Beijing Junzhuang Project in Mentougou District

Mentougou District is located in the western part of Beijing and is 98.5% covered by mountains. The mountains in the district are connected to Xiangshan (香山), a renowned national tourism destination, comprising an integral part of the Western Beijing ecological conservation area. Located in the eastern part of the Mentougou District and approximately 30 km. from Beijing city centre, Junzhuang Town has a total site area of 34 sq. km. and is a strategically important part of the Mentougou District’s industrial layout.

• In accordance with different long-term development positioning, the Project is divided into two zones, namely, the Eastern Zone and the Western Zone. The site area currently under planning is approximately 414 hectares (4.14 million sqm.), among which the site area of the Eastern Zone is approximately 270 hectares (2.7 million sqm.), and is envisaged to develop into an integrated eco-tourism zone featuring a wide mix of elements such as leisure and resort, eco-conservancy and healthcare, parent-child experience and education, as well as industrial park for the creative industry; the Western Zone has site area of approximately 144 hectares (1.44 million sqm.) and is planned for shanty town reformation, primary land and subsequent developments.

• The Group and Beijing Vanke Enterprises Co. Ltd. has jointly established a project company (we are entitled to 50% equity share), which shall be granted exclusive right to develop and operate the Eastern Zone of the Project. The project company shall succeed contracting the agricultural land (農用地) from the relevant village community economic cooperatives. In addition, using a model known as the “Village-Corporate Collaboration” with the co-ops, the project company shall also develop and operate the construction land collectively owned (集體建設用地) by the relevant village community economic cooperatives.