Opportunities & Challenges to Jardine

Matheson Group in West China

1.Jardines in China

A. Long established with Jardines’ name

Participation in the first foreign JV, BJ Air Catering, and the first foreign industrial JV, China Schindler in 1980

B. Large involved in investment & management in China

Present in 22 cities (Incl. 4

municipalities) in 10 provinces with

employees of more than 11,000.

C. Vigorous Growth in Export Business

With the development of China’s economy and the growth of productivity, Jardine Group through its subsidiaries purchases products in mainland China ranging from building materials to daily supplies and food. The purchases in 2005 increase of US$740 million. This products are not only use interior but also exportation to Asia Pacific areas.

2. Jardines and the West China

A. In May,2001, Mr. Percy Weatherall ,the Ex-President of the Jardine Group visited West China as a member of HK Industrial & Commercial Delegation head by Mr. Donald Tsang, Chief Secretary to Administration of HKSAR.

B. In Feb. 2006, Mr. Henry Keswick, Chairman of Jardine Group visited Chongqing and met the local government departments as well as the local partners.

C. Jardines in West China

Jardine Motors operates Zung Fu Service Co. in Chengdu, mainly dealing with the Mercedes-Benz Cars’ sale and after sale services. Hongkong Land is participating in a large real estate project in Chongqing. The subsidiary Maxim’s is involved in South-west China air catering business and the Starbucks coffee shops.

3. Opportunities in West China

The West China is one of the best market with great potential market in China:

①Rapid growth capability

②Great support from the relevant government departments

③reasonable management cost ( land and human resource)

JM Group has rich experience in management of relevant industries and a mature management team

JM Partners are strong and supportive

4. Challenges to the Development of West China

Long-term and strategic vision is the key to the development of the West China market

①Long-term plan is necessary

②Advanced management concept should be brought to the developing market

③Development of Human resource is the first priority in the market development and the product upgrade

④Enterprise should be localization and integrate into the the local society and the market environment