1 Project general

　 1.1 Project No.: 107

　 1.2 Project Contact Unit: Nanning Weining Asset Management Co., Ltd.

　 1.3 Negotiating Representative: Li Jun

　　 Tel.: +86-771-2189098,13307810888

　　 Fax: +86-771-5701130

　　 E-mail: wnzc@wnzc.com

　　 Contact Add: 6th Floor, Finance Building, No.129 Dongge Road, Nanning 530022

　 1.4 Project Site: Nanning

　 1.5 Total Investment: USD19.3 million

　 1.6 Anticipated Economic Benefits: Internal Rate of Return of 15% ～ 25%

　 1.7 Pattern of Cooperation

　 1.8 Progress of Project Preparation

　　 In-depth market analysis has been conducted and broad contact has been made with the governmental purchase departments and large hospitals in Guangxi for the implementation of financing lease for medical equipment.

2 Project Scope, Size and Capital Compositions

　 2.1 Project Scope and Size

　　 To introduce financing lease (or financial lease) strategic partners and set up a joint-venture leasehold company to fully engage in the financing lease business of production equipment, medical equipment, educational and scientific research equipment, testing and examination equipment, large-sized electronic equipment, environmental protection equipment and municipal public service equipment, etc., cooperating in the development of the market in Guangxi. It is expected to expand the stock to a total of 160 million yuan this year.

　 2.2 Capital Compositions

　　 Nanning Weining Leasehold Industry Co., Ltd., the holding company of Weining, will take up 20% ～ 30% of the shares while the invited party will take up 70 ～ 80% of the shares as the holding party.

3 Brief Introduction of the Project Contact Unit

　 Weining Company, a state-own sole investment company with independent corporation qualification and with a registered capital of 500 million yuan, was officially founded in April of 2002 with the approval of the municipal government. On behalf on the Municipal Government, the company has possessed the property right over the national assets, stock ownership and the property right to the auxiliary municipal facilities of the party and governmental institutions, organizations, public institutions, etc. The business scope of the company covers such fields as asset operation, capital management, development and management of auxiliary municipal facilities, real estate development and house property management, etc.

4 Market Analysis of the Project

　 At the moment the capital market in Guangxi is still underdeveloped, with limited channel for financing and the equipment financing lease is still a blank in the market. Therefore there is a huge market potential. With the economic development in China after its accession into the WTO and the rectification of the lease industry in China, there will come a booming development in the lease industry . Through the regulation by the lease industry, we can reach the goal of economizing on investment, optimizing the allocation of resources and realizing the aim of sharing of resources. Prospect is especially bright for the leasehold business in the field of governmental investment (or governmental purchase).

5 Supporting Facilities for the Project

　 Nanning Weining Leasehold Industry Co., Ltd. has rich experience in leasehold business with many potential clients. As the business and trade center of Guangxi, Nanning has good channels to equipment information.

6 Project Competitive Advantages

　 As there is not any kind of financing lease business in Guangxi, there is no competitor in Guangxi in this field.

　 6.1 Applicable Preferential Policies : The project is entitled to the preferential policies for the Western Development and that for foreign investors.

　 6.2 Other Advantages of the Project

　　 Equipment purchase through financing lease can further normalize the purchasing practice of the departments concerned, reduce the cost of purchase, avoid blindness in investment, and play an active role in improving the efficiency of capital utilization, evading the risk of technology being washed out and speeding up of equipment updating, etc. The main advantages are shown in the following fields:

　　① There is no such operation in Guangxi at the moment and there is a broad market there.

　　② By making use of the idle equipment , we can improve the efficiency of equipment utilization.

　　③ By centering around the financial investment (or governmental purchase), we can convert the financial direct investment into regulating investment to magnify the capacity of financial investment.