Asset disposals in progress Recently sold a 19% stake in Mawan Power for HK$815m

1. Our strategy and fundingJoe Zhang, COO & Executive Directorwww.shenzheninvestment.com7 December 2006Disclaimers on final page

2. Asset disposals in progressRecently sold a 19% stake in Mawan Power for HK$815m City Government Public 49% 51% Shenzhen Investment 24.3% 91% 22.8% 80% 31.1% Jingdong Road Coastal Greenland Road King Transport Property Development Industrial:ColourDisplay, etc CATV Shenzhen Rental Property HK$2.8bn Selling for about HK$500m SHENZHEN INVESTMENT

3. Our NAV estimate(un-audited)Assuming liquidation value, not DCF estimatesRefer to Disclaimer on final page SHENZHEN INVESTMENT

4. 7 key components in our strategy • Buy: Buy land at low costs, focusing on “special situations”, not auctions • Sell: Sell almost all non-core business by June 2007 • Acquire: Acquire controlling stakes in troubled rivals, IPO aspirants that are too small, troubled factories, or cash-strapped entities with land • Unlock: Free up cash from vast under-performing rental property. How? Sell some units, raise rents, refurbish, plug loopholes, and cut expenses • Re-develop. Most of our rental property is in Shenzhen, providing vast redevelopment potential given ever-tighter land supply and rising land prices • Motivate: Our incentives system is backward. An overhaul is planned • Narrow: Narrow stock price discount to NAV by sharpening focus, improving transparency, and accelerating asset turnover SHENZHEN INVESTMENT

5. How we will boost land reserves • Locations: in order of priority: Guangdong, Hubei and Hunan • Our pre-sale of two projects in Bao An, Shenzhen, in late October saw an ASP increase by Rmb3,000 –4,000 per square meter, despite credit tightening. That pleasant surprise shows that Guangdong remains the most attractive property market (Refer to press release on our website) • We will only seek land reserves via “special situations” • More acquisitions: Aiming for majority controls • We are in advanced negotiations to acquire 2m+ square meters of GFA in land reserves in 2-4 months (mostly in Guangdong) SHENZHEN INVESTMENT

6. Road King and Coastal Greenland vs. our strategy • Road King accounts for 19% of our estimated NAV, and Coastal Greenland only 8% (Refer to NAV data) • These ratios will shrink with rapid growth of our own land bank and project completion • The two associates provide us with additional profits, expertise, market intelligence, and opportunities for collaboration • We will continue to explore M&A opportunities, aggressively • However, our focus is on our own property development business. In acquisitions, we will remain careful on valuation, synergies, and prospects for partnerships • Next acquisitions will see us taking majority controls SHENZHEN INVESTMENT

7. Potential rivalry with Road King and Coastal Greenland? • We have been an “active passive investor” in Road King, though it may sound contradictory in terms • We will continue to be active in Road King, and will be active in Coastal Greenland • They mainly operate in northern China, while we operate in the south • We have a very small combined market share in a very fragmented property market • We do not expect to compete, and will embrace collaboration at project levels SHENZHEN INVESTMENT

8. Sharper focus on property development • Rental property accounts for 61% of our book value, and generates little returns (Refer to Page 18) • We plan to cut its size, raise rentals, refurbish some buildings, plug loopholes, and most importantly, re-develop some sites (given their good locations in Shenzhen) • Jingdong Expressway accounts for only 7% of our estimated NAV, and that ratio will shrink with rapid growth of our property development business. Roads will perform the same function as rental property is our company, ie, provide stable & recurring incomes • We will add very little to our rental property in the future. Our focus is to accelerate asset turnover and residential property development SHENZHEN INVESTMENT

9. Can we cope with high growth? • We are a high-growth company, having increased our projects under construction from just 4 in February to 10 today. We want to achieve sustainable growth • As an employer of choice, we have attracted many talents in the past decade, and have under-utilized these resources • With the revamp of our compensation system, and staff empowering programs, we expect the HR potential to be better realized • We will continue to recruit the best talents from the market SHENZHEN INVESTMENT

10. The government vs. us • The government’s stake in Shenzhen Investment has fallen to 49% after the new share issue on 26 October • It is possible that strategic investors would be introduced through the government selling old shares, injecting expertise and checks and balances into the company • Our government background has pros and cons. We are inefficient and our incentives system inflexible. • However, our multiple layers of Compliance ensures that we stay prudent. They also project confidence and assurance to our business partners (including government entities) SHENZHEN INVESTMENT

11. Our recent new share issue • We issued 300 new shares on 27 October at HK$2.91 apiece • We did not plan to issue new shares until we started to negotiate for the two very promising pieces of land in Shenzhen • Management collectively had an 8.3% interest in the company (via stocks and options), and have been diluted to 7.4% • We believe the new share issue is in the best interest of all shareholders • Our net gearing has fallen to 19%, enabling us to raise more debts to finance acquisitions. Our target net gearing is 60-70% • Cost of our 5-year unsecured syndicated loan (size: US$465m) signed in October 2006 carries a very competitive interest rate, proving our strong relationships with banks SHENZHEN INVESTMENT

12. Our gearing will be very low,allowing us to gear up to acquire land, and competitors(Refer to Disclaimer on final page) SHENZHEN INVESTMENT

13. Our war-chest: about HK$4bn • Potentially, we could have the capacity of spending about HK$4,000m on acquisitions of land and competitors in the next six months • Money will be used very carefully to ensure value enhancement • Our average cost of land acquisitions will be around HK$2,000/sqm in Shenzhen, and below HK$1,000 elsewhere. • Both figures are much below market prices • Our financing capacity will allow acquisitions of 2m sqm of land reserves in Shenzhen, and 2-4m elsewhere SHENZHEN INVESTMENT

14. Recent events • Oct. 2006, issued 300m new shares at HK$2.91 apiece • Oct. 2006, acquired 22.8% of Coastal Greenland (1124.HK) • Oct. 2006, signed a syndicated loan of US$465m • Acquired a 91% stake in Jingdong Expressway for Rmb1,205m • Signed agreement to sell Mawan Power’s 19% stake for an exceptional profit of HK$371m, and proposed a special dividend • Our 24.3% associate, Road King, obtained an option to acquire 49% of Sunco, one of largest Chinese property developers • On 14 Oct. 2006, sold 60 large residential units in Bao An (Shenzhen) within one hour (at an average selling price of Rmb12,900/sqm) • On 28-29 Oct. 2006, a 29% associate sold 859 residential units also in Bao An in 2 days at an average selling price ofRmb8,300/sqm • 2H 2006, put all other non-core business to the market SHENZHEN INVESTMENT

15. Expected land acquisitions in next 4 months: attributable 2m sqm GFA • 0.50m sqm attributable in Dongguan, Guangdong • 0.5m sqm in Huizhou, Guangdong • 1m sqm (GFA) in Shenzhen So far in 2006: acquired at least 1m sqm attributable GFA • 130k sqm in Dongguan, Guangdong • 260k in sqm Longgang, Shenzhen (costing HK$770m) • 620k in sqm Huizhou Zhongkai Industrial Park, Guangdong (land area) (To cost HK$200m) SHENZHEN INVESTMENT

16. Property completion schedule:Under review for potential upgradeExcluding Road King, and Coastal Greenland SHENZHEN INVESTMENT

17. Land bank locations Where land premium has been fully paid SHENZHEN INVESTMENT

18. Investment property: 61% of our book valueVery low returns a major concern. Re-development eyed SHENZHEN INVESTMENT

19. Disclaimers • This presentation is prepared in good faith, based on audited financial data, publicly available information, and management’s outlook as of today. Macroeconomic parameters could change unexpectedly. The Company’s operating environment and thus strategies could change as a result and without notice. • This presentation does not constitute an offer or an invitation to make an offer for the sale or purchase of the share in the Company trade this or any other stock. Stocks can go down as well as up. Historical performance is no guarantee for the future. • The NAV estimates in this document are for reference only, and have nothing to do with our views of potential realizable values. • This presentation does not constitute any advice or recommendation to invest in the Company and is not intended to form the basis of any investment decision. • The presentation includes certain statements and estimates of the Company based on various assumptions that may or may not prove to be correct and involve various risks and uncertainties. Accordingly, there can be no assurance that such statements or estimates will be realized. SHENZHEN INVESTMENT