Shenzhen SZITIC Real Estate Development Co., Ltd. (SZITIC-RE), in which our company held 49% stake, has already been a branded company in Shenzhen real estate market for a considerable time. It experienced three stages of development including making products, constructing projects and developing its brand name. SZITIC-RE s business development has moved into a new stage. Since 1993, it had consecutively developed several projects namely Hujing Garden, Julongju, Trust Garden, Water Flower Garden and so forth. This company had always kept ahead of the competition in construction quality and marketing. As a result, it has received professional and social awards for its work. Water Flower Garden which has been constructed in the last 4 years has become a shining example of top grade residential real estate in Shenzhen. In 2005 this company continued to construct the third phase of the Water Flower Garden. This company optimizes the design and effectually organizes construction. It controls costs strictly and hence guarantees the quality and scheme of the marketing aspect of the project. Therefore, the selling speed and price of the third phase of Water Flower Garden has become a talking point in the Shenzhen real estate market in 2005. It has attracted intense interest within Shenzhen real estate market.

Under the support of our company, SZITIC-RE greatly improved its financial status. This happened for a number of reasons. These included SZITIC-RE cut back its liabilities drastically, kept a steady cash flow, and increased high quality land reserves. In 2005 this company increased high quality land reserves in Shenzhen, Dongguan, Kunming and other places. This demonstrated the potential to increase in its developing capacity, business scale and profitability.