During the first quarter in 2014, for the development properties, the Company took into consideration the changes in the business environment of the real estate market, and adjusted its marketing strategies proactively to strengthen the promotion and the development speed of major projects. In respect of the projects in Beijing, the Company accelerated the construction of low-density projects of Changhe Yushu Garden Villas and Shunyi Mapo Project, laying the foundation for project launch in the second half of the year when opportunities arise. North Star Xianglu maintained a stable turnover rate through targeted selling approaches. In respect of the projects outside Beijing, Changsha North Star Delta Project took proactive response to cope with the changing market through optimizing the product structure, formulating diversified sales strategies targeting different client groups, which further improved the overall business sentiment and promoted the sales of residential buildings. As the new available products mainly enter the market in the second half of the year, during the reporting period, the development properties segment achieved contracted sales and sales areas of RMB575,560,000 (including car parks) and 29,800 m2, respectively. As for the investment properties, office building business adjusted the prices for contract renewal reasonably through the differential positioning and marketing for customers. The rent was higher than the average level in the Grade A office building market in Beijing and the occupancy rate remained high. Hotel business coped with the market changes proactively. It endeavored to increase the market shares focusing on characteristic marketing and its occupancy rate outperformed the peers in the industry. Facing the changes in the market, the apartment business adjusted and optimized the proportion of permanent customers and short-term customers, and the price and the occupancy rate remained stable.

Details:OVERSEAS REGULATORY ANNOUNCEMENT 2014 FIRST QUARTERLY REPORT