Weihai Export Processing Zone, CITIC Industrial Park Investment Presentation ----Weihai Fed Investment Advisory Company

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Weihai Export & Processing Zone Weihai Export & Processing Zone was set up by the approval of the State Council on Apr 27, With the preferential policies from the State, Weihai EPZ has made great achievements on investment by the strategies of " Prosper Weihai by the help of Korea" and "Service Brand". So far 58 enterprises have been established in the Zone mainly engaging electronics and food processing, biological medical projects and new type of building materials. The total amount of investment reaches 569 million US dollars, of which the actual utilized capital is 192 million US dollars.There are 9 enterprises in the Zone which surpassed the investment of 10 million USD respectively.19 enterprises including Dongwon Foods, Duoxing Electronics, SIFLEX Electronics have been put into production and 15 others are under construction. Cite from:

Weihai Export Processing Zone Weihai EPZ is located in Weihai Economic & Technological Development Zone with programmed area of 2.6 km². Weihai EPZ belongs to comprehensive export & processing zone, enjoying perfect infrastructure and superior geographical advantages. Weihai lies at the eastern tip of Shandong peninsula, surrounded by sea on three sides and linked land on the other, facing Korean Peninsula and Japaness archipelago to the east. Weihai EPZ is 30 km to Weihai Airport, 3 km to Weihai railway station and 4 km to Weihai harbor. Weihai has opened passenger-cargo liners to Korea and cargo liners to Japan, Hongkong and Southeast Asia. Weihai EPZ enjoys all preferential policies of the State and carries out favorable land transfer. A loan agreement of RMB 1.9 billion has been reached between Weihai EPZ and Weihai CITIC Industrial Bank for the construction and development of the enterprises in the Zone.

Investment Environment Population and education The total amount of population is 2.43million, baring high education and quality. The workers have all received above middle education with high production efficiency. Climate Weihai is an ideal city for living and working for foreign businessmen. It has a maritime climate with four distinctive seasons, average temperature 12.1oc, none-frost days. The annual rainfall is 800 ml and the annual sunshine is 2516 hours. Natural resources Weihai is a beautiful and abundant city, full of vigor and vitality. Hear is the important production base of grain, fruit in Shandong. Mineral resources,especially the marble are very rich; "Jiaodong peanut", "Weihai Apple","Rongcheng Yellow peach" and "Rushan pear" are famous at home and abroad.

Investment Environment Weihai is an important marine production base, with 1,000 km coast line 37,000ha aquaculture area,1000 large and medium-sized motor fishing boats, 480 marine product processing enterprises with 1.8 million ton of processing ability. The output and output value of aquatic products have been listed first in the country for continuous ten years.Last year, aquatic output reached 2.3 million tons. Weihai is a new industrial city with considerable basis and strength. The industry has a high starting point,develops rapidly. It has formed a complete production system with hi-tech industry as the guide, machinery, electronics, chemical industry, light industry, textile, construction materials as the pillars and plastic, silk, clock, medicine, foodstuff, arts as the mainstay. Weihai has large, medium and small-sized industrial enterprises,of which 30% of the enterprises have met the advanced level in technology and equipment, most of them belong to processing enterprises, which are very suitable for large-scale processing trade.

Economy Operational Summary in Weihai Export & Processing Zone (first half)2009(first half)2010(first half) Industrial Production Resultant Sales Revenue Tax Unit ：（ ten thousand yuan ） Cite from ：《 Weihai Statistical Annual 》

Development Trend Summarized from Annual Report The investment scale expands with steady steps and the industrial structure is optimized. The tax revenue increases stably and the quality of economy obviously enhances. 投资规模稳步扩大，结构不断优化

Introduction to CITIC Industrial Park CITIC Industrial Park locates in Weihai Export & Processing Zone. It covers an area of 36,652 square meters and the total measure of building area is 68,694.5 square meters. There are 11 standard industrial plants. Each has five levels. Plants have three units. A-type, each building area is 3,258.6 square meters. B-type, each building area is 5,216.7 square meters. C-type, each building area is 14,788.3 square meters. Sewage pipes, water pipes, rain water pipes, heating underground pipes are fully equipped in the park. The park has a permanent power supply facilities 2400KVA. In addition, Park has a good property management system Entrance

Virtual Plants Profile

In-Park Environment

Infrastructure and Property Management

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1. Preferential policies provided by the State On taxation (1).No V.A.T and consumptive tax is levied on goods and taxable labor service processed and produced inside the Zone. (2).The tarrif and import-related tax of the goods coming into the Zone,except stipulated by laws and administrative. (3). The manufactured goods and the leftovers, bitts and pieces, damaged and substandard goods,waste caused during processing,except stipulated by laws and administrative regulations,are duty free when sold out of abroad. (4). The formalities of the home-made machines, equipments, raw materials,parts,conponents,packing materials coming into the Zone and used by the inside enterprises and reasonable number of constructive materials used by the inside enterprises and Administrative Committee for infrastructure,production and office building are handled in the Customs in accordance with the relevant regulations.The Customs also issue exports tax- refund forms to the outside enterprises.The outside enterprises apply to the tax authority for the refunded tax based on the tax-refund (free)forms. On taxation (1).No V.A.T and consumptive tax is levied on goods and taxable labor service processed and produced inside the Zone. (2).The tarrif and import-related tax of the goods coming into the Zone,except stipulated by laws and administrative. (3). The manufactured goods and the leftovers, bitts and pieces, damaged and substandard goods,waste caused during processing,except stipulated by laws and administrative regulations,are duty free when sold out of abroad. (4). The formalities of the home-made machines, equipments, raw materials,parts,conponents,packing materials coming into the Zone and used by the inside enterprises and reasonable number of constructive materials used by the inside enterprises and Administrative Committee for infrastructure,production and office building are handled in the Customs in accordance with the relevant regulations.The Customs also issue exports tax- refund forms to the outside enterprises.The outside enterprises apply to the tax authority for the refunded tax based on the tax-refund (free)forms. Cite from:

1. Preferential policies provided by the State On taxation (5) For the productive foreign-invested enterprises in the Zone,the income tax will be levied at a rate of 15%. Among them, the enterprises whose operation period is over 10 years will be exempted from the income tax in the first two years, and pay the income tax at a rate of half reduction from the third year to the fifth year. (6) After the tax free period, the export output value of the enterprises gets more than 70% of the overall output value at that year, the income tax will be levied at a rate of 10%.The advanced-tech enterprises after the reduction or free period of the income tax. On taxation (5) For the productive foreign-invested enterprises in the Zone,the income tax will be levied at a rate of 15%. Among them, the enterprises whose operation period is over 10 years will be exempted from the income tax in the first two years, and pay the income tax at a rate of half reduction from the third year to the fifth year. (6) After the tax free period, the export output value of the enterprises gets more than 70% of the overall output value at that year, the income tax will be levied at a rate of 10%.The advanced-tech enterprises after the reduction or free period of the income tax.

1. Preferential policies provided by the State On taxation (7)Any foreign investors in the Zone who reinvest its share of profits obtained from the enterprise directly into that enterprise to increase its registered capital, or use the profits as capital to establish other enterprises and operate for a period of not less than 5 years, upon the investors application and the approval by the tax authorities, should be refunded 40% of the income tax paid on the reinvested amount. If reinvestment is taken away within 5 years, the refunded taxation should be recovered. For those reinvestment which are to operate or extend product export enterprises or advanced-tech enterprises, all the paid income tax on the reinvested amount should be refunded. On taxation (7)Any foreign investors in the Zone who reinvest its share of profits obtained from the enterprise directly into that enterprise to increase its registered capital, or use the profits as capital to establish other enterprises and operate for a period of not less than 5 years, upon the investors application and the approval by the tax authorities, should be refunded 40% of the income tax paid on the reinvested amount. If reinvestment is taken away within 5 years, the refunded taxation should be recovered. For those reinvestment which are to operate or extend product export enterprises or advanced-tech enterprises, all the paid income tax on the reinvested amount should be refunded.

1. Preferential policies provided by the State On taxation (8)Foreign enterprises, who have no organizations in China, 0btain the divided interest, rent, fee of charted right and other income from the Zone, except exempting from income tax of enterprises, the income tax of enterprise should be reduced at a rate of 10%. Among them, income tax of enterprise can be reduced or exempted for those enterprises who provides the capital, equipment favorably or the advanced technology. (9)The foreign-invested enterprises will be exempted from the local income tax for ten years from the profitable year. (10) Any foreign investor who obtains the profits from the foreign investment enterprises is exempted from income tax. (11)The foreign-invested enterprises are free from the orientation regulatory tax for the fixed investment. On taxation (8)Foreign enterprises, who have no organizations in China, 0btain the divided interest, rent, fee of charted right and other income from the Zone, except exempting from income tax of enterprises, the income tax of enterprise should be reduced at a rate of 10%. Among them, income tax of enterprise can be reduced or exempted for those enterprises who provides the capital, equipment favorably or the advanced technology. (9)The foreign-invested enterprises will be exempted from the local income tax for ten years from the profitable year. (10) Any foreign investor who obtains the profits from the foreign investment enterprises is exempted from income tax. (11)The foreign-invested enterprises are free from the orientation regulatory tax for the fixed investment.

1. Preferential policies provided by the State On processing trade management (1).Enterprises in the Zone do not implement processing trade bank deposit accounts system,and the Customs do not implement [Processing Trade Registration Brochure] management. (2) For those goods,which are not forbidden by the State, can come in and out of the Zone freely for processing trade, like some restricted goods. (3) The enterprises in the Zone can obtain import and export right by registration. On processing trade management (1).Enterprises in the Zone do not implement processing trade bank deposit accounts system,and the Customs do not implement [Processing Trade Registration Brochure] management. (2) For those goods,which are not forbidden by the State, can come in and out of the Zone freely for processing trade, like some restricted goods. (3) The enterprises in the Zone can obtain import and export right by registration.

1. Preferential policies provided by the State On supervision management (1).The Customs supervise goods going between the Zone and abroad by direct passing or trans-customs transport mode. (2). For the goods going inside or out of the Zone, all the formalities of putting on file,declaration,check,release,cancel after verification, are handled inside the Zone.The inspection department carry on one time quarantine,inspection,that is,if it is taken quarantine and inspection in the Export &Processing Zone,it needs not to be done again in the port. (3).For the goods-intercourse between Export Zones,the consignor and consignee should jointly submit applications to the Customs located in the consignor' side.After the examination and approval of the Customs,it is handled in accordance with relevant trans-customs transport regulations. On supervision management (1).The Customs supervise goods going between the Zone and abroad by direct passing or trans-customs transport mode. (2). For the goods going inside or out of the Zone, all the formalities of putting on file,declaration,check,release,cancel after verification, are handled inside the Zone.The inspection department carry on one time quarantine,inspection,that is,if it is taken quarantine and inspection in the Export &Processing Zone,it needs not to be done again in the port. (3).For the goods-intercourse between Export Zones,the consignor and consignee should jointly submit applications to the Customs located in the consignor' side.After the examination and approval of the Customs,it is handled in accordance with relevant trans-customs transport regulations.

2. Preferential policies provided by Weihai Export & Processing Zone Shandong (1). The preferential price of land is provided to the coming enterprises by the Export & Processing Zone. To the hi-tech and technology-intensive manufacturing foreign-owned enterprises, we carry on a floating price for the land transfer. For the especial big items,high technology-content items, the preference of the land policy is treated respectively. (2). All kinds of charges which can be reduced and exempted, must resolutely reduced and exempted,and gradually turning to the zero - charge transition. (3). Providing good life conditions like housing, residence registration,children's education and so on for the coming businessmen. (4). The Administrative Committee can help the inside enterprises for their capital shortage. (5). Providing help on workers -seeking and necessary life facilities for the coming enterprises. (1). The preferential price of land is provided to the coming enterprises by the Export & Processing Zone. To the hi-tech and technology-intensive manufacturing foreign-owned enterprises, we carry on a floating price for the land transfer. For the especial big items,high technology-content items, the preference of the land policy is treated respectively. (2). All kinds of charges which can be reduced and exempted, must resolutely reduced and exempted,and gradually turning to the zero - charge transition. (3). Providing good life conditions like housing, residence registration,children's education and so on for the coming businessmen. (4). The Administrative Committee can help the inside enterprises for their capital shortage. (5). Providing help on workers -seeking and necessary life facilities for the coming enterprises.

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2. Questions and Solutions Question One ： Staff accommodation Weihai Export & Processing Zone has 30 enterprises and more than external work personnel. Because Weihai Export & Processing Zone is special supervision region, enterprise courtyard does not allow the workers to live. In addition, surrounding village occupies have the relocation question. Question One ： Staff accommodation Weihai Export & Processing Zone has 30 enterprises and more than external work personnel. Because Weihai Export & Processing Zone is special supervision region, enterprise courtyard does not allow the workers to live. In addition, surrounding village occupies have the relocation question. Solution ： ①To transform the idle standard workshop into workers. living quarters ② To provides the housing allowance to the staff. The accommodation problem has already solved ！ Solution ： ①To transform the idle standard workshop into workers. living quarters ② To provides the housing allowance to the staff. The accommodation problem has already solved ！ Solve

2. Questions and Solutions Question Two ： Repair and freight elevator Part plants are not repaired. Among them, the number of freight elevators is limited. It possibly creates inconvenience. Question Two ： Repair and freight elevator Part plants are not repaired. Among them, the number of freight elevators is limited. It possibly creates inconvenience. Solution ： ① For renters in unrepaired plants, we will give certain rent preferential benefit ② If it is needed, we can contact the specialized repair company to repair the plants. ③ We have contacted the elevator company to install the freight elevator. Please feel relieved the use conveniently. The accommodation problem has already solved ！ Solution ： ① For renters in unrepaired plants, we will give certain rent preferential benefit ② If it is needed, we can contact the specialized repair company to repair the plants. ③ We have contacted the elevator company to install the freight elevator. Please feel relieved the use conveniently. The accommodation problem has already solved ！ Solve

2. Questions and Solutions Question Three ： Estate management Question Three ： Estate management Solution ： ① The security guard is composed of eight people, guarantee 24 hours security. ② The expense of property management is relatively low. We still guarantee the reliable property service sincerely. The accommodation problem has already solved ！ Solution ： ① The security guard is composed of eight people, guarantee 24 hours security. ② The expense of property management is relatively low. We still guarantee the reliable property service sincerely. The accommodation problem has already solved ！ Solve

In our efforts, you will no longer face the disturbing risks of investment!

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3. Advantages in Industrial Estate Real Investment

Real Estate Industry Cycle

Investment in non-residential building construction reached $10.8 billion(in current dollars). This marks the increasing trend since the fourth quarter of Investment in non-residential building construction in the US

In the table, we can clearly see that from 2004 to 2009 U.S. Investment in non- residential type building is rising. Worldwide investment trends worldwide response to the focus of U.S. investors + The promulgation of the Limits Purchases Command in Chinese major cities. In the home, the industry workshop investment has become the new favorite for investors

Industry Workshop: New Opportunity for Investors In Weihai real estate market, the sale, rental of industry workshop and the huge value of each contribution have been neglected by people. Now, many traditional industrial districts are reformed step by step. In fact, there are several reasons that to invest in CITIC Industrial Park is a wise choice for you.

Firstly, Location Superiority. Because the park is located at the Weihai Export & Processing Zone, it has good transportation conditions and preferential policies 。 Secondly, High Level Planning. Because the export enterprises are centralized in this area, many high-tech and privately enterprises are willing to join in which Thirdly, the development of the park keeps path with the time.

Investment expects Income. As the new group of industry real estate investors, are you ready? Please believe your original judgment. The high repayment of industry real estate will not let you be disappointed ！

Thank you for appreciation ！