Sino-Ocean Main Businesses

PROPERTY DEVELOPMENT

Occupying an irreplaceable position in the contribution to the Group's total revenue, property development remains the essential driving force for Sino-Ocean Land's growth.

Our development properties include villas, mid-to-high end residences, and affordable housing. We have in different cities developed projects with special features such as Ocean Honored Chateau, Ocean Prospect, and Ocean Great Harmony with a view to satisfying customers' different housing needs through architecture with character, great views and refined details. Ocean Great Harmony (Beijing), Ocean Manor (Beijing), Ocean City (Zhongshan) and Ocean Worldview (Dalian), though difference in characteristics, all achieved remarkable sales result. This is a seal of approval for Sino-Ocean's mode of development and the services we provide.

We will continue to base the development of projects on the analysis of customers' needs and product research with a view to growing at a fast but steady pace. We will consider the flow from positioning, planning, research and construction to raise the quality of our mid-to-high end products to a new high. Replicating well-developed products will enable us to improve efficiency to satisfy customers' demands and create better profits for our products. By strengthening our position in the Beijing and the Pan-Bohai Rim markets, and pushing further into the Northeast Region, the Yangtze River Delta and along Yangtze River, and the Pan-Pearl River Pelta Region we are on track for a balanced progression towards a nation-wide location planning.

DEVELOPMENT AND OPERATION OF COMMERCIAL PROPERTIES

As an important vehicle for real estate finance, commercial property development and operation is an essential component in Sino-Ocean Land's three core businesses. It has thus been determined by Sino-Ocean Land to be one of its most important and long-term businesses.

Development of commercial properties

"The natural progression of property development will eventually lead to the development of commercial properties. As land available for development becomes scarcer in Beijing and also throughout the country, the future of China property development depends on commercial properties. As this sector in China is still in its initial stage there is vast room for development. Learning from experience and models overseas will also help us go a long way."

— LI Ming, CEO of Sino-Ocean Land

Investment Properties

It has been Sino-Ocean Land's strategic plan to go into the market of commercial property and to date we are running a successful operation of Ocean Plaza (Beijing), Ocean International Center (Beijing) and Ocean Office Park (Beijing), enjoying acclaim from the market. Commendations are also received from cooperating companies and customers for INDIGO (Beijing) and Dacisi Project (Chengdu), which jointly operated with world-renowned Swire Properties. Now more companies, such as HSBC Bank, has chosen Sino-Ocean Land as their business partners in building a promising future for China's commercial property market.

While property development remains the source of our staple income we will continue to increase our portfolio of investment properties in accordance with our capabilities and resources. Apart from offices and retail properties, we will look out for opportunities for developing commercial complexes in the CBD of first and second-tier cities. Leveraging on real estate finance we aim to develop and operate more high quality commercial properties to increase their ratio of profit contribution to the Company, enhance capital growth and enlarge our market share in this sector.

REAL ESTATE FINANCE

Real estate finance is regarded as the biggest opportunity in the property industry and is one of the three core businesses that Sino-Ocean Land has been focusing on. The Ocean Fund, an important finance platform under the umbrella of Sino-Ocean Land was set up. The fund's main business is in equity investment, particularly in real estate project equity finance and the management of the investment. It covers Beijing and the Pan-Bohai region, the Northeast region, the Yangtze River Delta and along Yangze River and the Pearl River Delta, signifying that the Company's real estate finance business has taken a major step forward. From now we will use every opportunity to nurture and cultivate our real estate finance business, taking advantage of our development and operating capabilities to establish a structured and vertically integrated finance model and build a new business and asset system. We expect to see real estate finance effectively propelling a fast and steady growth of the Company's businesses and assets.

STRATEGIC SUPPLEMENTARY SERVICES

While property development, property investment and real estate finance are the backbone of the Company, we also consider the overall business structure and viable supplementary businesses. As our core businesses remain robust, our strategic supplementary services have taken off at a tremendous pace in the past five years. To date, Sino-Ocean Land has numerous subsidiaries engaging in property development, construction, renovation and decoration, property investment, property management and hotel management. We will continue to grow the type and number of subsidiaries to broaden our income base and asset size. Through this innovative business model we are moving towards a structure with the three core businesses as the spearhead supported by a diversified portfolio of supplementary services and becoming a leading real estate group in China.