重庆聚信房地产开发(集团)有限公司

1TheStockExchangeofHongKongLimitedtakesnoresponsibilityforthecontentsofthisannouncement,makesnorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimsanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.CCLANDHOLDINGSLIMITED(incorporatedinBermudawithlimitedliability)(StockCode:1224)DISCLOSEABLETRANSACTIONACQUISITIONOFTHEENTIREEQUITYINTERESTINCHONGQINGJUXINPROPERTYDEVELOPMENT(GROUP)COMPANYLIMITEDOn5September2007,GrandFortuneenteredintotheAgreementwiththeVendors,YujiangYazhuandZhongyuPropertytoacquiretheentireequityinterestintheTargetCompanyfromtheVendorsatanaggregateconsiderationofRMB660,000,000subjecttothetermsandconditionsoftheAgreement.Astheapplicablepercentageratiosexceed5%butarebelow25%,theAcquisitionconstitutesadiscloseabletransactionoftheCompanyunderChapter14oftheListingRules.AcircularcontainingfurtherdetailsrelatingtotheAcquisitionandotherinformationasrequiredundertheListingRuleswillbedespatchedtotheshareholdersoftheCompanyassoonaspracticable.THEAGREEMENTDate5September2007PartiesVendors:YinxiangMotor,YujiangYazhu,Mr.Cao,Mr.Liu,Ms.Zhou,Ms.SYYangandMs.NYYangGuarantorforVendors:YujiangYazhu2Purchaser:GrandFortuneGuarantorforPurchaser:ZhongyuPropertyTothebestoftheDirectors’knowledge,informationandbeliefhavingmadeallreasonableenquiry,theVendorsandtheultimatebeneficialownersofYinxiangMotorandYujiangYazhuarethirdpartiesindependentoftheCompanyanditsconnectedpersons(asdefinedintheListingRules).AssettobeacquiredSubjecttothetermsandconditionsoftheAgreement,GrandFortunehasagreedtoacquire100percent.oftheequityinterestintheTargetCompany.ConsiderationTheconsiderationamountstoRMB660,000,000(equivalenttoapproximatelyHK$679,800,000),ofwhichRMB51,363,000(equivalenttoapproximatelyHK$52,903,890)representingtheoutstandinglandpremiumduetotheLandResourcesAdministrationBureaubytheTargetCompanyshallbedeductedfromtheconsideration.TheconsiderationshallbepayablebyGrandFortuneinthefollowingmanner:(1)adepositinthesumofRMB100,000,000(equivalenttoapproximatelyHK$103,000,000)shallbepaidbyGrandFortunetotheVendorsontheworkingdayafterGrandFortunehasissuedawrittenconfirmationastowhethertheAcquisitionshallbeproceededwithuponcompletionofaduediligenceinvestigationontheTargetCompany;(2)thebalanceoftheconsiderationshallbetemporarilyplacedbyGrandFortuneinitsforeigncurrencyaccountinthePRCwithin40workingdaysafterpaymentofthedeposit.TheforeigncurrencyaccountshallbeoperatedjointlybytheVendorsandGrandFortune;and(3)RMB508,637,000(equivalenttoapproximatelyHK$523,896,110),beingtheremainingbalanceoftheconsiderationafterdeductionoftheoutstandinglandpremium,shallbepaidbyGrandFortunetotheVendorswithin2workingdaysafterthetransferoftheentireequityinterestintheTargetCompanybytheVendorstoGrandFortune.Theconsiderationwasdeterminedfollowingarm’slengthnegotiationsbetweenallpartiestotheAgreement.Inarrivingattheconsideration,regardwasgiventothepropertydevelopmentrightoveratotallandareaof209,294squaremetreswithanetareaof146,825squaremetresforbuildingpurposes,yieldingabuildablegrossfloorareaofapproximately338,806squaremetres,heldbytheTargetCompanyundertheLand-useRightContract.TheconsiderationrepresentsapproximatelyRMB2.997millionpermuoflanduseright.3GuaranteeYujiangYazhuandZhongyuPropertyenteredintotheAgreementtoguaranteetheperformancebytheVendorsandGrandFortuneoftheirobligationsundertheAgreementrespectively.CompletionCompletionoftheAcquisitionshalltakeplaceonthedateofthegrantofthenewbusinesslicencebytherelevantgovernmentauthorities.INFORMATIONONTHETARGETCOMPANYTheTargetCompanyisacompanyincorporatedinthePRC.ThetotalequityinterestintheTargetCompanyisownedasto32%byYinxiangMotor,asto23%byYujiangYazhu,asto26%byMr.Cao,asto6%byMr.Liu,asto2.2%byMs.Zhou,asto1.8%byMs.SYYangandasto9%byMs.NYYangasatthedatehereof.TheTargetCompanyisprincipallyengagedinpropertydevelopmentinthePRC.Itcurrentlyownsthedevelopmentrightfor146,825squaremetresoflanduserightlocatedatLongtaNo.3andLongtaNo.4She,LongxiStreetZone,YubeiDistrict,ChongqingacquiredundertheLand-useRightContract.TheTargetCompanyhasalreadybeenissuedLand-useRightsCertificatesinrespectofapproximately101,000squaremetresoflandandtherelevantgovernmentauthorityisintheprocessofissuingLand-useRightsCertificatefortheremainderofthesitearea.Asatthedatehereof,thelandisvacant.BasedontheauditedaccountsoftheTargetCompanyforthefinancialyearended31December2006,theauditedconsolidatednettangibleassetvalueoftheTargetCompanywasapproximatelyRMB134,439,000(equivalenttoapproximatelyHK$138,472,170).TheauditedresultsoftheTargetCompanyforthetwoyearsended31December2006basedonthegenerallyacceptedaccountingprinciplesinthePRCaresetoutbelow:-Forthefinancialyearended31December20052006RMB‘000RMB‘000Netprofit(loss)beforetaxation21,45715,696Netprofit(loss)aftertaxation16,99610,648REASONSFORANDBENEFITSOFTHEACQUISITIONTheAcquisitionenablestheGrouptoincreaseitslandbankandtodiversifyitssourceofincomebyactivelyparticipatinginthelanddevelopmentbusiness.TheAcquisitionisconsistentwiththebusinessstrategyo