Code Agriculture (holdings) Limited
Government in Wan Chai

Code Agriculture (Holdings) Limited (formerly known as China Chief Cable TV Group Limited) completed the acquisition of the entire issued share capital of Kang Yuan Universal Investment Limited ("Kang Yuan Universal") in February 2010. The subsidies for the industry have exceeded RMB 12 billion each year since 2008. Since then, the Chinese government comprehensively launched the modernisation in tobacco agricultural industry by introducing a series of policies. In 2007, the State Tobacco Monopoly Bureau has made it clear that the direction of the future development in Chinaﾒs tobacco agriculture is to promote the moderisation in tobacco agricultural sector. The tobacco industry is also a major contributor of tax revenue of the country, with its profit for the year 2010 of approximately RMB 630 billion, representing a growth of more than 20% compared to 2009 and nearly one-tenth of the total tax revenue of the country. China is now the largest country in cigarette consumption, accounting for approximately one-third of the worldﾒs total consumption. The Group has stepped into the huge market of tobacco agriculture in China by this acquisition. Upon completion of the acquisition, Kang Yuan Universal has become a wholly-owned subsidiary of the Company, which in turn holds 100% equity interest in Jiangsu Kedi Modern Agricultural Company Limited ("Kedi"), a company engaging in the modern tobacco agricultural technology business in China. Chinaﾒs tobacco agriculture is at a stage of constant growth and changes.