Project Name: Yanqi Logistics Distribution Center

Construction Location: This project is located in Block D of Yanqi Industrial Development Zone, west of Yang-Yan Road, about 1km from No.101 National Highway (Jing-Mi Road) and 5km from Jing-Cheng Expressway.

Project Entity: Beijing Changcheng Industrial Investment and Development Company. This company was founded in 1992, located at No.888 of Yanqi Industrial Development Zone. The registered capital of this company is RMB300 million Yuan, with an asset of RMB650 million Yuan. It is authorized by Huairou District Government to be engaged in the land remising, development, and transfer in the Yanqi Industrial Zone.

Construction Contents and Scale: The total land coverage of this project is 200 mu, four 10,000m2 warehouses will be built, supplemented with various types of shelves, fork-lifts, and transmission belts, etc.

Total Investment and Construction Arrangement: The total investment of this project is supposed to be RMB75 million Yuan, of which fixed asset investment will be RMB70 million Yuan and current capital will be RMB5 million Yuan. This project is expected to be commenced at the end of 2005 and will be implemented in two stages. Investment of the first stage will be RMB45 million Yuan, of which RMB31 million Yuan will be used for investment in land procurement, RMB6 million Yuan for warehouses construction, RMB3 million Yuan for procurement of shelves and vehicles. RMB5 million will be used for operation current capital. It is planned to be completed at the end of 2006, which can satisfy the primary development of market. Investment for the second stage will be RMB30 million Yuan, and will be completed at the end of 2007. It is mainly used for the expansion of the warehouses and relevant supplementary facilities, so as to meet the requirement of the development of logistics enterprises.

Construction and Investment Conditions: This project is located inside Yanqi Industrial Development Zone, meanwhile it can be closely linked to Miyun Industrial Zone, Huairou Jingwei Development Zone, and Fengxiang Development Zone. 500 enterprises have already been settled down in these development zones. With the increase of incoming enterprises, requirement for logistics service will become more urgent. Foodstuff and Beverage, packing and printing, biological engineering enterprises will be major customers for logistics. At present, 137 enterprises are resided in Yanqi Industrial Development Zone itself, such logistics enterprises as Aifen Food, Red Bull Beverage, Beijing Beer, Jianlibao, Boer Tin, Pacific Tin, and Dabei Feedstuff are all flocked in this Zone. It is estimated that in 2010, the monthly throughput of this Zone will reach more than 2 million tons. And the monthly throughput of the four bases which are closely linked to this Zone will reach 6 million tons. Therefore, the economic efficiency of this logistics center will be increased by large margin. Moreover, the Yang-Yan Road to the east of this project will be open for traffic in October, 2005, and the Huairou sector of Jing-Cheng Expressway will be also put into operation at the end of 2005.

Investment Conditions and Intentions: Either foreign-funded form or JV with Beijing Changcheng Industrial Investment and Development Company can be adopted in the investment mode. Interested enterprises must be strong and experienced in the operation of logistics.

Contact: Zhang Ruijie

Tel: 0086-10-66410900-25