The business of providing construction and advisory services to industrial parks includes:
The construction and advisory services is a strategic supplement to the traditional property development. By providing these value-added services, Gold Green is better positioned to diversify its business lines and also expects to obtain higher margin.
•GRHhas entered into Strategic Cooperation Framework Agreements (Agreements) withrelevant parties to develop two food industrial park projectslocated in Sichuan Province andHubeiProvincerespectively
•Underthe Agreements, GRH will be providing services in relation to construction,lease management, ongoing operating and management of the industrial parks
•Multiplesources of income are expected, including 3% construction fee of total planned projectinvestment plus ongoing operation, management and consultancy fees
•Expectedtotal investment by third parties including local councils: RMB600 million for SichuanProject and RMB4 billion RMB for HubeiProject