About EB GRAND CHINA Company

We own, rent and manage a property in Chengdu, Sichuan, and also own and rent a property in Kunming, Yunnan. As of the last practical date, our property portfolio includes three commercial properties (namely, Everbright Financial Center, part of Everbright International Building, and part of Ming Cheong Building, with a total construction area of about 89,506.5 square meters) and residential properties (that is, part of Du Fu Garden, with a total construction area of about 2,394.3 square meters). With the exception of Ming Cheong Building, we developed these properties in the late 1990s and early 2000s. We believe these properties have strategic value to generate stable and recurring rental income, so we selectively retain ownership of them. As of the last viable date, the total floor area of our properties for investment is about 89,770.5 square meters, the total floor area for private use is about 977.8 square meters, and the total floor area for sale is about 1,152.5 square meters. According to the property evaluator's opinion, as of June 30, 2017, the market value of our investment property was RMB 864.3 million. The average occupancy rates for our investment properties were approximately 80.9%, 82.0%, 77.7% and 77.1%, respectively, for the three years ended 2014, 2015 and 31 December 2016, and the six months ended June 30, 2017. As of the last practical date, we have leased a total floor area of approximately 70,239.4 square meters to tenants, accounting for 78.2% of the total floor area of our investment property. We have a stable tenant base, including banks and financial institutions, government agencies, and other businesses. Everbright Financial Center and Everbright International Building are public centers in the Qingyang district of Chengdu and the Sichuan provincial government. Everbright Financial Center and Mingchang Tower also have Bohai Bank Chengdu Branch, China Everbright Bank Kunming Branch and Everbright Securities. We maintain stable relationships with most tenants. As of the last viable date, we had a total of 30 tenants, 22 of whom had a tenancy relationship with us for over 5 years. To maximize the value of our properties and keep our properties in good condition, we have a property management team to manage Everbright Financial Center and Everbright International Tower. In this regard, we collect property management fees from tenants and other owners of Everbright International Building to provide general property management services, value-added property management services and parking management services. We generated revenue of RMB 57.1 million, RMB 59.4 million, RMB 55.9 million and RMB 32.7 million for the three years ended December 31, 2016 and the six months ended June 30, 2017, respectively. Our profits for the same period were RMB 39.7 million, RMB 34.3 million, RMB 31.5 million and RMB 9.2 million respectively. For the year ended December 31, 2016, and for the six months ended June 30, 2017, our investment property valuation income was RMB 35.9 million, RMB 18.8 million, RMB 22.7 million and RMB 6.7 million, respectively.