About EB GRAND CHINA Company

We own, rent and manage properties in Chengdu, Sichuan Province, and also own and rent a property in Kunming, Yunnan Province. As of the last practicable date, our property portfolio includes three commercial properties (i.e. Everbright Financial Center, part of Everbright International Building and part of the property 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 that these properties have strategic value to generate stable and recurring rental income, so we selectively retained ownership of these properties. As of the last feasibility date, the total floor area of our properties held for investment was approximately 89,770.5 square meters, the total floor area for private office use was about 977.8 square meters, and the total floor area held for sale was approximately 1,152.5 square meters. According to the property valuer's opinion, as of June 30, 2017, the market value of our investment properties was RMB 864.3 million. The average tenancy rates of our investment properties for the three years ending December 31, 2014, 2015 and 2016, and for the six months ending June 30, 2017, were approximately 80.9%, 82.0%, 77.7% and 77.1%, respectively. As of the last available date, we have leased a total floor area of about 70,239.4 square meters to tenants, accounting for 78.2% of the total floor space of our investment properties. 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 for the Qingyang District of Chengdu City and the Sichuan Provincial Government. Everbright Financial Center and Mingchang Building also have Bohai Bank Chengdu Branch, China Everbright Bank Kunming Branch, and Everbright Securities. We maintain stable relationships with most of our tenants. As of the last available date, we had a total of 30 tenants, 22 of whom had been in a tenancy relationship with us for over five 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. 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. For the three years ending December 31, 2016, and the six months ending June 30, 2017, we generated revenue of RMB 57.1 million, RMB 59.4 million, RMB 55.9 million and RMB 32.7 million 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 years ended December 31, 2014, 2015 and 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.