About SHANGHAI IND H Company

Shanghai Industrial Holdings Co., Ltd. (“Shanghai Stock Exchange” for short, Hong Kong Stock Exchange stock code “363") was established in 1996 and listed on the Hong Kong Stock Exchange on May 30 of the same year. At the same time, Shanghai Industrial Holdings also traded on the New York Stock Exchange under the US Depositary Receipt Level 1 Program. Shanghai Real Holdings is currently a constituent stock of the Morgan Stanley Capital International (MSCI) Global China Index, the Morgan Stanley Capital International China Index, and the Hang Seng Composite Index. It is also an eligible Hong Kong Stock Connect stock of the Shanghai-Hong Kong Stock Connect. As of June 30, 2015, the total assets of Shangshi Holdings reached HK$133.6 billion. Shanghai Industrial (Group) Co., Ltd. (“Shangshi Group” for short), the controlling shareholder of Shanghai Shi Holdings, is a window company established by the Shanghai Municipal People's Government in 1981 in Hong Kong, China. It is currently the largest comprehensive enterprise group of the Shanghai Municipal People's Government overseas. Currently, it holds about 57% of the shares held by the Shanghai Municipal People's Government. Since its listing, Shangshi Holdings has been the flagship enterprise of the Shanghai Shi Group. On the one hand, it has received full support from its parent company, Shangshi Group, to obtain the best investment opportunities in Shanghai, reflecting the Shanghai advantages of Shanghai Holdings; on the other hand, it has also obtained high-quality assets in the core business market through mergers and acquisitions. Currently, Shangshi Holdings is a red chip company that mainly focuses on the three core businesses of infrastructure, real estate and consumer goods, and is committed to creating higher value for shareholders. The scope of infrastructure includes toll roads, water services, and new frontier operations. (1) Toll roads: Shanghai Shi Holdings currently owns three major toll roads in Shanghai, including the Beijing-Shanghai Expressway (Shanghai section), the Shanghai-Kunming Expressway (Shanghai section), and the Shanghai-Chongqing Expressway (Shanghai section), which are the main entrances and exits in the northwest, southwest and west directions of Shanghai, respectively. The total length of the three toll roads is about 120 kilometers, and toll revenue accounts for more than 40% of Shanghai's total toll revenue, providing stable income and recurring cash flow for Shanghai Shishi Holdings. (2) Water facilities: Shanghai Shi Holdings currently has two water business platforms, namely Shangshi Environment (BHK SGX), which is listed in Singapore, and Zhonghuan Water, a domestic water company. At present, the total daily processing volume of the water business has exceeded 13.1 million tons. (3) New Frontier Business: Through investment in the new frontier business, Shangshi Holdings will gradually increase the asset scale of clean energy sectors such as photovoltaic power generation and create new profit growth points. The real estate business covers property development and property investment, and has the characteristics of both residential and commercial properties. Its current assets include: (1) Shanghai Industrial Urban Development Group Co., Ltd. (“Shangshi Chengkai”, 563 HKSE), which is listed in Hong Kong, China, and (2) Shanghai Industrial Development Co., Ltd. (“Shangshi Development”, 600748 SSE), which has high-quality land resources in Shanghai, the eastern coast, along the Yangtze River, the Yangtze River Delta, the Bohai Rim, etc., as well as in second-tier and third-tier cities in the central and western regions. With the advantages of lower land costs and excellent management and operation teams, the real estate business of Shangshi Holdings has shown excellent value-added and profit potential. In addition to speeding up the development of real estate projects, the company is also looking for opportunities to revitalize the interests of existing projects, release the actual value of the project, and lay out diversified development in related business fields to create a combination of real estate development with intelligent services and smart cities. The consumer goods business includes two companies -- Nanyang Tobacco and Yongfa Printing -- which are industry leaders with a long history and outstanding brands. The scope of business includes tobacco, printing and paper products. (1) Nanyang Tobacco mainly produces and sells a variety of different brands of cigarettes. Its production plant is located in Hong Kong, China, and its main market includes overseas markets in addition to China; (2) Yongfa Printing is one of the largest printing enterprises with the longest history in Hong Kong, China. It is mainly engaged in paper packaging printing, supply of paper packaging materials and other related supporting businesses. Yongfa Printing is headquartered in Hong Kong, China. Its business is distributed in Hong Kong, China and various provinces in mainland China, focusing on developing fine printing services such as cigarette packaging, alcohol packaging, and pharmaceutical packaging. The consumer goods business has always provided stable profits and cash flow to Shangshi Holdings to support the long-term development of the company's business.