1. Project Background

Tourism industry is an emerging sector that is rapidly rising up in the world. As the only tropical island in China, Hainan boasts the unique tropical resources for island tourism. There are fine spring days and no winter days all around the year. With the transformation of people's concept from sightseeing to vacation tourism and the increase of requirement for residential environment, Haikou has become a perfect place for people's residence and vacation since it owns favorable residential environment and convenient municipal service system.

With the favorable tropical coastal environment, weather advantages and plentiful resources of hot spring, mineral water and seawater of the western coast, an international resort with functions of tropical recreation and vacation, keeping health, conference and traveling will be built. The advantage of this project is supplementary to other current projects in western coast, and will be a superior and scaled place for recreation and vacation in western coast, the core area of tourism vacation circle of Qiongzhou Strait in Haikou.

2. Construction Site and Condition

It is located in the core of tourism vacation area of Qiongzhou Strait, neighboring on the "state 4A-grade scenery zone"- tropical sea world theme park. Qiongzhou Strait is in the north, coast western road in the south. It is 4 kilometers away from Haikou Railway Station, 8 kilometers away from Haikou Xiuying Port, 30 kilometers away from Meilan International Airport. The transportation is convenient.

The coastline in the project area is 400 meters long. There exists high-quality mineral water about 300 meters underground, hot spring water about 850 meters underground with water temperature of about 42℃ and abundant water resource .

3. Construction Content and Scale

The construction content in the first phase includes Qiongzhu Coast Ecological Villa & National CPPCC (Hainan) Conference and Training Center. The land area is 439.53 mu, total floor area is 100 thousand square meters. It includes:

1) Five-star resort hotel: the floor area is planned to be 4000 square meters.

2) Health center system: the floor area is planned to be 3000 square meters.

The system will integrate health-keeping, hot spring and mineral water park and its scenery, water system and municipal arrangement together, adopt the style of "health corridor" to build professional service center (comprehensive clinic, health examination center, research office, archives etc), hot spring and mineral water recuperation center, beach game recuperation center, park forest bar and so on.

3) National CPPCC Hainan Conference and Training Center: the floor area is planned to be 3000 square meters. 2 open conference rooms that can hold 1000 persons and 2 multi-function halls that can hold 500 persons will be built; the simultaneous interpretation system, projector, video recorder, infrared receiving earphone, video system, large screen rear projector, VCD etc will also be equipped.

The construction content in the second phase includes Red Setting Sun International Villa

The land area is 255 mu, floor area is 50 thousand square meters, including property resort hotel, resort apartment and Kangle center etc.

4. Investment Estimate

Total investment is 710 million yuan, among which, 510 million yuan for the first phase and 200 million for the second phase.

5. Project Progress

The first phase: the work of project approval, general planning and design, review of the project "Qiongzhu Coast Ecologic Villa & National CPPCC (Hainan) Conference and Training Center" has been completed. Water, electricity, communication are available and land reclamation has been completed.

The second phase: the work of project approval, feasibility research report, evaluation report on environment monitoring and general planning and review of the project "Red Setting Sun International Villa" has been completed. This project is listed as "key preparation project of 2003 in Hainan Province" approved by Hainan Provincial Department of Development and Reform.

6. Mode of Investment Promotion

Cooperation, shareholding.

7. Mode of Contact

Contact Agency: Hainan Jinshi Investment Co., Ltd.

Contact Person: Wen Shuqiang

Tel: 0898-68554273

Fax: 0898-68554173