Asset Appraisal Report for XXX and XXX
DongPingZi No.: [2003]302

Dear XXX and XXX:

As Entrusted, Dongguan XXX Assets Appraising Co., Ltd., in accordance with the relevant stipulations on assets appraising of the state, on the principle of "objective, independent, just and scientific", has appraised the assets concerning the assets guarantee through the established appraisal methods. The appraisers have carried out spot inspection, market investigation and inquiries, and have reflected the market value dated October 8th, 2003 fairly. The appraisal result is detailed as follows:

Ⅰ. Overview of Client and Assets Owner
Both client of appraisal and owner of asset are XXX and XXX, both are the residents of Wusha Village, Chang'an Town, Dongguan City, Guangdong Province, with the ID No. of 44252xxxxx04337 and 44252xxxx23340 respectively.

Ⅱ. Purpose of Assets Appraising
It aims to provide current market fair price of the assets to be appraised for the client's asset guarantee.

Ⅲ. Scope and Object of the Appraisal
In accordance with the stipulations of Agreement of Assets Appraising signed by both parties, the Appraising covers business residential buildings, factory building and dormitories.
(1) Business Residential Building
It's a five-storeyed framework building in Wusha Village, Chang'an Town, Dongguan City. It was built in 2000 with a measured building base area of 220.644 square meters, a measured floor area of 1328.404 square meters and a land area of 222 square meters. The exterior has colored brick, aluminum window, glass door, stainless steel door, iron door, and the interior contains granite and glazed ground brick, emulsion paint wall, and emulsion ceiling. Water and electricity utilities are available. The Certificate of House Ownership hasn't been granted, but two Certificates of the Use of Collective Land are available, coded DFJY [200] Zi 1900120604515 and DFJY [2000] Zi 1900120604516 respectively.?

(2) Factory building
It's located in Wusha Liwu Village, Chang'an Town, Dongguan City. It's a steel concrete building. It was built in 1998 with a base area of 1270 square meters and a floor area of 3828 square meters. The exterior has striped brick, polished brick, rolling door and aluminum window, and the interior has terrazzo floor, emulsion paint wall and ceiling. Water, electricity and fire defense facilities are available. The Certificate of House Ownership coded YFDZZi1692244 has been granted.

(3) Dormitory
The dormitory is located in Wusha Liwu Village, Chang'an Town, Dongguan City. It's a five-storeyed steel concrete building. It was built in 1998 with a base area of 696.8 square meters and a floor area of 3243.24 square meters. The exterior has wood door, glass door, striped brick, iron door, aluminum windows, and the interior has terrazzo, unglazed floor, emulsion paint wall, 1.2m tile footing, Schneider zelkova hung ceiling, gypsum board hung ceiling, emulsion paint ceiling. Water, electricity and fire defense facilities are available. The Certificate of House Ownership coded YFDZZi1692245 has been granted.
The above factory building and dormitory are build with rented land, therefore the appraised value does not contain land price.