1 、 Project Brief

　 1.1 Project No: 069

　 1.2 Project Contact Unit: Agriculture Bureau of Wuming County

　 1.3 Negotiating Representative: Pan Yugao

　　 Tel: +86-771-6222492

　　 Add: County Seat of Wuming County

　 1.4 Project Sit: Within the Boundary of Nanning Mingchang Special Fertilizer Co. Ltd

　 1.5 Total Investment ： USD 7.3 million

　 1.6 Anticipated Economic Benefits

　　 The annual gross sales: RMB 123.50 million yuan with the annual tax of RMB 10.06 million yuan and annual profit of RMB 12.03 million yuan. The investment recovery period will be 4.2 years

　 1.7 Pattern of Cooperation: Joint Venture or Cooperative Operation

　 1.8 Progress of Project Preparation: Project Proposal has been completed.

2 、 Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity

　　 The project will occupy an area of 55 mu (1 mu=1/15 ha), on which a subtropical fruit juice processing line with the annual capacity of 10,000 tons will be built. The Project items include newly built workshop covering1300m2, warehouse covering 1200m2 and in-plant roads construction and equipment procurement and installation.

　 2.2 Capital Compositions

　　 Investment in fixed assets:RMB 10.50 million yuan; working capital:RMB 20.00 million yuan. Fund sources: Owner self-raising funds, loan and investment invited.

3 、 Project Market Analyses

　 Along with the improvement of the people ’ s living standard, the natural fruit juices have gradually become one of the main drink varieties consumed by the people. The products developed by the proposed Project will be characterized with typical subtropical fruit features. The proposed Project will make full use of the local resource advantages to produce more preferred products to satisfy the taste of the local people. Therefore, the products will have a potential market future.

4 、 Supporting Facilities for the Project

　 4.1 The Conditions of Transportation, Telecommunication, Water & Power Supply

　　 The proposed Project site is immediately next to the class I highway providing a convenient transportation condition. The existing telecommunication, water & power supply facilities will be able to meet the productive and domestic demands after being had their capacity expanded.

　 4.2 Raw Material Supply

　　 Wuming is located in the subtropical monsoon zone of South Asia. The weather condition is suitable for growing subtropical fruit. As the fruit production county in Guangxi, Wuming has established the subtropical fruit production bases covering the total area of 220 thousand mu (1 mu=1/15 ha), which will be able to ensure the full supply of the raw material

5 、 Project Competitive Advantages

　 5.1 Applicable Preferential Policies

　　 The Project is entitled to the various preferential policies implemented in Nanning Yiling Cave Techo-economic Development Park. The Project can further apply for the status as the flagship enterprise for the agricultural industrialization course in Guangxi, enabling it to be entitled to more preferential taxation policies.

　 5.2 Other Advantages of the Project

　　 Sufficient raw material supply; advantageous geological location; advanced and reliable processing technologies.