(上海浦华房地产开发有限公司)

HongKongExchangesandClearingLimitedandTheStockExchangeofHongKongLimitedtakenoresponsibilityforthecontentsofthisannouncement,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.SHANGHAIFORTELANDCO.,LTD.*(asino-foreignjointstockcompanyincorporatedinthePeople’sRepublicofChinawithlimitedliability)(StockCode:02337)ANNOUNCEMENTAMENDMENTSTOTHEARTICLESOFASSOCIATIONANDAPPOINTMENTOFEXECUTIVEDIRECTORAMENDMENTSTOTHEARTICLESOFASSOCIATIONTheBoardproposestomakecertainamendmentstotheArticlesofAssociationtoreflect:(i)theproposedtransferbyFosunPharmaceuticalDevelopmenttoFosunGroupof25,300,000DomesticShares,representingapproximately1%oftheissuedsharecapitaloftheCompany;and(ii)theappointmentofanadditionalDirectortotheBoard.APPOINTMENTOFEXECUTIVEDIRECTORTheBoardproposestoappointMr.ZhangHua()asanexecutiveDirectorwitheffectfromthedateofapprovaloftheproposedamendmenttotheArticlesofAssociationinrespectofthetotalnumberofmembersoftheBoardbytheMinistryofCommerceofthePRCoritsauthorizedbranches.GENERALTheproposedamendmentstotheArticlesofAssociationaresubjecttotheapprovaloftheShareholdersbywayofaspecialresolutionattheExtraordinaryGeneralMeetingandtheproposedappointmentofMr.ZhangHua()asanexecutiveDirectorissubjecttotheapprovaloftheShareholdersbywayofanordinaryresolutionattheExtraordinaryGeneralMeeting.AcircularcontainingdetailsoftheproposedamendmentstotheArticlesofAssociationandtheproposedappointmentofMr.ZhangHua()asanexecutiveDirector,togetherwiththeNoticeoftheExtraordinaryGeneralMeetingandtheformofproxy,willbedispatchedtotheShareholdersassoonaspracticable.—1—AMENDMENTSTOTHEARTICLESOFASSOCIATIONTheBoardproposestomakecertainamendmentstotheArticlesofAssociationtoreflect:(i)theproposedtransferbyFosunPharmaceuticalDevelopmenttoFosunGroupof25,300,000DomesticShares,representingapproximately1%oftheissuedsharecapitaloftheCompany;and(ii)theappointmentofanadditionalDirectortotheBoard.TheproposedamendmentstotheArticlesofAssociationaresetoutbelow:1.Article21oftheArticlesofAssociationwillbeamendedbyinsertingthefollowingparagraphsattheendofArticle21:AftertheapprovalbytheMinistryofCommerceofthePRCoritsauthorizedbranches,ShanghaiFosunPharmaceuticalDevelopmentCompanyLimitedwilltransfer25,300,000DomesticShareswithaparvalueofRMB0.20eachtoShanghaiFosunHighTechnology(Group)Co.,Ltd.Uponthecompletionoftheabovetransfer,theshareholdingstructureisasfollows:NameofShareholdersNumberofShares(Shares)PercentageoftheIssuedShareCapital(%)TotalNumberofDomesticShareIncluding:1,473,768,06558.27ShanghaiFosunHighTechnology(Group)Co.,Ltd.1,217,046,15048.12ShanghaiFosunPharmaceuticalDevelopmentCompanyLimited241,917,6159.56Dahua(Group)CompanyLimited7,402,1500.29DazhongTransportation(Group)CompanyLimited7,402,1500.29TotalNumberofHShares1,055,538,12241.73Total:2,529,306,187100.002.ThenumberofmembersoftheBoardwillbeincreasedfromnine(9)toten(10)underArticle94oftheArticlesofAssociation.—2—APPOINTMENTOFEXECUTIVEDIRECTORTheBoardproposestoappointMr.ZhangHua()asanexecutiveDirectorwitheffectfromthedateofapprovaloftheproposedamendmenttotheArticlesofAssociationinrespectofthetotalnumberofmembersoftheBoardbytheMinistryofCommerceofthePRCoritsauthorizedbranches.BiographicalDetailsMr.ZhangHua(),aged44,isthePresidentoftheCompanysinceMay2009andisresponsibleforthedailybusinessmanagementandoperationoftheGroup.Mr.ZhangjoinedtheGroupinMarch1999.DuringtheyearswiththeGroup,heheldvariouspositions,whichincluded,thedeputygeneralmanagerofShanghaiPuhuaRealEstateDevelopmentCo.,Ltd.(),thegeneralmanagerofShanghaiForteZhibaoRealEstateDevelopmentCo.,Ltd.()andthegeneralmanagerofNorthernShanghaiRegionoftheCompany.PriortojoiningtheGroup,heworkedwithShanghaiShanglianRealEstateCo.,Ltd.()fromOctober1992toMarch1999.FromJuly1986toOctober1992,heworkedwithProductionandConstructionDepartmentofShanghaiNo.2CommercialBureau().Mr.ZhangreceivedabachelordegreeinmanagementfromTonggiUniversityin2003.HeisacertifiedRealEstateAppraiserinthePRC.Mr.Zhanghasnotheldanydirectorshipinanylistedcompaniesinthepast3years.Mr.Zhanghasnorelationshipwithanydirectors,seniormanagementorsubstantialorcontrollingshareholder(s)oftheCompany.Asatthedateofthisannouncement,Mr.ZhangdidnothaveanyinterestinthesharesoftheCompanywithinthemeaningofPartXVoftheSecuritiesandFuturesOrdinance(Chapter571oftheLawsofHongKong).AdirectorservicecontractwillbeenteredintobetweentheCompanyandMr.ZhangforatermcommencingfromtheeffectivedateofhisappointmentandendingonthedateofexpirationofthetermofthecurrentsessionoftheBoard,namely,June2011,subjecttoretirementbyrotationandre-electionatageneralmeetingoftheCompanyinaccordancewiththeArticlesofAssociation.TheremunerationpackageofMr.ZhangasanexecutiveDirectorwillbedeterminedbytheshareholdersatageneralmeetingpursuanttotheArticlesofAssociationandwithreferencetotherecommendationprovidedbytheremunerationcommitteeoftheBoardinaccordancewithitstermsofreference,bytakingintoaccount,amongothermatters,hisdutiesandre