¢ñ. Project Name: Industrialization of Hirudin Extracted from Hirudinaria Manillensis
  ¢ò. Industrial Category£ºHigh-tech
  ¢ó. Type of Construction: New Construction Project
  ¢ô. Construction Period£º2 years
  ¢õ. Construction Scope and Scale
  The project takes up a land area of 80 mu for the construction of workshops with a total area of 12,000 ©O and a high-tech industrialization demonstration production line for annually producing natural hirudin of 400 million international units (AT-U).
  ¢ö. Project Site: Industrial Park in Nanning New and Hi-Tech Industrial Development Zone
  ¢÷. Construction Conditions£º
  ¢¡. About supporting facilities of traffic and transportation, and water, power and gas supply
  Nanning High-Tech Zone has already built a number of office buildings, standard industrial buildings and residential houses which have been in use. Here there are convenient traffic and transportation and communications facilities, and complete infrastructure facilities in drainage, water supply, power supply, and gas supply which can completely satisfy the requirement of the project.
  ¢¢. About raw materials and supporting facilities
  Guangxi is located in a low latitude area that enjoys the subtropical monsoon climate. There is plenty of sunlight and rainfall. Summer is long and winter short. Heat and rain share the same seasons. The natural conditions are very suitable for the cold-blooded poikilothermal animal--hirudinaria manillensis to grow and propagate. The company has first overcome the key technical problems of artificially breeding hirudinarian manillensis concerning low reproduction rate and high death rate, and long growth cycle and difficulty of living through winter. They have now concluded a set of artificial breeding technique, at the same time got down to the operating mode of company + base + farmer¡¯s household. That fully guarantees the supply of the living object of hirudinaria manillensis.
  Auxiliary materials mainly include swap fillings of anion and cation, gel fillings, ultra-filtration membrane and thrombin and so on. They can all be purchased in the domestic market. That guarantees the supply of auxiliary materials.
  The core technologies of the project ¡ªrepetitious extraction technology of hirudin from the living object of hirudinaria manillensis, technology of artificially breeding hirudinaria manillensis and renovated technology of hirudin products series, have been developed technologies with the company¡¯s exclusive and independent intellectual property right, first of its kind at home. Applications for the following technologies have been submitted for the national patents for invention: the breeding method of hirudinaria manillensis and the extraction technique of hirudin (paten number: 031135668); hirudin extract cosmetics and its preparation method (paten number: 03140487.1). Generally speaking, the project has a mature technology and has begun mass production of the products.
  ¢ø. Total Investment and Capital Composition: The total investment is 38.60 million Yuan, of which, the fixed assets investment accounts for 30.00 million Yuan and startup working capital for 8.60 million Yuan.
  ¢ù. Capital Source£ºEquity capital 13.00 million Yuan and introduced capital or bank loan 25.60 million Yuan.
  ¢ú. Pattern of Cooperation: Joint venture, cooperation, foreign governmental loan, increase of capital investment or transfer of share ownership, etc.
  ¢û. Analysis on Market and Anticipated Economic Benefits:
  ¢¡. Analysis on Market
  Natural hirudin is extracted from the salivary gland and saliva of Hirudinaria manillensis. It is a kind of single strand low molecular polypeptide containing 65 ¡« 66 amino acid, universally known as the strongest natural anti-thrombin matter in the known matters in the world so far as well as the best drug for treatment of cardiovascular and cerebrovascular diseases. Statistics form the WHO show that about 17.00 million people die of cardiovascular and cerebrovascular diseases and the diseases, together with high blood pressure, have become the No. one killer in China. In 2003, drugs sales amount totaled $ 492 billion in the world (the sales amount concerning drugs for treatment of cardiovascular and cerebrovascular diseases was about US$ 45 billion, making up 12%), increasing by 9% over 2002. North America, Europe and Japan accounted for 4/5, becoming the main consuming area.
  At present, foreign recomposed hirudin drug, which has been developed by way of gene engineering technology, has come into the market. Although recomposed hirudin is very similar to natural hirudin in the amino acid series and in the structure, 63-digit tyrosine residue has not been sulfated, making the inhibiting constant of recomposed hirudin against thrombin 90% less than natural hirudin. With another side effect of easily causing hemorrhage, recomposed hirudin is far beyond the natural one. Still with other defects such as short biological half-life period, high cost for treatment, it is difficult to promote the recomposed hirudin in clinic. Nonetheless, because of huge demand in the cardiovascular and cerebrovascular diseases market, recomposed hirudin products are still widely needed in the international market: Refludan of HMR Germany was permitted to go into the European market first in 1997. In 1998 and 1999, Refludan hit a big sale of US$ 9.00 million and US$ 14.00 million respectively in the worldwide market with an annual growth of 43%. According to the anticipation of HMR Germany, the potential sales amount for Refludan may reach US$ 235 million.
  Although there are 4 industrial units engaging in the research of recomposed hirudin, there is no product appearing in the market so far.
  Natural hirudin has an obvious advantage on the anticoagulation drugs for it has the double functions of anticoagulation and anti-thrombus simultaneously. And what¡¯s more, it seldom causes hemorrhage. So far, there is a tendency that the worldwide anti-thrombus drugs market is growing at a rate of 37%, for example, from US$ 6.7 billion in 1998 to 9.3 billion in 2003. In 2002, the sales amount totaled RMB 1 billion Yuan in China, growing at a rate of 20%.
  Natural hirudin is also widely used in cosmetics and healthcare foods. Domestic market of cosmetics has grown gradually in recent years. The sales amount hit RMB 60 billion Yuan for 2003, increasing at an average rate of 15% annually. Experts have made a prediction that the sales amount of cosmetics in China will reach 100 billion Yuan by the year 2010. With the improvement of people¡¯s living standard, requirement for the quality of cosmetics become higher and higher, making it gradually become the mainstream of market the cosmetics that contain natural elements. Healthcare industry is a worldwide sun-rise industry, and the market develops very fast. While in 1984 domestic consuming amount for healthcare products was only 2.0 billion Yuan, in 1990 it hit 10.0 billion Yuan. While in 1994 it was only 30.0 billion Yuan, in 1999 it hit 45.0 billion Yuan. By 2003, it hit a breakthrough of 50.0 billion Yuan, finishing up 52.0 billion Yuan. That turns out to become a new growth of China¡¯s industry in the new century.
  ¢¢. Anticipated Economic Benefits
  It is anticipated that after the project reaching the production capacity, the annual sales revenue will be 422.80 million Yuan, tax and profit 107.94 million Yuan, rate of return and tax on investment 69.15%, the internal rate of return 76.51%, the investment recovery period 3.56 years, and break-even point 33.82%.
  ¢ü. Progress of Preparation Work£ºThe Project Proposal and the Feasibility Study Report have been completed.
  XIII. Project Competitive Advantages
  ¢¡. Applicable preferential policies
  Newly established enterprises shall be exempted from enterprise income tax for the first five years and collected half as much as the rate of 15% for the following three years, from and on the date of normal operation or production, after being confirmed by Guangxi technological authority.
  Those enterprises that have signed the letter of responsibility for economic target with the Administrative Committee of the High-Tech Zone may be awarded some financial premium with the approval of the Administrative Committee according to the taxation of the enterprise.ª¥
  After the Administrative Committee¡¯s approval, those high tech investment projects characterized by large-scale and long construction cycle may be given a support through the development funds for small and medium-sized enterprises or venture investment funds.
  Those productive projects entering the Zone may enjoy exemption or reduction of fees for assignment of land use right and exemption of all administrative charges according to the scale and scientific and technological content of the projects.
  ¢¢. Other advantages
  Exclusive in Market: The project product ¡ªnatural hirudin, mass produced and sold exclusively by the company, has an exclusive position in the domestic market.
  Advanced in Technology: There are two national patents for the project. Meanwhile, it has won the supports from the Innovation Funds of the Ministry of Science and Technology and the Transformation Funds of Agricultural Technological Results. It has acquired four research items listed by Guangxi Department of Science and Technological. In addition, it has achieved two items of provincial technological results. All theses technologies are in the leading positions in China. For example, the core technology of repetitious extraction of natural hirudin from the living object of Hirudinaria manillensis has thoroughly solved the key pending problem of low rate in the extraction and complicated in technology. It has simplified the process procedure, making the cost drop and the mass production of natural hirudin possible.
  Unique in Products: Natural hirudin is the strongest natural anti-thrombin matter of the known substances in the world. And it has a better curative effect on cardiovascular and cerebrovascular diseases, especially on cerebral thrombosis, etc. At the same time, it is also used in cosmetics and healthcare products. So it has a huge development potential and a bright market prospect.
  Advantageous in Resources: The raw material Hirudinaria manillensis is a kind of cold-blooded poikilothermal animal. Its growth and reproduction are strictly constrained by the environmental temperature. The climate in Guangxi is very suitable for the mass breeding of this animal. With the support of the company¡¯s exclusive technology, the project holds the advantage in resources.
  Advantageous in Cost: By making full use of existing high biotechnology and plenty of resources, we can reduce the cost of production. In other words, the project has apparent advantages in cost.
  XIV. Project Owner
  Nanning Kekang Biotechnology Co., Ltd., established in 2001, with RMB 20.00 million Yuan as registered capital, is a sole high-biotech enterprise specializing in the research and development, production, sale and service of natural hirudin. Main business: medical animal artificial-breeding technology and its promotion, R & D of bio- or chemo-products, cosmetics, healthcare products, natural hirudin, and leeches. So far the productivity of natural hirudin has reached 50.00 million AT-U annually.
  Now the company has 52 employees, including 46 people from polytechnic schools or colleges.
  In 2004, the business income of the company was 3.10 million Yuan.
  Having developed for many years, the company has established its distribution networks covering north China, east China, the central and south China, south China and the southwest regions of China, with complete sales network all over China. Now they have their business spread out overseas, making service platforms in Southeast Asia, Europe and U.S.A.
  XV. Contact
  Contact Person: Zhou Weihai
  Address: 18 F, Tai¡¯an Building, No. 38-2, Minzu Ave. Nanning, Guangxi.
  Zip Code: 530022
  Telephone: 0771-5858163 13768635858
  Fax: 86-771-5874828
  E-mail: zhouweihai@126.com
  Website: http://www.kekang.cn