On 26 January 2021, the Purchaser, a wholly-owned subsidiary of theHopson Development Holdings Limited, became the successful bidder for the land use rights in respect of the Land at the total consideration of RMB4.657 billion through the Bidding. The Group intends to develop the Land into residential buildings. The Board hereby announced that on 26 January 2021, DCBBETDA informed the Purchaser that it had succeeded in bidding for the land use rights in respect of the Land. Set out below are the principal terms of the Acquisition and other relevant information. The purchase price for the Acquisition is RMB4.657 billion payable in cash, which represents the bid price submitted by the Purchaser through the Bidding. The Purchaser has already paid a deposit of RMB 0.840 billion. The Purchase Price was arrived at as a result of successful biddings of the Land by the Purchaser at the Bidding which was conducted in accordance with the relevant PRC laws and regulations. The Purchaser determined the bid price for the Land after taking into account, among other things (i) the base price of the Bidding set by DCBBETDA, being RMB4.2 billion; (ii) the current property market conditions of the areas adjacent to the Land; and (iii) the location and development potential of the Land. No independent valuation has been taken as reference for setting the bid price. The Land comprises three parcels of lands located at Shanty Town, Nanjiao Farm, Jiugong Town, Daxing District, Beijing. The Group plans to develop the Land into residential buildings with an aggregate gross floor area of approximately 133,066 sq.m. As at the Announcement Date, it is expected that the construction work will commence in or about June 2021 and the pre-sale will commence in or about August 2021. The Land is located in a prime location on the outer side of the South Fifth Ring and is adjacent to the subway station and in close proximity to the largest wetland park in Beijing, the Nanhaizi Park. Demands for residential properties in this area and the nearby locations have been consistently high. The Company is of the view that the Land is of great potential for development as residential properties and that the Acquisition represents a good investment opportunity which will enrich the Group's landbank and property projects portfolio and bring forth commercial benefits to the Group. Having taken into account the above reasons and benefits, the Directors (including all the independent non-executive Directors) consider that the terms of the Acquisition are fair and reasonable and in the interests of the Company and the Shareholders as a whole.