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Tianbao Holdings Limited

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  1. Tianbao Holdings Limited July,2013 Berlin/Frankfurt, Germany

  2. Table of Contents Investor Presentation Tianbao Holdings Limited • 0. Disclaimer Pg.4 • 1. About us • 1.1 Company Background Pg.5-9 • 1.2 Management Group Pg.10-13 • 1.3 Company Organization Pg.14 • 1.4 Mission & Vision Pg.15 • 1.5 Business Strategy Pg.16 • 2. Business Model • 2.1 Business Overview Pg.17 • 2.2 Business Operations Pg.18 • 2.3 Business Projects Pg.19-23 • 2.4 Project Locations Pg.24 • 2.5 Business Outlook Pg.25

  3. Table of Contents Investor Presentation Tianbao Holdings Limited • 3. Target Groups & Markets • 3.1 Target Group and Markets • 4. Schedule • 4.1 Timetable • 5. Financial Data • 5.1 Profit forecast • 5.2 Project summary • 6. Reasons to Invest • 6.1 Investing in Tianbao Holdings Limited • 6.2 Investing in China • 7. Partners • 8. Contact Pg.26 Pg.27 Pg.28 Pg.29 Pg.30-32 Pg.33 Pg.34 Pg.35

  4. 0. Disclaimer Cautionary Statement regarding forward-looking information This document does not constitute an offering document. Potential investors or shareholders should not rely on the information contained in this document before making an investment decision. Certain of the information contained in this investor presentation may contain "forward looking information'. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Henan Tianbao Real Estate Co. Ltd. (the “Company"), or the assumptions underlying any of the foregoing, in this presentation, words such as 'may*, "would", "could", "will”, “likely", "believe", "expect", "anticipate” "intend", "plan", "estimate" and similar wards and the negative form thereof are used to identify forward looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Company's prospectus and could cause actual events or results to differ materially from those projected in any-forward looking statements. The Company does not intend, nor does the Company undertake any obligation, to update or revise any forward - looking information or statements contained in this presentation to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

  5. 1. About Us • 1.1 Company Overview • Henan Tianbao Real Estate Co. Ltd. was legally registered in Zhengzhou. Industrial and Commercial Bureau in Sep. 2005. The registered capital is ¥10,000,000 (EURO 1,158,296), and the corporate representative is Mr.LianHaitao. The registered address is at 13Floor, International Development Building, NO.333,Yu Feng Road, Jinshui District, Zhengzhou City. • As opposed to a typical property developer in China, TianbaoHoldings is an economically affordable housing manufacturer. The idea has full support of both central and local governments. This gives us an excellent advantage over risk control as the projects will not be vulnerable to property market volatility.

  6. 1. About Us • 1.1 Company: Location Advantages • Located in Zhengzhou, Henan Province • The largest and poorest province in China with a population of approximately 100 million permanent inhabitants with a further 25 million transients.

  7. 1. About Us • 1.1 Company: Location Advantages • The Chinese Government ratified a five year plan in August 2011, authorizing the building of 11 million homes for the low income population, otherwise known as economic affordable housing, commencing in January 2012, and rising to 36 million homes being constructed in 2016. In 2012, 375,000 of those homes are to be built in Zhengzhou City, the capital of Henan province. • The Government’s intention is not merely to provide housing, but also employment opportunities in that district as a general poverty easing policy.

  8. 1. About Us • 1.1 Company Qualification • Tianbao Core Strengths: The company’s business model is a more risk-averse and less speculative than the pure “property developer”. Focus The company works closely with the Chinese government in acquiring the land for new housing development. Markets Quality guarantees for customers and achieved technology leadership. Quality

  9. 1. About Us • 1.1 Company Qualification • TianbaoStrength and Opportunities: 9

  10. 1. About Us • 1.2 Management Group • Mr. Caesar Lian Chairman of the Board & CEO Mr. Lian obtained an MBA from Zhengzhou University. He ran and managed sales teams and developed unique marketing techniques. As a general manager of Taichi Real Estate Limited, Mr. Lianlead the development of the company since 2003. Mr. Lian has been awarded the following : 2001 "Ten remarkable young men" in Henan Province 2004 "Outstanding Entrepreneur in Henan province" 2007 "Outstanding Entrepreneur in Zhengzhou city" 2009 "Excellent Entrepreneur of Zhongyuan district"

  11. 1. About Us • 1.2 Management Group • Ms. Ruyin Zhang Deputy General Manager Ms. Zhang obtained a Bachelors Degree in Enterprise Management. Over the years of her career in various businesses, Ms. Zhang has developed exceptional management experience and operational skills. She is now responsible for daily administrative, project and resource managements for the Company and its wholly-owned subsidiary Henan Tianbao.

  12. 1. About Us • 1.2 Management Group • Mr. Hongda Ma Deputy General Manager - Engineering Mr. Ma works as the chief engineer in infrastructure department in Zhengzhou Construction Machinery and equipment Factory from 1987. He was Vice-president in Henan Yitong real estate co., Ltd. Since 2010, he joined Tianbao Holdings Limited as engineering Vice-president.

  13. 1. About Us • 1.2 Management Group • Mr. YinchaoHu CFO Mr. Hu has a Bachelors degree in Financial Accounting. Mr. Hu subsequently joined an industrial company in Zhengzhou as CFO. From 1997 to 2009, he was the deputy director in one of the largest accounting firms in Zhengzhou, specialized in Chinese and international auditing, mergers and acquisitions and taxation.

  14. 1. About us • 1.3 Company Organization Chairman Board of Directors Chief Executive Officer Deputy General Manager - Engineering Deputy General Manager Chief Financial Officer Counsel Department of Development Department of Engineering Department of Technology Department of Quality control Administrative Office Department of Sales & Marketing Office of Investment & Financing Financial Office Department of Legal Tianbao has 62 employees, which include 2 architects, 3 engineers, 1 economist and 2 accountants. 95% employees have the college degree or above.

  15. 1. About Us • 1.4 Mission & Vision • Mission • Building common homelands for low –income citizens . • Vision • To support the general poverty easing policy of China government by manufacturing reasonable quality accommodation mainly for low-income labor class and creating job opportunities at the same time.

  16. 1. About Us 1.5 Business Strategy 1. Aim majority market of the labor class 2. Align with Central Government long term policy 3. Mitigate price risk of China property market 4. Obtain significant support from local Government

  17. 2. Business Model • 2.1 Business Overview • To align with the Chinese central government’s long term poverty easing policy to obtain support from provincial government. • To develop economically affordable housing which is less speculative business model than the typical “property developer”. • To build for Henan Provence’s poor and labor class residents and low-income transients, which is consider to be a high demand market.

  18. 2. Business Model • 2.2 Business Operations • To acquire a piece of land • To submit the detail plans that comprise information for both the construction and the infrastructure details of the project to provincial government for approval and obtain development licenses and relevant documents. • The construction contractors would be preapproved by the government and the government would compensate the contractor with material price difference so that Tianbao could enjoy a steady construction cost (materials cost limited to a 10% price fluctuation only) . • Since the construction costs are stable, certain profit margins can be ensured from the project.

  19. 2. Business Model • 2.3 Business Projects • Xinglong Pu The projected pretax profit for phase 1 is 1.07bRMB ( EURO 136.2m). In addition  the company will be the beneficiary of land  which it will receive in the form of a grant  with a current value of 1.3 bRMB (EURO 163m)whenphase four development is completed. The company will have accumulated  sufficient cash flow by the end of phase 1   to be able to develop phase 2 thru 4 and generating a cumulative profit  of  2.21b RMB (EURO 276m ) pretaxon the  fourphases.

  20. 2. Business Model • 2.3 Business Projects • XinglongPu Xing Long Pu project consist of total land area of 270,000 square meters. Whole project divided into 4 phases.

  21. 2. Business Model • 2.3 Business Projects • Zhongyuan West Road The project is located on a junction of two major roads cutting across Zhengzhou City. The project has a land area of 2.84 acres (11,473.91 m2). Two tower blocks and a shopping mall will be built and completed on or before December 2014. The first being a 26 story office block comprising of 12,800 m2 of office space. A second tower has been designated to house a four-star hotel with 280 rooms, banqueting rooms and conference facilities. The hotel will have to be operated by an acceptable operating company. The shopping mall has a letter of intent from a triple A tenant to lease the whole area with 20% below market. The properties upon completion as estimated by the company will be worth at least EURO 48 Million.

  22. 2. Business Model • 2.3 Business Projects • Jinshui District This project in Jinshui District, Wangzhuang Village. It is located at the central business district of the city. The project has a land area of 11.81 acres, which gives a construction area of 301,434m2. The estimated sales proceeds is RMB 2.26b (EURO 285m) of which RMB 754m (EURO 94m) is profit. The project will built 3,349 residential units.

  23. 2. Business Model • 2.3 Business Projects • Xushui County The project is located at the junction of Zhengshang Road and Kaixuan Road, which is the way to ancient capital Luoyang city. This project would have a construction space of 533,360 m2 from the 32.95 acres of land. The estimated sales proceed is expected to be RMB 1.87b (EURO 235m) with a profit of RMB 531m (EURO 67m). The project has a plan to build 5,926 residential units.

  24. 2. Business Model • 2.4 Project Locations A C D B A= Xing Long Pu B= Zhong Yuan West Road C= Jin Shui District D= XuShui County

  25. 2. Business Model • 2.5 Business Outlook Xing Long Pu Project phase 1, Tianbaowill build 12 apartment blocks of residential units as well as 5,000 sq meters of retail space and 1,500 parking spaces.

  26. 3. Target Group & Markets • 3.1 Target Group and Markets • The Target group aimed by the company are those transient, poor and low-income labor class families and as well as pre-marriage young generation groups. • Since the demand for affordable houses cannot be satisfied in view of the rapid growth in Zhengzhou’s population. For the next five years the market of affordable houses will assume substantial growth . 26

  27. 4. Schedule • 4.1 Timetable • The ZhongyuanWestroad project will start at August 2013 and finished on or before March 2015. There will be a shopping mall, hotel and commercial office tower. • The Jinshui District project will start at April 2015 and will be finished at Dec 2016. There will be a total of 15 buildings with 3,349 apartments. • The Xushui County project will commence construction Nov 2016 and will be finished at Sep 2019. There will be a total of 39 buildings with 5,926 apartments. At the same time, Tianbao would acquire more lands to develop new projects.

  28. 5. Financial Data • 5.1 Financial Statements (Calculated based on exchange rate of 7.96 RMB to 1 EURO) * Awaiting for capital injection and the proceeding of documentations with government.

  29. 5. Financial Data • 5.2 Profit forecast (Calculated based on exchange rate of 7.96 RMB to 1 EURO)

  30. 5. Financial Data • 5.3 Project summary * Including 60,000 square meters rental shop area and 5,000 car park units

  31. 6. Reasons to invest • 6.1 Investing in Tianbao Holdings Limited • The company is focused on economically affordable housing; • Steadily growing demand; • In Zhengzhou, there are at least one million people who fall into the low income population, living in squalid conditions, and who are in need of homes; • The GDP target of 12th Five-Year Plan in Henan province plans to be double; • In the next ten years there will be a marriage boom causing housing demand to sharply rise; • Henan Province announced a new policy – people purchasing first apartment may get up to 30% discount on interest rates.

  32. 6. Reasons to invest • 6.1 Investing in Tianbao Holdings Limited • “The government is pushing in two directions as it seeks to slow price growth while avoiding a collapse. It’s lowering borrowing costs for first-time homebuyers to encourage purchases while Central Government keeps curbs in place to stem the speculators who have helped drive home prices up by as much as 140 percent since 1998. China’s 18 percent first-quarter drop in home sales contributed to the slowest economic growth in almost three years. • The benchmark rate for mortgages in China is the five-year lending rate set by the People’s Bank of China, currently 7.05 percent.” • (By Bloomberg News April 26, 2012 )

  33. 6. Reasons to invest • 6.1 Investing in Tianbao Holdings Limited • “China Steps Up Support for Some Home Buyers. The government has encouraged banks to offer lower mortgage rates for first-time home buyers, called on developers to increase construction of smaller and cheaper apartments, and provincial governments to loosen property restrictions at the local level. • In addition to these sector-specific measures, it has also eased monetary policy aggressively—the People’s Bank of China cut interest rate last week, its first such move since December 2008—and required banks to deposit less cash as reserves with the Central Bank.” • ( By The Wall Street Journal June 15-17, 2012 )

  34. 6. Reasons to invest 6.2 China eyes more affordable housing next year 2012-12-25 07:39:28 GMT2012-12-25 15:39:28(Beijing Time) SINA.com China will continue to build millions of affordable housing units and stick to control measures on the property sector next year, the minister of housing and urban-rural development said Tuesday. The country plans to start construction on 6 million affordable housing units and complete the construction of 4.6 million units in 2013, Jiang Weixin, the minister, told a national work conference here. He also urged "unswervingly" carrying forward with property controls. Differentiated credit and tax policies and purchase restrictions in the sector should continue in order to curb speculative and investment demand on the housing market, Jiang said. The remarks came as Chinese real estate developers' share prices surged on Tuesday over anticipation that strong housing demand will be generated by the country's urbanization process. Urbanization is considered as a main driver for domestic demand and will be actively and steadily pushed forward in 2013, according to a statement issued after the central economic work conference earlier this month, which set the tone for policymaking next year.

  35. 6. Reasons to invest • 6.3 Investing in China • China's economy can still maintain a rapid growth rate over next decade; • Over the next ten years, steady appreciation of RMB appears to be a trend which will benefit foreign investors.

  36. 7. Partners • Stock Exchange : Berlin Stock Exchange, Frankfurt Stock Exchange • Market Maker: Renell AG • Clearing: Clearstream • Auditors: Gregory Scott International CPA • Bankers: HSBC (HK) • Press Releases: IR World Press • Finanzkommunikation GmbH

  37. 8. Listed European Exchanges • Frankfurt Stock Exchange • Currency: EuroTicker: 3TBCode Number: A1JGC2 • ISIN: BMG887252085 • Berlin Stock Exchange • Currency: EuroTicker: 3TBCode Number: A1JGC2 ISIN: BMG887252085

  38. 9. Contact Tianbao Holdings Limited Address: 13Floor, International Development Building, NO.333, Yu Feng Road, JinshuiDistrict, Zhengzhou City, China Post Code : 454000 Website : http://www.tianbaoholdings.com Email: tianbaoholdings@gmail.com Tel : 0086-371-86021713 Fax : 0086-371-86163673