Dongkui will be based in Lujiazui, Shanghai, the PRC, where the Company could benefit from local rapid growth on financial leasing business. As repeatedly mentioned in public by the municipal government officials in Shanghai and that the Pudong New Area government issued《浦东新区促进融资租赁业发展的意见》(Opinions on Promoting the Development of the Financial Leasing Industries of Pudong New Area*) on 15 July 2010 to encourage development of the financial leasing companies and industry in order to facilitate the development of Shanghai into an international financial centre, it is the PRC government’s policy to develop Shanghai into an international financial centre where financial leasing will play a huge role. Dongkui is registered in the China (Shanghai) Pilot Free Trade Zone and intends to operate mainly in Shanghai. The Board considers that Dongkui may be benefited from the implementation of the government policy by registering Dongkui in the China (Shanghai) Pilot Free Trade Zone.

Dongkui will plan to approach potential clients partly through the existing business network of Jianghuai Engine, which engages in the production of agricultural machinery. The Board is confident that the huge client base of Jianghuai Engine, which is a listed company on the Shenzhen Stock Exchange with an annual revenue of approximately RMB2.77 billion for the year ended 31 December 2013, will help Dongkui in developing its business. Moreover, the Board considers that Shanghai Dongsheng has risk management expertise which could be shared with Dongkui in recruiting relevant personnel in the business. For example, the senior investment manager in the investment department of Shanghai Dongsheng, who has joined Shanghai Dongsheng since 2011, has 8 years’ work experience in accounting, equity fund investment and industry investment analysis and is good at investment analysis and risk management. Shanghai Dongsheng has assisted Dongkui to hire three personnel to act as, respectively, the general manager, business director and risk control director of Dongkui.