Guangzhou Investment Achieved Remarkable Sales Performance During National Day Holiday

Over 600 Residential Units Sold for Approximately RMB 300 Million as Guangzhou Property Market Continued to Grow Healthily

(17 October 2004 Hong Kong) Guangzhou Investment Company Limited ( GZI or the Group ; stock code: 0123), one of the ten largest integrated property developers in Guangzhou, announced its satisfactory sales figures for the National Day Holiday in 2004. The moderate increases in transaction volume and property price reflect a steady and healthy growth of Guangzhou property market.
During the National Day Holiday in October 2004, GZI Guangzhou City Construction & Development Holdings Limited ( GZI Guangzhou Development ), a subsidiary of GZI, launched various property projects including Binjiang Yiyuan Phase I, Springland Garden Phase III, Jiangnan New Mansion Phase II, Galaxy Commercial Building (please provide English name), Southern Le San Phase II and Area C of Glade Village.
During the National Day Holiday, GZI Guangzhou Development launched a number of property projects and received over-whelming response from the market. A total of 600 units were sold. The transaction volume amounted to approximately RMB 300 million, twice that as compared to the corresponding period in 2003, a new record of transaction volume during National Day holidays.
Of these six new property projects launched, apartments of Galaxy Commercial Building commenced sale on 1 October 2004. Additional units were launched to cater to market demand. All these units were subscribed in a few days. Currently, the Group is proactively preparing for the sale of the office premise. As for Jiangnan New Mansion Phase II, its spacious veranda, comfortable and commodious design was well received by the market. Over 80% of the units were sold, soon after the commencement of public sale. Springland Garden Phase III, located at the Haizhu district, was launched on 1 October 2004 and attracted over 1,000 visitors to the site. Southern Le Sand Phase II commenced sale on 3 October 2004 and were over-subscribed by twofold. A total of 70 villas were sold.
Mr. Liu Yongjie, deputy general manager of the property arm under GZI, said, As the Central Government restricted land supply and tightened bank credit, Guangzhou s property market has swiftly consolidated. Meanwhile, only large-scale property enterprises with unrivalled financial strength, reputation and high operation efficiency will be able to capture business opportunities and continue to launch quality residential property. During the National Day Holiday, over 20 large-scale property developers launched over 20,000 units of new properties, accounting for two-third of the total number of properties launched.
Commenting on the Group s future prospects, Mr. Liu concluded, The majority of residential property buyers in Guangzhou are users, particularly new home buyers and first time buyers. In addition to the active transaction volume, selling prices also increased during the period as compared with the corresponding period in 2003 and the golden week in May 2004 despite that no discount were offered by the property developers. This demonstrates that the development of Guangzhou s property market remained rational and robust. Looking ahead, GZI is committed to developing and launching more quality property projects, creating an ideal living environment for people and continue to lead the Guangzhou s property market.
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About GZI

GZI is one of the leading property developers in Guangzhou City. The Group is focusing on middle-class residential projects in Guangzhou. It also develops offices and rural residential projects selectively. In addition, the Group has built up several businesses which consist of property, pulp and paper, and toll roads connecting to the transportation hub of Guangzhou city in mainland China.
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