Jinjiang stock major asset reorganization approved

China Securities Regulatory Commission approves the major assets reorganization of Jinjiang stock.　　The company has supplemented and perfected the reorganization report according to the opinions of the SFC. The company announced today that as of July 31, 2009, the "Jinjiang Inn" Hotel operating a total of 86 rental operators, such stores by Jinjiang Inn or hotel investment to third-party property owners lease related housing and land. As at the date of the reorganization of the report, there were 30 stores whose properties had not been certified by the lessor as valid proof of the lawful ownership of their houses or land or the leased use was not approved.　　There is some uncertainty as to whether the above owners have the legal right to lease the property. The company said that if the ownership of the above leased property, resulting in the operation of the relevant stores forced to terminate, will be the company's business and operating results adversely affected.　　Although under the lease agreement and the relevant laws, the owners of the above problems have to pay compensation to the relevant lessee, the company will still need to relocate the relocation, so as to bear the additional replacement renovation costs. Jinjiang shares plan to take positive and effective measures after the reorganization is approved by China Securities Regulatory Commission, and obtain the valid supporting documents of the leased property ownership and the lawful ownership of the land use right, and the relevant actual leasing uses obtain the authorized department's approval.　　Within 12 months, to reduce the proportion of leased premises in the above mentioned problems to 20% per cent of the total number of leased premises in the assessment base day, within 24 months, and within 36 months, to 0%.　　Jinjiang shares said that if the company fails to resolve the problem within the relevant time limit stipulated in the settlement Plan timetable, the company will take no less than the value of this evaluation in the 3-month transfer of the project, the termination of the lease relocation business or other means to be thoroughly resolved. In response to these risks, the company's major shareholder Jinjiang international commitments, will assume the lease to reopen the opening of the leasing business stores due to the cancellation of the lease may result in liquidated damages, and according to the asset assessment base date July 31, 2009 of the specific asset valuation compensation. In addition, Jinjiang International also pledged, if due to the above defects caused the Jinjiang Inn to be relocated to open the site, then from the date of the closure of the store within one year, the property lessor failed to compensate for the loss of the store, Jinjiang International will be full compensation to the store, to support its relocation to open new stores.