1 Project General

　 1.1 Project No.: 081

　 1.2 Project Contact Unit: Guangxi Tongji Pharmaceutical Co., Ltd.

　 1.3 Negotiation Representative: Yu Yunhui

　　 Tel: +86-771-3176600,13807800789

　　 E-mail: yyhui8cn.yu@vip.sina.com

　　 Negotiation Representative: Chen Jiemiao

　　 Tel: +86-771-3176600,13809772379

　　 Fax: +86-771-3176674

　　 Add: No. 5, Beiji Road, Nanning, 530011

　 1.4 Project Site: No. 5, Beiji Road, Nanning

　 1.5 Total Investment: USD 6.04 million

2 Project Scope, Size and Capital Compositions

　 2.1 Project Scope and Size

　　 The precedent of Nanning Tongji Hospital is Nanning No. Two Light Industrial Hospital founded in 1957. In September of 2000 it was merged with Guangxi Tongji Pharmaceutical Co., Ltd. and changed to the present name. It is now the largest non-governmental stock polyclinic hospital in Guangxi. It is also an experimental unit for medical treatment system reform for Guangxi Hygiene Department and Nanning Hygiene Bureau . It is also a hospital designated for medical insurance for city and town staff in Guangxi and Nanning. Situated by the Yongjiang River in the center of Nanning , the capital city of Guangxi, the hospital takes up an area of 16.3mu, with 6570.18m2 for medical operation buildings with 130 beds, more than 50 million yuan as the total asset.

　 2.2 Capital Compositions

　　 Guangxi Tongji Pharmaceutical Co., Ltd. plans to make an investment of 50 million yuan in the project (of which sum 30 million yuan is self-investment and 20 million yuan is to be introduced from investors). At the moment, the hospital has made an investment of 18 million yuan.

3 Brief Introduction of the Project Contact Unit

　 Guangxi Tongji Pharmaceutical Co., Ltd. is a large-scale pharmaceutical enterprise with over 170 medicine retail chain stores and Nanning Tongji Hospital set up in accordance with international standard. Through years of hard work, it has now become one of the top ten star private enterprises with outstanding achievements, strong competitive power, biggest size of trans-regional franchise operation, the most varieties and biggest benefit, etc. in Guangxi. The company is also a key protected enterprise in Nanning . Its General Manager , Mr. Yu Yunhui, is awarded the honorary title of Top Ten Outstanding Youth of Naning. In 2004 the Tongji Grand Drugtore under Guangxi Tongji Pharmaceutical Co., Ltd. plans to open another 170 chain stores in Guangxi and 100 chain stores outside of Guangxi in addition to the existing 170 ones, trying to reach a total of more than 400 store with a sales volume of over 600 million yuan.

4 Project Market Analyses

　 Presently over 95% of the medical institutions are state-owned and it is still impossible to meet the market demands with their system(90% of the medical institutions in developed countries are run by private entities or non-government institutions). As Guangxi is relatively backward in terms of medical technical levels and market operation level compared with developed areas in China, there are at present only a few polyclinic hospitals in Guangxi. Therefore the project has a bright prospect for investment and a relatively stable high return.

5 Supporting Advantages of the Project

　 The project is located on Beiji Road by Yongjiang River, less than 1000m away from Chaoyang Business District of Nanning. The traffic is convenient with water supply, power supply and gas supply readily available.