Presentation of Jiangxi Province

Sommaire

schemaI. An Introduction of Jiangxi Province. 4

I.1.  A survey of Jiangxi Province. 4

Geographic Location. 4

Area. 4

Climate. 5

Topography. 5

Mineral Resources 5

Forest Resources 5

Water Resources 5

Tourism.. 5

Administrative system: 6

I.2.  Investment Environment 6

Economy. 6

Market 6

Open-economy. 6

Agriculture. 7

Industry. 7

Tourism.. 7

Banking and Insurance. 7

Commerce and Circulation. 7

Science, Technology and Education. 8

Population and Environment 8

Logistics 8

Post and Telecommunications 9

Power Industry. 9

Nanchang National High-tech Industrial Development Zone. 10

Nanchang Economic and Technological Development Zone. 10

Jiujiang Export Processing Zone. 10

II.  Main Objectives of Economic and Social Development of Jiangxi from 2006 to 2010. 10

III. Investment Policy. 11

III.1. Industrial Policy. 11

III.2. Regional Policy. 12

III.3. Preferential Policies of Jiujiang Export Processing Zone. 12

IV.  Appel à la Coopération Internationale, Projets de Jiangxi 13

IV.1. DEVELOPMENT AND PRODUCTION OF NEW TYPE VEHICLES. 13

IV.2.  PRODUCTION OF 200,000 MINI ECONOMY CARS PROJECT. 13

IV.3.  GASOLINE ENGINES FOR MOTOR VEHICLES (Second Stage Project) 13

IV.4.  PRODUCTION OF 60,000 DIESEL ENGINES FOR MOTOR VEHICLES. 14

IV.5. PRODUCTION OF AUTOMOBILE PARTS. 14

IV.6.  PRODUCTION OF AUTOMOBILE SPARE PARTS. 14

IV.7. SUPPORTING PROJECT TO AIR-CONDITIONER PRODUCTION.. 15

IV.8.  ANNUAL PRODUCTION OF 1 MILLION FREQUENCY CONVERSION COMPRESSOR. 15

IV.9.  INFRARED OPTICAL LENS PROJECT. 15

IV.10.  PRODUCTION OF RARE EARTH PERMANENT MAGNETIC ELECTRONIC POWER SWITCHES  16

IV.11.    PRODUCTION AND SALES OF KEY PARTS FOR OPTICAL INSTRUMENTS. 16

IV.12.        EXPANSION OF PRODUCTION OF GRIPPER LOOMS. 16

IV.13.        ANNUAL PRODUCTION OF 3 MILLION TON THIN STEEL PLATE. 17

IV.14.        TECHNICAL INNOVATION OF PLUMBUM SMEITING.. 17

IV.15.        FUTHER PROCESSING OF TUNGSTEN IN GANZHOU CITY.. 18

IV.16.        FURTHER PROCESSING OF RARE EARTH IN GANZHOU CITY.. 18

IV.17.        CONSTRUCTION OF FLUORESCENT POWDER PRODUCTION BASE IN GANNAN.. 19

IV.18.        CONVERSION OF GANZHOU ALUMINUM FACTORY AND INNOVATION OF SERIES PRODUCTS  19

IV.19.        BASE CONSTRUCTION OF ANNUAL PRODUCTION OF 3,000 TONS OF SUPERFINE HARD ALLOY   19

IV.20.        ANNUAL PRODUCTION OF 3,000 TONS OF SINTERED NdFeB WITH HIGH PERFORMANCE MAGNET  20

IV.21.        THE PROJECT OF RARE EARTH LASTING MAGNETIC MATERIALS AND PERMANENT MAGNETOS  20

IV.22.        PRODUCTION OF TUNGSTEN  AND COPPER ELECTRONIC PACKAGING.. 21

IV.23.        NANOMETER CRYSTAL RARE EARTH HARD ALLOY TOOLS. 21

IV.24.        LITHIUM TANTALATE AND LITHIUM NIOBATE CRYSTAL SAW DEVICE. 22

IV.25.        ANNUAL PRODUCTION OF 500 TONS OF RARE EARTH LUMINESCENT MATERIALS  22

IV.26.        ANNUAL PRODUCTION OF 20,000 TONS OF RED COPPER REFRIGERATING PIPES. 22

IV.27.        ANNUAL PRODUCTION OF 25,000 TONS OF COPPER BELTS FOR VOLTAGE TRANSFORMERS  23

IV.28.        INNOVATION OF 20,000 TON WIRE MATERIAL PRODUCTION LINE IN BONENG INDUSTRIAL PARK   23

IV.29.        PRODUCTION LINE PROJECT OF ADENOSINETRIPHOSPHATASE (ATP) 24

IV.30.        PRODUCTION LINE OF CHNIESE MEDICINE TEA PIGMENT CAPSULES. 24

IV.31.        ANNUAL PRODUCTION OF 300 TONS OF L-GLUTAMINE. 24

IV.32.        CONSTRUCTION OF THE BASE OF COLLECTING AND SUPPLYING BLOOD PLASMA   25

IV.33.        LED EPITAXY AND ELECTRONIC CHIPS. 25

IV.34.        INDUSTRIALIZATION OF LCOS. 26

IV.35.        HIGH PRECISION MULTI-LAYER DOUBLE SIDE PRINTED CIRCUIT BOARD.. 26

IV.36.        ANNUAL PRODUCTION OF 1,000 TONS OF NdFeB PERMANENT MAGNET. 26

IV.37.        EXPANSION OF THE ANNUAL CAPACITY OF COPPER FOIL COATED LAMINATED BOARD TO 2 MILLION SQUARE METERS. 26

IV.38.        ANNUAL PRODUCTION OF 200,000 SATELLITE NAVIGATION POSITIONING RECEIVERS AND DEVELOPMENT OF IC CHIP ASSEMBLY.. 27

IV.39.        PRODUCTION LINE WITH THE ANNUAL CAPACITY OF 1.15 MILLION SETS OF ADSL MODEMS  27

IV.40.        ANNUAL PRODUCTION OF 100,000 SQUARE METERS OF ONE SIDE, MULTI-LAYER PCB ELECTRONIC CIRCUIT BOARD.. 28

IV.41.        FURTHER PROCESSING OF HONEY PRODUCTS. 28

IV.42.        TEA FURTHER PROCESSING AND SERIES FUNCTIONAL FOOD DEVELOPMENT. 28

IV.43.        FURTHER PROCESSING OF GARLICS ——(E, Z) AJOENE. 29

IV.44.        PRODUCTION LINE WITH ANNUAL CAPACITY OF 18,000 TONS CONCENTRATED KIWIFRUIT JUICE  29

IV.45.        ANNUAL PRODUCTION OF 4,000 TONS OF XIANBAO F6 ADDITIVE. 30

IV.46.        PROCESSING OF CONCENTRATED ORANGE JUICE. 30

IV.47.        FURTHER PROCESSING OF CHINESE BULBOUS ONION.. 30

IV.48.        DEVELOPMENT OF ESPECIAL IMMUNE MILK.. 31

IV.49.        LIVESTOCK AND FOWL BUTCHERING & DEEPFREEZE  PROJECT IN GANZHOU.. 31

IV.50.        ANNUAL PRODUCTION OF 12,000 TONS OF VEGETABLE JUICE, VEGETABLE POWDER PROCESSING   32

IV.51.        GANZHOU CITY VILLAUMITE CHEMISTRY INDUSTRY BASE. 32

IV.52.        ANNUAL PRODUCTION OF 6,000 TONS OF REVERSED PHASE EMULSION POLYACRYLAMIDE  33

IV.53.        ANNUAL PRODUCTION OF 12,000 TONS OF MELAMINE. 33

IV.54.        ANNUAL PRODUCTION OF 20,000 TONS OF N, N-DIMETHYLFORMAMIDE. 33

IV.55.        ANNUAL PRODUCTION OF 20,000 TONS OF METHANOL PROTEIN.. 34

IV.56.        FURTHER PROCESSED PRODUCTS OF ENVIRONMENT-FRIENDLY POLYVING ALCOHOL  34

IV.57.        PRODUCTION OF 10,000 TONS OF HYDRAZINE HYDRATE. 35

IV.58.        ANNUAL PRODUCTION OF 20,000 TONS OF A SPECIAL PHOSPHORUS. 35

IV.59.        ANNUAL PRODUCTION OF 75,000 TONS OF PHOSPHORIC ACID.. 35

IV.60.        ANNUAL PRODUCTION OF 10,000 TONS OF SILICON SULFIDE RUBBER. 36

IV.61.        ANNUAL PRODUCTION OF 600,000 TONS OF PTV.. 36

IV.62.        ETHENE ACETATE AND VAE EMULSION.. 36

IV.63.        DEVELOPMENT OF HALITUM RESOURCES IN ZHANGSHU CITY AND CHEMICAL SERIES PRODUCTS  37

IV.64.        PORCELAIN CLAY FURTHER PROCESSING LINE. 37

IV.65.        ANNUAL PRODUCTION OF 300,000 TONS OF SULPHURIC ACID AND 160,000 TONS OF COMPOUND FERTILIZER. 37

IV.66.        ANNUAL PRODUCTION OF 200,000 TONS OF DIFFERENTIAL POLYESTER FIBER. 38

IV.67.        PRODUCTION OF 180,000 TONS/YEAR OF POLYSTER FILAMENT YARN.. 38

IV.68.        PRODUCTION LINE WITH THE ANNUAL CAPACITY OF 5,000 TONS OF NONWOVEN FABRICS  38

IV.69.        ANNUAL PRODUCTION OF 5,000 TONS OF ACETATE FILAMENT YARN.. 39

IV.70.        ANNUAL PRODUCTION OF 2,000 TONS OF POLYURETHANE FIBER. 39

IV.71.        BAMBOO FIBER FABRICS PROJECT. 40

IV.72.        ANNUAL PRODUCTION OF 200,000 TONS OF LOW QUANTITATIVE COATED PAPER. 40

IV.73.        ANNUAL PRODUCTION OF 900,000 SETS OF HIGH CLASS PLATE TYPE FURNITURE  40

IV.74.        PORCELAIN SCIENCE AND TECHNOLOGY PARK.. 41

IV.75.        THIN WALL, HIGH PORE DENSITY IOLITE HONEYCOMB CERAMICS. 41

IV.76.        AUTOMOBILE PLAZA OF AUTOMOBILE COMMERCIAL CENTER AT HONGGUTAN.. 41

IV.77.        CONSTRUCTION OF JIANGXI GRAIN & FOOD MARKET. 42

IV.78.        CONSTRUCTION OF NANCHANG MANSION.. 42

IV.79.        CONSTRUCTION OF JIANGXI (NANCHANG) LOGISTICS CENTER. 43

IV.80.        INCREASING CAPITAL AND EXPANDING STOCK IN JIANGXI HONGDU STEEL FACTORY   43

IV.81.        RESTRUCTURING ON CABLE SUBSIDIARY OF JIANGXI LIANCHUANGPHOTOELECTRICITY TECHNOLOGY SHARE CO. LTD. 43

IV.82.        TRANSFERRING LAND OWNERSHIP OF JIANGXI JINGHUA ELECTRON CO.LTD.. 44

IV.83.        TRANSFERRING LAND OWNERSHIP OF JIANGXI HONGSENG ELECTRON CO.LTD.. 44

IV.84.        RESTRUCTURING ON JIANGXI PHARMACY LIABILITY CO. LTD. 45

IV.85.        RESTRUCTURING ON JIANGXI GUO YAO PHARMACEUTICAL LIMITED LIABILITY COMPANY   45

IV.86.        MOVEMENT FROM URBAN AREA TO THE INDUSTRIAL PARK, TECHNICAL INNOVATION IN JIANGXI AIR-COMPRESSOR MANUFACTURING COMPANY, LTD. 46

IV.87.        TRANSFERRING 28% OF SHARES OF GUIXI FERTILIZER FACTORY.. 46

IV.88.        TRANSFER RING 29% OF SHARES OF JINGDEZHEN POWER PLANT. 47

IV.89.        TRANSFER RING 29% OF SHARES OF FENGYI  POWER PLANT (FIRST PHASE) 47

IV.90.        TRANSFER RING 60% OF SHARES OF XINYU POWER PLANT. 47

IV.91.        TRANSFERRING 56% OF SHARES OF JIANGXI  ZHENGXIN PHARMACY LIABILITY CO. LTD. 47

 

  1. An Introduction of Jiangxi Province

I.1. A survey of Jiangxi Province

Geographic Location

Jiangxi Province, called Gan for short,Jiangxi is located in the southeast of China and on the southern bank of the middle and lower reaches of Yangtze River, bordering Zhejiang and Fujian province to the east, Guangdong Province to the south, Hunan Province to the west as well as Hubei and Anhui province to the north. Moreover, Jiangxi is the hinterland of the Changjiang Delta, Zhujiang Delta and southeast triangle area of Fujian province. The advantageous Location enables Jiangxi to offer convenient, efficient and direct connection to the major neighbouring cities and ports including Shanghai, Nanjing, Guangzhou, Shenzhen, Hong Kong, Xiamen, Wuhan, Changsha, Hefei and so on, with a direct link of about 600 or 700km.

Area

With a total area of 166,900 square kilometers, Jiangxi is the largest province of the Eastchina, stretching about 620km from south to north and about 490km from east to west.

Climate

Near to the Tropic of Cancer, Jiangxi’s climate belongs to typical subtropical humid climate, with annual average temperature 18.7℃ and sunshine duration 1,846.7 hours. On the other hand, abundant rainfall creates favourable conditions for farming with annual average precipitation of 1,391.2mm and long frost-free period.

Topography

Jiangxi is characteristic of mountains and hills. Mountainous areas account for 36%, hills 42%, plains and water areas 22%. Chief mountain ranges lie along the border areas. Mt. Huaiyu in the northeast embraces the largest copper reserves of the province. In the east stands Mt. Wuyi; Dayuling Range and Mt. Jiulian, the “Home of tungsten”, in the south; Mt. Luoxiao in the west and Mt. Mufu and Mt. Jiuling in the northwest.

Mineral Resources

Jiangxi abounds in mineral resources. A total of 166 mineral deposits were discovered and 102 of 166 verified through geological surveys. The minerals in Jiangxi are characteristic of complete variety and highly complete sets. The reserves of non-ferrous noble metals, rare earths and rare metals took a dominant position in China; 13 mineral deposits such as copper, gold, silver and tantalum ranked first in the country, 14 reserves such as tungsten, bismuth and beryllium ranked the second and third place. Copper, tungsten, tantalum, uranium, medium heavy rare earths, gold and silver are honored as Jiangxi’s “Seven Golden Flowers”. Moreover, Jiangxi has the largest copper deposit of Asia and the biggest copper-smelting base of China.

Forest Resources

Forest area totoals 10.6292 million hectares, timber reserves 354 million cubic meters. Forest coverage is as much as 60.05%.

Water Resources

There are more than 2,400 rivers of various sizes across the province with a combined total length of about 18,400 kilometers. The five major waterways in Jiangxi are Ganjiang River, Fuhe River, Xinjiang River, Xiuhe River and Raohe River. The Poyang Lake in northern Jiangxi is the largest fresh water lake of China and the biggest migratory bird habitat of the world. The premium-quality water from main rivers and lakes reaches the national class 2 or 3 standard. The gross volume of water resources in Jiangxi is 150.5 billion cubic meters and the volume per capita is above the average national level.

Tourism

Green mountains, clear water, historic sites and figures feature heavily in Jianxi’s attractive landscapes and history. There are well-known porcelain-capital Jingdezhen, Mt. Lushan, one of world cultural heritage and 1 world major wetland—-Poyang Lake, 3 national famous historic and cultural cities (Jingdezhen, Nanchang and Ganzhou), 5 national nature conservation areas and 11 national scenic resorts. Moreover, Nanchang, Jinggangshan, Pingxiang and Ruijin are the birthplace of Chinese revolutionary culture.

Administrative system:

Jiangxi has 11 municipalities in all: Nanchang, Jiujiang, Ganzhou, Yichun, Shangrao, Ji’an, Fuzhou, Jingdezhen, Pingxiang, Xinyu and Yingtan. There are 99 counties, county-rank cities and city-administered districts. Nanchang is the capital of Jiangxi.

I.2. Investment Environment

Economy

In 2005, the GDP of Jiangxi reached RMB405.62 billion Yuan, up 12.8% over the previous year. The primary, secondary and tertiary industry respectively increased by 6.5%, 17.1% and 10.8%. Per capita GDP came to RMB 9,439 Yuan, over $1000 dollar at an average exchange rate of 2005.

The fiscal revenue went up rapidly. The fiscal revenue totaled RMB42.59 billion Yuan, up 21.4% over the previous year, among which RMB25.29 billion yuan was from local revenue, up 22.9%. There are 84 counties, cities and districts, whose total fiscal revenue exceeded RMB100 million Yuan.

The gross fixed assets investment rose to RMB229.3 billion Yuan, up 26% over 2004. The structure of investment got improved. The construction of fundamental industries and infrastructure was further speeded up.

Market

In 2005, the retail turnover of social consumer goods in Jiangxi reached RMB 123.62 billion yuan, up 15% over the previous year. Since 1997, a new record in growing rate was achieved and ranked the fifth in China. Particularly, the retail sales of urban consumer goods amounted to RMB 65.17 billion yuan, up 16.5% over the previous year.

Open-economy

Development of Open-economy is Jiangxi’s top agenda. From 2001 to 2005, contribution of open- economy to Jiangxi economic growth accounted for 35% and 50% to fiscal increase.

From 2001 to 2005, there were totally 3,562 foreign-invested enterprises approved in Jiangxi and the total of virtually utilized foreign capital reached USD 7.57 billion, 2.8 times more than that of the last two decades. In 2005 total utilized foreign investment was valued at USD 2.42 billion, a 9.67-fold increase over 2000. Jiangxi won the first in the utilization of foreign investment 3 times in succession among the six provinces of Midchina.

In 2005, the gross volume of imports and exports totaled USD 4.06 billion, up 14.9% over the previous year, among which, USD 2.44 billion derived from export, up 22.3% over the previous year, and USD 1.62 billion from the import, up 5.4% over the previous year.

In 2005, contracted overseas engineering projects and labour cooperation valued USD 290 million, up 101% compared to the same period of 2004 and the business volume reached USD 210 million, up 26% over the previous year.

Agriculture

Jiangxi is a big agricultural province. Diversified farm products such as grain, oil plant, vegetable, pig, Chinese tangerine, navel orange and freshwater fish, take the lead in China. In 2005, the gross agricultural output valued RMB 114.30 billion yuan, of which, grain yield totaled 18.54 billion kilograms, a record-breaking increase of 500 million kilograms.

Industry

Jiangxi stresses on industrialization and forms a new pattern of industry-oriented economic growth. In 2005, the gross industrial increment amounted to RMB 145.55 billion yuan, up 20% over the previous year and the contribution of industry to the economy was 51.6%, among which, the gross industrial increment of independent accounting industrial enterprises in the province reached RMB 82.85 billion yuan, up 23.6% over the previous year. Six pillar industries, including Automobile & Aviation, Precision Instrument, metallurgy & metal products, Chinese medicine & biology medicine, Electronic Information & Electrical Appliances, Food Processing, Fine Chemicals & New Building Materials, played a prominent role with an added value of RMB 49.72 billion yuan and profits tax of RMB18.98 billion yuan, respectively accounted for 60% and 68.9% among the independent accounting industrial enterprises in the province.

Tourism

Jiangxi enjoys high reputation for its unique picturesque scenery and historic culture and outstanding figures, which offers great scope to tourism as emerging industry. In recent years Jiangxi has been gradually driving tourism as key industry into fast track. In 2005 Jiangxi received 373,000 overseas tourists and 50.579 million visitors across China, respectively up 29.5% and 23.7% over the previous year. The total income in tourism amounted to 32 billion yuan, up 32.9% in comparison with that of 2004.

Banking and Insurance

Banking system remains stable. By the end of 2005 Deposits of financial facilities across Jiangxi totaled RMB 444.55 billion yuan, a jump of 65.07 billion yuan over the beginning of the same year.Personal savings in both rural and urban households amounted to 275.29 billion yuan, an increase of 40.52 billion yuan over the start of 2005.The credits held by provincial financial facilities in RMB totaled 301.9 billion yuan, an increase of 36.77 billion yuan over the beginning of 2005. Insurance maintains steady growth. A total income of 8.98 billion yuan derived from insurance premium increased by 11% over the previous year.

Commerce and Circulation

In 2005, the total trade volumn of wholesale and retail business came to RMB 109.65 billion yuan, up 15%. The realized retail rates of catering industry amounted to RMB 12.33 billion yuan, up 18.7% over the previous year. Commodity Circulation is increasingly accelerating. By the end of 2005, the number of various commodity trade markets was 2,395, among which, there are 72 commodity trade markets over 100 million, with the business volume of RMB 51.43 billion yuan. In addition, there are 34 chain stores over quota up 88.9% over the previous year with a trade volume RMB 22.17 billion yuan, a 4.5-fold increase.

Science, Technology and Education

Scientific and technological research staff is continually expanding. In 2005, Jiangxi has set up one national engineering technological research center, 45 province-level engineering technological research centers and 35 province-level key laboratories. 3,321 technological contracts have been signed with a turnover of RMB 1.11 billion yuan. The number of patent applications was steadily on the increase: 2,815 patent applications were received, 1,361 were granted patent rights. The number of nationally registered scientific and technological achievements rose to 207 and 5 of them were awarded the prize of national scientific and technological advancement. A number of scientific discoveries were directly put into use and thereby increased good social and economic benefits.

Education sees a stable development and citizen’s cultural quality is greatly improved. In 2005, there were 646,100 undergraduates 9,860 postgraduates, and 149,000 graduates in all at colleges and universities. Furthermore, the secondary education developed quickly. In 2005, 280,500 students were enrolled at secondary vocational schools, full-time 644,100 students therein and 147,400 graduates. There were 849,200 schoolchildren in senior high schools, 2.0123 million in junior high schools, 3.8416 million (99.01% of school-age children) in primary schools. At the same time the adult education also made remarkable progress. There were 101,300 students in the adult colleges and universities and 14,600 students in the adult secondary schools. 268,300 students attended the examination for higher education self-study program in 2005 alone. 9,300 and 7,900 students were awarded a diploma respectively for higher and secondary educational program.

Population and Environment

According to a sampling survey, the total population of Jiangxi province was 43.112 million, 13.79‰ of birth rate, 5.96‰ of mortality rate and 7.83‰ of natural growth rate by the end of 2005.

More concerns are given to the issue of environmental protection. 90 environmental monitoring stations were scattered across Jiangxi. 54 smoke/dust control zones established in cities, with an area of 803 square kilometers. Among 11 monitored cities, air quality of 9 cities reached grade-2 standard, and 2 cities met grade-3 standard. 145 anti-pollution projects were completed all the year round.

Logistics

A 3-dimensional transportation network has been established, consisting of waterway, highway and airway transportation.

Beijing-Kowloon Railway from north to south, Zhejiang-Jiangxi Railway from east to west and both of them form a major railway network together with Yingtan-Xiamen Railway, Anhui-Jiangxi Railway, Henfeng-Nanping Railway and Ganzhou-Longyan Railway, etc. The total mileage is 3,070km. In particular, multiple transportation has been put in operation from Nanchang to Ximen and from Nanchang to Shenzhen.

Jiangxi has built a shaped highway network of 1,580km in length. The main roads and highways both connect Jiangxi with neighboring provinces and link the capital city Nanchang to the other 10 municipalities and districts. Highways of Jiangxi in length ranks the second (only after Henan) in the Mid-China and the ninth in China. By the end of 2005, the length of roads and highways totaled 62,300 kilometers and the density reached 37.37km per 100 square kilometers. 100% counties&towns and 86% of villages had roads.

Jiangxi waterways system mainly consists of the Yangtze River (Jiangxi section), Ganjiang River and Xinjiang River, which totals 5,638km. Moreover, Ganjiang River and Poyang Lake connect 62 waterways. There are 54 ports in all with a total annual handling capacity of over 10,000 tonne, including 1 Jiujiang Port (over 6 million tonne), Nanchang Port and Ruichang Port (3million~5 million tonne), 7 ports (1million~3 million tonne) and 44 ports (below 1million tonne). The opening economy is gathering momentum of rapid growth and the volume of seafreight keeps increasing. Nanchang International Container Handling Dock and Jiujiang International Waterway Transportation Center have been constructed, from which ships can reach all major ports of the world.

So far Jiangxi has 5 airports available: Nanchang Changbei International Airport (Grade 4C), Ganzhou Huangjin Airport (Grade 4C), Jingdezhen Luojia Airport (Grade 4C), Jiujiang Lushan Airport (Grade 4C) and Ji’an Jinggangshan Airport (Grade 3C), 47 air lines have been in operation. Five international lines have been approved by authority including Nanchang-Singapore,Nanchang-Beijing-Frankfurt,Nanchang-Beijing-Paris, Nanchang-Beijing-Los Angeles and Nanchang-Beijing-Vancouver. In 2005, civil aviation in Jiangxi has carried 2.06 million passengers and transported 17,000 tonne of freights.

Post and Telecommunications

The industry of post and telecommunications maintains sustained and rapid growth. New communication portfolio increased remarkably. In 2005, the total business value of post and telecommunications went up to RMB 26.1 billion yuan. The capacity of program-controlled switchboards rose to 10.82 million terminals. The Internet subscribers increased to 3.17 million. In every 100 residents, there were 37.9 telephones available. The improvement in service quality in post and telecommunications was remarkably.

Power Industry

Jiangxi has sufficient power supply. In 2005, the capacity of generating electricity jumped to 2.293 million kilowatts over the previous year. The power consumption of Jiangxi setted a new historic record, reaching 28.7 billion kwh. The flourish industry came into a new stage. During the 11th Five-Year Plan, Huangjinbu Power Plant, second phase project of Fengcheng Power Plant, Ruijin Power Plant, expansion of Fenyi Power Plant and second stage project of Jinggangshan Power Plant are to be under construction. Phased utilization of Wan’an and Taihe hydropower and the Project of Hongbing Power Plant (where water will to be pumped and stored for electricity generation) are to be carried out. The first-stage construction of 2 nuclear electricity generator sets over 1 million kilowatt and one 100,000-200,000 kilowatt wind power station around the Poyang Lake are also listed in the plan.

Nanchang National High-tech Industrial Development Zone

: It is a state level high-tech industry development zone, covering an area of 231 square kilometers, among which an industrial area of 32 square kilometers has been completed in construction. This zone is the best area within Nanchang in terms of air quality and ecological environment, with efficient connection in traffic and garden-style greening. Infrastructure is completed, the supporting facilities are available and the industrial area has already attained the goal of “Seven Supplies and One leveling”, inclusive of construction of highways, program-controlled telephones, high speed broad band computer network and so on. The four pillar industries of Electronic Information & Application Software, Biology Medicine, Integration of Optics, Electronics and Machinery and New Materials have been set up on a preliminary basis in the zone. The strategies of industrial development are to give priority to high-tech industry, attach much importance to software industry, devote great efforts to the growth of modern manufacturing industry and offer supports to the tertiary industry.

Nanchang Economic and Technological Development Zone

Nanchang Economic and Technological Development Zone approved by the State Council in 2000, covers an area of 118 square kilometers with a population of 180,000. The industrial center in the zone has been developed 27 square kilometers of 40 square kilometers planned area. Favored by its unique advantages in location, infrastructure, low cost of investment and sincere civil service, it has formed a manufacturing base mainly for the four pillar industries of Automobile Manufacturing, Electrical Appliances, Electronic Information and Modern Paper-making, and has already become a key link of export-oriented economy in Nanchang.

Jiujiang Export Processing Zone

Jiujiang Export Processing Zone is so far the unique national export processing zone in Jiangxi province. With a planned area of 2.81 square kilometers, the zone is located in the northeast industrial area within Jiujiang Economic and Technological Development Zone, only 9km away from the downtown of Jiujiang. It has significant advantages in location, traffic and infrastructures. Under a unique management pattern, the zone has set up customs, administration of inspection and quarantine for export&import, banks, warehouses and transportation companies etc, so that all procedures relating to import and export can be settled within it. In addition, all enterprises registered in the zone are entitled to preferential taxation policy and efficient high quality services. The zone is concentrating on the development of Electronic Information, Precision Instrument and New Advanced Materials in tandem with support for clothing for export, foodstuff and other industries.

  1. Main Objectives of Economic and Social Development of Jiangxi from 2006 to 2010

In the next five years, Jiangxi will implement the scientific mode of development completely, seize the important strategic opportunity period firmly, focus attention on the rejuvenation quickly, enrich the people and flourish the province,  base itself upon scientific development , exert itself to self-innovation, perfect various systems; promote the social harmony, make great efforts to promote agricultural and country modernization, new industrialization, new urbanization, economic internationalization and market orientation, construct an innovative and pioneering, green and ecological, harmonious and peaceful Jiangxi, improve the quality and level of development, and reinforce the integral strength of economic society in the province so as to lay a solid foundation for the rising of Jiangxi in central China and  build a well-off society in an all-round way.

Economy: In 2010, the GDP per capita will reach USD 2,000, 11% at an annual growth, and the urbanization will increase to 45% or above. From 2006 to 2010, the actual utilization of foreign investment will reach USD 16 billion in total, 10% at an annual growth, and reach USD 3.9 billion in 2010; the export will reach USD 21.8 billion in total, 15% at an annual growth; in 2010, the volume of import and export will add up to USD 10 billion, of which USD 6 billion for export.

Investment: It will develop 540 key projects in Jiangxi with a total investment of approximately RMB 511 billion yuan. These projects including Industry, Characteristic Metallurgy and Metal Products, Chinese and Biology Medicine; Electronic Information and Electrical Appliance; Food Industry; Fine Chemical and New Building Material etc.

Communication: The expressway of the province will form the structure of “three main horizontal and four main vertical”. The total length of expressway in province will reach 2000 kilometers in 2007 and 3000 kilometers in 2010, all arterial highways in the whole province, including national highways and provincial highways, will reach the technical standard for the second grade highway or above.

Environment: 63% at the forest coverage in the whole province, 60% at the concentrated disposal of domestic sewage in the cities and towns and 70% at the harmless treatment of domestic waste. Jiangxi will become a great province of unique ecological charms in China.

  1. Investment Policy

III.1. Industrial Policy

◆  As to the nationally encouraged foreign-invested enterprises and the projects included in Catalogue of Priority Industries for Foreign Investment in Central and Western Regions (Jiangxi) of China, if the equipment for self-private use and the accessory technologies, components, and spare parts can not be produced domestically or the home-made can not meet the performance requirements, they can be imported and purchased within the total investment, they are exempted from import tariffs and link tax.

◆For the technical innovation projects in the nationally encouraged foreign-invested enterprises, foreign-invested research and development centers and advanced technology and export-oriented foreign-invested enterprises, if the equipment self-private use and the accessory technologies, components and spare parts can not be produced domestically or the home-made can not meet the performance requirements, they can be imported, If they are within the approved scope of production and operation and are purchased with the self-possessed funds which are not included in the total investment, they are exempted from import tariffs and link tax.

III.2. Regional Policy

◆  Foreign-invested producing enterprises located in Nanchang and Jiujiang two cities will be levied the income tax at a reduced rate of 24%.

◆The foreign investment and new technology enterprises located in Nanchang High-tech Industries Development Zone will be levied the income tax at a reduced rate of 15%.

◆  The approved foreign productive enterprises located in Nanchang Economic & Technological Development Zone will be levied the income tax at a reduced rate of 15%.

III.3. Preferential Policies of Jiujiang Export Processing Zone

Products processed for export and labour services are exempted from tariffs and VAT.

◆All required machinery, equipment, infrastructure construction materials for maintenance as necessary in production and reasonable self consummated office stationary will enjoy free tax within the area.

◆The imported raw materials , spare parts and components as necessary in the production for export are treated as bonded materials.

◆Domestic machinery, equipment, raw materials, components & spare parts ,infrastructure construction sold into the EPZ are treated as export and enjoy tax refund policy.

◆When enterprises in the EPZ send raw materials , spare parts and components as necessary in the production to outside of the EPZ while return within half year are treated as bonded materials.

◆No quota or license is needed for the commodities flow between the EPZ and any other countries, unless the state has special requirements such as export passive quota management.

  1. Appel à la Coopération Internationale, Projets de Jiangxi

IV.1. DEVELOPMENT AND PRODUCTION OF NEW TYPE VEHICLES

PROJECT CONTENTS: To introduce advanced foreign technology to develop new type series passenger vehicles so as to form annual production capacity of 200,000 different motor vehicles.

MARKET FORECAST: Jiangling Motor Co., Ltd. (Group) is one of the key automobile companies in China, and its total asset is RMB 7 billion yuan. It is a modern light motor vehicle production base with the integration of die punching, welding, painting, assembling and engine producing. The Company has a rather high share in the domestic market for its light series motor vehicles and is a main producer of light truck, business vehicle, SUV and so on in China. Development of new type series passenger vehicles will expand the market share.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 604.59 million. The extra sales income would be USD1.125 billion, total profit and tax USD 150 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.2. PRODUCTION OF 200,000 MINI ECONOMY CARS PROJECT

PROJECT CONTENTS: To produce another 200,000 cars on the basis of first stage production capacity of 100,000 cars/year so as to expand the total annual capacity to 300,000 vehicles.

MARKET FORECAST: Changhe Motor Stock Company, Ltd. is a sub-company of Changhe Aircraft Industrial Corporation (Group), mainly engaged in development, manufacture, sales and after sale services of automobiles, engines, and motor vehicle spare parts. The production capacity of 100,000 cars/year was formed in May of 2005. According to the estimation of some state departments, the car industry will be developing very fast. As more and more family will have cars, the product will have a very large market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 217.65 million, the annual sales income would be USD 1.8125 billion, profit and tax USD 125 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.3. GASOLINE ENGINES FOR MOTOR VEHICLES (Second Stage Project)

CONTENTS: To produce another 150,000 engines on the basis of first stage production capacity of 150,000 so as to expand the total annual capacity to 300,000 engines.

MARKET FORECAST: According to the estimation of some state departments, the car industry will be developing very fast. The products will be mainly supplied to the car plant in the company. As more and more family will have cars, the product will have a very large market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 120.91 million, the annual sales income would be USD 375 million, profit and tax USD 37.5 million.

FORM OF COOPERATION: Joint venture, cooperation

IV.4. PRODUCTION OF 60,000 DIESEL ENGINES FOR MOTOR VEHICLES

PROJECT CONTENTS: To introduce advanced foreign engine technology and products to form an annual production capacity of 60,000 new vehicle engines.

MARKET FORECAST: As the requirements for the environment protection are higher, the standards for the automobile exhaust are higher. From now on the new and the repaired engines should be up to the standards for the exhaust. So the demand for new type automobile engines will be bigger and bigger.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 84.35 million, the annual sales income would be USD 179.25 million, profit USD 24.85 million and tax USD 8.92 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.5. PRODUCTION OF AUTOMOBILE PARTS

PROJECT CONTENTS: To develop and produce engines, gear boxes, front and back axles, vehicle bodies, frames, chairs, air-conditioners, laminated spring, shock reducers, vehicle lights, fuel tanks, water tanks, braking devices, braking hoses, interior pieces, punched parts, chassis parts, etc.

MARKET FORECAST: The state government will give much importance to the development of automobile parts, which will help the industry become a strong one with the comparative advantages. With the rapid development of the automobile industry in China, the automobile parts industry will have a very big potential.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 200 million, the additional annual sales income would be USD 500 million, profit and tax USD 62.5 million.

FORM OF COOPERATION: Joint venture, cooperation

IV.6. PRODUCTION OF AUTOMOBILE SPARE PARTS

LOCATION: Duchang Automobile Parts Company, Ltd., Duchang County, Jiangxi Province

PROJECT CONTENTS: 1. Innovation of the production line of body parts and beams; 2. To introduce technology, purchase equipment and build some new workshops to produce 200,000 sets of ABS systems. MARKET FORECAST: As the living standard is getting higher and higher, the market for automobile will be bigger and the consumption of the spare parts must be larger. So production of the spare parts will have a very bright future.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 53 million, the additional annual sales income would be USD 625 million, profit and tax USD 25 million.

FORM OF COOPERATION: Joint venture or sole proprietorship

IV.7.    SUPPORTING PROJECT TO AIR-CONDITIONER PRODUCTION

PROJECT CONTENTS: To build workshops and production lines.

MARKET FORECAST: Our country is a big refrigerating equipment producer. In the park the refrigerating equipment production capacity is more than 10 million sets. The refrigerating equipment with Freon as the agent will be eliminated and will be replaced by the Freon-free equipment. As the living standard is becoming higher, the market for the air-conditioners is bigger and bigger. So the demand for the supporting parts is also becoming bigger.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 541.14 million and the annual sales income would be USD 750 million.

FORM OF COOPERATION: Sole proprietorship, joint venture or cooperation.

IV.8.    ANNUAL PRODUCTION OF 1 MILLION FREQUENCY CONVERSION COMPRESSOR

PROJECT CONTENTS: To introduce technology from a Danish company to build a high efficient, energy-saving, frequency conversion compressor production line with the annual capacity of 1 million sets.

MARKET FORECAST: The frequency conversion compressor is a high efficient, energy-saving compressor, which starts at a big torsion, operates smoothly, refrigerates quickly, raises the accuracy of the temperature control and lowers the noise. It is now the most welcome one in the market and the market share will be bigger and bigger year by year.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 32 million, the annual sales income would be USD 32.5 million, profit and tax USD 3.29 million.

FORM OF COOPERATION: Joint venture

IV.9. INFRARED OPTICAL LENS PROJECT

PROJECT CONTENTS: To produce annually 1 million pieces of silicon lens, 1.5 million pieces of flat silicon lens; 1 million pieces of germanium lens, 1.5 million pieces of flat germanium lens.

MARKET FORECAST: Now all the infrared optical lenses are imported. The Company with American and German companies has developed infrared optical elements, mainly monocrystalline silicon slice and monocrystalline germanium slice, which are key parts in remote control and precision instruments. The domestic market for the products are big, but most of the products are exported to the United States and Germany, only a very small portion of the products are sold in domestic market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 12.5 million, the return on investment would be 23.9% and the rate of return on investment would be 28.2%.

FORM OF COOPERATION: Joint venture or cooperation

IV.10.  PRODUCTION OF RARE EARTH PERMANENT MAGNETIC ELECTRONIC POWER SWITCHES

PROJECT CONTENTS: To purchase equipment, build public facilities and new workshops to produce 3,600 sets of permanent magnetic high voltage vacuum circuit breakers, 600,000 sets of AC low voltage contactors.

MARKET FORECAST: The permanent magnetic high voltage vacuum circuit breakers and AC low voltage contactors are the necessary essential parts in power distributing and mechanical equipment, and have much market potential.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 22 million, the additional annual sales income would be USD 50.25 million, profit USD 8.47 million and tax USD 5.09 million.

FORM OF COOPERATION: Sole proprietorship

IV.11.  PRODUCTION AND SALES OF KEY PARTS FOR OPTICAL INSTRUMENTS

MARKET FORECAST: New type optical products expand the application area of the conventional optical elements. The market for the optical elements for digital cameras, PC-cameras, video telephone, optical scanner, conventional cameras exceeds USD 1 billion, which will render the processing of optical elements a very good future.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 20 million, the sales income would be USD 25 million, of which foreign earnings would be USD 12 million and profit USD 6 million.

FORM OF COOPERATION: Joint venture

IV.12.  EXPANSION OF PRODUCTION OF GRIPPER LOOMS

PROJECT CONTENTS: Based on the existing workshops and facilities to innovate the existing production lines of gripper looms to expand the capacity.

MARKET FORECAST: The gripper loom project was a special national import project to produce import replacement products, which won the national new product certificate and has a very big market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 7.75 million, the sales income would be USD 6 million and the profit would be USD 650,000. The investment recovery period would be 38 months.

FORM OF COOPERATION: To find a partner to expand the production capacity. Joint venture or cooperation.

IV.13.  ANNUAL PRODUCTION OF 3 MILLION TON THIN STEEL PLATE

PROJECT CONTENTS: To build a thin steel plate plant with the annual capacity of 3 million tons, of which 2.94 million tons is of hot-rolled plate and 1.1 million tons is of cold-rolled plate.

MARKET FORECAST: It is estimated by the Association of China Iron and Steel Industry that the total production capacity of hot rolled thin steel plate is 47.14 million tons, but the demands is 55.8 million tons in 2005 and would be 89.5 million tons in 2010. Before 2010 the production capacity of the cold rolled plate would be 40.3million tons. The demand in 2005 is 32.8 million tons and that in 2010 would be 55 million tons. So the cold rolled steel sheet will have a very good domestic market for a long time.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment in the fixed assets would be USD 1.4125 billion. After the designed capacity is reached, the annual sales income would be USD 1.35 billion, the total profit USD 300 million, and tax USD 115 million.

FORM OF COOPERATION: Joint venture or cooperation. The company will raise the capital, and the rest will be invested by investors or by bank loans.

IV.14. TECHNICAL INNOVATION OF PLUMBUM SMEITING

PROJECT CONTENTS: The old factory will be moved to establish a new electrolytic plumbum smelting factory with the annual capacity of 80,000 tons of electrolytic plumbum, 78,000 tons of sulphuric acid, 393 tons of refined bismuth, 296 kilograms of electrolytic gold, 208 tons silver and 2,623 tons of raw copper.

MARKET FORECAST: From 1999 to 2004, the output of plumbum in China has increased annually by 14% and the consumption has increased annually by 23%, the export of plumbum has maintained almost 43,000 tons annually. Our domestic production capacity of plumbum is less than consumption capacity, but the international output and consumption of plumbum is balanced in recent years, in 2004, the output of plumbum is 6.56 million tons and the consumption of plumbum is 6.51 million tons.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 45 million, of which the investment of fixed assets would be USD 28.75 million. The estimated annual sales income would be USD 131.23 million, the profit would be USD 17.5 million and the tax would be USD 8.75 million.

FORM OF COOPERATION: Joint venture or cooperation 

IV.15. FUTHER PROCESSING OF TUNGSTEN IN GANZHOU CITY

PROJECT CONTENTS: To build a production line with the capacity of 4,000 tons of super fine tungsten powder and super fine tungsten carbide powder, a line with the capacity of 1,000 tons of super fine crystal shape hard alloy, and a line with the capacity of 2.6 billion meters of vibration and heat resisting tungsten thread.

MARKET FORECAST: Super fine tungsten powder and super fine tungsten carbide powder are the main materials for super fine crystal shape hard alloy products. The two powders are high-tech content products and the supply can not meet the market demands. The super fine crystal shape hard alloy products have the property of good strength and ductility because of the improvement in the material structure and the stress. Now the annual demand for the material in the world is 2,500 tons and is increasing annually by 15 – 20%. The production of the material in our country is very little and most of it should be imported. The vibration and heat resisting tungsten thread is an import replacement product and is for the electric light source industry. In recent years the demand for the thread is more than 100 tons, of which 80% is imported.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 115 million. After the designed capacity is reached, the sales income would be USD 266.25 million, profit and tax USD 45.38 million.

FORM OF COOPERATION: Cooperation or sole proprietorship

IV.16.          FURTHER PROCESSING OF RARE EARTH IN GANZHOU CITY

PROJECT CONTENTS: 1. To build a production line with the annual capacity of 1,000 tons of rare earth fluorescent powder; 2. To build a production line with the annual capacity of 2,000 tons of high-performance permanent magnetic materials.

MARKET FORECAST: Rare earth industry is a new industry and has very big domestic and foreign market. The rare earth permanent magnetic materials, luminescent material and their products are widely used in aviation and space industry, machinery and chemical industries, electronics, medical instruments, energy-saving lamps and other fields, and are the high-tech products in the material field. The demand for the material is increasing annually by 15 – 20%. Ganzhou is known as “The Kingdom of Rare Earth” and is very rich in ionic rare earth deposit. The commercial deposit of the ionic rare earth takes up 50% of the total in the country and is the strategic resources in the country.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: 1. The total investment would be USD 11.88 million, the annual sales income would be USD 37.5 million, the profit and tax would be USD 6.25 million. 2. The total investment would be USD 37.5 million, the annual sales income would be USD 62.5 million, the profit and tax would be USD 12.5 million.

FORM OF COOPERATION: Sole proprietorship, joint venture or cooperation

IV.17.  CONSTRUCTION OF FLUORESCENT POWDER PRODUCTION BASE IN GANNAN

PROJECT CONTENTS: To build a production line with the annual capacity of 1,000 tons of fluorescent powder.

MARKET FORECAST: With the progress of the society, more and more energy-saving lamps are used instead of the conventional household lamps and the demand is increasing annually. Besides, the consumption of the fluorescent powder is increasing annually by 5 – 15%. It is estimated that in 2005 the total consumption of the fluorescent powder in the world would reach 7,000 – 8,000 tons.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 25 million. After the designed capacity is reached, the annual sales investment would be USD 62.5 million, tax USD 3.75 million and profit USD 7.5 million.

FORM OF COOPERATION: Joint venture.

IV.18. CONVERSION OF GANZHOU ALUMINUM FACTORY AND INNOVATION OF SERIES PRODUCTS

PROJECT CONTENTS: To find a partner to change the ownership of the factory and to build a production line with the annual capacity of 300,000 tons of aluminum, aluminum alloy plates, aluminum belts and aluminum wheel hubs.

MARKET FORECAST: Aluminum industry is a rising sun industry. The aluminum plate and belt materials are widely used in industries and daily life. With the acceleration of the industrialization, the requirements for the quality and quantity of aluminum materials are getting higher and higher. It is estimated that in the years to come, there will be a shortage of 600,000 tons of aluminum plate and belt materials in the domestic market, which means the industry has a very good development future. With the development of the auto industry, the demand for the aluminum wheel hubs will increase rapidly, which makes a very good opportunity for the industry to develop new products.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 13.75 million. After the designed capacity is reached, the annual sales income would be USD 80 million, profit and tax USD 11.03 million.

FORM OF COOPERATION: Cooperation, joint venture, equity participation, controlling the company or buy out.

IV.19.  BASE CONSTRUCTION OF ANNUAL PRODUCTION OF 3,000 TONS OF SUPERFINE HARD ALLOY

PROJECT CONTENTS: To establish production base with the annual capacity of 3,000 tons of superfine hard alloy, the first phase of the project is to build a production line with an annual capacity of 500 tons of superfine hard alloy.

MARKET FORECAST: Hard alloy consumes more than 50% of the world’s tungsten resources and belongs to the field of high added value and high-tech products in the chain of tungsten production. It is also the product encouraged by Chinese government for attracting foreign investment. Ganzhou has rich tungsten resources and a very good industrial base for metallurgy. Till the year of 2008, Ganzhou will become the biggest producing and distributing center of tungsten powder and tungsten carbide powder in China. The government will offer the industrial construction land, water supply, electricity facilities and convenient road transportation.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment of fixed assets in the first phase would be USD 36.88 million, annual sales income can reach USD 69.38 million when the project is completed, profit USD 25.25 million, tax 9 million. The payout period for static investment is 2.9 years (excluding the construction period of project).

FORM OF COOPERATION: Sole proprietorship, joint venture or cooperation

IV.20.  ANNUAL PRODUCTION OF 3,000 TONS OF SINTERED NdFeB WITH HIGH PERFORMANCE MAGNET

PROJECT CONTENTS: To produce high performance sintered NdFeB magnet with annual capacity of 3,000 tons, and high Heb and coercive force magnets, sales of half-finished products or finished products after processing.

MARKET FORECAST: The demand for sintered NdFeB permanent magnetic materials is increasing greatly every year home and abroad, but most of them not applied to high-tech products such as computers, MRI, energy-saving magnetos, etc. The demand for high performance sintered NdFeB will be largely increased home and abroad in a few years’ time. Ganzhou is the principal raw material producing area for ionic rare earth. The material here is rich in medium and heavy rare earth elements such as terbium,dysprosium etc, which are the important elements to produce high performance rare earth magnet. Now the technology for the construction of a production line of high performance sintered NdFeB is mature, the demand for the product in the world is great, therefore a remarkable profit can be obtained on building a production base for manufacturing high performance sintered NdFeB in Ganzhou.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 37.5 million, of which the investment of fixed assets would be USD 28.75 million. The annual sales income would be USD 68.75 million when the project is completed, profit and tax USD 25 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.21.  THE PROJECT OF RARE EARTH LASTING MAGNETIC MATERIALS AND PERMANENT MAGNETOS

PROJECT CONTENTS: To build a production line with the annual capacity of 2,500 tons of sintered NdFeB and to produce more than 30 kinds of rare earth permanent magnetos.

MARKET FORECAST: Now the manufacturing industry for lasting magnetic materials has developed into a big industry both at home and abroad. The output and sales of the world’s 3 important kinds of lasting magnetic materials such as ferrite, rare earth materials and alnico have been increased greatly and its market demand is even greater. The rare earth resources for producing lasting magnetic materials and permanent magnetos are rich in Ganzhou. Now there are 10 ionic rare earth dressing enterprises in Ganzhou, with an annual dressing capacity of over 10,000 tons.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 43.75 million, of which the investment of fixed assets would be USD 35 million. The annual sales income would be USD 130 million when the project is completed, sales tax and added value USD 8 million, profit USD 4 million.

FORM OF COOPERATION: Joint venture or sole proprietorship

IV.22. PRODUCTION OF TUNGSTEN  AND COPPER ELECTRONIC PACKAGING

PROJECT CONTENTS: To build 5 production lines of tungsten and copper electronic packaging material with the annual capacity of 1 million pieces of tungsten and copper electronic packaging material.

MARKET FORECAST: The tungsten and copper electronic packaging material is a composite material of tungsten and copper. It has the tungsten characteristics of little expanding and the copper characteristics of conducting electricity. It is convenient to use the material because of its characteristics in heat inflating and electrical conducting. Now this material is widely used in micro-electronic products. As the packing of microwave apparatus or integrate circuit, it has the function of sustaining and abstracting heat. The technology of this project is of high level and is in the leading position, the market prospect of development is great.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 15 million, of which the investment of fixed assets would be USD 10 million. The annual sales income would be USD 18.75 million when the project is completed, profit USD 5.5 million.

FORM OF COOPERATION: Sole proprietorship or joint venture

IV.23. NANOMETER CRYSTAL RARE EARTH HARD ALLOY TOOLS

PROJECT CONTENTS: To further process nanometer crystal rare earth hard alloy powder to produce nanometer crystal rare earth hard alloy.

MARKET FORECAST: The total production of hard alloy in our country is about 13,000 to 15,000 tons, but most of the producers are producing traditional products, which can not meet the demands of the market for some reason. The demand for high hardness and high ductibility hard alloy materials is going up steadily, and there is much potential in the foreign market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 40 million, the annual sales income would be USD 60 million and the profit USD 17.5 million.

FORM OF COOPERATION: Joint venture

IV.24. LITHIUM TANTALATE AND LITHIUM NIOBATE CRYSTAL SAW DEVICE

PROJECT CONTENTS: To build a plant to produce lithium tantalate and lithium niobate crystal SAW devices

MARKET FORECAST: With the advances of the mobile telecommunications system, SAW devices is developing toward plate, assembly and high frequency type, and the demand is increasing greatly.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 11 million, the sales income would be USD 22.5 million and the profit USD 4.22 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.25. ANNUAL PRODUCTION OF 500 TONS OF RARE EARTH LUMINESCENT MATERIALS

PROJECT CONTENTS: To build a rare earth hydrogen storage material production line with the annual capacity of 500 tons.

MARKET FORECAST: With the development of the rare earth luminescent materials in the fields of lighting, telecommunications, IT, displaying, electronics, etc. the market for the material is very optimistic.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 18.15 million, the sales income would be USD 9.38 million and the profit USD 2.25 million.

FORM OF COOPERATION: Joint venture, technical cooperation, etc.

IV.26. ANNUAL PRODUCTION OF 20,000 TONS OF RED COPPER REFRIGERATING PIPES

PROJECT CONTENTS: To produce 20,000 tons of red copper pipes and the refrigerating pipes, of which 12,000 tons of red copper pipes and 8,000 tons of refrigerating pipes.

MARKET FORECAST: The refrigerating pipes are one of the main materials in power generating equipment and the consumption is growing rapidly with the increase in the capacity of the stored power generating equipment. As there are more and more large capacity power generating sets, the super length, high quality and long duration refrigerating pipes are needed. According to some statistics, in our country the stored capacity was 180 million kw by 1992 and 320 million kw by 2000. During the period of the “Tenth Five Year Plan” the average additional stored capacity was 20 million kw each year. Based on this the annual demand for the pipe by 2005 would be at least 30,000 tons. And the power industry has laid a stress on the bigger than 800,000 kw power generating sets, which need super length refrigerating pipes. So we can see the market for the pipes will be very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 57.5 million. After the designed capacity is reached, the annual sales income would be USD 68.75 million, profit and tax USD 15 million.

FORM OF COOPERATION: Joint venture, cooperation, or sole proprietorship

IV.27.  ANNUAL PRODUCTION OF 25,000 TONS OF COPPER BELTS FOR VOLTAGE TRANSFORMERS

PROJECT CONTENTS: To produce 25,000 tons of copper belts for voltage transformers and other copper plate and belt materials, of which 15,000 tons of copper belts for air-immersed transformers and 10,000 tons of high precision red copper belts.

MARKET FORECAST: In other countries the air-immersed transformers take up more than 35% of the total power transformers and the number of the transformers is increasing. But in our country the annual production of the air-immersed transformers is less than 10 million KVA, and the number of the air-immersed transformers only takes up about 7% of the total power transformers. The annual demand for the copper belt materials in our country is about 10,000 tons. With the increase in the number of the air-immersed transformers the annual demand would be 40,000 tons by 2010, but now only Luoyang Copper Processing Factory and Shanghai Copper Belt Material Factory can produce the belt materials. Most of the material needed in our country is imported.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 61.24 million. After the designed capacity is reached, the annual sales income would be USD 79.83 million, profit and tax USD 17.65 million. The profit after tax would be USD 9.15 million.

FORM OF COOPERATION: Joint venture, cooperation, or sole proprietorship

IV.28. INNOVATION OF 20,000 TON WIRE MATERIAL PRODUCTION LINE IN BONENG INDUSTRIAL PARK

PROJECT CONTENTS: To form a annual production capacity of 20,000 tons of Class H and above polyester urethane and polyimide coated wires.

MARKET FORECAST: According to some statistics, the average annual consumption of coated wires per capita in advanced countries has reached 1 kg, but in our country the consumption is only 0.3 kg. Now the demands for the coated wires in our country is increasing rapidly, especially for Class H and above wires. In 2002 400,000 tons was produced and sold, in 2003 500,000 tons was produced and sold. It is estimated that in the next 10 years the production capacity in China will reach 1 million tons.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 15 million. After the project is finished the additional annual sales income would be USD 9.15 million, profit USD 3.8 million.

FORM OF COOPERATION: Joint venture, financing with fixed return rate, finance leasing, etc.

IV.29.  PRODUCTION LINE PROJECT OF ADENOSINETRIPHOSPHATASE (ATP)

PROJECT CONTENTS: To build a production line and the annual capacity of 150 tons of adenosinetriphosphatase (ATP).

MARKET FORECAST: ATP is an important reagent for nucleotide medicine and is a key project to be developed. At the present the domestic demand for it is about 200 tons, but the production capacity is only about 10 tons. The medicine is good for treating the progressive muscular dystrophy, coronary sclerosis, hepatitis, myocarditis, side effect of stroke. The production cost of the medicine is RMB 900 yuan each kg, but the market price is RMB 1,800 yuan each kg. The return on the investment is high.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 28.75 million, the annual sales income would be USD 53.75 million, the profit to investment ratio would be 45.8% and the rate of return on investment would be 60.94%.

FORM OF COOPERATION: Cooperation or joint venture.

IV.30. PRODUCTION LINE OF CHNIESE MEDICINE TEA PIGMENT CAPSULES

PROJECT CONTENTS: To produce annually 2.5 billion pieces of tea pigment capsules.

MARKET FORECAST: The tea pigment capsule has received the national patent. It was one of the items in the “135 Project” during the “Ninth Five Year Plan” period and is listed in the name list of the basic traditional Chinese medicine and the Class II protected Chinese medicine by the national government. Proved by the clinic application, the tea pigment capsule contains some bio-active substances and trace elements human body needs, and has some medical functions. In our country there are as many as 130 million people who suffer from high blood pressure. Besides, there are many who suffer from heart diseases. So the total number of the people would come to 200 to 300 million and the domestic market is huge. The medicine has attracted many businessmen from the U.S.A., Japan, Southeast Asian countries and regions since it was developed, and they place big orders. The product can be produced in large scale and other conditions for the production are good.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 16.25 million, the annual sales income would be USD 200 million and the profit USD 50 million.

FORM OF COOPERATION: Sole proprietorship or cooperation.

IV.31. ANNUAL PRODUCTION OF 300 TONS OF L-GLUTAMINE

PROJECT CONTENTS: To produce annually 300 tons of L-glutamine.

MARKET FORECAST: The quality and effectiveness of our product L-glutamine produced through the method of microbiological fermentation are better than those of the product produced through the synthesis method. The product doesn’t have the smell of ammonia. The rate of the fermentation and the rate of extracting have reached the international standards.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 15.08 million, the annual sales income would be USD 37.5 million, profit and tax USD 6.02 million.

FORM OF COOPERATION: To be negotiated.

 

IV.32.          CONSTRUCTION OF THE BASE OF COLLECTING AND SUPPLYING BLOOD PLASMA

PROJECT CONTENTS: To purchase ten blood plasma taking stations in Jiangxi Province to establish a blood plasma company.

MARKET FORECAST: Jiangxi Boya Bio Pharmaceutical Joint Stock Limited Company is in the urban area of Fuzhou City, and is the only appointed blood product producer recognized by the State Government in Jiangxi Province. It is also a key Hi-Tech enterprise in the State Torch Project. The total asset value in the company is RMB 150 million yuan. The company was the first one to receive the GMP certificate from the State Government in the blood product trade in 1998. The main products are human serum albumin and immune globulin for injections. In 2004 the company produced 550,000 albumin injections and 300,000 immune globulin injections. All the products sell to Beijing, Shanghai, Guangdong Province and some other provinces. The market share is rather large.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 10 million. The ten blood plasma taking stations will reach 1,000 tons in three years and the annual profit would be USD 3.75 million (before tax).

FORM OF COOPERATION: Joint venture.

 

IV.33.          LED EPITAXY AND ELECTRONIC CHIPS

PROJECT CONTENTS: Based on the existing conditions in the company, to introduce advanced foreign production equipment to reach an annual capacity of 300,000 square inches of LED epitaxy, and of 10 billion pieces of LED chips.

MARKET FORECAST: The company has many advantages in photoelectronic device production, because the company has internationally advanced MOCVD equipment, chip and device sealing equipment and testing instrument. The company now has formed a complete product chain from LED epitaxy, chips, devices and application products, and a scale production.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 22 million, the additional annual sales income would be USD 50 million and the profit USD 7.5 million.

FORM OF COOPERATION: Joint venture, cooperation

 

 

IV.34.          INDUSTRIALIZATION OF LCOS

PROJECT CONTENTS: To produce annually: liquid crystal device: 1 million sets; optical engine: 750,000 sets; overall units: 500,000 sets; to realize the industrialization of LCOS.

MARKET FORECAST: As the production becomes bigger and the more parts are made in the country, the price of the product will go down greatly, and the high quality and high performance LCOS digital TV sets will go into the market at a very low price.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 240 million, the annual sales income would be USD 1.25 billion, profit and tax would be USD 1.25 million.

FORM OF COOPERATION: Joint venture, cooperation

 

IV.35.          HIGH PRECISION MULTI-LAYER DOUBLE SIDE PRINTED CIRCUIT BOARD

PROJECT CONTENTS: To build a high precision multi-layer double side printed circuit board production line.

MARKET FORECAST: The product is one of the basic and main elements in electronics, information industry and photo-electricity industry. It has a very good development future.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 100 million, the additional annual sales income would be USD 200 million, the profit USD 75 million and the tax USD 20 million.

FORM OF COOPERATION: Joint venture

 

IV.36.          ANNUAL PRODUCTION OF 1,000 TONS OF NdFeB PERMANENT MAGNET

PROJECT CONTENTS: To expand the annual production capacity to 1,000 tons of NdFeB permanent magnet, to build more workshops and purchase more equipment.

MARKET FORECAST: The magnetic industry, especially after the NdFeB was successfully developed and produced, is in a revolution period. The growth rate in the magnetic industry in the world has been growing by 12.5% for three years on end and the trend will go on.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 23.78 million, the additional annual profit would be USD 9.78 million and the tax USD 4.31 million.

FORM OF COOPERATION: Joint venture or cooperation

 

IV.37.          EXPANSION OF THE ANNUAL CAPACITY OF COPPER FOIL COATED LAMINATED BOARD TO 2 MILLION SQUARE METERS

PROJECT CONTENT: To expand the annual production capacity of copper foil coated laminated board to 2 million square meters.

MARKET FORECAST: The copper foil coated laminated board is widely used in defense industry, telecommunications, computers, household appliances industries. With the rapid development of IT, the demands for the copper foil coated laminated board will be increasing.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 16.2 million, the additional annual sales income would be USD 30 million, and the profit USD 2.75 million.

FORM OF COOPERATION: Joint venture or sole proprietorship.

 

IV.38.          ANNUAL PRODUCTION OF 200,000 SATELLITE NAVIGATION POSITIONING RECEIVERS AND DEVELOPMENT OF IC CHIP ASSEMBLY

CONTENTS: To build board production (SMT technology), cleaning and other lines; to build an assembling line; to build an overall machine assembling and calibrating lines so as to produce annually 200,000 sets of satellite navigation positioning receivers and 400,000 sets of chip assembly and main boards

MARKET FORECAST: The satellite navigation positioning receivers can not be replaced in IT, transportation, security and defense, agriculture, fishing, rescuing, environment monitoring, natural resources exploration, etc., which means the product has a very good future. According to ABI’s estimation, the value of the products relating to GPS will reach USD 44 to 60 billion in 2005.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 15.88 million. After the designed capacity is reached, the annual sales income would be USD 250 million, profit and tax USD 26.25 million. The investment recovery period would be 2.1 years.

FORM OF COOPERATION: Joint venture

 

IV.39.          PRODUCTION LINE WITH THE ANNUAL CAPACITY OF 1.15 MILLION SETS OF ADSL MODEMS

PROJECT CONTENTS: To innovate the production line with the annual capacity of 150,000 sets of ADSL modem to expand the capacity to 1.15 million sets/year.

MARKET FORECAST: ADSL modem is an important development direction in IT domestically and internationally. It is estimated that the number of the broad band subscribers in the world will increase by 62% in the next 4 years. By May of 2005 the number in China reached 26 million and it is estimated that the number will reach 50 million in 2006. ADSL will have a very good development opportunity.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 7.5 million. After the designed capacity is reached, the annual sales income would be USD 19.75 million, and the profit USD 2.9 million. The investment recovery period (including the construction period) would be 5 years. The profit to investment ratio would be 38.5%.

 

IV.40.          ANNUAL PRODUCTION OF 100,000 SQUARE METERS OF ONE SIDE, MULTI-LAYER PCB ELECTRONIC CIRCUIT BOARD

PROJECT CONTENTS: To build a production line with the annual capacity of 100,000 square meters of one side, multi-layer PCB electronic circuit boards.

MARKET FORECAST: The good development trend for the PCB industry in 2004 will continue in 2005 and there is space for the sustainable development. The demands for the product will increase steadily as the development of the electronics industry is in its peak period.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 6.25 million. After the designed capacity is reached the annual sales income would be USD 10 million, the net profit would USD 1.38 million, the profit to investment ratio would be 22% and the investment recovery period would be 45 years.

FORM OF COOPERATION: Sole proprietorship or cooperation

 

IV.41.          FURTHER PROCESSING OF HONEY PRODUCTS

PROJECT CONTENTS: To develop high class nutritious health food and different condiments.

MARKET FORECAST: As people know more about honey health food and the demand for the products is going up rapidly, the honey products will have a bigger and bigger market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 42 million, the annual sales income would be USD 20.91 million and the profit USD 2.46 million.

FORM OF COOPERATION: Joint venture or cooperation

 

IV.42.          TEA FURTHER PROCESSING AND SERIES FUNCTIONAL FOOD DEVELOPMENT

PROJECT CONTENTS: To adopt the supercritical extracting and enzymolysis extracting technology to produce pure natural plant nutrient, natural animal nutrient, live tea, instant tea and other drinks.

MARKET FORECAST: The demand for the natural nutrient is very big both in domestic and international markets, and the market for tea drinks and other tea further processed products is getting bigger and bigger.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 13.87 million, the additional annual sales income would be USD 33.32 million, the profit USD 3.37 million, the tax USD 3.12 million and the foreign exchange earning USD 8 million.

FORM OF COOPERATION: Joint venture, or cooperation

IV.43.          FURTHER PROCESSING OF GARLICS ——(E, Z) AJOENE

PROJECT CONTENTS: To build 25,000 mu of garlic farm to produce 50 tons of (E, Z) AJOENE.

MARKET FORECAST: (E, Z) AJOENE is a health food recommended by the UNESCO. There is no such product in the domestic market but the demand for it in the international market can not be satisfied. So the market for the product will be very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 11.26 million, the additional sales income would be USD 26.25 million, the annual profit USD 5.03 million and the annual tax USD 1.6 million.

FORM OF COOPERATION: Joint venture or cooperation.

 

IV.44.          PRODUCTION LINE WITH ANNUAL CAPACITY OF 18,000 TONS CONCENTRATED KIWIFRUIT JUICE

PROJECT CONTENT: To establish the production line with the annual capacity of 18,000 tons concentrated kiwifruit juice.

MARKET ANALYSIS: Kiwifruit is treasures among fruits and has plenty of Vitamin C, 20-83 times higher than apples and 32-139 times higher than pears. Furthermore it has all kinds of aminophenol and mineral substance necessary for human being. When kiwifruit is brewed into soft drink, the nutrition of kiwifruit is kept and it tastes good. Also it could relax muscle and joint and stimulate blood circulation; make you have a good appetite and is anti-cancer. Yifeng County is abound with kiwifruit and has an upland area of 66,660,000 square meters suitable for planting kiwifruit. So raw material can be available locally.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment is USD 17.25 million with the fixed asset investment of USD 15.5 million. The annual revenue will be USD 15 million and the profit will be USD 4.75 million.

COOPERATION FORM: Joint Venture and Cooperation

 

IV.45.          ANNUAL PRODUCTION OF 4,000 TONS OF XIANBAO F6 ADDITIVE

PROJECT CONTENTS: To produce annually 4,000 tons of Xianbao F6 additive.

MARKET FORECAST: In the domestic market there is a large demand for preservation additives. The Xianbao F6 additive is a natural food preservation additive and there is no similar product in the market. So the market for the product would be very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 13.76 million, the additional annual sales income would be USD 7.25 million and the annual profit would be USD 1.55 million.

FORM OF COOPERATION: Sole proprietorship

IV.46.          PROCESSING OF CONCENTRATED ORANGE JUICE

PROJECT CONTENTS: To introduce advanced foreign production line of concentrated juice to reach an annual processing capacity of 2,500 tons of concentrated navel orange juice.

MARKET FORECAST: The existing navel orange area of Ganzhou City is 1.2 million mu. The area will reach 2 million mu in 5 years and Ganzhou City will become the biggest production zone of navel orange of China and it’s also very famous in the world. Gannan navel orange has formed a strong trademark effects as the market has expanded for several years. So it is very important to establish the processing project of navel orange and to extend the productin chains and the project will have a good future. Navel orange has been regarded as one of the main agriculture products to develop and support by Ganzhou government, the investment risks of this project is low.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 5 million, the estimated annual sales income can reach USD 12.5 million when the project is completed, profit USD 7.5 million.

FORM OF COOPERATION: Joint venture, cooperation or sole proprietorship

 

IV.47.          FURTHER PROCESSING OF CHINESE BULBOUS ONION

PROJECT CONTENTS: To build a production line with the annual capacity of 50,000 tons of Chinese bulbous onion cans.

MARKET FORECAST: Chinese bulbous onion is a kind of vegetable food which contains sugar and multiple mineral substance and has the functions of sterilizing, eliminating greasiness, stimulating the appetite and protecting skin. Xinjian county is the hometown of Chinese bulbous onion and has a long history in planting Chinese bulbous onion with high quality. At present, Chinese bulbous onion is the raw material of further processing and it is welcomed by the processing plants. The finished products are sold to other domestic provinces and more than 10 foreign countries and areas such as east Asia, southeast Asia countries. And now, the consumption of Chinese bulbous onion in Japan and Korea market is almost 20,000 tons. We are sure this product has a very good market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 8.75 million, of which the investment of fixed assets would be USD 5 million. The additional annual sales income would be USD 31 million when the project is completed, profit USD 2.6 million.

FORM OF COOPERATION: Joint venture, cooperation or sole proprietorship

 

IV.48.          DEVELOPMENT OF ESPECIAL IMMUNE MILK

PROJECT CONTENTS: To produce annually 45 tons of especial immune globin additive.

MARKET FORECAST: It has been the international developing direction of functionality milk products to inoculate especial immune antigen to milch cow by using the modern immune technology. The especial immune milk coming from milch cow can be used for human health protection and it can prevent and cure the illness. This project mainly builds antigen laboratory, immune globin production workshop, especial immune milk products production workshop and the revelant accessorial equipments to produce immune milk with the function of anti pyloric spirilla, anti wheel shape virus and anti variant streptococcus. The immune milk can prevent and cure a lot of familiar human diseases such as chronic gastric ulcer, virus diarrhea and decayed tooth and it breaks a new path for the development of foremilk.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 6 million, of which the investment of fixed assets would be USD 5 million. The annual sales income would be USD 11.25 million when the project is completed, profit USD 3 million.

FORM OF COOPERATION: Joint venture, cooperation or equity participation

 

IV.49.          LIVESTOCK AND FOWL BUTCHERING & DEEPFREEZE  PROJECT IN GANZHOU

PROJECT CONTENT: To process 1,000 processed livestock and fowl every year.

MARKET ANALYSIS: Livestock and fowl industry is leading industry in Ganzhou, including live pig, Xingguo Goose, Ningdu Chicken, Dayu Duck, Congyi Goat, which enjoy high reputation around the city and are sold best in Fujian, Guangdong, Hong Kong and Macao. We could develop the market overseas by further processing, including butchering and deepfreeze. Ganzhon City borders on developed areas, including Guangdong, Fujiang with convenient transportation and the cost is low. Therefore the project has good future.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment is USD 5 million with the fixed asset investment of USD 3.75 million. The revenue will be more than USD 18.75 million and the profit will be USD 3.1 million

COOPERATION FORM: Sole Proprietorship, Joint Venture and Cooperation

 

IV.50.          ANNUAL PRODUCTION OF 12,000 TONS OF VEGETABLE JUICE, VEGETABLE POWDER PROCESSING

PROJECT CONTENTS: To build a production line of 12,000 tons of vegetable juice and a line of 2,000 tons of vegetable powder. To purchase equipment and build new workshops.

MARKET FORECAST: Jiangxi Province is in the meeting place of Pan Pearl River, the Yangtze River and the Minjiang River, and has the geographic advantages. Jiangxi is the agriculture produce supplier to Shanghai, Guangdong, Fujian and Hong Kong and has a very large market. At present the Province can not meet the demands for vegetables. As a result, the Province is to acquire 100 mu of land to build a high standard vegetable further processing line.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 8.4 million, the additional annual sales income would be USD 22.5 million and the total profit would be USD 5.93 million. The profit to investment ratio would be 58.88%.

FORM OF COOPERATION: Joint venture or cooperation

IV.51.          GANZHOU CITY VILLAUMITE CHEMISTRY INDUSTRY BASE

PROJECT CONTENTS: Based on the rich resources o fluorite, halitum and pyrite deposit, to build in Ruijin City a plant with the annual capacity of 120 kt of ion-membrane caustic soda; a plant of 200 kt/a sulfur from pyrite plus residue heat power generating; a plant of 40kt/aAHF; a plant of 30kt/a of F22; a plant of 80 kt/a PVC; a plant of 135 kt/a of calcium carbide. In Xinguo County to build a plant of 60 kt/a AHF; a plant of 50 kt/a of F22; a plant of 100 kt/a sulfur from brim stone; a plant of 6 kt/a villaumite; and the waste water treatment plant.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 157.5 million, the annual sales income would be USD 236.25 million, the profit USD 45 million and the tax USD 25 million.

FORM OF COOPERATION: Cooperation, joint venture or sole proprietorship

 

IV.52.          ANNUAL PRODUCTION OF 6,000 TONS OF REVERSED PHASE EMULSION POLYACRYLAMIDE

PROJECT CONTENTS: To build a plant and to adopt the reversed phase emulsion technique to produce annually 6,000 tons of polyacrylamide as flocculent for waste water treatment; to build a plant and adopt micro-biological technique to produce annually 10,000 tons of 50% aqueous type polyacrylamide.

MARKET FORECAST: Polyacrylamide (PAM) is most widely used as flocculent in waste water treatment. With the awareness of environment protection is getting higher and higher in our country, the market for the flocculent polyacrylamide will become bigger and bigger soon. It is estimated that the increase in the demand would be 15%. It is also estimated that in 2005 the consumption of PAM in waste water treatment area will be 30,000 tons, of which 10,000 tons will be used in sludge treatment in urban areas. There will be a shortage of the product in the market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 13 million, the annual sales income would be USD 15 million, and the annual net profit would be USD 2.8 million.

FORM OF COOPERATION: to invest to participate in the shares.

IV.53. ANNUAL PRODUCTION OF 12,000 TONS OF MELAMINE

PROJECT CONTENTS: To build a plant and adopt the normal pressure vapor phase quenching technique to produce annually 12,000 tons of melamine.

MARKET FORECAST: Melamine is the raw material for high class plastics, coating, adhesives and assistant. In the past 8 years the consumption of melamine in China increased by more than 20%. With the development of urban areas the demand for decoration materials, doors, windows, floor boards, furniture, etc. will grow accordingly. The plywood industry will also develop very fast. Before 2010 the growth rate in the demand for melamine will reach 10%, higher than the average in the world.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 10 million, the annual sales income would be USD 12 million, and the profit would be USD 1 million.

FORM OF COOPERATION: To invest to participate.

IV.54. ANNUAL PRODUCTION OF 20,000 TONS OF N, N-DIMETHYLFORMAMIDE

PROJECT CONTENTS: To build a plant and adopt the carbon monoxide and dimethylamine technique to produce annually 20,000 tons of N, N-dimethylformamide. To build a support plant to produce 1,000 NM3/h PSA-CO and a plant to produce 20kt/a of aminomethane.

MARKET FORECAST: N, N-dimethylformamide (DMF) is a basic chemical material and an excellent organic dissolvent. With the development of petrochemical industry, chemical fiber industry and polyurethane industry, DMF will be used more widely. In recent years a big progress has been made in the production of vinyl cyanide, acrylic fiber industry and polyurethane industry, and the demand for DMF is increasing. The output of quality DMF in China can not meet the demand in the domestic market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 11 million, the annual sales income would be USD 17 million and the profit USD 3.1 million.

FORM OF COOPERATION: To invest to participate.

IV.55. ANNUAL PRODUCTION OF 20,000 TONS OF METHANOL PROTEIN

CONTENTS: To build a plant with the annual capacity of 20,000 tons of methanol protein.

MARKET FORECAST: Methanol protein is a kind of monoplast protein produced with methanol as the raw material, and is very nutritious. It contains rich amino acid. And the domestic demand is growing by more than 30%. It is estimated that by 2010 the demand would reach 3 million tons.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 19.3 million, the additional sales income would be USD 18.75 million and the profit USD 5 million.

FORM OF COOPERATION: Joint venture

 

IV.56.          FURTHER PROCESSED PRODUCTS OF ENVIRONMENT-FRIENDLY POLYVING ALCOHOL

PROJECT CONTENTS: To build production lines to produce annually 6,000 tons of polyving alcohol thin film, 5,000 tons of PVB and 3,000 tons of PVB intermediate membrane.

MARKET FORECAST: The polyving alcohol thin film is widely used for food packing, garment packing, industries and agriculture. With the enhancing of the awareness of the environment protection, the market will be bigger. PVB has very good property in fastness to light, water resisting, heat resisting, and it is widely used in construction work, auto industry, electronics industry, textile industry, light industry, aviation industry and packing industry. The product can be an import replacement.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 36.14 million, the annual sales income would be USD 41.25 million and the profit USD 10 million.

FORM OF COOPERATION: To be negotiated.

IV.57.          PRODUCTION OF 10,000 TONS OF HYDRAZINE HYDRATE

PROJECT CONTENTS: To build a production line with the annual capacity of 10,000 tons of 80% hydrazine hydrate, and build a supporting plant to produce 20,000 tons of modified AC blowing agent.

MARKET FORECAST: There are about 20 hydrazine hydrate producers in China, but most of them produce low concentration hydrazine hydrate products. Most of the high concentration (80%) hydrazine hydrate should be imported. This product can be import replacement and has a very big market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 13 million, the sales income would USD 39.42 million, profit and tax USD 4.54 million. FORM OF COOPERATION: Joint venture

 

IV.58. ANNUAL PRODUCTION OF 20,000 TONS OF A SPECIAL PHOSPHORUS

PROJECT CONTENTS: To build a production line with the annual capacity of 20,000 tons of a special phosphorus and the supporting lines of phosphorus trichloride and glycylphosphorus.

MARKET FORECAST: The domestic demand is 60,000 tons and is increasing by 10% annually.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 18.1 million, the additional annual sales income would be USD 52.5 million, profit and tax USD 10.5 million.

FORM OF COOPERATION: Joint venture

IV.59. ANNUAL PRODUCTION OF 75,000 TONS OF PHOSPHORIC ACID

PROJECT CONTENTS: To build a plant with the annual capacity of 75,000 tons of phosphoric acid.

MARKET FORECAST: The company is large sized enterprise with imported advanced technology and equipment and a key project to use the side product sulphuric acid from the Guixi Copper Smiltery. As the production scale is getting bigger and bigger, the phosphoric acid production capacity is not enough. So the project will have a good market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 10 million and the profit USD 1.72 million.

FORM OF COOPERATION: Sole proprietorship or joint venture.

IV.60. ANNUAL PRODUCTION OF 10,000 TONS OF SILICON SULFIDE RUBBER

PROJECT CONTENTS: To build a production line, workshops and supporting facilities and apply the company’s technology to produce annually 10,000 tons of silicon sulfide rubber.

MARKET FORECAST: Both the domestic and international demands for the silicon sulfide rubber, especially for those used in molds and dies, sealing and electronics industry, are increasing. The product has many advantages such as water resisting, aging resisting, heat and low temperature resisting (-60 to +200 ℃), and is widely used in molds, dies, mold stripping, casting, covering layer radio elements, television sets and medical materials.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 7.5 million, the annual sales income would be USD 25 million and the profit USD 1 million.

FORM OF COOPERATION: Technical cooperation.

IV.61.  ANNUAL PRODUCTION OF 600,000 TONS OF PTV

PROJECT CONTENTS: To build a production line with the annual capacity of 600,000 tons of PTV. It should be economy scale and the product will be for self use and selling.

MARKET FORECAST: The controlling shareholder, Jiangxi Polyester Fiber Factory, has become one of the key enterprises in the textile industry in our province through 20 year development. In 2004 the sales income ranked the fiftieth in the industry in China. The Longpeng Company build a plant with the annual capacity of 180,000 tons of dion. The end product DTY’s market share is 8%.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 212.5 million, the average annual sales income would be USD 500 million, and the sales profit would be USD 81.25 million. The investment recovery period (after tax) would be 4.33 years (including the construction period of 15 months).

FORM OF COOPERATION: Joint venture, shareholding or controlling.

IV.62. ETHENE ACETATE AND VAE EMULSION

PROJECT CONTENTS: To build a plant to produce annually 80,000 tons of VAC and 10,000 tons of VAE emulsion.

MARKET FORECAST: VAC is one of the 50 chemical materials whose output is the most in the world. It is mainly used to produce PVA, polyvinyl acetal, ethane acetate series products, copolymer of ethene and VAC, etc. These products are widely used in textile, coating, adhesives, thin film, medicine, fine chemicals, daily chemicals, etc. The consumption of VAC in the world increases by 5% annually and that in our country increases by 6.8%.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 19.95 million, the additional annual sales income would be USD 65.5 million, profit and tax USD 22.5 million.

FORM OF COOPERATION: Joint venture, cooperation or other forms.

IV.63. DEVELOPMENT OF HALITUM RESOURCES IN ZHANGSHU CITY AND CHEMICAL SERIES PRODUCTS

CONTENTS: To build a plant to produce annually 200,000 tons of ion-membrane caustic soda.

MARKET FORECAST: Salt is a necessity in daily life and an important chemical raw material. The demand for the ion-membrane caustic soda in the Jiangxi market is 150,000 tons, which means the market for it is very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 187.5 million, and annual sales income would be USD 62.5 million, the annual profit and tax would be USD 15 million. The profit to investment ratio would be 16.5%.

FORM OF COOPERATION: Sole investment, joint venture or cooperation

IV.64. PORCELAIN CLAY FURTHER PROCESSING LINE

PROJECT CONTENTS: To build a production line with the annual capacity of 10 million square meter ceramic ware for buildings.

MARKET FORECAST: With the rapid development of real estate, the demand for ceramic ware for buildings is getting bigger and bigger. The porcelain clay resources and the fuel resources in the county are abundant, which makes it possible to lower the production cost and make the products more competitive in the market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 25 million, the annual sales income would be USD 47.5 million, profit and tax USD 5.63 million.

FORM OF COOPERATION: Sole investment or joint venture

IV.65. ANNUAL PRODUCTION OF 300,000 TONS OF SULPHURIC ACID AND 160,000 TONS OF COMPOUND FERTILIZER

PROJECT CONTENTS: To build a production line with annual capacity of 300,000 tons of sulphuric acid and 160,000 tons of compound fertilizer.

MARKET FORECAST: The government lays much stress on the questions of agriculture, countryside and peasants, which has a good function to the market this year. The compound fertilizer is in great need for the increasing production of the agriculture, the better harvest of the peasants. According to the forecast, the sulphuric acid will be greatly needed in Shanghai and Zhejiang. It is estimated that each year 190,000 tons of sulphuric acid will be used up. So this project has a vast prospect.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 37.5 million, of which the investment of fixed assets would be USD 30 million. The annual sales income would be USD 50 million when the project is completed, profit USD 10 million.

FORM OF COOPERATION: Joint venture or sole proprietorship

IV.66. ANNUAL PRODUCTION OF 200,000 TONS OF DIFFERENTIAL POLYESTER FIBER

PROJECT CONTENTS: To build 4 to 6 lines to produce differential polyester fiber in Xiaolan Industrial Park of Nanchang City. MARKET FORECAST: In recent years the polyester fiber production increases by more than 15% annually and large quantity of chemical fiber is needed for the garment factories for export. So chemical fiber, especially the differential polyseter fiber, will have a good market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 50 million and the annual sales profit USD 8.3 million.

FORM OF COOPERATION: Joint venture, cooperation or other forms.

IV.67. PRODUCTION OF 180,000 TONS/YEAR OF POLYSTER FILAMENT YARN

MARKET FORECAST: In recent years the polyester fiber production increases by more than 15% annually and large quantity of chemical fiber is needed for the garment factories for export. Every year much chemical fiber is imported, so the polyseter fiber will have a good market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 42 million and the annual sales profit would be USD 11.28 million.

FORM OF COOPERATION: Joint venture, cooperation or other forms

IV.68.  PRODUCTION LINE WITH THE ANNUAL CAPACITY OF 5,000 TONS OF NONWOVEN FABRICS

CONTENTS: To build in the area of Jiujiang Chemical Fiber Factory a production line with the annual capacity of 5,000 tons of nonwoven fabrics.

MARKET FORECAST: The fabric is used as the base of the synthetic leather, disposable medical products and household products, etc. Now the total international output of the product is 24.6 tons, and the domestic output is only 30,000 tons. As the use of the product will be in more and more fields, the market will be very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The investment would be USD 12.5 million, the additional annual sales income would be USD 11.75 million, profit and tax USD 1.88 million.

FORM OF COOPERATION: To be negotiated.

IV.69. ANNUAL PRODUCTION OF 5,000 TONS OF ACETATE FILAMENT YARN

PROJECT CONTENTS: To build a plant to produce annually 5,000 tons of acetate filament yarn with the home made equipment as the main and imported technology and some imported equipment.

MARKET FORECAST: Acetate fiber is widely used and because its quality is good, does not cause any pollution during the production and it is recyclable. The annual demand for acetate fiber is more than 10,000 tons, but there are no acetate fiber producers in our country. As the price is high, only small quantity of the fiber is imported every year. And many enterprises use some substitute yarn instead. In addition about 40 million meters of acetate filament yarn shell fabrics is imported every year. So the acetate filament yarn and its fabrics will have much market potential.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 18.07 million. After the project is completed, the additional annual sales income would be USD 22.5 million, and the annual profit and tax USD 6.88 million. The investment recovery period would be about 3 years.

FORM OF COOPERATION: Sole investment

IV.70. ANNUAL PRODUCTION OF 2,000 TONS OF POLYURETHANE FIBER

PROJECT CONTENTS: To build a plant to produce annually 2,000 tons of polyurethane fiber with the home made equipment as the main and imported technology and some imported equipment.

MARKET FORECAST: The polyurethane fiber is mainly used in knitting or weaving stretching fabrics. Now the polyurethane fiber is used more and more widely and the demand can not be met. It is estimated that in the next five years the production of polyurethane fiber will grow by 15% annually and the demand will take up 16% of that in the world, which the domestic output can not satisfy.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 16.87 million, and additional annual sales income would be USD 20 million, and the annual profit USD 3.75 million. The investment recovery period would be about 4 years.

FORM OF COOPERATION: Sole investment from the foreign partner.

IV.71. BAMBOO FIBER FABRICS PROJECT

CONTENTS: To build a bamboo fiber production line to produce annually 7,000 tons of bamboo fiber, and 6,300 tons of yarn (1 kg yarn can make 6.6 square meter fabric).

MARKET FORECAST: Tonggu County is a key forestry county and a well-known bamboo producer. There is 1,548 square kilometers of bamboo on which there are about 60 million pieces of bamboo and from which 60,000 tons of the fiber can be made annually. The fabric is very good and the demand in the international market is very big.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 15 million, the sales income would be USD 27.5 million, profit and tax USD 3.75 million. The investment recovery period would be 3 years.

FORM OF COOPERATION: Sole investment or cooperation.

IV.72. ANNUAL PRODUCTION OF 200,000 TONS OF LOW QUANTITATIVE COATED PAPER

PROJECT CONTENTS: To produce FCO low quantitative coated paper. The product design: 55 – 70 g/M2, pulp content of 60%, coating quantity 7 – 10 g/M2. To produce annually 200,000 tons of low quantitative coated paper and build a 500,000 mu of fast growing tree farm as the supporting project.

MARKET FORECAST: The low quantitative coated paper is mainly used in printing magazines, samples and advertisement. It will be used in other fields. It is estimated that by 2005 the consumption of the paper in our country will reach 1 million tons, but the present annual output is only 400,000 tons. The product will have bigger market in the next 5 to 8 years. E

STIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 257.3 million (including the tree farm), the annual sales income would be USD 172.35 million and the profit would be USD 30.5 million.

FORM OF COOPERATION: Sole investment

IV.73. ANNUAL PRODUCTION OF 900,000 SETS OF HIGH CLASS PLATE TYPE FURNITURE

PROJECT CONTENTS: To build a production line with the annual capacity of 900,000 sets of high class plate type furniture.

MARKET FORECAST: According to the Federation of China Commerce and the Information Center of China, the development of furniture industry in our country is entering a best development period. The growth rate is more than 9% and the rate for the plate type furniture is bigger. With the development of the real estate, the demand for furniture will increase accordingly.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 14.46 million, the annual sales income would be USD 22.5 million, the profit would be USD 3.35 million and the tax USD 1.25 million.

FORM OF COOPERATION: Sole investment

IV.74. PORCELAIN SCIENCE AND TECHNOLOGY PARK

PROJECT CONTENTS: To produce porcelain cutting tools, porcelain bearings, porous porcelain ware, porcelain sealing materials, and some other porcelain products.

BRIEF INTRODUCTION TO THE PARK: The planned area of the park is 100,000 square kilometers. The aim of establishing the park is to follow the high international porcelain technology, commercialize the porcelain research achievements to make it a production base of high class daily porcelain wares, electronic porcelain wares, etc. It is also planned to make the park as a incubator and demonstrator. The park is close to the State Highway 206 and the Jingdezhen-Wuyuan-Huangshan Express Highway. All the infrastructure facilities in the park are completed.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 120 million. After the park is completed, the annually sales income would be USD 1.1875 billion, profit USD 250 million.

FORM OF COOPERATION: Joint venture, cooperation, sole investment.

IV.75.  THIN WALL, HIGH PORE DENSITY IOLITE HONEYCOMB CERAMICS

PROJECT CONTENTS: To build a production line with the annual capacity of 2 million cubic liters of iolite honeycomb ceramics.

MARKET FORECAST: In China there are about 20 million motor vehicles. The exhaust purifier is a good means to reduce the pollution from the vehicles. The iolite honeycomb ceramics is the key parts to make exhaust purifiers and has a very good market.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 9.7 million, the annual output value would be USD 12.5 million, and the gross profit USD 6.25 million. The investment recovery period would be 2 to 3 years.

FORM OF COOPERATION: Joint venture, sole proprietorship, cooperation

IV.76.  AUTOMOBILE PLAZA OF AUTOMOBILE COMMERCIAL CENTER AT HONGGUTAN

PROJECT CONTENTS: The total building area of the main structure of the plaza is 110,000 square meters. The area for the first stage work is about 150 mu.

MARKET FORECAST: The number of private cars is increasing rapidly and the car market is expanding. In big cities like Beijing, Shanghai, Tianjing there are comprehensive automobile plazas. The plaza is to be build in Honggutan District, the center of the politics and culture of Nanchang City, Jiangxi Province, which is located at the meeting point of Nanchang-Jiujiang, Nanchang-Zhangshu and Wenjiazhen-Houtian Highways and whose geological advantages are obvious. So it is very promising to build an automobile plaza there.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 18 million, the annual business volume would be RMB 4 billion yuan, and the investment return would reach 1 to 3 times as much as the investment.

FORM OF COOPERATION: Joint venture, cooperation or equity participation.

IV.77. CONSTRUCTION OF JIANGXI GRAIN & FOOD MARKET

PROJECT CONTENTS: It is to build a large sized grain trading market in Nanchang City.

MARKET FORECAST: Nanchang is the only provincial capital city on the Beijing-Kowloon Railway, where the water, surface and air transportation systems are very good. Nanchang is also a key commercial grain production base in the country, so the project will have a very good future.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 18.1 million. The investment for the first stage work would be USD 12.05 million. After the project is finished, the additional annual income would be USD 39 million, the profit USD 3.73 million and the tax USD 320,000 million. It is estimated that the investment can be recovered in 5 to 6 years.

FORM OF COOPERATION: Joint development

IV.78.  CONSTRUCTION OF NANCHANG MANSION

PROJECT CONTENTS: The mansion will be built by the side of the Ganjiang River, close to the municipal government building. It will be a symbol structure of the city with the integration of offices, commercial shops and hotels. The height of the building should not be lower than 150 meters. The total land area for the project is 34 mu.

MARKET FORECAST: As the municipal government of Nanchang City has moved to it, the New District of Honggutan has become the new center of politics and culture. The Radio and Television Building, the Newspaper Building, the Culture Palace, a five-star hotel, the Fifth Middle School of Nanchang City, Dalian Wandaxingcheng Building, Binjiang luxury apartment buildings, international trade center, Yiwu small commodities market are all being under construction, and all the public facilities are also being built. What mentioned above are good conditions for the mansion to be built and the functions of the mansion would be put into full play.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 40 million.

FORM OF COOPERATION: Sole proprietorship

IV.79. CONSTRUCTION OF JIANGXI (NANCHANG) LOGISTICS CENTER

PROJECT CONTENTS: To establish a logistics enterprise to handle annually 2 million tons of goods, distribute 1 million tons and trade RMB 5 billion yuan worth of goods. The total build area is to be 120,000 square meters. MARKET FORECAST: The fast economic growth rate of the Jiangxi Province, the development of industrial parks and modern manufacturing base provide a big market for the logistics for third parties.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 14.6 million, the annual logistics income would be USD 9.2 million, and the profit USD 2.1 million.

FORM OF COOPERATION: Joint venture or cooperation

IV.80.  INCREASING CAPITAL AND EXPANDING STOCK IN JIANGXI HONGDU STEEL FACTORY

INTRODUCTION OF PROJECT & PRODUCTS: Jiangxi Hongdu Steel Factory is wholly owned by Jiangxi Provincial Metallurgy Group Company and focus on producing seamless steel tube, welded steel tube and metal strip with more than ten years experience and technology in the field. The factory hasn’t made loss for 28 years running. The factory has the capacity of 594,000 tons, including 250,000 tons seamless steel tube and 200,000 tons hot rolled steel strip. The factory has obtained ISO9002 quality certification and IS010012-1 measure certification. The factory has had the total asset of RMB 936 million, debts of RMB 748 million, net assets of RMB 184 million by the end of 2005. The output of steel has been 386,000 tons, including seamless steel tube of 171,000 tons, hot rolled narrow steel strip of 112,000 tons, welded steel tube of 80,000 tons, cold rolled narrow steel strip of 23,000 tons. The annual revenue has reached to RMB 1.65 billion.

COOPERATION FORM AND DEVELOPMENT PLAN: We plan to introduce strategic investors to establish a new joint venture by increasing capital and expanding stock. We will improve the sort, quality and performance of the seamless steel tube upon taking full use of the exiting equipment and perfecting the structure of products so as to have an annual capacity of 1,000,000 tons steel and 500,000 tons special seamless steel tube and establish the base of high-grade seamless steel tube.

IV.81.  RESTRUCTURING ON CABLE SUBSIDIARY OF JIANGXI LIANCHUANGPHOTOELECTRICITY TECHNOLOGY SHARE CO. LTD.

PROJECT CONTENT: We plan to introduce strategic investors to restructure Cable Subsidiary so as to establish Jiangxi Lianchuang Cable Share Co. Ltd. with diversified investment.

ENTERPRISE INTRODUCTION: Jiangxi Liangchuang Cable subsidiary specializes in coaxial-cable, optical fibre cable, data cable and special communication cable and is one of biggest base of coaxial-cable in China. It has assets of RMB 360 million, land of 219,978 square meters and annual revenue of RMB 200 million. The main products are coaxial-cable, optical fibre cable and data cable used for cable TV, mobile communication and Broad Band. The products have a good future.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment is USD 50 million. The annual revenue will increase to RMB 500 million from RMB 260 million in 5 years. The average rate of the profit is more than 12% and payback period will be 7.5 year.

COOPERATION FORM: Cooperative management with diversified investment

IV.82. TRANSFERRING LAND OWNERSHIP OF JIANGXI JINGHUA ELECTRON CO.LTD

PROJECT CONTENT: To transfer the ownership of 199,980 square meters land within the company for business.

MARKET ANALYSIS: The land has been planed for business and lies to the east of the city. It is near Changjiang Square and has convenient transportation, so it is suitable for business.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment on purchasing the ownership of the land is USD 13 million. The estimated profit rate is 20%.

COPERATION FORM: Transferring the ownership totally

IV.83.  TRANSFERRING LAND OWNERSHIP OF JIANGXI HONGSENG ELECTRON CO.LTD

PROJECT CONTENT: To transfer the ownership of 249,975 square meters land within the company for business.

ENTERPRISE INTRODUCTION: The land has been planed for business. The land lies to the southwest of the Shengan Mountain, east to Ganjiang, south to He River and has convenient transportation. Shengan Mountain is called ‘Little Lushan’ with good environment and rich forest. If the land is developed for business, the future is good. Ji’an is a famous cultural city with long history, including Luling Culture, Jingang Culture and Hakka Culture. So the land could be developed as the base of culture.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment on purchasing the ownership of the land is USD 8 million. The estimated rate of the profit is 20%.

COPERATION FORM: Transfer of land ownership

IV.84. RESTRUCTURING ON JIANGXI PHARMACY LIABILITY CO. LTD.

ENTERPRISE INTRODUCTION: Jiangxi Pharmacy Co. Ltd. was founded in 1950 with the registered capital of RMB 113 million and has 2,100 staff, including 400 technicians, 35 certified pharmacists. The company is a large-sized comprehensive pharmacy enterprise with high technology and can produce more than 300 kinds of medicine, including western medicine material, injection, tablet, capsule, transfusion and granules. The company is approved to do import and export transaction by itself. The company spent RMB 150 million on moving to Xiaolan Industry Park from the urban on June, 2006 and established the production line of frozen powder and injection preparation etc. Moreover the production line passed GMP certification. The production of material medicine focuses on fermentation antibiotics and has technologic superiority on amioglyoside antibiotics.

PROJECT CONTENT: The company takes the exiting equipment, workshop and products as share and investors take cash as share to establish a new liability Co. Ltd. We will work closely to develop medicine industry and promote the development of the company.

INVESTMENT & ESTIMATED ECONOMIC BENEFIT: The total investment is USD 10 million. The annual revenue will be USD 37.5 million and the profit will be USD 2.75 million.

COOPERATION FORM: Unlimited and could be controlled by investors

IV.85. RESTRUCTURING ON JIANGXI GUO YAO PHARMACEUTICAL LIMITED LIABILITY COMPANY

PROJECT CONTENTS: To establish a limited liability company with partners. Jiangxi Guo Yao Pharmaceutical Limited Liability Company will participate with the existing workshops, equipment, products and other intangible assets; the partner should participate with cash.

MARKET FORECAST: Jiangxi Guo Yao Pharmaceutical Limited Liability company has a registered capital of RMB 170.87 million yuan, the total asset value of RMB 465 million yuan, and the net asset value of RMB 165 million yuan. The company produces about 140 products in the four series of technicals of west medicine, traditional Chinese patent medicine, west medicine and food additives. The products, terramycin and lincomycinum, have passed the American FDA tests for many times. Ferment cordyceps sinensis fungi powder is the first Class I new Chinese Patent medicine and has received the patent. The company received the GMP certificate from the National Government at the end of June of 2004 after it moved from the urban area and renovated based on the GMP standards.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 20 million, the annual sales income would be USD 50 million, profit and tax USD 8 million.

FORM OF COOPERATION: Any forms.

IV.86. MOVEMENT FROM URBAN AREA TO THE INDUSTRIAL PARK, TECHNICAL INNOVATION IN JIANGXI AIR-COMPRESSOR MANUFACTURING COMPANY, LTD.

PROJECT CONTENTS: The Company will be moved from the urban area into the industrial park. After the movement the company is going to produce annually 2,100 sets of middle and large sized air-compressors, 250 sets of high speed folio offset presses, 15,000 tons of cast iron parts (grey iron, ball iron) and 5,000 tons of pressure containers.

MARKET FORECAST: Air-compressors are widely used in mining, petrochemical industry, power stations, iron and steel industry, food industry, etc. Offset presses, especially the high speed folio printing equipment, are made by less than five factories in China. With the coming of the information age, the demand for the printed materials tends to go up. It is a little bit difficult to produce pressure containers and a license is needed to produce the containers. The company is qualified to produce Class I and Class II pressure containers. Based on the platform, many pressure series products can be developed.

ESTIMATED INVESTMENT AND ECONOMIC BENEFIT: The total investment would be USD 38.75 million. When the designed capacity is reached, the annual sales income would be USD 118.75 million, profit USD 8.75 million and tax USD 7.75 million. The investment recovery period would be 5.75 years.

FORM OF COOPERATION: Cooperation or joint venture

IV.87.          TRANSFERRING 28% OF SHARES OF GUIXI FERTILIZER FACTORY

PROJECT CONTENT: To transfer 28% of shares of Guixi Fertilizer Factory

ENTERPRISE INTRODUCTION: Guixi Fertilizer Liability Co. Ltd was founded in 1991 with the registered capital of RMB 910 million and has 2,300 staff. The company has annual capacity of 120,000 tons phosphoric acid, 550,000 tons phosphoric ammonium and nitrogenous fertilizer, 6,000 tons aluminum fluoride, 200,000 tons retarder for ardealite cement with the byproduct of ardealite, fluosilicic acid, ,calcium hydrogen phosphate, sodium silicofluoride and so on. The revenue in 2005 was RMB 900 million and the revenue in 2006 will reach to RMB 1 billion. The shareholders are as follow: China Xinda Asset Management Company (61.8%), Jiangxi Investment Group Company (27.8%), China Haohua Chemical Industry Group General Company (5.9%), Jiangxi Chemical industry Group General Company (4.5%)

IV.88.  TRANSFER RING 29% OF SHARES OF JINGDEZHEN POWER PLANT

PROJECT CONTENT: Transferring 29% of shares of Jingdezhen Power Plant

ENTERPRISE INTRODUCTION: Jingdezhen Power Plant has 1,600 staff with the registered capital of RMB 88.28 million. The plant has finished the first phase construction, the second phase construction and the third phase construction in 1976, 1994, 2003 respectively. The generation capacity is 500MW at present and the power generation in 2005 was 2,187,000,000 kilowatt-hours. The approved price of power is RMB 0.37/kilowatt-hour. The shareholders are as follow: Jiangxi Power Investment Group (64.65%), Jiangxi Investment Group Company (35.35%)

IV.89.  TRANSFER RING 29% OF SHARES OF FENGYI  POWER PLANT (FIRST PHASE)

PROJECT CONTENT: Transferring 30% of shares of Fengyi Power Plant (First Phase)

ENTERPRISE INTRODUCTION: Fengyi Power Plant has 700 staff with the registered capital of RMB 50 million. The plant has a 100MW coal turbine generating set with circulating fluid bed boiler which is environment-protection at present and could apply to the national favorable tax policy. The power generation in 2005 was 554,000,000 kilowatt-hours. The approved price of power is RMB 0.47/kilowatt-hour at present. The shareholders are as follow: Jiangxi Power Investment Group (70%), Jiangxi Investment Group Company (30%)

IV.90. TRANSFER RING 60% OF SHARES OF XINYU POWER PLANT

PROJECT CONTENT: Transferring 29% of shares of Xinyu Power Plant

ENTERPRISE INTRODUCTION: Xinyu Power Plant has 1,320 staff with the registered capital of RMB 158 million. The plant has two 200MW coal turbine generating sets, which began to performance in 1995 and in 1996 respectively. The power generation in 2005 was 1,900,000,000 kilowatt-hours. The approved price of power is RMB 0.39/kilowatt-hour. The shareholders are as follow: Jiangxi Investment Group Company (60%), Power Service Group (managed by Jiangxi Power Company under authorization) (40%)

IV.91.  TRANSFERRING 56% OF SHARES OF JIANGXI  ZHENGXIN PHARMACY LIABILITY CO. LTD.

PROJECT CONTENT: Transferring 56% of shares of Jiangxi Zhengxin Pharmacy Liability Co. Ltd.

ENTERPRISE INTRODUCTION: Jiangxi Zhengxin Pharmacy Liability Co. Ltd. has 500 staff with the registered capacity of RMB 33 million and has a preliminary treatment workshop of traditional Chinese medicinal material, an abstraction workshop, a workshop of comprehensive preparation and the related warehouse, quality control building and office building. The company has 54 kinds of products, including anti-cervicits tablet and has an annual capacity of 1,000,000,000 tablets, 200,000,000 capsules, 3,000,000, 5,000,000 packages of water pill, 50,000,000 honeydewed pills, 7,000,000 bottles of syrup, 2,000,000 bottles of tinctura, 5,000,000 pieces of oral liquid. The shareholders are as follow: Jiangxi Ganneng Share Co. Ltd. (20%), Pingxiang Investment Company (15%), Pingxiang Guangda Establishment Co. Ltd.(9%)