Koon Holdings Ltd

Investments

We acquired 49% of ordinary shares in Tesla in July 2010 and raised our stake through the acquisition of 19% preference shares in Tesla in June 2011.

Our investment in Tesla Holdings Pty Ltd ("Tesla") provides us with a direct channel into the lucrative Australian energy market.

Tesla is an Australian energy infrastructure company with core capabilities to build and operate power stations that provide peak power to the State of Western Australia. Tesla has successfully attained capacity credit allocations from the Independent Market Operator ("IMO") of Western Australia, allowing it to access and supply electricity to the state grid system.

It has started on the construction of a 9.9MW diesel power plant in Western Australia that will be completed in the second half of 2011.

In addition, we acquired a majority stake in GPS Alliance Holdings Pte. Ltd. (“GPS Alliance”) that owns premier real estate agency, Global Property Strategic Alliance Pte. Ltd., which is involved in a wide spectrum of real estate services that includes Corporate Leasing services; Investment Sales; En-bloc Sales; Full-time Sales; and Domestic and International Project Sales. Since its establishment, GPS Alliance has made significant progress in expanding its business network via regional strategic alliances.