Appendix Iii Property Valuation

APPENDIX III PROPERTY VALUATION

The following is the text of a letter, summary of values and valuation certificate, prepared for the purpose of incorporation of this prospectus received from American Appraisal China Limited, an independent valuer, in connection with their valuations as at 30th September, 2003 of the property interests of the Company in the PRC.

11th November, 2003

The Directors Wumart Stores, Inc. 10th Floor, Yuquan Building Yu Quan Road Shijingshan District Beijing The PRC

Dear Sirs/Madams,

In accordance with your instructions to value the property interests owned by Wumart Stores, Inc. (the ‘‘Company’’) andits subsidiaries(hereinafter together referredto as the ‘‘Group’’) in the People’s Republic of China (the ‘‘PRC’’), we confirm that we have carriedout inspection, made relevant enquiries andobtainedsuch further information as we considernecessary for the purpose of providing you with our opinion of the value of such property interests as at 30th September, 2003 (the ‘‘valuation date’’) for inclusion in this prospectus.

BASIS OF VALUATION

Our valuation of the property is our opinion of open market value which we woulddefineas intended to mean ‘‘the best price at which the sale of an interest in a property might reasonably be expectedto have been completedunconditionallyfor cash consideration on the dateof valuation assuming:

(i) a willing seller;

(ii) that, prior to the dateof valuation, there hadbeen a reasonable period(having regardto the nature of the property andthe state of the market) for the proper marketing of the interest, for the agreement of price andterms andfor the completion of the sale;

(iii) that the state of the market, level of values andother circumstances were, on any earlier assumed date of exchange of contracts, the same as on the valuation date;

(iv) that no account is taken of any additional bid by a purchaser with a special interest; and

—241— APPENDIX III PROPERTY VALUATION

(v) that both parties to the transaction hadactedknowledgeably, prudently andwithout compulsion.’’

VALUATION METHODOLOGY

For the property interests in Group I, the land underlying the Buildings of the properties was obtained by way of State Allocation, which cannot be transferred, leased, or mortgaged freely by Wumart Stores, Inc. without the approval by the relevant government bodies and payment of land premium to the government. In the circumstances, we have attributedno commercial value to these property interests because of the non-assignability of these properties in the open market.

For the property interests in Group II andIII, which are occupiedby the Group in the PRC, they are considered to have no commercial value either because of their non-assignability in the open market, or there are prohibitions against subletting and/or assignment contained in the respective lease and/or tenancy agreement, or the lack of substantial profit rent.

For property interests in Group IV, which have been subleasedby various independentthird parties, we have adopted the income capitalization approach. In the income capitalization approach, value is developedon the basis of capitalization of the net earnings that wouldbe generatedif a specific stream of income can be attributedto the property interests concerned.This approach is most applicable to investment andgeneral-use properties where there is an establishedand identifiable rental market.

ASSUMPTIONS

Our valuations have been made on the assumption that the owners sell the property interests on the open market without the benefit of any deferred term contracts, leasebacks, joint ventures, management agreements or any similar arrangements which couldserve to increase the value of such property interests. In addition, no forced sale situation in any manner is assumed in our valuations.

No allowance has been made in our valuations for any charges, mortgages or amounts owning on any of the property interests valuednor for any expenses or taxation which may be incurredin effecting a sale. Unless otherwise stated, it is assumed that all the property interests are free from encumbrances, restrictions andoutgoings of an onerous nature, which couldaffect their rental values.

For the property interests in Group I, which are statedin the valuation certificate, as the land on which the Buildingsare erectedis heldunderlong-term leases, we have assumedthat the company has free anduninterruptedrights to use the Buildingsfor the whole of the unexpiredterms of their respective landleases.

We have assumedthat all consents, approvals andlicenses from relevant government authorities for the buildings andstructures erectedor to be erectedthereon have been granted. Also, we have assumed that unless otherwise stated, all buildings and structures erected on the site are heldby the owners or permittedto be occupiedby the owner.

—242— APPENDIX III PROPERTY VALUATION

It is assumedthat all applicable zoning, landuse regulations andother restrictions have been compliedwith unless a non-conformity has been stated,definedandconsideredin the valuation certificate. Further, it is assumedthat the utilization of the property andimprovements is within the boundaries of the property interests described and that no encroachment or trespass exists unless notedin the valuation certificate.

Other special assumptions andqualifications for each property, if any, have been statedin the footnotes of the valuation certificate for the respective property.

TITLESHIP INVESTIGATION

We have been provided with the extracts of documents in relation to the lease/tenancy agreement or other various types of contractual agreements of the property interests situatedin the PRC. However, we have not scrutinizedthe original documentsto verify ownership or to verify any amendments, which may not appear on the copies handed to us. We have relied to a considerable extent on the information provided by the Group and the opinion given by the Group’s legal adviser on the PRC Law.

All legal documents disclosed in this letter and valuation certificate are for reference only and no responsibility is assumedfor any legal matters concerning the legal title to the property interests set out in this letter andvaluation certificate.

We have reliedupon the legal opinion (refer as the ‘‘PRC legal opinion’’) as statedin the property title report dated 11th November, 2003 given by Haiwen & Partners in relation to the legal title to the property interests in the PRC.

LIMITING CONDITIONS

We have reliedto a considerableextent on the information providedby the Group andhave acceptedadvicegiven to us by the Group on such matters as statutory notices, easements, tenure, occupancy, site andfloor areas andall other relevant matters. Dimensions andareas includedinthe valuation certificate are basedon information containedin the documents providedtous andare only approximations.

We have no reason to doubtthe truth andaccuracy of the information as providedtous by the Group. We were also advisedby the Company that no material facts have been omittedfrom the information so supplied. We consider we have been provided with sufficient information to reach an informedview.

We have inspectedthe exterior and,where possible, the interior of the property interests includedin the attachedvaluation certificate. However, no structural survey has been madeandwe are therefore unable to report as to whether the property interests are or are not free of rot, infestation or any other structural defects. No tests were carried out on any of the services. In the course of our inspection, we did not notice any serious defects.

We have not carriedout investigations on site to determine the suitability of groundconditions andservices for the proposeddevelopment, nor have we undertakenarchaeological, ecological or environmental surveys. Our valuation is preparedon the assumption that these aspects are satisfactory andthat no extraordinaryexpenses or delays will be incurredduringconstruction period.

—243— APPENDIX III PROPERTY VALUATION

REMARKS

Unless otherwise stated, all monetary amounts stated in this report are in Renminbi Yuan.

We enclose herewith the summary of valuation andthe valuation certificate.

This report is issuedsubject to our General Service Conditions.

Yours faithfully, For andon behalf of AMERICAN APPRAISAL CHINA LIMITED Leo C. Ho B.Sc., M.T.P., MBA, MRICS, MHKIS, RPS (GP) Vice President

Note: Leo C. Ho, who is a CharteredValuation Surveyor since 1989, has over 16 years of experience in valuation of properties in Hong Kong andthe PRC.

—244— APPENDIX III PROPERTY VALUATION

SUMMARY OF VALUATION

Group I — The propertyinterests held bythe Group for self-occupation

Open Market Value in existing state as at Property 30th September, 2003

1. 117 Mentougou Street No commercial value Mentougou District Beijing The PRC

2. 33 Cheng Zi Zhong Street No commercial value Mentougou District Beijing The PRC

3. 128 Mentougou Road No commercial value Mentougou District Beijing The PRC

4. 76XinQiaoDaStreet No commercial value Mentougou District Beijing The PRC

Group II — The propertyinterests rented and occupied bythe Group

5. Xi Huang Cun Residential Area No commercial value Shijingshan District Beijing The PRC

6. 1 Gu Lou Xi Da Street No commercial value Changping District Beijing The PRC

7. 2XingLongXiStreet No commercial value Tai Ping Zhuang Chaoyang Road Chaoyang District Beijing The PRC

8. 5A Cui Wei Road No commercial value Haidian District Beijing The PRC

—245— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

9. No. 3 De Wai Xin Feng Street No commercial value Xicheng District Beijing The PRC

10. Yong Tai Zhuang No commercial value Qing He Zhen Haidian District Beijing The PRC

11. No. 45 No commercial value Xi San Qi Qing He Zhen Haidian District Beijing The PRC

12. Block 45A No commercial value Beijing University No. 5 Yi He Yuan Road Haidian District Beijing The PRC

13. 3 Jiu Gong Xi Road No commercial value Jiu Gong Zhen Daxing District Beijing The PRC

14. East Of Tuan He Road No commercial value Huang Cun Zhen Daxing District Beijing The PRC

15. Hai Zi Jiao Xi Li No commercial value Huang Cun Zhen Daxing District Beijing The PRC

—246— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

16. 18 Xin Qiao Nan Da Street No commercial value Mentougou District Beijing The PRC

17. 24 Jiu Jing Zhuang No commercial value Da Hong Men Feng Tai District Beijing The PRC

18. No. 21 Linxiaobei Road No commercial value Huangcun Zhen Daxing District Beijing The PRC

19. West of the 2ndBlock No commercial value Yun Qu Yuan Huilongguan Changping District Beijing The PRC

20. No. 99 No commercial value YouAnMenWaiDaJie Fengtai District Beijing The PRC

21. Unit 508, 602, 603, 608, 609, 611, 613, 616, No commercial value 901–908, 918, 1001–1008, 1018 Yuquan Building Yu Quan Road Shijingshan District Beijing The PRC

22. Mu Shi Kou Xi Li No commercial value Shijingshan District Beijing The PRC

—247— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

23. Unit 511, No. 1 Building No commercial value Bei Xiao Yuan Residential Area Tongzhou District Beijing The PRC

24. Unit 11, 12 No commercial value Block 8 Ri Tan Jing Hua Chaoyang District Beijing The PRC

25. Unit 5, Block 2 No commercial value Wu Yi Hua Yuan Tongzhou District Beijing The PRC

26. 1st Floor of Deming Commercial Complex No commercial value Fu Hao Cun, Xuxinzhuang Xiang Tongzhou District Beijing The PRC

27. 87 Yong Shun Xi Street No commercial value Tongzhou District Beijing The PRC

28. No. 8 No commercial value Block 17 Shuai Fu Yuan Hou Nan Cang Tongzhou District Beijing The PRC

29. North of the Shuangqiao Brick Factory’s Dorm No commercial value Chaoyang District Beijing The PRC

—248— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

30. Zhong Jie No commercial value De Ren Wu Cun Yong Le Dian Xiang Tongzhou District Beijing The PRC

31. Xiao Wu Commercial Street No commercial value Yong Le Dian Xiang Tongzhou District Beijing The PRC

32. 1 Ding Fu Zhuang Xi Street No commercial value Chaoyang District Beijing The PRC

33. 1st Floor No commercial value 2 Qiao Zhuang Xi Qu Yong Shun Zhen Tongzhou District Beijing The PRC

34. Che Li Fen Cun No commercial value Li Yuan Zhen Tongzhou District Beijing The PRC

35. Block 2 No commercial value Hui Min Yuan Chaoyang District Beijing The PRC

36. Unit 8, 9 Block 1 No commercial value 87YunHeDongDaJie Tongzhou District Beijing The PRC

—249— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

37. Block 24 No commercial value Yu Qiao Nan Li Tongzhou District Beijing The PRC

38. Hu Ge Zhuang Cun No commercial value Hu Ge Zhuang Xiang Tongzhou District Beijing The PRC

39. Nan Jing Yu Lu No commercial value Song Zhuang Cun Song Zhuang Zhen Tongzhou District Beijing The PRC

40. Unit 611, 612 No commercial value Block 11 San Yuan Cun Tongzhou District Beijing The PRC

41. A5, 1st Floor No commercial value No. 51 Building Xiluyuan Tongzhou District Beijing The PRC

42. Yu Jia Wu Cun No commercial value Yu Jia Wu Xiang Tongzhou District Beijing The PRC

43. Unit 212 No commercial value Block 10 Yi Le Bei Jie Tongzhou District Beijing The PRC

—250— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

44. Unit 32, 4th Block, Xishuangyuan No commercial value Tongzhou District Beijing The PRC

45. Da Xin Zhuang Cun No commercial value Zhang Jia Wan Zhen Tongzhou District Beijing The PRC

46. 3A Xi Hai Zi Xi Street No commercial value Tongzhou District Beijing The PRC

47. Tuan Li Cun No commercial value Song Zhuang Zhen Tongzhou District Beijing The PRC

48. Yu Pu Shang Ying Cun No commercial value Tai Hu Xiang Tongzhou District Beijing The PRC

49. Da Gao Cun No commercial value Tongzhou District Beijing The PRC

50. 511 Yu Jiang Jia Yuan No commercial value Ci Qu Zhen Tongzhou District Beijing The PRC

51. 1 Mentougou Road No commercial value Mentougou District Beijing The PRC

—251— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

52. 1 Heishan Da Street No commercial value Mentougou District Beijing The PRC

53. North of the Yuxin Middle School, Xinqiao Nan Da Street No commercial value Mentougou District Beijing The PRC

54. 42 East Street of Sanjiadian No commercial value Mentougou District Beijing The PRC

55. 1st Floor No commercial value No. 1 Building, Chengze Yuan Residential Area Binhe Road, Mentougou District Beijing The PRC

56. No. 1 Chengzi East Street No commercial value Mentougou District Beijing The PRC

Group III — Propertyinterests occupied bythe Group in the PRC under various types of contractual agreements

57. Ba Jiao Bei Li Caishichang No commercial value Shijingshan District Beijing The PRC

58. Gu Cheng Da Street No commercial value Shijingshan District Beijing The PRC

—252— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

59. 256 Xin Hua Da Street No commercial value Tongzhou District Beijing The PRC

60. West of Zhan Qian Bei Street No commercial value Shunyi District Beijing The PRC

61. KeDaMarket No commercial value West of Yu Quan Road Shijingshan District Beijing The PRC

62. 43 Xin Hua Da Street No commercial value Tongzhou District Beijing The PRC

63. West of Jin Ding Street No commercial value Shijingshan District Beijing The PRC

64. Ping Guo Yuan No commercial value Shijingshan District Beijing The PRC

65. East of Gao Jing Guang Ning Road No commercial value Shijingshan District Beijing The PRC

66. Wu Li Tuo No commercial value Shijingshan District Beijing The PRC

67. Shi Cao No commercial value Shijingshan District Beijing The PRC

—253— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

68. Shou Gang Residential Area No commercial value Xi Jing Xiao Qu Shijingshan District Beijing The PRC

69. 1st Floor No. 22 Building No commercial value Gu Cheng Bei Road Shijingshan District Beijing The PRC

70. Gu Cheng Nan Road No commercial value Shijingshan District Beijing The PRC

71. Ping Guo Yuan Da Street No commercial value Shijingshan District Beijing The PRC

72. 1st Floor No. 9 Building No commercial value Shi Wan Ping Shijingshan District Beijing The PRC

73. East of Ba Da Chu Road No commercial value Shijingshan District Beijing The PRC

74. 1st Floor of Commercial Building No commercial value No. 14 Xin Hua Bei Street Tongzhou District Beijing The PRC

75. Lao Shan Bei Li No commercial value Gu Cheng Bei Road Shijingshan District Beijing The PRC

—254— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

76. Jin Ding Xi Street No commercial value Shijingshan District Beijing The PRC

77. No. 129 No commercial value Chang Xin Dian Da Street Fengtai District Beijing The PRC

78. 115 Nan Da Yuan No commercial value Feng Tai Zhen Fengtai District Beijing The PRC

79. Dong Da Street No commercial value Fengtai Zhen Fengtai District Beijing The PRC

80. 53 Dong Er Tiao No commercial value YouAnMenWai Fengtai District Beijing The PRC

81. Building 7 & 8 No commercial value Zhao Gong Kou Xiao Qu Fengtai District Beijing The PRC

82. 25 Tai Ping Qiao Dong Li No commercial value Fengtai District Beijing The PRC

83. 2 Building No commercial value LuGouQiaoBeiLi Fengtai District Beijing The PRC

—255— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

84. Yong Wai Xi Luo Yuan No commercial value Fengtai District Beijing The PRC

85. 25 Ma Jia Pu Dong Road No commercial value Fengtai District Beijing The PRC

86. 1st Floor No commercial value 26 Building Chang Xin Dian Fengtai District Beijing The PRC

87. 53 Jiao Men Bei Road No commercial value Ma Jia Pu Fengtai District Beijing The PRC

88. 14A No commercial value Xin Hua Street Yi Li Feng Tai Zhen Fengtai District Beijing The PRC

89. 9 Zhu Jia Fen San Li No commercial value Fengtai District Beijing The PRC

90. 62 Xi Yang Gong Zhuang No commercial value Chang Xin Dian Fengtai District Beijing The PRC

91. No. 5 No commercial value An Le Lin Pu Huang Yu Fengtai District Beijing The PRC

—256— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

92. Xi Qu Yi Li No commercial value Bei Da Di Fengtai District Beijing The PRC

93. Gu Cheng Bei Street No commercial value Shijingshan District Beijing The PRC

94. Dong Li No commercial value Yun Gang Nan Qu Fengtai District Beijing The PRC

95. 5 Gu Lou Nan Da Street No commercial value Miyun District Beijing The PRC

96. No. 62 Mentougou Road No commercial value Mentougou District Beijing The PRC

97. No. 22 Heisanda Street No commercial value Mentougou District Beijing The PRC

98. No. 49 Sanjiadian Dong Street No commercial value Mentougou District Beijing The PRC

99. No. 13 Quanmenwai Street No commercial value Mentougou District Beijing The PRC

100. No. 28 Xin Qiao Da Street No commercial value Mentougou District Beijing The PRC

—257— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

101. No. 133 Anquanxia Street No commercial value Mentougou District Beijing The PRC

102. No. 1 No commercial value Nan Ying Fang Tongzhou District Beijing The PRC

103. No. 10 No commercial value JiuKeShu Tongzhou District Beijing The PRC

104.6XinHuaDaStreet No commercial value Tongzhou District Beijing The PRC

105. 155 & 156 Xin Cheng Nan Guan No commercial value Tongzhou District Beijing The PRC

106. No. 10 No commercial value BanBiDianDaStreet Tongzhou District Beijing The PRC

107. No. 7 Building No commercial value Xin Cheng Dong Li Tongzhou District Beijing The PRC

108. 70, A70, Block 1 Zhong Cang, No commercial value Xi Da Street Tongzhou District Beijing The PRC

—258— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

109. 193 Zhong Shan Street No commercial value Tongzhou District Beijing The PRC

110. 59 Bei Da Street No commercial value Tongzhou District Beijing The PRC

111. 67 Nan Da Street No commercial value Tongzhou District Beijing The PRC

112. No. 4, 5 No commercial value Yang Zhuang Tongzhou District Beijing The PRC

113. No. 10 No commercial value Yu Qiao Zhong Road Tongzhou District Beijing The PRC

114. 12 Xi Ping Street No commercial value Capital Airport Chaoyang District Beijing The PRC

115. No. 6 Well Shuangqiao East Road No commercial value Chaoyang District Beijing The PRC

116. 12 Shuangqiao Street No commercial value Chaoyang District Beijing The PRC

—259— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

117. FoodPurchase andSale Center No commercial value Xuxinzhuang Xiang Tongzhou District Beijing The PRC

118. No. 129, 131, 133 & 135 No commercial value Bei Yuan Tongzhou District Beijing The PRC

119. Zaoyuan Commercial Street Huangcun Zhen No commercial value Daxing District Beijing The PRC

120. Yong Le Dong Qu No commercial value Shijingshan District Beijing The PRC

121. Ping Guo Yuan Er Qu No commercial value Shijingshan District Beijing The PRC

122. Gu Cheng Da Jie No commercial value Shijingshan District Beijing The PRC

123. Block 6 No commercial value Qiao Nan Si Li Fengtai District Beijing The PRC

124. No. 18 No commercial value Han Pian Zi Er Li Fengtai District Beijing The PRC

—260— APPENDIX III PROPERTY VALUATION

Open Market Value in existing state as at Property 30th September, 2003

125. East of Shi Jia Lu Kou No commercial value Ma Chang Road Han Zhuang Zi Qiao Nan Fengtai District Beijing The PRC

126. No. 34 No commercial value Po Tou Cun Mentougou District Beijing The PRC

127. Block 9 No commercial value Fang Xing Yuan Yi Qu Fang Zhuang Fengtai District Beijing The PRC

128. Yong Le Xiao Qu No commercial value Shijingshan District Beijing The PRC

129. 1st Floor No. 25 Building No commercial value Yong Le Xi Qu Shijingshan District Beijing The PRC

130. 49 Zengchan Road No commercial value Mentougou District Beijing The PRC

—261— APPENDIX III PROPERTY VALUATION

Group IV — Propertyinterests held bythe Group for investment purpose

Open Market Value in existing state as at Property 30th September, 2003

131. 84 Xin Hua Da Street RMB6,362,000 Tongzhou District (60% interests attributed Beijing to the The PRC Group is RMB3,817,200)

132. No. 16 RMB660,000 Shui Zha Road (75% interests attributed Mentougou District to the Beijing Group is RMB495,000) The PRC

133. No. 48 RMB490,000 Zhong Jie (75% interests attributed San Jia Dian to the Mentougou District Group is RMB367,500) Beijing The PRC

—262— APPENDIX III PROPERTY VALUATION

VALUATION CERTIFICATE

Group I — The propertyinterests held bythe Group for self-occupation

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

1. 117 Mentougou Street The property comprises a single-storey The property is No commercial value Mentougou District residential building completed in or before currently vacant. Beijing 1950. The PRC The property contains a total gross floor area of approximately 55.2 square meters.

Notes:

1. Accordingto a cooperation agreement dated22ndNovember, 2002 among the Company, Beijing Jingmen Stated-owned Assets Operation Centre ( ) andWang Hui-qin ( ), the Group is entitledto 50% shares of the joint venture company, namely Beijing Wumart Shanhe Medicine Company Limited ( ).

2. Under the cooperation agreement, all staff inclusive of the retired from Beijing Medicine Shanhe Medical Products Company ( ) were seconded to the Group, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

3. According to a Real Estate Ownership Certificate Jing Fang Quan Zheng Men Gu Geng Zi No. 00038 issued by Beijing Municipal Administration of State Land, Resources and Housing ( ), the property is heldby Beijing Wumart Shanhe Medicine Company Limited( ).

4. According to the approval letter issued by Beijing Mentougou Municipal Administration of State Land, Resources andHousing ( ), the land, on which the Buildings in Group I are erected, has a total landarea of approximately 3,200 square meters andwas obtainedby way of StatedAllocation. The applicationfortherespectiveLandUseRightCertificateisinprocessing.

5. The fair market value in existing state as at 30th September, 2003 of the subject Building is RMB6,000 under the depreciated replacement cost approach.

6. We have been provided with a legal opinion by the Group’s PRC lawyers who state that the property cannot be transferred,mortgaged,or leasedbefore obtaining the LandUse Right Certificate.

—263— APPENDIX III PROPERTY VALUATION

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

2. 33 Cheng Zi Zhong The property comprises a single-storey The property is No commercial value Street residential building completed in or about currently vacant. Mentougou District 1967. Beijing The PRC The property contains a total gross floor area of approximately 143.10 square meters.

Notes:

3. According to a Real Estate Ownership Certificate Jing Fang Quan Zheng Men Gu Geng Zi No. 00039 issued by Beijing Municipal Administration of State Land, Resources and Housing ( ), the property is heldby Beijing Wumart Shanhe Medicine Company Limited( ).

5. The fair market value in existing state as at 30th September, 2003 of the subject Building is RMB38,000 under the depreciated replacement cost approach.

6. We have been provided with a legal opinion by the Group’s PRC lawyers who state that the property cannot be transferred,mortgaged,or leasedbefore obtaining the LandUse Right Certificate.

—264— APPENDIX III PROPERTY VALUATION

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

3. 128 Mentougou Road The property comprises two single-storey The property is No commercial value Mentougou District commercial buildings completed in or currently vacant. Beijing about 1968. The PRC The property contains a total gross floor area of approximately 154.3 square meters.

Notes:

3. According to a Real Estate Ownership Certificate Jing Fang Quan Zheng Men Gu Geng Zi No. 00040 issued by Beijing Municipal Administration of State Land, Resources and Housing ( ), the property is heldby Beijing Wumart Shanhe Medicine Company Limited( ).

5. The fair market value in existing state as at 30th September, 2003 of the subject Building is RMB43,000 under the depreciated replacement cost approach.

6. We have been provided with a legal opinion by the Group’s PRC lawyers who state that the property cannot be transferred,mortgaged,or leasedbefore obtaining the LandUse Right Certificate.

—265— APPENDIX III PROPERTY VALUATION

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

4. 76 Xin Qiao Da Street The property comprises a 4-storey The property is No commercial value Mentougou District commercial building, a 3-storey office occupiedby the Beijing building and several single-storey Group as drug The PRC auxiliary buildings completed in or about store andoffice. 1980.

The property contains a total gross floor area of approximately 3,633.91 square meters.

Notes:

3. According to a Real Estate Ownership Certificate Jing Fang Quan Zheng Men Gu Geng Zi No. 00041 issued by Beijing Municipal Administration of State Land, Resources and Housing ( ), the property is heldby Beijing Wumart Shanhe Medicine Company Limited( ).

5. The fair market value in existing state as at 30th September, 2003 of the subject Buildings is RMB2,276,000 under the depreciated replacement cost approach.

6. We have been provided with a legal opinion by the Group’s PRC lawyers who state that the property cannot be transferred,mortgaged,or leasedbefore obtaining the LandUse Right Certificate.

—266— APPENDIX III PROPERTY VALUATION

Group II — The propertyinterests rented and occupied bythe Group

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

5.–56. Properties in Beijing, Thepropertiescomprisemanyunits The properties are No commercial value The PRC within approximately 61 buildings in currently occupied Beijing. by the Group as supermarkets, The properties contain a total gross floor convenience area of approximately 89,233.74 square stores, drug stores, meters. offices, logistics center or The properties are subject to 52 warehouses. separate lease agreements for a term ranging from 1 year to 30 years.

Notes:

1. We have been provided with a legal opinion by the Company’s PRC lawyers who state that:

(a) In relation to 25 properties with a total gross floor area of approximately 77,688.1 square meters, the Group is not entitledto sublet each of saidproperties to any thirdparty throughout the term andhas no option to renew each of lease agreements without consent of the landlord.

(b) In relation to 27 properties with a total gross floor area of approximately 11,545.64 square meters, they are unable to confirm as to whether such tenancies or lease agreements are valid, or whether the rights, obligations andresponsibilities undersuch agreements can be enforceable or being protectedby the PRC law. During the course of our valuation, we have treatedthese tenancies as short-term leases with no right of renewal andsub-letting. However, undertakings have been given by the respective contracting parties that the Group shall be allowedto stay until expiring of the terms.

2. 2 properties, with a total gross floor area of approximately 3,500 square meters, are subject to intra-Group lease arrangements. The PRC legal lawyers have confirmedthat such tenancies or lease agreements are valid,and the rights, obligations andresponsibilities under such agreements can be enforceable or being protectedby the PRC law.

—267— APPENDIX III PROPERTY VALUATION

Group III — Propertyinterests occupied bythe Group in the PRC under various types of contractual agreements

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

57.–130. Properties in Beijing, The properties comprise many units 2 properties are No commercial value The PRC within approximately 82 buildings in currently vacant. Beijing. 7 properties are currently licensed The properties contain a total gross to independent floor area of approximately 86,144.8 thirdparties. The square meters. remaining properties are The properties are subject to 17 currently occupied separate cooperation agreements, by the Group as management agreements and supermarkets, cooperative joint venture convenience agreements. stores, drug stores, offices or warehouses.

Notes:

1. According to a management agreement dated 18th November, 1998 between Beijing Shijingshan Tianxiang Trading Company ( ) andthe Group, 21 properties, with a total gross floor area of approximately 7,997.2 square meters, are occupiedby a joint venture company, namely Beijing Wumart Tianxiang Convenience Stores Company Limited( ) (60% ownedsubsidiary of the Group referredto as ‘‘JV Company’’) for a term of 30 years commencing from 1st December, 1998 to 31st November, 2028. The total annual fee for 21 properties from 1st to 15th year is RMB1,500,000 andwill be revised to RMB2,000,000 from 16th year onward. Under the Management Agreement, 933 people were secondedtoJV Company, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

2. According to a management agreement dated 1st October, 1997 between Wumei Holdings, Inc. ( ) andBeijing Shijingshan Tianxiang Trading Company ( ), the property, with a total gross floor area of approximately 3,078.2 square meters, is occupiedby Wumei Holdings,Inc.( ) for a term of 30 years commencing from 1st October, 1997 to 30th September, 2027 at an annual fee of RMB100,000. Under the Management Agreement, 162 people were secondedtothe Group, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

3. According to a management agreement dated 8th August, 2000 between Beijing Tongzhou Yishang Trade Company ( ) (referredto as ‘‘Party A’’) andWumei Holdings, Inc. ( ) (referredto as ‘‘Party B’’), the property, with a total gross floor area of approximately 2,986 square meters, is occupiedby Party B for a term of 20 years commencing from 1st October, 2000 to 30th September, 2020. The annual fee for the property in the 1st year is RMB1,000,000, andfrom 2ndyear onwardis subject to an annual increment of RMB30,000 respectively. Under the Management Agreement, 160 people were seconded to the Group, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

4. According to a management agreement dated 16th August, 2000 between Beijing Guangliquan Grocery Sales Center ( ) andthe Group, the property, with a total gross floor area of approximately 1,000 square meters, is occupiedby Beijing Wumart Convenience Stores Company Limited ( ), 80% ownedsubsidiary of the Group, for a term of 20 years commencing from 1st October, 2000 to 30th September, 2020. The annual fee for the property from 1st to 3rdyear is RMB200,000, andfrom 4th year onwardis subject to a triennial increment of RMB10,000 respectively. Underthe management

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agreement, 20 people were seconded to Beijing Wumart Convenience Stores Company Limited ( ), which is responsible for the work assignment, salary, social insurance and employee benefit of the secondee.

5. Accordingto a management agreement anda supplementary agreement dated12th January, 2000 between Beijing Hongzhi Yiyuan Trade Company Limited ( ) (referredto as ‘‘Party A’’) and the Group, the property, with a total gross floor area of approximately 350 square meters, is occupiedby Beijing Wumart Tianxiang Convenience Stores Company Limited( ) (60% owned subsidiary of the Group referred to as ‘‘Party B’’) for a term of 10 years at an annual fee of RMB21,000. Under the management agreement, 14 people were seconded to the Party B, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

6. According to a cooperation agreement dated 25th March, 1998 and a supplementary agreement dated 8th September, 1999 between Beijing Shunyi Guotai Commercial Building Company ( ) (referredto as ‘‘Party A’’) andWumei Holdings, Inc. ( ) (referredto as ‘‘Party B’’), the property, with a total gross floor area of approximately 6,000 square meters, is occupiedby Party B for a term of 30 years. The annual fee for the property from 1st to 2ndyear is RMB1,480,000, from 3rdto 4th year is RMB1,627,000, from 5th to 9th year is RMB1,775,000, from 10th to 14th year is RMB1,875,000, from 15th to 19th year is RMB1,975,000, from 20th to 24th year is RMB2,075,000, andfrom 25th year onwardis RMB2,175,000. Under the cooperation agreement, at least 65 people were seconded to the Group, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

7. According to a cooperation agreement dated 6th April, 1998 between Beijing Shijingshan Tianxiang Trading Company ( ) (referredto as ‘‘Party A’’) andWumei Holdings, Inc. ( ) (referredto as ‘‘Party B’’), the property, with a total gross floor area of approximately 1,712 square meters, is occupiedby Wumei Holdings, Inc. ( )fora term of 30 years commencing from 1st July, 1998 to 30th June, 2028. The annual fee for the property from 1st to 14th year is RMB500,000, andfrom 15th year onwardis RMB650,000. Underthe cooperation agreement, 90 people were seconded to the Group, which is responsible for the work assignment, salary, social insurance and employee benefit of the secondee.

8. Accordingto a cooperation agreement dated16th August, 2000 anda supplementary agreement among Beijing Tongzhou District Supplemental FoodProductsCompany ( ), Beijing Tongzhou District Sugar Cigarette Wines Spirits Company ( ) andthe Company, the property, with a total gross floor area of approximately 5,427 square meters, is occupiedby a joint venture company, namely Beijing Wumart Tongfu Commerce Company Limited( ) (referredto as ‘‘JV Company’’), 55% ownedsubsidiary of the Group, for a term of 20 years commencing from 1st September, 2000 to 31st August, 2020. The annual fee for the property from 1st to 5th year is RMB1,200,000, from 6th to 10th year is RMB1,600,000, andfrom 11th to 20th year is RMB1,700,000. Underthe cooperation agreement, about 293 people were seconded to the JV Company, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

9. According to a cooperation agreement and a supplementary agreement between Beijing Miyun Gulou Commerce andTrading Company Limited( ) andthe Company, the property, with a total gross floor area of approximately 9,689.48 square meters, is occupiedby a new joint venture company, namely Beijing Wumart Gulou Commerce andTrading Company Limited( ) (referred to as ‘‘JV Company’’), 65% owned subsidiary of the Group, for a term of 30 years. Under the cooperation agreement, all staff from Beijing Miyun Gulou Commerce andTrading Company Limited ( ) were seconded to the JV Company, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.

10. According to a cooperation agreement dated 6th December, 2001 between Beijing Mentougou District Food Company ( ) andthe Company, the properties, with a total gross floor area of 4,778.6 square meters, are occupiedby a joint venture company, namely Beijing Wumart Jingxi Convenience Stores Company Limited( ), 75% ownedsubsidiary of the Group, for a term of 15 years commencing from 27th April, 2002 to 26th April, 2017.

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11. According to a cooperation agreement dated 8th February, 2002 between Beijing Tongzhou District Sugar Cigarette Wines Spirits Company ( ) andthe Company, 14 properties, with a total gross floor area of approximately 24,435.4 square meters, are occupiedby a joint venture company, namely Beijing Tongtang Wumart Convenience Stores Company Limited( ) (referredto as ‘‘JV Company’’), 60% ownedsubsidiary of the Group, for a term of 30 years. Under the cooperation agreement, about 670 people were seconded to the JV Company, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee. The Group is responsible for interests of the liability of RMB5,570,000.

12. According to a cooperation agreement dated 17th December, 2001 between Beijing Hangliantong Trade Company Limited( ) andBeijing Tongzhou District Sugar Cigarette Wines Spirits Company ( ), the property, with a total gross floor area of approximately 224 square meters, is occupiedby Beijing Tongtang Wumart Convenience Stores Company Limited ( ), 60% ownedsubsidiary of the Group, for a term of 2 years commencing from 10th November, 2001 to 9th November, 2003 at an annual fee of RMB80,000.

13. Accordingto a cooperation agreement dated2ndDecember, 2002 between Beijing Shuangqiao Agriculture Service Company ( ) andthe Group, the property, with a total gross floor area of approximately 337 square meters, is occupiedby Beijing Tongtang Wumart Convenience Stores Company Limited( ), 60% ownedsubsidiary of the Group, for a term of 2 years commencing from 1st December, 2002 to 30th November, 2004 at an annual fee of RMB66,000. Under cooperation agreement, 19 people were seconded to Beijing Tongtang Wumart Convenience Stores Company Limited ( ), which is responsible for the work assignment andsalary.

14. According to a cooperation agreement dated 1st July, 2002 between Beijing Radio Movie and TV Set Equipment Manufactory ( ) andthe Group, the property, with a total gross floor area of approximately 300 square meters, is occupiedby Beijing Tongtang Wumart Convenience Stores Company Limited( ), 60% ownedsubsidiary of the Group, for a term of 2 years commencing from 1st July, 2002 to 30th June, 2004 at an annual fee of RMB80,000. Under the cooperation agreement, 12 people were seconded to Beijing Tongtang Wumart Convenience Stores Company Limited ( ), which is responsible for the work assignment, salary, social insurance and employee benefit of the secondee.

15. According to a cooperation agreement dated 1st August, 2002 between Beijing Tongzhou Xuxinzhuang Food Purchase andSales Center ( ) andthe Group, the property, with a total gross floor area of approximately 150 square meters, is occupiedby Beijing Tongtang Wumart Convenience Stores Company Limited( ), 60% ownedsubsidiary of the Group, for a term of 2 years commencing from 1st August, 2002 to 31st July, 2004 at an annual fee of RMB24,000.

16. According to a cooperation agreement dated 15th March, 2001 and a supplementary agreement dated 12th October, 2001 between Beijing Daxingcheng Town Construction Development Group ( ) andthe Company, the property, with a total gross floor area of approximately 4,160 square meters, is occupiedby Wumart Xingshang ( ), 80% ownedsubsidiary of the Group, for a term of 10 years commencing from 1st May, 2001 to 30th April, 2010 at an annual fee of no less than RMB338,000.

17. Accordingto the cooperative joint venture agreement (referredto as ‘‘CJV’’) enteredbetween Beijing Bolante FoodGongmao Group ( ) andWumei Holdings, Inc. ( ), 21 properties, with a total gross floor area of approximately 15,753.22 square meters, are occupiedby the cooperative joint venture company, namely Beijing Wumart Bolante Convenience Stores Company Limited ( ) (80% ownedsubsidiary of the Group referredto as ‘‘JV Company’’), for a term of 30 years commencing 1st November, 1999. According to the CJV, the total annual fee for the property from 1st to 5th year is RMB1,800,000, from 6th to 10th year is RMB2,000,000, from 11th to 15th year is RMB2,400,000, from 16th to 20th year is RMB2, 800,000, from 21st to 25th year is RMB3,400,000, andfrom 26th to 30th year is RMB4,000,000 respectively. Under the CJV, 1,096 people (including 146 people retired) were seconded to the JV Company, which is responsible fro the work assignment, salary, social insurance, compensation andemployee benefit of the secondee.

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18. We have been provided with a legal opinion by the Company’s PRC lawyers who state that:

(a) In relation to 27 properties with a total gross floor area of approximately 11,731 square meters, they are unable to confirm as to whether such tenancies or leasing agreements are valid, or whether the rights, obligations andresponsibilities undersuch agreements can be enforceable or being protectedby the PRC law. During the course of our valuation, we have treatedthese tenancies as short-term leases with no right of renewal andsub-letting. However, undertakings have been given by the respective contracting parties that the Group shall be allowedto stay until expiring of the terms.

(b) In relation to 46 properties with a total gross floor area of approximate 71,335.6 square meters, the Group is not entitledto sublet each of saidproperties to any thirdparty throughout the term andhas no option to renew each of said agreements without consent of the landlord.

(c) In relation to 1 property with a gross floor area of approximately 3,078.2 square meters, the subject agreement is terminable by a reasonable prior notice.

19. 4 properties, with a total gross floor area of approximately 6,538.06 square meters, are subject to intra-Group lease arrangements. The PRC legal lawyers have confirmedthat such tenancies or lease agreements are valid, andthe rights, obligations andresponsibilities undersuch agreements can be enforceable or being protectedby the PRC law.

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Group IV — PropertyInterests held bythe Group for investment purposes

Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

131. 84 Xin Hua Da Street The property comprises a 3-storey The property is RMB6,362,000 Tongzhou District commercial complex andseveral single subleasedby (60% interests Beijing storey buildings completed in or about various third attributedto the Group The PRC 1970. parties. is RMB3,817,200

The property contains a total gross floor area of approximately 1,654.7 square meters.

Notes:

1. According to a cooperation agreement dated 8th February, 2002 between Beijing Tongzhou District Sugar Cigarette Wines Spirits Company ( ) andthe Company, 14 properties are occupiedby a new joint venture company, namely Beijing Tongtang Wumart Convenience Stores Company Limited ( ) (referredto as ‘‘JV Company’’), in which the Group holds60%, for a term of 30 years.

2. Under the cooperation agreement, about 670 people were seconded to the JV Company, which is responsible for the work assignment, salary, social insurance andemployee benefit of the secondee.The Group is responsible for interests of the liability of RMB5,570,000.

3. The property, with a total gross floor area of approximately 1,105.78 square meters, is rentedby various sub- tenants. The term conditions are summarized as follows:

G.F.A. (sq.m.) Term Annual Rent Repair Obligations

390 10 years RMB700,000 p.a. from 1st to 3rdyear Not mentionedin the sub-lease (01/03/2000– RMB742,000 p.a. from 4th to 6th year agreement. 28/02/2010) RMB786,520 p.a. from 7th year onward

100 10 years RMB260,000 in 1st year andsubject to The Group responsible for common (10/06/1998– an annual increment of RMB10,000 area; Sub-tenant responsible for 10/06/2008) from 2ndto 8th year internal repairs. RMB340,000 p.a. during 9th to 10th year

200 3 years RMB60,000 p.a. The Group responsible for common (01/04/2002– area; Sub-tenant responsible for 01/04/2005) internal repairs.

340 4 years RMB120,000 in 1st year The Group responsible for common (16/06/2002– RMB130,000 p.a. from 2ndyear area; Sub-tenant responsible for 16/06/2006) onward internal repairs.

75.78 3 years RMB130,000 p.a. The Group responsible for common (06/08/2002– area; Sub-tenant responsible for 05/08/2005) internal repairs.

4. According to the PRC legal opinion, the owner of the property is Beijing Tongxian Grocery Company ( ).

5. We have been provided with a legal opinion by the Group’s PRC lawyers who confirm that such tenancies or lease agreements are valid,andthe rights, obligations andresponsibilities under such agreements can be enforceable or being protectedby the PRC law.

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Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

132. No. 16 The property comprises a single storey The property is RMB660,000 Shui Zha Road building completed in or about 1989. currently subleased (75% interests Mentougou District by a thirdparty. attributedto the Group Beijing The property contains a total gross floor is RMB495,000) The PRC area of approximately 304.6 square meters.

Notes:

1. Accordingto a cooperation agreement dated6th December, 2001 between Beijing Mentougou FoodCompany ( ) andWumart Stores Company Limited,the property is occupiedby a joint venture company, namely Beijing Wumart Jingxi Convenience Stores Company Limited ( ), 75% ownedsubsidiary of the Group, for a term of 15 years commencing from 27th April, 2002 to 26th April, 2017.

2. The property, with a total gross floor area of approximately 304.6 square meters, is rentedby a sub-tenant commencing from 5th March, 2003 to 31st December, 2005 at an annual rent of RMB100,800.

3. According to the PRC legal opinion, the owner of the property is Beijing Mentougou Food Company ( ).

4. We have been provided with a legal opinion by the Group’s PRC lawyers who confirm that such tenancies or lease agreements are valid,andthe rights, obligations andresponsibilities under such agreements can be enforceable or being protectedby the PRC law.

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Open Market Value in Particulars of existing state as at PropertyDescription and tenure occupancy 30th September, 2003

133. No. 48 The property comprises a single storey The property is RMB490,000 Zhong Jie building completed in or about 1988. currently subleased (75% interests San Jia Dian by a thirdparty. attributedto the Group Mentougou District The property contains a total gross floor is RMB367,500 Beijing area of approximately 274 square meters. The PRC

Notes:

2. The property, with a total gross floor area of approximately 274 square meters, is rentedby a sub-tenant for a term of 3 years commencing from 10th October, 2002 to 9th October, 2005 at an annual rent of RMB4,000.

3. According to the PRC legal opinion, the owner of the property is Beijing Mentougou Food Company ( ).

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