1 、 Project General

　 1.1 Project No: 070

　 1.2 Project Contact Unit: Nannng Yiling Cave Economic and Technological Development Park

　 1.3 Negotiating Representative: Xie Guoyou

　　 Tel: +86-771-6222566

　　 Add: Dingluo Road, Wuming County Seat

　 1.4 Project site: Huanghou (Empress) Industrial Development Park of Nanning Yiling Cave Economic and Technological Development Park

　 1.5 Total Investment: USD 50.72 million

　 1.6 Anticipated Economic Benefits: Annual sales volume: RMB 692.05 million yuan with the annual average after tax profit of RMB 65.00 million yuan. The investment recovery period will be 6.2 years.

　 1.7 Pattern of Cooperation: Sole investment

　 1.8 Progress of Cooperation: Project proposal has been completed.

2 、 Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity

　　 Project Capacity: A annual capacity to produce industrial ethyl acetate 445,000 tons; perfume ethyl acetate 5,000 tons; acetic anhydride 10,000 tons; edible glacial acetic acid 3,000 tons; drinkable alcohol 25,000 tons; liquid carbon dioxide and dry ice 50,000 tons; complete feed 60,000 tons and special fertilizer (for cassava) 60,000 tons.

　　 Project Scope: Covering a total site area of 22.5 ha, the building floor area is 64,682m2, of which the floorage for production buildings is 32,175m2. The procurement of and installation of alcohol brewing facilities, alcohol deepened processing facilities, carbon dioxide products, protein feed and fertilizer production facilities.

　 2.2 Capital Compositions: Investment in fixed assets:RMB 355.00 million yuan; working capital: RMB65 million yuan.

3 、 Project Market Analyses

　 The products of the proposed Project: ethyl acetate, acetic anhydride, edible glacial acetic acid, drinkable alcohol, liquid carbon dioxide and dry ice etc are the materials widely used in chemical, pharmaceutical, food industries in high demand in terms of usages and quantities. And the products have been long insufficiently supplied in both international and domestic markets. The by-products: complete feed and fertilizer will be mainly supplied to the domestic market and also on high demand along with the progress of agriculture and animal husbandry industrialization. The market future will be bullish.

4 、 Supporting Facilities for the Project

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

　　 The proposed Project site is about 5km away from Nanning. Through the existing Shui-Nan Expressway, it can easily reach Nanning, Qinzhou and Fangchenggang. The proposed Project is about 1km away from Huanghou (Empress) substation with the capacity of 220KV (under construction), the power supply from which will be sufficient. Wuming He River is the water supply source for the Project. The Project area is served by program-controlled tels and mobiles.

　 4.2 Raw Material Supply

　　 Wuming County teems in cassava. The cassava planting area is 250 thousand mu with the fresh cassava yield of 500 thousand tons (or dried cassava 200 thousand tons). The peripheral counties are also abundant in cassava with the production output of more than 1 million tons. It can, therefore, secure the supply of the raw materials.

5 、 Project Competitive Advantages

　 5.1 Applicable Preferential Policies: The Project is entitled to various preferential policies for Western Development Strategy and the preferential policies implemented in Yiling Cave Economic and Technological Development Park.

　 5.2 Other Advantages of the Project

　　 Wuming County is the biggest cassava production base. The Raw material can be obtained from the proximity, so as to save cost.