Acquired Commercial & Residential Land Parcels in Baoshan District, Shanghai at RMB618 million

The Group is pleased to announce the acquisition of two land parcels situated at Songnan County, Baoshan District, Shanghai, at a consideration of RMB618 million. The acquired land parcels cover a site area of 43,116 sq. m. and a planned GFA of 69,000 sq. m., comprising residential developments of 30,962 sq. m. and commercial developments of 37,800 sq. m. in GFA, equivalent to a cost of RMB8,988 per sq. m. The newly acquired land parcels are situated in Songnan County of Baoshan District in Shanghai, which is 15 minutes away from the Group's Poly Villa Garden project. In recent years, five major industries, namely steel, environmental protection, construction materials, automobile and education have been established in Songnan Town. The rapid growth has led to the parallel development of industrial sector and residential properties. In 2007, the Baoshan District government has announced its plan to develop Songnan County into the "Little Wu Jiao Chang in Shanghai" ( ), a secondary urban centre integrating a school zone, an industrial park, a modern community zone and a business district. Driven by this aspiration, the upcoming Metro Line 18 and related infrastructure projects will provide an easy access to the project in Songnan County. Mr. Xue Ming, Managing Director of Poly (Hong Kong) said: Together with the 10 existing projects, the Group now holds 11 projects in Shanghai. The acquisition of land parcels is in line with our strategy to focus on first-tier cities and central and southwestern China, and also strengthens our foothold in the first-tier cities. Due to its proximity to Poly Villa Garden, the project to be launched for sale in January, we believe there will be a synergy between the two projects which will be favorable to the future development of the newly acquired project.