CHINA YUANBANG PROPERTY HOLDINGS LIMITED (Incorporated in Bermuda) (Co. Reg. No: 39247)

Transcription

1 (Incorporated in Bermuda) (Co. Reg. No: 39247) FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2015 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year. Statement of Comprehensive Income for the year ended 30 June These figures have not been audited. Year ended 30/06/ /06/2014 RMB'000 RMB'000 % Unaudited Audited Changes Revenue 444,864 1,328,301 (66.5) Cost of sales - Cost of properties held for sale recognised as expenses and other costs (363,176) (929,322) (60.9) Gross profit 81, ,979 (79.5) Other income and gains 23,849 21, Fair value adjustments on investment properties 26,720 96,171 (72.2) Selling expenses (33,661) (70,293) (52.1) Administrative expenses (100,010) (104,157) (4.0) Other operating expenses (16,750) - N.M. Operating (loss)/profit (18,164) 341,798 (105.3) Finance costs (1,844) (2,336) (21.1) (Loss)/profit before income tax (20,008) 339,462 (105.9) Income tax expense (21,874) (132,535) (83.5) (Loss)/profit for the year (41,882) 206,927 (120.2) Other comprehensive (loss)/income, net of tax Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of financial statements of foreign operations (384) 2,352 (116.3) Other comprehensive (loss)/income for the year (384) 2,352 (116.3) Total comprehensive (loss)/income for the year (42,266) 209,279 (120.2) (Loss)/profit for the year attributable to: Owners of the Company (26,819) 143,744 (118.7) Non-controlling interests (15,063) 63,183 (123.8) (41,882) 206,927 (120.2)

2 Page 2 of 17 Year ended 30/06/ /06/2014 RMB'000 RMB'000 % Unaudited Audited Changes Total comprehensive (loss)/income attributable to: Owners of the Company (27,203) 146,096 (118.6) Non-controlling interests (15,063) 63,183 (123.8) N.M. Not meaningful The s profit before income tax is arrived at after charging/(crediting): (42,266) 209,279 (120.2) Year ended 30/06/ /06/2014 RMB 000 RMB 000 Unaudited Audited Amortisation of land use rights Depreciation of property, plant and equipment 9,520 9,327 Interest charges on financial liabilities carried at amortised cost 169, ,060 Less: amount capitalised in properties held under development (167,323) (126,724) 1,844 2,336 Interest income on financial assets carried at amortised cost (1,194) (1,392)

3 Page 3 of 17 1(b)(i) Statements of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. Statements of Financial Position Company 30/06/ /06/ /06/ /06/2014 RMB'000 RMB'000 RMB'000 RMB'000 Unaudited Audited Unaudited Audited ASSETS AND LIABILITIES Non-current assets Interests in subsidiaries , ,381 Property, plant and equipment 72,646 65, Investment properties 397, , Land use rights 13,710 14, Deferred tax assets 27,962 30, , , , ,381 Current assets Properties held for development 101,793 94, Properties held under development 1,566,987 1,954, Properties held for sale 1,692, , Account receivables Prepayments, deposits paid and other receivables 690, ,411 1,317 1,324 Tax recoverable 12,800 9,118 - Due from subsidiaries , ,377 Cash and bank balances 296, ,046-4,361,484 3,987, , ,701 Current liabilities Account payables 420, , Receipts in advance 1,080,853 1,044, Accruals, deposits received and other payables 292, ,501 8,387 7,507 Interest-bearing bank and other borrowings 806, , Income tax payable 154, , ,754,529 2,461,723 8,387 7,507 Net current assets 1,606,955 1,525, , ,194 Total assets less current liabilities 2,119,010 2,006, , ,575 Non-current liabilities Interest-bearing bank and other borrowings 912, , Deferred tax liabilities 126, , ,039, , Net assets 1,079,257 1,125, , ,575

4 Page 4 of 17 Company 30/06/ /06/ /06/ /06/2014 RMB'000 RMB'000 RMB'000 RMB'000 Unaudited Audited Unaudited Audited EQUITY Equity attributable to owners of the Company Share capital 133, , , ,882 Reserves 637, , , , , , , ,575 Non-controlling interests 308, , Total equity 1,079,257 1,125, , ,575 1(b)(ii) Aggregate amount of group s borrowings and debt securities. Amount repayable in one year or less, or on demand As at 30/06/2015 As at 30/06/2014 Secured Unsecured Secured Unsecured RMB'000 RMB'000 RMB'000 RMB' , , , ,317 Amount repayable after one year As at 30/06/2015 As at 30/06/2014 Secured Unsecured Secured Unsecured RMB'000 RMB'000 RMB'000 RMB' ,000 86, , ,040 Details of any collateral As at 30 June 2015, the s bank and other loans were secured by the pledge of the s properties held for development, properties held under development, properties held for sale and investment properties of RMB101,793,000, RMB654,144,000, RMB1,028,850,000 and RMB14,919,000 (FY2014: RMB94,006,000, RMB1,041,106,000, RMB13,207,000 and RMB318,878,000) respectively.

5 Page 5 of 17 1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Year ended 30/06/ /06/2014 RMB'000 RMB'000 Unaudited Audited Cash flows from operating activities (Loss)/profit before income tax (20,008) 339,462 Adjustments for: Amortisation of land use rights Depreciation of property, plant and equipment 9,520 9,327 Fair value adjustments on investment properties (26,720) (96,171) Interest expense 1,844 2,336 Interest income (1,194) (1,392) Impairment of account and other receivables 7,730 - Operating (loss)/profit before working capital changes (28,469) 253,921 Increase in properties held for development (7,787) (6,858) Increase in properties held under development (510,205) (44,199) Decrease in properties held for sale 341, ,983 Decrease in account receivables - 2,621 Increase in prepayments, deposits paid and other receivables (28,122) (235,776) Increase/(Decrease) in account payables 169,566 (85,679) Increase/(Decrease) in receipts in advance 36,320 (491,557) Increase/(Decrease) in accruals, deposits received and other payables 25,716 (118,526) Cash used in operations (1,556) (296,070) Income tax paid (41,625) (46,719) Interest received 1,194 1,392 Net cash used in operating activities (41,987) (341,397) Cash flows from investing activities Increase in restricted bank deposits (1,108) (156,871) Purchases of property, plant and equipment (17,338) (33,538) Net cash used in investing activities (18,446) (190,409) Cash flows from financing activities Proceeds from issuance of ordinary shares - 46,041 Shares issue expense - (2,609) Interest paid (169,167) (129,060) Capital injection by non-controlling interests 2,500 - Capital refund to non-controlling interests of de-registered subsidiary - (4,000) Dividend paid (6,940) (13,100) Proceeds from bank and other borrowings 1,131, ,818 Repayments of bank and other borrowings (891,493) (611,807) Net cash generated from financing activities 65, ,283

6 Page 6 of 17 Year ended 30/06/ /06/2014 RMB'000 RMB'000 Unaudited Audited Net increase/(decrease) in cash and cash equivalents 5,547 (338,523) Effect on foreign exchange translation (384) 2,352 Cash and cash equivalents at beginning of year 96, ,935 Cash and cash equivalents at end of year (note) 101,927 96,764 Note: Cash and bank balances 296, ,046 Less: Restricted bank deposits (194,390) (193,282) Analysis of balances of cash and cash equivalents 101,927 96,764

7 1(d)(i) CHINA YUANBANG PROPERTY HOLDINGS LIMITED Page 7 of 17 A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Noncontrolling Share Share Merger Revaluation Statutory Translation Dividend Retained capital premium* reserve* reserve* reserve* reserve* Proposed* earnings * Interests Total RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 At 30 June 2013 and 1 July 2013 (Audited) 127, ,314 20,720 4,582 37, , , , ,352 Dividend paid (13,100) - - (13,100) Issuance of shares 6,161 39, ,041 Shares issue expense - (2,609) (2,609) Decrease in noncontrolling interests as a result of de-registration of a subsidiary (4,000) (4,000) Transactions with owners 6,161 37, (13,100) - (4,000) 26,332 Profit for the year ,744 63, ,927 Other comprehensive income - Exchange difference on translation of financial statements of foreign subsidiaries , ,352 Total comprehensive income for the year , ,744 63, ,279 Final dividend proposed ,940 (6,940) - - Transfer to statutory reserve , (56,243) - - At 30 June 2014 and 1 July 2014 (Audited) 133, ,585 20,720 4,582 93,892 3,234 6, , ,750 1,125,963 Dividend paid (6,940) - - (6,940) Capital injection by noncontrolling equity holders - of a subsidiary ,500 2,500 Transactions with owners (6,940) - 2,500 (4,440) Loss for the year (26,819) (15,063) (41,882) Other comprehensive loss - Exchange difference on translation of financial statements of foreign subsidiaries (384) (384) Total comprehensive loss for the year (384) - (26,819) (15,063) (42,266) At 30 June 2015 (Unaudited) 133, ,585 20,720 4,582 93,892 2, , ,187 1,079,257 * These reserve accounts comprise the consolidated reserves of approximately RMB637,188,000 (FY2014: RMB671,331,000) in the s statement of financial position.

8 Page 8 of 17 Company Share capital Share premium** Contributed surplus** Dividend proposed** Retained earnings/ (accumulated losses)** Total RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 At 30 June 2013 and 1 July 2013 (Audited) 127, ,203 35,064 13,100 1, ,458 Dividend paid (13,100) - (13,100) Issuance of shares 6,161 39, ,041 Share issue expense - (2,609) (2,609) Transactions with owners 6,161 37,271 - (13,100) - 30,332 Profit for the year and total comprehensive income for the year ,785 8,785 Final dividend proposed ,940 (6,940) - At 30 June 2014 (Audited) 133, ,474 35,064 6,940 3, ,575 Dividend paid (6,940) - (6,940) Loss for the year and total comprehensive loss for the year (5,115) (5,115) At 30 June 2015 (Unaudited) 133, ,474 35,064 - (1,900) 471,520 ** These reserve accounts comprise the Company s reserves of approximately RMB337,638,000 (FY2014: RMB349,693,000) in the Company s statement of financial position. 1(d)(ii)Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There were no shares held as treasury shares and the Company does not have any share that may be issued on conversion of any outstanding convertibles as at 30 June 2014 and 30 June On 29 July 2015, the Company completed a share consolidation of 10 existing issued ordinary shares into 1 ordinary share. 1(d)(iii)To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. Company 30/06/ /06/ /06/ /06/2014 Total number of issued shares 694,000, ,000, ,000, ,000,000 Less: Treasury shares Total number of issued shares excluding treasury shares 694,000, ,000, ,000, ,000,000 Total number of issued shares excluding treasury shares upon the completion of share consolidation on 29 July 2015, retrospectively presented 69,400,000 69,400,000 69,400,000 69,400,000

9 Page 9 of 17 1(d)(iv)A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable 2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have neither been audited nor reviewed by the auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. The has adopted the same accounting policies and methods of computation as stated in the audited financial statements for the year ended 30 June 2014, except for the adoption for the new and amended International Financial Reporting Standards (IFRSs) which become effective on 1 July The adoption of these new and amended IFRSs did not give rise to significant change to the financial statements. 5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. Not applicable 6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Year ended 30/06/ /06/2014 (Restated) (Restated) (Losses)/earnings per ordinary share (a) Basic (RMB dollars) (0.39) 2.13 (b) Fully diluted (RMB dollars) N/A N/A Note: The calculation of basic (losses)/earnings per ordinary share is based on the loss for the year attributable to owner of the of approximately RMB26,819,000 (FY2014: profit of RMB143,744,000) and the ordinary shares of 69,400,000 (FY2014: weighted average number of ordinary shares of approximately 67,487,000) in issue during the year. The Company had on 29 July 2015 completed the share consolidation of 10 existing ordinary shares into 1 ordinary share. The weighted average number of ordinary shares was adjusted retrospectively for all periods presented. Diluted earnings per ordinary share for the year ended 30 June 2015 and 30 June 2014 was not presented as there was no potential dilution of the s ordinary share capital.

10 Page 10 of Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the: (a) current financial period reported on; and (b) immediately preceding financial year. Company 30/06/ /06/ /06/ /06/2014 (Restated)* (Restated)* (Restated)* (Restated)* Net asset value per ordinary share based on issued share capital at the end of the period: (RMB dollars) Note: *After the completion of share consolidation on 29 July 2015, the net asset value per share ordinary share of and the Company at the end of 30 June 2014 and 30 June 2015 has been restated based on 69,400,000 ordinary shares post share consolidation. 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and Review of performance Revenue The s revenue for the year ended 30 June 2015 ( FY2015 ) was mainly derived from the sale of Xilang Project, namely Ming Yue Shui An ( 明月水岸 ), Huadu Project (Phases I and II), namely Shan Qing Shui Xiu ( 山清水秀 ) in Guangzhou City and Phase II of Aqua Lake Project, namely Aqua Lake Grand City ( 绿湖豪城 ) in Nanchang City. An analysis of the s revenue for FY2015 is as follows: RMB'000 FY2015 As a % of total revenue RMB'000 FY2014 As a % of total revenue Residential units 431, % 798, % Commercial units , % Car park lots 13, % 104, % 444, % 1,328, % The s revenue amounted to RMB444.9 million for FY2015 which was RMB883.4 million lower compared to RMB1,328.3 million in FY2014. The decrease in revenue was mainly attributed to the unexpected delay in the handover of the residential units of the s Xilang Project, pending the completion of necessary procedures and inspection by the relevant authorities. As at 30 June 2015, the had completed all the necessary procedures and inspection for six (6) out of 10 residential blocks. The aggregate sales represented a total GFA of 36,610 sq m of residential units and 4,205 sq m of car park lots in FY2015, compared to 74,382 sq m of residential units, 51,477 sq m of commercial units and 17,587 sq m of car park lots in FY2014.

11 Page 11 of 17 The s average selling price ( ASP ) of residential units increased from RMB10,740 per sq m in FY2014 to RMB11,782 per sq m in FY2015. This was attributable to the higher average selling price ( ASP ) of the residential units under s Xilang Project. Cost of sales The recorded cost of sales of RMB363.2 million for FY2015 which was RMB566.1 million lower compared to RMB929.3 million in FY2014. The decrease in cost of sales was in line with the decrease in revenue. Gross profit The recorded a gross profit of RMB81.7 million for FY2015 which was RMB317.3 million lower compared to RMB399.0 million in FY2014. The decrease in gross profit was mainly due to fewer residential units handed over during the year. Gross profit margin decreased to 18.4% in FY2015 from 30.0% in FY2014. The dip in gross profit margin was mainly due to i) a low profit margin from the sales of residential units and car parks which comprised the bulk of revenue in FY2015 while in FY2014, revenue included the sales of commercial units which commanded higher gross profit margins; and ii) the sales of the Aqua Lake Project in FY2014 which has a higher profit margin than the s projects in Guangzhou. Other income and gains The recorded other income and gains of RMB23.8 million for FY2015 which was RMB2.7 million higher compared to RMB21.1 million in FY2014. The increase was due to the launch of Batai Mountain National Park in October 2014, which generated ticket sales income of RMB2.8 million for the year. Fair value adjustments on investment properties The recorded a gain of RMB26.7 million arising from fair value adjustments on the s investment properties in FY2015 compared to RMB96.2 million in FY2014 based on the valuation carried out by Jones Lang LaSalle Corporate Appraisal and Advisory Limited on 21 August The gain was mainly due to the improvement in real estate prices in certain cities of the PRC. The decrease of RMB69.5 million in fair value adjustment was due to fewer commercial units under the s Wenchang Project being transferred from Properties held for sales to Investment properties during the year. Selling expenses The recorded selling expenses of RMB33.7 million for FY2015 which was RMB36.6 million lower compared to RMB70.3 million in FY2014. The decrease was mainly due to fewer advertising and promotional activities during the period. The decrease was partially off-set by the increase in salaries and allowances and rental expenses. The increase in salary was due to recruitment of more sales staff during the year for the sales of the s Xilang and Huadu Projects. The increase in rental expenses was due to the setting up of more showrooms during the year for the promotion of the s projects.

12 Page 12 of 17 The breakdown of selling expenses for FY2015 is as follows: FY2015 FY2014 Variance RMB'000 RMB'000 RMB'000 % Advertising expenses 8,342 31,961 (23,619) -74% Commission expenses 523 3,937 (3,414) -87% Promotional expenses 6,377 18,129 (11,752) -65% Salaries and allowances 8,906 6,911 1,995 29% Rental and building management expenses 6,979 4,608 2,371 51% Others 2,534 4,747 (2,213) -47% Administrative expenses 33,661 70,293 (36,632) -52% The recorded administrative expenses of RMB100.0 million for FY2015 which was RMB4.2 million lower compared to RMB104.2 million in FY2014. The decrease was mainly due to (i) lower entertainment expenses due to the implementation of cost controls policy; and (ii) lower local taxes incurred relating to the s Aqua Lake Project during the year. The decrease was partially off-set by the increase in salaries and wages which was due to the one-off severance payment to the retrenched employees as part of the s staff rationalization exercise conducted during the year. The breakdown of administrative expenses for FY2015 is as follows: FY2015 FY2014 Variance RMB'000 RMB'000 RMB'000 % Salaries and wages 40,659 29,947 10,712 36% Entertainment expenses 10,107 23,705 (13,598) -57% Other tax 4,084 9,414 (5,330) -57% Depreciation 8,392 9,071 (679) -7% Travelling expenses 6,720 6, % Office expenses 5,333 4, % Directors' fee and remuneration 3,688 3, % Others 21,027 17,499 3,528 20% Other operating expenses 100, ,157 (4,147) -4% The recorded other operating expenses of RMB16.8 million for FY2015 while there were no such expenses in FY2014. The amount mainly represented the direct expenses such as staff cost, repair and maintenance, etc, amounting to RMB6.7 million in relation to the Batai Mountain National Park and the provision for impairment of other receivables of RMB7.7 million. Finance costs The recorded finance costs of RMB1.8 million for FY2015 which was RMB0.5 million lower compared to RMB2.3 million in FY2014. The decrease was mainly due to the decrease in other borrowings which were used for working capital purpose during this year. Finance costs for borrowings which were used for project financing were capitalized to the project accordingly.

13 Page 13 of 17 Income tax expense The recorded income tax expense of RMB21.9 million for FY2015 which was RMB110.6 million lower compared to RMB132.5 million in FY2014. The amount mainly represented the PRC enterprise income tax of RMB1.7 million, land appreciation tax of RMB17.5 million and deferred tax liabilities of RMB2.7 million provided for the year. Decrease in income tax expense was due mainly to the decrease in revenue and net profit for the year. (Loss)/profit for the year The recorded a loss of RMB41.9 million for FY2015 which was RMB248.8 million lower compared to profit of RMB206.9 million in FY2014. The loss was due mainly to a decrease in revenue and fair value adjustments on investment properties as mentioned above. Cash flows analysis For FY2015, the recorded RMB42.0 million of cash used in operating activities which was mainly attributable to the increase in properties held under development which was partially off-set by the decrease in properties held for sales and increase in account payables. Net cash outflow from investing activities in FY2015 of RMB18.4 million was mainly due to the increase in restricted bank deposits and the purchases of property, plant and equipment. Net cash inflow from financing activities in FY2015 of RMB66.0 million was mainly due to the net proceeds from bank and other borrowings, which was off-set against the interest and dividend paid. As a result, the has a cash and cash equivalent of RMB101.9 million. (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Review of the Financial Position as at 30 June 2015 Non-current assets As at 30 June 2015, the s non-current assets stood at RMB512.1 million, representing an increase of RMB31.5 million compared to RMB480.6 million as at 30 June The increase was mainly attributable to an increase in investment properties of RMB27.1 million and property, plant and equipment of RMB7.5 million. The increase in investment properties was mainly due to fair value adjustments as per valuation carried out by Jones Lang LaSalle Corporate Appraisal and Advisory Limited on 21 August 2015 on the s investment properties. Current assets As at 30 June 2015, the s current assets stood at RMB4,361.5 million, representing an increase of RMB374.1 million compared to RMB3,987.4 million as at 30 June The increase was mainly attributable to an increase in properties held for sale of RMB723.1 million which was partially offset by the decrease in property held under development of RMB387.1 million. The increase in property held for sales and decrease in property held under development was due to the completion of Ming Yue Shui An ( 明月水岸 ) during the period and as a result, the project was reclassified as property held for sale instead of property held under development.

14 Page 14 of 17 Current liabilities As at 30 June 2015, the s current liabilities stood at RMB2,754.5 million, representing an increase of RMB292.8 million, compared to RMB2,461.7 million as at 30 June This was due mainly to i) an increase in account payables of RMB169.6 million due to the s contractors and suppliers; ii) an increase in interest-bearing bank and other borrowings of RMB80.0 million. The overall increase was offset by the decrease in income tax payable following the payment of taxes during the year. Non-current liabilities As at 30 June 2015, the s non-current liabilities stood at RMB1,039.8 million, representing an increase of RMB159.6 million, compared to RMB880.2 million as at 30 June This was mainly due to the increase in bank and other borrowings of RMB159.6 million as a result of proceeds from new loans obtained during the year. Total equity As at 30 June 2015, the s equity stood at RMB1,079.3 million, representing a decrease of RMB46.7 million, compared to RMB1,126.0 million as at 30 June This was mainly due to the loss for the year and the payment of dividend. 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. The FY2015 results are in line with the profit warning announcement announced by the Company on 4 August A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. China s economy grew 7.0% year-on-year in the first half of 2015, its slowest pace in ten years. Notwithstanding, the real estate market in China had begun to show some gradual improvements. Since the start of 2015, the Chinese government has taken steps to stimulate the real estate market by (i) easing bank reserve -requirement ratios to boost lending, (ii) easing on cooling measures specific to the real estate sector such as lowering the down payment for first-time and second-time homebuyers, and (iii) exempting the business tax upon transfer of the properties that were owned for more than two years. Premier Li Keqaing had highlighted before that the urban population in the PRC had increased by 18 million and the urbanization rate had increased by 1.04% to around 55% in The believes that the urbanization process will lead to a significant demand on the real estate in long term. The will therefore continue to be actively involved in the reconstruction of urban-village ( 城中村 改造 ) projects initiated by the Chinese government s drive for urbanization.

15 Page 15 of 17 The is on schedule for its construction work in progress. Details of the occupancy and take-up rates of the s major existing projects which had obtained pre-sale certificates as at 30 June 2015 are as follows: Shan Qing Shui Xiu ( 山清水秀 ) Aqua Lake Grand City (Phase II) ( 绿湖豪城 ) Ming Yue Xing Hui ( 明月星辉 ) Ming Yue Jin An ( 明月金岸 ) Ming Yue Shui An ( 明月水岸 ) Total units of residential for sales 688 1, Total units handed over to buyers as of June 2015 Percentage of 44% 95% 99% 90% 14% handed over Pre-sale units not handed over to buyers as at 30 June Residential unit - Carpark - Hotel Pre-sale value not handed over to buyers as at 30 June RMB151.0 million RMB336.5 million RMB45.7 million RMB39.1 million RMB481.7 million Barring any unforeseen circumstances, the expects to complete the necessary procedures and inspection by the relevant authorities for its remaining 4 residential blocks of its Ming Yue Shui An ( 明月水岸 ) project. This would allow the to hand over the pre-sold units to the homebuyers. Together with the pre-sold units from the s other projects, namely, Shan Qing Shui Xiu (Phase I & II) ( 山清水秀 ), Aqua Lake Grand City (Phase II) ( 绿湖豪城 ), Ming Yue Xing Hui ( 明月星辉 ) and Ming Yue Jin An ( 明月金岸 ), these will be progressively recognised as revenue from 1QFY2016 onwards once the units are handed over to the buyers. The has also pre-launched the sale of its Phase I of Ren Jie Di Ling ( 人杰地灵 ) project in Rushan City and Hou De Zai Wu ( 厚德载物 ) project in Tonghua City with a total of 170 units and 300 units available for sale, respectively. The will be planning for a full-scale launch in due course. In addition, the is in the process of planning and constructing three other developments, namely Batai Mountain Project in Wanyuan City and Huizhou Project in Huizhou City. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? None (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year?

16 Page 16 of 17 A final dividend of RMB0.01 per ordinary share (tax not applicable) for FY2014 which amounted to RMB6,940,000 had been paid on 4 December (c) Date payable Not applicable. (d) Books closure date Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended for the full year results ended 30 June Update on use of Placement Proceeds The Board refers to the net proceeds of RMB43,432,000 raised from the placement of 39 million ordinary shares on 27 December As at 30 June 2015, the had used RMB34 million for its property development. PART II -ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 14. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year. Properties development is the only business segment of the. No geographical segment analysis was presented as the s revenue was derived in the PRC. Accordingly, no separate business and geographical segment information was prepared. 15. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. Not applicable. 16. A breakdown of sales. Not applicable 17. A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year. Total annual dividend - Interim - Final Total Year ended 30/06/ /06/2014 RMB 000 RMB ,940-6,940

17 Page 17 of General mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii) The Company does not have any IPT mandate. 19. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(13). Name Age Family relationship with any director and/or substantial shareholder Lin Yeju 44 Spouse of Chen Jianfeng, Substantial Shareholder. Current position and duties, and the year the position was held Non-Executive Chairman of the Company 2015 Executive Director of Nanchang Changhao Real Estate Consultancy Co. Ltd., a whollyowned subsidiary of the Company Details of changes in duties and position held, if any during the year Madam Lin Yeju was appointed as Non-Executive Director and Chairman of the Board of the Company on 5 February 2015 BY ORDER OF THE BOARD Lin Yeju Non-Executive Chairman 28 August 2015