AUTOMOTIVE & MACHINE MANUFACTURING

1

Project name: Automotive Hub Project

Project content:

Changsha, the provincial capital of Hunan, is known as the city of heavy engineering machinery in central region andat present the city has a scale of more than 29engineering machinery enterprises, including six large and medium sized enterprises, of which the products cover more than 400 varieties involving12 large categories and more than 100 small categories. Changsha Economic and Technological Development Zone, where the project located, gathereda number of leading enterprises, such as SANY Group Co.,Ltd., Zoomlion Heavy Industry ScienceTechnology Development Co., Ltd., Sunward Intelligent Machinery Co., Ltd.and so on. However, many problems exist in the two industries of engineering machinery and automobile, such as, the lack of part support, absence of keyfinal assembly support, short and narrow industrial chain, etc. Therefore, the investment introduction of key part project will help to extend the two industrial chains and concentrate industrial groups, and promote rapid economic development of Changsha as well as Hunan province.

The automotive hubs produced in this project belong to the key components of engineering machinery and automotive products.The implementation of the project relies on the strong engineering machinery and automobile industry in Hunan and is in line with state industrial policies as well as industrial development policies of Hunan, so the project has a good economic expectation and social benefits.

The project is planned to cover anarea of 13.33 hectares. The construction contents include: modeling workshop, machiningworkshop, raw material warehouse, finished product warehouse, hub technical R&D and test center, training center and office building with a total construction area of 95,000 square meters. After putting into service,it will provide an annual production capacity of 800,000 hubsof various light and heavy tonnages.

Total investment: $ 60,610,000

Cooperation mode:Sole proprietorship, joint venture, cooperation and other

Project unit: Investment Promotion & Cooperation Bureau of Administrative Committee of Changsha Economic & Technical Development Zone

Mailing address:No.2, Sanyi Road, Xingsha, Changsha City, Hunan Province, China

Contact person:Chen Haiyan

Tel: +86 -731-84011108

2

Project name: Electric Automobile Projects

Project content:

In recent years, Hunan has always a strong demand for automobiles, showing as the rapid rise in industrial output. As of 2008, Hunan automotive industry output value has reached RMB 30 billion Yuan, and maintained a sustained growth momentum.According to industry planning in Hunan Province, the industrial output valuescale of Hunan automotive industry is expected to achieve RMB 200 billion Yuan by 2015.

In November 2008, the State Council announced 10 measures to expand domestic demand and promote growth, cancelled the credit quota restrictions of commercial bank, and reasonably expanded the credit quota and the central bank continuously lowers interest rates making borrowing costs to be plummeted. Then, the Changsha Center Branch of the People's Bank of China proposed 10 measures on how to implement "the State Council’s 10 National notices" in Hunan banking, where Item 6 clearly indicates "actively launchmortgage loans business forautomobile, large durable consumable". These provide a good opportunity for the booming development of automotive market in Hunan. As introducing theplan for revitalizing automotive Industry and the policy for constructing the “two-oriented society” in Hunan Province, Hunan automotive industry meets a very good development opportunities. As an environmental protectiveautomobile,electric automobile has received the strong support fromvarious policiesduring development, and which can be expected in the near future, this energy-saving and environmental protective automobile will have a huge market. In summary, the introduction of electric automobile project in Hunan is significant, not only for the social benefits, but also economic benefits.

The construction project is planned to cover an area of 400 mu and the construction content includes: testing workshop, part warehouse, finished product warehouse, battery production workshop, electric automobile assembly workshop, motor controller and power final assembly workshop, R & D buildings and office buildings with construction area up to 176,000 square meters. The total investment of the project is onebillion, of which 900 million Yuan for fixed assets (mainly investing in land, workshop, production and R & D equipment), 100 million Yuan for initial working capital. The project construction period is two years.In the same year when the project is completed, the production output will reached 30,000 units per year, and realize 2 billion Yuan of annual sales income, 220million Yuan of net profit with 22% of the investment profit rate. The investment recovery period (including construction period) is 6.55 years.

Total investment: $ 151,520,000

Cooperation mode: Sole proprietorship, joint venture, cooperation and other

Project unit: Investment Promotion & Cooperation Bureau of Administrative Committee of Changsha Economic & Technical Development Zone

Mailing address: No.2, Sanyi Road, Xingsha, Changsha, Hunan, China

Contact person: Chen Haiyan

Tel:+86 -731-84011108

3

Project name: New Power Automobile Supporting Industrial Park Project

Project content:

In next few years, the automotive motor production capacity of economic development zone will increase from 200,000 to more than 900,000, which becomes one of the six sections of Chinese automobile industry. The existing local supporting rate is only 29%, and speeding up the construction of the local automobile supporting industry is extremely urgent.

The project covers an area of 200 mu with planning construction area of 226,500 square meters and the total investment is 450 million. Development period is divided into two phases, and first phase engineering will be put into service in 2012. After completion, the project can provide 150 thousand square meters of standard workshops and warehouses, and can offer development platform for nearly 300 automotive supporting enterprises. The expected annual production value of settled enterprises may be nearly 1.5 billion Yuan.

In early period, we have communicated with many motor manufacturers for several times, such as Beijing Foton Motor Group, Guangzhou Automobile Group and Fiat, and we have reached a cooperative intention with Beijing Foton, and will jointly introduce about 15 resources to Hunan automotive supporting enterprise park, including hydro cylinder, steel ring, instruments, traversing mechanism, electrical equipments, etc. We have also communicated with domestic and international big parts factory, and some enterprises expressed the intention to lease and purchase in enterprise’s park. Understood the industrial policy in relevant departments in the development zone, carried out a detailed market research and hired experts to conduct feasibility studies. They have prepared the related operating capital, related industrial real estate development and operational reserve of talents, and have carried out related operation and investment of industrial real estate as well as introduction of management personnel

Total investment: $ 68,180,000

Cooperation mode: Sole proprietorship, joint venture, cooperation and other

Project unit: Investment Promotion & Cooperation Bureau of Administrative Committee of Changsha Economic & Technical Development Zone Mailing address: No.2, Sanyi Road, Xingsha, Changsha City, Hunan Province, China

Contact person: Chen Haiyan

Tel: +86 -731-84011108

4

Project name: AVIC Landing Gear Project

Project content:

AVIC Landing Gear Advanced Manufacturing Corp. is the only aircraft landing gear manufacturer in China, which is integrated and restructured from Shaanxi Liaoyuan Aviation Machinery Co., Ltd. and Hunan Xiangling Machinery Factory which are subsidiary to AVIC II as well as absorbing the Central South University and Zoomlion Heavy Industry Science & Technology Development Co., Ltd. as sponsors to set up jointly. On the basis of this core, choose opportunity to integrate the other units belonged to AVIC II, such as 608 institute, 331 factory, 5712 factory, the Third Institute of Aerospace Science and Industry Group, 310 factory and so on.

The project is invested by AVIC Landing Gear Advanced Manufacturing Corp., with a total planning area of 1,200 mu, located at Maqiaohe Road in the East, Wangcheng Avenue in the west, south to Tongxin Road, north to Jingge Road. The project places emphasis on the manufacture of aircraft landing gear, aviation subcontract production, large aircraft joint venture and cooperation projects, transmission case and other civil-military integration high-tech industrial projects.

Total investment: $ 530,000,000

Cooperation mode:Joint venture

Project unit: AVIC Landing Gear Advanced Manufacturing Corp.Mailing address:Intersection of Hangkong Road and Puri Avenue, Wangcheng Economic Development Zone, Hunan Province

PPostPPost code: 410200

Contact person: Xu Jun

Tel: +86 -731-88073028

5

Project name: Diesel Engine Project in Changsha National Economic and Technological Development Zone

Project content:

The diesel engine of this project belongs to key components and parts of engineering machinery and automobile. With the help of powerful Hunan engineering machinery industry and automobile industryas well as the accordance to industrial development policies of both Hunan province and China, the implementation of this project will have significant economic perspective and social benefits.

The project site is in Changsha National Economic and Technological Development Zone and it plans to occupy an area of 500mu. The construction of this project includes raw material area; spare parts area, mechanical workout area, mechanical workout area, heat treatment area, mechanical workoutand engine run-up area as well as auxiliary projects such as top level engine R&D center and office building. The contraction land is planned to be 240000 square meters with the production capacity of 2 million on engineering plant, SUV, MPV, light truck, commercial vehicle and other auxiliary products.

Total investment:187.5 million USD

Cooperation mode: Cooperation mode,joint venture, sole proprietorship

Project unit:Investment Promotion Cooperation Bureau of the Administrative Committee of Changsha National Economic and Technological Development Zone

Contact person:Chen Haiyan

Tel:86-731-84020186

Fax:86-731-84020036

Email:

6

Project name:Hydraulic System Project in Changsha National Economic and Technological Development Zone

Project content:

Hydraulic system is a key component which applies to industries such as machinery, automobile, ships, aviation and etc..With the help of powerful Hunan engineering machinery industry and automobile industry, as well as the accordance to industrial development policies of Hunan province and China, the project will have significant economic perspective and social benefits.

The project site is in Changsha National Economic and Technological Development Zone and it proposed an area of 300mu with the contraction land of 130,000 square meters. The construction of this project includes: hydraulic system assembly workshop, machining center, cold working center, inspection center, raw material warehouse, semi-finished products warehouse, finished products warehouse, packing material warehouse, andR&D center as well as office building. It is specified in general planning with annual production of 200 thousand engineering machinery and automobilehydraulic system.

Total investment: 101.56 million USD

Cooperation mode:joint venture, sole proprietorship

Project unit:Investment Promotion Cooperation Bureau of the Administrative Committee of Changsha National Economic and Technological Development Zone

Contact:Chen Haiyan

Tel:86-731-84020186

Fax:86-731-84020036

Email:

7

Project name:The Investment Attraction for Engineering Machinery Ancillary Products

Project content:

Shanxi Automobile Changsha Huantong Automobile Making Co., Ltd is specialized in the production and sales of vehicles, special vehicle equipments and spare parts with the registered capital of 14.0625 million US Dollars.By combining the advantages of Shanxi Automobile Group on techniques, brand, market, sales channels of heavy dump truck, heavy tractor semi-trailer and heavy special truck, with the advantages of vehicle cab, car bodies, trailers and other large spare parts in Hunan enterprises, it is planning to invest 156.25 million US Dollars into land acquisition and heavy truck market expansion in south China.

The Demand of Specification, Type and Number of Different Ancillary Products: Autobody(10,000), vehicle frame(10,000sets), automotiveinteriortrim (10,000sets), engine (10,000sets), caraxle(10,000sets), tire(10,000sets), etc

Total Annual Purchase of Ancillary Products:125 million USD

Project unit:Shanxi Automobile Changsha Huantong Automobile Making Co., Ltd

Contact person:Huang Shiwei

Tel: +86-731-86842188

8

Project name:Automobile Gearbox Project in Changsha National Economic and Technological Development Zone

Project content:

The product of this Project, the automobile gearbox, is the important part of automobiles. The implementation of this project has the very great significance to development of vehicles and parts industry cluster in Changsha as well as Hunan Province.

The Project Construction is proposed to use land 200 Mu (133,400 square meters), and the initial construction content building is proposed: the raw material storeroom, finished stock storeroom, packaging material storeroom, machine shop, assembly shop, assembly and disassembly gearbox workshop and parking, maintenance shop of hermetic gearbox, R & D laboratory of gearbox technique, office building and training center. Land used for construction is planed 100,000 square meters. The Project will achieve annual production capacity and maintenance service providing 150,000 automobile gearboxes.

Total investment:78.13 million USD

Cooperation mode:joint venture, sole proprietorship

Project unit:Investment Promotion Cooperation Bureau of the Administrative Committee of Changsha National Economic and Technological Development Zone

Contact:Chen Haiyan

Phone:86-731-84011108

Fax:86-731-84020036

Email:

9

Project name:The Investment Attraction for Engineering Machinery Ancillary Products

Project content:

Zoomlion boats QuantangIndustrial Park,Guanxi Industrial Park,andLuvalley Industry Park and 5,000 employees with annual sales of 1875 millionUS Dollars, mainly specialized in three major series of products of 12-150Ttruck crane, 180-500Tall terraincrane, and 50-3200Tcrawler crane.

The Demand of Specification, Type and Number of Different Ancillary Products: Various types ofhydraulic motors, hydraulicvalves, gear pumps, hydrauliccylinders, gear, wire rope, slewing ring,hook, engine,gearbox, axles,steering, tirerims,two-bedroomand thin parts, drive shaft, Springsteel,outsourcing spare partsand fittings,standard parts, etc.

Total Annual Purchase of Ancillary Products:132.82 million USD

Project unit:Zoomlion Mobile Crane Branch Company

Contact person:Xiao Xuejun

Tel:+86-731-85667042

10

Project name:Hydraulic System Industry Park

Project content:

As the competitive industryin Hunan Province, the engineeringmachinery boasts a group of enterprises and products with high market competitiveness and good business prospects, which has maintained a rapid growth for seven consecutive years.Automobile industry has also developed rapidly in recent years, including 6 major categories of cars, trucks, SUV, special vehicles, buses, three-wheeled cars andother low-speed trucks. The main problems existed in engineering machinery and automotive industries are supporting shortage and narrow industry chain, and it is urgent to improve theability of research, design andproduction of hydraulic system.

Changsha National High-Tech Industrial Development Zoneacquisitions a land area of 33.33 hectares to build a R&D and production base of hydraulic system in Luvalley sci-tech new town. It is expected to introduce leading enterprises with core technology to conduct supporting production for a number of car and engineering machinery enterprises.

Total investment:312.5 million USD

Cooperation mode: Sole proprietorship,Joint venture, cooperation

Project unit: Administrative Committee of Changsha National High-Tech Industrial Development Zone

Contact person: Liu Songjun

Tel: +86-731-88995652

24

Project name: R&D and Production Base Construction Projects for Key Automotive Components, Hubs and Brake Blocks

Project content:

1. Establish institute of automotive parts and industrial park for key components of electric automobile, including the industrial parks for EPS automatic switch, continuously variable transmission, fully mechanical automatic transmission, etc.

2. Construct automotive hub manufacturing base, and plan to cover a land area of 250 mu to build a production line with an annual output of 5 million of "13 -18" aluminum alloy hubs for automobile.

3. Constructa brake block manufacturing base with an annual output of 10 million sets, and plan to covera land area of 30,000 square meters with construction area of 18,000 square meters.

Total investment:$923,080,000

Cooperation mode: Sole proprietorship, joint venture, cooperation

Project unit:Administrative Committee of Zhuzhou High-tech Zone

Mailing address:No.1, North of Zhuzhou Avenue,Tianyuan District, Zhuzhou

Contact person: Nie Minlin

Tel: +86-731-28818549, 13908430811

25

Project name: Electric, Gas, and Oil Hybrid Vehicles Project

Project content:

Zhuzhou Xianghuamei Electric Chu Xiangzhou invented and manufactured the world's first electric, gas and oil hybrid vehicles in July 2010, and obtained the national patent authorized by the State Intellectual Property Office in January 2011.It adopts strong electric design with plug-in module and can drive 80 kilometer under electric mode after charging for 8 hours with 220V civilian electric power. The automobile can alone be driven by gas or oil, also by electric-gas or electric-oil hybrid power.During idling, braking, stopping for passengers up and down under gas, oil mode driving, electric energy can be automatically recycled (independence innovation) with 70% of energy saving.

This patent technology can be applicable to buses, trucks, cars, mini vans, small tourist bus, sanitation trucks for removal and clean.Xianghuamei electric and hybrid vehicles are mainly used as small tourist buses, and supplemented by sanitation trucks. Such vehicles (hybrid power) are a blank in international and domestic field, so it is a revolutionary and "subversive" product.

The project is planned to locate in Zhuzhou Industrial Park and expropriate 100 mu of land to build an assembly line with an annual output capacity of 40,000 small tourist bus and sanitation trucks driven by electric and hybrid power. The construction period is one year.

Total investment: $ 45,690,000

Cooperation mode: joint venture, cooperation,property rights transfer and other

Project unit:Zhuzhou Xianghuamei Electric and Hybrid Vehicles Garage

Contact person: Chu Xiangzhou

Tel: 13077099702; Fax: +86-731 -28207228

E-mail:; Website:

38

Project name:Finished Mass Transit Vehicle Production Base Construction

Project content: