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1、ShanghaiInternationalAutoTown:GoldenGatetotheVastChineseMarketBrochureforAutoDealersOctober14,2001PhotoofmayorXuKuangdiSignatureofMayorXuContentsChina'sautoindustryandmarkettrendsChina'boomingautomarketShanghai'outstandingautoindustryHighpotentialShanghaiInternationalAutoTown(SIAT)SIAT-L

2、ocationofChoiceforautodealersAdistinctivepurchasingexperienceAnefficientbusinessenvironmentPreferentialgovernmentpolicysupportAttractivefinancialprospectsSIATinvestmentapplicationprocedureandcontactinformationMapofShanghaiAmodernautotownwillemergeinWestShanghai.ItwillbeagoldengatetothevastChineseaut

3、omarket.LocatedinthemostadvancedareaofChina,NearthemostdevelopedautobaseofthecountryWithhighqualityprofessionalandtechnicaltalent,Enjoyingsupportfromapragmaticandambitiousgovernment,ExertinginfluenceontherestofthenationChina'autoindustryandmarkettrends(Generalbackgroundinformation)China'sBoo

4、mingAutomobileMarketInjustafewyearsfromnow,China'automobilemarketwillenjoyrapidandsustainedannualgrowthofover10percent.By2010,Chinaisexpectedtobeoneofthethreemajorautomobilemarketsintheworld.Annualdemandforcarswillriseto5.8millionunits.Exhibit1:EstimatedautomarketsalesandvolumeHugepotentialmarke

5、t:Incomingyears,China'automobileindustrywillgrowmuchfasterthantheworldaverage.Increasedpercapitaincomes,growingdemandforpassengerandfreighttransportation,improvedroads,policiesencouragingautomobilepurchases,andtariffchangesfollowingChina'stotheWTOwilldrivethisgrowth.Bigopportunitiestocreatev

6、aluebeyondautoindustryTherewillbeenormouspotentialforserviceanddistributionbusinesses.Inthenext10years,thegrowingmarketfornewcarsandtheemergenceanddevelopmentoftheusedcarmarketwillsustainprofitgrowthof10-15percentayearinautomobiledistribution,anddrivethedevelopmentofmaintenance,credit,andinsurancebu

7、sinesses.ShanghaiBestPlacedtoSupporttheComingAutoBoomAstheeconomic,financialandcommunicationcenterofChina,Shanghaioffersallthefavorableconditionsforsupportingthecomingautoboom.Goingbytheestimatesofprofessionalorganizations,theboominChina'autoindustrywilltakeplaceintheChangjiangRiverDelta.Marketd

8、emandherewillincreaseby1020percentannuallyinthenext10years.Apartfromthishugelocalmarket,otherpartsofthecountrywillalsogeneratemassivedemand.Shanghai'sautomobilemanufacturingfoundationisratedoneofthebestinChina.ShanghaiwasthefirstinChinatointroducetheVolkswagen“Santanacarin1983.Afternearly20years

9、ofdevelopment,ShanghaihasbecomeamaturemanufacturingbaseproducingtheSantana,Passat,Buick,ShanghaiVolvobus,andDatongheavytruck.Shanghai'sautomobileoutputamountstoon-fifththatofthewholecountry.Moreover,Shanghai'soveralldevelopmenthasattractedtheattentionoftheworld.Agreatmanyoutstandingprofessio

10、nalshavecometoworkandliveinthisbeautifulcity,whichenjoysthereputationof“apearlintheEast“Asaresult,Shanghaiboastsofafirst-ratetalentpool.Inshort,Shanghai'vastmarketpotential,strongmanufacturingfoundation,developedmarket,richtalentbase,economicpowerandfavorablegeographicallocationmakeitthefirstcho

11、iceasChina'sautoandtransportationcenter.Exhibit2:PicturesofautomobilesHighPotentialShanghaiInternationalAutoTownSIATisacomprehensiveautocenterfocusingonautotradebutincludingR&D,logisticsservices,exhibitionandeducation,tourismandcarmaking.ItislocatedinAnting,atowninWestShanghai,atthejunctureo

12、fJiangsu,ZhejiangandShanghai.SIATwillbuildonShanghai'existingadvantages,leverageglobaltrendsintheautoindustryandconsumerpreferences,andbuildnewcoreskillstosetupacomprehensivemodernautomobileeconomicsystem.TheShanghaiMunicipalGovernmenthasspeciallyestablishedtheSIATDevelopmentCo.,Ltd.,topromoteth

13、eplanningandimplementationoftheproject.MajorshareholdersincludeShanghaiAutoIndustryGroupCompany,ShanghaiGoodsandMaterialsGroup,andtheInvestmentCompanyofJiadingDistrictGovernment.SIATinvitedinternationalexpertsinallfieldstoconducttheinvestigationandresearch,designingandverificationoftheproject.Itspla

14、nthusincludeseconomic,social,human,andaestheticaspectstoensurethebestreturnoninvestmentandthemostattractiveenvironment.WithsupportfromtheShanghaiMunicipalGovernment,SIATisbeingbuiltatanunprecedentedspeed.Thebasicstructurewillbesetupintwoyears,andthewholeprojectshouldbecompletedwithinfivetosixyears.S

15、IATwillgreatlypromotethedevelopmentofChina'sutoindustryandbecomeacenterofexcellenceinShanghai.Exhibit3:SIATCoreTradingZonemapSIAT-LocationofChoiceforAutoDealdrsAnumberoffeatureswillmakeSIATthelocationofchoiceforbuyingortradinginautomobiles.SIATwillofferapurchasingexperiencelikenoother,attracting

16、customersinmassivenumbers.Itwilloffercost-effectiveoperatingconditionsandunprecedentedGovernmentsupport.Allthiswillmakelargeprofitsaveryattainabletargetforoccupants.ADistinctivePurchasingExperienceMatchlessshoppingenvironment:SIATguaranteesauniqueexperienceforautobuyersandautofans.OneofSIAT'shig

17、hvaluefeatureswillbeanautotradeexhibitionincludingamassive,contemporaryexhibitionhall.SIAT'sradingandexhibitionzoneoccupies630,000squaremeters.AnothermajorfeatureisalargescaleAutoExperienceParkinwhichvisitorscantestdrivealldifferentkindsofcars.TheparkwillbeequippedwiththebestfacilitiesinShanghai

18、,infact,inAsia.Vastchoiceofbrands:Majorautodealerswilldisplayallthelatesttypesandmodelsofcars,meetingtheneedsandpreferencesofallkindsofcustomers.Easyaccesstoallauto-relatedservicesT:hetradeandexhibitionzonewillprovideone-stopservicestoconsumers.Theywillhaveeasyaccesstoon-siteserviceproviders,includi

19、ngautoloans,insurance,registration,taxationandotherrelatedservices.Thiswillmakepurchasingasconvenientandpleasantaspossibleforautobuyers.Attractivebusinessoptions:Thezonealsooffers3Sdealershipfranchises,anautotrademarket,andausedcarmarket.EconomicandefficientbusinessenvironmentSIATwillprovidedealersw

20、ithcost-effectiveandefficientoperatingconditionsandservices.Cost-effectiveoperation:SIATwillhelpdealersoperateatlowcost.Tenantdealerswillenjoydifferentland-pricesubsidies,basedonthetimingoftheirmovetoSIAT,andwillbeabletouseequipmentandfacilitiessuchaswarehousesandtransportfreeoratalowfee.First-ratei

21、nfrastructure:Theautotradeandexhibitionzonewillprovidefirst-rateinfrastructureandfacilitiestotenantdealers,includingbroadband,cablenetworkandothermoderncommunicationfacilities.On-sitesupportservice:DealersinSIATwillalsobenefitfromon-sitesupportserviceproviders,includingHRservices,ITsupport,andfinanc

22、ialservices.Flexibleentryterms:DealerscanchoosefromdifferentoptionstoenterSIAT,basedontheirneeds.Theycanleaselandtosetupbuildings.Ortheycanrentanalready-constructedsalesoffice.Ineithercase,theywillenjoythebestmarketingandsalesfacilitiesthatSIATcanoffer.GovernmentsupportandpreferentialpolicyBoththeCe

23、ntralGovernmentandtheShanghaiMunicipalGovernmentplacegreatimportanceonthedevelopmentofSIAT.Toshowtheircommitment,theyareofferingmorefavorablepolicysupporttoSIATthantoanyotherspecialeconomiczone.Favorabletaxationpolicy:TheGovernmentwilloffertaxincentivesandsubsidiestoSIAToccupants.Toattractkeytenants

24、,theGovernmentwillofferfavorableITT,VAT,businesstaxandconsumptiontaxwithcorrespondingfinancialsubsidiesbasedontenantleases.TheGovernmentwillalsoprovidefinancialsubsidiestodealers/companiessponsoringexhibitions,tradefairsandothercommercialactivitiesinSIAT.Low-pricedlandusage:SIAToccupantswillalsoenjo

25、yfavorablelandusageterms.Tenantdealerswillhavethebenefitoflow-pricedlandusagebasedonthelengthoftheirleases.Earlyentrantswhorentorbuildsalescitieswillalsoenjoyaspecialleasingprice.Freetradezonepolicy:ImportandexportpolicywillbegearedtoencouragingtradeinSIAT.Toencourageimport&exportbusinessesinSIA

26、T,afreetradezonewillbecreatedwithprivilegedimport&exporttaxationpolicy.Foreign-fundedautodealerswillhavetherighttoimportandexport,distributeandsellautosinSIAT.TheGovernmentwillalsoprovidespecialtariffsandservicesfortheimportandexportofmachines,equipmentandautosusedinSIAT.ComprehensiveGovernments

27、ervices:TheGovernmentwillalsosupportoccupantsbyhelpingfundandbuildfacilitiesandbylocatingservicesinSIAT,toensureeffectiveandtimelyservice.TheGovernmentwillhelpfundinfrastructurebuildingandtheconstructionoftransportationfacilitiesinthetownandsurroundingarea.RelevantGovernmentagenciesincludingindustri

28、alandcommercialmanagement,environmentalprotection,tax,customsandpropertymanagementwillsetupon-siteofficestospeed-upandsimplifyworkingprocedures.RelevantGovernmentagenciesincludingthevehiclemanagementofficeofthePublicSecurityBureau,TaxBureau,RoadMaintenanceTaxationOfficeandPassengerTransportManagemen

29、tOfficewillalsosetupone-stopservicesforlicenseplateauction,registration,cartrial,etc.AttractiveProfitPotentialSIATwillbeahighlylucrativepropositionforoccupants.Itssuperiorenvironmentwillattractahugeamountofvisitors,buildcustomervolumes,andbringinlargeautodealers.Tremendousbusinessopportunitieswillbe

30、comeavailablethroughtheautoexhibitionandintheformofexpoandthemeparks.Exhibit4:SalesRevenue*NetProfit*"Predictiononsalesrevenueandprofitisbasedonanalysisofsimilarautodealer3sshopsSIAT'cost-effectiveoperatingenvironmentwillensurehighmargins<OK?>andthusprofits.Takinganauto3Sshop,forexamp

31、le,SIATcouldprovidethedealerwithareturnoninvestedcapitalof8%,muchhigherthantheaveragefor35shopslocatedinotherregionsofShanghai,whichcanbeaslowas3%.Extrabenefitslikelowlandusagepriceandfavorabletaxationwillalsoenhanceprofits.InvestmentproceduresandcontactinformationSIATwelcomesalldealerswhoaspiretoin

32、vestinChinasautomarkettosetupsalesofficeshere.Requirementsforapplication:Withthewhole-heartedsupportoftheShanghaiMunicipalGovernmentandofinternationalprofessionalsinassociatedfields,SIATaimstobuildafirst-classautotown.TobecomeapartofSIAT,allcardealersshould:Haveahighlyqualifiedmarketingandsalesmanag

33、ementteamEnjoygoodreputationandsuperiorproductqualityProvidegoodaftersalesservice.ApplicationProcedure:TheSIATDevelopmentCompanyisresponsiblefortheplanning,developmentandmarketingoftheproject.Interesteddealersshouldcontactthecompanydirectly.Theprocesswillbeasfollows:Applicantsshouldsubmitanapplicationformandletterof

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