About SHANGHAI IND H Company

Shanghai Industrial Holdings Limited (“Shanghai Real Holdings” for short, Hong Kong Stock Exchange stock code “363”) was established in 1996 and listed on the Hong Kong Stock Exchange on May 30 of the same year. Shanghai Real Estate Holdings also traded on the New York Stock Exchange under the US Depositary Receipt Level 1 plan. Shangshi Holdings is currently a constituent stock of the Morgan Stanley Capital International (MSCI) Global China Index, the Morgan Stanley Capital International China Index, and the Hang Seng Composite Index. It is also an eligible Hong Kong Stock Connect stock for the Shanghai-Hong Kong Stock Connect. As of June 30, 2015, the total assets of Shangshi Holdings reached HK$133.6 billion. Shanghai Industrial (Group) Co., Ltd. (“Shangshi Group” for short), the controlling shareholder of Shangshi Holdings, is a window company established by the Shanghai Municipal People's Government in 1981 in Hong Kong, China. It is currently the largest comprehensive enterprise group overseas by the Shanghai Municipal People's Government, and currently holds about 57% of the shares of Shangshi Holdings. Since its listing, Shangshi Holdings, as the flagship enterprise of the Shangshi Group, has, on the one hand, received full support from the parent company Shangshi Group and obtained the best investment opportunities in Shanghai, reflecting Shangshi Holdings' advantages in Shanghai; on the other hand, it has also obtained high-quality assets in the core business market through mergers and acquisitions. Currently, Shangshi Holdings is a red chip company focusing on the three core businesses of infrastructure, real estate, and consumer goods, and strives to create higher value for shareholders. The scope of infrastructure includes toll roads, water services, and operations in the New Frontier. (1) Toll roads: Currently, Shangshi Holdings wholly owns three major toll roads in Shanghai, including the Beijing-Shanghai Expressway (Shanghai section), the Shanghai-Kunming Expressway (Shanghai section), and the Shanghai-Chongqing Expressway (Shanghai section), which are the main entry and exit routes in northwest, southwest, and west of Shanghai, respectively. The total length of the three toll roads is about 120 kilometers, and toll revenue accounts for more than 40% of Shanghai's total toll revenue, providing stable income and recurring cash flow for Shangshi Holdings. (2) Water facilities: Shangshi Holdings currently has two water business platforms, namely Shangshi Environment (BHK SGX), which is listed in Singapore, and Zhonghuan Water, a domestic water company. Currently, the total daily processing volume of the water business has exceeded 13.1 million tons. (3) New frontier business: Through investment in the new frontier business, Shangshi Holdings will gradually increase the asset size of clean energy sectors such as photovoltaic power generation, and create new profit growth points. The real estate business covers property development and property investment, and has the characteristics of both residential and commercial properties. Its current assets include: (1) Shanghai Industrial Urban Development Group Co., Ltd. (“Shangshi Chengkai”, 563 HKSE), listed in Hong Kong, China, and (2) Shanghai Industrial Development Co., Ltd. (“Shangshi Development”, 600748 SSE), which has high-quality land resources in Shanghai, the Eastern Seas, Yangtze River, Yangtze River Delta, Bohai Rim, etc., as well as second-tier and third-tier cities in the Midwest. With the advantages of lower land costs and excellent management and operation teams, the real estate business of Shangshi Holdings has shown excellent potential for added value and profit. In addition to speeding up the development of real estate projects, the company is also seeking opportunities to revitalize the rights and interests of existing projects, release the actual value of projects, and lay out diversified development in related business fields to create a combination of real estate development with intelligent services and smart cities. The consumer goods business includes two companies -- Nanyang Tobacco and Yongfa Printing -- both of which are industry leaders, have a long history, and excellent brands. Their business scope includes tobacco, printing, and paper products. (1) Nanyang Tobacco mainly produces and sells various brands of cigarettes. Its production plant is located in Hong Kong, China. In addition to China, its main market includes overseas markets; (2) Yongfa Printing is one of the largest printing companies with the longest history in Hong Kong, China, and is mainly engaged in paper packaging printing, supply of paper packaging materials, and other related supporting businesses. Yongfa Printing is headquartered in Hong Kong, China. Its business is distributed in Hong Kong, China and various provinces in mainland China. It focuses on developing fine printing services such as cigarette packaging, alcohol packaging, and pharmaceutical packaging. The consumer goods business has always provided stable profits and cash flow for Shangshi Holdings to support the long-term development of the company's business.