The company has managed to sell its entire 100% stake in a Tianjin shopping mall for RMB 339.07 mln to a buyer, whose effective controller is ING Real Estate Investment Management Co., Ltd., a world famous real estate investment and management institution.

The company announced on 16 July 2008 that Tianjin Huadi Investment Management Co., Ltd., a wholly-owned subsidiary of the company specifically established for the transaction, signed a stake transfer agreement with COF III SRL on 14 July 2008 to sell the 100% stake in Tianjin Fudi Mall Operation and Management Co., Ltd. for RMB 339.07 mln. The deal neither constitutes a related-party transaction nor does it involve a major asset reorganisation.

The company asserts that the deal will not negatively impact its sustainable operations. In contrast, the deal will enhance its profitability and risk prevention capabiliies as well as increase its 2008 EPS. A proposal related to the transaction has been approved by its board of directors and is subject to the approval of relevant government authorities and a general meeting of shareholders.

Source: First Financial Daily

Date: 16 Jul 2008

CN01/NW/MZ/BT/KM