CMIG Jiaye Controls South East Group Helping the Latter Become a Leader of China's Building Industrialization

China Minsheng Jiaye Investment Co., Ltd. (hereinafter referred to as "CMIG Jia"), a subsidiary of China Minsheng Investment Corp., Ltd. (hereinafter referred to as "CMIG"), announced in Hong Kong on May 28th that CMIG Jiaye has obtained the controlling interest in South East Group Limited (hereinafter referred to as "South East Group", stock code: 00726) by private placement. Going forward, CMIG Jiaye will inject strong vigor and vitality into the development of South East Group to make it the leader of China's building industrialization.

Among others, CMIG Senior President Assistant Zhang Zhichao, CMIG Chief Financial Officer Mi Hongjun, CMIG Jiaye Vice President Yin Jun, South East Group Chairman and CEO Yang Junwei and Vice Chairman Chen Zhize attended the press conference.

CMIG Jiaye is the real estate financial platform of CMIG. By subscribing new stocks, CMIG Jiaye obtained the controlling interest in South East Group, a company listed in Hong Kong. The subscription price per share is HKD0.2 and the total subscription scale reached HSD1.3 billion. The proceeds obtained by South East Group will mainly go to developing building industrialization, the upstream of real estate. With the strong support from CMIG Jiaye, South East Group will bring in the new mode of "building industrialization" over time while making investment in China's real estates. In addition, South East Group will put in place the largest building industrialization business platform in China and become an industrial leader quickly. This will be realized by carrying on China's strategies for developing building industrialization, affordable housing and new-type urbanization.

Building industrialization is the development direction of China's construction sector. The major production mode is element prefabrication and factorial assembly. Through informatization management, the industry integrates the businesses of the entire industrial chain, ranging from R&D design, production and manufacturing, to field assembly. "High quality, high efficiency, low cost and less pollution" have offered an enabling opportunity for the development of building industrialization. Based on South East Group, CMIG Jiaye will advance the business of building industrialization, the upstream of real estate. In the coming three to five years, it will open large-scale building industrialization production bases in Hunan, Shanghai, Guangdong, Jiangsu, Zhejiang and Hubei, among other regions. This will help form scale effects and deepen the overall industrial distribution.

Yin Jun, vice president of CMIG Jiaye, noted that "CMIG Jiaye's investment in South East Group marks that the two enterprises start to jointly live up to the development philosophy of 'industry-finance integration'. Building industrialization embraces a huge market space. We will build up the operational capability in the full industrial chain of building industrialization, and guide the transition and upgrading of the construction industry. In so doing, we will make a difference in energy conservation and emission reduction through green buildings."

Yang Junwei, chairman and CEO of South East Group, said that "the completion of this investment is a milestone for South East Group and each shareholder. We believe that South East Group's businesses will enter into a new era thanks to the profound experience and resource platform of CMIG and CMIG Jiaye."

CMIG is a leading private investment company founded in Shanghai on May 9, 2014. With a registered capital of RMB50 billion, CMIG is organized by the All-China Federation of Industry and Commerce (ACFIC) and established by 59 prestigious private enterprises. CMIG's businesses encompass equity investment, equity investment management, business consulting, financial consulting, industrial investment, asset management and investment consulting, among others. Internationalized expansion has long been an important business development direction of CMIG. At the moment, CMIG has set up branch offices in Singapore and Hong Kong, and officially launched the Global Advisory Council.

With a registered capital of RMB10 billion, CMIG Jiaye is a wholly-owned subsidiary of CMIG. Its mission is to "integrate finance into real property opportunities through investing in high quality real properties and utilizing international capital and professional resources". CMIG Jiaye, taking advantage of the strong capital-operating capacity and industry-finance integration capacity of CMIG, aims to build a real property investment platform through investing in high quality real properties and utilizing international capital and professional resources.

South East Group went public in Hong Kong in 1991. Before this deal, South East Group mainly specialized in property development and investment business in mainland China. Over the years, it has been committed to enlarging its property investment portfolio and tapping into excellent properties, thus improving business performance, maintaining growth and then creating long-lasting and better return for its shareholders.