For Immediate Release 28 November 2013

ZHONG AN REAL ESTATE LIMITED

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Cooperation Agreement with Tonglu County, Zhejiang to Establish China Wellness Valley in Xiaoyuanshan Valley

(Hong Kong, 28 November 2013) Zhong An Real Estate Limited ("Zhong An" or the "Group"; stock code: 672.HK), one of the leading PRC property developers in the Yangtze River Delta region, is pleased to announce that, on 26 November 2013, the Group entered into a cooperation agreement with Tonglu County Fengchuan Office for the development of Xiaoyuanshan Valley into China Wellness Valley which will integrate tourism, leisure, vacation, wellness, senior care and medical treatment. Meanwhile, to build a town of health preservation valley, eco-tourism, leisure and other features style in Fengchuan town, the location of the project, would greatly accelerate the development of small towns.
As disclosed in the agreement, a joint venture will be established to develop China Wellness Valley, in which Zhong An owns 85% interests. With a total investment of RMB2 billion, the joint venture is engaged in primary land development, including environment planning and landscaping, planning of tourism resources, planning and construction of health care and senior care facilities, construction of public and ancillary facilities; and planning and reformation of land for commercial purpose. Occupying 25 sq. km., China Wellness Valley is expected to be completed in 2020. According to the agreement, the joint venture will obtain long-term and stable returns from the primary land development.
Xiaoyuanshan Valley is 55 km away from downtown Hangzhou and is a treasure of Hangzhou Eco-tourism belt. It embraces superb natural environment and is renowned as a perfect wellness destination.
Tonglu County is the most livable county and longevity Town in China. The project of
China Wellness Valley at Tonglu Xiaoyuanshan is warmly welcomed by Tonglu
county Government and has been listed as the most important project in Fuchun
Mountains Healthy City series.
Developing China Wellness Valley is one of the development strategies of Zhong An in the future. Since 2009, Zhong An has recognized that health services industry will be an come to the fore in China's economic development. The Group has made a systematic and in-dept research on health service and senior care sectors, and established our own business model of building an industry alliance with strategic partners. The example is that, in April, the Group signed a strategic cooperation agreement with Zhejiang Hospital, which is famous for geriatric and health care services. Zhejiang Hospital will provide its support to the Group's development of health care and senior care projects.
Developing health care and senior care projects is in line with national development strategies. With improved living standards as well as the pursuit of health, leisure and longevity, China's tourism, health care and senior care service industries will witness explosive growth. To coordinate the development of old-age care and health service industries, the State Council successively published Several Opinions on Boosting Senior-care Service Industry and Several Opinions on Boosting Health Service Industry on September 13 and October 14 to define the scope and objective until
2020 of senior-care and health service industries for the first time, proposing specific measures on accelerating industry development, laying out a coordination mechanism for the whole society's encouraging, supporting and participating in old-age care and health service industries. According to the documents, by 2020
China's health industry would be worth more than RMB8 trillion and senior-care service would cover a population of 200 million. It will be an important means for China to stabilize its economic growth, shift its economic structure and facilitate development, and also significantly drive a healthy development of China's economy.
The joint development of Xiaoyuanshan China Wellness Valley by Zhong An and Tonglu county governmentis in line with the trend of China's development and orientation of industry policy. It caters to the needs of consumers and presents a healthy way of living for the future. Thus, several domestic financial institutions has paid close attention to the project, and expressed willingness to provide financial support in the form of long-term facilities.

Tonglu County, Hangzhou, Zhejiang Province
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About Zhong An

Zhong An Real Estate (Stock Code: 672) is one of the leading PRC property developers in the Yangtze River Delta region of China, which is mainly engaged in the development of mid-and high-end residential properties and urban complexes. Also the Group has established a diversified business portfolio of investment properties, hotel operations, distinctive property management and value-added services. Since its incorporation in
1997, the Group maintains a geographical focus on the Yangtze River Delta Region where it enjoys competitive edges, and establishes strong brand recognition in the region. As of 15 August 2013, a land bank of the Group is approximately 7.10 million
sq.m. (including lands with land use right and contractual interest).
For further information, please contact:

Wonderful Sky Financial Group Holdings Limited

Kevin Mao/ Rebecca Yu/ Margaret Wang
Tel: (852) 3970 2157/ (852) 3970 2156/ (852) 3970 2155
Fax: (852) 2865 1638
Email: kevinmao@wsfg.hk/ rebeccayu@wsfg.hk/margaretwang@wsfg.hk

Zhong An Real Estate Limited

Laurence Lam/ Emma Qi
Tel: (852) 2877 6993
Fax: (852) 2877 6990
Email: finance_m@zafc.com/emmaqi@zafc.com

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