Company Study of China Enterprise Company Limited

The land development volume has gradually declined in Shanghai since 2004, reaching the lowest of the history in 2006, which led to the lack of housing supply in Shanghai market in 2007 and 2008. From the aspect of market demand, the housing market in Shanghai still kept 30 million sq. meters sales area although under macro adjustment in 2005 and 2006. In the beginning of 2007, the market demand in Shanghai recovered a bit, but the comparatively inadequate supply will intensify the contradiction of supply and demand in the market.

Currently, the company has 140,000 sq meters property for rent, most of which are office buildings and business units. The rent revenue was remarkable; the gross profit margin has exceeded 55%. According to the company plan, its rental area will increase to 250-300 thousand sq meters within three years. It is forecasted that its annual rent will amount to more than RMB 120 million in 2009, and RMB 274 million in 2011.