CHAIRMAN'S STATEMENT

On behalf of the board (the “Board”) of directors (“Director”), I hereby present the annual report of Dowell Property Holdings Limited (“Dowell Property” or the “Company”) and its subsidiaries (together the “Group”) for the year ended 31 December 2015.

In 2015, the overall economic environment of China contained a number of uncertainties. The continued slowdown of economic growth exerted pressure on the business of enterprises. The Group maintained a steady business strategy and facilitated improvement of our results through developing financial leasing services, improving property investment services and seeking appropriate long-term investment projects.

In September 2015, the General Office of the State Council of the People’s Republic of China published the “Guiding Opinions of the General Office of the State Council of the People’s Republic of China on Accelerating the Development of Financial Leasing Industry”, by which it generally and systematically deployed the acceleration of development of the financial leasing industry, aiming at putting the financial leasing market among the top of the world in terms of size and competency by 2020. During the year, the Group continued to commit to the development of financial leasing services. In March 2015, the Group further invested on Dongkui Financial Leasing and the registered capital of Dongkui Financial Leasing was increased accordingly. Dongkui Financial Leasing has been proactively looking for suitable clients since its establishment, and expanding its business network to strive for more opportunities. Dongkui Financial Leasing currently has more than 10 equipment leaseback projects in negotiation.

In terms of property investments, in order to control the fall of rental income from Dong Dong Mall, the Group carried out a massive general renovation project for Dong Dong Mall and took an active role to attract quality tenants during the second half of 2015.

Under the principle of prudent investment, the Company has always been looking for suitable investment or business opportunities to diversify the business of the Group with an objective to broaden the Group’s income sources. In June 2015, the Company acquired Sol Chip Limited (“Sol Chip”), which is an Israeli solar energy technology company with extensive experience in the semiconductor industry, and is the supplier of Internet of Things (“IoT”) system and energy access solutions as well, which mainly sells sustainable solar batteries and related system solutions. The design and technology of Sol Chip are unique and leading-edge, which include the maintaining of eternal solar batteries for IoT and its communication platform etc.