On 15 December 2015, the Company had entered into a share subscription agreement with Jolly and an independent third party of the Company, pursuant to which Jolly agreed to issue an aggregate of 31,449 ordinary shares of Jolly and the Company as one of the investors agreed to subscribe for 7,245 ordinary shares of Jolly at a cash consideration of US$25.00 million, representing approximately 23.04% of the enlarged issued share capital of Jolly. Jolly is an investment holding company incorporated in the Cayman Islands with limited liabilities. Jolly indirectly invested in PG Investment, a PRC company. PG Investment is a leading logistics warehouse infrastructure operator in the PRC, whose principal business includes investment, construction and operation of large scale logistics parks, business facilities and exhibition centers. Jolly and PG Investment are both independent third parties of the Group. As of 30 June 2020, PG Investment had nine projects in operation, the overall occupancy rate of which was 76%. The decline in occupancy rate is mainly affected by the novel coronavirus (“COVID-19”) pandemic. Some tenants have withdrawn their tenancies and the Company is actively seeking for new tenants. The Company expects that PG Investment’s operation in the second half of 2020 will be relatively stable.
*For identification purpose only