China IT Land, Infrastructure, Channel and profit matrix

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China IT Land, Infrastructure, Channel and
profit matrix

• Opportunities for US Business Alliances in
  Chinas Most Dynamic IT Marketplace
• 08/02/01

IT China Land
June 2001
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Program Itinerary

• Introductions
• Company
• Project
• Finance
• Competition and Risk
• Operation
• Team
• partner
• Conclusion

IT China Land
June 2001
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Introduction

• A 1.6 million of Intelligent complex, only one
  in the world.
• First place to host and demo world class IT
  players in China.
• Unique channels to connect all of IT related
  business as well as
• people, culture and society.
• A profit center for e-learning, technology,
  networking, education,
• e- business, entertaining, service industries
  and so on.
• World top event and business center.
• Chinas top program, media, publish and IT
  exchange center.
• Very best site for technology development and
  research.
• A well connected incubator and marketing
  channel.
• Very first and private own project in 2008
  Beijing Olympic park.
• A window for China and world IT developer.

IT China Land
June 2001
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Company

• IT China Land Co., Ltd.. started as private
  enterprise in 1998.
• Joint Ventured between Beijing Ethnic Park Group,
  a HK joint ventured private cooperation, and Sino
  US Commercial group, a US based consulting and
  holding company in May 2001.
• Developed Beijing Ethnic Park and IT Land complex
  in near 150 acres land in Beijing Olympic park.
• A entertaining and real estate developer which
  include restaurants, retails, clubs, hotels,
  movie/perform center, amusement park, etc..
• A technology and market developer that include
  Internet date center, e-commerce, software,
  wireless, satellite and so on.
• A media and culture organizations with TV
  channel, broadcasting, publisher, museum,
  exhibition center, e-learning, etc.
• A open, experience and reliable counterpart.

IT China Land
June 2001
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China IT Land project

• A 1.6 million square feet of complex locate
  inside of Beijing Olympic Park and junction with
  Beijing Ethnic Park.
• Attached another 1.2 million square feet of
  entertaining complex ( indoor Sea World, Movie
  Mall, Hotel )
• Government Support and Promotion
• Private own and operation
• Perfect location and size for world class IT
  player in hosting, event, exchange,
  demonstration, education and trading.
• Well built intelligent space for business,
  education and event
• Unique marketing, developing and research
  channels for business, technologies, products and
  services
• Low competition and risk
• Strong financial background and revenue model
• Open and ready to off ground

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Finance

• Fund by Hong Kong investors and SUCG, China IT
  land Co., Ltd. Have been spend near 100 million
  in past 10 years, and will continue to be
  supported by its founders, and new investors and
  partners.
• CITC will create another 6 million for the
  project and look for another 40 -100 million for
  further completion and operation.
• CITC may apply a loan during 2001 2002 if it is
  necessary, and will return it within 5 years.
• CITC is no debt and its cash flow currently is
  positive.
• Estimated revenue in first year is 12-14 million
  and 30-40 increase in next 5 years.

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Competition and Risk

• Risk -
• Long term capital support
• team player
• expansion space
• Politic influence
• Accident

• No Competition!
• No such location
• No such land available
• No second plan
• No such operating co.
• No possible for another

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Operation Agenda
Aug. 01 Discuss with investors and
partners, bring engineer on sites. Sept. 01
new team show up, News Conference. The first
version of proposal and business plan.
Sign agreement with investors and
partners. Oct. 01 The first sum of investment
arrival (5-10 million), full team
function, Finish business/operating plan, the
first project start. Nov. 01 Second fund come (
no less 10 million ), some projects start
museum, hotel, IDC, e-book city and exhibition
center, etc. Dec. 01 The third fund (70 of
total) come and all projects start. Feb. 02
All investment done and the first project open
public ( March 02) Full 03 All projects
complete and open public.
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Team

• Mr. Bai Ruo Bin, Chairman
• Ms. Wang Ping, Vice Chairman
• Mr. Lijian Lin, CEO and president
• Mr. Tony Tang, CFO
• Mr. Guangbin Yang, EVP Operation
• Mr. Yang Wang, VP Technology
• Mr. Xinjun Lee, VP International
• Mr. Mark Zhang, VP Business development
• Ms. Amy Guang, Project Manager
• ( detail see resume )

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China In Transition

• In general, the legal and political climate in
  China is getting better government is becoming
  more transparent and market based reforms are
  being instituted
• Initial trend in Joint Ventures now migrating
  toward wholly-owned operations
•  
• WTO promises to further open up the
  communications and other industries
• Positive and growth market size and new policies
  are creating real opportunities for foreign
  companies to do business in China
•  
• However, flexibility, patience, and commitment is
  still required one step backward for every two
  steps forward
• 2008 Olympic Game will be another big impact !

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• Everything open to negotiation
• Central government now vies for power with strong
  municipal and provincial governments, such as
  Beijing, Shanghai, Shenzhen, Chengdu, Tainjin,
  etc.
• Importance of the negotiation of the business
  scope in the Business License
• Often desirable to establish a FIE under the
  local approval body (COFERT) rather than the
  central government (MOFTEC).
• Certain activities or technologies, such as GSM
  or CDMA manufacturing requires central government
  approval (MII).
• Partners are usually SOEs first negotiate with
  partners and then negotiate with government
• All technology and fund transfer agreements must
  be approved by the government often will limit
  amount of royalty and rules.

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• APEC, Japan Economic Organization, Japan Economic
  Development
• Associations, European e-commerce committee,
  China IT Union, China
• Computer World, China elearning network
  Cooperation, Beijing Global
• Internet Data Center, Beijing Global Software
  Institution, China eBook City,
• Beijing information Bureau, ChinaUSe-com, Inc.,
  China PDA Committee,
• Hong Kong Octopus Commercial Channel, Ltd.,
  Beijing eChannel, Ltd.,
• Midwest Group ( ISP part ), China International
  Enterprise Exhibition Group,
• Sub office from MII, Scientific technology
  Adm., Adm. Of Education,
• State of Consul, Beijing Municipal office,
  Culture Dept., and other central
• and province government offices, China Computer
  Business News and other
• 5 media and IT consulting and advertise
  companies, China IT Quality
• Control Institution, Apollo Technology, Ltd.,
  Zhong Wei Group ( ISP part,
• such as China Online ), offices from telecom
  companies, such as China
• telecom and Beijing Telecommunication
  cooperation, China TV and cable
• development incorporation,
• The list of company from US and potential event
  hosted will be separated
• ( such as Wart Mart ).

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COMPANY STRUCTURES
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FINANCE LEASE JV (SAMPLE)
Public End Users
Central MOFTEC
Vendor
MII
VPNs
(1)
Approval
License
Telcos
x equity
Foreign Investor
Telecom Equip. Finance Lease JV
(3)
(4)
Basic Telecom Operator
10-20x debt
ISPs/ASPs
(2)
Off-shore Fiber Swaps
1. Equipment Supply Agreement 2. Service Support
Agreements 3. Pay-Go Structured Finance Lease
Agreement Related Services Agreements 4. Capacit
y Off-take Agreements
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Patience Is a VirtueYu Gong Yi Shan
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CUSEC
US Alliance Companies
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Chinese AllianceCompanies
CUSEC
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Follow-Up Opportunities
CUSEC

• Open to any where of China IT and commercial
  market
• Leading e-business, IT technology player in China
• Well-secured center for profit and revenue
• unique channel to connect business with media,
  culture and finance.

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Bridge the Opportunities!