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VOLUME EIGHT                  |   ISSUE TWO              |   SUMMER 2010
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                                                                                 SOUTHWORTH
             chronicles
SOUTHWORTH INTERNATIONAL AND BESTSUN                                                                   CHINESE GOVERNMENT
                                                                                                       MANDATES DEVELOPMENT
ENERGY TO DEVELOP BEIJING AREA EXHIBITION                                                                 e Chinese Government has stated that the
AND CONFERENCE CENTER FACILITIES                                                                       city of Langfang with its strategic location
                                                                                                       will be the ideal solution to ease the pressure
                                                                     Sample architectural rendering    on Beijing because of close proximity, lower
                                                                           of the new exhibition and   property values, accessibility, and open space.
                                                                     conference center development
                                                                                                       Both the Center and the IDP are well situated
                                                                                                       to become the new gateway for domestic and
                                                                                                       international business and tourism in China.

                                                                                                       EXHIBITION CENTER
                                                                                                       STRATEGICALLY LOCATED
                                                                                                       Langfang is strategically located in the Hebei
                                                                                                       Province, 40 kilometers (25 miles) from the
                                                                                                       Capital of Beijing and 60 kilometers (37
                                                                                                       miles) from Tianjin, one of the largest and


  T
        he Municipal Government of Langfang, China has engaged Southworth                              most important port cities in China. Because
        International and Bestsun Energy to plan, design and build a new, world-class                  of its location in the center between Beijing
        exhibition and conference center. e Center will become a world-renowned venue                  and Tianjin, Langfang is one of the most ideal
  located 25 miles from Beijing. e existing Langfang exhibition center has outgrown its                locations globally for business and commerce.
  capacity and must be enlarged to meet future international demand from the Beijing and                  e city has a total area of 6,429 sq. kilometers
  Tianjin area. e Center will replace not only the existing buildings, but eventually the              (4,000 sq. miles) and a population of over 4
  surrounding Exhibition Park, an 84-acre (392,000 sq. meters) complex.                                million people. is area is roughly the size
                                                                                                       of the Phoenix, Arizona metropolitan area.
As part of the exhibition and conference center,     metropolitan area. Economic growth in the         Within a 200 km (125 miles) radius, there are
Southworth and Bestsun will be developing a          Beijing area is among the highest in the world,   seven expressways, two international airports
shopping area and 5-star hotel. e exhibition         leading to appreciation of real estate values,    (soon to be three), the country’s second largest
and conference center will become the showcase       demand on transportation and infrastructure,      port, a high-speed train, subway system and
for the anticipated Smart City development at        and other issues related to population density.   nearly 150 million people.
the nearby International Demonstration Park.
   e IDP was previously awarded to Southworth                                     Current exhibition                                    O ce building
                                                                                            building                                  at exhibition site
and Bestsun as joint developers of the 30 square
kilometer (18.64 sq. mile) Smart City site near
the Dragon River in West Langfang.

   e Central Government has mandated
accelerated development of the Langfang region
in order to direct future growth and alleviate the
increasing congestion throughout the Beijing

                                                                                                       SOUTHWORTH CHRONICLES | www.Southworth.ms
CONSTRUCTION TO BEGIN IMMEDIATELY ON
EXHIBITION AND CONFERENCE CENTER                                                                        PHASE I:                    Exhibition Center/
                                                                                                                                    Conference Center



                                     T
                                                                                                        COMPLETION:                 December 31, 2011
                                            o meet the growing needs of Langfang’s exhibition                                       400 Room Hotel:
                                            industry, construction and design on the new                                            December 31, 2012
                                            center must begin immediately. e city is hosting            COST:                       $237 million
                                     the annual APEC meeting on “Smart City and Intelligent
                                     Industry” on May 18, 2011, and would like to hold this             PHASE II:                   Executive O ce Space/
                                     meeting in the new facility. In addition, a major exhibition                                   Trade Mart
                                     will take place during this meeting. e construction of             COMPLETION:                 December, 2013
                                     the new hotel and exhibition center will be Phase I of the         COST:                       $38 million
                                     project, with the development of the remaining 60+ acres
                                                                                                        PHASE III:                  Cultural and
 Sample architectural renderings     (approximately 243,000 sq. meters) following therea er.
 of Exhibition & Conference Center
                                                                                                                                    Performing Arts Center
                                                                                                        COMPLETION:                 December, 2013
                                     DEVELOPMENT TO BEGIN IN PHASES                                     COST:                       $33 million
                                     Phase I construction is in the approval stages and will begin
                                                                                                        PHASE IV:                   Retail Shopping/
                                     by November 1, 2010. e Exhibition and Conference
                                                                                                                                    Restaurant Center
                                     Center will be completed by December 31, 2011, and the
                                                                                                        COMPLETION:                 December, 2014
                                     Hotel will be completed by December 31, 2012. Design and
                                                                                                        COST:                       $62 million
                                     construction of the subsequent phases will begin concurrently
                                     with Phase I. e initial starting date for Phases II-IV is July,    TOTAL DEVELOPMENT COST: $370 MILLION
                                     2011, and an approximate completion date of the entire
                                     complex is December, 2014.




                                                                                                                                    Sample - rendering of
                                                                                                                         exhibition and conference center




     ECONOMIC
     IMPACT OF
EXHIBITION AND
  CONFERENCE
        CENTER

                                     L
                                           ocal and provincial governments are the major bene ciaries of exhibition center activities. In virtually all
                                           economic models published, the government provides nancial concessions to exhibition center operators to
                                           support the economic stimulus being brought to the region.

                                        e actual income of the exhibition center may not be great but the value of the economic impact is usually at least
                                     three to ve times more revenue than is generated at the Center itself each year. Major economic bene t is derived in
                                     part from increased tax revenue, tourism spending, job creation, and increased personal spending power of citizens
                                     in the area surrounding the exhibition and conference center.




SOUTHWORTH CHRONICLES | www.Southworth.ms                                   –2–
SOUTHWORTH INTERNATIONAL APPOINTED BY CHINESE
GOVERNMENT TO DEVELOP INTERNATIONAL EXHIBITION
AND CONVENTION CENTER IN LANGFANG, CHINA



Z
        hao Shihong, Langfang, China’s Municipal Party Secretary, recently met with representatives from
        Southworth International and Bestsun Energy Goup and gave approval for Southworth to develop
        the new international exhibition and convention center to be built in Langfang, e purpose of
the new exhibition and convention center is to enhance the existing exhibition infrastructure and bring
larger and more prestigious exhibitions to Langfang in order to better serve the greater Bejing area’s need
for exhibition services.
Bestsun Energy Group, a privately held Chinese         center, multiple exhibition halls and retail
corporation will partner with Southworth on the        shopping space and is expected to be completed in
project. “With Bestsun as our partner and with         December, 2014.
the strong support of the Chinese government,
we are extremely pleased to be developing the          Langfang is a city with extremely convenient
International Exhibition and Convention Center         tra c networks, telecommunication and a
in Langfang,” said Marcus Southworth, chairman         thriving business community. Travel by car will
of Southworth International.                           be enhanced by two new high-speed expressways
                                                       and a new high-speed commuter rail system all
   e Central Government has mandated                   connecting directly from Langfang to Beijing
accelerated development of the Langfang region         and expected to be completed in 2011. A new
in order to direct future growth and alleviate the     international airport is also being built just outside              Party Secretary Zhao Shihong
increasing congestion throughout the Beijing           Langfang which will supplement the Capital                            and Marcus Southworth
metropolitan area. Economic growth in the Beijing      International Airport in Beijing and the Second
area is among the highest in the world, leading        Capital International Airport in the nearby port
to appreciation of real estate values, demand on       city of Tianjin.                                                   With Bestsun as our partner
transportation and infrastructure, and other issues                                                                       and with the strong support
related to population density.                         With it’s close proximity to the IDP “Smart City,”
                                                       Langfang will also be able to draw meetings and                   of the Chinese go ernment, we
Groundbreaking for the Conference Center and           conventions from international businesses that will           are extremely pleased to be developing
Exhibition hall will take place in November of         be established as part of the IDP development.                  the International Exhibition and
2010 and construction of the exhibition and               ese businesses will be mainly focused on high
                                                                                                                       Con ention Center in Langfang.
convention center will be completed in December,       technology, nance, energy, and service industries
2011. e nal three phases of the development            and will be supported using renewable, sustainable
                                                       energy resources.                                                     MARCUS SOUTHWORTH
include a world-class international hotel, business



                                                                             –3–                                SOUTHWORTH CHRONICLES | www.Southworth.ms
Marcus Southworth with Wang Donghai,
                                                                                                               Chairman of Bestsun Energy Group



                                 BESTSUN
                                                         B
                                                                 estsun Energy Group is a large, privately   and is primarily focused on the development,
                                                                 owned natural gas sales, transmission       delivery and operation of clean energy projects.
                                  ENERGY                         and distribution company with               Bestsun constructed and owns gas terminal
                                                         diversi ed subsidiary operations in engineering,    and distribution system operations including
                                   GROUP                 construction, real estate and property              a pipeline of over 1,000 kilometers, serving
                                                         management. Bestsun was founded in 2001             Langfang and Tianjin, China.




     Bestsun Energy Group with Party Secretary Zhao




PRINCIPLE OBJECTIVES OF NEW EXHIBITION CENTER ESTABLISHED

T
         he overall objective of the new Langfang           e Center will have the ability to accommodate    Southworth International: structure and arrange
         Exhibition and Convention Center is             increasing numbers of visitors and the capacity      nancing for the project; engage business
         threefold:                                      to host large, medium, and small events with        partners for design, development, construction
                                                         easy access through a developed transportation      and operations; oversee the entire project for
1.     Create the number one exhibition and              network. It will create a hub for business          successful completion; implement a global
       convention center in the Beijing/Tianjin          partnerships throughout the world and attract       marketing campaign to promote sales and
       corridor with the capacity to host large,         domestic and foreign investment for IDP             activity surrounding the Trade Mart and the
       medium, and small events.                         development.                                        IDP Southworth team in China.
2.     Establish an international gateway for
       global commerce (“Trade Mart”) which              PARTNERSHIP RESPONSIBILITIES                        Bestsun Energy Group: interface with the
       will facilitate interaction between business                                                          government, provide leadership and direction
                                                         In order to accomplish these objectives,
       people from all over the world and bring                                                              for Chinese operations and activities; host
                                                         Southworth International and Bestsun Energy
       investment to the region.                                                                             investors and other partners; provide due
                                                         Group have formed a partnership in the
3.     Serve as a link to the IDP Smart City                                                                 diligence information for the project;
                                                         development of the Center. e Center will
       development which will provide a window                                                               consult with Southworth on the best approach
                                                         follow a private ownership model. e two
       to business, cultural, educational, residential                                                       for each element of the project.
                                                         companies will perform the following duties and
       and other developments at the IDP.                responsibilities:


SOUTHWORTH CHRONICLES | www.Southworth.ms                                      –4–
BUILDING THE INTERNATIONAL
DEMONSTRATION PARK, THE
WORLD’S MOST ADVANCED CITY


T
      he Chinese government has mandated that Langfang will be a “Smart
      City” with the most modern infrastructure, including the latest advance-
      ments in clean energy, sanitation, air quality and transportation. In May
2010 the 21 participating countries of the Asia-Paci c Economic Cooperation
(APEC) and Bestsun Energy Group hosted a 3-day conference in Langfang
China to discuss the development of Smart Cities and Intelligent Industry
throughout the world. Conference invitees included high-level dignitaries from
the U.S. (including former President George W. Bush) and top o cials from the
Chinese government and APEC.

Because of Southworth International’s reputation for doing quality business in
China and its excellent representation in Beijing by Lao Yang, on May 19, 2010
the Southworth Companies were awarded the exclusive rights to develop the
most advanced international city existing anywhere in the world: e Langfang
International Intelligent Demonstration Park (“IDP”), an area of approximately
30 square kilometers (18.64 sq. miles)A focus will be made on attracting interna-
tional businesses who both utilize and produce renewable and sustainable energy
products.

   e vision for both the Exhibition Center and the IDP supports the Central
Government’s plans by reducing the demand on the Beijing infrastructure and
creating an environment that attracts visitors and business investment activity       IDP Site
away from Beijing while maintaining relatively close proximity and convenience
for travelers and business people.

Southworth International is charged to make IDP a model for the global commu-
nity by employing exclusively clean and green technologies as well as creating an
international culture that will attract the regional headquarters of multi-national
companies and residents who are involved in global business.

   e Langfang IDP is considered to be a world class, state of the art residential,
commercial and industrial zone with the highest standard of innovation, technol-
ogy, comfort, convenience and design. Bestsun Energy Group and Southworth
Companies have agreed to work together towards the overall development and
success of the Langfang IDP project, and in ful llment of the Bestsun govern-
ment mandate. e parties will work together to maintain a green, clean and
safe environment characteristic of the highest standards in the world. Bestsun’s      Golf Course near IDP Site
reputation with the Chinese government is very strong and they will manage
the relationship with China. e government has agreed to pave the way for the
project when it comes to zoning restrictions, infrastructure needs or removing
any regulatory roadblocks.

In addition to working closely with the Municipal Government, Southworth/
Bestsun will be working with world-class urban planners, designers and architects
in the planning and construction of a world class Business and Cultural Exchange
Center and the International Demonstration Park. However, a majority of the
work will be completed by Chinese contractors, with nancing provided by a
combination of Chinese and foreign banks and investors.

Southworth has made a commitment to be a long-term partner with Bestsun in
the development and management of the IDP. Southworth’s partners are also
committed to the ideals of the IDP – technology, environmental responsibility,
and building relationships of mutual trust and respect.




                                                                           –5–                   SOUTHWORTH CHRONICLES | www.Southworth.ms
CHINA OFFICIALLY
                                      A
                                                er three decades of spectacular growth,       Experts say unseating Japan — and in recent years
                                               China passed Japan in the second quarter       passing Germany, France and Great Britain —
       HAS SECOND                              of 2010 to become the world’s second-          underscores China’s growing clout and bolsters
    LARGEST WORLD                     largest economy behind the United States. Japan         forecasts that China will pass the United States
                                      showed minimal GDP growth, while its huge               as the world’s biggest economy as early as 2030.
          ECONOMY                     neighbor China continued its blistering rise.           America’s gross domestic product was about $14
                                                                                              trillion in 2009.
                                      For the April-to-June, 2010 quarter, Japan’s GDP,
                                      unadjusted for price or seasonal factors, amounted      China’s economy is nearly 100 times the size it was
                                      to $1.286 trillion, compared to China’s $1.335          when market reforms began three decades ago.
                                      trillion. Japan has been second to the US in GDP
                                      terms since it overtook Germany in 1968. Last year,     Although growth has begun to moderate a bit,
                                      China became the world’s biggest exporter, over         China’s economy is forecast to expand about 10
                                      taking Germany, and is already the largest manufac-     percent — continuing a remarkable three-decade
                                      turer and buyer of cars on the planet.                  streak of double-digit growth.




                                                                                    CULTURE OF THE
                                                                        PEOPLE’S REPUBLIC OF CHINA
                                                          China is one of the Four Ancient Civilizations (China, India, Babylon, and
                                                                  Egypt). It boasts 3,600 years of written history, as well as a rich and
                                                                             profound culture. Chinese culture is diverse and unique,
                                                                     yet harmoniously blended, and is known throughout the world.

                                                               e culture of the People’s Republic of China is a rich and varied blend of
                                                                  traditional Chinese culture with communist and other international
                                                                    in uences. China’s culture is a combination of traditional Chinese
                                                              culture and communism. Much of the diversity of China’s culture seems
                                                             to come from the diversity of the Han Chinese who comprise the largest
                                                                         segment of the population, and national minorities who bring
                                                                        individual elements from their cultures. Chinese culture is also
                                                                                      very much based on the isolation of China which
                                                                              developed over hundreds of years in which it has adapted
                                                                              and changed until today it is a thriving and economically
                                                                                               important part of the world’s economy.




SOUTHWORTH CHRONICLES | www.Southworth.ms                         –6–
SOUTHWORTH INTERNATIONAL

S
       outhworth International is a global   in Angola, a eet of ships in Argentina,
         nancial advisor and investment      acting as the nancial representative for
       banking group with o ces in Salt      the government of Ghana, completely
Lake City and Beijing linking people,        revamping an aircra manufacturing
projects and capital through a broad range   plant in the Czech Republic, relocating
of nancial and opportunity management        an entire steel manufacturing facility from
services. We bring together investors and    the United States to China and funding
capital for business, corporations and       aircra purchases for a major airline.
governments seeking nancial assistance.
                                             Southworth International is currently
Our clients include Fortune 500              involved in nancing a copper mining
companies, governments, venture capital      operation in the United States and with
corporations and institutional and           it’s Chinese partner, Bestsun Energy is
high-net-worth investors. We advise          currently planning, designing and getting
companies on mergers, acquisitions and       ready to begin construction on a new,
  nancial opportunities, implementing        world-class exhibition and conference
innovative debt and equity solutions while   center, shopping center and 5-star hotel in
minimizing risks.                            Langfang, China. e exhibition center
                                             will also become the showcase for the
Over the past decade, principals of          anticipated Smart City development at
Southworth International have placed         the nearby International Demonstration
over a billion dollars of development        Park which was also recently awarded to
capital in the form of equity and loans      Southworth and Bestsun for development
into an extremely wide variety of projects   of a 30 square kilometer (18.64 sq. mile)
including nancing for o shore oil wells      site in West Langfang.




            –7–                        SOUTHWORTH CHRONICLES | www.Southworth.ms
FACTS ABOUT CHINA                                                                NEWSLETTTER
SIZE:                       9,596,961sq km (slightly smaller than the            STAFF
                            United States)
COASTLINE:                  14,500 km                                            Contributors:
ELEVATION:                  Highest, Mt. Everest, 8,850 meters                   Marcus Southworth
                            Lowest, Turpan Pendi -154 meters                     Brady Boardman
POPULATION:                 1,330,141,295 ( July 2010 estimate)                  Doug Free
MEDIAN AGE:                 Male, 34.5 years                                     Curt Bassett
                            Female, 35.8 years                                   Thor Roundy
BIRTH RATE:                 12.17 births/1,000 population (ranks 153 in world)   Connor Southworth
LIFE EXPECTANCY:            Male, 72.54 years                                    Brett Moore
                            Female, 76.77 years                                  Ted Phillips
URBANIZATION:               43% of total population
ETHNIC GROUPS:              Han Chinese 91.5%, remainder, Zhuang,                Subscription:
                            Manchu, Hui, Miao, Uyghur, Tujia, Yi, Mongol,        The Southworth Chronicles
                            Tibetan, Buyi, Dong, Yao, Korean and                 is published quarterly.
                            other nationalities                                  Call for your subscription:
CAPITAL:                    Beijing                                              (801) 535-4677
LABOR FORCE:                813.5 million (2009 estimate)
                            Agriculture, 39.5%                                   Southworth International
                            Industry, 27.2%                                      299 South Main Street
                            Services, 33.2%                                      Suite 1300
                            Unemployment, 4.3% (2009 estimate)                   Salt Lake City, UT 84111
CURRENCY:                   Renminbi yuan (RMB)
TELEPHONES:                 365.6 million main lines (world’s largest)
                            634 million cellular phones (world’s largest)




             !"#$%&"'$%
             !"#$%"&#!'"&(
             Wells Fargo Building
             299 South Main, Suite 1300
             Salt Lake City, Utah, USA 84111

             (801) 535-4677
             www.southworth.ms




SOUTHWORTH CHRONICLES | www.Southworth.ms

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Southworth Chronicles - Summer 2010

  • 1. VOLUME EIGHT | ISSUE TWO | SUMMER 2010 !"#$%&"'$% !"#$%"&#!'"&( SOUTHWORTH chronicles SOUTHWORTH INTERNATIONAL AND BESTSUN CHINESE GOVERNMENT MANDATES DEVELOPMENT ENERGY TO DEVELOP BEIJING AREA EXHIBITION e Chinese Government has stated that the AND CONFERENCE CENTER FACILITIES city of Langfang with its strategic location will be the ideal solution to ease the pressure Sample architectural rendering on Beijing because of close proximity, lower of the new exhibition and property values, accessibility, and open space. conference center development Both the Center and the IDP are well situated to become the new gateway for domestic and international business and tourism in China. EXHIBITION CENTER STRATEGICALLY LOCATED Langfang is strategically located in the Hebei Province, 40 kilometers (25 miles) from the Capital of Beijing and 60 kilometers (37 miles) from Tianjin, one of the largest and T he Municipal Government of Langfang, China has engaged Southworth most important port cities in China. Because International and Bestsun Energy to plan, design and build a new, world-class of its location in the center between Beijing exhibition and conference center. e Center will become a world-renowned venue and Tianjin, Langfang is one of the most ideal located 25 miles from Beijing. e existing Langfang exhibition center has outgrown its locations globally for business and commerce. capacity and must be enlarged to meet future international demand from the Beijing and e city has a total area of 6,429 sq. kilometers Tianjin area. e Center will replace not only the existing buildings, but eventually the (4,000 sq. miles) and a population of over 4 surrounding Exhibition Park, an 84-acre (392,000 sq. meters) complex. million people. is area is roughly the size of the Phoenix, Arizona metropolitan area. As part of the exhibition and conference center, metropolitan area. Economic growth in the Within a 200 km (125 miles) radius, there are Southworth and Bestsun will be developing a Beijing area is among the highest in the world, seven expressways, two international airports shopping area and 5-star hotel. e exhibition leading to appreciation of real estate values, (soon to be three), the country’s second largest and conference center will become the showcase demand on transportation and infrastructure, port, a high-speed train, subway system and for the anticipated Smart City development at and other issues related to population density. nearly 150 million people. the nearby International Demonstration Park. e IDP was previously awarded to Southworth Current exhibition O ce building building at exhibition site and Bestsun as joint developers of the 30 square kilometer (18.64 sq. mile) Smart City site near the Dragon River in West Langfang. e Central Government has mandated accelerated development of the Langfang region in order to direct future growth and alleviate the increasing congestion throughout the Beijing SOUTHWORTH CHRONICLES | www.Southworth.ms
  • 2. CONSTRUCTION TO BEGIN IMMEDIATELY ON EXHIBITION AND CONFERENCE CENTER PHASE I: Exhibition Center/ Conference Center T COMPLETION: December 31, 2011 o meet the growing needs of Langfang’s exhibition 400 Room Hotel: industry, construction and design on the new December 31, 2012 center must begin immediately. e city is hosting COST: $237 million the annual APEC meeting on “Smart City and Intelligent Industry” on May 18, 2011, and would like to hold this PHASE II: Executive O ce Space/ meeting in the new facility. In addition, a major exhibition Trade Mart will take place during this meeting. e construction of COMPLETION: December, 2013 the new hotel and exhibition center will be Phase I of the COST: $38 million project, with the development of the remaining 60+ acres PHASE III: Cultural and Sample architectural renderings (approximately 243,000 sq. meters) following therea er. of Exhibition & Conference Center Performing Arts Center COMPLETION: December, 2013 DEVELOPMENT TO BEGIN IN PHASES COST: $33 million Phase I construction is in the approval stages and will begin PHASE IV: Retail Shopping/ by November 1, 2010. e Exhibition and Conference Restaurant Center Center will be completed by December 31, 2011, and the COMPLETION: December, 2014 Hotel will be completed by December 31, 2012. Design and COST: $62 million construction of the subsequent phases will begin concurrently with Phase I. e initial starting date for Phases II-IV is July, TOTAL DEVELOPMENT COST: $370 MILLION 2011, and an approximate completion date of the entire complex is December, 2014. Sample - rendering of exhibition and conference center ECONOMIC IMPACT OF EXHIBITION AND CONFERENCE CENTER L ocal and provincial governments are the major bene ciaries of exhibition center activities. In virtually all economic models published, the government provides nancial concessions to exhibition center operators to support the economic stimulus being brought to the region. e actual income of the exhibition center may not be great but the value of the economic impact is usually at least three to ve times more revenue than is generated at the Center itself each year. Major economic bene t is derived in part from increased tax revenue, tourism spending, job creation, and increased personal spending power of citizens in the area surrounding the exhibition and conference center. SOUTHWORTH CHRONICLES | www.Southworth.ms –2–
  • 3. SOUTHWORTH INTERNATIONAL APPOINTED BY CHINESE GOVERNMENT TO DEVELOP INTERNATIONAL EXHIBITION AND CONVENTION CENTER IN LANGFANG, CHINA Z hao Shihong, Langfang, China’s Municipal Party Secretary, recently met with representatives from Southworth International and Bestsun Energy Goup and gave approval for Southworth to develop the new international exhibition and convention center to be built in Langfang, e purpose of the new exhibition and convention center is to enhance the existing exhibition infrastructure and bring larger and more prestigious exhibitions to Langfang in order to better serve the greater Bejing area’s need for exhibition services. Bestsun Energy Group, a privately held Chinese center, multiple exhibition halls and retail corporation will partner with Southworth on the shopping space and is expected to be completed in project. “With Bestsun as our partner and with December, 2014. the strong support of the Chinese government, we are extremely pleased to be developing the Langfang is a city with extremely convenient International Exhibition and Convention Center tra c networks, telecommunication and a in Langfang,” said Marcus Southworth, chairman thriving business community. Travel by car will of Southworth International. be enhanced by two new high-speed expressways and a new high-speed commuter rail system all e Central Government has mandated connecting directly from Langfang to Beijing accelerated development of the Langfang region and expected to be completed in 2011. A new in order to direct future growth and alleviate the international airport is also being built just outside Party Secretary Zhao Shihong increasing congestion throughout the Beijing Langfang which will supplement the Capital and Marcus Southworth metropolitan area. Economic growth in the Beijing International Airport in Beijing and the Second area is among the highest in the world, leading Capital International Airport in the nearby port to appreciation of real estate values, demand on city of Tianjin. With Bestsun as our partner transportation and infrastructure, and other issues and with the strong support related to population density. With it’s close proximity to the IDP “Smart City,” Langfang will also be able to draw meetings and of the Chinese go ernment, we Groundbreaking for the Conference Center and conventions from international businesses that will are extremely pleased to be developing Exhibition hall will take place in November of be established as part of the IDP development. the International Exhibition and 2010 and construction of the exhibition and ese businesses will be mainly focused on high Con ention Center in Langfang. convention center will be completed in December, technology, nance, energy, and service industries 2011. e nal three phases of the development and will be supported using renewable, sustainable energy resources. MARCUS SOUTHWORTH include a world-class international hotel, business –3– SOUTHWORTH CHRONICLES | www.Southworth.ms
  • 4. Marcus Southworth with Wang Donghai, Chairman of Bestsun Energy Group BESTSUN B estsun Energy Group is a large, privately and is primarily focused on the development, owned natural gas sales, transmission delivery and operation of clean energy projects. ENERGY and distribution company with Bestsun constructed and owns gas terminal diversi ed subsidiary operations in engineering, and distribution system operations including GROUP construction, real estate and property a pipeline of over 1,000 kilometers, serving management. Bestsun was founded in 2001 Langfang and Tianjin, China. Bestsun Energy Group with Party Secretary Zhao PRINCIPLE OBJECTIVES OF NEW EXHIBITION CENTER ESTABLISHED T he overall objective of the new Langfang e Center will have the ability to accommodate Southworth International: structure and arrange Exhibition and Convention Center is increasing numbers of visitors and the capacity nancing for the project; engage business threefold: to host large, medium, and small events with partners for design, development, construction easy access through a developed transportation and operations; oversee the entire project for 1. Create the number one exhibition and network. It will create a hub for business successful completion; implement a global convention center in the Beijing/Tianjin partnerships throughout the world and attract marketing campaign to promote sales and corridor with the capacity to host large, domestic and foreign investment for IDP activity surrounding the Trade Mart and the medium, and small events. development. IDP Southworth team in China. 2. Establish an international gateway for global commerce (“Trade Mart”) which PARTNERSHIP RESPONSIBILITIES Bestsun Energy Group: interface with the will facilitate interaction between business government, provide leadership and direction In order to accomplish these objectives, people from all over the world and bring for Chinese operations and activities; host Southworth International and Bestsun Energy investment to the region. investors and other partners; provide due Group have formed a partnership in the 3. Serve as a link to the IDP Smart City diligence information for the project; development of the Center. e Center will development which will provide a window consult with Southworth on the best approach follow a private ownership model. e two to business, cultural, educational, residential for each element of the project. companies will perform the following duties and and other developments at the IDP. responsibilities: SOUTHWORTH CHRONICLES | www.Southworth.ms –4–
  • 5. BUILDING THE INTERNATIONAL DEMONSTRATION PARK, THE WORLD’S MOST ADVANCED CITY T he Chinese government has mandated that Langfang will be a “Smart City” with the most modern infrastructure, including the latest advance- ments in clean energy, sanitation, air quality and transportation. In May 2010 the 21 participating countries of the Asia-Paci c Economic Cooperation (APEC) and Bestsun Energy Group hosted a 3-day conference in Langfang China to discuss the development of Smart Cities and Intelligent Industry throughout the world. Conference invitees included high-level dignitaries from the U.S. (including former President George W. Bush) and top o cials from the Chinese government and APEC. Because of Southworth International’s reputation for doing quality business in China and its excellent representation in Beijing by Lao Yang, on May 19, 2010 the Southworth Companies were awarded the exclusive rights to develop the most advanced international city existing anywhere in the world: e Langfang International Intelligent Demonstration Park (“IDP”), an area of approximately 30 square kilometers (18.64 sq. miles)A focus will be made on attracting interna- tional businesses who both utilize and produce renewable and sustainable energy products. e vision for both the Exhibition Center and the IDP supports the Central Government’s plans by reducing the demand on the Beijing infrastructure and creating an environment that attracts visitors and business investment activity IDP Site away from Beijing while maintaining relatively close proximity and convenience for travelers and business people. Southworth International is charged to make IDP a model for the global commu- nity by employing exclusively clean and green technologies as well as creating an international culture that will attract the regional headquarters of multi-national companies and residents who are involved in global business. e Langfang IDP is considered to be a world class, state of the art residential, commercial and industrial zone with the highest standard of innovation, technol- ogy, comfort, convenience and design. Bestsun Energy Group and Southworth Companies have agreed to work together towards the overall development and success of the Langfang IDP project, and in ful llment of the Bestsun govern- ment mandate. e parties will work together to maintain a green, clean and safe environment characteristic of the highest standards in the world. Bestsun’s Golf Course near IDP Site reputation with the Chinese government is very strong and they will manage the relationship with China. e government has agreed to pave the way for the project when it comes to zoning restrictions, infrastructure needs or removing any regulatory roadblocks. In addition to working closely with the Municipal Government, Southworth/ Bestsun will be working with world-class urban planners, designers and architects in the planning and construction of a world class Business and Cultural Exchange Center and the International Demonstration Park. However, a majority of the work will be completed by Chinese contractors, with nancing provided by a combination of Chinese and foreign banks and investors. Southworth has made a commitment to be a long-term partner with Bestsun in the development and management of the IDP. Southworth’s partners are also committed to the ideals of the IDP – technology, environmental responsibility, and building relationships of mutual trust and respect. –5– SOUTHWORTH CHRONICLES | www.Southworth.ms
  • 6. CHINA OFFICIALLY A er three decades of spectacular growth, Experts say unseating Japan — and in recent years China passed Japan in the second quarter passing Germany, France and Great Britain — HAS SECOND of 2010 to become the world’s second- underscores China’s growing clout and bolsters LARGEST WORLD largest economy behind the United States. Japan forecasts that China will pass the United States showed minimal GDP growth, while its huge as the world’s biggest economy as early as 2030. ECONOMY neighbor China continued its blistering rise. America’s gross domestic product was about $14 trillion in 2009. For the April-to-June, 2010 quarter, Japan’s GDP, unadjusted for price or seasonal factors, amounted China’s economy is nearly 100 times the size it was to $1.286 trillion, compared to China’s $1.335 when market reforms began three decades ago. trillion. Japan has been second to the US in GDP terms since it overtook Germany in 1968. Last year, Although growth has begun to moderate a bit, China became the world’s biggest exporter, over China’s economy is forecast to expand about 10 taking Germany, and is already the largest manufac- percent — continuing a remarkable three-decade turer and buyer of cars on the planet. streak of double-digit growth. CULTURE OF THE PEOPLE’S REPUBLIC OF CHINA China is one of the Four Ancient Civilizations (China, India, Babylon, and Egypt). It boasts 3,600 years of written history, as well as a rich and profound culture. Chinese culture is diverse and unique, yet harmoniously blended, and is known throughout the world. e culture of the People’s Republic of China is a rich and varied blend of traditional Chinese culture with communist and other international in uences. China’s culture is a combination of traditional Chinese culture and communism. Much of the diversity of China’s culture seems to come from the diversity of the Han Chinese who comprise the largest segment of the population, and national minorities who bring individual elements from their cultures. Chinese culture is also very much based on the isolation of China which developed over hundreds of years in which it has adapted and changed until today it is a thriving and economically important part of the world’s economy. SOUTHWORTH CHRONICLES | www.Southworth.ms –6–
  • 7. SOUTHWORTH INTERNATIONAL S outhworth International is a global in Angola, a eet of ships in Argentina, nancial advisor and investment acting as the nancial representative for banking group with o ces in Salt the government of Ghana, completely Lake City and Beijing linking people, revamping an aircra manufacturing projects and capital through a broad range plant in the Czech Republic, relocating of nancial and opportunity management an entire steel manufacturing facility from services. We bring together investors and the United States to China and funding capital for business, corporations and aircra purchases for a major airline. governments seeking nancial assistance. Southworth International is currently Our clients include Fortune 500 involved in nancing a copper mining companies, governments, venture capital operation in the United States and with corporations and institutional and it’s Chinese partner, Bestsun Energy is high-net-worth investors. We advise currently planning, designing and getting companies on mergers, acquisitions and ready to begin construction on a new, nancial opportunities, implementing world-class exhibition and conference innovative debt and equity solutions while center, shopping center and 5-star hotel in minimizing risks. Langfang, China. e exhibition center will also become the showcase for the Over the past decade, principals of anticipated Smart City development at Southworth International have placed the nearby International Demonstration over a billion dollars of development Park which was also recently awarded to capital in the form of equity and loans Southworth and Bestsun for development into an extremely wide variety of projects of a 30 square kilometer (18.64 sq. mile) including nancing for o shore oil wells site in West Langfang. –7– SOUTHWORTH CHRONICLES | www.Southworth.ms
  • 8. FACTS ABOUT CHINA NEWSLETTTER SIZE: 9,596,961sq km (slightly smaller than the STAFF United States) COASTLINE: 14,500 km Contributors: ELEVATION: Highest, Mt. Everest, 8,850 meters Marcus Southworth Lowest, Turpan Pendi -154 meters Brady Boardman POPULATION: 1,330,141,295 ( July 2010 estimate) Doug Free MEDIAN AGE: Male, 34.5 years Curt Bassett Female, 35.8 years Thor Roundy BIRTH RATE: 12.17 births/1,000 population (ranks 153 in world) Connor Southworth LIFE EXPECTANCY: Male, 72.54 years Brett Moore Female, 76.77 years Ted Phillips URBANIZATION: 43% of total population ETHNIC GROUPS: Han Chinese 91.5%, remainder, Zhuang, Subscription: Manchu, Hui, Miao, Uyghur, Tujia, Yi, Mongol, The Southworth Chronicles Tibetan, Buyi, Dong, Yao, Korean and is published quarterly. other nationalities Call for your subscription: CAPITAL: Beijing (801) 535-4677 LABOR FORCE: 813.5 million (2009 estimate) Agriculture, 39.5% Southworth International Industry, 27.2% 299 South Main Street Services, 33.2% Suite 1300 Unemployment, 4.3% (2009 estimate) Salt Lake City, UT 84111 CURRENCY: Renminbi yuan (RMB) TELEPHONES: 365.6 million main lines (world’s largest) 634 million cellular phones (world’s largest) !"#$%&"'$% !"#$%"&#!'"&( Wells Fargo Building 299 South Main, Suite 1300 Salt Lake City, Utah, USA 84111 (801) 535-4677 www.southworth.ms SOUTHWORTH CHRONICLES | www.Southworth.ms