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After the Group completed the acquisition of Ace Plus Global Limited (“Ace Plus”)
in 2013, the Changbaishan high-end resort and property project in Jilin Province, China (“Changbaishan Property Project”) 35% owned by Ace Plus has become the cornerstone of the Group’s sustainable development in the Chinese property market. The Changbaishan Property Project covers an area of more than 1 million square metres and the construction has been progressing smoothly during the review period. Phase 1, which is expected to start pre-sale in December 2014, and its supporting facilities completed at the end of 2015. On top of the 35% profit from the sales of residential units of the project and recurring rental income from commercial space, the Group also owns the management rights of Changbaishan Property Project, enabling it to create income streams through providing management services including planning, design, budgeting, licensing, contract tendering and contract administration. This segment has yet to make any significant revenue contribution to the Group during the period.
On the other hand, the Group has signed a memorandum of understanding with the shareholders of Jilin Wan Sheng in relation to the intended acquisition of all of its equity interests. Such move is expected to further consolidate its presence in the residential property development market in Jilin.
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