Some of the ventures undertaken by Hutchison China include:

Hutchison OPTEL Telecom Technology Company Limited is an equity joint venture between Hutchison China and Chongqing OPTEL (a company collectively owned by the staff of Hutchison OPTEL). The initial total investment of the joint venture is about USD20M. It specializes in designing and manufacturing of optical transmission equipment including SDH, DWDM and in particular, equipment for the metro multi-service provision platform (MSPP).

Hutchison China partnered with Guangzhou Masson to form a joint venture in Guangzhou for developing the health food business in Mainland China. The joint venture aims to further develop the business by strengthening the competitiveness of the established health food brands from Guangzhou Masson. The joint venture plans to become a leader in health food industry in Mainland China. The initial investment of the joint venture is RMB230 million.

Guangzhou Masson is a state-owned enterprise established over 100 years ago. Through continuous modernization, Guangzhou Masson has evolved from a traditional company to become a large enterprise having advanced technology in manufacturing oral care products, cosmetics, laundry products, health food, food additives and other related products. Guangzhou Masson also possesses valuable R&D expertise, up to-date manufacturing skills and good management systems.

Sen is a wholly owned subsidiary of Hutchison Whampoa (China) Limited (HWCL). During the past years HWCL has leveraged its expertise in the PRC Chinese medicine business and extensive global consumer products marketing expertise to create the Sen brand of Chinese Medicine products. After extensive consumer research in both the US and Europe, HWCL worked with some of the world's top branding agencies to develop a Chinese medicine proposition that would appeal to Western consumers. This proposition, the Sen brand, was launched into the London market in December 2002 via a premium retail execution. Sen sells a range of classical Chinese formulae, Chinese medicine based teas and tonics, and provides high class Chinese medicine consultation services to the UK market.

HWCL is actively participating in the third party logistics business in China through its wholly owned subsidiary Hutchison Logistics Services Ltd ("HLSL"). HLSL is formerly known as Hutchison-Tibbett & Britten Limited, a joint venture company formed between HWCL and Tibbett & Britten Group PLC way back in 1999. By early 2006, HWCL successfully bought out Tibbett & Britten Group's interest and renamed the Company HLSL.

Hutchison Whampoa (China) Limited established Guangzhou Cascade Trading Limited ("Cascade") in 1999 to provide an one-stop-solution on distribution service for manufacturers in Mainland China. With its Guangzhou headquarter, two branch offices and nine RDCs located in the major cities of China, Cascade's distribution network coves 420 cities fallen within 31 provinces of Mainland China. The Company is the strategic partner of multinational consumer goods and health food manufacturers such as Procter & Gamble, Warner Lambert, Hutchison Healthcare and Golden Valley/Lamb Weston. The Company is also the sole agent on China imported products of Procter & Gamble and Warner Lambert.

Starting in the eighties, China was importing a rapidly increasing number of western aircraft (Boeing, McDonald Douglas, Airbus) to cope with the expansion of tourism and business travel. However, China did not have the technical capability for maintaining and overhauling these western aircraft. Aircraft maintenance and engineering is a skilled, labour intensive industry. China had a lot of cheap labour but not the skills. Hutchison China saw the huge potential in this opportunity to help CAAC build up a domestic capability to service and overhaul this large fleet of western aircraft, with the prospect that after China developed its skills and qualified work force, it would be able to compete for international airline work with its low cost labour structure.

Building on the success of GAMECO, Hutchison China again saw an opportunity in Hong Kong for aircraft maintenance. Before the new airport at CLK was opened, Swire-owned HAECO had a virtual monopoly for aircraft maintenance at the former Kai Tak Airport. It charged monopoly prices and made large profits. At the new CLK Airport, the Hong Kong Government decided to introduce competition for providing this service. Hutchison China put together a consortium comprising CNAC, which represented all the Chinese airlines and correspondingly the second largest user of CLK airport, British Airways and United Airways. This grouping gave the consortium 30% share of the Hong Kong aviation maintenance market. Technical know-how was provided by United Airlines and British Airways. The new company is named China Aircraft Services Limited (CASL). It has been an instant success. CASL has provided better service at lower prices than HAECO. In addition to the consortium airlines, CASL has also been able to gain other third party airlines as customers. This successful venture has been in operation since 1998.

In 1994, when the depressed hotel industry in Beijing was beginning to recover, Hutchison China saw the chance to buy into well known hotels at depressed prices. Hutchison China acquired a 50% stake in the Great Wall Sheraton, Beijing at an attractive price. Building on this success, Hutchison China has helped Hutchison's Harbour Plaza Hotel to build up a chain in China.

Beijing Tourism Development Company Limited ("BTDC") is a joint venture established between Beijing Enterprises Holdings Limited, Beijing Tourism Group and Hutchison Whampoa (China) Limited. The joint venture is principally engaged in the development of tourism business in China. In view of the tremendous development opportunities brought about by China's emerging economy and 2008 Beijing Olympic Games, BTDC will continue to explore new tourism investment projects in China and capture the growing business of Chinese tourists going abroad.

Assets include operation right of Beijing Badaling Great Wall and Beijing Long Qing Xia scenic area, Beijing Great Wall Sheraton Hotel, Beijing Jian Guo Hotel and Holiday Inn in San Francisco.

Hutchison China helped Pirelli dominate the China market for radial tyre technology. Today, 60% of all of China's radial tyre manufacturing plants use technology, plant and equipment provided by Pirelli.

Copyright (c) 2001. Hutchison China. All rights reserved.Disclaimer

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