The Board of Directors (the “Board”) of Yanlord Land Group Limited (the
“Company”, and together with its subsidiaries, the “Group”) wishes to
provide the following clarification in response to recently published media
articles associating Shanghai Yanlord Property Co., Limited (“Shanghai
Yanlord”), a subsidiary of the Company, to graft charges raised against a
former vice governor of the Pudong New Area in Shanghai:-
1) Mr Kang Huijun, a former vice governor of the Pudong New Area, and
his family have been residents of Yanlord Gardens since the purchase of an
apartment unit in 2001. In March 2006, Mr Kang traded in this apartment
and purchased a larger but old show flat in Yanlord Gardens to be used by
him and his family for residential purpose. In consideration of the
publicity benefits that Mr Kang’s residency would bring towards the sale of
apartments at Yanlord Gardens, both of the aforesaid units were priced
based on the launch prices of apartment units in Yanlord Gardens Phase 1.
The Group reiterates that the above transactions fall within the ordinary
course of its business involving sale and promotion of our apartment units.
2) The media articles reported that between 1993 to 2001, Mr Kang had
abused his capacity as vice governor of the Pudong New District by giving
Shanghai Yanlord the land use rights of land parcels SB4-1,2,3,4 and
SB5-1,2 sited along Pudong Century Avenue for development into Yanlord
Gardens. The Company wishes to state categorically that the above
statement is untrue as Shanghai Yanlord did not receive any assistance from
Mr Kang in obtaining the land use rights of any land parcels.
3) The Group reiterates that all its land acquisitions, including those
acquired through public tenders and auctions, are conducted in a legal and
transparent manner in accordance with the relevant governing rules and
regulations.
“Company”, and together with its subsidiaries, the “Group”) wishes to
provide the following clarification in response to recently published media
articles associating Shanghai Yanlord Property Co., Limited (“Shanghai
Yanlord”), a subsidiary of the Company, to graft charges raised against a
former vice governor of the Pudong New Area in Shanghai:-
1) Mr Kang Huijun, a former vice governor of the Pudong New Area, and
his family have been residents of Yanlord Gardens since the purchase of an
apartment unit in 2001. In March 2006, Mr Kang traded in this apartment
and purchased a larger but old show flat in Yanlord Gardens to be used by
him and his family for residential purpose. In consideration of the
publicity benefits that Mr Kang’s residency would bring towards the sale of
apartments at Yanlord Gardens, both of the aforesaid units were priced
based on the launch prices of apartment units in Yanlord Gardens Phase 1.
The Group reiterates that the above transactions fall within the ordinary
course of its business involving sale and promotion of our apartment units.
2) The media articles reported that between 1993 to 2001, Mr Kang had
abused his capacity as vice governor of the Pudong New District by giving
Shanghai Yanlord the land use rights of land parcels SB4-1,2,3,4 and
SB5-1,2 sited along Pudong Century Avenue for development into Yanlord
Gardens. The Company wishes to state categorically that the above
statement is untrue as Shanghai Yanlord did not receive any assistance from
Mr Kang in obtaining the land use rights of any land parcels.
3) The Group reiterates that all its land acquisitions, including those
acquired through public tenders and auctions, are conducted in a legal and
transparent manner in accordance with the relevant governing rules and
regulations.
