On 24 June 2008 the company announced that its two subsidiaries had jointly acquired a 100% stake in Xinjiang Zhongying Real Estate Co., Ltd. with RMB 87 mln of their own funds.

Founded in 2002 and with registered capital of RMB 130 mln, Xinjiang Zhongying Real Estate mainly operates Huadu Shopping Mall in the central business district of Urumqi, capital of Xinjiang Urygur Autonomous Region. Its main revenue comes from the rental income of the shopping mall. As of 31 May 2008, Xinjiang Zhongying Real Estate had RMB 116.82 mln in total assets and RMB 108.17 mln in net assets. In the first five months of 2008, its sales revenue was RMB 2.56 mln and net profit (loss) was RMB (1.94) mln.

With the development of Urumqi City, there is great potential for real estate development in the city. The company explained that its acquisition is in line with its development strategy.

Source: China Securities Journal

Date: 24 Jun 2008

CN01/MZ/AR/KM