PROJECT

TITLE

Project of Construction of Standard Plant with

a Total Building Area of 100,000 sq.m. in

Qingyuan Industry Zone

PROJECT

TYPE

Industry

LOCATION

OF PROJECT

Qingyuan Industry Zone

Organizer Name:

Administrative Committee of

Qingyuan Industry Zone

Investment Planning and

OWNERSHIP

Forms of Investment

A joint venture

B cooperation

C exclusive investment

D other forms

             C

Total Investment

50 M RMB

Registered Capital

 10 M RMB

Cost Distribution of local sponsor

Of which:

funds:        fixed assets：    other:

Cost Distribution of investor

50 M RMB

Of which:

funds:10 M RMB    technical Expertise:  equipment:

Loan and others:

Investor could apply to the banker for a loan by mortgaging the land and built up plant.

Installment investment

Investment according to needs during 2 years

Proposed Ownership Structure:

local sponsor：    %     investor： 100 %       others：  %

PROJECT

DESCRIPTION

As the provincial-level development zone, Zhejiang Qingyuan Industry Zone situated in the First Ecology County in China—Qingyuan County of Zhejiang Province. It is endowed with rich natural resources of bamboo, tree and edible fungus. The planned area of the zone is 10 km², the existing infrastructure of tap water, sewer, electric power, road, post, telecommunication and the smooth land could fully meet the requirement of plant. 1,000 mu well-facilities land stock could meet the needs of comprehensive development. Investment with project or standard plant renting depends on investors.

market

prospect

analysis(sal-es income,

investment foundation)

Local standard plant renting price is around 80 RMB yuan per qu.m per year.

The whole will be recovered in 5-7 years (set aside the land value increasing).

Profit-

making

Models

ROI:  25 %

rate of return: plant rent and land appreciation

Foreseen construction period:   1  year

Pay back Period:         5-7  years

Estimated

PROFIT

The rent for the whole plant would be 6 M RMB.

RISK & PREC－AUTIONARY PRINCIPLE

Local small size enterprises are separated from getting the land because of the requirement for the investment scale and shortage of land. Stage construction and renting are allowed.

INVESTMENT POLICY

Land planning

Has been approved as constructive land.

Policy of land utilization

The land will be sold at 50,000 RMB per mu and foreign exchange will be gained a preferential benefit off 10%. Financial department gives 100,000 RMB each mu for the mortgage credit.

Other preferential policy

1) The local part of value-added tax and income tax will be rewarded for 3 consecutive years from the year of production. 2) The average fee for electricity is 0.58 RMB yuan/KWH .

Enterprises with annual electricity consumption over 5,000KWH get favourable rate after approved by the way of cost accounting.

Contact

Person

Shen Quanxin   Chen Wenhua

ADD

Administrative Committee of

Qingyuan Industry Zone

TEL

0578－6129895

E-MAIL

qycwh@163.com

FAX

0578－6122868

P.C.

323300