More than 20 Mln Shares to be Sold

The company plans to transfer its 9.99 mln shares of Shenzhen Tehao Co. Ltd and 13.78 mln shares of Shenzhen Jianye Group Co. Ltd through a public listing with the Shenzhen Property Rights Exchange Centre, with the initial listed price to be no less than the asset valuation price.

Shenzhen Tehao has RMB 869.9 mln in total assets, RMB 222.6 mln in net assets and RMB 3.1 in net assets per share, while Shenzhen Jianye, with RMB 1.18 bln total assets, RMB 276.7 net assets and RMB 3.01 net assets per share. The two construction companies were established by former infrastructure engineers in the early days of the Shenzhen Special District construction. Currently, the company holds 9.99 mln shares of Shenzhen Tehao, equal to a 13.89% stake, and 13.78 mln shares of Shenzhen Jianye, equal to a 15% stake.

The company has indicated that this decision was made due to three reasons: first, to reduce investment risks; second, to keep sufficient funds on hand for its development over the next two years; and third, to meet the needs of the company's strategic development.


Source: China Securities Journal

Date: 1 Jul 2008

CN01/RL/MZ/AR/MM