Singapore, 6 November 2007 ?

The Group?s revenue increased significantly by approximately 1013% or RMB20 million from RMB2.0 million in 1QFY2007 to RMB22.3 million in 1QFY2008. This was mainly due to higher gross floor area ("GFA") of approximately 2,800 square meters ("sq m") handed over to purchasers in 1QFY2008, compared to only approximately 300 sq m of GFA handed over to purchasers in 1QFY2007.

The increase in GFA handed over to purchasers in 1QFY2008 was largely generated by sales of total GFA of approximately 2,600 sq m in Yuanbang Mingyue Gardens, which were handed over since December 2006, compared to 1QFY2007, when only approximately 300 sq m of GFA were handed over to the purchasers of Yuanbang Aviation Homeland. As at 30 September 2007, the Group had sold over 95% and 75% of the residential and commercial units respectively of Yuanbang Mingyue Gardens, while the sales of the car park lots is scheduled in first half year 2008.

The Group?s gross profit rose sharply by 1,109% or RMB11.5 million from RMB0.95 million in 1QFY2007 to RMB11.5 million in 1QFY2008 and the gross profit margin improved from 47.5% in 1QFY2007 to 51.6% in 1QFY2008. This was mainly due to the average selling prices of residential units surging by more than 30% from RMB5,850 per sq m in 1QFY2007 to RMB7,991 per sq m in 1QFY2008, in line with the general increase in the property prices in Guangzhou.

During the period under review, the Group commenced the construction of the first phase development of our Nanchang project ? Aqua Lake Grand City (

Said Mr. Chen Jianfeng (

In order to generate more profits from this project as well as to have better quality control of the construction and share the gain on the appreciation of the investment properties, the Group has entered a Memorandum of Understanding ("MOU") in acquiring 100% of the share capital of its joint venture partner, Lihui Group Co., Ltd. ("Lihui?), which in turn holds 51% of the registered capital of Xinzhongyuan (Nanchang) Real Estate Development Co., Ltd. ("Xinzhongyuan") which holds the Nanchang development site, on 28 August 2007. The Group is in the process of finalizing the sales and purchase agreement and aims to sign the definitive agreement soon. 绿湖豪城). The Group launched the first batch of sale on 1 October 2007 which received overwhelming response from buyers with over 84.9% of the units pre-sold at an average selling price of RMB5,300 per sq m, which is 33% higher than its original target sales price. 陈建锋), Executive Chairman and founder of the Group, "We aim to promote Aqua Lake Grand City as a premium property for affluent customers, located in a prime location with luxurious design. This launch is an important milestone for Yuanbang Property and marks the beginning of our success in Nanchang city. This also proves that there is strong demand for premium quality property in Nanchang city. We look forward to the launch of our second batch of sales of the residential units on 10 November 2007."

Outlook and Future Plans

The strong economic growth of the People?s Republic of China ("PRC") has led to rapid urbanisation, rising disposable income and living standards of the local people. Coupled with government policies that encourage private property ownership in recent years, the demand for quality property is expected to continue to grow.

Although the PRC government has implemented a series of economic measures to cool down the growth of the property market, the Directors of the Company currently believe that such measures can optimize the structure of the property market and help ensure the property market grows in a healthy environment in the long run.