1. Project General

　 1.1 Project No.: 068

　 1.2 Project Contact Unit: General Economic Development Company, Nanning Overseas Chinese Investment Zone of

　 1.3 Negotiating Representative: Zhu Zhaomin

　　 Tel: ＋ 86-771-6304591,6301258

　　 Fax: +86-771-6301258

　　 E-mail: investsb@263.net

　　 Add: Overseas Chinese Investment Zone of Naning, Guangxi 530105

　 1.4 Project Site: Overseas Chinese Investment Zone, Nanning

　 1.5 Total Investment: USD 6.04 million

　 1.6 Anticipated Economic benefits:

　　 After attaining the required output, the project will have an annual net profit average of RMB 16.08 million yuan, financial internal rate of return on full investment after income tax of 34.1%, and investment recovery period of 3 years (construction period exclusive).

　 1.7 Pattern of Cooperation: joint venture or exclusive capital.

　 1.8 Progress of Project Preparation

　　 The compilation of project proposal has been finished, invitation for investment has been given out and efforts have been made seek investors and partners.

2. Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity

　　 It is intended to construct a workshop of 2,400 m2 and a cold storage (freezer room) of 2,000 m2, to purchase a production line for fruit juice processing and other supporting facilities and equipments. The annual output of concentrated pineapple juice is 6,250 tons.

　 2.2 Capital Compositions: Seeking investors by means of attracting foreign or domestic capital to implement the project.

3. Brief Introduction of the Project Contact Unit

　 The General Economic Development Company of Nanning Overseas Chinese Investment Zone, situated in Nanning Overseas Chinese Investment Zone, Guangxi, with a registered capital of RMB 102 million yuan, is engaged in economic and technological development and project cooperation, and has the right of foreign trade. The General Company, relying on agriculture and backed up by industry, devotes itself to all-round development in trade, industry and agriculture. In agriculture, the company is mainly planting sugar cane and at the same time developing fruit, tea, forestry, animal husbandry and aquatic breeding. In industrial production, they have expanded their business from agricultural and side-line products such as cane sugar, starch, tin, tea to light industrial products such as garment, pharmaceuticals, steel products, electronics, appliances, mechanical equipment, feed, women’s health-ware series, and SAP super absorbent material.

　 The site of this project is located in Nanning Overseas Chinese Investment Zone, a provincial level economic development zone established in 1990 by the approval of the People ’ s Government of Guangxi Zhuang Autonomous Region . It is situated in the north suburb of Nanning city with a district of 179 square kilometers under its jurisdiction with a population of 35 thousand people. The Administrative Committee is the representative agent of Nanning Municipal People’s Government, thus exercising the right of administration, economy and social management at municipal level. It has established Class I financial system and implement the close management for Special Zone , enjoying the policies stipulated for national level economic development zone.

4. Project Market Analyses

　 Following the successive development of the world economy, people are showing great concern for their health. This is causing the expansion of pure fruit juice in the drink market. Developed nations are still the main consumers of juice drink. Apart from the traditional nations pure juice drink importers such as America, Germany, Austria and Canada, etc., demand in new importers such as Japan and South Korea is on the increase. On the other hand, domestic juice market shows an expansion rate above 50%, having become one of the fast growing markets in the world. Among the juice markets, tropical special juice such as pineapple juice can satisfy the demands of different consumers, thus having great space for its own development. So the market for pineapple juice has a very bright future.

5. Supporting Facilities for the Project

　 The conditions of traffic, communication, water supply and power supply are ready.

6. Project Competitive Advantages

　 This project can enjoy the preferential policies of tax exemption for two years and tax reduction for three years and at the same time be exempted from local income tax.

　 The main raw material for this project is the subtropical fruit such as pineapple. Guangxi is a main original land of subtropical fruits over the full country and teems with pineapple, mango, longan, etc. At present, the annual output of pineapple in Guangxi reaches 78 thousand tons, which mainly concentrates in Nanning city. The Zone has a land of 10 thousand hectares for long-term planting of pineapple with average annual price of 0.7 - 1.0 Yuan/Kg. Part of the land may be turned into the raw material base for this project. And coal required by this project can still be purchased from the neighboring province of Guizhou, in addition to that within Guangxi.