China Properties Investment (HKG:0736) announced that, according to the announcement of Simsen International (HKG:0993) published on 13 February 2012, Simsen has entered into a disposal agreement with Spring Sky Limited in relation to the disposal of a promissory note on 10 February 2012 and has completed the disposal on the same date. The consideration for the disposal was HK$10 million.

China Properties has participated on a non-recourse basis in the loan in the total amount of HK$50 million. The China Properties anticipated that after the payment of all costs and expenses incurred in connection with the disposal, the portion that will be repaid to China Properties by Simsen will be in the vicinity of HK$5.7 million. As such, the impairment loss on the loan in the event that Simsen cannot recover the outstanding balance of the loan is in the vicinity of HK$44.3 million.

China Properties says that, despite so, it has sufficient working capital for the requirement of its current operation and this will not have any material adverse operational impact.

China Properties has applied to the Stock Exchange for resumption of trading in its shares starting from tomorrow morning.

Furthermore, China Properties says that Simsen still has the legal standing to take legal proceedings against Make Success Limited for the outstanding balance of the loan owing from Make Success to Simsen. Yet the recoverability of the loan is not ascertainable at the present moment. Simsen has not given China Properties any definite information on whether Make Success has the financial resources to make full repayment of the loan.