Project title：Strait-West New High-Tech Industrial Park, Fuzhou High-Tech Development Zone

Present ownership：State owned

Location: Fuzhou City, Fujian Province

Project type：New

Project Classification：Other Industry

Form of cooperation：Joint venture/Sole/Cooperation/Other

Project description (Including justification of the project and construction conditions，market of the project, construction content, scale and goal)：

The target area of Strait-West Park of Fuzhou High-Tech Development Zone is located on the southwest side of Fuzhou. A river lies between the area and Fuzhou city. It ranges from Wulong River on the east to Wulong River Avenue on the west and from Jinshang Bridge on the north to the confluence of Dazhang Stream and Wulong River. The planned area is 12.35 km2. Currently, the project aims at inviting enterprises in electric information, biological medicine, new materials, new energy and environmental protection industries. Its focus is to undertake both Chinese and international high-tech industry transfer projects and develop a headquarter research and development center for renowned enterprises from China and abroad. The investment per 667m2 is expected to reach more than 5,000,000 RMB, and annual tax of each project will register 10,000,000 RMB and above. Construction will last for 15 months. Fuzhou High-Tech Industrial Development Zone, approved by the State Council, is a national high-tech industrial development zone. Under it are five high-tech industrial parks, namely Mawei Park, Hongshan Park, Cangshan Park, Taixi Park and Strait-West Park. Among them, Mawei Park is a national industrial park for display devices. Currently, the zone features 9 enterprises with high-tech products of more than 1,000,000,000 RMB in output value and 62 with more than 100,000,000 RMB in output value. 75 enterprises in the zone are designated as high-tech enterprises. In 2009, Fuzhou Municipal Government launched the construction of Strait-West High-Tech Industrial Park to promote the formation and large-scale development of high-tech industries such as headquarter economy, electronic information, software, new materials, environmental protection, biological technology, etc. The Strait-West Park is positioned to focus on advanced research and development, technology cultivation and headquarters economy. It also aims to provide a platform for exchange of high-tech industries from both sides of the Taiwan Strait. By accumulating major elements for creativity (talents, technology, capital, etc.), blending creativity with entrepreneurship, and building a harmonious relationship between human beings and nature, we are dedicated to turning the park into a high-tech industrial park with 21st-Century development level and influence in China and even internationally. Considering the dozen universities, scientific research institutions and post-doctorate institutions in its vicinity, we plan to make full use of these advantages in academic scientific research and talent by promoting the cooperation of production and academic research, so as to create favorable conditions for the construction of research and development center, cultivation of high-tech projects, as well as the commercialization, industrialization and internationalization of high-tech research results. Investors of Strait-West High-Tech Industrial Park will be granted favorable policies as follows:  For enterprises of leading projects with high growth rate and an annual output value of 2,000,000,000 RMB and above, or enterprises with annual tax pay of 100,000,000 RMB, we promise to hold discussions on each major event.  For productive projects encouraged by the zone, which introduce a registered capital of 20,000,000 USD and above and pay an annual tax of 10,000,000 RMB, we promise to assign 50% of their contribution to the zone to support their development in the first three years starting from their introduction/production. For the next two years, we promise to assign 30% of their contribution to support them.  For newly introduced productive corporate headquarters/regional headquarters with an annual tax pay of 20,000,000 RMB, we promise to assign 30% of their contribution to the zone back to support their development in the first three years starting from their first tax payment. For those paying annual tax of 50,000,000, we promise to assign 50% of their contribution back to support them in the first three years after their first tax payment.  For medium or small-size high-tech enterprises, we promise to assign 50% of their income tax back to support their development in the first three years starting from their recognition or entry.  For newly established commissioned service enterprises or creative industry, we promise to assign 75% of their contribution to the zone back to support their development for the first three years starting from their recognition by the management committee.  For entrepreneur (risk) investment institutions or guarantee institutions established in the zone, we promise to give back 100% of their contribution (no more than 2,000,000 RMB) for their development in the first three years starting from their establishment.

Background information and development on the project：
The Strait-West Park’s overall layout plan, regulatory detailed planning, and the construction detailed planning for the promoting area have all been completed and passed expert examination. The land use for the 1st phase is 280 hectares, among which industrial use accounts for 184 hectares (65.7% of the total area). The target area has been equipped with power, road, water, telecom and sewers. The land formation has also been finished. The construction of a full road network has been launched: 1. East Keji Road (length: 1.219 KM, width: 50M, total investment: 28,000,000 RMB, currently finished: 80%). Tarmacing of the road was finished on March 10, 2010. The road has been put to use. At the same time, the landscape planning blueprint of East Keji Road has been finished and will be open for auction after the Spring Festival holiday. 2. Gaoxin Avenue (Length: 4.2KM, width: 50+20M, total investment: 260,000,000 RMB) and Houguan Avenue (Length: 4.53KM, width: 24+24M, total investment: 150,000,000 RMB): construction will be started in April.

Currency: Renminbi

Total project cost (10000): 500000