Shanghai Industrial Holdings Limited is an investment holding company. The Company operates in three segments: infrastructure facilities, real estate and consumer products. Infrastructure facilities are engaged in investment in toll road projects and water-related business. Real estate is engaged in property development and investment and hotel operation. Consumer products are engaged in manufacture and sale of cigarettes, packaging materials, printed products and dairy products. In May 2010, the Company acquired the operating concession of Hu-Yu Expressway (Shanghai Section). In August 2010, the Company acquired Shanghai Industrial Urban Development Group Limited (SI Urban Development). In November 2010, the Company acquired the controlling interest of 60.4% in United Runtong Water Co., Ltd. (United Runtong Water). In February 2010, the Company acquired Asia Water Technology Ltd. (Asia Water). During the year ended December 31, 2010, the Company disposed of its Medicine segment.

Shanghai Industrial Holdings Ltd ("SIHL", HKSE stock code "363") was incorporated in Hong Kong in January 1996 and listed on the Stock Exchange of Hong Kong on May 30 the same year. The company is also traded in the form of American Depository Receipt (ADR) Program (Level 1) on the New York Stock Exchange. Today SIHL is a constituent stock of the MSCI China Free Index and HSC Index. In 2010, the company’s total assets and net assets reached HK$87,831 million and HK$29,760 million respectively. Revenue amounted to HK$12,712 million and profit attributable to shareholders totalled HK$5,278 million.

Shanghai Industrial Investments (Holdings) Co., Ltd ("SIIC"), the controlling shareholder of SIHL, was incorporated by the Shanghai municipal government in 1981 as a window company in Hong Kong. It is currently the largest overseas conglomerate enterprise under the auspices the Shanghai municipal government, with over 54% shareholding of SIHL.

As the flagship in the SIIC group of companies, SIHL has been successful in leveraging its Shanghai advantage since listing - in term of securing the best investment opportunities in Shanghai with full support from parent company. Throughout these years, SIHL has established an investment portfolio by means of mergers and acquisitions involving a number of quality assets in the core businesses divisions.

In line with the strategy of optimizing its business structure in recent years, SIHL had successfully divested a number of non-core assets while strengthening the development of core businesses. For infrastructure facilities, SIHL owns three key toll roads in Shanghai, providing stable income and robust cash flow. SIHL is keen to expand the scope of its infrastructure facilities business and the scale of investment in its toll roads to strengthen the profitability of its core businesses. In the water services business, SIHL has been active in water services investment in view of growing demands for water resources and sewage treatment due to rapid developments in the urban and rural areas all over China. As at the end of 2010, the aggregate daily handling capacity of all water services projects owned by SIHL reached 6,289,000 tonnes, resulting in continuous growth in the composite strength of production operation.

For real estate business, SIHL has expanded its market exposure significantly with the acquisitions of equity interests in SI Urban Development and controlling stake in the Shanghai-listed SI Development, the latter being acquired from its parent company. Taking into account the land banks of Shanghai Urban Development and SI Urban Development as well as the Qingpu lands which it already owns, SIHL has a planned total gross floor area of 17,620,000 square meters. Upon completion of the SI Development acquisition transaction and the purchase of lot G of Qingpu land, SIHL will have a planned total gross floor area of approximately 23,430,000 square meters with projects covering major cities in China. In the consumer products division, SIHL continues to refine its operation and profit structure in order to seek breakthroughs in business performance. Today, SIHL has secured its unique position as a leading red chip company in Hong Kong with three core businesses -- infrastructure facilities, real estate and consumer products -- all striving to create favorable returns for its shareholders.

Looking forward, SIHL will continue to seek merger and acquisition opportunities for its infrastructure facilities business to further expand the scale of operations. In addition，SIHL would shift its capital operations to move full steam ahead with the restructuring and integration of its real estate businesses in order to create a larger-scale operating platform with overall competitive strength to obtain full economies of scale and synergies from its real estate assets and to increase earnings. For consumer products, SIHL is committed to bolster its operational prowess, actively explore potential markets, achieve sustainable growth in business operating profit, consequently feeding the company with steady cash flow and earnings contribution.