The Board of China Hongqiao Group Ltd. announced that on December 27, 2012, the company entered into the Joint Venture Agreement with Winning Investment, PT. Cita and PT. Danpac in respect of the Joint Venture Company in Indonesia.

Pursuant to the Joint Venture Agreement, the Joint Venture Company shall be held as to 60% by the company, 10% by Winning Investment, 25% by PT. Cita and 5% by PT. Danpac.

Accordingly, the Joint Venture Company shall become a direct non-wholly-owned subsidiary of the company and its results will be consolidated into the results of the company. The total investment in the Joint Venture Company is expected to be approximately USD 1 billion (equivalent to approximately HKD 7,751,800,000) and the last installment of the capital contributions is expected to be made on or before December 31, 2015. The Joint Venture Agreement shall have an indefinite term which is subject to termination only in accordance with the provisions of the Joint Venture Agreement under which one party will cease to be a shareholder of the Joint Venture Company.