About China New Town Development Company Limited

We focus on planning and developing large-scale new town projects in the suburbs of some of PRC’s largest cities, with eachcurrent project covering site area of at least six million sq.m.We are currently engaged in three new town projects: Shanghai Luodian New Town Project, Wuxi Hongshan New Town Project and Shenyang Lixiang New Town Project. As a project manager,we are involved in every site, obtaining project financing, preparing and clearing the land, relocating and resettling incumbent residents and businesses at our cost, setting up the new town infrastructure and public facilities, to building commercial properties. Each new town project cycle is estimated between 15 and 20 years.

We do not normally acquire land use rights to the land underlying our new town projects, except for land on which we intend to develop real estate properties. The local government generally retains title to the land and sell the land plots by way of public auction, tender or listing to real estate property developers. We have been receiving a portion of the proceeds from the sale of land use rights, the amount of which is authorized and approved by the relevant governmental authority. Such sale proceeds amount for the major part of our revenue.

Apart from land sales, we also develop, manage and operate commercial properties such as hotels and convention centers and also enter into agreements with the local governments to build, manage and operate public amenities, such as museums and recreational parks. Through this we are committed to enhancing the long term value of our new town projects.

In addition, we also strategically participate in real estate development projects. We believe this well complements our core new town development business model and helps diversify and smoothen our revenue stream. We currently engage in developing the Lake Malaren Silicon Valley Project, a low-density commercial headquarters villas located in Shanghai Luodian with luxury view of 2 18-holes golf courses. We also develop the Lake Malaren SOHO Project in Shanghai Luodian, Wuxi Hongqing Project in the Wuxi New Town, as well as a real estate project in Pi County of Chengdu.