Hong Da is one of the joint venture parties to the Group"s Beijing project. On 28 July 2011, Zhen Fu Limited (“Zhen Fu”; a wholly-owned subsidiary of the Company) as purchaser and the Original Lenders as sellers entered into the Transfer Documents, pursuant to which Zhen Fu acquired absolutely all the rights, interests and obligations relating to the Original Lenders" respective participations in the Finance Documents. Due to Hong Da"s default, the Security Agent appointed the Receivers to enforce the security, which was the shares Hong Da held in Century Profit, the holding company of the Beijing joint venture, under the Finance Documents. Hong Da applied to the High Court of Hong Kong for an injunction regarding the enforcement and its application was refused by the Court. Following the refusal of the application, the High Court of Hong Kong and the Court of Appeal further dismissed Hong Da"s applications for leave to appeal against the judgment of the application.

On 18 January 2012, Hong Da paid a sum of HKD351,906,439, being the total sum due to Zhen Fu payable by Hong Da. Accordingly, the obligations of Hong Da under the Credit Facility Agreement and the Finance Documents have been discharged.