nnouncement on Sale of Subsidiary?s Equity


The Company?s board of directors and all the directors guarantee the announced information does not contain any false record, misleading statement or significant omission and will bear several and joint responsibilities for the authenticity, accuracy and completeness of the announced information. The Company?s of fourth meeting of the Seventh Board of Directors and the 2010 Annual General Meeting approved the "Bill on Cooperation Agreement on Construction in Progress" (hereinafter referred to as "Cooperation Agreement") which agreed to license the company?s management team the specific implementation modalities within the principles of the agreement. (See announcements on Shanghai Securities News, Hong Kong Wen Wei Po, Shanghai Stock Exchange Web site dated March 11, March 31, April 16, April 27, 2011) Under the authorization of the Board of Directors and the shareholders general meeting, as a result of discussion among the management, the Company intends to publicly list for sale 10% stake of Shanghai Yun Yu Properties Limited held by Shanghai Sanmao Real Estate Co., Ltd. (hereinafter referred to as "San Mao Property"), the Company?s controlled subsidiary, at the Shanghai United Assets and Equity Exchange (hereinafter referred to as the "United Exchange"). Listed price, based on Zhong Xing Cai Guanghua (Shanghai) Shen Zi (2011) No. ZXHF2025 "Shanghai Yun Yu Properties Limited - Audit Report" and the Hu Yinxin Huiye Ping Bo Zi (2011) No. 283 "Appraisal Report on Value of All Equity of Shareholders Shanghai Run Yu Properties Limited intends to Transfer? issued by Shanghai Yingxin Huiye Assets Appraisal Co., Ltd., is set at RMB 102,090,285.19 yuan (say: RMB One hundred and two million ninety thousand two hundred and eighty five point nineteen) for all the shareholders? equity on the standard day of May 31, 2011 of Shanghai Yun Yu Properties Limited. Corresponding value of 10% equity of 10,209,028.519 yuan (say: RMB ten million two hundred and nine thousand twenty eight point five nineteen) is thus the starting price for the transfer of the equity concerned. The final total transfer price is subject to the results of bidding. According to Zhong Xing Cai Guanghua (Shanghai) Shen Zi (2011) No. ZXHF2025 "Shanghai Yun Yu Properties Limited - Audit Report" issued by Zhong Xing Cai Guanghua CPA Office Co., Ltd. , as of May 31, 2011, total assets of Shanghai Run Yu Property Co., Ltd. are 449,053,761.16 yuan; total liabilities 349,053,761.16 yuan; owner's equity (or shareholders? equity) 100,000,000.00 yuan. The company is the developer of the project of "Fisherman's Wharf" Phase II Chongqing Shanghai Office Building and by far has not yielded any sales revenue. Cap structure of the said project under construction will be completed by the end of 2011, and the whole project will be completed in June 2012. The said transfer of equity means the following to the Company: first, it can effectively avoid risks, to recover the investment as soon as possible; second, the funds from the equity transfer can be used to improve the company's financial position, allowing the Company to focus on the development of existing projects. After the equity transfer, the agreement that San Mao Real Estate possesses the priority to buy back within one year or within half year after the project concerned obtained pre-sale permit as stipulated in the attachment of the "Cooperation Agreement" released on March 11, 2011 remains in force. The Company will timely announce the progress of the said event and kindly reminds investors of reasonable investment and minding possible risks. Documents available: 1.Resolutions of 4th Session of 7th Board of Directors 2.Resolutions of 2010 annual Shareholders? General Meeting 3.Appraisal Report on Valuation Report of All Equity of Shareholders Shanghai Run Yu Properties Limited intends to Transfer 4.Shanghai Run Yu Properties Co., Ltd. Audit Report Shanghai Sanmao Enterprise (Group) Co., Ltd. Aug. 2, 2011