¢ñ. Project Name: Production Expansion of High Frequency and High Voltage Generators for X-ray Units
¢ò. Industrial Category: High-tech
¢ó. Type of Construction: New Construction Project and Expansion Project
¢ô. Construction Period £º2 years
¢õ. Construction Scope and Scale
¢¡. Capital construction scale: 56,888.24©O£¬where:
i) workshop 10,964 ©O£»
ii) Warehouse 7,456 ©O£»
iii) Production auxiliaries (water and power supply, gas supply, overhaul shop and garage, etc.) 922 ©O£»
iv) Auxiliary facilities (testing, preventive chamber, office and rooms for living) 1,260 ©O£»
v) roads for factory zone occupies 18,204©O, accounting for 32%;
vi) Greenbelt 19,341©O, accounting for 34%.
¢¢. Main production lines including:
i) Circuit board production line;
ii) Circuit board debugging line;
iii) Parts assembling line;
iv) Debugging line for Parts;
v) High frequency and high voltage generator assembling line;
vi) High frequency and high voltage generator debugging line;
vii) High frequency and high voltage generator aging test line;
¢£. Auxiliary facilities:
i) Power supply: The total installed capacity is 914.82 kW, transformer: 1,125 kVA£¬workshop distribution 1,000 kVA£¬lighting :102.2 kVA. The power energy for workshop and low voltage source AC 380/220V, 50Hz for lighting can be supplied through the local floor distribution room, able to meet the need of the company. But four lines of supply cables need to be pulled from the transforming station to the local floor distribution.
ii) Water supply
Water supply project: water source comes from the water supply system of the industrial park. For outdoor use, the combined water system for production, fire fighting and living will be employed. For indoor living water supply, auto control booster pump will be used and independent fire water supply system and boiling water supply system will be set up.
Sewage drainage project: Indoor water discharge includes domestic sewage and cooling water, which are drained out into outdoor sewage pipeline after the treatment by the outdoor septic tank.
¢ö. Project Site: Industrial Park in Nanning New and Hi-Tech Industrial Development Zone
¢÷. Construction Conditions
The industrial park where the project is located has now had the basic conditions for the industrializing production needed by the project with complete supporting facilities. Here there is the 3¡Á31500 kVA supporting power supply project, the Chencun Water Works with a daily supply capacity of 600,000 tons and a 30,000-port program-controlled telephone exchange and wideband info-transmission project completed and put into use. The Management Committee of the High-tech Zone has given aproval and the High-Tech Zone Construction Development General Company has signed a contract to provide the project with the Floor 5 of the Standard Building No 2 in the Industrial Park and the Floor 2 of Standard Building in the Software Park for use. In the workshops, infrastructures are complete, meeting the needs of the project production.
High quality electronic elements and parts and materials can all be purchased in the domestic market. The processing of casings and chassis that meet the requirement of standard may be outsourced inside or outside Guangxi.
¢ø. Total Investment and Capital Composition
The total investment is 178.722 million Yuan, of which, fixed assets investment accounts for 76.155 million Yuan, (construction project: 22.2528 million Yuan; purchase and installation of equipments: 24.7038 million Yuan; process pipeline installation: 0.7304 million Yuan; others or acquisition of land: 24.7038 million Yuan; intangible assets and deferred assets: 5.60 million Yuan: contingency: 7.4259 million Yuan); current capital 102.567 million Yuan (inclusive of start-up working capital 34.189 million Yuan).
¢ù. Capital Source
Enterprise self-owing and self-raising funds: 84.0771 million Yuan, bank loan: 94.6449 million Yuan (including a bank loan sum of 67.8366 million Yuan and the state supporting capital sum of 26.8083 million Yuan)
¢ú. Pattern of Cooperation: Joint venture by increase of share
¢û. Analysis on Market and Anticipated Economic Benefits
¢¡. Analysis on Market
Status quo about foreign medical apparatus market: High-tech medical equipment industry is one of the most quickly developing industries, annually growing at a two-digit rate in the international market. With the improvement of people¡¯s living standard, the demand for healthcare products in countries worldwide is growing bigger and bigger. So far, the international high-tech medical apparatus market has been monopolized by a few developed countries such as U.S., Japan and German, and so has the domestic market. Even their second-hand or third-hand equipments are sold well.
Status quo about domestic medical apparatus market: According to relative statistics, there is an annual sales amount of 54.8 billion Yuan in medical apparatus market, where high-tech equipment accounts for about 10.0 billion Yuan, increasing at a rate of 14% annually. Some statistic data show there are 300 provincial level hospitals, 1,050 prefecture-level hospitals, 11,500 county-level hospitals, 47,390 township-level hospitals, and 332 institutes for medical research, apart from clinics and sanitariums that have not been taken into account. A spot check conducted by the State Pharmaceutical Administration on 102 hospitals at and above county level all over the country shows that each hospital possesses 6.3 sets of X-ray machines on the average and hospitals below county-level each has 2 sets and the total for the whole is or over 180,000 sets of X-ray machines. The service life of the machine generally is between 10-15 years. Plus newly built hospitals, in the cycle of production life, the market demand will be about 10.0 billion Yuan, while the present demand of major industries is about 3,000¡«5,000 sets.
Presently some well-known domestic manufacturers such as Beijing Wandong, Shanghai Pharmaceutical Machinery, Dongda Aerpai have to import the core technology and high frequency and high voltage generator hard wares for the high frequency X-ray from Varian Inc. of U.S. Siemens of Germany, and others from Spain and Philip of Holland, lacking self-developed technology for production.
¢¢. Anticipated Economic Benefits
i) Revenue: 479.03 million Yuan (calculated at present market price)
ii) Business cost: 308.69 million Yuan
iii) Tax: 34.251 million Yuan
iv) Comprehensive tax rate: 6.18%
v) Costs and expenses: 350.27 million Yuan
vi) Gross profits: 137.89 million Yuan
vii) Net profits: 117.20 million Yuan.
¢ü. Progress of Preparation Work
Compilation of the Project Proposal and the Feasibility Study Report began in Jan. 2005 and were finished in the end of April. At the same time they were reported to the Technology Division of the High-Tech Zone, Guangxi Commission of Development and Reform over the past four months in 2005. On 10th May, it will be reported to the State Commission of Development and Reform, at the same time to Guangxi Economic Commission for the record of project initiation.
XIII. Project Competitive Advantages
¢¡. Technological advantage
The project, successfully developed back in 1999, is the first item of high technology that has its own intellectual property right in China. This project of medical diagnosis X-ray machine of high frequency and high voltage generator has bridged the gap of domestic industry and is capable to substitute for the imported ones. Since 2000, the project has entered the stage of mass production with mature technological process the registration certificate given. The medical diagnosis high frequency X-ray machine configured with the generator passed the 3C certification in 2004 and the company management quality system passed the certification of ISO9001: 2000.
¢¢. Price advantage: The price of the product mentioned above is twice less than the foreign product of the same kind. Besides it is convenient for maintenance and easy for replacement of spare parts in time.
¢£. The project enjoys the preferential policy for the high-tech zone.
XIV. Project Owner
Guangxi Nanning Junlong Paharmaceutical Co., Ltd., established in 2000, was the predecessor of Giulin Jiqi Junlong Pharmaceutical Electronic Co., Ltd., with a registered capital of 20.00 million Yuan. Its main business scope includes medical apparatus and instruments, meters, medical X-ray high frequency and high voltage generator series, production and sale of X-ray machines, and modification of old or used X-ray machines. Presently there are a total of 114 staff members.
The gross assets is RMB 27.45 million Yuan, net assets 24.00 million Yuan, and gross liabilities 3.45 million Yuan. There is a block with an area of 5,000 square meters which houses production workshops, technological research labs and offices. In May 2001, the company completed the investment of 28.00 million Yuan in building a production line for annually producing 1,500 sets of medical diagnosis X-ray machine high frequency and high voltage generators, a facility in soft and hard wares integrated with development, design, production, detecting and testing, selling and after-sale service. And the company has become a larger-scale enterprise specializing in production and operation of full variety of medical diagnosis X-ray machine high frequency and high voltage generators and medical diagnosis high frequency X-ray machines, for which the company solely has the independent intellectual property right. The company has obtained permit from the State Drugs Administration for production and trial production.
In recent years, the products have been sold well over more than 30 provinces, hundreds of medical units, large, medium or small size. Sales revenue averages over 10.00 million Yuan each year.
XV. Contact
Contact Person: Chang Jianhe
Address: (2F Software Park) No. 4, KeYuandon Road 5, KeYuan Ave., Nanning, Guangxi.
Zip Code: 530003
Telephone: 0771-3218008, 0771-3218088
Fax: 86-771-3218098
E-mail:
jq3218038@126.com 
¡¡print