Shenzhen CATIC Hotel Management Company, a subsidiary of Nan-guang Group, will invest RMB70 million to rent Catic Plaza and manage the hotel part of the property in Beijing.

Catic Plaza is owned by China Aero-Technology Import and Export Corporation, shareholder of Shenzhen Nan-guang Group's parent company China Aero-Technology Import and Export Corporation (Shenzhen).

Shenzhen CATIC Hotel Management Company will rent the hotel part of Catic Plaza, which encompasses about 33622 square meters, for a period of 15 years. The rent for the first three years will be RMB62 per square meter and the rent for the remaining years will be determined by the market from the fourth year on and be adjusted every three years.

In addition, Shenzhen CATIC Hotel Management Company will spend RMB 8 million in cash to purchase the newly added registered capital of Shenzhen CATIC Property Management Company. The latter will be responsible for managing Beijing Catic Gelan Yuntian Hotel after the investment is increased.