The Ministry of Natural Resources of China released Document No. 38 during the National Two Sessions. Lai Zhengyi, Chairman of Xianglin, stated that the value of Xianglin's real estate in Nanjing exceeds NT$6 billion and will be sold at a premium; the development project in Chengdu's Jinniu District has a saleable floor area of approximately 700,000 square meters, with an overall sales amount of about RMB 21 billion, and the project volume is expected to see explosive growth starting from the second quarter of this year.

Lai Zhengyi pointed out in a press release today that the Chinese government is fully boosting the real estate market. The "Ministry of Natural Resources of China in conjunction with the National Forestry and Grassland Administration" issued a notice two days ago titled "Notice on Further Ensuring the Supply of Natural Resource Elements," referred to as Document No. 38, which states that no more land will be provided for real estate development, making existing land and housing in first- and second-tier cities suddenly scarce and sought after.

He said that Document No. 38 is a significant policy of "controlling land increase," as the government directly stops supplying land, which also indicates that the real estate market in mainland China has stabilized, and new homes have become limited edition collectibles. Those holding land in core areas can be said to have valuable assets, and a significant price increase is expected; moreover, in the three days following the government's announcement, there has been a surge in viewings and purchases of second-hand homes, and the reception centers for newly launched pre-sale homes have seen a large influx of buyers lining up to choose homes.

He pointed out that Xianglin's "Hanbi Tianxia" development project in Chengdu's Jinniu District has acquired 300 acres (approximately 60,000 ping) of land, with a saleable floor area of about 317,600 ping, and the land was acquired at only RMB 1,470 per square meter at the time; the saleable residential and commercial floor area is approximately 700,000 square meters, with the current unit price at about RMB 30,000 per square meter, resulting in an overall sales amount of approximately RMB 21 billion, equivalent to about NT$96 billion.

He said that with Document No. 38 now in effect, it is estimated that the unit price will rise to over RMB 40,000 to 50,000. If the unit price increases by RMB 10,000 per square meter, based on the saleable area of 700,000 square meters, the potential sales amount could increase by about RMB 7 billion, equivalent to about NT$32 billion.

Lai Zhengyi stated that the Xianglin board approved the sale of real estate in Qingdao at the end of last year, which could yield NT$5 billion in revenue, expected to be recorded soon; the Nanjing real estate will also be positively impacted by Document No. 38, with an anticipated revenue of NT$6 billion upon completion of the sale, expected to be finalized by mid-year.

He expressed that the release of Document No. 38 is expected to significantly increase the repatriation of profits from Xianglin's investments in mainland China, which is a major positive for Xianglin's operations