On 17 Jul 2008, the company signed an agreement to sell its 100% stake in Shanghai Nanchang Real Estate Co., Ltd. for RMB 156.35 mln to Lianyungang Zhigao Municipal Engineering Co., Ltd.

Prior to the transaction, the company received approximately RMB 2 mln in profit annually from the leasing of Shanghai Nanchang. Following the transaction, it will have a one-off gain of RMB 120 mln, which will be used to repay bank loans, supplement its working capital and invest in its wind power industry. Consequently, the company's interest rate costs will be curtailed by approximately RMB 4.8 mln.

From August 2007, the company had sold a 1% stake in Shanghai Kangding Road Real Estate Co., Ltd. and Shanghai Electric Group Finance Co., Ltd, a 100% stake in Shanghai Jingde Real Estate Co., Ltd. as well as properties in Xinfeng Road, Shanghai for RMB 93.6 mln in total.


Source: Shanghai Securities News

Date: 18 Jul 2008

CN01/BG/MZ/BT/WH