Dear Shareholders, Noteholders and Friends,  

We are hereby pleased to inform you the following information,

China South City Holdings Limited (“China South City”, “the Company” or “the Group”; SEHK stock code: 1668), one of the leading developers and operators of large-scale, integrated logistics and trade centers in China, was informed on 13 July that Mr. Ricky Cheng Chung Hing, Co-Chairman and Executive Director of China South City, has acquired 12% interest in Proficient Success Limited, a substantial shareholder of the Company, which now holds 18.65% of the Company. Total consideration is approximately HK$174 million (equivalent to HK$1.3 per share of the Company). Accordingly, the effective interest of Mr. Cheng in the Company has increased by 2.24%.  The effective interest of Mr. Cheng, together with his effective interest in Accurate Gain Developments Limited, another substantial shareholder of the Company, and his personal interest in the Company, was increased by 2.24% to 21.43% after the acquisition.