According to the relevant agreements on Chang"an Ave entered by Aoyuan last year, Aoyuan now exercises its right on exchangeable bonds, of which total consideration of RMB 296 million had been fully paid up, on 27 September 2010. After the exercise of the convertible bonds, Aoyuan will increase its stake in Century Profit to 52.69% without paying any additional cash. Aoyuan, therefore, indirectly holds 51% equity interest in Chang"an Ave project. Enjoying an unrivalled location in Chang"an Street, Chang"an Ave is an important and high-quality project of Aoyuan.

In addition, pursuant to Loan Agreements relating to Beijing project signed last year, the total amount of approximately HK$875million (an aggregate amount of principal of RMB700,000,000 together with interests accrued under the Loan Agreements) was fully repaid to Aoyuan in a lump sum on 22 September 2010. The cash inflow from loan repayment enables Aoyuan to maintain at a stable and healthy financial situation.

Mr. Guo Zi Wen, Chairman and CEO of Aoyuan, said, "The Chinese government has launched austerity measures on property market, however, the demand of high-quality housing is still increasing that in line with the rapid development of the economy. We expect only the competitive enterprises will survive in China"s property market due to these measures, and a healthy real estate market will be resulted. Under this circumstance, we strategically reserve ample cash flow and high-quality projects to maintain solid foundation for the Group"s future development."