Investment Outline of Business Inviting Projects of Hunan Publishing Investment Holding Group Co., Ltd.

Information of Preess

Preess Resort & Hotel (hereinafter abbreviated as Preess Hotel or Hotel) was put into operation on December 28, 2003;
Register capital is 200 million Yuan ;
Registration address: No. 8, Xingcheng Dadao Road, Wangcheng Country, Changsha City;
Business scope: guest room, restaurant, entertainment and amusement, conference and exhibition, commerce and trade, tourism, advertisement;
Legal person: He Shunqiu;
Website: www.preess.com.

Ownership Structure of Preess
Shareholders of Preess: Unit (10,000 Yuan)

History
Preess was established on July 15, 2003. Important items of Preess (main prizes won by Preess in recent years): in December, 2003, Preess Resort & Hotel won the prize of ¡°ecological Hotel¡± and the prize of ¡°Dedication of sustainable development¡±; in April 2005, Preess Hotel joined the Alliance of Golden Key Hotels (AGKH); in June 2005, Preess Hotel won the NO.1 ¡°Service Prize of Golden Key Hotel¡±; in November 2005, Preess Hotel won ¡°Original Publication Culture Theme Hotel of China¡±; in February 2006, Preess Hotel was qualified ¡°the Best Star-level Hotel of Hunan in 2005¡±; in April 2006, Preess Hotel was awarded ¡°Five-star Diamond Prize¡±; in June 2006, Preess Hotel was awarded ¡°5C Quality Prize¡± by Golden Key International Honour Society. Preess Hotel has been qualified as ¡°an enterprise of 5A sanitation level in Hunan Province¡±, ¡°an Honesty Enterprise of Foods Sanitation in Changsha City¡±, elected as ¡°Standing Member Enterprise of Hunan Travel Association¡±, ¡°vice Director Enterprise of Changsha Travel Association¡± and etc.
Business of Preess
Main business and products of Preess:
Preess Hotel consists of Main Building, Building of Conference and Restaurant, SPA, Villas, a Nature Ground and a Platform of View, which has 222 guest room/suits, 14 villas and 10 conference rooms; the main foods is Tanfu Palace Cuisine with comprehensive varieties of Xiang Cuisine, Yue Cuisine and Western Foods as supplements, and the Hotel¡¯s vegetable and fruit base specially provides green foods for itself; the Hotel has many entertainments including traditional ones such as sauna bath, foot bath, swimming, chess & cards, tennis, billiards, table tennis, skybox bar, hairdressing, fitness center, performing arts center, as well modern ones such as sand ball, climb, sunshine water bar, water stage, tropic custom island and etc. Especially, SPA presented with the unique hotspring resource possessed by the Hotel, swordplay club with international standards exclusively and newly introduced by the Hotel and modern Golf are the largest sales points and hot consumption items of the Hotel. Except for 8 doorposts, moveable-type printing, Zhouyi and other cultural elaborate works, the Hotel has specially emplaced a museum to show Chinese 5000-year writing history, which improves the Hotel¡¯s cultural quality to a higher level. The Hotel presented an operational opinion of commercial entertainment, which actively combines the functions of commercial hotel and holiday hotel and forms an originally new operation. The Hotel's guest resources are mainly club members and conference guests, and as to its market orientation, the Hotel has designed a series of services of humanity and individuation, such as intelligentized management, sitting service at proscenium for checking in, Pink Series Businesswoman Guest Room, One-to-one Butler Service, restaurant and skybox call system, gold key for conference, as well hotspring, Nature Ground and green foods, all of which make guests feel at home and valuable. There are enjoys of rurality, green nature, fitness & entertainment and tour of culture for guests to visit Preess Hotel.
Incomes distributing from main business:

Outline of hotel industry
Market scale and increment: by strengthening its internal management, Preess Hotel improves its sales and quality of services, widen its market channels, and then its guests and incomes increase successively. Now Preess Hotel occupies 40% market share among Changsha entertainment & holiday hotels, and its sales increases 15% annually.
Competition of hotel industry: depending on the development of itself, Preess Hotel strengthens its brand operation, successively improves its brand image to support its operation. After 2 years operation and practice, the Hotel has developed a management system very suitable to its features, achieved good scores in all aspects, and been ranked No.1 among Changsha entertainment & holiday hotels. He Tongxin, vice-governor of Hunan Province, said that Preess Hotel has been a flag of Changsha entertainment & holiday hotels. The Hotel is accurately oriented to conference guests, holiday guests, club commercial guests, and specially presents some individualized services; all of its unique hotspring resource, beautiful entironment, accurate market orientation and high-quality services contribute to its core Competency. The main rivals of Preess Hotel are Xiangtan Paragon Hotel, Dolton Resort Hotel, Hunan International Convention & Exhibition Hotel and other holiday hotels.

Management group and staff of Preess Hotel

Business development
Orientation and development strategy of Preess: to take ecology as its feature, actively combine the functions of entertainment & holiday hotel and commercial hotel, focus on both conference market and club market. Meanwhile, depending on the Hotel, to exercise group operation, combine chain operation and multiple operation, strengthen and improve the brand ¡°Preess¡±.
Business development plan: as solidifying conference market, to promote commercial guest market. When the Hotel in preparation, it was oriented to combining the functions of entertainment & holiday hotel and commercial hotel, but for some reasons, commercial market has not been developed well. Now to meet the demands of commercial guests and club, the Hotel plans to present ¡°Outdoors Hotspring¡±, ¡°Outdoors Yoga¡±, ¡°Preess Lecture¡±, ¡°Family Cultivation Park¡±, ¡°Medical Examination Center¡±, ¡°Fish Treatment¡± and other new items, totally over 10 items, to attract high-end commercial guests. Entertainment is the emphasis of the Hotel, and the Hotel is negotiating with several cooperative parties to adjust its structure, enrich its products and improve its incomes by strong-strong cooperation.
Additionally, in recent 2 years put into operation, the Hotel has primarily established its brand and enjoyed rather high awareness and reputation in society by a series of active brand promotions. As to now, the Hotel has basically prepared conditions to output its management brand and exercise chain operation. Now the Hotel has entered into active negotiation with Zhangjiajie Olympic Hotel and Zhongrong Times Square, both of which have sincerity to trust their hotels to the Hotel, and at present the parties are in communication and discussion with relative cooperation matters.
In future 3 years, Preess Hotel¡¯s incomes from main business will increase 12% annually in plan, and the proportion of entertainment and restaurant will be improved successively to further improve operatine incomes.
Financial situation:

Advantages of Preess
1. The advantage of ecologic Hotel will be more obvious
Preess Hotel¡¯s land area is 600 Mu (a Chinese area unit, 2000/3 square meters), which is twice as Hunan Interntional Convention & Exhibition Hotel and 100 Mu larger than Dolton Resort Hotel, and the proportion of green-belt area of the Hotel is over 70% of the total area, which is the highest in Hunan hotel industry. Additionally, raw materials for foods of Preess Hotel are mainly provided by 90 Mu green vegetable and fruit base of itself, totally green foods, and this condition is not possessed by the other hotels.
2. Unique concept of hotspring
Despite that Hunan Interntional Convention & Exhibition Hotel and Dolton Resort Hotel locate at the suburb of Changsha City, they have not concept and resource of hotspring. In whole Changsha region, hotspring is the unique competitive advantage of Preess Hotel, in a short term there will not be any other 5-star hotel that also has this advantage.
3. More particular cultural background
Comparing with Dolton Resort Hotel (affiliated to Hunan Tongcheng Industrial Group Co., Ltd.) and other similar hotels, cultural background of Preess Hotel shall be an important competitive advantage. Though Hunan Interntional Convention & Exhibition Hotel (its largest shareholder is Hunan TV £¦ Broadcast Intermediary Co. Ltd.) also has a cultural background, but concurrently Preess Hotel has several supports of cultural background of newspapers, media and publications possessed by its largest shareholder. Meanwhile, Preess Hotel insists on operation concept of cultural services in all time, and has comparatively obvious competitive advantage and cultural features.
4. To pay more attention on construction layout and guest room design
Comparing with Hunan Interntional Convention & Exhibition Hotel and Dolton Resort Hotel, the layout of Preess Hotel pays more attention on the features of entertainment. Either the overall layout and facilities in hotel or internal design of guest room (such as walkway room, internal arrangement of guest room), Preess Hotel's design are more suitable to entertainment demand of guests, which ensures that guests may be really comfortable and relaxed, and meet more entertainment demands of guests.
5. Newest and best fitness and entertainment facilities
Preess Hotel has the newest and best fitness and entertainment facilities in Changsha region, which may provide swordplay with international standards, golf and other many kinds of entertainments that may not be provided by other most high-end hotels. Now among all 5-star hotels in Changsha City, Preess Hotel¡¯s fitness and entertainment facilities are the newest and best.
Capital operation
Capital introduction plan: the Hotel plans to introduce new investor by transferring idle stock ownership, meanwhile, under a certain condition, Hunan Publishing Investment Holding Group Co., Ltd. may transfer the Hotel¡¯s control.
Capital introduction scale and fund use plan: fund introduced shall be mainly used for the Hotel¡¯s multiple operation, such as to establish hotel management company, travel agency, hotel management college, real estate management company and etc.
Requirements to target investors
1. To devote itself to long-term development of the Hotel;
2. Having abundant experience and relative resources on hotel operation and being able to provide enough investment fund to support future development of the Hotel;
3. To identify with present business opinions and basic market orientation of the Hotel, present the management group of the Hotel, and being able to introject present corporate culture of the Hotel.
Contact information
Contact person: Tang Zhenyu, Zhang Wenfei
Tel: 0731-4302627 4302523
Mobile: 13873119586
Fax: 0731-4302627
E-mail: tangzhenyu@hnpg.com.cn
zhangwenfei@hnpg.com.cn