Company introduction

Liguo Real Estate is a comprehensive residential and commercial real estate developer focusing mainly on developing residential properties in China. The company successfully entered the Pan-Strait West Coast Economic Zone, the Bohai Rim Economic Zone and many key economic cities in the central and western regions, including Nanchang, Tianjin, Jinan, Yantai, Hefei and Xianyang. Starting in 2010, the company was rated as one of the “China Top 100 Real Estate Companies” by the Enterprise Research Institute of the Development Research Center of the State Council, the Tsinghua University Real Estate Research Institute and the China Index Research Institute, and was named one of the “2013 South China Real Estate Company Brand Value Top 10” last year. Furthermore, the company has developed complementary diversified land acquisition strategies, including acquisition and listing to third parties and implementation of other land acquisition strategies.

For the year ended 2010, 2011, December 31, 2012, and the nine months ending September 30, 2013, the company's revenue was RMB 1,528.3 million, RMB 1,356.0 million, RMB 1,550.9 million, and RMB 2,142.8 million; the profit that equity holders should account for the year/period was RMB 117.5 million, RMB 85.4 million, RMB 65.8 million, and RMB 270.1 million.

Assumed use of proceeds

Assuming that the over-allotment rights were not exercised, the net proceeds from the sale of shares were estimated to be approximately HK$865.0 million based on the median sale price of HK$2.35 per share. The Board of Directors proposes to use the net proceeds for the following purposes: