1. Project General

　 1.1 Project No.: 082

　 1.2 Project Contact Unit: Nanning Minzu Film Cultural and Recreational Co., Ltd.

　 1.3 Negotiating Representative: Guo Wei

　　 Tel: +86-771-5877141 / 13807715818

　　 Fax: +86-771-5877141

　　 Add: No. 1-2 Gucheng Road, Nanning, the Preparatory Office of Nanning Minzu Film Cultural and Recreational Co., Ltd.

　 1.4 Project Site: By the side of Shixiangkou Street, Minsheng Square, Mid Jiangbei Dike and Road Garden, Nanning (facing Jiefang road on the north, just bound on Minsheng Square to the south and facing the extension of Xinhua street on the east).

　 1.5 Total Investment: USD22.7 million

　 1.6 Anticipated Economic benefits:

　　● investment rate of profit is RMB 517 million yuan.

　　● internal rate of return is 36.3%.

　 1.7 Pattern of Cooperation: Joint venture or cooperation

　 1.8 Progress of Project Preparation

　　 The blueprint of the planned land used and the plan design have been determined.

2. Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity

　　 Total area of land use of the new Minzu Cinema Town is about 18.3 mu, and volumetric rate is 6.5. It is intended to construct a five-star cinema and its relative supporting recreational and cultural grounds. And the buildings still include a shopping mall of 20 thousand m2 and an apartment building of 20 thousand m2. The total building floor area is about 53 thousand m2.

　 2.2 Capital Compositions

　　 The total investment is about RMB 188 million yuan, of which construction investment is RMB 128 million yuan, and the investment in land is RMB 40 million yuan mainly used in the resettlement project. The dismantled area is expected to be 1,900 m2.

3. Brief Introduction of the Project Contact Unit

　 Nanning Minzu Film Cultural and Recreational Co., Ltd. was established on the basis of Minzu Cinema Town, which was separated from Nanning Municipal Film company. Its predecessor Minzu Cinema Town was a brand cinema integrated with film projection, catering, guesthouse and cultural recreation all in one in Nanning. It was well known through the Guangxi, even the country film market. As the only special-grade cinema in Guangxi, its spectators reached annual average of above 400 thousand people/times, and its box-office earnings made up a half of that of Nanning film market, and a third of that of Guangxi film market.

4. Project Market Analyses

　 New Minzu Cinema Town is located at the highlight of Mid Jiangbei Dike and Road Garden project in Nanning, a place that is the golden commercial belt in the downtown area. Moreover, it is bounded on Minsheng square which is a large commercial pedestrian square and a holiday cultural mall. On the Xingning and Minsheng pedestrian mall linking with it, merchants come in large numbers, and huge crowds of people shuttle to and fro. These must bring boundless commercial opportunities to the new Minzu Cinema Town.

5. Supporting Facilities for the Project

　 5.1 The conditions of supporting facilities such as traffic, communication, water and power supply:

　　● Traffic: This project faces Jiangbin Road on the south, Jiefang Road on the north, and faces Shixiangkou Street at the west, all of which can be used as assistant emergency exits. As far as traffic is concerned, it is also very convenient.

　　● Communication: Communication service will be settled by making use of existing communicational network lines in the territory of planned use land for the new Minzu Cenema Town after negotiation with the municipal department of telecommunication. Signal receiver should be installed on top of the building to ensure the signals of mobile communication unblocked after the completion of the building, thus shortfall of the signals is also cleared.

　　● water supply: The project can use the existing municipal water supply system as its water source.

　　● Power supply is good enough to meet the load demand for fire fighting, ,high voltage and low voltage distribution, lighting distribution, and power distribution of electricity.

6. Project Competitive Advantages

　 6.1 Applicable Preferential Policies

　　 This project is in line with the preferential policies concerning the engineering of public infrastructure facilities construction and urban reconstruction project. Besides, it can enjoy applicable preferential policies according to the Decision to Further Accelerate the Development of Self-Employed and Private Economy issued by the CPC Nanning Committee and Nanning Municipal People’s Government.

　 6.2 Other Advantages of the Project

　　 CPC Nanning Committee and Nanning Municipal People ’ s Government greatly value the reconstruction of The New Minzu Cinema Town.