The People's Government of Liangqing District, Nanning (the District Government of Liangqing) informed Skyfame Realty (Holdings) Company (HKG:0059) that the company has won a tender for the development of certain lands in the core district of Wuxiang New Zone, Liangqing District, Nanning, Guangxi Province, the People's Republic of China. The company has paid a sum of RMB6 million (HK$7.2 million) to the District Government of Liangqing as tender deposit.

The total gross floor area of the whole development project is 1 million sqm of which properties with a floor area of 300,000 sqm will be built for the resettlement of original occupants that will be repurchased by the resettlement residents at prices to be agreed and the remaining area of 700,000 sqm is to be developed in phases for residential properties for sale.

Currently, the company has been in negotiations with the District Government of Liangqing for detailed terms of the resettlement and the acquisition of land use rights for the development of residential properties for sale, for which a framework agreement will be entered into shortly. The investment in the development project is subject to the outcome of the negotiations.