The B-zone project of Nansha International Automobile Industrial Park, Guangzhou

Project: The B-zone project of Nansha International Automobile Industrial Park,
Guangzhou

Overview: since the Toyota engine project and complete Toyota car project of
Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as "GAC") settled
down in the A-zone of Nansha International Automobile Industrial Park, over 20
manufacturers have started operation, which are primarily engaged in manufacturing parts for Toyota cars. A large number of service companies have also entered the Nansha which are mainly engaged in providing services to the automobile industry of Nansha, to include training, marketing, maintenance and repair, logistics, etc.. The effect of industrial concentration is significant. The second production line will start production in May this year which will have the capacity of producing200,000Toyotacars in2009andthetotal production capacity of Toyota
cars byGACwill reach400,000units by then. TheB-zoneof Nansha International
Automobile Industrial Park is located at the central area of Nansha Development
Zoneand is 18kilometers away fromthe Toyotaproduction base. It is 15 kilometers away fromtheNanshaPort of GuangzhouHarbor andis close to the express way of Nansha Port. It is 30-minute drive fromthe city proper of Guangzhou. The B-zone is an internationalized industrial park built with high standard and it is designed to attract the Class 2 and Class 3 auto parts manufacturers and machinery manufacturing companies to settle down on its premises. The industrial companies that have invested in the B-zone will be provided with complete infrastructural facilities and will receive the human-based services of employee dormitory,
canteens and security guards. In addition, they will be able to share some of the
suppliers with the Japanese cars which will increase their localized procurement
rateof parts inorder toreducetheproductioncost.

Modeof cooperation: SiNo-foreignjoint venture, cooperation or solely owned
foreign business

Periodof cooperation: 30years

Total investment: depending on the scale of each company

Chinese sides investment andcomposition: to bedecidedby themodeof cooperation

Foreign side investment and composition: to be decided by themode of cooperation
Estimatedpaybackperiod: tobedecidedby themodeof cooperation

Construction site: NanshaDevelopment Zone,Guangzhou

Infrastructureavailableat theconstruction site: complete

Materials of theproject: complete

Stateproject classification: encouraged