1 Project General

　 1.1 Project No.: 105

　 1.2 Project Contact Unit: Guangxi Kekang Biological Science and Technology Co., Ltd.

　 1.3 Negotiating Representative: Zhou Weihai

　　 Tel.: +86-771-5866438

　　 Fax: +86-771-5874918

　　 E-mail:zhouweihai@126.com

　　 Contact Add: 20th Floor, Tai An Building , No. 38-2 Minzu Avenue, Nanning, Guangxi 530022

　 1.4 Project Site: Scientific Industrial Park of Nanning High-tech Zone

　 1.5 Total Investment: USD 7 million

　 1.6 Anticipated Economic Benefits

　　 The annual sales income for the normal years is 160 million yuan, with 21.2 million yuan as the sales tax and add-ons , 58.76 million yuan as total annual profit and 76% as the internal rate of return.

　 1.7 Pattern of Cooperation: Investment for the increase of stock and a total sum of21.00million yuan is to be raised from the investors.

　 1.8 Progress of Project Preparation

　　 The economy Commission of Guangxi Zhuang Autonomous Region has given approval to establish “ Guangxi Kekang Biological Stock Co., Ltd. ” on the basis of “ Nanning Kekang Biological Science and technology Co., Ltd. ” .

2 Project Scope, Capacity and Capital Compositions

　 2.1 Project Scope and Capacity

　　 100 mu of land will be acquired for the project for the construction of new workshops and production line. The annual production output of natural hirudin is 200 million IU , 200000 cases of hirudin cosmetics and 6 million bags of hirudin healthcare instant water soluble granulae.

　 2.2 Capital Compositions of the Project

　　 The total budgetary estimate of the project is RMB 58 million yuan, of which RMB 15 million yuan goes to civil work project, RMB 15 million yuan goes to purchase and erection of equipment, RMB 8 million yuan goes to the GMP production workshop, RMB 10 million yuan goes to land acquisition and 10 million yuan as working capital.

3 Brief Introduction of the Project Contact Unit

　 This company is the only high-tech enterprise in China that is engaged in the breeding of humble leech and the study, production and sale of its products, natural hirudin. The research achievement by the company, the Multiple Extraction of Natural Hirudin from Guangxi Live Humble Leech , won the highest free aid from the Innovation Fund by the National Ministry of Science and Technology for the small and medium-sized scientific enterprises. Meanwhile the company has in its own possession two patents for its own intellectual property right.

4 Project Market Analyses

　 Hirudin is a low molecule polypeptide composed of 65 amino acid. It is the strongest natural substance so far ever discovered in the world for anti-thrombin. It is a kind of miracle drug for mankind to prevent the diseases with the blood vessels of the heart and brain. Therefore it has a bright prospect of development in the fields of pharmacy, cosmetics and healthcare food, etc.

5 Supporting Facilities for the Project

　 The project site is located in the Industrial Park of Science and Technology of Nanning High-tech Zone where there complete facilities are available such as communications facilities, water and power supply facilities and traffic, etc. The raw material for the project is the medical animal material of Guangxi characteristic—humble leech, or commonly called Phnom Penh leech. Phnmom Penh Leech is widely found in Guangxi with abundant resources. Meanwhile it is also possible to get the raw materials from other provinces such as Guangdong and Hainan and other countries such as Vietnam, etc.

6 Project Competitive Advantages

　 This project is entitled to the preferential policies of the Innovation Fund specially preferential to the western region and related preferential policies regarding new and high technology.

　 The company has in its own possession two special technologies with intellectual property right and has worked out the first enterprise quality standard for natural hirudin product and has been registered with Guangxi Quality Technical Supervision Bureau. The company has also taken the lead in developing a series of cosmetics of natural hirudin with unique and marked effect of beautification and are well received by consumers.