong City, Shanxi Province, the PRC Group I Sub-total: 63,300,000 Group II — Property interests rented by the Group in the PRC 3. Part of Blocks 6 and 7, No commercial value No. 6 Kangding Street, Yi Zhuang Economic Development Zone, Beijing City, the PRC 4. An industrial complex, No commercial value No. 148 Yanshan Road, Shijiazhuang Hi-Tech Industrial Development Zone, Shijiazhuang City, Hebei Province, the PRC 5. An industrial complex, Wei’er Road, No commercial value Gongye Cheng, Shenzhou City, Hebei Province, the PRC 6. 7 rented properties located No commercial value in Shenyang City, Hefei City and Chengdu City, the PRC GroupIISub-total: Nocommercialvalue Grand total: 63,300,000 – III-4 – APPENDIX III PROPERTY VALUATION VALUATION CERTIFICATE Group I — Property interests held by the Group for occupation and development in the PRC Capital value in existing state as at Property Description and tenure Details of occupancy 31 October 2010 (RMB) 1. An industrial complex The property comprises various PhaseIofthepropertyis 64,700,000 located at Bei Si workshops, offices, facilities with a total currently occupied by the (60% interests Street, Shengle g.f.a. of approximately 20,368.02 sq.m. Group as factory while attributable to the Economic Park, occupying on a site with an area of Phase II of the property is Group: Helinger County, approximately 135,860 sq.m. (the a parcel of vacant land. RMB38,820,000) Hohhot City, ‘‘Site’’). Inner Mongolia Autonomous Region, As advised by the Group, the the PRC development will comprise various workshops, offices, facilities with a total g.f.a. of approximately 62,604.62 sq.m. by two phases. Phase 1 is currently completed and Phase 2 is a parcel of vacant land. PhaseIofthepropertywascompleted in February 2010. The land use rights of the property are held under one State-owned Land Use Rights Certificate with a land use term expiring on 31 May 2059 for industrial use. Notes: a) Pursuant to the Contract entered into between People’s Government of Helinger County and Inner Mongolia Bigvet Biotech Co., Ltd (內蒙古必威安泰生物科技有限公司), dated 10 July 2008, the land use rights of the site with an area of approximately 135,860 sq.m. have been granted to the Group at a total consideration of RMB6,113,700. b) Pursuant to the State-owned Land Use Rights Certificate He Lin Ge Er (2009) Guo Yong Zi No.0000319 dated 3 December 2009 issued by People’s Government of Helinger County, the land use rights of the site with an area of approximately 135,860 sq.m. have been granted to Inner Mongolia Bigvet Biotech Co., Ltd (內蒙古必威 安泰生物科技有限公司) for industrial use with a land use term expiring on 31 May 2059. c) Pursuant to the Real Estate Title Certificate Fang Quan Zheng Meng Zi N0.183021001672 dated 8 February 2010 issued by People’s Government of Helinger County, the building ownership of the property with a total g.f.a. of approximately 20,368.62 sq.m.