On May 10, 2018, Jiayuan International (hereinafter referred to as the Group) is pleased to announce that Gang Yuan (Cambodia) Development Co., Ltd, an indirect wholly-owned subsidiary of the Group, has entered into the Sale and Purchase Agreement with Y Seng Co., Ltd.(as the vendor) in respect of the acquisition five plots of adjoining land in Phnom Penh, Cambodia for an initial purchase price of approximately HK$279 million (equivalent to US$35.6 million), which have a total area of approximately 608,140 square meters and can be expanded to 3,500,000 square meters for comprehensive planning.

The property development project, locates at Bek Kheng, Chroy Changvar District, Phnom Penh, Cambodia, along the National Highway 6, and is only 10 kilometres from downtown of Phnom Penh. It takes less than an hour driving to Phnom Penh International Airport. The auxiliary facilities of the project include hypermarkets, Golf hotels, PNN TV Station, Universities, hospitals and various properties under construction, indicating a comprehensive plan. Due to the significant demographic dividend and increasing urbanization in Phnom Penh, the Company is optimistic about the development and expansion in Phnom Penh. As a result, Chroy Changvar District, which will be built as a satellite city, is expected to attract a large population.

Moreover, the successive completion and commencement of operation of a series of infrastructures in the district, such as the main venue of Southeast Asian Games, Phnom Penh Safari World, and the largest water park in Asia has led to a more significant regional advantage. It is expected that after the commencement of operation of the Pan-Asian Railway in 2019, it would take only 4.5 hours from Kunming to Phnom Penh by high-speed railway. Phnom Penh will be closely tied to other ASEAN countries, and there will be more opportunities for the economic development of Cambodia.

For the past years, the growth of GDP in Cambodia amounted to approximately 7% each year. Under a stable political environment in recent years, the urbanization of Phnom Penh has been accelerated. Cambodia is enjoying the demographic dividend from the past development. Children represent approximately 30% of the total population in Cambodia, which is expected to be a driving force of consumption in the future Cambodia real estate market.

In recent years, Jiayuan International has closely followed the national “Belt and Road Initiative” to develop quality projects in countries and regions along the route. After conducting an in-depth and thorough investigation and study of the Cambodian market, Hong Kong (Cambodia) Development Co., Ltd. was formally established in February 2018, and quickly locked up a target area of 350 hectares. It is determined to establish a good reputation in Cambodia and enhance brand awareness in the Southeast Asian market , has helped the Group stride toward a milestone.