-Liaoning Chengda Group Co., Ltd.

1.   Basics

The time of establishment: Sep.28, 1995

Address: 71 Renmin Rd., Zhongshan District, Dalian, P.R.China

Corporate type: large-scaled, wholly state-owned

The industry affiliated: compositive

The scope of operation: import&export of products and technologies, carrying trade, clothes manufacturing and textile materials, transportation, storage, real estate management and computer technological support and sales

Intangible assets: usufruct of ground, software and business credit standing

Staff: 261 (12 in group headquarter, 249 in stock company, all the staff are on non-state-owned status)

2.   Corporate representative: Shuzhi Shang

3.   Capitalization:

Registered capital: 168,000,000 (100% stockholder: State-owned Assets Supervision and Administration Commission of Liaoning Province).  Subsidiary companies:

 ---Liaoning Chengda Joint-stock Co., Ltd. total shares of stock: 498,448,000(state: 91,767,000 or 18.41%; corporative: 177,801,000 or 35.67%; social public: 228,880,000 or 45.92%)

4.   Current operation:

in 2004, sales revenue: 3,610,000,000, profit: 73,984,000, net profit: 1,355,000

First half in 2005, sales revenue: 2,280,000,000, Profit: 333,402,000 net profit: 401,000

5.   Financial state:

In 2004, total assets: 2,550,000,000, total debts: 1,420,000,000 minority ownership interests: 1,000,000,000, ownership interests: 130,000,000, (paicl-up capital: 168,000,000, capital accumulation fund: 21,000,000, retained earnings: -59,000,000) account receivables: 744,335,000, account payables: 624,840,000, accumulative depreciation: 17,633,000, tax: 16,610,000.

6.   Development strategy:

 Position import&export operation and drugstore chain as core business and improve the efficiency, expand the scales; financial investment as strategic investment to realize continuous capital appreciation; commercial investment as major support to expected investment returns; research and develop into the new fields with stable returns and favorable to the company’s long-term development

7. Ownership right transfer: no limitation to the proportion of state-owned stock to be transferred

8.   Requests to buyers: well-established, good reputation, high-quality management team, excellent enterprise culture, due payment of the debts for the further development

9.   Contact to us:

a. Enterprise:Liqun Wu

Tel: +86 411 82804341

Fax:+86 411 82691191

Address: 71 Renmin Rd., Zhongshan District, Dalian, P.R.China Post code: 116001

E-mail: wuliqun@chengdal.com.cn

b. State-owned Assets Supervision and Administration Commission of Liaoning Province:

Qiong Wu, Renhe Zhao

Tel: +86 024 86903276

Fax: +86 024 86903276

Address: 45-22 Beiling Str., Huanggu District, Shenyang, P.R.China

Post code: 110032

E-mail: zcjyc@163.com

10.  Declaration: all the data in this specification are shown in the account books in RMB. The net assets value of transferring stock ownership must be actual number after evaluation. This actual number will be the main basis of bottom price of market trade.