Major Businesses of Shanghai Industrial Holdings Limited

The major businesses under SIIC Holdings include infrastructure facilities, pharmaceuticals, consumer goods and real estate.

Infrastructure Facilities

SIHL's investment in infrastructure facilities began in 1996, and its business scope includes toll roads and water services, which provide a stable source of cash income for the company. in July 2008, the company announced that it had acquired a 100% interest in Shanghai-Hangzhou Expressway (Shanghai Section) for approximately HK$4.196 billion. Toll roads: SIIC Holdings' toll roads include: 1. Shanghai-Nanjing Expressway (Shanghai Section), one of the busiest transportation arteries in the Yangtze River Delta region. The completion of the reconstruction and expansion project of Shanghai-Nanjing Expressway (Shanghai Section) has greatly improved the traffic service function of Shanghai-Nanjing Expressway, and the traffic flow and toll revenue of this section have increased substantially. 2. Shanghai-Hangzhou Expressway (Shanghai Section), with a total length of 47.7 kilometers, starting from Xinzhuang Town of Minhang District of Shanghai in the east to Fengjing Town of Jinshan District of Shanghai in the west, and connected with the Shanghai-Hangzhou-Ningbo Expressway of Zhejiang Province, which is a part of the main trunk line of the 12 national highways in China, and also is the main route from Shanghai to Zhejiang Province. It is also the main transportation lifeline from Shanghai to Zhejiang Province and inland provinces.

Water: SIIC fully grasps the opportunity of opening up the domestic water market. At the end of 2003, SIHL and China Energy Conservation Corporation (CECC), a state-level enterprise, formed China Central Water Investment Company Limited (CWIC) to invest in and operate domestic water facilities. Since its establishment in 2003, CWS has been recognized as one of the ten most influential companies in the water market by China Water Net for five consecutive years. Azeus Water has set up fourteen project companies in nine regions with a daily production capacity of 4,543,000 tons and total assets of HK$5.2 billion. With the accelerated pace of urbanization around the world, the demand for water supply and sewage treatment is increasing, while the national water price is gradually being rationalized, the water investment enterprise has a bright future.

Pharmaceuticals

The pharmaceutical business of SIIC Holdings owns a number of well-known pharmaceutical companies in the industry, including Youth Bao, Hu Qingyu Tang, Xiamen Traditional Chinese Medicine Factory, Liaoning Good Nurse, Changzhou Pharmaceuticals, Guangzhou Tianpu, and 3D Bio. Pharmaceutical products cover the fields of chemical drugs, biological drugs, medical products, traditional Chinese medicine and healthcare products. The company ****has three national Class I new drugs including "Ankorui (H101 project)", "Kailikang" and "TNF" jointly developed with Shanghai Second Military Medical University. These three national Class I new drugs are all targeting at the treatment of the disease. These three new drugs are all targeting the most prevalent diseases in China, i.e. cancer and stroke, and have great potential for market development.

Real estate

SIIC made a breakthrough in the reorganization of Shanghai's state-owned real estate resources by completing the acquisition of 59% interest in Shanghai Urban Development Group at a cost of HK$3.860 billion in 2007, taking an important step in the reorganization of state-owned assets. In addition, in July 2008, SIIC announced the acquisition of approximately 87% interest in Four Seasons Hotel Shanghai for HK$1.35 billion.

Shanghai Urban Development Group (SEDG): SEDG owns a number of major commercial and residential real estate projects, with a developable area*** of about 3 million square meters, located in Shanghai, Kunshan of Jiangsu Province, Changsha of Hunan Province and Hefei of Anhui Province. SIIC Holdings integrates Shanghai Chengkai Group's advantages in team, brand and real estate development operation with the company's own advantages in capital, capital operation and market-oriented experience to create a real estate development platform and promote the development of the company's real estate business.

Four Seasons Hotel Shanghai: A five-star hotel located in the heart of Shanghai, the hotel is situated between two major streets - Nanjing Road and Huaihai Road, adjacent to the municipal government building and a number of commercial and shopping centers in Shanghai. The 38-storey hotel **** has 421 guest rooms (including 78 suites), an executive club, four lounge restaurants, a rooftop lounge with banquet rooms, fitness facilities, a business center and a variety of meeting facilities.