On 28 August 2018, Xiamen Yuzhou Grand Future Real Estate Development Company Limited, an indirectly wholly-owned subsidiary of Yuzhou Properties Company Limited established in the People's Republic of China, issued domestic corporate bonds to qualified institutional investors in the principal amount of RMB 1 billion bearing a fixed coupon rate of 7.85% per annum with maturity of three years, with options to adjust the coupon rate by the Issuer at the end of the first year and the second year and to sell back by the holders. On 1 August 2019, taking into account the prevailing market conditions and the financial condition of the Group, the Issuer exercised the option to adjust the coupon rate for the second and third years of the term of the Domestic Bonds, being the period from 29 August 2019 to 28 August 2021, from 7.85% to 6.98%. Bondholders had the option to register for sale back of all or part of the Domestic Bonds during the period from 19 August 2019 to 21 August 2019 at the price of RMB 100 each, being the face value of the Domestic Bonds. No registration for sale back of the Domestic Bonds was received and accordingly, the Bondholders will continue to hold the Domestic Bonds with the adjusted coupon rate of 6.98%.