Key Projects For Foreign Investment In Guangxi China (2005)

F. Assets Reorganization

155

F1

Liuzhou --Yizhou Expressway (Guangxi Communication Department )

An expressway for 136 km.

from Liuzhou to Yizhou

had been built

16413

Transfer of the Right of Collection of Toll Charge

in operation

Gusahngxuan Tel: 86-771-2115059

156

F2

Nanning-Beihai Expressway (Guangxi Communication Department )

An expressway for 170 km.

from Nanning to Beihai

had been built

44615

Transfer of the Right of Collection of Toll Charge

in operation

Gusahngxuan Tel: 86-771-2115059

157

F3

Hepu--Shankou Expressway (Guangxi Communication Department )

An expressway for 37 km.

from Hepu to Shankou

had been built

11343

Transfer of the Right of Collection of Toll Charge

in operation

Gusahngxuan Tel: 86-771-2115059

158

F4

Nanning Express Ringroad (Nanning Fund Raising Office for Construction of Key Projects)

two-way traffic lanes with a total length of 41 km.

Nanning city

had been built

35825

Transfer of the Right of Collection of Toll Charge

The estimated income from toll charge is $27.778 million

in operation

Yangguihong Tel: 86-771-2189162 Fax: 86-771-2189178

159

F5

Special Tourist Road from Guilin to Mopanshan Wharf (Guilin Guimo Highway Construction Co., Ltd.)

The road is a two-way six-lane highway with a total length of 21.6 km and a width of 558 m .

Guilin city

had been built

6713

Joint-venture, cooperation or transfer

in operation

Huangjiacheng Tel: 86-773-2825550

160

F6

Transfer of Management Right for the Special Highway of Guilin Liangjiang International Airport (Guilin Airport Road Management Co., Ltd.)

The total length is 25.66 km, of which the urban section is 11.44km and the highway section is 14.22km.

Within Guilin city and Lingui County

It is a special highway equipped with the most complete toll collection and other supporting facilities within Guangxi .

4230

Transfer of the Right of Collection of Toll Charge or others

By 2020, the accumulated income from the toll charge will exceed $ 72.46 million.

in operation

Hexingfeng Tel: 86-773-3880115+K281

161

F7

Nanning International Convention and Exhibition Center (Nanning Fund Raising Office for Construction of Key Projects)

The construction area is about 160000 sq.m.with 3400 standard booths. For the first phase, the total area is 110000 sq.m.with 2000 standard booths, The total area for the second phase is 50000 sq.m. with 1400 standard booths.

Nanning city

It is located in the Langdong New Area adjacent to the Express Ringroad with complete facilities for traffic, water and power supply and communications.

18116

Transfer of the whole property

①Project proposal

Yangguihong Tel: 86-771-2189162 Fax: 86-771-2189178

162

F8

Guilin International Convention and Exhibition Center (Guilin High-tech Zone Management Committee)

The total construction area is 51000 sq.m.divided into six exhibition halls with 2000 booths of international standard.

Guilin city

had been built

3600

Joint-venture, cooperation or transfer

in operation

Linyejiang Tel: 86-773-5846608

163

F9

Assets Reorganization for Guilin Air-conditioner Factory (Guilin Air-conditioner Factory)

The factory occupies an area of 49000sq.m.with a total assets of $8.88 million.It mainly produces serial products of air-conditioners.The environment-friendly cooling agent of HFC-134a to replace CFCS and GCFCfor dehumidifiers.Ice-storage air-conditioners can help reduce the cost in operation by making use of the different time-sharing prices for power consumption through storing up cool at the valley of power consumption and using the stored cool at the peak of power consumption.

Guilin city

The factory is located in the center of Guilin with easy traffic access and complete water and power supply facilities. Guilin Air-conditioner Factory is the only enterprise in Guangxi with the permit to produce separate air-conditioners and dehumidifiers. It has a strict and complete management system and passed the ISO9001International Quality Certification in 2001.

910

Joint-venture, cooperation or transfer

The factory is now in normal operation and approval has been obtained from Guilin Economic Commission for the reorganization plan .

Yangzhiming Tel: 86-773-2153003

164

F10

Product Upgrading, Expansion and Relocation of Xinhua Battery Stock-holding Co., Ltd. (Xinhua Battery Stock-holding Co., Ltd.)

Increasing production capacity of dry battery from 500million /year to 1 billion/year. construction of workshops for about 62900sq.m . construction of 3 new production lines for R20S battery,2 lines for R6P and R20P heavy-duty battery. Importing from abroad 2 advanced production lines for non-mercury alkali manganese battery types RA6 /LR6 and RA03 /LR03 together with supporting equipment and technology. The public supporting facilities such as water and power supply facilities, boiler and environmental protection device are available.

Wuzhou city

2586

Joint-venture, cooperation or transfer

The sales income will reach 52.53 million USD after it is put to operation, of which export income of foreign exchange is 31.92 milion USD, the annual total profit is 3.92 million USD, the income tax is 1.29 million USD and profit after tax is 2.63 million USD.

Investment inviter: Wuzhou Investment Promotion Bureau Tel: 86-774-2038278 Fax: 86-774-2028928 Chief Negotiator: Pan Xiaolong Tel; 86-774-2827304

165

F11

Assets Reorganization of Guilin Latex Factory (Guilin Latex Factory)

The total asset of the factory is 18.96 million USD with an annual earning of foreign exchange for 5 million USD. The annual production output for condoms is 700 million pieces and 40 million pairs of medical gloves and other latex products.

Guilin city

With the most powerful production capacity ,the factory has excellent production equipment and high-precision testing instrument, workshops built in strict agreement with the requirements for production of medical appliance , advanced production technology with peculiarity for its products.

To be negotiated.

Joint-venture, cooperation or transfer

It is in normal operation and reorganization plan has been worked out.

Taoran Tel: 86-773-2556606

166

F12

Assets Reorganization of Guilin Internal Combustion Engine Fittings Plant ( Guilin Internal Combustion Engine Fittings Plant)

The plant takes up a total area of 96352sq.m. with 34262 sq.m for the workshops.There are 488 sets of major production equipment.The annual output of steel strip is 3000tons,the annual output for bushes is 12 million pieces and for pistons is 1.2 million pieces.

Guilin city

Registered staff members:540 people on the job,47 people waiting for the job,449 people are retired , 297 people are miscellaneous workers and 68 are technical personnel. The business scope includes the production of internal combustion engine fittings and alloy steel strips.Main Line of Products:steel strips, bushes and pistons.

1043

Looking for strategic cooperative partners for revitalizing the plant section by section.

normal operation

Xujingshan Tel: 86-773-2693271

167

F13

Assets Reorganization of Guilin Chemical Fibre Complex [(Guilin Chemical Fibre Complex) of Guilin Hongwei Group Co.]

The complex takes up a total area of 217900 sq.m. Its major products include polyamide fibre threads and garments, etc.

Guilin city

Technological and equipment advantages: the main production technology is introduced from NOY and SINA Engineering companies from Italy. The main equipment is imported from Germany and Japan.

7300

Looking for strategic cooperative partners for revitalizing the plant section by section.

normal operation

Wen Yu Tel: 86-773-2693271 Fax: 86-773-2693256

168

F14

Liuzhou Guizhong Haixun Logistics Co., Ltd

Registered capital of $7.24 million. It mainly deals in transportation of ordinary goods, distribution of information, storage and delivery service, development and sale of software system, e-commerce, consultation service in logistics management and logistics information, freight agency service, etc.

Liuzhou city

The company is in possession of one distribution center of automobile spare parts, Shaziling Consumable Distribution Center and a distribution center for large amount of means of production.The total storage area amounts to 78000 sq.m with two special railway lines of 2500 meters reaching the ware-house platform.The annual handling volume reaches 300000 tons.

We would like to invite our clients to become new shareholders by increase in capital and share , further improve the logistics infrastructure , trying our best to form a new type of stable relationship with our clients.

Through the construction of the base, the company is expected to achieve a turnover of $14.49 million with a profit of $1.81 million by the end of 2008. .

Qin renzhi Tel: 86-772-2853889 2615068 Fax: 86-772-2615886 E-mail: qrz2181@ tom. com

169

F15

Liuzhou Department Store Stock-holding Co. Ltd.

Total capital stock of the company is 19.2898 million shares, of which the state-owned corporate capital is 13.7117 million shares,corporate equity capital is 329.1 thousand shares, individual equity capital is 5.249 million shares.By the end of 2003 ,the total assets is 45.15 million USD, the total liability is 32.77 million USD and the net assets is 12.38 million USD.

Liuzhou city

The company is in possession of the Five-star Commercial Building located in the downtown area of Liuzhou and 14 shop stands, large or small,(of which,7 of them are larger than 1000 sq.m) located on major business streets in Liuzhou with a total busin-ess area of 35000 sq.m dealing in many varieties of goods.

To increase the capital and expand the shares, reducing the rate of state-owned shares to %. Please contact the owner for detailed method for purchase of the shares.

The company is expected to reach a sales volume of RMB 1 billion by the end of the tenth "five-year plan", achieving a profit of $3.62 million with a rate of return on investment at 14.27 %.

Zhangduchu Tel: 86-772-2868096 Fax: 86-772-2861047 E-mail: Lzshangkong@ 163.com

170

F16

Liuzhou Liyu Group Co. , Ltd.

Liyu Group is the largest cotton spinning and weaving enterprise in Guangxi, ranking the top 50 of the cotton textile industry in China . It now has a total of 200000 cotton spindles, 30000 double spindles,and 96 rapier looms imported from Italy and Belgium. The total assets by the end of 2003 is 86.71 million USD, with a total liability of 64.98 million USD and net assets at 21.74 million USD. The main products include the serial products of bunchy yarn, core yarn, and pure cotton yarn, etc.

Liuzhou city

The company has reached its goal of weaving without shuttle. The bunchy yarn , core yarn, combing cotton and polyester cotton yarn with Yufeng Brand have enjoyed a very high prestige in the markets in the south of China and have become the leading products of the company and are very competitive in the market. The Dule Brand cotton cloth is also very popular among the clients.

To transfer the stock rights of Liuzhou Liyu Group Co., Ltd. to the buyer, who, after the purchase, will register for the establishment of a new Liyu Group and enjoys all the rights of the enterprise for operation and ownership.

Yangli Tel: 86-772-2858922 Fax: 86-772-2807976

171

F17

Liuzhou Micro-machine General Plant

Liuzhou Micro-machine General Plant has an annual output of 150000 electric motors of small and medium size and 300000 kva transformers.Up to June of 2004, the total assets of the enterprise is 5.35 million USD, the total liability is 6.915 million USD with a total land area of 27900 sq.m. The plant stopped running in 2003 due to poor turnover of funds. In Feb.of 2004,the enterprise completed system reform on the verge of bankruptcy and all the staff members have been re-employed or properly arranged.

Liuzhou city

The plant is in possession of land, workshops, equipment, technology and manufacturing license for the manufacturing of electric motors, transformers, ceiling fans, and switch cabinets. The trademark of "Xiubo" has been well received in Guangxi, central and south China and southwest China. The products with this trademark can find its market in these regions.

sell all of Liuzhou Micro-machine General Plant.The buyer will change the enterprise system for a plant into a limited company after purchasing the plant.

If the new plant can reach the existing capacity,the expected sales income will reach 6.04 million USD, earning an expected total sum of 600000 USD as profit and tax.

Yangli Tel: 86-772-2858922 Fax: 86-772-2807976

172

F18

Guangxi Silver Snow Flour Co., Ltd.

Its total asset is 60.39 million USD and the total occupied land area is 510 mu. The total volume of various warehouses reaches 200000 tons, with 3 special railway line,an annual processing capacity of 300000 tons for wheat, and foodstuff (noodle) for 10000 tons and feedstuff for 100000 tons.

Nanning city

The company has passed the ISO9001 international quality management certification. The flour in "Junchi" and "Lixue" is the national inspection-free product whose production and sales volume takes up 50 % of the market share in Guangxi.

Tangchunrong Tel: 86-771-3151038 13807813009

173

F19

Youshan Lake Subtropical Ecological Grand Sight Park( Liuzhou Agro - industrial - commercial Integrated Co. , Ltd.)

The project is a comprehensive development one in the Youshan Lake Tourist Agricultural Holiday Resort.It is expected to introduce capital for the construction of the following five functional districts on the total land area of 6000 mu in the planned area: circular road around the lake, Farming Cultural Garden of "Liujiang Man", Rarity Garden of Chinese Tea Culture, Reception Service District of the Grand Sight Park, Water Forest Leisure District, Famous Subtropical Fruits Sight-seeing District, Subtropical Rare Flowers Sight-seeing District, and Subtropical High-tech Agriculture Demonstration District.

Liuzhou city

it is located in the southwest of Liuzhou,7 km away from the center of Liuzhou.With rich natural scenery and cultural connotation,the resort has in it 8 first class sight spots, 25 second class sight spots and 46 third class sight spots.It not only has such hills, water, caves, spring, ponds, and lakes typical of karst landform, but is also rich in prehistorical cultural remains of the paleoanthropic man--Liujiang Man.

Joint-venture or cooperation

Lanyongsong Tel: 86-772-2811743 Fax: 86-772-3350453 E-mail: lzngsgs@ 163.com

174

F20

Guangxi Xinhua Bookstore (Group) Co., Ltd.

Guangxi Xinhua Bookstore (Group) Co., Ltd. is a state-owned sole investment company directly under Guangxi Zhuang Autonomous Region.The company operates and manages the group company and the state-owned property of the bookstores at city-level and county-level that have joint the group company.Total assets was 52.29 million USD in the end of 2003.

Nanning city

Through years of hard efforts, the group company has set up and applied the computerized integrated network system for the management of textbooks, financial affairs, wholesale and retail of books, video and audio materials, storage and transportation, etc., providing a highly efficient information platform for management of the group company and the operation of the chained business operation.

Dangmeiling Tel: 86-771-5878471 Fax: 86-771-5867011

175

F21

Liuzhou Snuff Co., Ltd.

By the end of 2004, the total assets of the enterprise is 15.92 million USD and the total liability is 12.92 million USD, and the total land area is 59000sq.m. In 2002 , the enteprise stopped operation due to lack of capital and other reasons. The system refom on the enteprise was completed in June of 2003, on the verge of its bankcruptcy. All the staff have terminated their employment contracts with the enterprise and have been compensated economically.

Liuzhou city

The brand name "snuff" has repeatedly won the title of Ministerial Famous Brand Name and Provincial Famous Brand Name. In , it was recommended as one of the top ten famous brands in China by the China Association of Household Textile Industry and is of high value as intangible assets.

It is intended to be subject to bankruptcy and the whole of the enterprise be sold out. The buyer will buy the whole property of the enterprise, including land, workshops, equipment and related facilities without taking the existing debt of the enterprise.

The sales target of the new company: Sales volume of 1.2-4.8 million USD yearly, with expected profit of about 120000-480000 USD.

Yangli Tel: 86-772-2858922 Fax: 86-772-2807976

176

F22

Arterial Highway to Qinzhou Port , Qinzhou Hengyuan Traffic Investment Co., Ltd.

The company is a state-owned traffic investment corporation with a registered capital of 17.18 million USD. Its major business is highway investment and construction, management and operation, maintenance and protection, and real estate development.By the end of 2003, the total assets of the company amounts to 32.26 million USD and the total liability amounts to 13.45 million USD, the ownership interest is 18.8 million USD. The asset-liability ratio is 41.71% and the equity ratio is 71.56%.

Qinzhou city

The highway is the only one to Qinzhou Port and to Guangxi Seaside Industrial Park.The enlargement of the road is of great significance to the development and construction of Qinzhou Port and Guangxi Seaside Industrial Park as well as the seaside tourist industry and marine culture. The road starts from the downtown of Qinzhou and ends at Qinzhou Port area, connected to the the Arterial Highway of Qinzhou to Luwu and the secondary road of Nanning to Beihai and Guilin to Beihai Expressway. The total length is 27.5 km.

Transfer of the right of collection of toll charge for a period of 25 years.

According to the traffic forecast,the traffic volume in 2010 is 7357/day. So there is a huge traffic volume and the investment recovery period is short.

Liangxianhua Tel: 86-777-2857109 Fax: 86-777-2857102

177

F23

Phase II Project of Qinzhou Port, Qinzhou Port Authority

Qinzhou Port Authority is an integrated union of administrative entity and enterprise directly under the municipal government of Qinzhou City, exercising the administrative management power on behalf of the government. The property right of Phase II Project of Qinzhou Port belongs to the state.

Qinzhou city

The Project includes 2 standard berths of 50 thousand-ton class with loading and unloading bulk cargo as the main target and in the meantime it is capable of loading and unloading containers and heavy and large pieces.The water depth at the dockside is 12.5 m and the length of water front is 460 m. The depth of terrain is 668 m, taking up a space of 305 mu. The design annual throughput capacity is 1.15 million tons. The port is equipped with one 40t portal hoist,and 4 sests of 10t portal hoists, together with boom trucks, flatbed trucks, dump trucks, lift trucks, forklifts,and tractors, etc.

assignment of property

125 km shorter for cargos from Qiangui Railway Line, Xianggui Railway Line and Zhiliu Railway Line to be transported by sea at Qinzhou Port by Li-Qin Railway Line than it is to be transported by sea at Zhanjiang Port by Li-Zhan Railway Line. with many seaside industrial projects put into operation, Phase II Project of Qinzhou Port will have long-term stable and ample supply of goods to handle.

Pei Yun Tel: 86-777-2857109 Fax: 86-777-2857102

178

F24

Guangxi Half Earth Pharmaceutical Stock-holding Co. Ltd.

The company occupies an area of over 100 thousand sq.m.with a staff of 500 and a total asset of 27.05 million USD.It is one of the main production bases of troche and granule.The company has now a total of 131 approval permits for production of medicinal products.The structure of the company's stock ownership is: state-held shares take up 17.47 million, corporate shares take up 14.3 million, natural person's shares take up 7.02 million.

Qinzhou city

At present,the company has applied to the Administration of Foodstuff and Drug Supervision of the PRC for 4 new medicines and the number of drugs under development is 3.The company has obtained about 1-2 certificates and production permits for new medicines every year.

Transfer of state-own stock rights ( 34.79 %)

Liyahui Tel: 86-777-2823085

179

F25

Guangxi Guilin Preserved Beancurd Factory

It is the largest producer of preserved beancurd and beancurd sticks. The brand name "Huaqiao" is a designated brand name of "Guilin Three Treasures". up to June of 2004,the total assets of is 6.03 million USD and the total liability is 990 thousand USD and the net asset is 5.04 million USD. The factory mainly deals in preserved beancurd, beancurd sticks and chili paste in three series for over thirty varieties.In the past three years the annual sales income stays at about 2.66 million USD with total profit at 725 thousand USD and profit of 36000 USD.

Guilin city

As far as hardware is concerned,the factory has established a control system for constant temperature and constant humidity for fermentation according to the best technological parameter which is second to non at home.it is the first of its kind to use microwave drying and sterilization equipment in production in the county.As far as software is concerned, it implement the ISO9001 quality management system standard in management.

To form a limited liability company or stock-holding company with producers or dealers who have well-known and famous brand names for foodstuff and condiment.

producing bean products such as preserved beancurd and beancurd sticks by modern processing technology and large-scale production techniques. Further processing of bean is in agreement with the development rend of the national policy for the industry.

Chenjun Tel: 86-773-5582558 Fax: 86-773-5582558 E-mail: chan6954@163.com

180

F26

Liuzhou Huaxi Group Co., Ltd

Liuzhou Huaxi Group Co.,Ltd.is an enterprise integrated with exploration, mining, ore dressing, smelting and further processing of non-ferrous metal.It was made in 1997 as one of the 512 key enterprises enjoying the national support.It now has in its possession a total of 26 factories and mines as well as holding companies located mainly in Liuzhou, Laibin and Hechi. The total assets amounts to 360 million USD.

Liuzhou city

Dachang Mining Area, the major mine of the company, has a metal reserves of 3.52 million tons,of which the retained reserves of tin and antimony rank first in China and the retained reserve of indium ranks first in the world.The company produces series products of tin, lead, zinc, antimony, indium, silver and cadmium and other new metal materials in some dozens of varieties. its main product, block tin of Jinhai Brand, was awarded the gold prize for national product quality in . It was registered with London Metal Exchange in 1992 and is exempt from inspection for export, selling very well in some dozens of countries and regions in the world.

Perform transactions of property rights or reorganization of assets through transfer of the whole company (including assets, staff members and liability), increase in capital and expansion of shares or other means.

All the serial products of tin, lead, zinc, antimony and indium, etc. are irreplaceable raw materials indispensable for modern IT industrialization, electronics industry and high-tech industry. Therefore the project has a bright market prospect for its products.

Weiqining Tel: 86-772-2613930 Fax 86-772-2612186 E-mail: office@ china-tin.com

181

F27

Liuzhou Wuling Automobile Co., Ltd.

Liuzhou Wuling Automobile Co. Ltd. is one of the top 500 large industrial enterprises in China. Calculated by 31/12,2003, the total assets is 320 million USD, the total liability is 190 million USD and the net assets is 110 million USD.Its main business scope includes the production and sale of special cars, spare parts and engines for mini cars .

Liuzhou city

Liuzhou Wuling Group Co. has an experience of over 20 years in production of mini cars, engines, and spare parts and has accumulated abundant experience in product renovation, forming its own management pattern of "low cost and simplification" based on the management linked to the value of mini cars, engines, and spare parts.

Inviting foreign and domestic strategic investors with strong technical and capital power to form a stock-holding company through joint contribution and try to be listed in the stock market abroad with the assets and business in the three major lines of business of the company.

Wangzhengtong Tel: 86-772-3750964 Fax:86-772-3750455 E-mail: Wangzhengtong@wuling.com.cn

182

F28

Guangxi Pinggui Feidie Joint-stock Co., Ltd.

total assets is 24.15 million USD. It has under its management 5 affiliates such as the smelting plant, white titanium pigment plant, Xiwan Power Plant, machine works, Guilin Pinggui Grand Hotel etc. and 4 branches such as Hezhou Xiwan Cement Works, etc.Tin products with "Feidie" brand are inspection-free products for export.

Hezhou city

Annual production capacity of 8000 tons of block tin,4000 tons of lead ingot,20000 tons of white titanium pigment, 200000 tons of cement, 3500 tons of tungsten products,2000 tons of ferric oxide red, hydraulic and thermal power generation for a total installed capacity of 25000kw with an annual output of 100 million kw/h.

Chenxiaofeng Lizhiming Tel: 86-774-8831210 Fax: 86-774-8836098

183

F29

Qinzhou Chemical Works

Qinzhou Chemical Works has an annual production capacity of 20000 tons of synthetic ammonia, 80000 tons of farming ammonia bicarbonate.The main production equipment of the whole works are in good working order and the equipment, workshops and land are not subject to mortgage of any kind.

Qinzhou city

The total area is 135100 sq.m, all of which is state-owned allocated land. Of the said area, 62000 sq.m is for non-production purpose. The purpose is to build a production line with an annual capacity of 20000 tons of synthetic ammonia and 80000 tons of farming ammonia bicarbonate.

Transfer at zero price . The alienee will be responsible for the employment of the employees of the existing works.

There is no national require-ment of approval check for new & small nitrogenous fertilizer plants. It is the only one producer in Guangxi and it has a bright prospect for its market.

Liyahui Tel: 86-777-2823085

184

F30

Qinzhou Silk Works

It has a total land occupancy of 328.28 mu with a total assets of 4.19 million USD, a total liability of 2.98 million USD and a total net asset of 1.21 million USD. For various reasons the silk works remains idle from Nov.1996 up to now, resulting in a certain waste of resources.

Qinzhou city

There are easy traffic accesses and guarantee for water and power supply for the enterprise. With the progress in development of "one river and two banks" together with the eastward movement of the city district, the value of the land will increase steadily. There is a great economic potential for the land to be used for real estate development and commercial area development.

Transfer of property right of the land of the production area and workshops.

Liyahui Tel: 86-777-2823085

185

F31

Guangxi Huixin Plastics Color Printing Co., Ltd.

It is a sole subsidiary under Guangxi Investment (Group) Co., Ltd.occuping a total area of 13 mu, with total assets of 4.9 million USD, total liability of 2.34 million USD and net assets of 2.56 million USD. The main liability is loans in a total of 1.81 million USD. The sales income in the past three years is about 2.41 million USD, with a profit of 97000 USD.

Nanning city

The major equipment of the company is the imported Japanese Toshiba automatic computer-controlled color printing production line. Its main business scope covers the production and sale of various high-quality color plastics syntactic soft packaging products which are suitable for packaging of industrial and agricultural products such as foodstuff, medicine, daily chemicals, and feedstuff, etc.

assignment of whole shares

Niexiaojun Tel: 86-771-5533193 Fax: 86-771-5533193 http: www.gxic.cn

186

F32

Guangxi Zhonghuan Machinery Co., Ltd.

It has a registered capital of 2.66 million USD, of which 1.45 million USD is capital investment by Guangxi Investment (Group) Co., Ltd., taking 54 % of the shares. The total asset of the company is 5.7 million USD with a total liability of 2.82 million USD and net asset of 2.88 million USD. The main line of products includes piston rings, valve-seat rings, flywheel casing and belt pulley.The sales income in the last three years is about 2.53 million USD with a profit of 120000 USD.

Nanning city

The company occupies an area of 150 mu, of which 60 mu has not been used and can be used as land for the development of the project.The company now has a total of 460 sets of various equipment of which sets are machining equipment for piston rings with an annual production capacity of 10 million pieces of various piston rings and 20000 pieces of flywheel casings and 50000 pieces of belt pulleys.

assignment of whole shares

Niexiaojun Tel: 86-771-5533193 Fax: 86-771-5533193 http: www.gxic.cn

187

F33

Guilin Mining Machinery Plant

It has a total asset of 6.75 million USD with a total liability of 5.42 million USD and the net asset of 1.32 million USD.The annual sales income is 3.845 million USD and the total amount of tax and profit is 220000 USD of which the profit amount is 20000USD in 2003.

Guilin city

The annual sales volume of pendulum type R ring roll pulverizers with the brand name of "Guikuang" takes up 15 % to 20 % of the total national sales volume. It has passed the ISO9001: 2000 authentication of the system of quality certification by the State Quality Certification Center .

share-holding or others

The products produced by the plant are device for further processing of non-metal ore, which belongs to the sun-rise industry and has a promising prospect for development.

Lixinyi Tel: 86-773-6812093 Fax: 86-773-6812096 E-mail: webmaster@ guikuang com

188

F34

Guilin Research Institute of Geology for Mineral Resources

The institute has a total asset of 17.72 million USD and a total liability of 9.04 million USD. Its main scope of business covers such projects as research on geology on mineral resources, superhard material and resources and environment, etc. and the production of the newly developed tools of superhard materials.The annual average income in the past three years is 9.66 million USD. And the income from the sale of tools of superhard materials reaches an annual average of 4.83 million USD.

Guilin city

Products: self-developed laser welding diamond circular saw blade and thin-wall bit.
Technology: The technological achievement for the project has passed the ministerial and provincial technical expertise and moves in the lead in the domestic market.
Market: There is a market of billions of USD of demand for diamond tools at home and abroad. The first run production of the laser welding thin-wall diamond bits have sold very well in Korea.

242

contributing with stand-ard workshops of 10000 sq.m in Guilin High-tech Zone and existing tech-nology and an imported production line for laser weld-ing worthing 2.42 million USD.Introducing capital of 2.42 million USD to form the joint venture "Laser Welding Diamond Tool Manufacturing Co. ".

Moshixiong Zhouweining Tel: 86-773-5835410 5839859 Fax: 86-773-5812310 E-mail: sm18@ gl.gx.cn.info.net

189

F35

Qinzhou Reeling Mill

Because of the shortage of circulating fund and the other causes, the mill stopped running on 1st,May of 2003 up till now. Calculated as of June of 2003, the total asset of the mill is 2.63 million USD, the total liability is 2.63 millionUSD and the net asset is -4000USD (note: the asset has not been appraised yet).

Qinzhou city

The mill covers the area of 37226 sq.m, of which 35453 sq.m is land transferred by the state and 1773 sq.m is land sold by the state. The workshops take up a construction area of 15957 sq.m. The mill now has a total of 12 sets of reeling machines type 507 with an annual production capacity of 250 tons of mulberry silk.

assignment of production area

Liyahui Tel: 86-777-2823085

190

F36

Qinzhou Frigorifico

Occupying total area of 65620 sq.m, of which land for production purpose accounts for 47629 sq.m. The use right of the land is transferred by the state. The total of the enterprise's ledger assets is 1.14 million USD, the total liability is 512 thousand USD and the asset-liability ratio is 44.6 %.The total asset for production purpose is 932 thousand USD (land included) and the total asset for non-production purpose is 212 thousand USD (land included).

Qinzhou city

The plant has one low-temperature refrigeratory with a capacity of 1500 tons, two freezer rooms with a capacity of 150 tons. The total processing area of the marine products is 1200sq.m. The plant also has one flatbed freezer type MYC()M imported from Japan and two deepfreezing production lines type JSG-500.

assignment of productiive net assets

Liyahui Tel: 86-777-2823085

191

F37

Qinzhou Machinery Plant

Its registered capital is 644 thousand USD. with a total assets of 3.53 million USD of which 694 thousand USD is current assets,1.81 million USD is fixed assets, 1.25 million USD is intangible assets (the use right of land),7.79 million USD is the total liability.In 2002,the plant used 30 mu of land to compensate for the debt of 5.5 million USD from the Industrial and Commercial Bank of China.

Qinzhou city

It is the only producer of universal joint crossing shaft for automobiles in Guangxi with advanced techniques in the field of forging heating, carbon dosing in heat treatment, quenching, roughing, round grinding of inside bearing bushing, etc.The plant has a history of 30years for oxygen production.In 2002,the plant installed a set of special equipment of hydraulic pressure oxygen tank of 25 cubic meter for medical purpose.

assignment of property

Liyahui Tel: 86-777-2823085

192

F38

Liuzhou Iron and Steel Group Company of Guangxi Zhuang Autonomous Region

The group is the only iron and steel associated enterprise in Guangxi with an overall output of steel for 4 million tons. It ranked 193th place on the list of the national large-scale industrial enterprises in 2003,with the total profit of 102 million USD, profit and tax of 173 million USD, total assets of 892 million USD, ownership interest of 527 million USD and main business turnover of 774 million USD.

Liuzhou city

Of all the provinces of the west regions subject to China's program of Development of the West Regions,Guangxi is the only province with sea-shore and border-shore.It is the junction point for the materials,talents and information to flow from the developed east regions of China to the underdeveloped west regions.

Joint-venture or cooperation

There is a small output of hot rolling super thin plate, hot rolling acid pickling plate,ordinary cold rolling plate, galvanized plate and color plate in China, but there is a big demand for them. So there is a big market for the project.

Meimingde Tel: 86-772-2592759 13507722965 Fax: 86-772-2593643 E-mail: Meimd@ 163.com

193

F39

Introduction of the Asset Reorganization of Guilin Guifeng Machinery Plant

It occupies an area of 46000 sq.m, with 15400sq.m as construction area, and 48400 sq.m for the residential area. It has a total of 320 sets of various equipment for machining, heat treatment, forging and die-casting, etc.The total assets is 8.16 million USD and the ownership interest is 2.785 million USD.

Guilin city

The plant has a history of 18 years in production of automobile synchronizers with a total of 50 varieties of products and an annual capacity of 350000-400000.In 2003, the plant passed the ISO9001:quality certification.The synchronizers with "Xinghuo" brand are produced mainly for use on motor trucks in Dongfeng series and on Jianghuai buses.It has cooperated with the American S&S CO. for years and the annual export volume is around 422 thousand USD.

merger or sale wholly

Tangbing Tel: 86-773-2125898 13707731652 Fax: 86-7735812716 E-mail: Tangbing 88@tom.com

194

F40

Guilin Duxiu General Cement Works

The Works occupies total area of 492000sq. m with a total construction area of 62000 sq. m.It deals in cement, precast units, and cement machinery. In 2003, sales income is 5.91 million USD with a profit of 176 thousand USD, total assets of 12.14 million USD and the ownership interest is 6.21 million USD.

Guilin city

It is a cement production enterprise with shaft kiln.It passed both the national product quality certification and quality management system certification in 1996. Its products have been certified by Guangxi for comprehensive utilization and are categorized as na