KWONG (SHANGHAI) INVESTMENT CO., LTD.

Nam Kwong (Shanghai) Investment Company Limited is a secondary subsidiary wholly owned by Nam Kwong (Group) Co., Ltd. with a registered capital of CNY 143.6 million. The company was incorporated in April 1992 as Shanghai Pudong Shihua Economic Development Co., Ltd. (hereinafter referred to as Pudong Shihua) by Sinopec Group in Shanghai Pudong New Area. In November 2006, in order to comply with the reform and development demand of reasonable flow from auxiliary assets to main assets between central enterprises, with the strong support of SASAC, the state-owned property rights of Pudong Shihua was transferred to Nam Kwong (Group) Co., Ltd. free of charge. After the integration and reorganization, the former Pudong Shihua was split into three secondary subsidiaries: Pudong Shihua, Shanghai Huagao Real Estate Development Management Co., Ltd and Shanghai Shihua International Travel Service Co., Ltd. the reorganized Pudong Shihua was composed of two former management departments (general office and financial assets department) and three subsidiaries (operation department, property company and exhibition center), and also assumed the functions of the Shanghai Representative Office of the Group. In August 2007, Pudong Shihua was transformed from an ownership by the whole people to a state-owned one-person limited liability company. In September 2009, in order to clearly reflect the company's ownership relationship and better implement the development strategy of connecting the Group with the mainland, Pudong Shihua was renamed as Nam Kwong (Shanghai) Investment Co., Ltd.

Its business line mainly covers: industrial investment (except equity investment and equity investment management), sales of petroleum products (except specifically-charged oil), fuel oil, chemical materials and products (except special approval), mechanical and electrical products, metal materials, wood and wooden products, cement, daily provisions, hardware and electrical equipment, and knitted and cotton goods, sales of food, rental of houses, technology consultation, and import and export business of goods and technologies.

At present, the Company is mainly engaged in four businesses, namely, investment management, property leasing, trade business and chemical logistics. Investment management -- long-term investment of the Company and entrusted management of the Group's investment enterprises in Shanghai; property leasing – leasing of self-owned real estate as the primary business, management of real estate entrusted by the Group as the auxiliary business; trade business -- sales of Italian wine; logistics business – delivery of solid plastic petrochemical products for Sinopec.

Faced with new opportunities and challenges, Nam Kwong (Shanghai) Investment Company Limited will fully rely on and carry forward the integrated advantages of its locations in Yangtze River Delta and Shanghai Free Trade Zone, forge ahead with open mind and keep abreast with the times, so as to build the Company into an investor, logistics provider and trader with a clear business focus in diverse development and play its due role in the Group’s strategy of expansion in the Mainland.