Shenzhen : Voluntary Announcement: Entering into of Investment Agreement - Investment in and Construction of "Shenzhen International Hangzhou Smart Integrated Logistic Hub"

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Bermuda with limited liability)

Shenzhen International Holdings Limited (the "Company") is pleased to announce that on 16
June 2015, the Company entered into an investment agreement (the "Investment Agreement") with the Administrative Committee of Hangzhou Da Jiangdong Industrial Cluster (杭州大江 東產業集聚區管理委員會) (the "Administrative Committee of HZDJD Industrial Cluster")
in relation to the investment in and construction of the Shenzhen International Hangzhou
Smart Integrated Logistic Hub (深國際杭州智慧綜合物流港) (the "Hangzhou Project"),
pursuant to which the Group agreed to invest in, develop and construct the Hangzhou Project in Hangzhou Da Jiangdong Industrial Cluster (杭州大江東產業集聚區), Hangzhou City,

Zhejiang Province, China. Investment Agreement Date:

16 June 2015

(1) the Company; and
(2) the Administrative Committee of HZDJD Industrial Cluster (as designated by Hangzhou CPC Municipal Committee and the Hangzhou Municipal Government to implement unified management functions of Da Jiangdong region, such as economic, social and cultural development, and is responsible for the development of Hangzhou Da Jiangdong Industrial Cluster, including investment promotion work for the land within the area).
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Pursuant to the Investment Agreement, the Administrative Committee of HZDJD Industrial Cluster will be responsible for, among other things, completing the acquisition, demolition, resettlement and compensation for buildings erected on project sites and other relevant works before listing-for-sale, so as to ensure that open tenders of such project sites will be carried out on schedule. The Group will acquire the land use rights of the sites under the Investment Agreement in accordance with statutory listing procedures, and will enter into relevant land transfer contracts with competent land and resources administration authorities.
The total site area of the Hangzhou Project is approximately 400,000 square metres (equivalent to approximately 600 mu) will be acquired in two phases. The land parcel of approximately 200,000 square meters (equivalent to approximately 300 mu) under Phase One is expected to be sold no later than the end of October 2015 through open tender.
The Group will set up a project company responsible for the investment, management, construction, investment promotion work and the operation of the Hangzhou Project. The Group will commence the development and construction of the Hangzhou Project after acquiring the land use rights to the relevant land parcels.
It is expected that the project company will be a subsidiary of the Company, and the Group's total investment in the Hangzhou Project is expected to be approximately RMB1.4 billion.

The Hangzhou Project is established within Hangzhou Da Jiangdong Industrial Cluster in Hangzhou City, Zhejiang Province of China, with a site area of approximately 400,000 square metres (equivalent to approximately 600 mu). The Hangzhou Project represents an important strategic foothold to enhance the Group's network presence in Eastern China regions under
the "China Urban Integrated Logistics Hub" (深國際城市綜合物流港) development plan.
The Hangzhou Project will be built into a smart comprehensive logistics hub that integrates with various functions, including a vendor-managed-inventory (VMI) service base, an e-commerce industry base, an urban distribution centre, a trade and exhibition centre, an Internet-of-Things innovation hub, a supply chain information centre and a comprehensive service centre.
Hangzhou City is the capital of Zhejiang Province and is located in the northern part of
Zhejiang Province, representing one wing under the "One Body and Two Wings" (一核兩翼)
development plan for the Yangtze River Delta Region. As encircled by multiple freeways and national roads, Hangzhou City connects to the rest of the country, and enjoys favourable transportation and geographic conditions. With the scale of high-end manufacturing in Hangzhou Da Jiangdong Industry Cluster reaching a certain level, logistic related industry represents one of the three major strategic development focuses, as well as a cluster of logistics companies have gradually taken shape around the neighborhood of the Hangzhou Project, thereby providing a huge potential for the logistics market.
Over the last decade, Hangzhou City has been experiencing rapid economic development. Its GDP for 2014 amounted to RMB920.1 billion, ranking 10th across the country. The freight volume of Hangzhou City has also been increasing, with a total freight volume of 293 million tonnes in 2014. Amongst which, the highway freight volume amounted to 232 million tonnes, representing an increase of 10.3% over that of last year.
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The e-commerce industry in Hangzhou represents a leading position across China. In 2013, e-commerce transactions in Hangzhou City amounted to RMB1,000 billion.
With ample resources and experience in the logistic industry, as well as an experienced management team and infrastructure construction capabilities, the Group will continue to adhere to its development plan to gradually expand its nationwide logistic network by developing China Urban Integrated Logistics Hub projects in major logistic gateway cities across Eastern, Southern, Central, Northern, Northeastern, Southwestern and Northwestern China. The Group strives to expand its network across China, becoming a leading logistic infrastructure facility provider and further enhancing returns for its shareholders.
As at the date of this announcement, the Group has signed investment agreements in respect of China Urban Integrated Logistics Hub projects with ten cities which are key logistical nodes, namely, Shenyang, Wuxi, Wuhan, Tianjin, Shijiazhuang, Changsha, Nanchang, Hefei, Ningbo and Hangzhou covering a site area of approximately 3.14 million square metres in aggregate.

By Order of the Board

Chairman

Hong Kong, 16 June 2015

As at the date of this announcement, the board of directors of the Company consists of Messrs. Gao Lei, Li Jing Qi, Zhong Shan Qun, Liu Jun and Li Lu Ning as executive directors, Dr. Yim Fung, JP as non-executive director and Messrs. Leung Ming Yuen, Simon, Ding Xun and Nip Yun Wing as independent non-executive directors.

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