New Capital towards Mineral Resources sector
Translated from Apple Daily, Jul 3, 2007

Mr. Lawrence Wood, the CEO of New Capital, in the interview with Apple Daily said that the prospects of iron and steel, non-ferrous metal, precious metal and petroleum sectors in China show a good trend, New Capital is interested in any business opportunities in mineral resources sector. Mr. Wood emphasized that real estate and hotel investments are also the main focus of New Capital.

He said New Capital through CPDH holds 33.42% of equity interest of Beijing Richmond Park project. The Phase II and Phase III of the Project will be completed in the second half year, which have 230 units, 51,300 square meters and selling price of Rmb19,000 to 20,000 per sqm. As according to the 33.42% shareholding, Rmb 326 million sale proceeds will be reflected in the accounts in the second half year.

New Capital holds two commercial floors of Wuhan Xing Cheng Building, the property provides annual rental income of 2 to 3 million. Mr. Wood said that New Capital is looking for real estate investment opportunities in Beijing, Shanghai, Chengdu and Chongqing, cooperating with local developers to acquire land and develop properties. It is expected that real estate investment maintains at 40% of the Company's turnover.

Mr. Wood shows prospect to the China tourism industry. New Capital has established a joint venture with Sichuan Mishan Investment Company Limited to develop economic hotels in South West region in China. Mishan now has 4 economic hotels, the standard room price is Rmb158, the room number is from 100-300, occupancy rate at 90%. He expects that the hotel business will account for 10% of the Company's turnover.