I. Project name: Production of safety air sags for sedans

II. Project to be undertaken by: Nanjing Yuhua Economic and Technological Development Zone

III. Briefs of project undertaker:

Yuhua Economic and Technological Development Zone has a planned area of 28 square kilometers, from new Qinhuai River in the north to Meishan to the south, and from Nanjing¨CWuhu Railway in the east to the Yangtze River in the west. It has obvious geographic superiority, with the Ring Expressway and Nanjing¨CMaanshan Expressway running across it and docks along Yangtze River and the vehicle ferry at Banqiao located inside the area. The No. 3 Yangtze River Bridge under construction now is also in the area. It will be completed and open to traffic in 2005, with broad prospects of development.

IV. Main content of project:

In the coming 5 years, Nanjing will become one of the five major automobile production bases in China, with annual production of 100,000 sedans, and the demand for safety air sags will also increase. This project will cover a land area of 6.7 hectares, as an associated supporting project for sedan production.

V. Expected total investment and expected economic gains of project:

1. Total investment of project: 124.5 million yuan

2. Construction period of project: 2 years

3. Expected rate of return: 30%

4. Expected investment recovery period: 4-5 years

VI. Preliminary suggestion on cooperation: sole investment from incoming partner

VII. Contact:

Address: 88 Liucun Flyover, Xishanqiao, Outside Zhonghua Gate, Nanjing

Zip: 210039

Contact person: Zhang Jianfei

Telephone: 86-25-52801542

Fax: 86-25-52801280

E-mail: ykfq_001@163.com