京富城房地产开发有限公司

-1-TheStockExchangeofHongKongLimitedtakesnoresponsibilityforthecontentsofthisannouncement,makesnorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimsanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthisannouncement.(ajointstocklimitedcompanyincorporatedinthePeople’sRepublicofChinawithlimitedliability)(StockCode:2777)CONNECTEDTRANSACTIONTheBoardannouncesthaton21November2008,awhollyownedsubsidiaryoftheCompanyhasenteredintoasaleagreementwitheachofMr.LiandMr.ZhangforthesaleoftworesidentialpropertyunitsatanaggregateconsiderationofRMB82,740,680.AsMr.LiandMr.ZhangareconnectedpersonsoftheCompany,thetransactioncontemplatedundertheAgreementsconstitutedaconnectedtransactionfortheCompanyundertheListingRules.SincethepercentageratiosinvolvedasdefinedinRule14A.10oftheListingRulesforthetransactionwithMr.LiandMr.Zhangaremorethan0.1%butlessthan2.5%,theconnectedtransactionisonlysubjecttoreportingandannouncementrequirementssetoutinListingRulesChapter14Aandexemptfromtheindependentshareholders’approvalrequirements.TheFirstAgreementDate:21November2008Vendor:BeijingR&FCity,awhollyownedsubsidiaryoftheCompany,whichprincipalbusinessispropertydevelopmentPurchaser:Mr.LiPropertysold:UnitE3,PhaseIVofBeijingR&FCityGuangqumenwaiMainStreet,ChaoyangDistrict,Beijing,PRCConsideration:RMB40,468,120Paymentterms:Fullpaymentnotlaterthan30December2008ThereisnoprevioustransactionbetweentheCompanyandMr.Lioranyofhisassociateswithina12-monthperiodorisotherwiserelatedthatneedtobeaggregatedwiththecurrenttransactioninaccordancewithRule14A.25oftheListingRules.-2-TheSecondAgreementDate:21November2008Vendor:BeijingR&FCityPurchaser:Mr.ZhangPropertysold:UnitE6,PhaseIVofBeijingR&FCityGuangqumenwaiMainStreet,ChaoyangDistrict,Beijing,PRCConsideration:RMB42,272,560Paymentterms:Fullpaymentnotlaterthan30December2008ThereisnoprevioustransactionbetweentheCompanyandMr.Zhangoranyofhisassociateswithina12-monthperiodorisotherwiserelatedthatneedtobeaggregatedwiththecurrenttransactioninaccordancewithRule14A.25oftheListingRules.TheaggregateconsiderationforthesaleofthepropertiesundertheFirstAgreementtoMr.LiandtheSecondAgreementtoMr.ZhangisRMB82,740,680,andwasdeterminedafterarm’slengthnegotiationswithreferencetoavaluationbyanindependentprofessionalvaluer.ThepropertiessoldarenewdevelopmentsoftheGroupandhaveanaggregatedbookvalueofRMB45,586,000asat31October2008.TheCompanyexpectsagainonsalebeforeexpensesandtaxesintheamountofapproximatelyRMB32.6million.ThesaleproceedswillbeappliedasgeneralworkingcapitaloftheGroup.REASONSFORANDBENEFITSOFTHEENTERINGINTOTHEAGREEMENTSTheCompanyisprincipallyengagedinpropertydevelopmentandpropertyrelatedinvestmentinthePRC.ThepropertiessoldundertheAgreementswerepropertiesdevelopedforsaleintheordinaryandnormalcourseofbusinessoftheCompanyandarepurchasedbyMr.LiandMr.Zhangrespectivelyfortheirownpersonaluses.TheDirectors,includingtheindependentnon-executiveDirectors,considertheAgreements,beingarrivedatafterarm’slengthnegotiationswiththesellingpricesofthesubjectpropertiesfixedhavingreferencedtoindependentvaluations,areonnormalcommercialtermsandareinlinewiththeordinaryandusualcourseofbusinessoftheCompany.TheDirectors,includingtheindependentnon-executiveDirectors,furtherconsiderthatthetermsoftheAgreementsarefairandreasonableandareintheinterestoftheCompanyandtheShareholdersasawhole.GENERALEachofMr.LiandMr.ZhangLiisaDirectorandsubstantialshareholderoftheCompanyandMr.ZhangLiangisthesonofMr.ZhangLi,theyarehenceconnectedpersonsoftheCompany.ThesalesundertheAgreementsthereforeconstituteaconnectedtransactionfortheCompanyundertheListingRules.AsthepercentageratiosinvolvedasdefinedinRule14A.10oftheListingRulesforthetransactionwithMr.LiandMr.Zhangaremorethan0.1%butlessthan2.5%,theconnectedtransactionisonlysubjecttoreportingandannouncementrequirementssetoutinListingRulesChapter14Aandexemptfromtheindependentshareholders’approval-3-requirements.DEFINITIONSInthisannouncement,thefollowingexpressionshavethefollowingmeaningsunlessthecontextotherwiserequires:“Agreements”theFirstAgreementandtheSecondAgreement;“Board”theboardofdirectorsoftheCompany;“BeijingR&FCity”北京富力城房地產開發有限公司(BeijingR&FCityDevelopmentCo.Ltd.),awhollyownedsubsidiaryoftheCompany;“Company”GuangzhouR&FPropertiesCo.,Ltd.,acompanyincorporatedinthePeople’sRepublicofChina,theH-sharesofwhicharelistedonthemainboardoftheStockExchange;“connectedperson”hasthemeaningascribedtoitundertheListingRules;“Director(s)”thedirector(s)oftheCompany;“FirstAgreement”theagreementdated21November2008betweenMr.LiandBeijingR&FCityinrespectofthesaleofapropertybyBeijingR&FCitytoMr.Li;“Group”theCompanyanditssubsidiaries;“HongKong”theHongKongSpecialAdministrativeRegionofthePRC;“ListingRules”theRulesGoverningtheListingofSecuritiesontheStockExchange;“Mr.Li”Mr.LiSzeLim,anexecutiveDirectorandasubstantialshareholderoftheCompany;“Mr.Zhang”Mr.ZhangLi,anexecutiveDirectorandasubstantialshareholderoftheCompanyandMr.ZhangLiang,sonofMr.ZhangLi;“PRC”thePeople'sRepublicofChina;“RMB”Renminbi,thelawfulcurrencyofthePR