China Railway Logistics Limited (SEHK: 8089) entered into an agreement to acquire 30% stake in Sure Progress Investment Limited from Ng Wai Huen for HKD 40 million on January 20, 2012. Under the terms, China Railway Logistics Limited will pay the consideration by issuing promissory notes for 0.015 million shares of Sure Progress. As at December 31, 2011, Sure Progress had net assets of HKD 0.00255 million. The Directors of China Railway Logistics consider that the terms and conditions of the agreement are fair and reasonable and the entering into of the agreement is in the interests of China Railway Logistics and the shareholders as a whole. The transaction is expected to complete on or before January 31, 2012.

China Railway Logistics Limited (SEHK: 8089) completed the acquisition of 30% stake in Sure Progress Investment Limited from Ng Wai Huen on January 31, 2012.

China Railway Logistics Limited (SEHK: 8089) cancelled the acquisition of 30% stake in Sure Progress Investment Limited from Ng Wai Huen on January 8, 2013. As certain conditions precedent of the repayment of the promissory note had not been fulfilled or waived by December 31, 2012, so the agreement was terminated accordingly. Pursuant to the agreement, upon the termination, the stake shall be refunded to Ng Wai Huen by China Railway Logistics whereas China Railway Logistics shall return the promissory note to the China Railway Logistics for cancellation.