The board of directors of the Zhi Cheng Holdings Limited announced that the company has obtained approval from Economy, Trade and Information Commission of Shenzhen Municipality in January 2014 for the registration of a company, namely Shenzhen City Jia Ying Financial Leasing Company Limited in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen in relation to the provision of financial leasing services. Shenzhen Jia Ying will be established as a directly wholly-owned subsidiary of the company with registered capital of USD 10 million. With the various policy incentives in the Zone, Shenzhen Jia Ying aims to provide more competitive and lower cost financial leasing services to PRC customers.

In light of the above, the Directors consider that the establishment of the financial leasing company in the Zone will enable the company to diversify its business into the financial services sector and will also introduce the group's business to the new market participants in the Zone.