China Public Procurement (HKG:1094) announced that the implementation of the Wuhan EMC Project and relevant statistical testing on the trial section of the highway in Wuhan, the PRC was completed on 20 December 2011. In accordance with the project agreement, the second installment shall be settled by the transferee by 20 January 2012. As the transferee has a need to reallocate its financial resources in the end of its financial year, the transferee expects that more time would be required by it to arrange for settlement of the second installment and thus the supplemental agreement was entered into.

As at 4 January 2012, the first installment, being HK$18 million, had been paid by the transferee and the second installment, being HK$12 million, is expected to be received by the PRC partner subsidiary China Public Procurement (Hong Kong) Technology Co., Ltd. on or before 31 March 2012 and 90% of which, being HK$10.8 million, is expected to be received by the subsidiary Public Procurement Limited within one week after the PRC partner subsidiary has received the second installment.

The payment of the second installment was only deferred by about two months. The directors do not consider that such deferral constitutes a material change to the terms of the project agreement.