Ⅰ. Project Name: Chinese Herbal Medicine Plantation
  Ⅱ. Industrial Category: Agriculture
  Ⅲ. Type of Construction: New Construction Project
  Ⅳ. Construction Period:
  Ⅴ. Construction Scope and Scale
  A land plot covering an area of 10,000mu is needed to establish the seedling nursery, plantation, warehouse, laboratory and the administrative station, as well as the semi-finished products processing plant.
  Ⅵ. Project Site: Nanning Economic and Technological Development Zone
  Ⅶ. Construction Conditions
  ⅰ. Traffic, telecommunication and water and power supply
  Traffic: Inside the Nanning Economic and Technological Development Zone, the construction of the radialized traffic network that is structured by the broad and straight roads has been completed and connected to the urban roads. The Development Zone is 4km away from the center of Nanning. The Nanning – Baihai Class II Highway is passing by right outside the Development Zone’s gate. The distances from the Development Zone to Beihai and Fangcheng Ports are about 200km. The Yongjing River is about 2km away from the Development Zone. Navigating on the Yongjiang Waterway, you can travel up to Baise and down to Guangzhou, Macao, and Hong Kong. And, in a distance of some 5km, you can reach Shajing Station of Xiang – Gui Railway. All these have provided the Project site with convenient traffic conditions.
  Telecommunication: The branch office of Nanning Telecom has been put into operation and is provided with a telephone programmable exchange with 10,000 ports.
  Gas: The pipeline has reached the boundary of the Development Zone and the gas will be supplied by Nanning Natural Gas Co., Ltd.
  Water Supply: The Yongjiang River is the water source for Nanning Economic and Technological Development Zone and the water is supplied by Henan Water Works. The design capacity of the Water Works of the Development Zone is 20,000tons/day. With the main pipeline diameter of 500mm, the water pressure is 3kg. The Water Works has now a capacity surplus of 17,500tons/day.
  Power Supply: The power supply capacity of the substation inside the Development Zone is 30,000kvA and now, the supply capacity surplus is 10,000kvA. The authority of the Development Zone will be responsible for delivering the power to the plot boundary of the Project as per the charge standard practiced by the Power Supply Bureau. The procurement and installation of the equipment of the substation inside the Development Zone will be consigned by the Project Owner himself.
  ⅱ. Raw and Processed Materials
  With the stable and sufficient supply, most of the raw and processied materials can be procured within Guangxi region.
  Ⅷ. Total Investment and Capital Composition: RMB 7,700million
  Ⅸ. Capital Source
  Ⅹ. Pattern of Cooperation: Sole investment, joint venture and/or cooperation
  Ⅺ. Analysis on Market and Anticipated Economic Benefits
  ⅰ. Analysis on Market
  Guangxi is one of the main producing areas of Chinese herbal medicines and is provided with extremely rich Chinese herbal medicine resources. With 4,623 varieties, Guangxi takes the second place in the country in terms of Chinese herbal medicine varieties. At present, however, the roles of many enterprises processing the Chinese herbal medicines have not yet been brought into play and a great number of the Chinese herbal medicine resources have not yet been effectively developed and utilized. For a long time, the Chinese herbal medicine materials have been the traditional export items for the country. In recent years, the demand for the Chinese herbal medicines is growing continuously. The high quality and standardized Chinese herbal medicine materials produced in south China and Guangdong Province and Guangxi Region have a promising market prospect. Liangfengjiang National Forest Park is located inside the Development Zone. For years, it has implemented the strict eco-environment-friendly policies inside the Park. Therefore, the Park is suitable especially for the production of high quality and pollution-free Chinese herbal medicines and can serve as the demonstration zone for Chinese herbal medicine production and core area of standardized base construction for producing south China and Guangdong and Guangxi’s Chinese herbal medicines, as no major damage has occurred to the environment and the Park is free from industrial and domestic pollutions. Based on the advantages of the local Chinese medical varieties and the natural conditions, it has been decided for the Project to plant a number of herb varieties, most of which are the major raw materials for the Chinese medical materials short in supply on the market, especially, the Chinese herbal medicines growing in south China, Guangdong and Guangxi. With a huge market potential, the products can be supplied to both domestic and international markets and a part of them can substitute the imported ones.
  ⅱ. Anticipated Economic Benefits
  Annual output value: RMB 34 million; Annual Profit+Tax: RMB 2.3 million; Recovery Period for Investment: 5 years.
  Ⅻ. Progress of Preparation Work: The Planning Design and the Project Proposal have been completed.
  XIII. Project Competitive Advantages
  ⅰ. The Project is categorized as those encouraged by the state and can benefit from the following preferential policies:
  (ⅰ) The enterprise income tax will be levied as per the rate of 15%.
  (ⅱ) The enterprise income tax can be exempted for the first two years and halved for the following three years as counted from the date when the Project is put into operation.
  (ⅲ) It can apply for the loan interest subsidy during the construction period.
  (ⅳ) Zero Fee Charging Policy is implemented inside the Development Zone for the industrial projects, i.e. in addition to those colleted by the provincial and national governments according to the law, other charges will be either exempted or reduced.
  ⅱ. Other Advantages
  Guangxi is rich in Chinese herbal medicine resources. Tshe source of the seedlings are wide and Guangxi also enjoys excellent climate conditions. In addition, Guangxi is in possession of a lot of talents mastering the Chinese herbal medicine planting skills and technologies. Traditional methods will be adopted together with the modern engineering theories to extract the ingredients so as to ensure the therapeutic effectiveness.
  XIV. Project Owner
  Nanning Economic and Technological Development Zone was set up in 1992 and is the only state-level Development Zone approved by the state Council in Guangxi. It is located in the south of Nanning Municipality and on the way from Nanning to the costal and boundary seaports and cities of Beihai, Qinzhou, Fangchenggang and Pingxiang. It is 5km away from the center of Nanning. Up to now, the progressive investment in the fixed assets in real terms has almost reached USD 5billion, of which, some USD 1.2billion have been injected into the infrastructure construction. The progressively utilized foreign funds in real terms were USD 200million. By now, the investors from the countries and the regions such as Japan, Singapore, Korea, Taiwan and Hong Kong have been running their businesses and purchased properties inside the Development Zone in the fields of electronic industry, fine chemical industry, auto parts industry, papermaking industry, pharmaceutical industry, medical instrument industry, foodstuff industry, agro-product processing industry, construction industry and real estate development industry.
  XV.Contact
  Contact Person: Mo Jiajia
  Address: 230 Jiangnan Lu, Nanning, Guangxi, P. R. China
  Zip Code: 530031
  Tel: 86-771-4518881, 4518882, 4518883
  Fax: 86-771-4517365
  E-mail： nnda@nnda.gov.cn