Investment Promotion Projects of Hubei by tyndale

VIEWS: 458 PAGES: 226

									         Investment Promotion Projects of Hubei
                 Province, P. R. China



                                Contents

Key Investment Promotion Projects


I. Optical-electronic Information
II. Machinery & Auto-parts
III. Agriculture
IV. Chemical & Medical Industry
V. Light Industry and Textile
VI. Mining & Metallurgy
VII. Logistics
VIII.Tourism
IX. Construction Material
X.Infrastructure
XI. Environmental Protection




                                    1
Optical-electronic Information
                                    LED Chips Project

     I. Background information of project owner
     Optical Valley Venture Capital Co., Ltd. is a large-scale nongovernmental investment
organization with rich experience in investment and technology industry. The registered capital of
the company is RMB 101million. In the future 10 years, the Company will carry out the LED
indstury chain investment plan to integrate the technology, capital, equipment and talents in the
world, to construct an industry chain of LED chips, crystal grain, packaging, and research and
development of LED products, and to cultivate outstanding LED enterprises. As the main
investment organization of the LED industry of the Optical Valley, the Company sticks to the idea
of ―Not to have but to make stay‖, and prvides cooperation opportunities and services to
enterprises and investors engaged in LED industry.
     II. Projet description
     Optical Valley Venture Capital Co., Ltd. plans to incorporate a highly luminous LED chips
manufacturing company with the tentative name, Wuhan Optical Valley Jingyuan Co., Ltd.,
together with investors and the technology and management team with the share capital being
US$ 40 million. It is intended to construct 1 GaN, 1 AIGaInP LED Epi-wafers production line,
and a crystal grain production line. The annual output of highly luminous GaN LED epi-wafers is
90,000, AlGaInP LED epi-wafers 90,000, and GaN LED crystal grain 1.92 billion (with 1.2mil as
the calculation basis), AlGaInP LED3.6 billion (with 8 mil as the calculation basis).
     The project has been approved by the government authority and has been initiated. The
contract for the 133, 332 m2 (200 mou) land for the project has been signed. The project has been
listed in the key projects of Wuhan in 2005.
     III. Total investment
     The total investment is US $ 50,000,000, among which US $ 30,000, 000 is used for
equipment, US $ 10,000, 000 for workshops and supporting facilities, and US $ 10,000,000 is
reserved as circulating capital. US $ 40,000,000 is contributed by shareholders and US
$ 10,000,000 is borrowed from the bank.
     IV. Prospect forecasting
     The construction period for the project is 2 years. The annual revenue is predicted to be US
$ 42,240,000 after the production goal is reached, and the after-tax profit is US $ 16, 160,000.

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     The profit to investment rate is 40.4%, and the investment recovery period is 3.4 years.
     V. Cooperation mode
     Contribution by shareholders is US $ 20,000,000, and the amount of contribution by an
individual shareholder shall be no less than US $ 5,000,000.
     VI. Contact information
     Address: 23 Floor, Side B, NO. 628, Wuluo Road, Wuchang, Wuhan
     Postal Code: 430070
     Tel:+86-27-87640833 E-MAIL:wookinwj@gmail.com
     Project manager:Wu Jun




                                                3
                     Highly Efficient Cost-effective Solar Cell

     I. Background information of project owner
     Wuhan Rixin Technology Co., Ltd., located in China Optical Valley, specializes in the
research and development, design, production, installation and sale of solar energy photovoltaic
products. The Company has passed the ISO9001: 2000 in April 2003.
     II. Project description
     The cost for this highly efficient cost-effective solar cell is about 1/2~1/3 of crystalline
silicon solar cells (the conversion efficiency is about 10% to 12%). It involves the following
technologies: amorphous silicon thin film cell production technology, material production
technology for high efficiency solar cell with spectral absorptive characteristics, production
technology for solid state dye-sensitized solar cells.
     III. Background information
     According to the demand of the market and customers home and abroad, the Company has
developed RX series amorphous silicon ASI components, hetero solar cell component,
broad-spectrum solar cell component, anti-hot-spot-effect components, which have passed the
appraisal of experts appointed by Hubei Provincial Science and Technology Department in April
2005. At the same time, the Company on the basis of LED lamp patent and controller technology
developed ―solar lighting system‖, which has passed the appraisal of experts appointed by Hubei
Provincial Science and Technology Department, and has obtained 6 national patent rights.
     IV. Prospect forecasting
     Cost-effective solar cell and high efficiency solar cell with spectral absorptive characteristics
are products with promising future in China. They can lower the generating cost, and relieve the
problem of too much reliance on petroleum, and therefore can bring much socioeconomic benefit.
     V. Cooperation mode
     Cooperation in technology, establishing joint venture.
     VI. Contact information
         Wuhan Rixin Technology Co., Ltd.
         No. 6-16, SBI Chuangye Street, Wuhan Eastlake New Technology Development Zone
         Tel:027-87801237, 13016492082
         Contact person:Feng Chang
         Email:zong@rixinsolar.com

                                                   4
                                         LED Project

     I. Significance of the project and status quo home and abroad of research on LED
    Illumination by semiconductor is one of the hi-tech field of the most promising prospect in the
21st century. As the new type high efficiency solid state light source, semi-conductor is of long
service life, rich color, energy saving, safe, environmentally friendly, and small in size. It is
another leap-forward in illumination after incandescent lamp and fluorescent lamp, and leads to
another revolution in illumination. Some experts in China predict that from 2005 to 2015 in China,
the illumination by semiconductor can save 400 billion kilowatt hour, saving 260 billion Yuan,
creating output value of RMB 150 billion Yuan, and providing jobs for 1 million people. By 2015,
the power saved by illumination by semiconductor will be more than the power generated by the
Three Gorges Power Plant. Therefore, the illumination by semiconductor not only leads to the
revolution in illumination but also can save energy and contributes to the sustainable development
of the society.
    The illumination by semi-conductor can be used for illumination, decoration, automobiles,
traffic signal light, background display, large screen, illumination for special work, military use,
tourism and light industry products. The replacement of traditional incandescent lamp and
fluorescent lamp by semiconductor is an irreversible tendency as the replacement of electron tube
by transistor.
     II. Production scale
     The project is to be carried out in two stages. In the first stage, two sets installations with an
annual output of 40,000 dies and 500KK LED chips will be set up. In the second stage, the
production can be expanded according to the demand of the market and the situation of the
company.
     III. Workshops, staff and construction period
     1. Land and workshops
     50-100 mu land is needed for workshops and offices. The workshops are ultraclean for
different technologies of about 500 to 1,000 square meters. The offices will be built according to
actual need.
     2. Staff: 20 managerial staff, 20 technicians, and 100 workers.
     3. Construction period: 3-5 months for workshops, 6 months for procurement of equipment
(which can be realized simultaneously with the construction of workshops), 3 months for

                                                  5
debuging.
     IV. Major investment
   RMB 81,500,000 for equipment, RMB 30,000,000 for workshops and land, RMB 5000,000
for contingency, totaling RMB 116,500,000 Yuan.
     V. Benefit analysis
   The annual output is assumed to be 500kk, and the unit cost is 0.1, and the total cost is RMB
50,000,000 yuan.
   The current market price is as follows:
Low grade(ordinary white light)unit price 0.12-0.15 Yuan              average 0.135Yuan
Medium grade(backlight, white light) Unit price 0.25-0.30 Yuan                Average 0.275 Yuan
Top grade(Display, white light)Unit price 0.4-0.5 Yuan                 Average 0.45 Yuan
Provided the low grade products account for 20%, medium grade 70% and top grade 10%,the
annual revenue is 132 million Yuan.
     The pretax profit in a year is RMB 82 million.
     Considering that the goal for the product quality and output cannot be reached until a certain
period of time, the recovery of capital takes about 2 to 2.5 years.
     VI. Contact information
       Yichang Investment Promotion Bureau
       Contact person:Yang Munan Zhao Yong
       Tel:0717-6256751         13177090861
       Fax:0717-6256751
       Website: http://www.yichanginvest.gov.cn
       E-mail:yczyonggg@163.com
       Address: No. 13, Hongxing Road, Yichang City
       Postal Code:443400




                                                  6
                         New Type Energy Saving LED Products

     I. Project description
     1. Content and scale: annual production of top grade ultra bright LED 10 billion, and
development of LED automobile lamps, backlight, landscape illumination, decoration lamps,
white light lamps for illuminations;
     2. Nature: expansion of existing plants (it is a project encouraged by the state);
     3. Address:Hubei Zigui Economic Development Zone;
     4. Construction period:10 months.
     II. Market analysis
     1. Analysis of supply and demand: With unique advantages (cold illuminating source, high
luminance, long service life, display with rich colors and quick response), it is widely used for
traffic signal, auto indicating lamps, display screen, backlight and illumination. At present, LED is
omnipresent. LED has become an important part in electronic information and new technology.
According to statistics, the demand for LED in 2002 is 50 billion. The annual output of it in China
now is no more than 20 billion. Experts predict that the LED will increase at a rate of 24.6%.
     2. Analysis of demand and supply of the current market:with the further development of
LED chip material, LED will soon replace the now widely used incandescent lamps with its
characteristics of being safe, energy saving and bright.
     In June 2002, the state initiated the ―State Illumination by Semiconductor‖ project, and
initiated the construction of industrialization base. With the promotion of LED illumination
project by the state, the market will spread quickly from the coastal areas to the whole country. It
is predicted that by 2015, LED illumination products will replace 30% to 50% of the currently
common illumination products. With the economic globalization and the development of LED
industry, the demand on LED products will also increase. Therefore the LED products and energy
saving products are of promising future.
     LED products bring huge benefits, added value and social benefits. What’s more there are
few enterprises with coordinated processes of pressing, plating and encapsulating. Therefore, it’s
feasible to expand the production line into one with an annual output of 10 billion LED and
develop energy saving illuminating products.
     III. Existing conditions
     1. Transport: it is located in Hubei Zigui Economic Development Zone. 40 kilometers away

                                                  7
from the railway station and the customhouse, 48 kilometers away from the Three Gorges
International Airport, 42 kilometers away from the Hu-Rong Expressway, it is of convenient
transport;
     2. Supply of raw material and cost: the project owner has found the supply channels with
relatively low price for chip die, metal strips and encapsulating pastern, etc. Some raw materials
are available in Yichang;
     3. Cost of power: Hubei Zigui Economic Development Zone is close to the Three Gorges
Dam. Therefore, the supply of power and water is adequate. There is preferential policy for the
direct supply of power. The electricity price is 0.10 Yuan lower than that for industry;
     4. Cost of labor: Zigui is a county with a lot of resettlers with large population and few land;
therefore it is rich in labor force which is of low cost.
     5. Environment: LED products are environmentally friendly and the castoffs are recyclable
and pollution free.
     IV. Investment estimation and contribution
     1. Investment and the composition: the investment on expansion is RMB 80,000,000 Yuan,
among which RMB 40,000,000 Yuan is used for equipment, RMB 20,000,000 Yuan is used for
civil engineering, and RMB 20,000,000 for circulating fund.
     2. Ways of contribution: RMB 60,000,000 is from investors, and 20,000,000 is from the
company and local investors.
     V. Social and economic benefit
     After the completion of the project, the annual revenue is about RMB 180,000,000 Yuan, and
the newly increased pre-tax profit is RMB 30,000,000 Yuan. The project can provide jobs for more
than 1,500 people. The recovery period is about 5 to 6 years.
     VI. Project progress
     The Project Proposal and Feasibility Report have been finished.
     VII. Cooperation mode
     Establishing joint venture, cooperative venture, sole investment.
     VIII. Introduction to the project owner
     Zigui Economic Development Zone now has two LED manufacturing enterprises (MuLinSen
Electronics Co., Ltd. and Jiate Technology Co., Ltd.) with employees more than 3,000, and has
developed 5 series more than 100 kinds of products, the annual output capacity is 3,000,000,000
LED. The fixed asset is about RMB 30,000,000 yuan. The fund is of fine structure. The pre-tax
profit in recent three years is about 10 million. It is of fine socio-economic benefit. It is planned to

                                                    8
increase the output capacity to 10 billion LED in the year 2008, further develop the application of
LED, and gradually establish optical-electronic industry cluster.
     IX. Contact information
       Yichang Investment Promotion Bureau
       Contact person:Yang Munan Zhao Yong
       Tel:0717-6256751         13177090861
       Fax:0717-6256751
       Website: http://www.yichanginvest.gov.cn
       E-mail:yczyonggg@163.com
       Address:No. 13, Hongxing Road, Yichang City
       Postal code:443400




                                                 9
    Technology Improvement for Optical & Electronic Components

       I.Background information
       The State-Run Hubei Huazhong Precision Instrument Factory under China North
Industries Group Corporation, is a hi-tech enterprise engaged in the production of and research on
laser ranging, glimmer/infrared night vision, auto lamps and optical components. The production
line for optical components improved in the 30 years’ research, design, and production has the
capacity for the design, processing, and production of hi-tech optical components. It has 236
complete sets of processing installations for optical components.
       II. Market analysis
       With the fast development of optical communication techniques, the optical devices as a
necessary part of optical communication have been developed at an unprecedented speed.
According to statistics of relevant authorities, the annual demand on optical passive devices
reaches 30,000,000, and the annual demand on optical components reaches 100,000,000; besides,
the demand on laser read-write head, micro lens, optical grating and aspherical mirrors for CCD
taking lens will be more than 54,000,000; in total the domestic demand on optical devices will be
more than 15, 400,000. Therefore, the project is of promising prospect.
       III. Project scale and project description
       Some core equipment for research and production will be introduced, and the exiting
production line for optical components will undergo technological reformation so as to improve
research and development capacity for high technology and increase the annual production
capacity to 30,000,000 optical & electronic components.
       IV. Total investment and the composition
       It is estimated that the total investment is US $ 20,000,000, among which US $ 12,000,000
is used for fixed asset like land acquisition, construction, purchasing and installation of equipment
and devices, and other expenses, and US $ 8,000,000 is reserved for circulating fund.
       V. Benefit forecasting
       After the said goal is reached, the annual sales revenue is about RMB 30,000,000 Yuan,
and the profit margin is 22.4%. The recovery period is 3.5 years.
       VI. Cooperation mode
          Joint venture, cooperative venture and other mode.
       VII. Project progress

                                                 10
 The project has been initiated, and the feasibility report has been finished.
       VIII. Contact information
       Contact unit:Xiaogan Municipal Bureau of Commerce (Xiaogan Investment Promotion
Bureau)
    Contact person: Yan Dashuang, Deng Ling
    Tel: (0712)2832556
    Fax: (0712)2822944
    Email: xgshangwu@163.com
    Website:http://www.xgswj.com; http://www.xgswj.cn
    Address: No. 36, Chengzhan Road, Xiaogan City, Hubei Province
    Postal code: 432000




                                                  11
       Production Line for Key Components of Storage Optical System

     I. Background information
    Huazhong Photoelectric Science and Technology Ltd. under China North Industries Group
Corporation is a hi-tech enterprise specializing in optical observation, laser ranging, photoelectric
angle measuring, laser night vision, CCD camera and tracing, GPS positioning and guiding, image
processing, and data fusion. The Company has now 2,000 employees. It has production lines for
products for laser ranging, night vison and infrared products, production lines for automobile and
motor-vehicle lights conforming to ECE standard, and production lines for dial sight for guns and
telescopes. It is listed as the top 100 enterprises and top 50 enterprises in mechanical
manufacturing industry in Hubei Province.
    In 2005, the gross industrial output value is RMB 230,000,000 Yuan, the sales revenue RMB
220,000,000 Yuan, gross profit RMB 6,010,000 Yuan, and tax RMB 4, 570,000 Yuan.
     II. Market analysis
     The products and technology are of advanced level in China. The supply of the products falls
short of demand.
     III. Project scale and content
     It is planned to introduce fund for the project of key components of the storage optical system
of an annual production capacity of 60,000,000 spectroscopes, optical gratings and reflectors
respectively.
     IV. Total investment and the composition
     The total investment is US $ 15,000,000.
     V. Benefit forecasting
       It is estimated that after reaching the production goal, the annual sales revenue is US $ 12,
000,000. The construction period is 2 years.
     VI. Cooperation mode
     Establishing joint venture, cooperative venture and others.
     VII. Project progress
     The Project has been initiated and the feasibility report has been finished.
     VIII. Contact information
     Contact unit:Xiaogan Municipal Bureau of Commerce (Xiaogan Investment Promotion
Bureau)

                                                 12
Contact person: Yan Dashuang, Deng Ling
Tel: (0712)2832556
Fax: (0712)2822944
Email: xgshangwu@163.com
Website:http://www.xgswj.com; http://www.xgswj.cn
Address: No. 36, Chengzhan Road, Xiaogan City, Hubei Province
Postal code: 432000




                                      13
        Expansion of Production Lines for Electronic Components

       I. Background information
       Xiaogan Litai Electronic Fittings Factory specializes in the production of electronic
components. It has 320 employees, total assets of RMB 11,520,000 Yuan. The major product of
the factory is electronic coil. In 2005, the sales revenue is RMB 18,630,000 Yuan, and profit
3,480000 Yuan. The demand for the product exceeds the supply.
       II. Project scale and content
       It is planned to expand and reconstsruct the production lines, and to newly construct 32
production lines for miniature transformer and filters, etc.
       III. Total investment and the composition
       It is planned to inject capital US $ 20,000,000, which is exclusively from investors.
       IV. Benefit forecasting
       After the completion of the project, the annual sales revenue is US 120,000,000. The
construction period is 2 years.
       V. Cooperation mode
      Joint venture, cooperative venture, sole investment.
       VI. Project progress
       The project has been approved by the government authority and has been initiated. The
feasibility report has been finished.
       VII. Contact information
       Contact unit:Xiaogan Municipal Bureau of Commerce (Xiaogan Investment Promotion
Bureau)
     Contact person: Yan Dashuang, Deng Ling
     Tel: (0712)2832556
     Fax: (0712)2822944
     Email: xgshangwu@163.com
     Website:http://www.xgswj.com; http://www.xgswj.cn
     Address: No. 36, Chengzhan Road, Xiaogan City, Hubei Province
     Postal code: 432000




                                                  14
                       SMD Production Line Expansion Project

     I. Background information
     New type SMT mini electronic components are the important development direction of
electronic information industry. The products under this project are new type electronic
components which are encouraged by the state industrial policy, and therefore are of promising
future. With advanced production technology and reliable resource of fund, the project is of great
socioeconomic benefit and promising prospect.
     The market for the product is growing, and with the demand on the products in the
communication field, the demand on the products is increasing. The products are intended to
replace exported products and cater to the domestic demand. The market is of great potential.
     The project is intended to expand the existing production lines and carry out technology
reformation to make full use of the existing equipment and conditions and thus to minimize
investment, and to introduce key imported equipment and apparatus. The production capacity
would reach 60000,000 SMD 0503 and SMD3025 products. The technical proposal is feasible.
     Hubei Dongguang Electronics Co., Ltd. established the Technology Center in 1995 to
develop and research on new type quartz crystal frequency components. In 1997, the Center is
approved as ―Hubei Provine Enterprise Technology Center‖. The Company has 269 specialized
technical personnel, accounting of 38% of the employees of the company, and 106 technical
personnel engaging in reseach & development and quality contol, accounting for 15% of the
employees. 15 senior engineers or staff of at least college education engage in development of
products in the Technogy Center.
     The Dongguang Electronics Co, Ltd. strictly observes relevant laws like Company Law, and
improves the management mechanism and system according to the requirement of the modern
enterprise system. According to the standard of ISO9000, the company tries out 6 SIGMA and
carries out CPK to monitor the handling of customer’s complaints. The quality management
system is operating smoothly.
     II. Market analysis
     According to the prediction of the Electronic Industries Association of Japan, the demand on
quartz crystal components is 7.6 billion (not including tuning fork crystal unit) in 2004, 47% more
than that of 2000. It is predicted that the demand on quartz crystal components in 2008 will be
about 11.2 billion, provided the growth rate is maintained.

                                                 15
         In 2004, only 50% of quartz crystal components using chips. The annual increase rate of
components using chips is 7%. In 2005, the demand on SMD quartz crystal component is about
4.5 billion. By 2008, the components using chips will increase to 65% (in Japan, it is 63.8% in the
first half of 2005). The demand on SMD quartz crystal components will be more than 7 billion in
2008.
         What’s more, according to the prediction of China Electronic Components Association, in
2005, the domestic demand on crystal components is more than 1.7 billion, among which the
demand on SMD is about 0.5 billion. In 2008, the demand on crytal components will reach 2.5
billion, among which the demand on SMD is about 1.0 billion.
         Therefore, the demand on SMD is increasing rapidly. SMD products are gradually
replacing DIP products. The miniaturization of SMD products is an inevitable tendency.
         III. Project scale and content
         It is planned to newly construct clarification workshops, to purchase from abroad core
equipment, and advanced domestic equipment, and to establish 3 automoatic production line with
annual production capacity of 60,000,000 SMD 0503 and SMD 3025 quartz crstyal components,
and 2 semi-automatic production line with annual production capacity of 24000,000 SMD 0503
products, and 36000,000 SMD 3025 products.
        IV. Total investment and the composition
        The total investment on the project is RMB 80,988,000 Yuan, among which 62,988,000
Yuan is for fixed assets, and 18000,000 Yuan for circulating fund.
        V. Benefit forecasting
        After the completion of preparation, and reaching the production goal, the newly increased
sales revenue is RMB 12,742,000 Yuan, and the newly increased pre-tax profit is RMB
25,656,800 Yuan. The recovery period is about 3.63 years, the break-even point being 40.7%, and
the internal rate of return is 23%. The project is therefore of high earning power and great risk
resitance capacity.
        VI. Cooperation mode
        Cooperative venture, establishing joint venture, etc, subject to discussion.
        VII. Project progress
        The feasibility report has been finished.
        VIII. Contact information: Development Department, Hubei Dongguang Electronics Co.,
Ltd.
        Contact person:Zhou Daping         Ning Dongxian

                                                    16
Tel:0724-2358918      Fax:0724-2358899
E-mail:zdp@chinadongguang.com, ningdongxian@hotmail.com
Address:No. 1, Bailongshan New Village, Jingmen City, Hubei Province
Postal code: 448000
http://www.chinadongguang.com




                                      17
           Embeded Module Home-Use Network Control Project

      I. Back information
     Hubei Jingzhou WER Embeded System Company is a hi-tech company specializing in the
research on and development of embedded digital products, digital communication products,
digital control products and household network products. 90% of the staff of the company are
specialized technical personnel with intermediate or senior professional titles. The company has
close cooperation with universities like Tsinghua University and the National University of
Defense Technology; has invited academicians from Chinese Academy of Sciences and New York
Academy of Science; has established partnership with hi-tech companies in IT industry; and also
has established plan for cooperative development of embedded products and sharing of talents
with IEEE International Digital Technology and Embedment Organization. The company sticks to
the idea of ―Network is computer‖, ―Embeded system is computer‖, ―Self-adaptive network sensor
is computer‖of SUN which is famous in IT industry, traces and learns advanced technologies
home and abroad, and is now in the leading position in high technology.
     II. Market analysis
     The products are used in home and offices, and are of great market potential and high rate of
return.
      III. Project scale and content
     The project relies on the patents of independent intellectual property rights; on the basis of
embedded modular network control platform based on multi-procotol, constructs the product
framework system, hardware and software framework. The company has developed a clear,
reliable, cost-effective and competitive technology development and manufacturing mode. The
products of the company are used for ―future digital household appliances‖, ―future digital TV‖
and ―future computers‖, and are of advanced way of design, development and production. The
project is intended for the production of home network control module. The project could bring
about many patent rights, and bring out technical standards for relevant fields.
      IV. Total investment and the composition
      The total investment is RMB 120 million Yuan.
      V. Cooperation mode
      Joint venture, bank loan, and establishing stock company.
      VI. Project progress

                                                 18
      The key technology has obtained national patent, and is listed in Key New Product
Development Plan.
     VII. Contact information
     Contact Person:Liu Hengchun
     Tel:0716-8260644,4300016,13593868965
     Postal code:434000
     Fax:0716-4107896
     E-mail:wer818200@yahoo.com.cn




                                          19
Machine & Auto-parts
               Project of Intelligent Vehicle Information System

     I. Project background
     Vehicle computer, based on embedded hardware platform and embedded operating system
and adopting modular design, provides five application modules, i.e. GPS, multimedia, wireless
online and mobile office, live communication server, and active security system; provides various
functions including vehicle positioning, security and theft protection, wireless online, mobile
office, mobile phone, visible backing up, fault detection, etc. This project originates from Network
Computer and its Application System Industrialization – one significant scientific industrialization
project of Wuhan undertook by Bluestar. The Company has invested research funds of over RMB
12 million into deep and particular research on embedded software and hardware systems.
Through the implementation of this project, the Company develops various embedded products
for different industries, among which, vehicle computer, as main product of this project, has
passed relative testing and achievement evaluation organized by the state and is coming into the
market. The efficient implementation of this project will change the actuality that key auto
electronic technologies in China depend on import, drive relative technological and industrial
development, and form a powerful industrial group of intelligent vehicle information system with
independent intellectual property rights.
     II. Project scale and content
     Total building area is 20,000m2. and annual production capability is 500,000 sets of
intelligent vehicle information systems. Main contents include: workshop, office building, and
construction of production line and supporting facilities.
     III. Total investment
     RMB 180 million.
     IV. Benefit assessment
     Annual sales revenue: RMB 5100 million.
     V. Construction term
     Year 2006-2010.
     VI. Construction site
     East-lake Hi-tech Development Zone.
     VII. Cooperation mode: flexible.

                                                 20
VIII. Project progress
The first-generation products are at the stage of trial sales.
IX. Contact information
Project owner: Wuhan Bluestar Science & Technology Co., Ltd.
Project principal: Chai Jin    86-27-87561192            13995600737




                                             21
                               Steel Structure Production Project

     I. Project background
     With the development of Chinese steel industry, steel structure is more and more used in
houses, industrial frameworks, gymnasiums, traffic facilities etc. and is recognized and accepted
gradually by the people. This emerging industry has a greater development space. This project is
close to Jiangbei Logistics Delivery Base of Wuhan Steel, abundant materials of which may meet
the demands of this project.
     II. Project site
     Wuhan Yangluo Economic Development Zone.
     III. Project content
     Introduce steel deep-processing line with annual production capability of 100,000 ton.
     IV. Total investment
     Total investment is RMB 200 million, including engineering cost of RMB 80000 thousand,
equipment purchasing cost of RMB 50000 thousand, installation cost of TMB 20000 thousand,
and others of RMB 50000 thousand.
     V. Market forecasting
     Steel structure, with a broad market prospect, is applied to new construction industry and
fields, such as houses, industrial frameworks, gymnasiums, traffic facilities, bridges, high-level
steel structure construction, large-scale pipe trusses, and so on. After being put into production,
new-increased sales revenue will be RMB 600 million, and the profit plus taxes will be RMB
8000 thousand.
     VI. Cooperation mode
     Sole investment, joint venture and cooperative venture.
     VII. Contact information
     Project owner: Xinzhou Economic and Trade Commission
     Contact: Shu Guichuan
     Tel.: 027-86921206        027-86928100 (Fax)




                                                22
    Project of Electronic-compressor Water-cooled Air Conditioner

     I. Project background
     Electronic-compressor water-cooled air conditioner – a patented product invented by Wuhan
Zhenggong Renewable Energy Science & Technology Development Co., Ltd. is a kind of
energy-saving environmental-protection air conditioner. The product may be equipped with
negative-ion generator and heater and adopts secondary-cooling structure for air supply. The
whole device is movable and no external hanging device is required, which realizes the function of
one air conditioner with several purposes.
     II. Project content
     This product, having obtained national invention patent, is a large-scale water-cooled
environmental-protection energy-saving movable air conditioner built up by various inventions. It
is featured by: 1 well cooling effect and movable. This patent adopts semiconductor cool chip to
assist compressor for cooling with well effect and low cost. 2 power saving. The power of one set
of 1.5HP air conditioner is about 1.4 KW. 3. no-break working for 24 hours. 4. one air conditioner
with several purposes. This series of products may be equipped with oxygen bar which may keep
air clean while conditioning air temperature.
     III. Total investment
     RMB 80000 thousand.
     IV. Benefit forecasting
     According to the analysis, total investment is about RMB 80000 thousand and recovery
period of static investment is 3 years.
     V. Cooperation mode
     Various modes.
     VI. Contact information
     Address: Hankou Innovation Center of Wuhan
     Contact: Wu Zungong
     Tel.: 027-85414439 13026357813




                                                23
            Manufacturing Project of Scroll Compressor for Auto
                            Air-conditioner

     I. Background Information:
     Huayuan Auto Scroll Compressor Technology Co., Ltd., on the basis of 18-year research,
successfully develops scroll compressor, model machine of which passes the inspection of Hefei
National Inspection Center and is qualified. Compared with reciprocating-piston compressor,
scroll compressor is featured by simple structure, environmental protection and energy saving.
Main components of scroll compressor are only 1/10 of that of reciprocating-piston compressor,
with volume reduced by 40%, weight reduced by 15%, volume efficiency increased by over 95%
and manufacture cost reduced by 10%. Scroll compressor, saving over 30% energy, is one of the
most energy-saving products among existing compressors and is one kind of environmental-
protection product.
     II. Market analysis:
     The current annual auto production is over 7500 thousand sets, and by the end of eleventh
five-year plan the annual production capability will amount to 15000 thousand sets. Besides,
special type vehicles are increasing year by year (machine shop car, municipal waste truck, tank
truck, urban sprinkling truck, large-scale and agricultural tractor). Current social guarantee
quantity is tens of million vehicles and the quantity of compressors for auto air-conditioner used
for social maintenance each year is over 1500 thousand. Reciprocating-piston compressor is
washed out gradually due to great auto power loss and self leaking; as a new-generation product
with improved technology, scroll compressor is featured by energy saving, environmental
protection, few components and low cost. Meanwhile, with continuously increasing of oil price,
low-emission energy-saving cat is popular with users and becomes the development direction of
automobile. Therefore, scroll compressor for auto air-conditioner is the optimal product for energy
saving, and such developed countries as America and Japan have used scroll compressors to
replace other compressor products to a great scale.
     III. Project scale and content:
     (1) Mini car: USD 12000 thousand invested into 200 thousand sets of compressors;
marketing price: 108 US dollars/set, net profit: 46.5 US dollars/set, net profit of 200 thousand sets
of compressors: 9300 thousand US dollars.
   (2) Common car: USD 15375 thousand invested into 200 thousand sets of compressors;
marketing price: 113 US dollars/set, net profit: 51 US dollars/set, net profit of 200 thousand sets of

                                                 24
compressors: 10200 thousand US dollars.
   (3) Luxury car: USD 15375 thousand invested into 200 thousand sets of compressors;
marketing price: 175 US dollars/set, net profit: 94.25 US dollars/set, net profit of 200 thousand
sets of compressors: 18850 thousand US dollars.
   (4) Luxury large and middle buses: USD 19550 thousand invested into 100 thousand sets of
compressors; marketing price: 475 US dollars/set, net profit: 247.5 US dollars/set, net profit of
100 thousand sets of compressors: 24750 thousand US dollars
    IV. Total investment and the composition:
    First-phase investment of USD 115 million, used for the production of eight kinds of scroll
compressors of two types, includes USD 79250 thousand for land, workshop and equipment. The
land of 266700m2 requires USD 3800 thousand.
    V. Benefit forecasting:
         Annual production capability: 1000 thousand sets of scroll compressors; sales revenue:
USD 225 million; sales tax: USD 51690 thousand; sales profit: USD 42510 thousand; the
investment recovery period: 19 months.
    VI. Cooperation mode:
         Joint venture. Chinese side invests with technical expertise, and the customer invests with
funds.
    VII. Project progress:
    The party providing technology completes the test of multi-type scroll compressor and
cooperates with Shandong Jinan Qingqi Engine Plant. The products with annual production
capability of 100 thousand sets are all exported to America and obtain American quality
certification. The company is the exclusive supplier of auto scroll compressors purchased by
America in China.
    VIII. Project owner: Xiangfan Huayuan Auto Scroll Compressor Technology Co., Ltd.
    Contact: Liu Huacheng Tel.: 0710-2898988




                                                  25
                   Project of Auto Front Axle and Front Bridge

     I. Background information:
     Hubei Triring Co., Ltd.- Vehicle Axle Plant, branch of Hubei Triring Co., Ltd.- listed
company of Shenzhen Stock Exchange, is a distinctive professional manufacturing enterprise of
vehicle front axle with the largest scale and the most complete variety in China. The main
products are front axle and bridge assembly, and the plant has a production capability of 350
thousand sets of front axis and 30 thousand sets of bridge assemblies for five series of vehicles:
heavy, middle, light, passenger and special. The products are mainly provided for such large and
middle-scale auto plants, special vehicle plant and passenger vehicle plant as Dongfeng Group,
First Auto Group, Beiqi Foton and National Heavy Duty Truck, and part of products with main
frames are exported to more than 20 countries and regions. Technical facilities, production and
operation capability and achievements of the enterprise are improved quickly in a short time, and
the share of national market of front axle exceeded 30% in 2005.
     II. Project scale and content:
      New-added two rolling forging lines, two heat treatment lines, and improved machining and
assembling capability increase 170 thousand sets of front axis and bridge assemblies, and the
production capability of the enterprise reaches 500 thousand sets of front axis and 50 thousand
sets of auto bridges.
     III. Total investment and the composition:
     Total investment is USD 10600 thousand, including fixed assets of USD 8100 thousand and
current capital of USD 2500 thousand. The project is mainly of capital cooperation, and the funds
of USD 3750 thousand should be invited.
     IV. Benefit analysis:
     New-added sales revenue: USD 23610 thousand; new-added profit: USD 4000 thousand;
new-added internal rate of return before income tax: 34.5%; financial net present value (ic=13%)
before income tax: USD 13020 thousand, the investment recovery period before income tax: 5.66
years; rate of investment to profit: 21.33%; ratio of investment to profit plus taxes: 27.75%. all
economic indices show that the project has a favorable economic benefit.
     V. Project progress:
     For early commissioning of the project, Hubei Triring Co., Ltd. has completed the ordering of
part of equipment through self-financing.
     VI. Cooperation mode: Profit sharing.

                                               26
VII. Contact information:
Address: No. 34, Back Street, Chengguan Town, Gucheng County, Hubei Postcode: 441700
Contact: Jiang Lintao Guo Dequan     Xiao Shiwen
Tel.: 0710-7234532   0710-7233880      0710-7339078
E-mail: gccq@public.xf.hb.cn        Website: //www.gucheng-axle.com




                                        27
 Project of Technology Innovation of Shaped Precision Auto Forging
                          Production Line

     I. Background information:
     Hubei Triring Forging Plant, in Chengguan Town of Gucheng County in the northwest of
Hubei Province, 100km away from Car City-Shiyan in the west and 70km away from Xiangfan
2nd Automobile in the east, is located at the golden section of the corridor auto industry in Hubei
Province. The area is easily accessible with Xiangfan-Chongqing Railway and State Highway 207
passing through and Wudangshan Airport and Xiangfan Airport opening to more than key cities in
China. With friendly cooperation relationships with Daye in Hubei, Changgang in Sichuang,
Xingcheng Steel in Jiangsu, Dongfang Steel in Hubei, etc., the Plant has reliable, abundant and
fluent material supply channels. The Pant is equipped with sufficient public facilities for
manufacturing and life.
     Hubei Triring Forging Plant, as a professional enterprise that adopts die-forging process to
produce auto-parts, has become the largest base to manufacture knuckles of medium and heavy
lorries. Since the seventh five-year plan, the Plant has invested the funds of more than USD 15000
thousand into technology innovation and realized historic transform of production operation
through upgrading and reform of traditional industries and two strategic adjustments: from repair
and replacement of agricultural machinery to production of auto parts and from casting products to
forging parts. The company, with a total area of 80000m2, has total assets of USD 31100 thousand,
original value of fixed assets of USD 14300 thousand, net value of that of USD 9900 thousand,
and annual production capability of 25000ton of auto forgings of medium, heavy and passenger
vehicles (including 500 thousand pieces of auto knuckles. There are over 800 employees,
including 204 engineering staff of various specialties.
     II. Market analysis:
     1. Domestic market: according to the data described in China Automotive Industry Yearbook
(2005): in 2004, auto output in China is 5071 thousand sets, including 1514.8 thousand sets of
lorries, 1243 thousand passenger vehicles and 2313.2 thousand cars. The details are as follows:
there are 28 enterprises manufacturing crankshaft, including 10 ones with annual output of more
than 100 thousand crank shafts. There are 24 enterprises manufacturing connecting rods, including
8 ones with annual output of more than 400 thousand connecting rods. There are 21 enterprises
manufacturing gear, including 9 ones with annual output of more than 100 thousand sets. There

                                                 28
are 14 enterprises manufacturing auto knuckle, including 9 ones having accessible data.
     2. Oversea market: auto-parts cost account for about 60~70% of the production cost of one
vehicle. Especially, auto knuckle with great production difficulty and complex plastic deformation
cannot be easily handled with machine hand. Workers in foreign countries often have high salaries
and developed countries don’t want to manufacture auto-parts. Therefore, it has been the world
trend to reduce ratio for self-manufactured content of auto-parts, to purchase from the whole
world, increase production efficiency and realize professional large-scale production. According to
China Automotive Industry Yearbook (2005): in 2004, America, Japan, Germany, France. Korea,
Spain and Canada all have a annual auto output of about 40930 thousand sets, but the ratio for
self-manufactured content is lower than 50%. Obviously, the quantity of auto-parts to be
purchased from the whole world is quite considerable.
    III. Project scale and content: The planned investment is USD 15700 thousand, including
self-financing of USD 5700 thousand and the funds of USD 10000 thousand to be collected.
    IV. Benefit forecasting: The given period of the project is 10 years, including construction
period of 3 years and operation period of 7 years. New-added sales revenue is USD 37800
thousand.
    V. Cooperation mode: Joint venture, cooperative venture.
    VI. Contact information:
                      Contact: Xu Shirong Gong Zhixiang        Tel.:0710-7231503
                      Fax: 0710-7241753
                      Contact: Guo Dequan               Tel.:0710-7233880
                      Contact: Xiao Shiwen              Tel.:0710-7339078
                      E-mail:gczsyzzx@163.com        Postcode: 441700




                                                29
                                       Gearbox Project

     I. Background information:
      Xiangfan Jiangshan Automobile Gearbox Co., Ltd., founded in 1989, is a hi-tech enterprise
and has been titled Hubei Product with Leading Brand for many times. The company has
advanced technical equipment of more than 500 sets and precise test measures and is equipped
with advanced axle processing line, gear processing line, heat treatment line, assembly processing
line and printing processing line.     The company has abundant technical force and strong
scientific innovation ability via an experienced research team and development measure. At
present, the company has developed 8 series and over 100 kinds of gearboxes, which covering
light, medium and heavy commercial vehicle fields in China. All the products posses complete
intellectual property rights, keep a leading position in domestic market, and obtain national new
product award and Awards of Scientific Achievements for many times. The company has a
complete and efficient quality assurance system involving the whole process of product
development, trial production, purchasing, manufacturing and sales service.          In 1997, the
company passed ISO9002 Quality System Certificate, in 2003, quality control system based on
GB/T19001-2000 Standards passed the certification of China New Time Quality System
Certification Center. With the upgrading product quality, the company is appraised as Quality
Trustworthy Organization by Dongfeng Company. In 2006, the company will carry out
carrying-out criterion certification of ISO/TS16949 Quality Control System. Meanwhile,
carrying-out criterion certification of ISO14001 Environmental Control System and OHSAS18001
Occupational Health and Safety Management System is in process.
    II. Project scale and content:
    The project, with first-phase investment of USD 10130 thousand, passed final acceptance in
October 1992 and had annual production capability of 10 thousand auto gearboxes. From 1997 to
2005, USD 6330 thousand is invested successively into production expanding and reform and the
company realizes the annual production capability of 50 thousand sets of auto gearboxes and 1000
thousand pieces of gear parts. According to the requirements for development, further technical
reform will be carried out in the period of eleventh five-year plan to realize the annual output of
over 100 thousand sets of gearboxes.
    III. Total investment and the composition:
      USD 20000 thousand.

                                                30
     IV. Benefit forecasting:
      At present, the company is carrying out the reform of annual production capability of more
than 100 thousand sets of gearboxes. It is predicted that production capability of the equipment,
technical level of the product and profiting level of the enterprise will be improved significantly
after the reform.
     V. Cooperation mode:
     Joint venture and cooperative venture.
     VI. Project progress:
     The reform of automatic final assembly process line, automatic painting process line,
second-phase multi-purpose furnace heat treatment line, etc. has been completed.
     VII. Contact information:
     Address: Xiangfan Hi-tech Development Zone Postcode: 441057
     Contact: Zhang Zhonghai      Tel.: 0710-3340376
     Fax: 0710-3343419
     E-mail: Jiangshan@public.xf.hb.cn




                                                31
          Project of Special Purpose Vehicle Capability-expanding

     I. Background information:
     Hubei Foton Special Purpose Vehicle Co., Ltd. is one of business departments of Beiqi Foton
to manufacture automobile frame and special purpose vehicle. There are five series and over 60
kinds of products of special purpose vehicle, including semi-trailer, van, tank vehicle, tipper and
aerial lift vehicle, as well as such research platforms as Auman, Dongfeng, Jiefang and Stail with
annual output of 2000 sets. There are fives series and over 200 kinds of products of automobile
frame, including heavy truck, medium-heavy truck, passenger vehicle and machine shop, with
annual output of 60 thousand frames. The total existing assets of the enterprise is USD 16700
thousand, floor space 232000m2, workshop area 93000m2, and the number of employees 1200,
including 264 technicians and managers.
     II. Project scale and content:
     The area of new-added workshop is 80000m2, and the quantity of new-added equipment and
dies is 3000 sets. Within 5 years, annual output of special purpose vehicles will increase to 50000
sets from 2000 sets.
     III. Total investment and the composition:
     Total investment is USD 38000 thousand, including fixed assets of USD 19000 thousand and
current assets of USD 19000 thousand. The proportion of subscribed capital will be determined
through negotiation between both parties.
     IV. Benefit forecasting:
     After the project is put into production, annual sales revenue will be USD 126580 million,
the profit be USD 63290 thousand, and the tax be USD 50630 thousand.
     V. Cooperation mode:
     Joint venture and cooperative venture
     VI. Project progress:
     Land acquisition and the construction of such infrastructures as water, power, road and
communication have been completed.
     VII. Contact information:
     Project owner: Hubei Foton Special Purpose Vehicle Co., Ltd.
     Address: No. 56, Xinhua Road, Zaoyang City, Hubei Province         Postcode: 441200
     Contact: Song Huawei       Tel.: 0710-6317572 13707271899
     E-mail:zyft@foton.com.cn

                                                32
             Project of Automobile Frame Capability-expanding

     I. Background information:
     Hubei Foton Special Purpose Vehicle Co., Ltd. is one of business departments of Beiqi Foton
to manufacture automobile frame and special purpose vehicle. There are five series and over 60
kinds of products of special purpose vehicle, including semi-trailer, van, tank vehicle, tipper and
aerial lift vehicle, as well as such research platforms as Auman, Dongfeng, Jiefang and Stail with
annual output of 2000 sets. There are fives series and over 200 kinds of products of automobile
frame, including heavy truck, medium-heavy truck, passenger vehicle and machine shop, with
annual output of 60 thousand frames. The total existing assets of the enterprise is USD 16700
thousand, floor space 232000m2, workshop area 93000m2, and the number of employees 1200,
including 264 technicians and managers.
     II. Project scale and content:
     Add auto-stringer 3D NC punch and plate NC punch and carry out NC reform on existing
large-scale equipment; carry out reform on 3500ton and 3000ton pressure E&M NC system; add
one large beam slab cutting production line, renew dies and add shot blasting machine, drilling
machine, pressing machine, etc.; carry out reform on anode electrophoretic coating production line.
Annual output of automobile frame increases to 100 thousand sets from 60 thousand sets.
     III. Total investment and the composition:
     Fixed assets is USD 11400 thousand and the proportion of subscribed capital will be
determined through negotiation between both parties.
     IV.   Benefit forecasting:
     annual new-added sales revenue is USD 12650 thousand, the profit is USD 500 thousand,
  and the tax is USD 640 thousand.
     V. Cooperation mode: Joint venture and cooperative venture
     VI. Project progress: Feasibility study, land acquisition and infrastructural construction have
been completed.
     VII. Contact information:
     Contact: Song Huawei
     Project owner: Hubei Foton Special Purpose Vehicle Co., Ltd.
     Address: No. 56, Xinhua Road, Zaoyang City, Hubei Province          Postcode: 441200
     Tel.: 0710-6317572 13707271899               E-mail:zyft@foton.com.cn

                                                33
            Top-grade Automobile Finish Production Project

     I. Background information:
      Auto industry has become a pillar industry of national economy. In order to adapt to the
requirements of rapid development of domestic automobile coating, it is planed to introduce
technology and funds to produce environmental-protection top-grade automobile finish that is
featured by well appearance decoration, galling resistance, acid rain proof and stone crash
protection. Hubei Swan Coating Chemical Ind. Co., Ltd. with abundant material foundation and
technical force has annual production capability of 15,000ton of paint and has 135 high-quality
professional talents on scientific research, production and management. The Company mainly
supplies supporting paint for Dongfeng Company and is listed as one of 200 Largest Industrial
Enterprises in Hubei Province.
     II. Investment estimation: USD 3000 thousand.
     III. Benefit analysis:
     After the project is put into production, the annual sales revenue will be USD 19000
thousand and the profit plus taxes be USD 7300 thousand. The investment recovery period
consists of 2.28 years before tax and 2.67 years after tax.
     IV. Cooperation mode: Joint venture, cooperative venture and the others.
     V. Contact information:
     Address: No.43, Daqing East Road, Xiangfan City, Hubei Province Postcode: 441001
     Contact: Wei Zhongguo         M.P.:13972215698
     Tel.:0710-3403670            Fax: 0710-3403751
     E-mail: hbtiane@public.xf.hb.cn




                                               34
           Project of Technology Innovation of Industrial Pump

    I. Background information:
      Xiangfan 525 Pump Industry Co., Ltd., with registered capital of USD 630 thousand, is
registered in Xiangfan Hi-tech Development Zone. The Company is mainly engaged in the design,
manufacturing and marketing of industrial pump, valve and nonstandard and stainless casting
which are widely applied in various industries, such as chemical industry, fertilizer, non-ferrous
metal, coal, electric power, environmental protection, metallurgy, light industry and automobile,
especially in the fields of high-efficiency phosphate & compound fertilizer and flue gas
desulfurization (FGD). The Company establishes the quality system complying with ISO9001
international standards and passes the certification of China Quality Certification Centre for
Import & Export; the Company is appraised as Provincial-level High Technology Enterprise by
Hubei Provincial Science & Technology Department; the Company is the key exemplary
enterprise of information engineering of manufacturing industry in Hubei Province; FGD
circulating pump developed by the Company is listed as state-level key new product, obtains the
support of innovation funds for middle-small enterprises of the Ministry of Science & Technology
and was brought into State Torch Plan in 2005; the Company is appraised as ―AAA‖ enterprise by
Agricultural Bank of China.
    Xiangfan 525 Pump Industry Co., Ltd. is a professional manufacturer of anti-corrosion pump
and has advanced management measures and high research capability. The product of this project
as the dedicated device of Limestone (Lime)-Gypsum FGD plant mainly is used in FGD plant of
125MW and above thermal power generating units and is regarded as Heart of Plant Operation.
High-efficiency FGD circulating pump developed by the Company, with international
advanced-level technology and featured by high efficiency, long working life and large flow, may
substitute for the imported and have a broad market prospect.
    II. Market analysis:
      The project has the feasible technology, significant economic and social benefits and broad
market prospect. At present, the Company is negotiating with United Technologies Corporation,
Austria International Andritz Group and Moret France for joint venture. It is hopeful to introduce
some hi-tech new products such as leak-proof magnetic pump, high-speed centrifugal pump and
stirring and mixing devices and add one or two pump enterprises with joint venture. After the
project is put into production, the Company will become first-class production base of special
industrial pump in China.

                                                35
     III. Project scale and content:
     Improve the existing design and production capability of industrial pump, valve and
nonstandard and stainless casting.
     IV. Benefit forecasting:
     When the project is in full operation, annual sales revenue of the Company will be USD
63300 thousand, total profit be USD 10870 thousand, the tax be USD 5970 thousand, net income
ratio be 17% and rate of profit plus taxes to sales revenue. Net present value of the project be USD
29880 thousand, internal rate of return is 19%, the investment recovery period in fixed assets is
4.16 years, and break-even point is 42%. Financial internal rate of return of the project is more
than basic discount rate (10%), and accumulated financial net present value is more than 0.
     V. Total investment and the composition:
      According to the project plan, total investment is USD 25950 thousand, including USD
13200 thousand for purchasing equipment, USD 5100 thousand for building workshops of
40000m2, USD 1300 thousand for purchasing land of 150mu in Xiangfan Hi-tech Development
Zone, and USD 6350 thousand used as current funds. Construction period of the fixed assets is
2years.
     VI. Cooperation mode: Joint venture and cooperative venture
     VII. Contact information:
     Address: No. 146, Tanxi Road, Xiangfan City Postcode: 441021
     Contact: Wang Jun
     Tel.: 0710-3561300     13339818832         Fax: 0710-3560788




                                                36
               Construction Project of Die-pressing Production Line for
                   Automobile-used Composite Materials

       I. Background information
       Hongyang Machinery Plant of China Sanjiang Space Group, as a key aerospace industry
enterprise, mainly undertakes research and production of aerospace hi-tech products. With over
thirty-year development, the Plant has formed a technology pattern centering on research and
application of final-assembly air-conditioner, research and production of composite materials,
manufacturing of large-scale precision machinery and design and production of nonstandard
equipment and has unique technical superiority on processing of high-speed precision machinery,
sheet metal work, cold pressing, welding, forming of composite materials, surface treatment, heat
treatment, physical and chemical inspection, assembling and testing. As Composite Materials and
Manufacturing Technology Research Institute of Sanjiang Group. The Plant maters many kinds of
technologies that is up to the domestic advanced level. The Plant has perfect a quality assurance
system and obtained national measurement first-level certificate in 1990, passed ISO9000 quality
system certificate in 1996 and completed 2001 GJB9001A system transition in 2003. The Plant
began to carry out CIMS engineering construction in February 2001 and adopted various
application systems such as OA, CAD/CAPP/CAM, MRPⅡ and PDM financial management. The
Plant has kept profitable for sixteen years,
       II. Market analysis
       At present, the project targets military cross-country vehicle as well as engine covers
matching to high mobility multi-purpose wheeled cross-country vehicles of Dongfeng Group and
Shenyang Aircraft Corporation. The annual output of Hummer military vehicles produced by
Dongfeng Group is 50~80 thousand sets, engine covers of which are made of nonmetal infrared
radiation-proof materials (military type) which can efficiently avoid radar tracking and attack of
heat guided missile. GRP material is featured by small weight, high intensity, corrosion proof,
well electric insulation, heat insulation, instantaneous super-high temperature proof, easy coloring
and Hettz wave penetration. Compared with traditional metal materials and nonmetal materials,
GRP material and its products have the following features: high intensity, well performance,
energy saving, large design freedom, and wide application. Therefore, to some extent, GRP
material is a kind material with broad application scope and well development prospect.
       III. Project scale and content
       Establish a dedicated production line for GRP composite materials with annual output of

                                                37
3000~5000 sets of die-pressing products, manufacture automobile-used parts and replace metallic
material.
       IV. Total investment and the composition
       Total investment is USD 20000 thousand, 60% of which by the Plant and 40% by the
investor.
       V. Benefit forecasting
       Estimated according to current application fields and market quotation of this type of
product, annual sales revenue may reach USD 18000~20000 thousand, and gross profit rate on
sales may be about 25%.
       VI. Cooperation mode
            Joint venture, cooperative venture and the others.
       VII. Project progress
 The project has been approved and registered, and the feasibility study report has been
completed.
       VIII. Contact information
     Contact organization: Xiaogan Investment Promotion Bureau
     Contact: Yan Dashuang, Deng Ling
     Tel.: (0712)2832556
     Fax: (0712)2822944
     E-mail: xgshangwu@163.com
     Website:http://www.xgswj.com; http://www.xgswj.cn
     Address: No.36, Chengzhan Road, Xiaogan City, Hubei Province
     Postcode: 432000




                                                  38
          Production Project of Composite-material High-pressure
                        Hydrogen-storage Vessel

       I. Background information
       Hongyang Machinery Plant of China Sanjiang Space Group, as a key aerospace industry
enterprise, mainly undertakes research and production of aerospace hi-tech products. With over
thirty-year development, the Plant has formed a technology pattern centering on research and
application of final-assembly air-conditioner, research and production of composite materials,
manufacturing of large-scale precision machinery and design and production of nonstandard
equipment and has unique technical superiority on processing of high-speed precision machinery,
sheet metal work, cold pressing, welding, forming of composite materials, surface treatment, heat
treatment, physical and chemical inspection, assembling and testing. As Composite Materials and
Manufacturing Technology Research Institute of Sanjiang Group. The Plant maters many kinds of
technologies that is up to the domestic advanced level. The Plant has perfect a quality assurance
system and obtained national measurement first-level certificate in 1990, passed ISO9000 quality
system certificate in 1996 and completed 2001 GJB9001A system transition in 2003. The Plant
began to carry out CIMS engineering construction in February 2001 and adopted various
application systems such as OA, CAD/CAPP/CAM, MRPⅡ and PDM financial management. The
Plant has kept profitable for sixteen years,
       II. Market analysis
       Hydrogen, featured by cleanness without pollution, high efficiency, and being storable and
transportable, is regarded as the ideal energy carrier. At present, each county has invested a large
amount of research funds to develop hydrogen energy system, and the development and
industrialization of hydrogen storage devices is the basis of large-scale application of hydrogen
energy. After passing the process of steel vessel, metal-lining fiber-lining vessel and all-composite
fiber-winding vessel, the international is actively developing light hydrogen-storage pressure
vessel resisting higher pressure. The Plant has a history of scores of years for manufacturing and
testing of hydrogen pressure vessel and accumulated abundant experience in the design,
manufacturing and testing of all-steel spherical gas bottle, titanium-alloy spherical gas bottle,
column gas bottle and carbon-fiber annular gas bottle (including winding device and tool set-up
used for gas bottle). At present, the Plant is carrying out research on the forth-generation
fiber-winding plastic-lining gas bottle and has produced the sample that passes relevant tests.
       III. Project scale and content

                                                 39
       The project is to establish a dedicated production line of composite material and to develop
the forth-generation fiber-winding plastic-lining gas bottle with working pressure of
50Mpa~60Mpa.
       IV. Total investment and the composition
       Total investment is USD 10000 thousand, 60% of which by the Plant and 40% by the
investor.
       V. Benefit forecasting
       It is predicted that, by 2010, hydrogen-storage gas bottles of more than 10000 sets will be
required in China. Calculated by RMB 20~50 thousand per set, the output value will exceed RMB
300 million and the profit rate will be about 30%.
       VI. Cooperation mode
       Joint venture, cooperative venture and the others.
       VII. Project progress
       The project has been approved and registered, and the feasibility study report has been
completed.
       VIII. Contact information
       Contact organization: Xiaogan Investment Promotion Bureau
       Contact: Yan Dashuang, Deng Ling
       Tel.: (0712)2832556
       Fax: (0712)2822944
       E-mail: xgshangwu@163.com
       Website:http://www.xgswj.com; http://www.xgswj.cn
       Address: No.36, Chengzhan Road, Xiaogan City, Hubei Province
       Postcode: 432000




                                                40
       Construction Project of Intellectual Security System Production
                                  Line

       I. Background information
       Xianfeng Machinery Plant, the subsidiary of China Sanjiang Space Group, was founded in
1972. The total assets is RMB 108950 thousand and the registered capital RMB 35000 thousand.
There are 1500 employees in the Plant, including 500 engineering technicians, and the Plant has
developed production technology of security system.
       II. Market analysis
       The Plant has developed Inlike series of security products, including such top-, middle and
low-grade products as building intercom system (visual), security control system in dwelling
community, computer monitoring system, border guard system, automatic patrol system, access
control system and parking automatic charging control system, which have passed quality
inspection of police security department of Hubei Province and obtained licenses of production,
marketing and construction. With the upgrading of technological level and people’s living
standard in China, security system has a broader application and well market prospect.
       III. Project scale and content
       Plan to introduce funds and technology for perfecting existing production technology,
improving product quality, increasing product varieties, extending production line and enlarging
production scale.
       IV. Total investment and the composition
       Total investment is USD 15000 thousand, and the shares of both parties will be determined
through negotiation.
       V. Benefit forecasting
       When the project is in full operation, annual sales revenue will be USD 20000 thousand
and annual net profit be USD 7000 thousand. The investment recovery period is three years.
       VI. Cooperation mode
       Joint venture and technology transfer. The investment of Chinese party is existing
technology, equipment, workshops, land and part of funds, and that of foreign party is funds or
technology.
        VII. Project progress
        The project has been approved and registered, and the feasibility study report has been
        completed.

                                                41
VIII. Contact information
 Contact organization: Xiaogan Investment Promotion Bureau
 Contact: Yan Dashuang, Deng Ling
 Tel.: (0712)2832556
 Fax: (0712)2822944
 E-mail: xgshangwu@163.com
 Website:http://www.xgswj.com; http://www.xgswj.cn
 Address: No.36, Chengzhan Road, Xiaogan City, Hubei Province
 Postcode: 432000




                                    42
                                    Scroll Compressor Project

      I. Background information:
      Automobile-used air-conditioner compressor produced in this project, featured by compact
structure, high efficiency and energy saving, slight vibration and low nose, and reliable operation,
is applied in air-conditioner compressor more and more widely.
      II. Market analysis:
        Replace current swash-plate air-conditioner compressor.
      III. Project scale and content:
      Achieve the annual production capability of 200 thousand sets of automobile-used scroll
compressors.
      IV. Total investment and the composition:
      RMB 200 million, including fixed assets of RMB 160 million for purchasing the assets of
Tongxin Company and introducing key processing equipment.
      V. Benefit forecasting:
     Annual output value: RMB 500 million; profit plus taxes: RMB 80000 thousand.
      VI. Cooperation mode:
     Sole investment, joint venture and acquisition and reform.
     VII. Project progress:
     There has been technology party in Huanggang for negotiation.
     VIII. Contact information:
     Huanggang Investment Promotion Bureau
   Contact: Duan Hanguo         Tel.: 0713-8813926




                                                43
              Project of Refitted Vehicle and Agricultural Vehicle

     I. Background information
     Hubei Farm Vehicle Plant, founded in 1986, is one of enterprises of the first group listed in
Content issued by the former Ministry of Machine Building and the Ministry of Public Security.
Two corporate names, Hubei Farm Vehicle Plant and Jingzhou Huatong Vehicle Refitting Co., Ltd.,
are two independent corporation subjects and have qualification of manufacturing low-speed truck
(the former agricultural vehicle) and refitted vehicle. The Corporation belongs to one of key
enterprises of Hubei Axle (Group) Stock Co., Ltd. originally and was listed in Shenzhen Stock
Exchange in 1977. In June 2003, Hubei Axle (Group) Stock Co., Ltd. was renamed Hubei
Bothwin Investment Co., Ltd. and successfully reorganized to private joint-stock enterprise from
the original joint-stock enterprise in accordance with the principle of promoting medium and small
enterprises reform of the state, province and city. The Corporation is located in Chanling Industrial
Park in Gong’an County in Jingzgou City of Hubei Province close to Hunan Province, which is
closely next to State Highway 207 and Jingdong Expressway and near the main channel of
Yangtse River. Two high-voltage lines of Gezhouba and Geheyan hydraulic power plants pass
through the county seat. This area has convenient water and land traffic, smooth logistics,
abundant power supply and suitable climate. In this county there are two listed companies with
strong industrial strength, complete infrastructure and well economic environment.
     The floor area of the Corporation is 108000m2, including building area for production of
30000m2, and total assets is RMB 75000 thousand, among which, registered capital of Hubei
Farm Vehicle Plant is RMB 24680 thousand and that of Jingzhou Huatong Vehicle Refitting Co.,
Ltd. is RMB 10000 thousand. There are 6 stockholders, who all are natural men. The Corporation
has more than 300 sets of key equipment and various production lines of final assembly, pressing,
welding and painting. There are 280 employees, including 20 managers, 15 engineering
technicians and 40 marketing persons. Six departments, i.e. office marketing company, technology
center, purchasing department, manufacturing department and finance department, are set under
the Corporation. The annual output is 5000 sets of vehicles which are mainly sold to Hubei,
Hunan, Henan, Hebei, Zhejiang, Gansu, Qinghai, Guangxi, Sichuan, Yunnan, Anhui, Shanxi,
Shandong, Fujian, Guangdong, Shanxi, Xinjiang, Neimenggu, Ningxia and northeast region
through flexible and various maketing methods. The sales mainly adopts the system of regional
distributor by way of direct selling, which forms a marketing system featured by small risk, quick
fund return and effective turnover.

                                                 44
        II. Market analysis
        (I) Analysis on market prospect of low-speed truck (agricultural vehicle)
        At present, the total mileage of highways in China is 1800 thousand kilometers, 1300
thousand kilometers are rural highways (including county-level and town-level). Highway
development planning of ―Eleventh Five-year Plan‖ focuses on rural highway construction, and
rural highway access and smooth project will be carried out comprehensively. With the rapid
development of rural economy and growth of rural living standard, the volume of transport of
rural highway is increasing at the speed of 10%~15% per year, and transport means changes to
machinery from manpower and animal power and transport vehicles change to low-speed truck
(agricultural vehicle) from tractor and tricycle, which shows that farm vehicle has a vast market in
China.
        Low-speed truck (agricultural vehicle) with Chinese characteristics is featured by low price,
strong adaptability, middle and low speed and large ground clearance and is applicable to rural
goods transport featured by short travel, large number of batches, dispersed goods, small transport
volume, low tonnage and easy unloading. Due to rural road characteristics such as steep slope,
narrow road, and many sharp curves, low-speed truck is quite popular in Chinese rural market and
middle and small remote towns. Currently, annual output of low-speed trucks (four-wheel
agricultural vehicles) in China amount to 2100 thousand sets and is increasing by 15%~20% per
year.
        Over the next several years, the Corporation will take advantage of this development
opportunity to develop the following products on the basis of existing products:
        1. Develop top-grade and lightweight product: because low-speed truck (agricultural vehicle)
is prohibited to enter urban area, in order to contend for transport markets of medium and small
cities and towns, the Corporation should follow the production of lightweight vehicle on
appearance, quality and price and focuses on small vehicles of 1ton and below to replace rural
transport market centering on three-wheel vehicle and motorcycle.
        2. Develop for safety, environmental protection and energy saving: improve the safety,
capability of environmental protection of energy saving of existing products and those to be
developed, driving for achieving EU I Emission Standard within two or three years, and research
and develop low-emission low-noise vehicle that meets the requirements of environmental
protection of the state.
        Develop station wagon: in the rural area, low-speed truck (agricultural vehicle) is taken as a
tool combining production and life purpose, and family car has been a new fashion. Therefore, the

                                                   45
station wagon meeting this demand has a well market prospect. In the countries in the coastland
and some rich countries, agricultural pickup truck featured by ―truck essence and car enjoyment‖
becomes popular gradually.
     4. Develop special purpose vehicle and modified vehicle with strong adaptability: the past
pattern of simple grain and cotton production gradually converts to mixed farming, and various
specialized households on vegetable, fruit, cotton, livestock product and aquatic product appear,
which increases the demands for multi-function modified vehicles.
     (1) Multi-purpose field machinery combining ploughing, seeding and harvesting;
     (2) Fresh keeping vehicle that transports vegetal, fruit and aquatic product;
     (3) Suction -type tumbrel tanker for farmyard manure and refuse vehicle for waste;
     (4) Long van for light and floating goods in cotton producing area;
     (5) Car for public affairs, dedicated car for public affairs and car for business affairs used in
small town;
     5. Develop vehicle type adapting to rural market of the Third World, drive into international
market, change to export from domestic demand, and seek for new economic growth points.
     (二) Analysis on market prospect of refitted vehicle
     In the development policy of national auto industry, refitted vehicle is the key product with
national support. With the continuous and rapid development of national economy as well as the
sharp increasing of transport volume in China, various industries are geared to international
practice, which brings numerous market demands for refitted vehicles in different fields, such as
road foundational construction, environmental protection, machinery, agriculture, animal
husbandry and forestry, water conservancy, electric power, geologic prospecting, mine exploration,
communication, finance, public security and jurisdiction, fire fighting and commercial service.
According to the prediction, the demands for refitted vehicle in China will increase by about 10%
per year and refitted vehicle has a favorable market prospect.
     Over the next several years, the development trend of refitted vehicle industry is ―more and
more types, more and more dedicated function, more and more technical contents, and more and
more rapid change of user’s demands‖. The Corporation will develop the following products on
the basis of existing production:
     1. Develop middle- and heavy-duty engineering self-unloading refitted vehicle: with the
rapid construction speed of national key engineering, middle- and heavy-duty engineering
self-unloading refitted vehicle, featured by strong load-carrying capability, high transport
efficiency, and low operation cost, becomes the main force of key engineering construction. The

                                                 46
Corporation will continually corporate with large-scale enterprises with famous brands in China
and capitalize upon their abundant chasis resources of special purpose vehicles to take the road of
commission refitting and make it become the pillar product of the Corporation.
     2. Develop diversified semi-trailer: with the gradually implementation of national control
policies and management regulations of transport industry, the issuing of the policy of license
plate issuing and road toll halving of semi-trailer as well as the gradual canceling of regional
protection policies, drop and pull transport, a high-efficiency, economical, energy-saving and
environmental-protection transport mode superior to single-body truck, will be the optimum
selection of logistics industry, and semi-trailer will be in demand significantly.
     (1) Dropside semi-trailer for general cargo transport. With the swift growth of mileage of
high-grade highways as well as increasing of logistics volume, dropsied semi-trailer has been a
key transport means for general cargo and been the optimum selection of large- and medium-sized
vehicle transport companies, freight yards, stations and even individual transport. According to
market, it will increase by 20% per year.
     (2) Heavy-duty van semi-trailer. In the future development of traffic transport, van
semi-trailer occupies the mainstream. In America, the sales volume of van semi-trailers accounts
for 50% of the total sales volume of semi-trailers. In the charging policy for large vehicle transport
issued in China recently, the most refers to American transport control system, and this policy will
drive the significant increasing of demands for van semi-trailers. Additionally, almost all freight
transport between cities, physical distribution of supermarkets are using middle- and light-duty
van trucks and some open wagons, which not only shows short power, but also breaches relevant
regulations and laws. The transport efficiency is also at a great discount. Therefore, the rapid
increasing of urban logistics brings urgent demands for economical and high-efficiency
heavy-duty van semi-trailers.
     (3) Framework container semi-trailer.       With the increasing construction of harbors and
special purpose wharfs as well as the increasing cargoes imported and exported after China’s
entering WTO, framework container semi-trailer has become the main force of harbor and wharf
and has a huge market potential.
     (4) Tank semi-trailer. With the rapid development of national economy, each industry
increases the demands for oil products and chemical products. Hence, tank semi-trailer becomes
the optimum selection of these industries. According to market prediction, over the next fifteen to
twenty years, these kinds of products will increase at the speed of 10%~20%, and large and
medium tank semi-trailers have a favorable market prospect.

                                                  47
     (5) Refrigerated/insulated semi-trailer. With the continuous growth of living standard, the
people have higher and higher demands for corrosion protection, fresh keeping, sanitation and
safety of the food, so the development and strengthening of cold-chain transport industry becomes
a necessary trend, which facilitates the demands for refrigerated/insulated semi-trailers.
     (6) Bulk-grain transport semi-trailer. In China – one of the largest countries for grain
production and grain consumption, the storage and safety of grain is quite important, which
provides a broad market for new-style bulk-grain transport semi-trailers that are featured by large
transport volume, convenient and easy loading and unloading and rainproof, dampproof and
moldproof.
     3. Develop special-purpose refitted vehicle. Special-purpose refitted vehicle is necessary for
the industries of construction, communication, water conservancy, energy, etc. Though
special-purpose refitted vehicle develops to some extent in recent years, quite a difference exists
between that in China and foreign countries, which is mainly embodies in few varieties, small
scale and lack of heavy-duty vehicle. This cannot meet the demands for infrastructural
construction reinforced by the state currently, and may products have to depend on import.
Therefore, the state has listed special-purpose refitted vehicle as the keypoint of development.
Moreover, the features of special-purpose refitted vehicle, i.e. featured by strong specialty, high
technical content and large value added, are also main factors for the Corporation to list it as the
key product. The key products to be developed is divided into two categories:
     (1) Construction engineering vehicle. With the quickening of urban construction, the demand
for special-purpose engineering vehicles for construction increases continually, such as concrete
mixer truck, bulk cement truck, concrete pump truck, road maintenance truck, and so on.
     (2) Vehicle used for urban sanitation. With urban development, the people attach more and
more importance to environmental situations, and it has becomes the key task of modern civilized
cities to beautify environment and improve life quality. Therefore, the demands for vehicles used
for urban sanitation increase significantly, such as road sweeper, garbage vehicle, sewer dredging
vehicle, suction-type sewer scavenger, and so on.
     III. Project scale and content
     The while project is divided into three steps:
     Step 1: based on the existing workshops and equipment, rebuild final-assembly process line,
expand painting workshop, and increase welding devices and clamps in welding workshop.
     Step 2: based on the existing plant site, use the land to be opened to build final-assembly
workshop and painting workshop with total area of 30000m2, newly build a final-assembly

                                                 48
process line and a painting process line, expand welding workshop, and increase automatic
welding devices and die clamps.
     Step 3: move Jingzhou Huatong Vehicle Refitting Co., Ltd. out of the current plant site, add
the land of 150000m2 in Chanling Industrial Park, rationally plan plant layout, build modern
combined workshop, newly build process lines of final assembly, welding, painting and testing,
and reform the production line of low-speed truck (agricultural vehicle).
     IV. Total investment and the composition
     First phase: total investment is RMB 100 million, including construction investment of RMB
10000 thousand and current capital of RMB 90000 thousand.
     Second phase: total investment is RMB 150 million, including construction investment of
RMB 30000 thousand and current capital of RMB 120000 thousand.
     First phase: total investment is RMB 250 million, including construction investment of RMB
60000 thousand and current capital of RMB 190000 thousand.
     Total investment of three phases is RMB 500 million, which are invested by phase. Lump
sum investment may be allowable in order to obtain large development space and more economic
benefits.
     V. Benefit forecasting
     When the first-phase project is put into production, annual output will be 10000 sets of
vehicles including 6000 sets of low-speed trucks (agricultural vehicle) and 4000 sets of refitted
vehicles, sales revenue be RMB 500 million, the profit be RMB 35000 thousand, and the tax be
RMB 15000 thousand.
      When the first-phase project is put into production, annual output will be 30000 sets of
vehicles including 20000 sets of low-speed trucks (agricultural vehicle) and 10000 sets of refitted
vehicles, sales revenue be RMB 1500 million, the profit be RMB 105000 thousand, and the tax be
RMB 45000 thousand.
     When the first-phase project is put into production, annual output will be 60000 sets of
vehicles including 40000 sets of low-speed trucks (agricultural vehicle) and 20000 sets of refitted
vehicles, sales revenue be RMB 3000 million, the profit be RMB 255000 thousand, and the tax be
RMB 90000 thousand.
     VI. Cooperation mode
     Cooperation partners:
     (1) Domestic auto manufacturing enterprise with strong economic strength;
     (2) Domestic auto-parts enterprise with high popularity and strong economic strength;

                                                49
    (3) Cross-industry (such as petroleum, chemical industry, electric appliance, tobacco,
environmental protection, food, etc.) famous brand enterprise or large and medium business
group;
    (4) Foreign-owned enterprise and investment corporation.
    Investment mode:
    (1) Lump sum investment or financing;
    (2) Joint venture;
    (3) Merger, acquisition or reorganization;
    (4) Other joint investment methods through negotiation.
    VII. Contact information
    Contact: Yu Liangdong
    Tel.: 0716-5150727




                                                 50
  Project of Technology Upgrading of Middle and Heavy-duty Truck

     I. Project background:
     Hubei Tri-ring Special Vehicle Co., Ltd. is engaged in the manufacturing of special-purpose
vehicle and chasis and has almost 700 kinds of products including light-, middle- and heavy-duty
trucks and various special-purpose vehicles. After the development by leaps and bounds for
several years, with the enlarging of market scale as well as the increasing of industrial competition,
the Company has to develop new products with international competitive capability, strengthen its
core competitive capability, and seek for new economic growth point. Therefore, the road of joint
venture based on domestic and international advanced technologies should be followed.
     II. Project introduction:
      With the development by leaps and bounds since 1998, Hubei Tri-ring Special Vehicle Co.,
Ltd. achieves the annual production capability of 20 thousand sets of commercial vehicles and has
two production bases in Shiyan and Wuhan respectively. The entire-car project is divided into
commercial vehicle project and passenger vehicle project.
      Carry out technology upgrading for existing auto types. The auto type is 5~20ton middle-
and heavy-duty truck. Introduce advanced technology for driver’s cab to make the product quality
in line with international advanced level.
     III. Project scale and content:
     At the beginning of construction, annual output reaches 30 thousand sets of vehicles and
develops for 50 thousand sets according to market situation.
     IV. Total investment:
       Total investment is RMB 500 million, and new-added investment should be RMB 150
million.
     V. Construction condition:
     The cooperative production of commercial vehicle with joint venture is carried out in Shiyan.
Use the exiting workshops and land of Tri-ring Special Vehicle Co., Ltd. and introduced
technology to carry out reform on the existing production equipment and process equipment and
build computer local area network and product development CAD work station. Here, the
introduce of driver’s cab project is the keypoint of this project, and the new-added investment is
mainly used for development design of driver’s cab and the reform of production equipment and
process equipment.
     VI. Market forecasting:

                                                 51
     With the rapid development of national economy and the continuous growth of living
standard, domestic auto market keeps growing rapidly, especially, the strategies of expanding
domestic demands, western development and urbanization provides a broad development space
for auto industry in China. It is predicted that, in 2005, truck volume will be 8650~8850 thousand
sets and the demand quantity will be 950~1000 sets. Then the truck has a favorable market
prospect.
     VII. Benefit analysis:
      Complete the reform of production equipment and process equipment and preliminarily
achieve the annual production capability of 30 thousand sets of vehicles within one year. When the
project is put into the production, the profit plus taxes will be RMB 100 million, and the
investment recovery period is 4 year.
     VIII. Contact information:
     Project owner: Hubei Tri-ring Special Vehicle Co., Ltd.
     Contact: Ye Wenting
     E-mail: Anata5552@sina.com
     Tel.: 86-719-8793471         Fax: 86-719-8793373
     Website: http://www.trm.com.cn




                                                52
    Expansion Project of Container Semi-trailer and Concrete
                          Mixer Truck

      I. Background information
      Hubei Shenhe Motor Assembly Co., Ltd. on the south bank of Hanjiang River is 17km away
from the urban area of Car City-Shiyan in the north and in the central area of Chadian Town 15km
away from Yunxian County in the south, with State Highway 209 in front and Jiaghan River
behind. The Company with the abovementioned regional superiorities is one of key enterprises of
Xunxian County, one of 100-Top Enterprises in Hubei, and Star Township Enterprise with the
largest scale and the best benefits in Shiyan region.
      With the improvement of domestic market economic system and assets reorganization of
Dongfeng Company as well as the sharp development of auto market and the traffic-open of
several high-grade highways in China, container semi-trailer will be the key vehicle for
long-distance transport and the demands for it will increase significantly. At the same time,
according of the regulation that the state will forbid the concrete site mixing of urban construction
in medium-sized cities and above by the end of 2005, concrete mixer truck will has a great market
potential within next several years. Only depending on the existing car types, the Company may
not adapt to the severe market competition or meet the demands of numerous clients. In order to
achieve continuous, healthy and rapid development, the Company has to hold the opportunity,
target the market and develop new marketable products with high technical content and large
value added.    Therefore, according to the market survey, the Company plans to expand a
container semi-trailer production line with annual output of 2000 sets and a concrete mixer truck
production line with annual output of 500 sets on the basis of series of existing refitted vehicles. In
this way, the Company may change the ―Three-low‖ actuality, namely, low technical content, low
value added and low economic benefits, and become the pillar enterprise of the County.
      II. Market analysis
       According to national policies about auto industry and the development trend of auto
market, auto industry in China is just at the stage of structural adjustment. With the improvement
of traffic conditions and reinforcement on capital construction projects, large-tonnage and
heavy-duty special-purpose vehicle and special-purpose engineering vehicle has a significant
market potential in China.
       Therefore, in view of the suggestions of Hanyang Special Purpose Vehicle Institute and
Dongfeng Company, the products in expansion project are container semi-trailer and concrete

                                                  53
mixer truck. According to preliminary market survey, at present, the annual demand volume of
these kinds of vehicles is about 50~70 thousand sets and will increase year by year.
        With the quickening development of urban construction, in order to meet the high-standard
requirements of infrastructural construction in large and medium0sized cities and avoid dust and
noise pollution in construction site, concrete is required for different-plant mixing and
professional production. The working life of this product is about 3~5 years. As for manufacturer
of the same kind of product, there is only Zhumadian Special Purpose Vehicle Manufacturing
Plant with annual output of 4000~5000 sets in the surrounding region, which is far from the
market demands. Therefore, the demands for this product in domestic market will increase
significantly.
      For container semi-trailer in this project, the agreement with Hunan Vehicle Refitting Plant
has been reached preliminarily. In the production plan of this product with 2000 set/year, Hunan
Vehicle Refitting Plant will manufacture 60% in the project location and be responsible for the
marketing of its manufactured products with ―Shenhe‖ brand and technology for risk and benefit
sharing.
      III. Project scale and content
        According to analysis and forecasting of market demands, under the principle of economy,
suitability and long-term development, this project attaches importance to special-purpose
engineering vehicle. Additionally, in order to improve the degree of self-production and expand
reproduction capability, the Company prepares some parts production equipment for
self-improvement, self-upgrading and self-development.
        Product program and scale. According to the market forecasting, production program is
determined as follows:
        ①Container semi-trailer    2000 set/year
        ②Concrete mixer truck     500 set/year
      IV. Total investment and the composition
        Total investment: RMB 105670 thousand
        among which,
        ①Investment in fixed assets: RMB 55670 thousand;
        ②Current capital: RMB 50000 thousand.
        In investment in fixed assets, RMB 29270 thousand is for civil construction.
        among which,
     Main workshop: 20000m2 RMB 17000 thousand;

                                                 54
     Material storage: 600m2 RMB 270 thousand;
     Plant site: 600000m2 RMB 12000 thousand;
       Main machinery: RMB 19850 thousand;
     Accessory facilities: RMB 1250 thousand;
     The others: RMB 5300 thousand.
      For current capital, RMB 15000 thousand will be invested in the first year after the project
is put into production, which is increased to RMB 30000 thousand in the second year and RMB
50000 thousand in the third year (the year of being in full operation).
      V. Benefit forecasting
       The annual output of container semi-trailers (Product A) is 2000 sets. Under the pricing
principle of financial assessment, in consideration that this product is the salable product in
domestic market and will at the state of demands more than supply within some period, it is
determined that the sale price of the products should be determined on the basis of the price that
has been realized in domestic market. The ex-factory price of concrete mixer truck is RMB 480
thousand and container semi-trailer RMB 140 thousand. The estimated value of annual sales
revenue is RMB 520000 thousand in normal years.
     Annual sales tax and surtax are calculated by national regulations. The estimated amount of
value-added tax, urban maintenance and construction tax, educational surtax and sales tax and
surtax per year is RMB 12070 thousand in normal years.
      VI. Cooperation mode
     Joint venture and cooperative venture
     VII. Contact information
  Project owner: Hubei Shenhe Motor Assembly Co., Ltd.
  Corporate representative: Jin Yuansheng
  Tel.: 0086-719-7580377
  Fax: 0086-719-7580379
  Contact organization: Yunxian County Investment Promotion Bureau, Hubei Province
  Contact: Wang Cheng, Li Fan
  Tel./Fax: 0086-719-7227651




                                                 55
          Special Aircraft Research and Industrialization Project

      I. Project owner
      China Special Vehicle Research Institute (also called No.605 Research Institute of China
Aviation Industries, hereafter referred to No.605 Institute), founded in 1961 and located in
Jingmen City of Hubei Province in 1968, is the unique mainframe institute In China that is
engaged in research and development of special vehicle including water aircraft (hydroaeroplane,
ground-effect plane and amphibian) and air-floating aircraft (airship, captive balloon and
stratospheric platform). At present, in NO.605 Institute there are 1146 employees. Including over
700 professional en technicians, 5 experts of provincial ministry-level, 26 persons enjoying special
allowances of the government, 18 researchers and 114 senior engineers. The total area is
2,000,000m2 and the total assets nearly RMB 200 million. Now No.605 Institute is subject to
China Aviation Industry Corporation II (AVIC II).
     Since being founded, NO.605 Institute has accomplished many items of scientific research
tasks for national defense. In 1976 the Institute designed the first-generation large hydroaeroplane
– SH-5 Aircraft with the successful first-flight which was delivered to the army in 1986 and
obtained National Science & Technology Progress Award (first class). In 1984 the Institute
successfully developed the first agricultural super-light plane in China; in 1987 refitted the first
forest air tanker on the basis of SH-5 Aircraft in China; in 1990, developed the first practical
helium manned airship in China; in 1995 developed the first-generation super-light
hydroaeroplane in China; in 1998 developed the first practical ground-effect plane, which filled
the blank in aviation hi-tech and basic research field in China for many times.
     II. Project background
     No.605 Institute has developed A2C super-light hydroaeroplane, A2C super-light landplane,
A1 series of super-light plane, DXF100 ground-effect plane, FK series remote-control airship and
helium-manned airship. At present, the Institute is carrying out research on sea-gull 300 and
sea-gull 400 amphibians. With opening civil aviation market in China gradually, No.605 Institute
seizes the opportunity, puts the abovementioned products into civil aviation market and obtains
well economic and social benefits. In order to meet the expanding market demands, No.605
Institute plans to carry out the transform of scientific achievement on abovementioned special
aircrafts and seek for cooperation partners to realize the industrialization of special aircrafts.
     III. Project content

                                                   56
                                                             Technical                         Cooperation
No.   Item                   Purpose                                              Investment
                                                             level                             mode

      DXF100                 Passenger and goods Independent                                   Joint
                                                                                               venture
      ground-effect          transport in river, lake        intellectual
      plane (20ton)          and sea, tourist rescue,        property
                             suppressing               of rights,           the
                             maritime       smuggling,       unique               RMB
1                            and marine monitoring           product              70000
                                                             obtaining            thousand
                                                             ship-class
                                                             airworthiness
                                                             certificate     in
                                                             China

      KF     series     of   Aerial     photography,         Independent                       Joint
                                                                                               venture
      airship         (FK4   TV               relaying,      intellectual
      helium     manned      environmental                   property             RMB
2     airship)               monitoring,            aerial   rights,              25000
                             advertising,          traffic                        thousand
                             control, aerial touring
                             and aerial logging

      A2C super-light        Agriculture and animal          Independent                       Joint
                                                                                               venture
      aerohydroplane         husbandry,             aerial   intellectual
                             seeding        and      pest    property
                             control,               aerial   rights,        the
                             photography,         training   unique
                                                                                  RMB
                             and tourism.                    product
3                                                                                 15000
                                                             obtaining
                                                                                  thousand
                                                             Approval
                                                             Letter of Type
                                                             Design         and
                                                             Manufacturing
                                                             License



                                                        57
        Sea-gull      300   Flight      for      public    Independent
        (400) amphibian     affairs,           touring,    intellectual
        (5~7 sets)          short-distance                 property
                            passenger         transport,   rights,    broad
                            suppressing              of domestic              RMB
                                                                                           Joint
4                           maritime      smuggling,       market             150000
                                                                                           venture
                            environmental                                     thousand
                            monitoring, agriculture
                            and animal husbandry,
                            aerial seeding and pest
                            control



       IV. Benefit forecasting:

                                                                                         Profit      plus
                                                                Sales revenue (10000
Item                                                                                     taxes     (10000
                                                                yuan)
                                                                                         yuan)

DXF100 ground-effect plane (20ton)                              5000                     1750

KF series of airship (FK4 helium manned airship)                1000                     350

A2C super-light aerohydroplane                                  1000                     350

Sea-gull 300 (400) amphibian (5~7 sets)                         6000                     2100

       V. Contact information:
       Contact organization: China Special Vehicle Research Institute
       Contact: Liao Shengzhi      Tel.: 0724-2328717 (13707268463)
               Shi Changzheng Tel.: 0724-2328063 (13971848761)
       Fax: 0724-2329051
       http:// www. ht605.com.cn
       E-mail:webmaster@ht605.com




                                                      58
                           Special Industrial Pump Project

     I. Project background
     Special industrial pumps are widely used in metallurgy, mine, petroleum, charcoal, electricity,
environment protection, building material, chemical industry, food etc. Slurry pumps are mainly
used to transport all kinds of slurry of high concentration which contains solid particles; stainless
steel pumps are chiefly used to transport different kinds of acid or alkaline liquid and liquid used
in food manufacture; oil-chemical-industry-pumps are to transport oil. Pump products are badly
needed in both domestic and international markets. Tianmen City in Hubei Province owns a
favorable manufacturing and selling foundation of special industrial pumps. A factory of industrial
pumps is constructed in Qiaoxiang Tianmen Economic-Technological Development Area, which
makes full use of the advantages of the local resources and develops together with Tianmen water
pump manufacturing. It is sure to be a promising and profitable industry.

     II. Project content

     Integrate water pump manufacturing resources in Tianmen and produce oil pumps, slurry
pumps, oil-chemical-industry-pumps and stainless steel pumps, etc.

     III. Total investment and the composition
     The total investment is RMB 280000 thousand, including RMB 150000 thousand for fixed
assets and RMB 130000 thousand for current capital. The investment in fixed assets include land
acquisition of 300mu, workshop building of 38000m2 and 580 sets of equipment, i.e. medium
frequency furnace, processing center, general-purpose machine and equipment inspection.

     IV. Economic benefit
     Annual sales revenue of pumps, stainless steel pumps and oil-chemical-industry-pumps is
RMB 500 million, the taxes are RMB 40000 thousand, and the annual profit is RMB 80000
thousand. The investment recovery period is 3.5 years.
     V. Cooperation mode
     Sole investment, joint venture and cooperative venture.
     VI. Contact information
     Contact organization: Tianmen Investment Promotion Bureau
     Tel.: 0728-5224029
     Fax: 0728-5224025
     Postcode: 431700

                                                 59
Website:www.tmzsj.com
Contact: Xiong Shengjun Liu Changjun
E-mail: xsjun2004@126.com




                                       60
Agriculture
                  Further Processing of Fresh Lotus Root Products

     I. Project background
     Planting lotus roots has had a history of more than 1000 years in Wuhan. In 2001, the
planting area of lotus roots in Caidian District reached 150,000 mu with an annual output of over
220,000 tons. As a major area of characteristic agricultural economy in Caidian District, it has
been listed in the demonstration bases of Wuhan City. Due to short preservation time of lotus roots,
it is difficult to transport or store them. The Group has cooperated with Huazhong Agricultural
University and developed 9 kinds of convenient lotus root food, and the middle experiment has
been finished.
     II. Enterprise background
     Founded in 1997, Whuan Lianhuahu Group Co., Ltd. is an important leading agriculture
industrialization enterprise confirmed by the provincial government. It is also an enterprise of
comprehensive technology, integrating introduction and development of agricultural high-tech,
production of agricultural and sideline products, and processing and sales. The company has a
registered capital of RMB 123 million and specializes in lotus root and melon products with green
food certificates. And the company’s registered trademark ―Lianhuahu‖ is reputed in Hubei.
     III. Project scale and content
     The project will have requisitioned land of 120 mu, 17,000 m2 of new plant buildings,
warehouse, and comprehensive building of executive management, 3 production lines for
convenient lotus root food, 3 production lines for fresh lotus roots, dehydrated lotus roots and
comprehensive utilization respectively, and 30 salted lotus root ponds. Annual outputs: 10,000
tons of convenient lotus root food, 50,000 tons of fresh lotus roots, 30,000 tons of salted lotus
roots, 20000 tons of dehydrated lotus roots and 20,000 tons of raw material of lotus root starch.
     IV. Total investment and the composition
     The project will have a total investment of RMB 104,565,300, including fixed capital
investment of RMB 89,565,300 and current capital of RMB 15,000,000. Money mobilization:
public funds of RMB 10 million, self-raised fund of RMB 44,565,300, and bank loan of RMB 50
million.
     V. Benefit forecast
     The payback period after tax will be 6.43 years, the annual sales income will be RMB340

                                                 61
million, the financial internal rate of return will be 22.34%, and the average profit to investment
rate will be 24.15%. After the project is put into operation and investment is recovered, there will
be an annual net profit of RMB 25,000,000 and taxation of RMB 15,000,000.
     VI. Cooperation mode
     Joint venture and cooperative venture.
     VII. Contact information
     Investment promotion unit: Wuhan Lianhuahu Group Co., Ltd.
     Contact: Zhao Yifan, Cheng Yongxue
     Tel: 027-84929955     Fax: 027-84929977




                                                62
        Industrialization of In-vitro Cultured Calculus Bovis and
                     Development of Series Products

     I. Background information
     Calculus bovis is the most valuable raw material in traditional Chinese medicine and the
national Class I new medicine ―In-vitro Culcured Calculus Bovis‖is the essence of modern
biotechnology and traditional pharmacy. More than ten years of research and several thousands of
clinical tests have proofed that this new medicine is equivalent to high-quality natural calculus
bovis in component, therapeutic effect and product quality standard of Chinese Pharmacopoeia.
     Wuhan Dapeng Pharmaceutical Co., Ltd, located at Wuhan Across-Strait Science &
Technology Park, is a comprehensive pharmaceutical enterprise engaged in development,
production and selling of prepared Chinese medicine as well as chain operation. The company is
in possession of the total intellectual property of ―In-vitro Culcured Calculus Bovis‖, a national
important technological invention, and endeavors to become the largest pharmaceutical base of
calculus bovis in China. The company has 8 dosage forms, including raw material, suppositories,
capsules, tablets, granulas, oral liquid, sirup and pills and 48 national registered production
numbers, and has established a complete medicine production and management system and
received the national GMP certificate.
     II. Project scale and content
      (1) On the basis of the existing capability of 2,000 kg, continue to build workshops of raw
material and increase the output to over 5,000 kg. (2) Utilize modern pharmaceutical R & D
technology to test the effect of calculus bovis on nervous and immune systems, to carry out
treatment of critical illness such as cardio-cerebrovascular diseases and tumour, and to research
the function of calculus bovis on protecting health and prolonging life. (3) Based on relevant
research findings and taking in-vitro cultured calculus bovis as raw material, developing a series
of new products in the fields of medicine, health-keeping and beautification. (4) Choose a group
of calculus bovis prepared Chinese medicine with promising market, remarkable curative effects
and wide range of application, substitute ―In-vitro Culcured Calculus Bovis‖ for natural or
chemosynthetic calculus bovis, carry out the second development of present medicine with
national standard, improve the quality and therapeutic effects and reduce the cost. (5) Newly build
workshops of patches and concentrated pills.
     III. Investment conditions and cooperation mode
      (1) Cooperating and developing new calculus bovis medicines; (2) Establishing marketing

                                                63
system by domestic and internal cooperation. We sincerely seek for wide-rang and deep
cooperation, and hope to discuss various cooperation modes with would-be cooperators to jointly
promote the development of modern Chinese traditional medicine.
     VI. Contact information
     Bureau of Science and Technology of Wuhan Municipality            Science andTechnology
    Achievements Transfer Service Center
     Tel: 65692181    Fax: 65692192
     Contact: Wang Lifang, Qi Weiqun, Chen Jie




                                              64
                  Industrialized Development of Kudzu Roots

     I. Project background
     Kudzu root is a leguminous liana with multiple functions of medical application, edibility,
health keeping, etc., which is accepted by National Ministry of Public Heath. This plant is of
obvious therapeutic effect on protecting and treating high blood pressure, cerebrovascular disease,
and diabetes and so on. Ever since the year 2000, Wuhan Shimenshan Natural Food Co., Ltd. has
produced annually over 100 tons of kudzu root powder by means of physical refining. And
relevant products not only sell well in Japan and South Korea, but also gradually become popular
in domestic market. Since the supply of raw material is decreasing, our company plans to take
advantage of the extensive mountainous land of north hilly country to invest and establish kudzu
root base, and develop an operating mode of company plus base plus farmers to realize mutual
benefits.
     II. Development planning of the project
     We plan to build up a formal kudzu root production base with an area of 30,000 mu at
Changxianling and periphery of north Huangpi District in three years. After that, the enterprise
will have an annual output of 4,000 tons of kudzu root products, earn export exchange USD 20
million, produce 60,000 tons of fresh kudzu roots yearly, and realize RMB 60 million of gross
output value. Construction content: 1. infrustrature construction (water, electricity, road, etc.); 2.
land leveling; 3. introduction of germchits; 4. construction of germchit base; 5. transformation and
renovation of processing equipment; 6. advertisement.
     III. Total investment
     The total investment of the project will be RMB 100,840,000.
     IV. Location of project
     This project is located at the foot of majestic Mulan Mountain in the north of Wuhan, about
60 km away from the urban area, where beautiful scenery adds glamour to the environment.
     V. Contact organization
     Contact organization: Wuhan Shimenshan Natural Food Co., Ltd.
     Add: No. 13, Zhenshimen Street, Changxianling, Huangpi District, Wuhan City
     Chief of project: Shao Xianqiang
     Tel: 027-61518498 (Fax)




                                                 65
              Xiaogan Aerated Rice Wine Technical Reform Project
          I. Background information
         Xiaogan Sesame Chips & Rice Beverage Co., Ltd. is a key leading enterprise of agricultural
industrializaiton , with an old Chinese trademark. Now, the company has a 208 employees and
total assets of RMB 58,000,000 including fixed assets of RMB 49,000,000. Major products and
yearly capability: 5,000 tons of sesame chips and 6,000 tons of rice wine. Xiaogan Sesame Chips
and Shenlin Rice Wine are famous brands in Hubei Province. In 2005, the company realized sales
income of RMB 28.5 million and profit & tax RMB 2.4 million.
         II. Market analysis
         With the improvement of people’s level of consumption, the demand for tasty green food
with rich nutrition, unique flavor is on the increase. Abundant in various amino acids necessary for
human body’s metabolism, rice wine is of good flavor, nice taste and low alcohol content, and it
can satisfy one’s thirst. Therefore, this product is suitable to men and women of all ages, and the
consumption group is large in number. This technology is advanced in domestic field, and will
have a promising prospect.
         III. Project scale and content
         For this project, the rice wine will be deeply fermented, filtrated, and then aerated, packed
and sterilized. The annual output will be 20,000 tons of aerated rice wine.
         IV. Total investment and the composition
         The total investment will be USD 28 million, including USD 22 million of fix assets.
         V. Benefit forecast
         There will be USD 20 million of annual income, and the construction period will be 2.5
years.
         VI. Cooperation mode
         Joint venture, cooperative venture, or sole investment.
         VII. Project progress
         The project has been approved and feasibility report been finished.
         VIII. Contact information
         Contact organization: Xiaogan Sesame Chips & Rice Beverage Co., Ltd.
         Contact: Xiao Duanwu           Mobile phone:13807298696
         Add:No.9, Chenghuangtang, Xiaogan City           Post code: 432100
         Tel: 0712-2866588        Fax: 0712-2822582
         Website: www.xgmtmj.com

                                                   66
             Chestnut Further Processing Project with an Annual
                           Output of 20000 Tons

         I. Background information
        Dawu has more than 500,000 mu of chestnuts planting area with an annual output of over
10,000 tons. With the ever-increasing scale of planting, the output is growing year-on-year. The
main variety includes Xuanhuahong, Yaozili, Jiangshan No.2 and so on, which are rich in starch,
sugar, protein, fat, various amino acids, vitamins and microelements, and are superior dry fruits.
About 98% of the nutrition contained in them can be absorbed and used by human body, and these
dry fruits are of medical value.
       Local chestnuts become mature early and are characterized by big size and rich nutrition,
with an annual export amount of 3000 tons or so. Here, water and electricity are sufficient, raw
materials are abundant, and transportation is convenient. Now, there are two enterprises engaged
in purchasing, storage and processing of chestnuts, possessing 6 cold storage warehouses with a
capacity of 4000 tons.
         II. Market analysis
         Dawu chestnuts are well-known for big size and high quality, enjoying an international
fame of ―Eastern Pearls‖, and chestnut market is very promising.
         III. Project scale and content
         We plan to invite investor to develop chestnut further processing.
         IV. Total investment and the composition
         The total investment will be USD 20 million or decided by the investor.
         V. Cooperation mode
         Joint venture, cooperative venture, sole investment, selling products or other modes.
          VI. Project progress
          The project proposal has been approved and feasibility report been finished.
          VII. Contact information
          Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan
City
          Contact: Yan Dashuang, Deng Ling
          Tel: (0712)2832556
          Fax: (0712)2822944
          E-mail: xgshangwu@163.com

                                                  67
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                    68
                             Peanut Food Processing Project

         I. Background information
       Dawu has been reputed as ―a land of flowers and fruits‖ and listed as a test area of national
peanut food reform by Wuhan Institute of Oil Crops, Chinese Academy of Agricultural Sciences.
The annual peanut output in Dawu is 35,000 tons, topping county-level outputs in Hubei Province.
The peanuts here have high quality and are full and even in appearance, containing multiple
minerals.
         II. Market analysis
         So far, the test area has developed a series of products, such as superfine fragrant peanut
oil, reconciled oil, gingko peanuts, peanuts wrapped in dried red mud, peanut kernels, peanut
paste-powder and peanut drinks, and so on. These products are mainly sold to southeast coastal
countries and Southeast Asian countries. The project has a promising market and convenient
transportation conditions that the 107 National Highway, Jing-zhu Expressway and Jing-guang
Railway are all located near by. And relevant infrastructure is complete.
         III. Project scale and content
         We plan to introduce capital to enlarge the production scale of peanut food and develop
sales market.
         IV. Total investment and the composition
         The total investment will be USD 28 million or decided by the investor.
         V. Cooperation mode
         Sole investment or joint venture, or sell peanut series food, or produce salad oil, edible oil,
etc.
         VI. Project progress
       The project proposal has been approved and feasibility report been finished.
          VII. Contact information
          Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan
City
          Contact: Yan Dashuang, Deng Ling
          Tel: (0712)2832556
          Fax: (0712)2822944
          E-mail: xgshangwu@163.com
          Website: http://www.xgswj.com; http://www.xgswj.cn

                                                   69
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                   70
              Concentrated Fruit and Vegetable Juice Processing

        I. Background information
        Xiaochang County is rich in various fresh fruits and vegetables. It now has a base of fresh
fruits covering 200,000 mu land, which will be enlarged to 400,000 mu with a yearly output of
400 million kg to ensure sufficient raw material for juice processing.
        Hubei Lufeng Fruits Co., Ltd now has RMB 28 million of total assets, 6,000 mu of fruit
tree base and 86 employees. The company carries out an operating mode of production, supply
and selling, combines fruit tree planting and fresh fruit processing, and its products sell well
throughout China. The registered trademark is ―Lufeng Tianyuan‖.
       II. Market analysis
        At present, fruit and vegetable beverages have attracted much attention of investors and
consumers, and relevant processing industry has tremendous development potential. According to
global average level of consumption, the annual demand for fruit drinks is above 90 million tons,
so the market is very promising. Further processing of fresh fruits complies with national
industrial policy.
       III. Project scale and content
        Every year, 20,000 t concentrated juice series products will be produced.
       IV. Total investment and the composition
        The total investment will be USD 26 million, including USD 20 million of fix assets and
USD 6 million of liquid capital.
       V. Benefit forecast
        The annual income will be RMB 252 million, the payback period will be 3.5 years, and the
construction period will be 2 years.
       VI. Cooperation mode
         Joint venture, cooperative venture, or sole investment.
       VII. Project progress
The project has been approved and feasibility report been finished.
       VIII. Contact infomration
         Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan
City
         Contact: Yan Dashuang, Deng Ling
         Tel: (0712)2832556

                                                 71
Fax: (0712)2822944
E-mail: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                    72
                Production of Ginkgo Leaf Wine and Series Beverages

       I. Background information
       Hubei State-run Zhongzhouhuanyuan Farm is located in the hinterland of Jianghan Plain,
covering an area of 55.6 sq. km., with convenient transportation and complete infrastructure. The
farm possesses workshops and equipement for producing ginkgo leaf wine, license for production
and skilled workers, and is gradually developing ginkgo series drinks besides ginkgo leaf wine. It
has 2,000 mu of high-density ginkgo leaf garden with an annual output of 2,000 tons.
       The ginkgo leaf wine is a kind of new health wine. Good ginkgo leaves, Chinese hervs and
pure grain liquor are adopted as raw materials from which effective elements like flavone are
extracted, and then modern technology and traditional theory of invigoration as well as recipe are
combined to research and develop the product. The wine can expand cardio-cerebral blood vessels,
strengthen the flexibility of vessels, decrease blood viscosity, prevent and treat stroke and cerebral
thrombosis, promote hair growth, and improve blood circulation, and so on.
      II. Market analysis
       This product is a unique national-level health wine jointly developed by Hubei State-run
Zhongzhouyuan Farm and Wuhan Tongji Medical University and approved by National Ministry
of Public Health. This product has received health food certificate issued by the Ministry of Public
Health and patent for invention issued by National Intellectual Property Bureau. The potential
market is very promising.
      III. Project scale and content
       Expanding current production scale to 200 tons per year, gradually developing series
gingko beverages and exploring the market.
      IV. Total investment and the composition
       The total investment will be USD 40 million, including USD 32 million of fix assets and
USD 8 million of liquid capital.
      V. Benefit forecast
       The payback period will be 3.5 years.
      VI. Cooperation mode
       Joint venture, cooperative venture or other mode.
      VII. Project progress
     Now, besides ginkgo leaf wine, a series of ginkgo drinks have been developed. The farm has
     4, 000 mu of high-density gingko leaf garden with an annual output of 4,000 tons.

                                                 73
 VIII. Contact information
Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan City
Contact: Yan Dashuang, Deng Ling
Tel: (0712)2832556
Fax: (0712)2822944
E-mail: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei      Post code: 432000




                                        74
         Early-maturing Honey Peach Further Processing Project

        I. Background information
        Xiaogan early-maturing honey peach is among four famous peaches in China, belonging to
green and healthy food. This kind of delicious peach grows mature early, is big in size and rich in
juice, and endures storage and transportation, so is very popular with fruiterers and consumers.
The company possesses 22,000 mu of early-maturing peach base with a yearly output of 50
million kg. So far, more than ten high-quality varieties have been planted, and the products sell
well in over 20 provinces and cities in China, with very considerable economic benefit.
       II. Market analysis
        With the accelerated adjustment of agricultural structure, scale, production and quality of
early-maturing honey peach production have been improved year by year. The demand of fruit
consumption is developing toward a multiple trend like juice, and original early-maturing honey
peaches are far behind consumers’ need, which proofs a very promising market.
       III. Project scale and content
        We plan to introduce fund, technology and equipment to carry out early-maturing honey
peach further processing project.
       IV. Total investment and the composition
        The total investment will be USD 12 million, including USD 10 million of fix assets and
USD 2 million of liquid capital.
       V. Benefit forecast
       After the project is put into operation, there will be USD 20 million of annual output value,
with a payback period of 2.5 years.
       VI. Cooperation mode
        Sole investment, joint venture, cooperative venture or other mode.
       VII. Project progress
       The project proposal has been approved and feasibility report been finished.
       VIII. Contact information
         Contact organization: Bureau of Commerce (Investment Promotion Bureau)of Xiaogan
City
         Contact: Yan Dashuang, Deng Ling
         Tel: (0712)2832556
         Fax: (0712)2822944

                                                 75
E-mail: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                         




                                    76
          Tallowtree Further Processing Project with an Annual Output
                               of 5000 Tons

        I. Background information
        Dawu Chinese Tallow Factory takes up an area of 16 mu, including 4000 m2 of factory
buildings and warehouse. The factory has complete water and elelctricity facilities. In Dawu, over
8,000 tons of Chinese tallows are produced as the raw material. Here, the transportation is very
convenient that the distances between the factory and Jiangguang Railway, 107 National Highway
and Jingzhu Expressway exit are respectively 7 km, 5 km and 1 km.
       II. Market analysis
        The product is applicable to chemical industry, rubber, food, medicine, and so on, with a
wide sales range and potential market.
       III. Project scale and content
        The project will annually produce 1,060 tons of stearic acid, 160 tons of fatty acid, 2,100
tons of oleic acid, 200 tons of fatty acid pitch, 280 tons of glycerin and up to 5,000 tons of white
oil.
       IV. Total investment and the composition
        The total investment will be USD 22 million, including USD 17 million of fix assets and
USD 5 million of liquid capital.
       V. Benefit forecast
        The annual output value will be USD 30 million, the construction period will be 1 year,
and the payback period will be 3 years.
       VI. Cooperation mode
        Joint venture, cooperative venture, selling products or other mode.
       VII. Project progress
       The project proposal has been approved and feasibility report been finished.
       VIII. Contact information
         Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan
City
         Contact: Yan Dashuang, Deng Ling
         Tel: (0712)2832556
         Fax: (0712)2822944
         E-mail: xgshangwu@163.com

                                                 77
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                    78
                      Fish Protein Nutritional Drink Project

 I. Project background: At present, small-scale bases and factories for preliminary processing of
freshwater fish rather than large-scale bases for further processing have been established. For this
project, we plan to build the largest domestic further processing base of freshwater fish, form an
industrial chain of freshwater fish series products, and endeavor to become the first domestic
listed company in 5 to 8 years.
 II. Content and scale: The project will take up 111.8 mu of land, in which 48,000 m2 will be for
comprehensive raw material workshops, HACCP test center, intermediate sterile workshop, fine
mixture drying plant, crude product processing workshop, R&D center and other supporting
facilities. Sixty-two sets of advanced fish milk production equipment will be purchased for
producing fish protein nutritional drink and R&D of relevant products.
  III. Total investment and fund resources: The total investment will be RMB 100 million,
among which fix capital investment will be RMB 80 million and current capital will be RMB 20
million. The project funds come from capital raised by the enterprise and bank loans.
  IV. Economic benefit:After the project is finished, 400 posts will be created. The annual
output of fish protein nutritional drink will be 30,000 tons, new sales income will be RMB 180
million, and profit and tax will reach RMB 18 million.
     Key technology of the project: the research of freshwater fish active polypeptide was
accepted by Science & Technology Department of Hubei Province in October of 2006 and
regarded as a technical innovation with national advanced level.
  V. Cooperation mode: financing or other mode
  VI. Contact information
   Investment Promotion Bureau of Xiantao City
   Add: No.20, Mianyan Avenue, Xiantao City, Hubei Province
   Post code: 433000
   Contact: Wang Shaowu
   Tel: 86-0728-3312265           13997994501
   Fax: 86-0728-3222502
   Website: www.cnxiantao.com
   E-mail:hbxtzsj@163.com




                                                79
   Gynostemma pentaphyllum and Wild Potherb Processing Project

   I. Background information
     Shenlongjia gynostemma pentaphyllum base of ten thousand mu has been preliminarily
established, and at present, the plants are picked and processed. Shenlongjia also boasts a wide
variety of high-quality wild potherbs which are real organic food. However, owning to weak
production and processing capability, relevant product is single in variety and low in added value,
thus, it can not meet the demand of market. It is the essential tenet of this project to make use of
the blessed resources, produce more green food to satisfy consumers and thoroughly utilize local
resouces as well as promote their values. This pollution-free project is characterized by high
specialization and short payback period, and will play a positive role in promoting the progress of
agricultural industrialization, benefit obtained from ecological environment and income of
peasants. At present, Shenlongjia gynostemma pentaphyllum and wild potherb products have an
extremely high market demand both at home and abroad. In China, relevant products have been
sold to provinces and regions such as Beijing, Guangzhou, Shenzhen, etc; as for overseas market,
some importers in South Asia have cooperation intentions, but the existing production capability
can hardly satisfy their demands.
     II. Project scale and content
     The project will produce gynostemma pentaphyllum series products 40,000 tons with 12
varieties and 50,000 tons of wild potherb series products with 18 varieties every year. Patent
technology and 2 modern production lines will be introduced, and 5,000 m2 of production and
processing workshops will be built out.
     III. Total investment
     The total investment is RMB 115 million.
     IV. Cooperation mode
     Sole investment, joint venture.
     V. Benefit forecast
     After the project is constructed, there will be RMB 218.5 million of annual income and RMB
65 million of annual profit and tax. The profit ratio of investment will be 56.5% and payback
period will be 5 years.
     VI. Project progress
     This project proposal has been approved and carried out as a technical reform one.
     VII. Contact information

                                                80
Add: No.7, Lianfeng Street, Songbai Town, Shenlongjia Area
Contact organization: Investment Promotion Bureau of Shenlongjia Forest Area
Contact: Li Feng
Tel: 0719-3332239
Fax: 0719-3336426




                                         81
Chemical & Medical Industry
                            Fine Chemical Industry Project

     I. Project background
     As increase of grains relies on fertilizers, the latter must be increased synchronically.
Longkou has flat land, and is adjacent to Wuhan Yangluo Bridge in the east and Yangtze River in
the south. It is located in the interjunction of Xinzhou Daoshuihe River and Yangtze River, where
water and land transportation is very convenient. The periphery is vegetable base, and Wuhan
Zhongdong Chemical Co., Ltd here specializes in the production of effective compound fertilizers,
and the nuisance free sulphur-based ternary fertilizer will be an important contribution to the
Vegetable Basket Project of Wuhan. Hubei Province is famous for its phosphorite resource, and
the production of high-concentration compound fertilizers will meet the demands of the province
and the whole country, which is of vital significance.
     II. Location of project
     Important southeast town Longkou of Wuhan Yangluo Economic Development Zone is
selected as the project location.
     III. Project content
     Take advantage of the superior geographic condition of being close to Qingshan chemical
industry, take the effective compound fertilizer as the main product, and introduce and develop a
large quantity of fine chemical products such as paints, dyes, etc. Concentrating on developing
sulphur-based compound fertilizers, microbial feed additives, fine (biological) chemical products,
new high-class paints for buildings, vehicles and transportation, middle-and high-class dyes
(disperse dyes, reactive dyes and direct dyes), and rubbers, and so on. By the year 2010, the
productive capability of high-concentration compound fertilizers will reach 500,000 tons per year,
and the production of fine chemical products, paints, dyes and new-type enzyme additives will be
improved in the aspects of scale, class and benefit.
     IV. Total investment
     The total investment is about RMB 200 million.
     V. Market forecast
     After the project is put into production, there will be a new sales income of RMB 3 billion
and tax of RMB 200 million.
     VI. Cooperation mode

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Joint venture or cooperative venture
VII. Contact information
Contact organization: Development and Reform Commission, Xinzhou District, Wuhan City
           Wuhan Zhongdong Chemical Co., Ltd.
Tel: 027—86921557




                                       83
                          Sodium Metal Production Project

        I. Background information
        This project will be located in Silipeng Salt Chemical Industry Zone, Yingcheng. Its main
advantages are as follows: rich raw materials: Yingcheng has 28 billion tons of rock salt with a
capability of 3 million tons, 600,000 tons of soda ash and 400,000 tons of ammonium chloride;
convenient transportation: the chemical zone is 2 km away from urban center and has two railway
sidings. The arterial road connects Lang-Hang and Xiao-Xiang Expressways and Provincial
Han-Yi Highway; complete public facilities: electricity, water supply, drainage, pollution
discharge and communication; excellent service: the zone has established administrative
committee to provide service for enterprises in the zone, local residents and urban units
respectively; advantages in matching and future development: salt is the fundamental raw material
for developing ―three-acids and two-alkalis‖, salt chemical industry, chlor-alkali industry and
seasonings, and these industries will form an ever-extending industrial chain to match each other,
and then, the competitiveness of products will be improved.
        II. Market analysis
        Sodium metal is widely applied to fields such as spaceflight, aviation, machinery and
electronics, chemical industry, and so on. With the progress of society and development of
technology, high-tech products are more popular than ever before, and the demand for sodium
metal is ever-increasing both at home and abroad. The local rock salt resource is very abundant,
the cost of exploitation is low, and the competitive strength of relevant product is strong.
Therefore, this project faces a promising market.
        III. Project scale and content
        Establishing a production line and necessary equipment with annual outputs of 40,000t
sodium metal and 62,000t liquid chlorine, factory buildings and supporting office and living
facilities.
        IV. Total investment and the composition
        The total investment will be USD 50 million, including USD 40 million of fix capital
investment and USD 10 million of liquid capital.
          V. Benefit forecast
        The annual sales income will be USD 50 million and the profit will be USD 18 million.
          VI. Cooperation mode
        Sole investment, joint venture or other mode

                                                84
   VII. Project progress
  The project proposal has been approved and feasibility report been finished.
   VIII. Contact information
Contact organization: Bureau of Commerce (Investment Promotion Bureau) of Xiaogan City
Contact: Yan Dashuang, Deng Ling
Tel: (0712)2832556           Tax: (0712)2822944
E-mail: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Add: No.36, Chengzhan Road, Xiaogan City, Hubei
Post code: 432000




                                           85
             Petrochemical Product Further Processing Project

I. Background information


     JingMen Branch, SINOPEC now has a crude processing capability of 5 million tons per year,
and possesses 35 sets of oil refining and chemical production pants in the aspects of distillation,
catalytic cracking, catalytic splitting, catforming, delayed coking, fuel oil hydrofining, hydrogen
production with dry gas, lube oil hydrogenation, acetone benzol dewaxing, lube and paraffine
hydrofining, molecular sieve dewaxing and PP. JingMen Branch is among the backbone
enterprises with the most complete methods of petroleum refining and processing, and in 2006, its
annual sales income exceeded RMB 16 billion. Now, Jingmen Branch and Wuhan Branch have
become two major pillar enterprises in Hubei petrochemical industry, and after the completion of
capability expansion (6 million tons and 8 million tons respectivley), Hubei will boasts a crude
processing capability of 14 million tons, which is only inferior to several coastal provinces such as
Guangdong, Zhejiang, Jiangsu, etc. Wuhan’s 800,000-ton ethylene project has been listed in the
national Eleventh Five-Year Plan, some of which may be provided to upstream firms as raw
material and the rest may be used for producing 246,500 tons of mixed C4 every year. After
Jingmen Branch reach a capability of 6 million, it also can produce 330,000 tons of mixed C4
yearly. As a principal component of liquid gas, C4 has been used as domestic fuel for a long time,
and after the operation of Zhongwu natural gas line, natural gas has gradually been adopted as the
major household fuel. And the exploitation of Puguang Gas Field also addes to possible utilization
approaches of liquid gas. A new project of C4 deep-processing and comprehensive utilization will
be established in Jingmen, and Jingmen Branch may integrate Wuhan Branch’s byproduct C4 from
the 800,000-ton ethylene project and its own resources for comprehensive utilization while
supplying the latter naphtha, thus, a series of industrial chemicals in urgent demand may be
produced and the most favorable scale and benefit may be realized. Then, for Hubei Province, the
petrochemical industry chain can be extended effectively and additional values of products may be
improved to a considerable extent, which remarkably enhances the competitiveness of local
petrochemical industry.


     II. Market analysis
     The main products of the project are methyl metharcrylate (MMA), polypropylene (PP) and
methyl carbonate (DMC). MMA is mainly used in producing plexiglass, and also resin and

                                                 86
plastics modifier, treating compound, penetrant, second monomers of acrylics, sizing agent in
weaving, dye-printing (textile)auxiliaries and insulated materials for filling, and so on. PP is the
third major engineering plastics which is becoming more important in resin and plastics industries.
DMC is a new and environmentally friendly primary material of organic synthesis with wide
range of application, which may be used for synthesizing products with high attached values and
replacing phosgene, dimethyl sulphate, methyl chloride, methyl chloroformate, etc. DMC can be
applied to a variety of fields such as pesticide, medicine, engineering plastics, dye, electronic
chemicals and food additives, and so on. These products are all insufficient petrochemical
materials at home, and the equipment of the project is also advanced in China.
     III. Project scale and content
     After carrying out capability expansion of two sets of catalytic cracking units, JingMen
Branch, SINOPEC may produce 580,000 tons of liquid gas and 330,000 tons of mixed C4 every
year. The dry gas of these two sets of units may abstract over 20,000 tons of ethylene yearly. We
plan to take full advantage of the petrochemical raw material and apply current advanced
international technique to build three major units involving MTBE synthesis and cracking and
MMA combination unit, ethylene concentrating, conversion of olefins and PP combination unit,
and DMC unit as well as auxiliary public works. Production scale: 100,000 tons of MMA, 70,000
tons of polypropylene and 40,000 tons of DMC.
     IV. Total investment and the composition
     The total investment is RMB 3.12 billion including RMB 2.85 million of fixed capital
investment, in which 30% is capital in cash and the rest is bank loan.
      V. Benefit forecast
       After the project is put into production, the normal annual average sales income will be
RMB 2.435 billion and total annual average profit will be RMB 783 million. The financial internal
rate of return after tax will be 21.68%, and the payback period will be 6.09 years (including 2
years of construction period)
      VI. Cooperation mode
      Joint venture
      VII. Project progress
      The project proposal has been finished.
      VIII. Contact information
      Contact: Development and Reform Commission of Jingmen City Li Jian
      Tel: 86-724-2344368 (Fax)

                                                 87
Email:jmfggyk@126.com




                        88
                    Diammonium Phosphate Production Line Project

     I. Project background
     Huji Phosphorus Chemical Industry Park has the following advantages to establish a
diammonium phosphate production line with an annual output of 200,000 tons:
     1. Advantaged raw material resource. Huji Town, Zhongxiang City is rich in phosphorus
rock and has been known as ―phosphorus center of Central Plains‖, and the resource for
production is enough.
     2. Convenient transportation. Huji Town has the largest county/ city-level railway freight
station in Hubei, the Jing-Xiang Expressway traverses the town, and Hanjiang River transport line
about 5 km away from the planned industrial park. Therefore, the transport costs of purchasing
raw material and delivering products are apparently low.
     3. Huji Phosphorus Chemical Industry Park used to be a national base, where infrastructure
is complete and phosphorus chemical industry has been developed to a certain extent.
     II. Market analysis: With the implementation of national preferential polices for
agricultural industry, relevant industrial structure is being adjusted remarkably and financial
support is strengthened. The ever-increasing need of compound fertilizers, especially those
containing much nutritive elements, is a good opportunity for the development of diammonium
phosphate fertilizer. As the Central Party Committee has provided subsidiaries for productive
enterprises, the fertilizer market is very promising.
     At present, there are 4 enterprises with a capability of 600,000 tons per year and 7
enterprises with a capability of 240,000 tons per year in China. It is predicted that in 2005, there
will be 12 million tons of phosphate fertilizer and 40 million tons of chemical fertilizer in demand.
Now, there are 5 million tons of imported diammonium phosphates, and the need of such
high-concentration fertilizer is on the increase, so relevant market will be all the more flourishing.
     III. Project content:A diammonium phosphate production line with an annual output of
200,000 tons.
     IV. Total investment and the composition: The total investment will be RMb 88 million,
including RMB 63 million for equipment purchasing and infrastructure construction and RMB 25
million of current capital.
     V. Benefit analysis
     1. Cost estimation: the average production cost is RMB 1581 per ton, and the average selling
price is RMB 1760 per ton (including tax).

                                                  89
     2. Returns anaylsis: if the annual output is 200,000 tons, then the annual net profit will be
RMB 17.83 million and the total amout of tax and duties will be RMB 17.97 million. The
investment is feasible according to financial evaluation.
     3. Total payback period: 4.9 years (including the construction period)
     VI. Cooperation mode: sole investment or cooperative venture
     VII. Contact information
     Bureau Of Commerce, Zhongxiang City Tang Rulin           0724-4222584
                  Huji Phosphorus Chemical Industry Park        0724-4858323




                                                 90
                     Titanium White Powder Production Project

I. Project background
     Titanium white powder is a kind of satin white with a scientific name of titanium dioxide,
which is an important abio-chemical product. Due to its steady chemical property, high refractive
index and ideal particle size distribution, this product has good hiding power and tinting power and
is widely used in many fields such as paints, printing ink, plastics, rubber, paper, ceramics and
synthetic fiber, and so on.
     Hubei Xianlin Chemical Engineering Co., Ltd is a joint-stock enterprise with strong
technological support, and it can produce 100kt of 98% concentrated sulfuric acid and 100,000 t
byproduct medium-temperature and medium-pressure stream, which can satisfy the demand of
producing titanium white powder. In order to keep up with the market need, we plan to make use of
the abovementioned product and byproduct to extend the industrial chain and develop titanium
white powder industry.
II. Project scale and content
     In accordance with the analysis of domestic titanium white powder market and the economic
scale for best benefit, we plan to produce 20,000 tons of titanium white powder and 50,000 tons of
byproduct green vitriol.
III. Total investment and the composition
     The total investment is about RMB 230 million, including RMB 215 million of investment in
construction and RMB 15 million of current capital.
IV. Benefit forecast
     The annual sales income will be RMB 316.24 million, the annual gross profit will be RMB
195.02 million including RMB 64.63 million of income tax and RMB 130.66 million of net profit.
The payback period will be 1.98 years (not including the construction period). And the net present
value of the project will be RMB 362.45 million.
V. Cooperation mode
     Joint venture, cooperative venture, sole investment, being a shareholder or other mode.
  VI. Contact information
      Investment Promotion Bureau, Xiantao City, Hubei Province
      Add: No. 20, Mianyang Avenue, Xiantao City, Hubei Province
      Post code: 433000
      Contact: Wang Shaowu

                                                   91
Tel: 86-0728-3312265      13997994501
Fax: 86-0728-3222502
Website: www.cnxiantao.com
E-mail: hbxtzsj@163.com




                                        92
                Extraction of Rare Noble Elements form Brine

        I. Background information
     Project background: according to investigation of geological department, our city has 22.7
billion m3 of brine, among which usable connate brine reaches 10 billion m3. There are 4.96
million tons of Br-, 7.95 million tons of B2O3, 4396 million tons of LiCl, 170 million tons of KCl,
162,000 tons of I-, 54,000 tons of Rb2O and 40,000 tons of Cs2O, and their contents are KCl
12.8g/L, B2O3 0.59g/L, Br- 0.36g/L, I- 0.012g/L, LiCl 0.36g/L, Rb2O 0.04g/L and Cs2O 0.003g/L,
which is of development value. Enterprise background: Qianjiang Xianqiao Chemical Products
Co., Ltd is a private enterprise engaged in chlorine and alkali products. Now, the company has an
annual production capability of 30,000 t sodium hyfroxide.
     II. Market analysis
     Potassium ore is one of the four rare minerals; iodine is the raw material for producing
organic and inorganic iodide, and extraction of iodine from brine is in favor of environmental
protection; bromine is the raw material for producing various organic and inorganic Br
compounds, which is widely applied in medicine, agriculture, petroleum industry, etc. In military
field, lithium is the essential fuel component of h-bomb, rocket, nuclear submarine and jetfighter,
and in civil fields, lithium can be used to produce lithium cells. From the brine, microelements can
be extracted, and the following products such as potassium sulfate, boric acid, iodine and lithium
carbonate and Cs and Rb for producing photoelectronic cells, rockets and motor propellant can
replace imported products, which may ease the tense situation of insufficient supply; therefore, the
brine has a wide range of market.
     III. Project scale and content
   Scale of production: every year, 10,000 t potassium sulphate, 2,500 t boric acid, 250t iodine,
1,500t bromine and 500t lithium carbonate will be produced.
     VI. Total investment and the composition
     For this project, USD 7.50 million will be invested in relevant equipment, and the current
capital is USD 3 million, totalling USD 10.5 million.
      V. Benefit forecast
     After the project is put into production, annual sales income of USD 15.2 million will be
realized, and the payback period is 3.5 years.
     VI. Project progress
     The executive plan has been finished.

                                                 93
VI. Cooperation mode
Joint venture, cooperative venture
VII. Contact information
Contact organization: Investment Promotion Bureau, Qianjiang City, Hubei Province
Tel: 0728-6239520
Fax: 0728-6239720
Email: qjzhaosj@sohu.com
Post code: 433100




                                         94
                                     PTT Polyester Project

     I. Project content
     Producing 10,000 PTT polyester products every year to support the production of polyester
     filament.
     II. Background information
     China has been lacking chemical fiber raw materials for a long time, and up to 64% of them
were imported in 2003, which restricts the development of chemical fiber industry and even textile
industry. With the obvious increase of exported textile products, the gap between demand and
supply in connection with terylen and chemical fiber raw materials will be further widened, and
therefore the market is potential.
     Now, the capability of catalytic cracking of petroleum is 300,000 tons, and a capability of 1.5
million tons is under construction. Hence, the natural condition for chemical fiber production is
very good.
     The country has provided favorable conditions for foreign investment in chemical fiber raw
materials, which accelerates the development of overseas investment in China. PTT
(polytrimethylene terephthalate) is a new bulk fiber of the polyester family and has enormous
potential of development. This fiber is of strong dirt resistance and feels soft and dry, and is more
adaptable to textile processing than elastic fiber. It also can be used for producing non-woven
fabric or as raw material of other industries.
     III. Total investment and the composition
     The total investment is USD 30 million.
     IV. Economic benefit
     A sales income of USD 96 million will be increased every year, the profit is USD 9.15
million and the payback period is 4.3 year.
     V. Project progress
     The project proposal has been prepared.
   VI. Cooperation mode
     Sole investment, joint venture
   VII. Contact information
     Contact organization: Investment Promotion Bureau, Qianjiang City, Hubei Province
     Tel: 0728-6239520
     Fax: 0728-6239720

                                                 95
Email: qjzhaosj@sohu.com
Post code: 433100




                           96
                                   Salt Chemical Project

     I. Background information
     Tianmen City is rich in rock salt and mirabilite resources. It has 343,940,000 t rock salt,
concomitant 48.1 million t mirabilite and 410,000 t potassium ore, with a buried depth of 474 m to
1000m, which are storages approved by an official document numbered [1990]08 of the Reserves
Commission of HuBei Province. There are 23 industrial salt groups and 5 exploitation layers, the
average thickness of pure salt is 32.79 m, and the highest and lowest rock salt grades are
respectively 98.02% and 77.58% with an average value of 87.8%. This salt mine is a high-grade
and large one and is listed as the salt industry raw material base of Hubei Province. According to
exploration, Tianmen has 132 sq.km of mining area with storage of 18.4 billion tons. Our city has
planned to establish a high-standard salt industry park covering about 10 sq.km. The industrial
park will be located at Yuekou Town along Hanjiang River close to Sui-Yue (from Suizhou to
Yueyang) Expressway and Han-Yi (from Hankou to Yichang) Expressway, enjoying convenient
water-land transportation and superior geographic environment.
     II. Market analysis
     The main products including sodium hydroxide, PVC, MDI, TDI, chloroepoxy propane and
epoxy propane are all basic industrial raw materials. At present, these products are in great
demand both at home and abroad with a trend of ever-incrasing need, and therefore have a
promising market.
     III. Project scale and content
     Infrastructural construction of the industrial park, sewage disposal works, combined heat and
power works, salt exploitation and production works, and production engineering for producing
600,000 t sodium hydroxide, 470,000t PVC, 150,000t MDI, 120,000t epoxy propane and 50,000t
chloroepoxy propane every year.
     IV. Total investment and the composition
     The infrastructural construction will cost RMB 1.5 billion, and the investment in productive
items depends on the technology adopted by the investor.
     V. Benefit forecast
     The infrastructural construction will last 1 to 3 years, construction of productive items will
last 1 to 2 years, and the payback period will be 4 to 6 years.
     V. Cooperation mode
     Sole investment or cooperative venture and joint venture.

                                                  97
    VII. Project progress
    The infrastructural construction has been commenced by Hong Kong Gongjing International
Share Holding Group, and we welcome chemical industry investors from all over the world to
invest and develop in Tianmen Salt Chemical Industry Park.
    VIII. Contact information
    Contact organization: Special Department of Salt Chemical Industry, Investment Promotion
    Bureau, Tianmen       Fax: 0728—5224021
    Tel: 0728—5224025       Contact: Xiao Jun-an   Zhang Jinping
    Email: tianmenyhgzs@163.com




                                              98
            Development and Production of Natual Astaxanthin

     I. Background information
     Jingzhou Natural Astaxanthin Company specializes in cultivating haematococcus pluvialis to
produce astaxanthin with a large scale, which applies biotechnology to process natural medicine.
Astaxanthin is a kind of fatsoluble carotenoid and super strong antioxidant whose capability is 10
times that of natural β-carotene. It is widely used in aquiculture (salmons and trouts at present),
feed additive, food additive and cosmetic additive, and can obviously improve human body’s
immunity and is of anti-fatigue function. Through years of research, the company has achieved a
series of technical breakthroughs in seed selection, screening of culture medium, optimization of
cultivation conditions, pollution prevention technique and production process improvement. From
August of 2003 to March of 2004, the company conducted medium trial and obtained anticipated
effect, and the technical indicators reached international advance level. The company has mastered
the key pollution prevention technique which has puzzled foreign enterprises of the same trade,
and this technique is a guaranty for adopting semi-isolated and open cultivation systems. Natural
astaxanthin project is one of the important projects of Jingzhou City in 2004, for which Hong
Kong PASHUN Group and Wuhan Plant Research Institute, Chinese Academy of Sciences has
carried out technical cooperation. At the same time, Jingzhou Natural Astaxanthin Company has
been established.
     II. Market analysis
     Currently, only four companies in the world make use of haematococcus pluvialis to produce
astaxanthin, and due to their small production scales, the demand far exceeds the supply.
Therefore, this project is of good developing potential.
     III. Project scale and content
     Taking advantage of the pollution (fungi, zooplanktons and other algae) prevention technique
to develop natural astaxanthin series products. After the project is put into production, the
enterprise will be the first to cultivate haematococcus pluvialis for producing astaxanthin with
large scale in China.
       IV. Total investment and the composition
   The total investment is RMB 172 million, and the project will be finished in four phases. A
capital of RMB 28.5 million will be invested in the first phase, among which RMB 800,000 is
national innovation fund, RMB 140,000 is provided by Jingzhou Financial Bureau, and RMB
27.56 million is raised by the enterprise itself; for the second phase, RMB 40 million will be

                                                 99
invested to enlarge the scale of cultivation; for the third phase, RMB 80 million will be invested
for further processing and construction of GMP workshops; and in the fourth phase, RMB 23.5
million will be used to improve the production environment and supporting facilities of the
enterprise.
     V. Benefit forecast
     After the first phase is finished, there will be an annual income of RMB 6 million; after the
second phase, RMB 80 million; and after the third phase, RMB 300 million. After the project is
put into production, there will be an annual income of RMB 400 million.
     VI. Cooperation mode
       Joint venture and stock right transfer
     VII. Project progress
     So far, the main production facilities of the first phase have been completed, and the trial
operation is carried out.
     VIII. Contact information
     Contact: Yang Hui
     Tel: 13886628912
     Add: Dongfang Avenue, Jingzhou High-Tech Industrial Development Zone
     Post code: 434000
     E-mail:info@asta.cn
     Website: www.asta.cn




                                                 100
                                      Pyridine Project

     I. Background information
     Of heterocyclic compound, pyridine is the most widely developed and applied. Pyridine and
its derivatives are key intermediates in the fields of pesticides, medicines, dyes, chemical industry
concerned with products for daily use, aromatizers, feed additives and rubber chemicals, etc., and
Chinese enterprises engaged in the production of pyridine and its derivatives have been inferior to
foreign enterprises on account of lacking advanced technology and corner on the market. The
global productive capability now is about 100,000 tons per year, among which over 90% pyridine
is produced with synthetic method. The biggest manufacturers are Reilly Company in America
and Belgium, whose capability is more than 30,000 tons per year. Before the year 2000, traditional
separation of coal tar was the prevailing method in China, with an output of less than 200 tons per
year and many admixtures, which seriously restricted the development and production of lower
products. SANONDA Group Company is among 520 key enterprises of the country, and its has
established Enterprise Technology Center with National Authorization, National Engineering
Research Center of Chiral Medicine and Chiral Pesticide Base, and National Engineering
Research Center of Microbe Pesticides, which are approved by National Development and Reform
Commission. SANONDA is in possession of various auxiliary facilities for public works and
strong technical support, which forms a sound foundation for technical innovation and reform.
The core enterprise of the group is SANONDA (Hubei) Co., Ltd, one of the leading enterprises of
national pesticide industry.
     II. Market analysis
     At present, very few enterprises have preliminarily started to produce pyridine series
products with small scales, and supply falls short of demand both in domestic and international
markets. An annual output of 10,000 tons of pyridine only can satisfy 20% of national demand,
and the successful development of this project will bring about a domestic technology
breakthrough in producing pyridine with the synthetic method.
     III. Project scale and content
     Adopting special tubular reactor and high efficiency catalyst and taking aldehyde,
formaldehyde and ammonia as raw materials. And newly establishing a set of production
equipment with an annual output of 10,000 tons of pyridine and derivatives.
       IV. Total investment and the composition
     The total investment is RMB 260 million including RMB 200 million for infrastructural

                                                101
construction.
      V. Benefit forecast
     For an annual output of 10,000 tons of pyridine, there will be RMB 500 million of income
increase and RMB 150 million of increase in total tax and duties. The internal rate of return will
be 22% and the payback period will be 3.2 years.
     VI. Cooperation mode
     Joint venture, transfer of technology, equity participation, etc.
     VII. Contact information
     Tel: (0716)8208586,8208919
      Fax: 0716)8208395




                                                 102
    Basic Polymer of Silicone Rubber Reinforced by Nano-SiO2 and
              Industrialization of the Filled Compound

     I. Project background
     The project of basic polymer of silicone rubber reinforced by nano-SiO2 and industrialization
of the filled compound is a patent scientific and technical achievement researched and developed
by Science and Technology Park (Suizhou) of Wuhan University. For this project, we have mature
technique of synthesizing vulcanized silicone rubber at room temperature and high temperature.
Mass production has been carried out and raw materials can be purchased at home. And we also
can conduct processing by using DMC. We adopt a unique preparation technique to improve
rubber stock’s property and crosslinked rubber’s property of oil resistance and nonresistance to
solvents and reduce the costs, and therefore the project is of strong competitive power.
     II. Project content
     In this project, polysiloxane and modified nano-SiO2 are taken as reinforcing agents to
prepare transparent or white basic polymer. Users may mix the basic polymer with filling,
compounding chemicals, crosslinked agent, catalyst, etc. to produce vulcanized silicone products
at room temperature or high temperature according to their needs. And uncured compound may
also be produced for different fields, such as building, water conservancy, transportation,
machinery, electronics and electric power, and so on.
     III. Market demand
     Currently, the annual sales income of global organosilicon industry has reached USD 7.5
billion or so, and that of silicone rubber industry takes up USD 3 billion, while China only
occupies less than 10% of the market share, so there still is large development space. Now, the raw
materials of silicone rubber processing in China are mainly imported, and this project is a
technical breakthrough that will change the present situation. In this year, the total demand for
silicone rubber is 50,000 tons in China, which are applied to produce middle and high class
rubbers. Currently, the shortage of such products is serious in domestic market, followed by
ever-rising prices. And with the replacement of low class rubber by middle and high class rubbers,
such demand will increase several-fold. It is predicted that the need of basic polymer in China will
increase by 20% every year by the year 2010.
     IV. Project investment
     The total investment is RMB 96 million.
     V. Benefit forecast

                                                103
    The annual output will be 10,000 tons, the annual sales income will be RMB 260 million, and
the profit and tax will be RMB 80 million.
    VI. Cooperation mode
    Joint venture and cooperative venture
    VII. Contact information
     Contact organization: Bureau of Commerce, Suizhou City, Hubei Province
     Add: F2, Administrative Building, Chengnan New Zone, Suizhou City, Hubei Province
     Tel: 0722-3596032
     Fax: 0722-3596032




                                             104
          Prednisone Acetate and Comprehensive Preparation Project

      I. Background information
      As early as 1970’s of the 20th century, Yunxi had formed the processing of raw material
(mainly turmeric) of hormone medicines and developed a series of products such as saponin,
diolefine and progesterone, and so on. Yunxi has good industrial conversion conditions and
prospect of deep processing, and is in possession of advanced technology, equipment and human
resources, which has laid a firm foundation for the sustainable development of turmeric industry.
      II. Market analysis
      Due to the successful cooperation with American MG, this project may makes use of the
FDA international passport and superior resources of Yunxi to compete in the hormone medicine
market both at home and abroad.
      The cooperation with MG enables this project to enter occident market and keep up with
international practice. The combined advantage of raw material and preparation, domestic market,
technology, talents and advanced management concept should be integrated to successfully obtain
anticipated market share.
      Target market: 40% international sales volume; 60% domestic sales volume, and about 10%
of market share.
      III. Project scale and content
     Every year, 100 tons of prednisone acetate raw materials, 3 million bottles of powder and
injection preparation and 15 million effervescent tablets will be produced for the project. Expand
the capability of raw material medicine workshops so that other cortin raw materials may be
produced with the same quantity of prednisone, and the utilization rate of equipment will reach
100%. The workshops of injection preparations and tablets should be constructed in strict
conformity with GMP and FDA standards so as to meet the requirement of international
competition.
      IV. Total investment and the composition
      The total investment is RMB 293 million, equaling USD 35 million, among which RMB
148.4 million (USD 17.727 million) is fixed capital investment including RMB 144.4 million
(USD 17.2492 million) of static investment and RMB 148.4 million (USD 17.727 million) of
dynamic investment, and RMB 144.6 million (USD 17.273 million) is current capital investment.
      V. Benefit forecast
     After construction, the project will create an annual average profit of RMB 51,730,200.

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     VI. Cooperation mode
    Joint venture and cooperative venture
    VII. Contact mode
      Contact organization: Bureau of Economic Cooperation & Foreign Trade, Yunxi County,
Hubei Province
      Contact: Chen Bin
      Tel: 0086-719-6227181, 013707286207
      Fax: 0086-719-6225772




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Light Industry and Textile
                                  Box Board Paper Project
        I. Background information
        Packing industry grows rapidly along with the rapid economic growth of our country. The
demand for packing paper board increases greatly, especially for middle and high class kraft liner
board. The demand for middle and high class box paper board of Wuhan is 500,000 ton, but the
supply of such product is only 150,000 ton. The gap is 350,000 ton. If a project of class A box
board paper with capacity of 300,000 ton/year can be put into operation, it may meet this gap.
        II. Project Location
        Yangluo Street, Xinzhou District, Wuhan
        III.Project description
        This project is planned to introduce class A box board paper production line with production
capacity of 300,000 ton/year.
        IV. Total investment
        The total investment is 200,000,000 yuan, in which, construction cost is 40,000,000 yuan,
equipment cost 80,000,000 yuan, installation cost 30,000,000 yuan and other cost 50,000,000
yuan.
        V. Market forecasting
        The sales revenue of this project may be 300 million yuan after its operation and the annual
profit and tax may be 74 million yuan.
        VI. Cooperation mode
        Joint venture or cooperative venture
        VII. Contact information
        Contact: Wuhan Economic Committee of Xinzhou District
                 Wuhan Changjiang Paper Co., Ltd. in Yangluo
        Tel: 027-86921206




                                                  107
              Waste Paper Deinking Pulp Production Line &
           Production-expanding Technology Innovation project

     I. Background information
     The paper industry has evolved from the traditional mode of ―from resource to product and
then to waste‖ to such recycling economy as ―from resource to product and then to resource‖
during the new historical period of economic and social development of our country. The
―recycling economy‖ has integrated into the mainstream economic concepts and will exert
profound influence on the future economic growth of our country. The government will carry out
some preferential policies supporting recycling economy. Wuhan Bige Paper Development Co.,
Ltd. has, in accordance with the demand of self-development and the trend of current paper
market, organized technicians to investigate many domestic companies of the same industry and
carry out relevant research for several times. Finally, they promote 100 T/D waster paper deinking
pulp production line and 50,000 T/Y technology innovation project and has carried out feasibility
research on this project.
     II. Enterprise Background
     Wuhan Bige Paper Development Co., Ltd. is a private enterprise, founded in 2002, located in
Hannan Economic Development Zone of Wuhan, with registered capital of 30 million yuan,
specialized in the manufacture and sales of middle and high class fine paper, packing paper and
inner packing material of paper-model industrial product.
     III. Project description and scale
     In accordance with the planned scale and the area of vacant premises, with consideration of
scale effect, the increased production capacity of deinked pulp is 100 t/d, to meet the requirement
of increased production of 100 t/d high class fine paper and the original production of 30t/d
two-sided offset paper.
     IV. Total investment:
     The total investment is RMB 164,021,500.
     V. Cooperation mode:
     All kinds of cooperation modes are applicable.
     VI. Contact information:
     Contact organization: Hannan District Foreign Trade and Economic Cooperation Bureau of
Wuhan
     Contact: Liu Yanjun

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Tel: 027-848552221    027-84851336(Fax)   13986119297
E-mail: lyj9297@126.com




                                 109
         High-grade Textile Fabric Technology Innovation Project

     I. Background information
     Xiangfan No. 3542 Textile General Factory is affiliated to Xinxing Ductile Iron Pipes Group
Co., Ltd., a large-scale state-owned group enterprise. Its business covers: yarn and cloth of various
density and patterns and garment. Its leading products are high count high-density cotton fabric
and new type textile fibre fabric. It has been granted the direct import and export right and boasts
120,000 cotton spinning spindles (100,000 spindles for superior-combing) and 622 sets of cloth
machine (in which, 301 sets of broad width air-jet weaving machine and 321 sets of projectile
looms). Its annual production capacity of cotton yarn is over 30,000 tons and over 100 million
meters of grey cloth. The current total assets of the factory is 0.44 billion yuan, asset-liability ratio
57.15%. The sales revenue of 2005 was 0.456 billion yuan, profit 15,160,000 yuan and tax
35,720,000 yuan.
     Broad width domestic textile product, high-density cotton fabric and new type textile fibre
fabric have been listed in ―the 11th five-year plan‖ of the factory as its highlights. The factory aims
at further expanding the export range and ratio, putting emphasis on the production and sales of
high-grade domestic textile fabric with 80s-160s yarn count and density of over 700 thread/inch
and new type textile fiber fabric and making export ratio up to 80%. Meanwhile, they seek
cooperation partner actively, based on the advantage of ―Fulong‖ brand. According to their plan,
they shall make great effort to change the product structure and focus on further processing
product, finished product and exquisite product to meet the requirements of top-class market,
shape a preeminent enterprise integrating research and development, production and sales and
transform the production enterprise to the processing trade enterprise. The way of economic
growth shall transfer from quantity-oriented to brand effect. The production scale specified in ―the
11th five-year plan‖ is 200,000 spindles and 500 air-jet looms with broad width, in which 80% are
for the production of superior combing yarn without knot, 30 automatic winding machines, in
which 90% are for the production of shuttleless cloth.
     II. Market analysis: There is a relatively large gap in the market of high grade high count
high density domestic textile product and new functional textile fabric. Large quantity of such
product is imported from abroad each year. With high profit, they are the trend of the development
of textile products and belong to the encouraged project of the country. 80%of the products will be
exported. The prosperity of its market is predictable.
     III. Project scale and content

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     (1)The subproject of expanding production to 20,000 spindles of spun yarn: Making use of
the original premises and adding 3 combing machines, 1 lap draw frame, 2 Speed frames, 48 new
type spinning frames and 5 automatic winding machines. The fixed assets investment of this
sub-project is 20,000,000 yuan.
     (2)The subproject of 80,000 spindles of yarn: Making use of the land planned for this
subproject to build a new premise for spinning with floor area of 25,000 m2, and installing
equipment matching with the capacity of 80,000 spindles of yarn, namely, superior combing pure
cotton high count yarn (above JC80s). The fixed assets investment of this sub-project is
135,050,000 yuan.
     (3)The subproject of upgrading with air-jet loom: Making use of the original premise,
installing 158 air-jet looms with width of 340cm or 280cm, 1 exported starching-yarn machine, 2
imported automatic reed drawing-in machines and 4 imported air compressors with capacity of
60m2. The product of this subproject is high grade domestic decorative textile fabric with
super-broad width and the fixed assets investment of this sub-project is 88,000,000 yuan.
     IV. Total investment and the composition: Total investment of this project is 324,230,000
yuan, in which fixed assets investment is 243,050,000 yuan, (use of foreign currency: USD
14,580,000), working capital investment 66520000 yuan and interest in the construction period
14,660,000 yuan.
     V. Benefit forecasting: After the project being put into operation, the annual production of
high count superior combing yarn (above JC80s) is 3,590 ton, high grad high count high density
grey cloth 6,980,700 m2, annual sales revenue 344,949,000 yuan, in which the sales revenue and
profit of high count superior combing yarn is 137,500,000 yuan and 1,386,000 yuan respectively
and the sales revenue and profit of high grade high count high density grey cloth is 207,449,000
yuan and 12,062,000 yuan respectively.
     The average annual profit is 13,448,000 yuan and the payback period of investment is 6.1
years.
     VI. Cooperation mode:Joint venture, cooperative venture and equity financing
     VII. Contact information:
     Contact organization: Xiangfan Municipal Economic and Trade Committee
     Contact: Xu Ledan, Tang Yongzhong
     Tel: 0710-3231645 13986385042




                                               111
  Technology Innovation Project of the Whole Flow of Worsted Yarn
                         Production Line

    I. Background information:
    Hubei Yincheng Textile Co., Ltd., founded in Oct. 1987, employs 1,068 staff, in which 216
technicians, governing 4 management departments and 2 branch factories, with total assets of
USD 15 million and production capacity of 75,000 spindles. Its leading product is high grade
non-knot yarn. Its products have been rewarded the titles of ―Top 10 Chinese Brand‖, ―The Most
Popular Products of Hubei‖ and ―Famous Brand in Hubei‖. The annual sales amount is USD 20
million, profit and tax USD 1.88 million and it is among the first rank of the industry in the
province and even in the country. It is among the top 50 enterprises in the textile industry of the
whole country in consecutive 10 years for its economic benefit. During the period of ―the 11th
five-year plan‖, the company will fully take the advantage of mechanism innovation to speed up
the technical innovation, adjust the structure to produce high grade products, explore the export
market, set solid foundation to further enhance the quality, develop the production capacity which
will made the annual sales amount to be USD 37.5 million, profit and tax USD 3.75 million and
transform the enterprise from ―small-scale but well-managed‖ to ―middle-scale and strong‖ and
―large-scale and strong‖.
    II. Project scale and content: 2 sets of domestic cleaning-combing equipment, autoleveler
device for levelling large-roll draw frame with frequency conversion in the drawing and roving
process, 3 sets of domestic new type combing machines with large production capacity and 7
automatic winding machines will be put into service. The whole flow of 55,000-spindle worsted
yarn production line will be upgraded. After the project being put into operation, it can greatly
promote the competitiveness of its products in the market. And the company may produce further
processed products with high added value and enhance the integral benefit and set solid
foundation for earning foreign exchange through export.
    III. Total investment and the composition: The total investment of this project is USD
10,750,000 and working capital loan USD 2,520,000. After the construction of this project is
completed, the enterprise will apply to the bank for working capital loan.
    IV. Benefit forecasting: The construction period of this project is 2 years. The predicted
annual sales revenue increased after its operation is USD 12,500,000, profit increased USD
750,000 and tax USD 620,000. The economic benefit is promising.
    V. Cooperation mode: Joint venture, cooperative venture, sole investment

                                                112
VI. Project progress: The first-term construction of premise has been completed. The
equipment is under negotiation and installation.
VII. Contact information:
Address: 100 Fenyang Road, Gucheng County, Hubei
Legal representative: Wang Zeshi             Fax: 0710-7333788
Email: Hbyfgs@xf.hb.cninfo.net               Zip code: 441700




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            High Grade Fabric and Garment Production Line Project

       I. Background information
       Hubei Xiaomian Textile Industry Co., Ltd. (credit grade AAA enterprise of China)
       II. Market analysis
       After joining WTO, the textile and garment industry of the country has entered its heyday
with rapid growth and increasing export.
       In recent years, Xiaomian Company has upgraded its textile production line with high
starting point and large investment for the whole flow. The grade of product quality is advanced
nationwide. With greatly increasing export orders, the market is promising, especially for high
grade shuttleless cloth and wrinkle free garment.
       By making use of partial existing facilities, technology and market network of the
company, partial investment of the project may be saved and it may enjoy strong matching
capacity.
       III. Project scale and content
       By introducing 200 advanced air-jet looms and matching equipment, high speed lockstitch
sewing machine and 4 garment production lines mainly producing wrinkle-free garments from
abroad, the production capacity will be 24 million meters of high grade broad width grey cloth
fabric and 2.4 million pieces of high grade leisure clothing per year.
       IV. Total investment and the composition
       The total investment of the project is USD 65 million, which is supposed to be fully
foreign invested.
       V. Benefit forecasting
       The annual sales amount of the project is USD 195,000,000 and the payback period of the
investment will be 3.8 years.
       VI. Cooperation mode
       Joint venture, cooperative venture or other mode
        VII. Project progress
     The project has been approved and registered and its feasible research has been completed.
        VIII. Contact information
    Contact Organization: Xiaogan Municipal Bureau of Commerce (Investment Promotion
Bureau)
     Contact: Yan Dashuang, Dengling


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Tel: (0712) 2832556
Fax: (0712) 2822944
Email: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Address: 36 Chengzhan Road, Xiaogan City, Hubei
Zip code: 432000




                                       115
                 Automatic Adhesive Tape Production Line Project
     I. Background information
     Xiaogan Shu’s Adhesive Tape Co., Ltd., affiliated to Xiaogan Shu’s (Group), is a private
enterprise, specialized in the production and sales of industrial adhesive tape series product and its
leading product has won the title of ―Quality Product of Hubei‖. The company employs 517 staff
and the total assets of the company is 41.24 million yuan. In 2005, its sales revenue was 56.21
million yuan and profit and tax 1.1 million yuan.
           II. Market analysis
     The technology applied in the product is among the national leading technologies and the
demand for the product is beyond its supply.
     III. Project scale and content
     The project of automatic adhesive tap production line is planned to be built with foreign
capital.
     IV. Total investment and the composition
     The total investment is USD 22 million, in which fixed assets investment is USD 17 million
and working capital investment USD 5 million.
     V. Benefit forecasting
    Upon assessment, the annual sales revenue of this project is USD 18 million after it being put
into operation. The construction period is 1 year.
     VI. Cooperation mode
     Joint venture, cooperative venture or other mode
     VII. Project progress
     The project has been approved and registered and its feasible research has been completed.
    VIII. Contact information
    Contact Organization: Xiaogan Municipal Bureau of Commerce (Investment Promotion
Bureau)
     Contact: Yan Dashuang, Dengling
     Tel: (0712) 2832556
     Fax: (0712) 2822944
     Email: xgshangwu@163.com
     Website: http://www.xgswj.com; http://www.xgswj.cn
     Address: 36 Chengzhan Road, Xiaogan City, Hubei
     Zip code: 432000


                                                 116
    High Grade Fabric and Garment Production Line Project

I. Background information
     The leading trend of modern cotton textile product develops toward fine count high density
thin fabric and coarse count thick fabric. After joining WTO, the textile and garment industry of
the country has entered a new development period with rapid growth of export. This industry is
one of the five pillar industries of Xianning City. The project may extend the industry chain and
develop the garment industry with the new production line built in Xianning, which is endowed
with abundant material, by means of introducing famous garment enterprises and integrating
advantageous resources. It may keep up with the advanced technology of cotton, bast fiber,
bamboo fiber textile industry and enhance the added value of the product by big margin as well.
II. Market analysis
     In 2006, the textile industry of our country kept its rapid growth and enhanced its economic
benefit prominently in spite of many adverse impacts such as, new trade barriers on Chinese-made
textiles set by EU and the United States, worldwide increase of price of raw material and
petroleum, enlarging gap of cotton and increasing cost of labor resource. Last year was the first
year in which new textile trade agreement was signed between our country and EU and between
our country and the United States, nevertheless the growth rate of garment export and stable
growth trend was sustained, regardless of many drawbacks the garment industry of our country
encountered, such as new trade barriers set by EU and the United States, RMB appreciation and
increasing price of energy resources. The export to EU and the United States decreased greatly in
comparison with the previous year, whereas the export to the countries not setting new trade
barriers increased obviously, which advanced the continuous and rapid growth of the export of
textile and garment on the whole. It manifests that the textile and garment industry remains a
dominant industry in the foreign trade of our country and the textile export trade of our country is
moving into a better course. The export structure is changing gradually, which is a good trend.
III. Project scale and content
     By introducing 250 advanced air-jet looms and matching equipment, high speed lockstitch
sewing machine and 4 garment production lines mainly producing wrinkle-free garments from
abroad, the production capacity will be 25 million meters of high grade fabric and 2.5 million
pieces of high grade leisure clothing per year.
IV. Total investment and the composition
     The total investment of this project is 150 million yuan, in which fixed assets investment is

                                                  117
120 million yuan (including 70 million yuan for imported equipment) and working capital
investment 30 million yuan.
V. Benefit analysis
     After the project being put into operation, the annual sales revenue is 310 million
yuan and profit 38 million yuan. The payback period of investment is 4 years.
VI. Cooperation mode
    Sole investment, joint venture
VII. Project progress
     So far, preparations concerning feasibility analysis, material resources, project
location and preferential policies have been completed.
VIII. Contact information
    Contact organization: Xianning Investment Promotion Bureau, Hubei, China
    Contact: Huang Sisheng
    Tel: 86-715-8319165/8126117
    Fax: 86-715-8319165/8126117
    Email: xnszsj@163.com




                                            118
Production Line of Bamboo Fibre and Blend Fabric of Bamboo Fibre
                       and Cotton or Bast

    I. Background information
     Bamboo fiber is a kind of green material, drawn from bamboo through h i-tech. It
may be blended and interwoven with different natural fibers and chemical fibers by
various proportions, in replacement of o rganic fiber, jute, sisal and the like. It is
extensively applied in the blend fabric of a variety of natural fibers such as cotton, wool,
silk and bast. Xianning is a well known ―home of bamboo‖ in our country. At present, it
boasts 1.5 million mu of bamboo land with 230 million pieces of bamboo, which is the
abundant resource for the raw material of this project. This proje ct is an important part
of the strategy of integrated exploitation of bamboo resource, which is rendered very
preferential policies.
    II. Market analysis
     The bamboo fiber fabric has the features of good air permeability, instant water
absorbency, strong wear resistance, sound dyeability and plasticity. The cost of bamboo
fiber is low, whereas its sales price is relatively high, since its target market is middle
and high grade garment fabric. This natural blend fabric complies with the development
trend of textile industry and has promising market prospect.
    III. Project scale and content
     The annual production capacity is 500 ton of bamboo fiber and 13 million meters of
bamboo fiber and cotton or bast blend fabric.
     IV. Total investment and the composition
     The total investment is RMB 175,720,00 (about USD 21,170,000 million), in which
fixed assets investment is 125,720,000 yuan and working capital investment 50,000,000
yuan. The investment on bamboo fiber item is 28,760,000 yuan, and that on bamboo
fiber and cotton or bast blend fabric item 146,960,000 yuan.
    V. Benefit analysis
     After the project being put into operation, the annual sales revenue is 342.5 million
yuan, total cost 269.5 million, tax and associate charge 27.4 million yuan, total profit
45.60 million yuan, profit after tax 30.55 million yuan. The predicted payback period of
investment is 5.2 year, including 1.5 years of construction period.



                                            119
    VI. Cooperation mode
    Sole investment, joint venture
    VII. Project progress
    So far, our city has the basic conditions for the project and the preparations
concerning project approval, feasibility analysis, project location and preferential
policies have been completed.
    VIII. Contact information
    Contact organization:Xianning Investment Promotion Bureau, Hubei, China
    Contact: Huang Sisheng
    Tel: 86-715-8319165/8126117
    Fax: 86-715-8319165/8126117      Email: xnszsj@163.com




                                          120
              Textile Printing and Dyeing Industry Park Project

    I. Background information
    At present, the printing and dyeing industry of Hubei and its surrounding areas is very weak.
The fabric for garment processing is basically purchased from coastal developed areas, which
severely affects the development of the garment industry of central China. In accordance with ―the
11th five-year plan‖, a printing and dyeing industry base is supposed to be built in Jingzhou.
Hongguang Wastewater Treatment System has been established in the Central China Textile
Industry Park in Jingzhou Development Zone with the investment of 180 million yuan, which has
the sewage treatment capacity of 100,000 ton/day and is an advantageous condition for
establishing a printing and dyeing industry base.
    II. Market analysis
    The textile industry of Jingzhou urban area and its surrounding counties is developed and has
solid foundation and requires the matching industry of printing and dyeing to extend the industry
chain. Therefore its market is promising.
    III. Project scale and content
      The project is supposed to occupy an area of 250 mu in the Central China Textile Industry,
where standard premise with floor area of 100,000m2 and matching facilities of water, electricity
and gas supply shall be constructed. The most advanced domestic or foreign scouring machine,
mercerizing machine, tentering and stentering machine, dyeing machine and drum screen printing
machine shall be purchased. It is planned to build over 20 garment fabric and decorative fabric
printing and dyeing lines in the functional zone of printing and dyeing. The fundamental
construction scale is above 2 printing and dyeing lines at the beginning, which has the production
capacity of 200 million meters of grey cloth per year.
    IV. Total investment and the composition
    The total investment of the project is 0.2 billion yuan (about 10 million yuan for each printing
  and dyeing line). The construction period is 1-2 years. And the production capacity of grey
  cloth is 0.2 billion meter/year.
    V. Benefit forecasting
     After the project being put into operation, the annual sales revenue is 2 billion yuan and
annual profit and tax 0.15 billion yuan. The payback period of investment is 3-4 years.
    VI. Cooperation mode
    Sole investment, joint venture or other mode

                                                121
    VII. Project progress
     The project is planned to occupy an area of 250 mu in Central China Textile Industry Park.
So far, the construction of ―Five-accessible and one-leveling‖, wastewater treatment system and
matching facilities has been completed.
    VIII. Contact information
    Tel: 0716-8333388
    Fax: 0716-8333668
    Contact: PengTongguo




                                             122
Mining & Metallurgy
                          Quartz Further Processing Project
       I. Background information
     Dawu County is abundant in quartz deposits which is of 100 million ton, sound ore-forming
geological condition, high quality, small depth, the content of SiO2 being 99%, high hardness, low
impurity, and its exploitation is easy.
       The exploitation of quartz rock covers 8 towns of Dawu County, with 23 exploitation sites
and exploitation capacity of 60,000 ton/per. At present, there are five enterprises of further
processing of quartz rock, specialized in crystal material, optical glass, molding powder and quartz
powder, in which 2 enterprises are specialized in crystal silicon, with the annual capacity of 2202
crystal silicon of 6,000 tons, which will be increased to 23,000 ton within 1 year. There are 1
enterprise of optical glass, with 4 optical glass production lines and annual capacity of K9 optical
glass of 5,000 ton, which will be increased to 12,000 ton within 3 years, and 1 enterprise of crystal
handicrafts. Neighboring Beijing-Zhuhai expressway and Beijing-Guangzhou railway, the traffic
conditions of Dawu County is very convenient.
       II. Market analysis
       Quartz can be extensively applied to about 300 fields, such as precision casting, optical
glass, crystal handicraft, crystal silicon, high purity silicon, processing mould for jewelry,
refractory material, coating additive for spaceflight and navigation materials, solar battery, silicon
electronic chip and so on. Its market is promising.
       III. Project scale and content
       It is planned to invite foreign investors to enlarge the quartz exploitation and further
processing scale.
       IV. Total investment and the composition
       The total investment is USD 50 million.
       V. Cooperation mode
       Sole investment, joint venture or other mode upon personal negotiation
         VI. Project progress
         The project has been approved and registered and the feasible report is completed.
        VII. Contact information
     Contact organization: Dawu County Investment Promotion Bureau
     Contact: Yan Dashuang, Deng Ling


                                                 123
Tel:(0712)2832556
Fax:(0712)2822944
Email: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Address: 36 Chengzhan Road, Xiangan City, Hubei
Zip Code: 432000




                                       124
       High Purity Polycrystalline Silicon Production Line Project

    I. Background information
     Polycrystalline silicon is the main material of single -crystal silicon and silicon
material industry is the basic industry for electron ic information industry. The
production of high purity polycrystalline silicon is among the hi -tech industry
encouraged by the state. By introducing important technology and equipment that have
been tested to be effective and mature, a modern factory with scale economy effect will
be built and its product will occupy the market increasingly and drive the development
of related industries and bring tremendous influence on the regional economy.
    II. Market analysis
     In the domestic market, the demand for polyc rystalline silicon was 3,500 ton and
the gap in the market was 3,200 ton in 2006. In this year, the demand will be over 4,500
ton, whereas the domestic production capacity is predicated to be no more than 600 ton
and the gap in the market will be about 3,900 ton. In 2010, the demand will be over
9,000 ton, and by then we will totally depend on imported products to meet the gap.
     In the international market, the annual growth rate of demand for polycrystalline
silicon is 10-12%. Upon such growth rate, the demand for polycrystalline silicon is
predicted to be 35,500 ton in 2006, 60,000 ton in 2010, and the gap will be over 10,000
ton. The Asia Pacific Region is the main region that has the demand for polycrystalline
silicon, especially Japan, Taiwan, Singapore, Korea, and all the demand of Korea has to
be met with imported products.
    III. Project scale and content
     The designed scale of this project is 1,500 ton/year, in which, polycrystalline
silicon for zone melting is 300 ton, polycrystalline silicon for integrating circuit 300 ton
and polycrystalline silicon for solar battery 12,420,000 pieces.
    IV. Total investment and the composition
     The total investment is USD 143.36 million, in which fixed assets investment is
USD 127.98 million (including USD 73.11 millio n for equipment) and working capital
investment USD 15.38 million.
    V. Benefit analysis
     The annual sales revenue of the project is USD 0.12 billion, profit USD 42,214,400,
profit-tax to investment rate 43.18% and investment profit rate 35.15%. The payback

                                            125
period of investment is 3.57 years. Upon analysis, if the project is established in our city
in the near future, the payback period of investment is 2 -3 years.
    VI. Cooperation mode
    Sole investment, joint venture, technology shares or technology transfer
    VII. Project progress
     So far, our city has the basic conditions for the project and the preparations
concerning feasibility analysis, material resources, project location, hydrogen plant and
trichlorosilane plant matched with the project, electricity supply with agreeable price
and preferential policies have been completed. We have contacted and signed the
entrusted investment promotion contract with the supplier of the latest production
technology. Upon analysis, if the project is established in our city in the near future, the
payback period of investment is 2-3 years.
    VIII. Contact information
    Contact organization:Xianning Investment Promotion Bureau, Hubei, China
    Contact: Huang Sisheng
    Tel: 86-715-8319165/8126117
    Fax: 86-715-8319165/8126117
    Email: xnszsj@163.com




                                              126
          Monocrystalline Silicon Chip Production Line Project

    I. Background information
     Single crystal silicon chip, hi-tech product of silicon material industry, is the basic
material for electronic components in the field of electronic industry of today’s world,
belonging to basic product of micro-electronic technology, which can be applied
extensively. Though the development of silicon material in the country is rapid, the
absolute quantity remains small, which is not matched with the rapid development of
integrate circuit of our country. At present, with a few small -scale domestic
manufacturers of single crystal silicon chip, the production of this product is far from
meeting its demand. Xianning City is abundant in high quality silica required for the
silicon material industry, electricity resource and other auxiliary materials and energy
resource and enjoys convenient traffic conditions with geographical advantages. With
ample material and low cost of transportation, it is ideal to build a production line of
single crystal silicon chip in Xianning. The construction of the project is divided into
three terms.
    II. Market analysis
     At preset, along with the rapid development of domestic electronic indu sty, the
demand for Czochralski silicon, medium resistance, ingot bar or grinding sheet 75mm,
100mm solar silicon chip is increasing greatly, part of which has to be met with imported
products, especially for φ125mm and 150mm single crystal silicon chip, whose demands
can not meet their supply. Single crystal silicon chip with diameter over φ200mm is
commonly applied in the integrate circuit in the international market, and φ200mm
single crystal silicon chip is gradually applied in the domestic integrate circuit, all of
which is supplied from abroad. φ200mm single crystal silicon chip produced by this
project will enter the international market, what is more important, it has promising
prospect in the domestic market.
     III. Project scale and content
     A product line of monocrystalline silicon chip with capacity of 2 million φ75mm
and φ100mm monocrystalline silicon chips per year is planned to be built in the first
construction term. And another product line of monoc rystalline silicon chip with
capacity of 1.8 million φ125mm and φ150mm monocrystalline silicon chips per year is

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planned to be built in the second construction term. And a product line of
monocrystalline silicon chip with capacity of 1.2 million φ200mm monocrystalline
silicon chips per year is planned to be built in the third construction term. And the
investor may invest and construct the production line of the third term directly.
     IV. Total investment and the composition
     The total investment of the first term is 20 million yuan, in which, fixed assets
investment is 16 million yuan and working capital 4 million yuan; that of the second
term is 55 million yuan, in which, fixed assets investment is 46.95 million yuan and
working capital investment 8.05 million yuan; that of the third term is 150 million yuan.
     V. Benefit analysis
     The annual sales revenue of the first term is 20 million yuan, net profit 3 million
yuan, ratio of profits to sales 15%; the annual sales revenue of the second term is
increased by 94.5 million yuan, net profit is increased by 11.25 million yuan, ratio of
profits to sales is increased by 11.9% over the first term; the annual sales revenue of the
third term is increased by USD 96 million and the profit is increased by USD 28 million.
     VI. Cooperation mode
     Sole investment
    VII. Project progress
     So far, the preparations concerning feasibility analysis, material resources, project
location and preferential policies have been completed.
    VIII. Contact information
    Contact organization: Xianning Investment Promotion Bureau, Hubei, China
    Contact: Huang Sisheng
    Tel: 86-715-8319165/8126117
    Fax: 86-715-8319165/8126117
    Email: xnszsj@163.com




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                           Electrolytic Copper Foil Project

     I. Background information:
     This project complies with the national policy of supporting the economic growth of
underdeveloped areas and its product is badly needed product whose development is encouraged
by the state and such product is mainly supplied from abroad at present. Its domestic demand is
about 55,000 ton/year, whereas the production of high grade electrolytic copper foil is about
30,000 ton/year and the demand is creasing year by year. Large quantity of such product has to be
imported from abroad. Huangshi has abundant copper resource, which can be used at relatively
low cost.
     II. Project scale and content:
     The planned scale of this project is 5,000 tons of middle and high grade electrolytic copper
foil per year.
     III. Project progress:
     The feasible report of this project is completed and relevant government department has
approved this project. The land for this project has been purchased and the construction period is 2
years.
     IV. Total investment and the composition:
     The total investment of the project is 355,230,000 yuan, in which construction investment is
332,030,000 yuan(including USD 11,766,000)and working capital investment 23,200,000 yuan.
     V. Benefit forecasting:
     After the project being put into operation, its annual sales revenue is 2.8 billion yuan, average
annual profit 31,820,000 yuan, average annual profit after tax 21,320,000 yuan, investment profit
rate 9% and profit-tax to investment rate 13.1%. The payback period of the investment (including
the construction period) is 8.1 years.
     VI. Cooperation mode:
     Sole investment, holding shares, joint development
     VII. Contact information:
     Contact organization: Investment Promotion Department of Huangshi Investment Promotion
Bureau, Hubei
Contact: Wu Zhaoyang, Zhengfen
Tel: 0086-714-6359875       Fax: 0086-714-6368386
E-mail: hbhstz@sina.com

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       Cold Rolled Silicon Steel Reel and Hot Galvanized Steel Strip

                                  Production Line Project



     I. Background information:
     Sendzimir Money Concepts Metal Material (Huangshi) Co., Ltd., founded with sole
investment of Money Concepts International, has introduced advanced equipments home and
abroad with its abundant capital and trains domestic technical workers with its leading technology.
And the company is specialized in the production and sales of strip steel products needed in the
international and domestic markets.
     II. Project scale and content:
     With small investment on the production line for cold rolled silicon steel reel, in which
multi-roll reversing mill (Sendzimir mill) with shape control technology is used, push-pull acid
pickling mode is adopted, and electrolytic degreasing technology is applied, the product of the
production line is of high quality. The galvanization line applies ―美钢联法‖ galvanization
technique, which involves leading technology and equipment in the world. As the metal functional
material in China develops toward internationalized, the demand for electronic products
concerning micro electron, communication and informatization project etc. is increasing greatly
and metal functional materials are used in the fields, such as energy, environmental protection,
traffic and medical apparatus etc more and more frequently, therefore the prospect of the project is
promising.
     III. Project scale and content:
     The project is planned to produce and sell high precision steel strip, silver steel and related
metal materials.
     IV. Total investment and the composition:
     The total investment is USD 50 million.
     V. Benefit forecasting:
     After the project being put into operation, the annual sales revenue is RMB 1.5 billion and
the annual tax RMB 0.5 billion.
     VI. Cooperation mode:
      Joint venture, cooperative venture or other mode
     VII. Project progress:


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    The land levelling has been completed.
    VIII. Contact information:
    Contact organization:Economic Development Bureau of Huangshi Development Zone,
Hubei, China
    Address: Hangzhou East Road, Huangshi, Hubei, China   Zip Code: 435003
    Tel: 86-714-6357518      Fax: 86-714-6358509
    Contact: Yang Honggang, Lu Zhuguo, Su Jianbo
    Website: www.ch-hs.com Email: hskfqjfj@163.com




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    Project of Further Processing of Copper Products such as High
                Quality Copper Pipe and Pipe Fittings
     I. Background information:
     1. Along with the big growth of national economy and the rapid development of electrical
appliance, automobile, construction and machinery industry of the country, the demand for high
quality copper pipe and pipe fittings is increasing by big margin and the prospect on the market is
promising. 2. Huangshi is endowed with abundant copper resource with proved reserve of 5.5
million ton. Daye Nonferrous Metals Company is a copper smelt processing enterprise, which is
one of the five major copper material bases of the country and a leading enterprise supported by
the state. Its production of copper is 1/5 of the production of the whole country. And it ranks No. 4
among the enterprises in the copper industry of the country for its general scale.
     II. Project scale and content:
     The project is planned to build an enterprise with production capacity of 30,000 tons of high
quality copper pipe per year and 5,000 tons of copper pipe fittings per year.
     III. Total investment and the composition:
     1. The project of high quality copper pipe with annual production of 30,000 ton: The planned
total investment is 311.15 million yuan, in which fixed assets investment is 258.15 million yuan
and working capital 53 million yuan. 2. The project of copper fittings with annual production of
5,000 ton: The planned total investment is 150 million yuan, in which fixed assets investment is
120 million yuan and working capital 30 million yuan.
IV. Benefit forecasting:
     1. After the project of high quality copper pipe with annual production of 30,000 ton being
put into operation, its annual sales revenue is 1.5 billion yuan and profit after tax 56 million yuan.
The payback period of investment is 5 years.
     2. After the project of copper pipe fittings with annual production of 5,000 ton being put into
operation, its annual sales revenue is 0.35 billion yuan and profit after tax 52.5 million yuan. The
payback period of investment is 3 years.
V. Cooperation mode:Cooperative venture, sole investment
VI. Contact information:Contact organization: Investment Promotion Department of Huangshi
Investment Promotion Bureau, Hubei
Contact: Wu Zhaoyang, Zhengfen
Tel: 0086-714-6359875       Fax: 0086-714-6368386
E-mail: hbhstz@sina.com

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                     Aluminum Sheet, Strip and Foil Project

     I. Project description
         50000 tons of aluminum sheet and strip and 5000 tons of aluminum foil will be produced
annually, their specifications will be determined according to the demands of the market and the
alloy designations are mainly L1-L6. All aluminum foil products will be plain foil; and their
alloy designations and conditions of products will be considered to be L1-L6(M). The project
mainly consists of fusion casting workshop, cold reduction workshop and aluminum foil
workshop.
     II. Background information
         At present, Hubei Huasheng Aluminum & Electricity Co., Ltd. has the production
capacity of electrolytic aluminum of 46,000 ton/year. The company plans to utilize existing
aluminum resource to construct a 50 thousand ton/year production line for aluminum sheet,
strip and foil, which can make full use of primary aluminum resource, reduce burning loss for
remelting and increase value-added of products.
         Presently, productivity of aluminum sheet in China is 935.5 thousand ton/year and the
supply exceeds the demand. But its structure is obviously unreasonable in terms of processing
degree. The capacity of medium and low grade products is redundant while that of high-grade
products is severely deficient. Currently, China has to import 275 thousand tons of sheet and
strip material annually; and this costs USD 661 million. The import of such material costs the
largest part of foreign exchange used for nonferrous processing materials. According to
analyses by relevant experts, the gap of high and medium grade aluminum sheet material in
China is 500-700 thousand ton/year.
     III. Investment component
         The total investment of the project is USD 79.5 million, including USD 49.4 million for
equipment investment.
     IV. Economic benefit
         After the project being put into operation, annual newly added sales revenue will be USD
118 million and investment profit rate 27.9%. The payback period of investment will be 5.5
years.
     V. Project progress
         The feasibility study report has been prepared by Shenyang Aluminum & Magnesium
Design Institute.

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    VI. Cooperation mode
     Sole investment, joint venture or cooperative venture
    VII. Information about the organizer of the project
     The total assets of Huasheng Aluminum & Electricity Co., Ltd is USD 140 million and it
has two subsidiary enterprises, the aluminum plant and the power plant. The power plant has
three 50MW condensing turbo-generator sets, which generate electricity for 1 billion kwh per
year. The aluminum plant has completed the transformation of prebake cells and annual
production of primary aluminum reaches 50,000 tons.
    VIII. Contact information
     Contact organization: Investment Promotion Bureau of Qianjiang City, Hubei Province
     Tel: 0728-6239520
     Fax: 0728-6239720
     E-mail: qjzhaosj@sohu.com
     Zip Code: 433100




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Logistics
            Wuhan International Bonded Logistics Park Project
    I. Background information
    Wuhan municipal committee and municipal government attach great importance to the
development of modern logistics industry of Dongxihu District, which has been among the pillar
industries of the area. Wuhan International Logistics Park, namely Wuhan Type B Bonded
Logistics Center, Hubei, is the existing unique bonded logistics center which has been approved
by General Administration of Customs of the P.R.C. in the central China region, lying at north of
Wuhan-Danjiangkou Railway, west of Gaoqiaoerlu Road, south of Gexin Avenue and east to the
Beijing-Zhuhai Expressway, adjacent to 107 National Highway on the north and
Shanghai-Chengdu Express Railway under planning on the south. The integrated logistics park is
a hub radiating the five provinces in the middle of China and connecting domestic and overseas
markets, based on the geographical advantage of Wuhan and supported by the Wuhan Railway
Container Center Station under construction, with the function of domestic transit, international
procurement and delivery, entrepot trade and speedy customs clearance, bonded warehouse,
simple processing and value-added services, export tax refund and information processing.
    II. Project description
    1. Wuhan bonded logistics center, Hubei (land occupation area of 180 mu for the first term
construction); 2. Highway port (land occupation area of 180 mu); 3. Domestic integrated logistics
park (land occupation area of 330 mu); 4. Living service area (land occupation area of 50 mu).
    III. Total investment: The planned total investment is RMB 510,000,000.
    IV. Cooperation mode
    Welcome to the bonded logistics center, which has been equipped with standard logistics
facilities. We may cooperate on any zone of the logistics park or any single project. And the land
use right of part of the land can be transferred and the investor may build the area on their own.
BOT may be adopted for some facilities.
    V. Contact information:
    Contact organization: Investment Promotion Bureau of the People’s Government of
Dongxihu District, Wuhan
    Contact: Zhu Guangsheng, Nifang, Zhang Xiangdong
    Tel: 0086-27- 83370495     83219867 Fax: 0086-27-83211751
    E-mail: zhangxiangdong@dxh.gov.cn

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       Hanzhengjie Cosmopolis Industry Logistics Center Project

     I. Background information
     1. Hanzhengjie market, which enjoys a history of over 500 years, is called ―wind arrow of
China market-oriented circulation system reform‖. 2. Garment and light textile material takes
account of 65% of the total transaction volume of Hanzhengjie market. The second reformation of
Hanzhengjie will be started in 2007. 3. It is essential to build material circulation platform and the
chain of textile garment industry of Wuhan in the reformation. 4. The project will be
supplementary to the functions of Hanzhengjie and a new function area industry-matched, shaping
a new industry development base with ―large commercial scale and large circulation‖ and
extending the functions of Hanzhengjie. 5. It boasts its advantageous spatial traffic conditions as it
is near the middle ring of the city, linking 107 national highway and 318 national highway, which
facilitates matching logistical facilities. 6. It exerts speedy conduction effect and example effect of
industries, as it adjoins Hanzhengjie urban industrial park.
     II. Project Location
     The project location is south of middle ring, adjacent to Taiwan Businessmen Investment
Zone, north of Wuhan-Danjiangkou railway, adjoining Hanzhengjie urban industrial park, east of
Jiefang Avenue, neighboring Wangjiadun CBD.
     III. Project description
     This project occupies an area of 750 mu and the construction area is planned to be 750,000 ㎡,
where will be constructed into a commercial logistics park with speedy start-up, low cost, high
efficiency, matching facilities and good service. Its light textile and garment batch transaction area,
production processing area and brand nurturing area will drive the reformation of Hanzhengjie
toward a right direction and the middle emergence of Wuhan, promote the urban integrated
example functional area required by the development of light textile and garment industry of
Hubei, especially Wuhan.
     IV. Total investment: The planned total investment is RMB 1.95 billion.
     V. Market forecasting
     After the project being put into operation, the forecasted annual custom volume is 3,000,000
persons, annual transaction volume 6 billion, annual tax amount 80,000,000, with employment of
7,500 persons.
     VI. Economic Benefit forecasting: The predicated payback period of investment is 5 years.
     VII. Cooperation mode: Joint construction or residing in the park

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VIII. Contact information:
Contact: Sun Wei
Tel: 83730950, 83783844; Fax: 83730950
Email: qkzs@vip.163.com or Email: sw5180101@yahoo.com.cn




                                         137
                  Optical Valley Modern Logistics Center Project

    I. Background information
    1. The requirement of the development of opto-electronics industry. 2. The requirement of the
development of Wuhan New City of Technology and modern service industry. 3. Unique traffic
hub in central China and advantageous natural conditions.
    II. Project Location
    The project is located at the east gate of Wuhan, which is 100 meters away from the
Fenghuangshan entrance of Shanghai-Chengdu and Beijing-Zhuhai highway on the south,
adjacent to Optical Valley Avenue on the west and Beijing-Guangzhou express railway on the east.
It enjoys a perfect geographical advantage.
    III. Project description
    This project occupies an area of 400 mu and the construction area is 50,000 ㎡, which holds
stock 100,000 ton/year, with large scale matching facilities, such as grand hotel catering 800
persons/day.
    IV. Total investment: The total investment is RMB 0.4 billion.
    V. Market forecasting
    The unique geographical advantage and convenient traffic determine the broad market of the
project, which includes regional market and domestic market. It is a gateway of goods to and from
Hubei and one of the most important logistics hub center in the country.
    VI. Economic Benefit forecasting: The predicated payback period of investment is 8 years.
    VII. Cooperation mode: Sole investment or cooperative venture
    VIII. Contact information:
    Contact: Zhang Qingjun
    Tel: 86-27-67880475        67880085
    Email: huafen101@hotmail.com




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                           Gaoqiao Modern Logistics Park

     I. Background information
    Gaoqiao modern logistics park is an essential part of the strategy of "Advancing to north and
cooperating with the west‖ carried out by Jianghan Economic Development Zone of Wuhan to
extend the development space and one of the four important logistics items planned and supported
by Wuhan municipal government. The park is located in the Taiwan Businessmen Investment
Zone, from 16th Zhigou on the east to 20th Zhigou on the west, at the west gate of Wuhan,
connecting to Wuhan-Chongqing railway on the south and 107 national highway on the north,
occupying an area of 3,000 mu. Gaoqiao Park boasts a very convenient, smooth and developed
spatial traffic of water, land and air. With its unique geographical advantage and environment, it is
the best option for investing and constructing a logistics base.
     II. Project description
    ―Five-accessible and one-leveling‖ of the land of 1,500 mu occupied for the first-term
construction of Gaoqiao modern logistics park has completed. At present, some enterprises have
resided in the park, such as Hubei General Automobile Transporting Company and Wuhan
Zhonglian Pharmaceutical Group Co., Ltd. Many large enterprises and consortiums have the
intention of residence, such as Sinotrans Logistics Company, Li & Fung group of Hongkong,
Lotus, Metro, Nike, Wuhan Tobacco Group Company. The municipal government plans to build a
bonded logistics center neighboring the park, which will fully take the integrated advantage of
adjoining Beijing-Zhuhai expressway, Wuhan-Chongqing railway, 107 and 316 national highway,
accelerate the gathering of logistics companies with Sinotrans logistics company and railway
container center as their leading enterprises, and shape this area into a logistics port of fast
consumables in central China to advance the development of the logistics industry in the park and
to provide matching services for processing manufacturing industry in the park, including
commodities display, wholesale, storing, packaging and delivery.
     III. Prospect forecasting
    The project locates at the area where urban area and suburb area share boundary and where
water, railway, highway and air traffic intercross and form the unique traffic advantage. The
enterprises residing in may enjoy the preferential policy of Dongxihu technology development
zone and the one-step service provided by the park. It will bring infinite business opportunities
and fruitful return for the investor with the gathering of the modern logistics companies and

                                                 139
advanced manufacture enterprises and highly efficient integration of all sorts of resources in the
park.
    IV. Cooperation mode: Investment, joint venture and cooperative venture.
    V. Contact information:
    Address: Jiangxing Road 7, Jianghan Economic Development Zone
    Contact: Chen Gang
    Tel: 027-83517932      Fax: 027-83524387




                                               140
      Central China Commercial Logistics Industrial Park Project

    I. Background information

    1. Fulfillment of national strategy of middle emergence 2. The requirement of the

development of Yangluo Economic Development Zone of Wuhan 3. Yangluo has the spatial traffic

advantage of water, railway, highway and air, which scarcely appears in the country. 4. The

requirement of development of modern service industry of Wuhan

    II. Project Location: Yangluo, Xinzhou district, Wuhan, Hubei

    III. Project description

    The construction area of the project is about 500 ha. (7,500 mu). The project will be

constructed in several terms and it includes the fundamental construction and matching

construction, taking the integrated processing industrial area as its main body, supplemented by

the construction of commercial logistics park and business street, the development of specialized

markets of logistics park and commercial park, the combined transportation and distribution center

of commercial logistics park, commercial center, E-commerce logistics transaction center and

matching commercial residence area.

    IV. Total investment: The total investment of the first term is RMB 3.85 billion.

    V. Market forecasting: Annual transaction volume is 15,000,000 ton and transaction amount

is RMB 30 billion.

    VI. Economic Benefit forecasting: Average annual rate of return is 15.3%.

    VII. Cooperation mode: Joint venture (Sole foreign investment)

    VIII. Contact information

Contact: Cai Jun Tel: 89620196




                                               141
    Logistics Park Zone of Hengdian Northern Marshalling Station

           I. Background information
           Wuhan Railway Northern Marshalling Station with the largest scale in Asia and the
advanced technology has broken earth at Hengdian Street of Huangpi district recently. It occupies
the land of 7,000 mu with 58km for main track tracklaying and 222km for station track
tracklaying, adopting bi-direction tri-level seven-yard station and is equipped with the perfect
depots such as locomotive, rolling stock, electrical depot, etc. Shunting yards of upper and lower
systems are of track, adopting multiple rows and double-marshalling automatic hump, point
connected speed governing system. Its management technology and scale are of the first level in
Asia, and the technology is leading in the national railway marshalling stations. Short-term
operation volume of the station is 11702 rolling stocks, 15750 ones for long-term, finally reaches
22000 ones. Establishment of Northern Marshalling Station will bring limitless development space
for the Hengdian Logistics Park and provide guarantee for driving the regional economy.
     II. Project description
           It mainly shall be built into the logistics delivery center, logistics distributing center, center
of multiple transportation modes and logistics information transmission center. Also it is planned
to be the functional zones such as comprehensive commercial zone, distribution and delivery zone
as well as logistics storage and processing zone.
     III. Project scale
           The total planned area of the project is 3,000 mu and total investment is estimated to be
RMB 1.2 billion.
     IV. Economic Benefit forecasting:
           The annual tax after establishment of the park is estimated to reach RMB 12 million.
     V. Contact information
           Wuhan Huangpi Commercial Affairs Bureau and Hengdian Street Office of Huangpi
District
     VI. Cooperation mode: Sole investment, joint venture and cooperative venture
     VII. Contact information
           Contact: Mr. Liu, Mr. Zhang
           Tel: 86-27-61007255      Fax: 86-27-61007255




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    Central China Logistics Center of Steel Processing and Delivery

      I. Background information
      Hubei Lianyi Industrial Group Co., Ltd. is a large-scale logistics enterprise specialized in the
purchasing and sales of metal material and steel scrap. Its distribution network covers east China,
central China, north China and northwest region. The amount of its net assets is RMB 216 million,
holding 6 subsidiary companies and 4 branch companies.
      II. Project Location
      The site of the project is beside 107 national highway and Wujin Bank of Baishazhou, 4 km
away from the Third Yangtze Bridge and 2 km away from deepwater dock on the Yangtze River.
There are railway private sidelines through the center. With easy transportation, it is an ideal
location for a large-scale logistics base.
      III. Project description
      This project is planned to build a large-scale steel processing and delivery center, with
handling capacity of 1.5 million ton/year, processing steel 800,000 ton/year, with production
capacity of steel members of 100,000 ton/year, processing stainless steel 30,000 ton/year.
      IV. Total investment: The total investment is about RMB116,000,000.
      V. Market forecasting
      Along with the formation of economic belt in central China, the needs for further processed
steel products will increase and the logistics industry will develop in a broader space.
      VI. Economic Benefit forecasting
      Annual revenue may reach RMB 117,500,000, the payback period of investment will be 3.55
years, and profit rate of investment is 22%.
      VII. Cooperation mode
      Joint exploitation, exclusive investment and construction of single project, rent
      VIII. Contact information
      Contact Organization: Hubei Lianyi Industry Group Co., Ltd.
      Contact: Cheng Xinnong
      Tel: 086-27-88115004             Fax: 086-27-88115556




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Tourism
                                 Wenjin College Project
     I. Background information
     Wenjin college, being located at the side of Confucius River in Xinzhou District, Wuhan City,
is the cultural vein left when Confucius built college to discourse in Chu State during his tour of
the warring states. In history, it once was equally famous with the celebrated Bailudong College,
Donglin College, Shoushan College and Yuelu College of China, which has generated 387
successful candidates in the highest imperial examinations in feudal China and acquired brilliant
accomplishment in the glorifying of Confucianism as well as the spread of knowledge. Since
Confucian scholars and ruling class in all ages had enthroned in Confucianism, the college was
damaged and rebuilt repeatedly and the size grew magnificent day by day. Thus till last years of
the Qing Dynasty, its area came to more than several hundred mu (1/15 of a hectare).There has
been scores of learning halls, presenting simple and unsophisticated shape and dignified style. In
the median of the college lies Dacheng Hall (Hall of Great Achievements) where ―Wan Shi Shi
Biao‖ (Model Teacher for All Ages) and ―Sheng Ji da Cheng‖ (Confucius Achieves Greatly)
granted by the emperors Kangxi and Jiaqing of Qing Dynasty respectively are found horizontal
inscribed on large horizontal boards and Confucius’ statue is seen in the center. Excellent]
architectural art in ancient China is presented in the building from every aspect from layout in
structure to interior decoration. Long Confucian source and strong cultural atmosphere is where
the college's life lies.
     In 2002, Wenjin College was ranked the provincially protected sites officially.
     II. Project description
     (1) restore Wenjin College to the original condition in Ming and Qing Dynasty;(2)repair
                                                                         ( exploit reservoir
                              ( built tablet gallery of Confucian culture; 4)
watercourse of Confucius River; 3)
on Confucius River;(5)restore famous sites neighboring the river and Confucius Mountain;(6)
new build a street with buildings in Anhui style.
     Ⅲ.Amount of investment
     It is estimated that the total investment is RMB¥120,000,000.
     IV.Market forecast
     After finished, the project will attract many citizens from central China for holiday and visit.
Still, it will provide the position for the study and education of callants and the platform for
academic exchange of middle and primary school education.

                                                144
     V. Benefit analysis
     Hold diversiform academic discussions regularly through publicity in various ways. It is
calculated that the annual revenue will up to ¥30,000,000. All the investment can be recovered
in 5 to 6 years. Thus, there is no risk
     VI. Cooperation mode
     Sole investment, joint venture, cooperative exploitation and management.
     VII. Contact information
     Contact: Huang Xiaojun        Tourism Administration of Wuhan Municipality
     Tel.: 86-27-82761227
     E-mail: fortiny@sina.com




                                                145
       Cultural Tourism of Longzhong Famous Scenic Site Project

     I. Background information:
     The management committee of Scenic Spots and Historic Sites of Longzhong is an agency of
Xiangfan municipal government, which is responsible for the layout, construction and
management of this state-level area. Area of this precinct is 209 sq.km..
    II. Project scale and content:
     1. Zhuge Liang Grew Talented Garden project It is planned to build concentrated spots
surrounding Zhuge Liang's experience to grow talented around Three-Kingdom Culture Square,
occupying 300 mu of the land. This scenic spot possesses of abundant water resources with
Hanshui River flowing by 3 kilometers north to it, which is the biggest water body of the city
taking a mean annual discharge of 1,140 cubic meters per second. There exists many reservoir and
ponds, of which Zhongchong Reservoir takes the largest storage capacity(about 2,700,000
cubes).There is flourishing underground water which help the formation of numerous spring eyes,
of which Laolong Hole enjoys the highest reputation. Seen from tectonic structure, the scenic spot
is located in the east of Taiyuan Fold Belt in Daba Mountain which lies in the north zone of
Yangzi Platform, belonging to tectonic erosion landform full of hills. The earthquake intensity in
this scenic spot is under 6 levels. The soil can be approximately classified into: yellow soil,
yellow-cinnamon soil, yellow-brown soil, sabulous loam and upland brown forest soil. The
position in which this garden lies falls into upland brown forest soil.
     2. Longzhong Ornamental Botanical Garden Project. It is planned to be built neighboring the
Longzhong Residents' Committee Group Six, occupying the land of 3,000 mu. This garden takes
The Ancient Longzhong as its main cultural connotation. Its content is to collect and display the
plants with relatively high value for visit typically found in Northwest of Hubei Province. Thus it
is an integrated ecological garden which embraces visit at leisure, plant display and science
popularization. The garden will be built with world reputed flower garden, greenhouse, natural
landscape garden and Baicao garden.
     3. The Three Kingdoms City project. It is planned to be built neighboring the Longzhong
Residents' Committee Group Six. In this city, tales of the Three Kingdoms will be reproduced
through modern high-tech like electronic sound. Tales in different styles such as
Flooding of Seven Armies, Battle of Chibi, Empty City, etc. will be presented powerfully and
grandly, intensely with wars, humorously, or zestfully. Visitors will feel personally on the scene
failing to tell modern from ancient, enjoying unique amusement.

                                                 146
     Ⅲ.Total investment and the composition
     1. Total investment for Zhuge Liang Grew Talented Garden shall be US$6,960,000.
     2. Total investment for Longzhong Ornamental Botanical Garden shall be US$10,130,000.
     3. Total investment for Three Kingdoms City shall be US$31,650,000.
     IV.Benefit Forecasting
     1. After constructed, Zhuge Liang Grew Talented Garden will enjoy good economic and
social benefit with promising market outlook, obtaining annual average revenue of US$ 1,770,000.
Thus, investment shall be recovered in 5 years and half. The garden is located in a collectively
owned forest, which is approximately 350-400mu, and a few of them are leased out for fruit trees
planting. In accordance with relevant documents, for most trees in this garden, compensation
standard for each tree shall be ¥5-10. As to specific situation, negotiation to the eyes is available.
Part of the forest can be leased out. The rent is negotiable.
    2. As an important part of Longzhong scenic spot itself, Longzhong Ornamental Botanical
Garden adjoins to the Three Visits to the Thatched Cottage scenic spot. The garden not only relies
on profound cultural connotation of Ancient Longzhong but also possesses of the potential of
ecological visit and science popularization. After construction, the tourist source market will grow
steadily with promising economic and social benefit. Total investment can be recovered in 10
years.
     3. After constructed, the Three Kingdoms City shall ameliorate the scenic spot in internal
environment enormously, expand the visiting capacity, draw more visitors and extend their visiting
period in return to increase the consumer expenditure. Calculated according to the total of visitors
in 2001, that is 237,000, the annual revenue increases from admission ticket and management is
US$3000, 000. Total investment can be recovered in 10 years.
     V.Cooperation mode: Sole investment, joint venture, cooperative venture or others.
     VI.Contact information: Unit: Longzhong Scenic Spot Management Committee of
Xiangfan
     Address: Longzhong Management Committee, Longzhong Road, Xiangfan City
     Post code: 44105
     Contact: Wang Ying Wang Xueping
     Tel.: 0710-3592235
     Fax: 0710-3592235




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                    Longmenshan Famous Scenic Site Project
   I.Background information: 15 kilometers southeast to the suburb of Xiangfan city, this
project is located at the middle reach of the Hanshui River, neighboring the National Highway 316
and Airport of Xiangfan. There are kind ecology environment, abundant human resources, high
forest cover rate and large capacity to drum up visitors. Liuxiu, the Emperor Guangwu in Han
Dynasty once toured here. He has dreamed escorted by a divine deer. Therefore, an ancient temple
of Han Dynasty-Lumen Temple was built. It turned into a famous Buddhist cultural resort
throughout China since pious men and women have never eased there from Wei Dynasty, Jin
Dynasty, Northern and Southern Dynasties to Tang and Song Dynasties. Celebrated scholar Pang
Degong in Han Dynasty and great poet Meng Haoran and Pi Rixiu in Tang Dynasty lived here
recluse. Also, cultural celebrities in history such as Li Bai, Du fu, Bai Juyi, Wang Wei, Mi Fei, etc.
stayed and lingered here, leaving unfading poetic works and famous historical sites. These supply
the spot with advantaged conditions for exploitation and utilization. Lumenshan scenic spot has
become a momentous famous area in the outer belt of Xiangfan city for visit and rest, which helps
form a significant layout for tourism development, namely One River and Two Spots of Xiangfan
(Hanshui River, Longzhong famous historical sites and Lumenshan famous scenic spot).
    II.Existing circumstance analysis: This project covers extrusive resources superiority, large
amount of mountain area, high forest cover rate, numerous celebrities and famous historical sites,
abundant biotic resources, sights of all kinds, superior geographic location and convenient water
and land transportation. Embraced by five mountains, holding elegant scene and being a place
propitious for giving birth to great men, Lumen scenic spot has favorable location superiority. It
has gestated abundant Latent Culture, Poem Culture, Medicine Culture, Buddhism Culture, Three
Kingdoms Culture and natural ecological landscape for nearly two thousand years in history.
    III.Market development scale forecasting: To achieve a total scale of receiving 200,000
visitors with the staying days of 280,000 annually till 2010. To achieve a total scale of receiving
500,000 visitors with the staying days of 800,000 annually till 2020.
    IV.Product competitive power: This project takes tourism products like poem culture and
Buddhism culture as the core to exploit and construct tourism products with culture pluralism in
Lumenshan. Constitute cultural tourism product system which regards Haoran poem culture,
Buddhism culture, Pangong medicine culture and silva ecology etc. as its feature and selling.
    V. Project scale and content: Plan area of this project is 400,000 sq.km., of which the core
project occupies 200,000 sq.km.. It is planned to construct:
  1. Lumenshan cultural religion site. This site mainly includes Lion Mountain, Censer Mountain,

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  Overlord Mountain, Lumen Mountain, Lijia Mountain, Lumen ferry and mountainous region
  and hilly region enclosed by Hanshui River, occupying 1,303 mu;
  2. Lumenshan silva ecology rest site. This site mainly includes Zhenggang and Zhengchong
  tree farm, occupying an area of 610mu. Lumenshan rest farm shall be exploited with emphasis.
  3. Ecology restoration and industry comprehensive development area of Lumenshan sight. This
  site mainly includes the Hanshui River, Lijiazhu Mountain, Tuan Mountain, Chun River, Zaolin
  Reservoir, occupying an area of 2,077mu.
     VI. Total investment and the composition: Total investment of this project is
US$11,810,000, of which US$4,300,000 is for first-stage construction; US$5,710,000 is for the
second-stage; US$1,800,000 is for the third-stage. Of the investment in above three stages,
US$280,000 is for management; US$9,300,000 is for equipments; US$1,900,000 is for
infrastructure; US$330,000 is for advertising.
     VII.Benefit forecasting: This project covers extrusive resources superiority, superior
geographic location and convenient water and land transportation. It is calculated that, through
producing cultural tourism product system which regards Haoran poem culture, Buddhism culture,
Pan medicine culture and silva ecology etc. as its feature and selling, the site shall achieve a total
scale of receiving 200,000 visitors annually till 2010 and rise to 500,000 visitors with staying days
of 800,000 annually till 2020. It is measured that recovery period of static investment is 3 years
and 3 months while that of dynamic investment is 3 years and 7 months.
     VIII. Project progress: The Compendium for general planning and control detailed planning
of this project are completed by Tongji City Conceptual Design College in Shanghai. The project
has been authorized by Xiangfan Development and Reform Committee and local government.
Through construction for more than ten years, the fund invested into this project till now for sight
spot and infrastructural construction has risen to US$2,500,000 (accommodation highway for
tourism exclusive), which turns the project into the main content of Xiangfan rest belt surrounding
the city in the east.
     Ⅸ. Cooperation mode: Sole investment, joint venture or others.
     Ⅹ. Contact information:
     Unit: Lumenshan Scenic Spot Management Committee of Xiangyang District, Xiangfan City,
Hubei Province
     Tourism Administration of Xiangyang District, Xiangfan City, Hubei Province
     Contact: Liu Guochuang       Fan Hua
     Tel.: 13871655899, 13607271693

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                   Caibuxi Grand Canyon Scenic Spot Project

     I. Project description
        1. New build a reception centre in Caibuxi grand canyon scenic spot. This project
occupies an area of 400 mu, a gross floor area of 13,800 ㎡ and the total investment of
¥68,000,000, of which:
       ①reception centre construction: with a building area of 11,000 ㎡ and an investment of
¥18,000,000;
       ② museum construction: with a building area of 2,400 ㎡ and an investment of
        tea
¥4,000,000;
       ③exterior components construction: It includes: gate of the scenic spot, extra ventricular
roads, bridges, greening, flooring and pipe network work, etc. with an investment of
¥27,000,000.
       ④expenditure in earlier stages and else investment: ¥19,000,000.
       2. New build highway and footpath for tourists in this scenic spot. The overall mileage of
this project is 31 kilometers with an investment of ¥16,600,000.
       3. Project character: It is a new construction project which conforms to all the policies and
regulations on tourism industry of the country. It also gained encouragement and support from the
governments of all levels, namely provincial, municipal and prefecture governments.
       4. Project construction period: 2 years
    Ⅱ: Project Market analysis
    150 kilometers to Yichang city, this scenic spot lies in Yuyangguan Town, Wufeng Tujia
nationality Autonomous County of Yichang. It is a typical scenic spot of zonal grand canyon
where side banks are densely covered by stones together with numerous cliffs stand towering.
With an area of nearly 60 sq.km., this spot was approved a national forest garden which is planned
to construct three service spots, four spots for sight visiting (Tanzikou, Dawankou, Jiaokou and
Duanshankou), one ecological species conservation zone and 131 natural landscape sights. There
are more than 10 rare extinction tree species and the country grade one protected animals such as
black deer, leopard, giant salamander, etc. in the immense virgin forest of this spot.
    Caibuxi has four sights, namely cliffs and hoodoos, dells and limpid brooks, original ecology
together with custom and human feelings of Tujia nationality, each of which features differently
from the other three. Wonderful mountain peaks and deep and serene canyons form into four fancy
natural sights, namely odd sight, precipitous sight, sequestered sight and wild sight. Caibuxi is the

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inhabitance region of Tujia nationality, in which visitors can enjoy Tujia Diaojiaolou, experience
Tujia customs such as mailing marriage, funeral dance, south opera, Luotang play, etc. and taste
meals entirely coming from Tujia farming household.
    III.Project condition analysis
        1. It has convenient transportation: The spot is only 5 kilometers away from Yuyangguan.
Now less than 2 hours are needed to arrive at Caibuxi from Yichang and no more than 6 hours
from Wuhan to Caibuxi. Convenient transportation facilitates visitors’ journey. Since the
construction of the first class highway from Yichang to Yuyangguan, no more than 6 hours are
required from Three Gorges International Airport of Yichang to Caibuxi, and no more than 5 hours
are required from Wuhan to Caibuxi.
       2. There is stable tourist market: Caibuxi grand canyon has turned into the most significant
part of the Three Gorges of the Yangtze River and Zhangjiajie route. Now 40% visitor source is
seized by circumjacent market like Yichang and Jingsha. As a medium range market, Wuhan takes
up 60%. In 2006, the amount of visitors has risen to 150,000 and tended to rise in high rate.
       3. Scientific planning and exploitation: This spot has been invested ¥29,000,00 from
public debt. In accordance with 4A standard, 19 kilometers footpath and infrastructure such as
water, electricity, roads, mobile communication, etc. in Tanzikou and Dawankou have been
constructed. Still, there have constructed one parking lot and two tourist hotels. In 2005, Caibuxi
scenic spot was checked and conferred as a national 4A scenic spot.
       In company with the rising of World famous Hydroelectric Tourist City, the Three Gorges
has become the world celebrated visiting destination, which brings optimal opportunity to Caibuxi.
After finished, this project will be a modern touring center with all facilities required covering
visitors reception, parking, transferring, shopping, tea sightseeing and food and beverage. The
amount of visitors may reach up to 250,000 till 2008.
    Ⅳ.Investment budgetary estimate and investment mode
       1. The total investment is ¥84,600,000, of which:
       (1)¥68,000,000 is invested to new build a reception center in Caibuxi Grand Canyon
Scenic Spot;
       (2)¥16,600,000 is invested to new build highways and footpaths of 31 kilometers.
       2. Investment mode
       To promote investment of ¥64,600,000, and ¥20,000,000 will be supported by the
government.
    V.Social and economic benefit

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        Basing on the silva tourism resource, the exploitation of ecological tourism in Caibuxi is a
project which takes ecology environment as the principal part and covers products like visiting
natural ecological, tasting Tujia nationality custom, spending summer holidays and rest in canyon.
After constructed, this project shall achieve:
        1. Tourism revenue: ¥38,000,000, of which:
        ①admission ticket revenue: ¥16,000,000(200,000 persons ×¥80 per person);
        ②touring vehicle ticket revenue: ¥16,000,000(200,000 persons ×¥80 per person);
        ③food and beverage revenue: ¥3,000,000;
        ④other revenue: ¥3,000,000.
        2. Profit: 15,000,000.
        3. Consolidated revenue: 3,000,000.
        4. Break-even point: 35%.
        5. Investment recovery period: 5 years.
    Ⅵ: Project progress
        In accordance with Wufeng County General Planning on Tourism Development, project
owner has completed the research report of feasibility of Wufeng Caibuxi tourism exploitation
which was assessed by experts and passed through.
    Ⅶ: Cooperation mode:
    Joint venture or cooperative venture
    Ⅷ: Contact information
    Yichang Investment Promotion Bureau
    Contact: Yang Munan, Zhao Yong
    Tel.: 0717-6256751      13177090861
    Fax: 0717-6256751
    Web Site: http://www.yichanginvest.gov.cn
    E-mail:yczyonggg@163.com
    Address: Hongxi Road 13, Yichang City
    Post Code: E-mail:yczyonggg@163.com




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                   Baizhaoshan Cultural Scenic Spot Project

    I.Background information
    This project, having many ancient relics of Li Bai culture, possesses of abundant cultural
tourism resources of Li Bai. It is planned to exploit projects covering gate of the scenic spot, Li
Bai statue, Taibai Hall, forest of tablet of Li Bai’s poem, woods of peach, the originator hall,
Tang-style street, Baizhao Temple, former residence of Li Bai, wedding custom performance
ground, poetry village, Bishan Temple, Longquan Taoist Temple, alteration of Li Bai country villa,
Biyun country villa and Li Bai teahouse and restaurant, occupying an area of 49,400 sq.m.. This
project, conforming to Anlu Tourism Development General Planning, is authorized to implement
by Hubei Development and Reform Committee and Hubei Tourism Administration.
    II.Market analysis
    Haishi highway passes the foot of Baizhaoshan. This scenic spot joins Wuhan in the south and
meets Wudangshan and Longzhong in the west. Thus, it is located in the center of Hanshi tourism
hot route. Moreover, Li Bai poetry culture has profound connotation and graceful natural
environment, turning into the best choice of tourists to seek for historic site and quiet together
with return to the nature. Therefore, there is great tourism exploitability with quite considerable
market prospect.
    III.Total investment and the composition
    Total investment amounts to US$30,000,000.
    IV.Benefit forecasting
    The annual revenue amounts to ¥34,800,000. Thus, the investment recovery period is 5
years.
    V. Cooperation mode
    Joint venture, Sole investment, exploit the leased out woodlands or others.
    VI. Project progress
   This project has been established. The feasibility report is finished.
    VII. Contact information
     Unit: Xiaogan Commerce Bureau (Investment Promotion Bureau)
     Contact: Yan Dashuang      Deng Ling
     Tel.: (0712)2832556
     Fax: (0712)2822944
     E-mail: xgshangwu@163.com

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Web site: http://www.xgswj.com; http://www.xgswj.cn
Post address: Chengzhan Road 36, Xiaogan City, Hubei Province
Post code: 432000




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       Bachawa Scenic Spot Tourist Resource Exploitation Project

    I.Background information
    20 kilometers south to Xiaogan city and over 70 kilometers to Wuhan, Bachawa scenic spot
adjoins Haishi Highway, Jingzhu Highway, National Highway 107 and Jingguang Railway. Except
for preferable natural environment, there are reservoir region where water area covers over 3,000
mu and afforestation fields on the mountain over 2,000 mu in the scenic spot. In the reservoir
region, branches of river interlace; green hills and blue waters reflect mutually to increase
brilliance. There are also peaceful and elegant surroundings, pure and fresh air, flocks of transients.
Throughout the entire year, the reservoir is always full of limpid water with PH value 6.8 and
dissolved oxygen 8.4MG/L. Therefore, it is a nice place for summer and holiday.
    II.Market analysis
    The exploitability of Bachawa scenic spot is highly potential. As a result, it is a project with
considerable prospect. White Swan Holiday Village, Xiaogan Tax Training School and Hubei
Tailong Special Agriculture Exploitation Company have taken a share in this scenic spot and have
already gained favorable economic benefit.
    III.Project scale and content
    This project includes: Flavor Folk-custom Garden, Longmiao Holiday Village, water
amusement facilities, golf training field and professional technical training center, etc.. It is
planned to build a multifunctional tourist resort which covers sightseeing, amusement and
conference.
    IV.Total investment and the composition
    Total investment is US$20,000,000, which is planned to acquire from investment in whole or
in part.
    V. Benefit forecasting
    The annual volume of business shall amount to US$10,000,000. The investment recovery
period is 4 years.
    VI. Cooperation mode
    Cooperative venture, Sole investment or others.
    VII. Project progress
    This project has been established. The feasibility report is finished.
    VIII. Contact information
    Unit: Xiaogan Commerce Bureau (Investment Promotion Bureau)

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Contact: Yan Dashuang    Deng Ling
Tel.: (0712)2832556
Fax: (0712)2822944
E-mail: xgshangwu@163.com
Web site: http://www.xgswj.com; http://www.xgswj.cn
Post address: Chengzhan Road 36, Xiaogan City, Hubei Province
Post code: 432000




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           Thousand-Buddha Cave National Forest Park Project

     I. Background information
     Shilipai tree farm of Jingmen was built in 1953, occupying an area of over 50,800mu, and
32,000 mu of them are located in urban area of Jingmen. In accordance with Jingmen urban area
development general planning, Thousand-Buddha Cave National Forest Park is brought into the
general planning for urban construction. It is under construction now.
     This park is in the middle part of Hubei Province. It connects with Wuhan in the east and
with Yichang Three Gorges in the west. In the south, it reaches Jingzhou Ancient City; in the north,
it meets Xiangyang Longzhong. As a celebrated historical cultural city, it enjoys the reputation of
Gateway of Jingchu. In 1992, Department of Forestry approved to build the Thousand-Buddha
National Forest Park which covers an area of 3,000 mu in this forested region in the Document
[1992]24. The city Party committee and city council of Jingmen have brought this park into the
ten-year development planning of whole city. In 1992, it was authorized through the general
planning of Hubei Forest Survey Institute. Now the total investment is over ¥4,000,000.
Infrastructure construction in part of the scenic spots and sight spots is completed.
     II.Project description
     This area includes plenty of historic sites of         figures and cultural heritage covering
Dongshan Tower built in Sui Dynasty, Huyaguan built in Tang Dynasty, Monk Tower where
monks cultivate themselves and inhabit, quiet Thousand- Buddha Cave , limpid Pinquan that
never drains in all seasons. There are also other historic sites such as spring, Baiyun Mansion,
reading terrace, etc.. This scenic spot falls into 7 scenic spots and 47 main sight spots.
     It is north to the scenic spot. There are Dongbao Mountain, reading terrace and famous
hillock terrace in mountains of Jingmen. The main sight spots are: east tower, Sui style pavilion,
tower corridor, gate pavilion, tower screen wall, TV station screen wall, reading pavilion, etc..
     Jiangjun Mountain scenic spot: As the entrance of the north of the scenic spot, it is south to
the East Pagoda and adjoins to the city center. The main sight spots are: Jiangjun Mountain,
Jiangjun Pavilion, Yinzi Gate, Sanjiao Pavilion and the northern gate of the scenic spot.
    Botanical Garden scenic spot: It is south to the Jiangjun Mountain and consists of rare plants
garden, viewing garden and Bonsai garden. It is planned to introduce cultivated plants 50 families
with a total of over 400 varieties.
    Thousand-Buddha Cave scenic spot: It is in the heart of the whole scenic spot and consists of
Thousand-Buddha Cave, Thousand-Buddha Temple, Pinquan Well, Pinquan Teahouse.

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     Temple Gate scenic spot: South to the Thousand-Buddha Cave scenic spot, it is located at the
side of the Huyaguan Road which is the primary road of city center. It is planned to build sight
spots such as the gate of the scenic spot including Monk Tower (sightseeing terrace),
mountaineering pavilion, mountaineering corridor, etc. and amusement facilities such as
playground, bumper cars ground, cable car, hippodrome, etc.. Simultaneity, construct buildings
such as druids altar, parking lot, temple gate, management of the scenic spot, ancient business
street, etc..
     Longtan Lake scenic spot: The length of the lake surface is over 400 meters, and the width
varies from 20 to 80 meters. It is planned to construct the following sight spots: Longtan pavilion
on the water, dragon boat, mid-lake pavilion, pavilion on lakefront, mid-hill pavilion, Longshou
bridge and picnic field.
     Spring Scenic Spot: It is located in the south of the scenic spot, in which the spring is never
dry all the year round. The water temperature is over 30 ℃. There is a spring holiday village now.
It is planned to construct Spring Hotel Qiren Teahouse, spring swimming pool, spring villa,
pergola, summer shelter and Fishing terrace.
     Total investment is ¥ 170,000,000, of which: ¥ 80,000,000 are for the scenic spot
construction; ¥ 40,000,000 are for tourist service facility work; ¥ 17,000,000 are for
transportation construction work; ¥16,400,000 are for water and electricity, communication and
greening work; ¥16,400,000 are for the rest.
     Out of the total investment, ¥150,000,000 come from promoted investment, ¥10,000,000
are supported by the government and ¥10,000,000 are self-raised funds.
     After constructed, the annual amount of visitors may be 500,000 and the opening revenue may
exceed ¥50,000,000-80,000,000. This project can produce not only favorable economic benefit
but also obvious social benefit.
     V. Cooperation mode: joint venture or cooperative venture
     VI.Project progress: This project has been established. Part of the essential work is
implementing.
     VII. Contact information:
     Unit: Jingmen Shilipai Tree Far
     Contact: Sun Longze       Mobile telephone: 13597968501
     Tel.: 86—0724—2441679




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                          Buddhism Tourism Exploitation

   I. Background information
   Sizu Temple and Wuzu Temple in Huangmei are world famous ancestral temples of Zen
Buddhism and Buddhist resorts enjoying superior geographic location where there are plenty of
view spots, beautiful scenery and profound Buddhist cultural deposit. Seated in Lotus Flower
Mount of Ziyunshan Mountains which is 28 kilometers north to the county seat, Nuobu Garden is
a place of eternal peace and prosperity belonging to Wang Keshou who is a Shang Shu (a high
official in ancient China) in Department of War in feudal China in last years of Ming Dynasty.
With an altitude of 1,244 meters, in the height of summer, daily average temperature in this garden
is only 21-28℃, which makes the garden a distinguished summer resort in the east of Hubei
Province. Relying on Wuzu Temple and Sizu Temple, exploit tourist resource in Nuobu Garden
and Laozu Temple, expand the sight spots in Laozu Temple and new build a mountain resort
Nuobu Garden to attract tourists and tourist parties from areas of Hube Province, Jiangxi Province
and Anhui Province that are close to Huangmei. Moreover, construct tourist product processing
base and implement that of market development for the sake of meeting the continuous ascending
demand.
     II.Market analysis
     This area has integrated with the Huangshan Mountains, Lushan Mountain and Tianzhushan
Mountain, which will attract Buddhists, tourists from areas of Hubei Provine, Jiangxi Province
and Anhui Province that are close to Huangmei and tourist party from Hongkong, Macao, Taiwan
to meditate, worship and spend holiday.
     III.Project scale and content
     Relying on Wuzu Temple, exploit Buddhistic bethels like Sizu Temple, Wuzu Temple, Laozu
Temple and summer resort Nuobu Garden integrally to exploit tourism product market.
    IV.Total investment and the composition
      More than US$25,000,000.
    V. Benefit forecasting
      The annual profit payments and tax turnover is US$4,600,000. The investment shall be
recovered in 6 years.
    VI. Cooperation mode
      Sole investment or joint venture
     VII. Project progress

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     Now there are more than 10 hotels and hostels. The roads are straightway to the mountaintop.
The infrastructure is favorable.
     VIII. Contact information
      Contact: Huangmei Investment Promotion Bureau       Shang Shenghui 0713--3352527




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                           Forest Park Project Introduction
     I. Background information
     The national forest park will be constructed into a tourist scenic spot with large scale which
covers skiing, drift, expedition, sightseeing, science popularization, novelty seeing, etc.. Forest
park construction is a favorable turning point at which tourism in forest region becomes a brand. It
is also a momentous joint in the One River and Two Mountains pattern of the provincial
government      together      with    the    golden      tourist    route,    namely      the    Three
Gorges-Shenglongjia-Wudangshan.
     II.Market analysis
     It is estimated that the visitors received at initial stage will amount to 100,000 and will rise up
to 200,000 year after year.
     III.Project description
     Except the nature protection area, all the scenic spots and unexploited tourism resources
along National Highway 209 and Ciba Highway mainly includes: Niuchangping, Wild Horse
River, Hongping scenic spot, Yantian scenic spot, Baicaoping scenic spot, Huanglongyan scenic
spot, etc..
     IV.Investment and source
     Total investment is ¥80,000,000. Source: investment promotion or self-financing.
     V. Benefit analysis
     The annual revenue is ¥30,000,000 and ¥12,000,000 profit payments and tax turnover can
be obtained. The investment recovery period is 7 years.
     VI. Project progress
     Work in the earlier stages has been finished completely till now, and construction of part of
the project has been accomplished.
     VII. Cooperation mode
     Sole investment, joint venture or others.
     VIII.Contact unit
     Address: Muyu Tourism Development Zone, Shennongjia Forest Region
     Unit: Shengnongjia Tourism Development (Group) Limited
     Contact: Wang Lin
     Post code: 442421
     Telephone: 0719-3452491
     Fax: 0719-3453129

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 Development Project of the Three Kingdoms-Wei, Shu Han and Wu
                           Cultural City

     I. Background Information
     Dating from the Paleolithic Period, Jingzhou has a long history. People began to live and
procreate on this land as early as about fifty thousand years ago. About five thousand years ago,
China was devided into nine prefectures in Yu Gong and Jingzhou, one of the twelve most famous
ancient capitals in China, was among them.From 689 BC when Chuwen King chose Yi (Jinan of
Jingzhou )for his capital to 963 AD when the kingdom of Jingnan was conquered, Jingzhou had
been the capital of 34 monarches early or late lasting more than 500 years in all. During the Three
Kingdoms period, Wei, Shu Han and Wu became three great powers in China and Jingzhou was
scrabbled for by all of them for its strategic importance.
         Splendid culture has survived the long history and Jingzhou is the birthplace of Chu
culture. There had been 20 monarches of Chu Kingdom , which was among the five dominatingl
kingdoms of the Spring and Autumn Period and the seven powerful states of the Warring States
Period, establishing capital in Jingzhou lasting as long as 411 years. When Chu Kingdom was at
its height , it took up half of China’s territory of the day and became a super kingdom with
hundreds of carriages and thousands of horses.The splendid Chu culture, crearted by ancient
people on this land, may compare favourably with the ancient Greek culture of the time.It boasts
of the exquisite arts of weaving, smelting, forging, casting, and lacquering. In addition, the
philosophy of Lao Zi and Zhuang Zi and the literature of Zhuang Sao also have achieved
outstanding achievments. It can never be exaggerated to say that all of the primes of the Zhou
Culture can be found in the extraordinary Chu Culture.
         Jingzhou is the center of the Three Kingdoms culture. During the Three Kingdoms period,
Wei, Shu Han and Wu fighted each other vehemently for Jingzhou. So this ancient city has
witnessed countless all-powerful heroes and outstanding persons. And many legends and stories
have been handed down. 72 chapters among the 120 chapters in the Romance of the Three
Kindoms are about Jingzhou, such as borrowing Jingzhou, getting Jingzhou back, attacking
Jingzhou and falling Jingzhou and so on. They just like scenes of thrilling war drama of ancient
China. Loyalty and righteousness of GuanYuare, who was one of the whole shows of the Three
Kingdoms Period and guarded Jingzhou for ten years, have been paid homage to by common
people ever since ancient time. And the Guangong Culture deriving from him has exerted
wondrously great and wide influence on people’s spirit and thoughts.


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     Jingzhou is also the center of folk-custom culture of Jianghan. Cultural accumulation of
thousands of years has made it a huge treasury of folk custom cuture full of beautifu and
extraordinary things , such as lyric and romantic singing and dancing, well-known folk arts and
operas(Chu Opera, Han Opera, three-stick drum, ballad of Mashan, puppet play and shadow play),
and needlework, bamboo slips, bronzy vessels, root carving and woodworking that have great
ingenuity. In addition, you can also find delicious eight-treasure dishes from court, famous dishes
from Three Kingdoms and the folkway with lingering charm and so on, all of which are famous
both at home and abroad, forming the unique folk-custom tourist resources.
     Jingchu is is a place propitious for giving birth to great men. Qu Yuan and SongYu- Father of
Ci and Fu, Lao Zhang,-Father of philosophy, You Meng,-Primogenitor of Opera, Lu Yu,-Tea Sage,
Chu Zhuang King -Overlord of the Spring and Autumn Period were all from Jingzhou. And
Jingzhou also has nursed Sun Shu’ao- the loyal official, Cen Wenben, Cen Changqian and Cen Yi
–three prime ministers from one family in Tang Dynasty, Zhang Juzheng –the Most Outstanding
Prime minister in Ming Dynasty and three great masters of literature from Gong’an County-Yuan
Zongdao, Yuan hongdao and Yuan Zhongdao.
     Rich Cultural Relics Ancient City- Jingzhou has experienced hundreds of eventful years,
and lots of cultural relics have been left, which make it one of the great cities of cultural relics
throughout the country. At present, there are more than 500 historical and cultural relics under
protection, among which 7 historical and cultural relics are under state protection. Though having
a long history, the ancient city is still in good condition, which is a wonder in china even in the
world. It may be regarded as a monument in the history of ancient city construction and the
archaeologists call it ―a rare superlative in South China‖. Moreover, there are more than 30
cultural sites of Three Kingdoms such as Guan Yu Temple, GuanYu Dian Jian Tai (a platform for
Guan Yu to call the muster roll of officers and assigning them tasks),One Load of Earth of Zhang
Fei, Wulin Zhai-an ancient battlefield of the Red Cliff, ancient path of Hua Rong, Liu Langpu,
Xuan Emperor Palace of Liu Bei and Site for Guan Yu to Have the Poison Scraped off his Bone
and so on. In addition, there have been lots of popular anecdotes and legends still going round
among common people.
     Superior Location Jingzhou has been called ―South Gate of China‖from of old, for it is
located in the center of China’s territory, with Jiangsu Province and Shanghai to the east , Hunan
province on the south, and Sichuan province to the west and it has extended northward to the
central plains (comprising the middle and lower reaches of the Huanghe River). Located at the
interjunction of the Centra China and Southwest China, and surrounded by such traveling

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destinations as Wuhan, Chongqing , Zhang Jiajie and Yueyang and so on, it is an inevitable place
for traveling to the Three Gorges on the Changjiang River, visitinging the ancient road of the
Three Kingdoms Period and enjoying the pleasant scenery in Zhang Jiajie. Jingzhou is integrated
of highway, railway, aviation and waterway, with 318 national highway and Shanghai – Chengdu
speedway running from east to west and 207 national highway and Taiyuan-Ao’men speedway
from north to south. Jiao-liu railway runs through Jingzhou, and the local railway built by
Jingmen and Shashi meets the Jiao-Zhi Line. In addition, the Wuhan –Jingzhou-Yichang section
of the Shanghai-Chengdu special railway line for transporting passengers wll be completed and
open to traffic. Yanka Port is the state first-level trading port. The International Air Port of Three
Gorges is only 45 minutes’ driving from the city zone of Jingzhou.
     Sound Foundation Jingzhou is an excellent tourist city with four national 4A scenic spots,
among which Jinan city –Capital of Chu has been included in the State Protection Planning of Ten
Cultural Relics and inviting investments for the project of Chu Culture has been in full swing.
Jingzhou Museum, listed on top of the national prefecture-level museums, is among the first 4A
museums in china with 130 thousand cultural relics collected, among which 300 pieces (sets)are
national first-level.In addition, there are other items can be developed into popular trademarks,
including the countless groups of archaic sepulchers of different dynasties, the Three Kingdoms
period included, former residences of the celebrities, and the Taoist temples, Buddhist temples,
palaces and shrines spreading all over the urban district. In recent years, Jingzhou government has
accelerated the construction of tourism facilities. With a group of landmark projects finished and
the afforestation coverage in the urban area coming to 34%, Jingzhou has become a typical watery
and landscape garden city.
     Huge market Jingzhou is an important travel industry site of four elaborate traveling lines
in Hubei province., among which the traveling line of three gorges on Changjiang River has the
highest economic value in Chiese touristrm, receiving more than 7 million travelers at home and
abroad per year , among which more than 4 million come to Hubei. At present, Jingzhou is
receiving travelers about 1 million per year. And the construction of Three Kingdoms cultural city
will surely attract more visitors to Jingzhou.
      II. Founctional Orientation of the Cultural City
     Jingzhou is the old haunt of the Three kingdoms and is also the the birthplace of Guan Gong
culture, which make it a unique tourist resource. This cultural city will make Jingzhou an
irreplaceable traveling industry site in the whole national tourism industry by building up the
tourism image of headstream of Guangong culture and the ancient battlefield of Three Kingdoms

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Period, giving prominence to exhibiting the profound connotation of Guangong culturte and
creating a Guangong trademark with the most powerful market impeling potence.
     Exhibiting Center and Worshipping Center of Guangong Culture
          Based on the authentic work of the Three Kingdoms Period (Guan Yu Temple) and the

construction of Guan Yu Garden, construct Jingzhou into the most influential worshipping center of

Guangong culture in China, surrounding the main theme of Guangong culture to show Guan yu’s good

faith and loyalism and the elegant demeanor of the Military Sage in ancient China omnidirectionally.

      Three Kingdoms Culture Spread Center
      Explore the advantages of human culture resources in Jingzhou. With history of Jingzhou written

in the 72 chapters in The Romance of the Three Kindoms as main line and cultural city of Three

Kingdoms as a window, exhibit the soul of the politics, economy, military and culture of the Three

Kingdoms period and create the largest, finest and the most systematic and integrated exhibiting center

of the Three Kingdoms culture.

     Exihibition Center of China Ancient City Wall Culture
     On the base of the reality of the ancient Three Kingdoms city, show the soul of the China ancient

city wall culture in the respects of construction ideas, design ideas and enviromental structure and so on

to make Jingzhou the biggest exihibition center of ancient city wall culture in China.



    III. Overall Arrangement of the Three Kingdoms Cultural City
     In accordance with the overall image of Jingzhou tourism, overall arrangement and
construction of the cultural city give priority to Three Kingdoms culture and combine the natural
landscape with human landscape and functional section(point) in an organic manner. All units
exhibit the human landscape of the Three Kingdoms collectively. Each sight spot is independent,
and at the same time, is interrelated with each other, forming a functionally complete travel
industry site.
    Guan Yu Garden:Guan Yu , who is a notable general during the Three Kingdom Period,
guarded Jingzhou for ten years. He, the embodiment of loyalty, justice and braveness has been
honored as Military Sage down the ages and was granted more titles as the nobility, State Guan,
and Emperor Guan and so on. He has also been claimed by both the Buddhism and Taoism, being
granted Great Master by the former and Holy Emperor by the latter. And each sticks to its own
view. GongYu also has great impelling potence in Japan and Southeastern countries, where he is
offered sacrifice to as the God of Wealth by businessmen and as Patron Saint by common people.
And Gu Yu garden, built with great expectations from common people, will be a holy land to

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make a sacrifice to Guan Yu. It is planned to be constructed inside the south gate of the ancient
city, extending from the city wall in the south to south of the Jingzhong Road in the north, which
will cover about 1 square kilometer, the existing Guan Yu Temple and General Mansion
included(restored architecture).
       1. Constructing Garden in Accordence with Its Original Looks
     (1) Square for Memorial Ceremonies The largest Guan Yu memorial square in China will be
built here. Sculptures describing all his life will be made in the sequence of the important events
he experienced.
     (2) Gate of the Temple Qing and Han style (Attracting Point of the ancient architecture)
     (3) Front Hall Show the life of Guan Yu and the titles given to him in all ages.
     (4) Zhao Bi (The Screen Wall Facing the Gate) The front of the wall is decorated with
dragon design, and the other side is carved with a series of pictures telling such stories as Peach
Garden Pact and so on. (Attracting Point: the huge screen wall, 4.5 meter in height and 18 meter in
width, arc-shaped is decotated with a colourful dragon to display the great royal momentum. )
     (5) Altar It’s a round hathpace with the function of keeping time (Attracting Point: different
consuetudinary sacrificial ceremonies will be presented on the altar, showing different customs
such as official custom, folk-custom and so on , which will be the marrow to attract visitors.)
    (6) Ikon The largest ikon of Guan Yu will be built, with 20 meters in height and the parapet wall
foundation of which is a 20 × 20 square. (Attracting Point: With great momentum, it will create great

visual effects.)

    (7) Guan Yu Temple It will be restored to the original scale of the 29th year of Hongwu of
Ming Dynasty. The construction mainly consists of the main gate, decorated archway, second gate,
Ceremonial gate, main hall, San Yi Hall, Imperial Study Building, Chong Sheng Ci, corridor in the
east and west respectively, San Yuan Pavilion, Zhenwu Pavilion, Bell tower, drum-tower, some
ancient gingkoes and ancient dragon cypress and so on. The newly-built Guan Yu Temple will be
the main site to make sacrifice to Guan Yu.
    (8) Guan Yu Mansion Guan Yu Mansion will be restored to the west of the Guan Yu Temple to
show how Guan Yu transact the official business during the ten years when he was guarding
Jingzhou and his lifestyle. The mansion will be built with one garden and three gates.
     2. Hold Sacrificial Ceremonies in Conformity to the Royal Customs, Buddhist Customs
and Taoist Customs
     Routine sacrificial ceremonies:Hold Buddhist ceremony and Taoist ceremony each for one
time. Visitors can make sacrifice following the folk custom at their convenience.

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     Anniversary Ceremonies:Anniversary ceremonies will be held with the theme of making
sacrifice to Guan Yu, following the royal official customs.
     Academic Discussion :A forum on Guan Xue will be held every year, inviting scholars both

at home and abroad.
     3. Represent the Deeds of Guan Yu in Time Sequence
     Tourist Site of City Wall Landscape
     The Ancient City of Jingzhou is well-known both at home and abroad. People are marvelled
at its magnificent bearing, exquisite art of architecture and its wholeness after so mang years.
Making full use of the historical cultural heritage we plan to construct a unique tourist site of city
wall landscape with the theme of showing the ancient city culture and water culture. City moat
will be harnessed by broadening the water surface and dredging the watercourse. In addition,
every city gate tower, city gate and hanging bridge will be restored and some functional sight
spots such as towers, waterside pavilions etc. will be constructed along the river. These functional
sight spots wil add radiance and beauty to each other, and form distinctive     city landscape. Have
a set of yachts made with distinctive features(towerships, lotus-picking ships, skullships, warships
etc.) to construct a ship museum on the water. And develop a series of entertainment product mix
on the water, which mainly includes poetry, music, singing and dancing , tea shops , boxing
performances and dragon boat contests for the visitors and so on. Lighting project will also be
conducted, using the lights with cold colour to decorate the magnificent city wall and the lights
with warm colours to adorn the yachts, running water , towers, and waterside pavilions.
     Tourist site of Three Kingdoms Ancient Battlefield
     Tourist site of Three Kingdoms ancient battlefield is planned to be located in the southeast of
the existing ancient city, covering about 2.5 square kilometers. Military distributions of important
wars in the Three Kingdom Period are gathered here on display, which feflect the soul of politics,
economy and human culture of Wu, Shu and Wu from the angle of military.
     1. Exhibition of the Battle Scene:How the armies of Wei, Shu, Wu are embattled and the
wonderful actual combats described in The Romance of the Three Kindoms are exhibited. How
the three heroes fight Lv Bu will be shown in the Jian Hulao Barrier. Empty-city
stratagem( presenting a bold front to conceal a weak defence) will be demonstrated at Gongan
gate (water gate of the east gate)and Ancient City. Navy will be arranged at the water area of
Jiulong Yuan to act the scene of To Borrow Arrows with Thatched Boats. Beacon towers wil be
built and smoke will be created (fire beacon along the border to signal alarm in ancient days) to
glamorize the atmosphere of information war. Seven Stars Platform will be built to act the scene

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of Borrowing the East Wind during The Battle of Red Cliff. The Dian Jiang Tai (a platform for
calling the muster roll of officers and assigning them tasks.) and Jun Jiao Field (a field for the
ancient army to exercise) will also be constructed to show how soldiers are dispatched by military
orders. In addition, some other scenes are also constructed such as maze of the Eight Diagrams
created by Kong Ming, stratagem hanging bridge and layout of defence on the moat and Long
Slab Bridge which will show the story that a bridge got broken by a roar of Zhang Fei and so on.
      2. Exibition of Guan Yu as Military Sage :Money won’t make Guan Yu’s mind disturbed
and the rank of nobility won’t change his will. The elegant demeanor of this Military Sage will be
represented by some of his experiences and stories such as weeding out the wicked and letting the
law-abiding citizen live in peace, the Peach Garden Pact, Fighting Lv bu, Hua Xiong Dies While
the Wine Is Still Hot, Taking a Single Sword to the Banquet, Taking Five Passes and Killing Six
Generals, Submerging Seven Army Corps and so on.
     2. Exhibition of the Micro-sights of the Battles: Double-Cross used during The Battle of
                                                      The
Red Cliff will be shown by the tiny military camps of the Wei navy and Dong Wu navy, military
flags and camps of the commanders-in-chief at the Jiu Long Yuan and on the the moat around
south of the city. The naval port and anchorage ground will also be built to perform the Battle at
Guan Du.
     3. Exhibition of Huge Sand Tables about Wars:Sand tables of the war zone of Submerging
Seven Army Corps, and Han Zhong war zone will be created. And the story of Passing Chengcang

Under Cover of Building the Plank Road Along the Cliff will be shown.

     4. Exibition of Traditional Operas about Battles:Military arena will be set up to demonstrate
the eighteen kinds of weapons. Taking a Single Sword to the Banquet and Having a Verbal Battle
with the Group of Scholars will be performed in the Three Kingdoms Theater to be built. Defining a

Hero While Warming the Wing, Meng Huo is Caught and Released Each for Seven Times, and        Hua

Xiong Dies While the Wine Is Still Hot etc. will also be performed.

     5. Exhibition of Battles by Four-dimensional Phonotape and Vidiotape:Four-dimensional
Phonotape and Vidiotape will be created to show the war scene vividly, and visitors can take part
in it. Military tactics carved in the bronzy vessels and ancient military thoughts will be
demonstrated.
     Theme Museum on Three Kingdoms
     Though it was only a short time, The Three Kingdoms Period has inherited the charms of
Chu-Han Culture. So human wisdom can also be seen during the turbulent period. And the Theme
Museum on Three Kingdoms will gather the quintessence of the historical culture created during

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that period.
     Theme Museum on Three Kingdoms is planned to be located in the northwest of the ancient
city. Making full use of water area of the Three Kingdoms Garden and the quiet and pleasant
environment, we plan to build a distinctive watery and garden museum community with the theme
of characters, weapons, classical legends and so on.
      A street of celebrities of Jing Chu
     Extend the Zhang Juzheng Street westwardly to Zhong Gu Lou to build a street of celebrities,
which will show the elegant demeanour of such celebrites as Chu Zhuang King, Qu Yuan, Lao Zi,
Zhuang Zi, You Meng, Sun Shu’ao , Cen Wenben, Cen Changqian, Cen Yi , Zhang Juzheng and
―Three Yuan‖from Gong’an County and so on respectively in different angles of view.
     A Street of Folk-custom Culture
     Jiang Han folk-custom culture plays an important role in the Chinese traditional culture and
is an important tourist resource. The street of folk-custom culture is to be located in Jing Bei Road,
which will gather the prime of the Jinag Han folk customs and practices and represents it
completely and systematically in the ways of demonstration, performance and appreciation, and
by experiencing it by visitors themselves. The construction mainly includes Jiang Han
Folk-custom Palace, Jiang Han Gourmet Street, Xi Su Garden, quyi garden, and Study garden etc.
      A street of Workshops of Traditional Arts
     The street of workshops of traditional arts is to be constructed at Jingdong Road, which will
be the main artery to show Jing Chu traditional arts. (a street of traditional arts) This scenic spot
gathers all the prime of arts and crafts from Jingzhou and other regions. Visitors can get much
knowledge from the theme workshops along the street maily by seeing by themselves and
watching the dynamic demonstration and also can do it by themselves in the specilal spots for
visitors if they like, which are two main characteristics of this scenic spot. So visitors not only can
purchase their favorite artworks but also can get to know how they are made, and they can even
make them by themselves to experience the particular pleasure. In this process, they can how
abundant and rich Jingzhou traditional culture is. What are laid in the streets are Chu Qi Fang,
Chu Si Fang, Zhujian Fang, China Clay Mill, Cloth Mill, Wood Art Mill, Cao Zhu Fang, Cooper
Art Mill, Dyehouse, Root Carving Garden, Jing Fang Yuan, Comb Family, Clock Ge, Zi Sha Ge,
Jiang Cai Garden, Cao Fang and Exhibition Corridor and so on.
      A street of Leisuring and Entertainment
     The street of Leisuring and Entertainment is to be constructed between Yi Du and the new
south gate, which mainly includes advanced coffee house, saloon, bowling Café, beauty salon or

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center, Fitness Center, Sauna Bathing Center, disco bar and KTV bar. There are also some music
bar, tea salon, well-being center, chess and cards salon and chatting bar to enrich visitors’ life at
night.
     A Street of Traditional Recreation
     Jingzhou was an important city for the emperors. They established their capitals here ,
stationed troops, or set it as an important prefecture city. So ever since the Spring-Autumn and
War Dynasty, it had always been the political, military, cultural, and commercial center of south
China. The ancient royal and folk recreation games have been popular with people for hundreds of
years, and even today, we can still find various interesting traditional games in the form of battles
of wits , cleverness and strength. Having experienced hundreds of years, these games can show the
traditional culture well, which will provide a good chance for the people who are busy rushing
about in the tide of modern commodity economy to relax themselves. So they may be a great
charm to these people. This traditional recreation street is to be located inside the new north gate,
which mainly includes museum of the ancient games and sports, arenar, Juqiu Guan, Dou Shou
Guan and Youyi Guan etc.
     A Street of Tourist Commodities
     The tourist commodities industry of Jingzhou is quite promising. The existing Three
Kingdoms cultural street mainly displays Jingzhou artwares and workmanship and famous
travelist artwares from other regions of China. Based on this cultural street, a largest travelist
commodities exhibition center in the central section of China will be constructed in Huatai of
Jingzhou. In this way, tourist commodities industry of Jingzhou will bring along tourist
commodities industry of the neighbouring cities and it will also develop in the direction of large
scale operation, marketization and branding.
     Theme Palaces and Buildings
     Xuan Emperor Palace Xuan Emperor Palace , where Liu Bei resided when he borrowed
Jingzhou, consists of three levels of spectacular architectures, including ceremonial gate, side hall
and imperial palace. Ceremonial gate is decorated by a China’s biggest Xi made of flowers of thin
silk, a set of scarlet lanterns and a set of scarlet silk balls. There will also be colourful silk banners
with dragon and phoenix decorated above the ceremonial gate and colourful ground spotlights in
front of it. Side hall is the place where officials and military generals waited for the emperor to
hold court and celebrated the emperor’s wedding. The distinguished friends and guests also went
to this hall to celebrate the emperor’s wedding. And Xuan Emperor entertained his officials and
guests here too. Three Bridges are a indispensable part of the palace. Behind the bridges, platform

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was built on which the imperial palace was located. Structure of the imperial palace assumes the
shape of Ping(a Chinese character), with Chao Tang (the hall for holding court) in the middle ,
Xuan Emperor’s sleeping palace on the left and A’Dou’s living room on the right. Chao Tang
and sleeping palace etc. are all decorated in accordance with royal wedding customs. Furniture
and appliances etc. are all set in the way that they should be set in the ancient days. Priority of the
tourist items in Xuan Emperor Palace is given to the wedding of liu Bei. Set off by the huge
imperial architecture of Han Dynasty, daytime show will be combined with evening show .The
whole performance won’t be less than 40 minutes.
   Three Kingdoms Opera Tower          The opera tower, to be built by following the example of the
ancient architecture during the Three Kingdoms Period, combines singing and dancing,
performing and broadcasting, leisuring and entertaining, variegated experiences and catering into
one with many halls and boxes in it such as performing hall for Chinese traditional music,
multifunctional performing hall, Chinese and western dining halls, archaized boxes, coffee house,
and tea house and so on. The decoration of the opera tower has imitated the exhibition corridor of
classic cultural relics of the Three Kingdoms, the exhibition corridor of classic ancient calligraphy
and painting works, and the exhibition corridor of waxworks of the Three Kingdoms celebrities
and so on. In short, the faint fragrance of the woodenwares painted with ancient lacquer, graceful
dancing, sweet folk music and delicious royal dishes are combined into one in this tower, which
will place visitors in full-bodied atmosphere of the Three Kingdoms culture to drink in the
richness and profoundness of historical culture of Jingzhou .
   Sizhu (traditional stringed and woodwind instrument) Palace           With the theme to represent
the culture of the watery regions once more, Sizhu Palace is mainly for classic music and Jianghan
folk music performances. The main architectures are archaized with pavilions,terraces, towers and
gardens aroud, which creates a peaceful and graceful cultural environment and can make visitors
enjoy the charm of the traditional stringed and woodwind instruments while leisuring and
entertaining.
      Three Kingdoms Palaces        Three Kingdoms Palaces are built in the ancient styles of each
kingdom.
     1. Shu Palace Shu Palace is to be built outside the east gate of the Ancient City, measuring
against the international five-star standard and centering on Shu culture.
     2. Wei Palace      Wei Palace is to be built near the north gate of the Ancient City, measuring
against the international four-star standard and centering on Wei culture.
      3. Wu Palace Wu Palace is to be built near the west gate of the Ancient City, measuring

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against the international four-star standard and centering on Wu culture.
     Names of the shops, functional halls and dishes in the Three Kingdoms palace are all from
the stories and allusions. Shop signs, decorating artworks and artwares, articles for visitors’ use,
souvenirs for visitors and dress and adornments of the staff are all in the style with full-bodied
local characteristics of Wei, Shu and Wu. So the palaces are overflowing the human culture of
Three Kingdoms.
     Stratagem Guan     Stratagem Guan, based on the classical military stratagems from the Three
Kingdoms period, is to be constructed at Xiao Bei Men of Jingzhou to show the eximious military
talent, statesmanship and stratagems of such Three Kingdoms personalities as Zhu Geliang etc.
Some programs are designed for visitors to participate in and some mental games are also
provided.
   Three Kingdoms Special Dishes           Jiangling Hotel will be replaced by Three Kingdoms
Special Dishes, which will introduce various special dishes from Three Kingdoms period and
make a unique trademark.
     IV. Investment Analysis of the Three Kingdoms Cultural City
     Based on the cultural history of the ancient city and landforms around, the overall functional
arrangement of the Three Kingdoms Cultural City centers about traveling, purchasing,
entertaining, catering, accomodating and transporting. Promoted by this project, Jingzhou tourism
will be upgraded fundamentally.
     Volume of total investment of this project is about 5 billion RMB. If 3 million visitors are
received by the Three Kingdoms Cultural City every yeaar, and every visitor stays for two days on
average, then the gross sales will come to 2.4 billion RMB( national standard of consumption is
about 400RMB per person per day on average at present) , total revenue will be 1.2 billion
RMB and operating profit will be 0.7 billion RMB, which means the investment can be recovered
in about seven years.
     During the 11th Fiv-Year Plan period, city committee of CPC and the municipal goverment
of Jingzhou will make efforts to promote the tourism , and we have established the strategic
objective-‖ Developing a Large Tourism, Founding a Huge Market, Forming a Large-scale
Industry ― . We welcome sincerely domestic and overseas friends from all walks of life to come to
Jingzhou for sightseeing, investment and cooperation. We provide preferential policies for the
Development Project of Three Kingdoms Cultural City in the respects of land supply, taxation,
stipulated fees for construction and resettlement etc.
Resources Advantage and Development Feasibility

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     1. Jingzhou is rich in tourist resources of Three Kingdoms culture, for it is a well-known site
engaged in many fierce wars during the Three Kingdoms Period and has much accumulation of
Three kingdoms culture. Jingzhou is the core of history of the Three Kingdoms period, which
proves the core role it plays in the historical culture of the Three Kingdoms. 72 chapters among
the 120 chapters in the voluminous Romance of the Three Kindoms are about Jingzhou, and more
than ten chapters describe Jingzhou directly and there are also many other stories evolved from
Jingzhou. Classical stories adapted from ―Borrowing Jingzhou, Guarding Jingzhou, Attacking
Jingzhou and Falling Jingzhou‖have always been hot subject matters for traditional operas,
singing and dancing, TV programmes and movies, and commom people also has been taking
delight in talking about them. So there has been a saying that ―If you want to hear stories about the
Three Kingdoms, go to Jingzhou.‖
     It has been a piece of meat scrambled for by the three kingdoms and has also been a
contesting stage for heros, on which many important politicians, militarists and heroes have shown
their political aspiration, thinking, personalities, stratagems and military talents. Their causes,
future and even life were closely related with Jingzhou. Three Kingdoms spirit with national
unification as its main orientation, Three Kingdoms Stratagem with demonstrating national
wisdome as its main aim, and Three Kingdoms Elegance and Talent with embodying national
quality and temperament as its main characteristic make up the basic meanings of Three
Kingdoms culture, which are also where its great charm lies.
     2. We can find relics of the Three Kingdoms period all over Jingzhou, and they are
comparatively centralized. History has make Jingzhou a famous scenic spot where you can be
fully alive to the Three Kingdoms culture. Large numbers of cultural relics from that period has
been left in the two regions and six counties governed by Jingzhou, which forms a unique and
magnificent scenery scene. Jingzhou has been one of the first National Famous Historical &
Cultural Cities approved by State Department. Especially the Ancient City is the site where
Jingzhou Cheng of the Three Kingdoms in the last stage of Han was located. And GuanYu
guarded it for ten years. It can be callled quintessence among the cultural sites and relics that have
been found from the Three Kingdoms period. As it has been recorded in Hou Han Shu. Di Li Zhi,
the ancient wall in Jingzhou can date back to the period of Zhou Li Emperor more than 2800
years ago. Proved by the latest evidences found in 1999, it is the Jingzhou ancient wall that has
existed for the longest time , has gone through the most dynasties and has been the only ancient
wall changed from the earth wal in China. Among the layers piled up, walls of the Jingzhou city
of Shu and Wu are existing, which is one of the most important discoveries in recent years and

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makes the relative stories more authentic. Cultural relics have been spread inside and outside the
ancient city such as Guan Yu Temple, Three Kingdoms Garden, Desheng Jie , Xi Ma Chi , Lu Hua
Dang where Zhou Yu was said to be given offense for three times, Dian Jiang Tai, Pao Ma Shan,
Ma Pao Quan, Luo Mao Zhong, One Load of Earth of Zhang Fei, Site for Guan Yu to Have the
Poison Scraped off his Bone and Sping-Autumn Pavilion and so on.

      3. Advantageous Location With Jingzhou, a famous tourist city, as its spreading center, the
Three Kingdoms culture can be spread effectively. Located in the hinterland of Jiang Han Plain ,
Jingzhou is a natural tourist distributing center with Wuhan, Huanggang, and Red Cliff to the east,
Yueyang, Zhang Jiajie and FengHuang of Xiang Xi to the south, three gorges of Chang Jiang
River, Sheng Nongjia and Chongqing to the west and Xiangyang Gu Long Zhong and Wu Dang
Shan to the north. And the speedways run through Jingzhou, so it is very convenient to come and
go.

        Seeing from the location of Three Kingdom cultural products, you can find that east to
Jingzhou, there are Wulin Stockaded Village, Ancient Battlefield of Red Cliff and Ancient
Huarong Path; south to Jingzhou, there are Liulangpu of Xiulin, Wangfu terrance for Lady Sun,
Zhaoying Bridge, former base camp when Liu Bei defended Gong’an and Lady Sun City; west to
Jingzhou, there are Dangyang City, Guangling, Changbanpo and Ancient Battlefield of Xiaoting;
north to Jingzhou, there are Ancient Longzhong and Shuijing Village. This again proves the
important role Jingzhou played in history. Possessing of superior geographic location, convenient
transportation and abundant Three kingdom cultural resources, Jingzhou has in deed become a
very important tourist destination on the Three Kingdom tourist route.

        4. Due to its marvelous charm , Three Kingdom culture has attracted numerous tourists to
Jingzhou for the ancient city. So the cultural resources on the Three Kingdoms have great market
potential. In fact, Three Kingdoms culture is a main brand employed to attract tourists and
promote the local tourism. And it is just because Three Kingdoms culture that Jingzhou becomes
highly acknowledged and well-known. Tourists come from abroad or within the country are
mostly moved by all sorts of descriptions in Romance of Three Kingdoms. Seeing from the
oversea market, there are some countries showing special preference to Three Kingdoms culture ,
namely Japan, Korea and some countries in Southeast Asia. Most people of Japan and Korea are
unconsciously influenced by the Three Kingdoms and they can even make a detailed explanation
of the tales and characters. Therefore, they display great interest in ancient city of Jingzhou and
Three Kingdoms relics and they are important tourist sources for Jingzhou. Guan Yu, a whole


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show in the Three Kingdoms, who guarded Jingzhou for ten years of time, is the embodiment of
the virtues of faith, justice and valor and he is honored as Military Sage over the years. Thus,
Guangong culture came in being and creates great impact on people’s spirit. He is considered the
God of Wealth who brings wealth and protection by businessmen. Tourists from Hongkong,
Macao and Taiwan esteem Guangong more than others. It has almost become a must subject for
the tourists coming from these areas to make sacrifice to Guangong for blessing, wealth and safety.
In addition, there are also large quantities of tourists from the developed coastal regions such as
Guangdong Province, Zhejiang Province, Fujian Province, etc. and from European countries.

       5.Three Kingdoms tourist resources have much originality in the respect of human culture,
while the natural Three Gorges tourist resources, as a kind of tourism product, in certain degree
require to be complemented in culture to enrich and extend its life cycle. So they can benefit each
other a lot from cooperation. In fact, we can integrate the tourist resources in Hubei and input new
connotation to tourist products to consummate the golden traveling route, namely graceful Three
Gorges and ancient Three Kingdoms, which will eventually make the natural resources and human
resources more confluent. This idea is quite feasible. On one hand, Jingzhou is only 80 kilometers
away from the world top scenic spot the Three Gorges and the dam. The distance can be covered
within one hour by vehicle. Thus, it is pactical for us to share the tourist resources and visitor
resources to establish a cooperation area. As a product obtaining the highest economic value from
tourism in China, its annual average reception amounts to 7000,000 visitors, and 4000,000 of them
are received in Hubei section. Therefore, there is foundation laid by a market that enjoys great
economic value from tourism for the exploitation of the Three Kingdoms theme park project. On
the other hand, the highway net from Jingzhou to all the neighboring cities is generally established.
We can establish regional fellowship with Wuhan, Xiangfan, Shiyan, Jingmen, Yueyang, Changde,
Zhangjiajie, and Changsha, etc to make all of us can benefit.




     Market Analysis on Tourist Sources

     In accordance with the statistical data and relevant data about actual tourist source market of
Jingzhou, the Three Kingdoms culture theme park project has favorable market prospect and large
potential. Following are the detailed analysis:
     1. The annual average tourist reception amounts to more than four million in the whole city.
The annual average gross revenue from tourism(all the six elements includes food, residence,
transportation, travel, shopping and amusement)amounts to over 1.5 billion RMB.

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     2. Administration area of Jingzhou consists of 2 districts and 6 counties. Its population is
6,340,000. In central urban area, there are 650,000 permanent residents, and the capacity of the
city is around 750,000 plus floating population. Since there is no concentration site for the citizens
to amuse themselves in central urban areas, they mostly choose to go on a journey outside the city.
     3. Tourist source market subdivision: After the Three Kingdoms theme park is completed,
visitors can be mainly devided into five groups.
     The first group are visitors from urban area of Jingzhou: If 5% of the 750,000 residents visit
here annually, then the tourists may amount to 40,000.
     The second group cover the visitors from 6 counties under administration of Jingzhou, which
have a population of 5,700,000.If 3% of the population come here annually, the tourists from these
areas may amount to 170,000.
     The third group are transit passengers. Hubei section of the Three Gorges tourism line
receives about 4,000,000 visitors every year, and 10% of the tourist groups will visit Jingzhou,
which brings nearly 400,000 visitors. And there are other transit tourist groups , which may
amount to about 50 thousand.
     The forth group covers visitors from the overseas countries or regions. They are mainly Japan,
Korea, Southeast Asia and part of the Euramerica. The maximum of tourists to Jingzhou has ever
been 130,000 in a year.
     The fifth group are visitors attracted by the Three Kingdoms cultural city, after a tourist
atmosphere has been created by it. According to understated estimate, it can add around 100,000
visitors to current tourist quantity.
     It is estimated that the annual reception amount of the Three Kingdoms culture city will be
not less than 900,000.


     Benefit Analysis
    Total investment is 4.5 billion RMB -5 billion RMB. The annual average reception amounts to
850,000 visitors and the revenue from coupon ticker is 300 RMB per person. Therefore, the
annual revenue is 255 million RMB. Allow for other revenue and expenses of taxation, the
investment can be recovered in around 10 years. Accounting the revenues from the real estate
exploitation in the construction of the new city, the return period will be less.
    V. Functional Zones and Description
        ——Acting Area of the Real Exteriors with East Gate as Its Center
     1. Overall Development of the East Gate Scenic Spot

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        With the east part of the wall of the ancient city as the center, reconstruct and decorate inner
and outer loops of the ancient city, Stele garden, clearance area of former Jingzhou prison,
Jiulonghyuan dragon boat playing area (city moat) and Fenhuang Square to build new East Gate
sightseeing area and add some vivid projects in real exteriors, amusement projects and participative
projects to extend the staying period of tourists. Make the East Gate scenic spot the largest tourist
distributing center in the city, which integrates sightseeing, leisuring, amusement, acting, game,
and service etc.
          (1)Design acting of the Three Kingdoms in real exteriors. Simulate battle field acting of
the characters in the Three Kingdoms, horsemanship acting, and warrior drill. Meanwhile, arrange
special performance of Qigong. These will be available to the visitors all the year round.
          (2)Design hydro-ballute, aeroboat and floatplane project in Jiulongyuan to help the
visitors view East Gate scenic spot and appreciate the charm of the ancient city in the air. Hold
self-organizaed dragon boat game all the year round.
        (3)Put up various tourist boats on the city moat. Still, build several archaized official boats
where singing and dancing performance, instrument music performance and teahouse will be
arranged. Establish several minor sceneries decorated with some lighting for the evening tour on a
boat. And build several warships to reproduce the war named Borrowing Arrows by the Thatched
Ships, and the visitors also can participate in to personally experience it.
        (4)Decorate and renew the existing carriages in the inner and outer loops.              Put up
sightseeing on horseback and in a palankeen. Hostlers, wagoners and chair men dress themselves
in ancient costumes.
        2. Reconstructing and Decorating the City Gate Towers of the Ancient City
        In accordance with the original looks of the Ancient City, reconstruct the towers of the Xiao
East Gate (namely Gong’an Gate), Xiao North Gate, West Gate and South Gate and the Urn City.
        Repair and decorate the existing North gate tower dating from Qing Dynasty and the Urn
City.
            3. Pedestrian Street

        (1) Resources
        The existing Zhang Juzheng Pedestrian Street will be reconstructed into a pedestrian street
for cultural sightseeing. Zhang Juzheng, a well-known prime minister and statesman in Ming
Dynasty and one of the six excellent reformers in ancient China, carried out a series of reforms on
financial and economical matters when he was in office , including military construction, water



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conservancy, financial management , foodsuff storage, how to promote and unmake officials and
so on.. Jingzhou is Jing Juzheng’s ancestral home and Zhang Juaheng Street , where his fomer
residence is located, is joined with Bing Yang Lou(the East Gate of the Ancient City). So it has
bocome a inevitable course for people to visit Bing Yanglou. So far the architectures along the
300-meters-long east end of the street have been reconstructed in the style of Ming and Qing
Dynasty, but still need to be perfected further. And all the architectures on both sides of the 1000
–meters-long Bell-Drum Street to its west side have all been pulled down and cleared out.
     (2) Project Orientation
     Zhang Juzheng cultural sightseeing Pedestrian Street is to be constructed into a cultural street,
combining art entertainment, tourism commerce and sightseeing in an ancient city into one and
giving prominence to tourism commerce and traditional atmosphere. This Pedestrian Street starts
from East Gate tower and goes through the Stele Garden, fomer residence of Zhang Juzheng and
so on, forming a traveling line, which surely will intensify the cultural atmosphere of the whole
block and bring along the economy development there.
     (3) Basic plan and brief description
     Functional Arrangement:Functional Arrangement:Combine the point, line and surface.
East side of the Huangjintan Road reflects cultural atmosphere, in which arrange four cultural
scenic spots and one calligraphy and painting market; west side of the Huangjin Road reflects the
commercial atmosphere, in which arrange two cultural industry markets. Interlude the whole street
with a line to form the functional arrangement of four points, one line and three surfaces.
Following are specific contents:


      Four Cultural Sight Spots:
     East Gate Tower : It is located in the highest position of the street where visitors can have a
panoramic view over the whole streetscape.


     Stele garden: It is a sight spot of great importance that tourists will centainly visit during the
ancient city jouney.


     Former Residence of Zhang Juzheng: The site adjoins Sanjian plot of Hubei in East Gate.
New build former residence of Zhang Juzheng in folk house style of Ming and Qing Dynasties,
covering an area of around 6,000 ㎡ where set up the exhibition hall of Zhang Juzheng’s cultural
data. Meanwhile, sell calligraphy and paintings as well as artwares in the residence.

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     Dijian Mansion There is a masterwork by Zhang Juzheng named Dijiantu which describes
the details about how the monarches of all ages deal with government affairs and about their daily
life, aiming at using the past to satirize the present and providing reference for the monarches of
later ages. Because the whole book combines words with pictures , we also plans to adopt
exhibition, paitings, sculptures and some high-techs to demonstrate its features. The five-storeyed
mansion, with double eave roof , twelve angles and high towers on all sides has been the center
of the zone.
     Commercial Zone
     Market of Flowers, Birds and Miniascapes: A commercial leisuring market of about 10
thousand squarekilometers will be built at the site where the instruction team of the branch army
was located 150 meters away from the Huang Jingtang Road, which will mainly deal in flowers,
birds, and miniascapes and so on. And tea houses and some Snack shops will be added to it to
satisfy citizens’ and visitors’ needs for shopping and entertainment. This market can also bring
along the relative markets of the neighbouring counties and cities.
     Market of Painting and Calligraphy Works:At the site of the old Foodsuff Storing and
Distributing Company, a painting and calligraphy works market of about 3000 squarekilometers
will be constructed to satisfy citizens’ and visitors’ needs for cultural leisuring . And a tea house
and some Snack shops will be added to embody the features of the ancient city.
     Cultural Market:At the site of the old post office , a peaceful and pleasant cultual market of
3000 squarekilometers will be arranged, dealing in musical instruments, books and paintings and
so on. All the cultual industries of the ancient city may gather here and demonstrate the Ancient
City’s cultural connotations.
     Traditional Pedestrian Street “one Line”
     Reconstruct all the architectures along the Zhang Juzheng Street into new ones, which can
feflect the city’s traditional looks and features. After repairing the road and underground facilities,
blue stone slates shall be spread on the road surface to keep its original looks and features.
Decorations shall be added to the right places along the street to demonstrate the original features
of Jingzhou Ancient City. For example, a decorated archway shall be set up at the point 50 meters
away from where the Qu Yuan Road meets Zhang Juzheng Street as a sign indicating that the
pedestrian street strarts from there.


—— Sacrificial Zone for Guan Gong Culture with South Gate Its Center

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    1. Existing Resources

       Located outside the old South Gate of the Ancient City, Guan Yu Temple is the official
mansion of Guan Yu. As was recorded in Jingzhou Fu Zhi, it had been a large-scale and
spectacular construction at that time with main gate, decorated archway, second gate, Ceremonial
gate, main hall, San Yi Hall, Imperial Study Building, Chong Sheng Ci, corridor in the east and
west respectively, San Yuan Pavilion, Zhenwu Pavilion, Bell tower, drum-tower and so on. It
covers about 50 mou and there has been about four hundred fertile land and shoaly land added to
it . Guan Yu temple first constructed in the 29th year of Hong Wu Ming Dynasty and was
reconstructed in 53 th year of Qian Long Qing Dynasty. Because of disrepair for many years, the
ancient palaces and buildings were almost in ruins, except for two remaining ancient maidenhair
trees. The existing Guan Yu Temple, covering about 4900 squarekilometers, was constructed at the
original site in 1987, consisting of such archaizing architectures as Ceremonial gate, main hall,
San Yi Hal, Display Building and so on.

       Paying homage to Guan Yu seems like a kind of blindly worship. In fact, it contains much
humanism. Guan Gong is the embodiment of Chinese Traditional ethics and morals. So
reconstructing Guan Yu Temple is not only needed for developing the tourism of Jingzhou but also
for carrying forward excellent Chinese historical culture.

       2. Project Orientation

       Jing Zhou Guan Yu Temple, a orthodox school among all the Guan Yu Temples all over the
country , will be reconstructed into a holy land of Guan Gong in the heart of the pilgrims both at
home and abroad, and a cultural tourism zone , combining making a pilgrimage, sightseeing and
commerce into one.

       3. Content

       (1)To construct the largest statue of Guan Yu in the world and the largest center for the
pilgrims of Guan Yu.

       (2) expand the original Guan Yu Temple and construct a commemorative square which
          To
covers 3000 ㎡ and can hold about 5000 people at one time between the South Gate and the Guan
Yu Temple.

       (3)To reconstruct the decorated archway, second gate, drum-tower,        main hall, San Yi
Hall, Chong Sheng Ci, Zhenwu Pavilion, San Yuan Pavilionand so on in accordance with the



                                               180
general layout of the original Guan Yu Temple. And reconstruct the residential areas on its east
side and north side into commercial food streets.




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     ——Exhibitiing Zone for Cultural Relics with West Gate Its Center

     1. Jingzhou Three Kingdoms Museum
     (1)Project Requirements
     Guilded by the ideology that construct a high-level museum by             starting from a high
jumping-off point and making full use of high-techs and consulting the present fashion trend of
the Exhibition Industry at home and abroad, design and construction shall always keep to the point
of Three Kingdoms history and culture.
     (2) Project Content
      A. Main Exhibition Hall for Cultural Relics Collect all the cultural relics dating from the
Three Kingdoms Period from different parts of Jingzhou into this hall and exhibit them in new
ways after classifying them by time, special topics and choice items.
       B. History Reproduction Hall         Many historical events and classical warfares can be
reproduced by the high-tech of ― four dimensional situation‖, which has already been
well-estalished and has been adopted by Shanghai Museum, and Window of the World Shenzhen ,
which are the first two users. This high-tech mainly consists of two parts: the
― hardwares‖including several scenes to be created in the hall and ―softwares‖, video of the
trueman performances shot in accordance with the scripts of chronicle play. And they will be
integrated by the technique of three dimensional phantom so that you may feel that true men are
performing in real scenes.
       C. Warfare Performing Field Such scenes as taking the city , acrobatic fighting will be
performed and visitors take part in it.
       D.Audio-visual Hall for Reviewing the Classical Works             This hall mainly has two
functions. First, a TV play series Three Kingdoms will be plyed all the year round or we can have
it adapted and cut into films of about two hours and show them at turns all the year around.     And
the other function is that it can be designed into a leisuring form to serve the visitors respectively
or collectively while they are having a rest.
       (3) Location of the Three Kingdoms Museum
     The Three Kingdoms Museum , to be located inside the Ancient City will be unitied with the
Kai Yuan Guan, which is to the west of the Jingzhou Museum by reconstructing the whole Kai
Yuan Guan. The completed architecture is in the style of Han Dynasty, primitively simple ,
bold ,unconstrained, and vigorous. The whole construction will occupy 66 thousand
squarekilometers (100 Mou)and the building area will be 10 thousand squarekilometers(including



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the compound section)
     2. Expanding and Reconstructing Jingzhou Museum
       Jingzhou museum is a local all-around museum which has integrated the functions of
displaying and exhibiting, protecting cultural relics, engaging in fieldwork of archaeological
studies , collecting cultural relics and doing scientific research. It has the credit of No. I among the
national prefecture-level Ten Best Museums. At present, more than 130 thousand pieces of
cultural relics have been collected in it , among which you can find the most fascinating silk
cloth made during the Warring States Period,the most numerous and exquisite lacquerware dating
from the Warring States Period, Qing Dynasty and Han Dynasty,and a mummy dating from Xi
Han Dynasty, which can be on a par with the mummy found in the Han tomb of Ma Wang Dui.
Jingzhou Museum has become a must place for traveling and sightseeing in Jingzhou these years,
but its present conditions and facilities may inhibit its further development. Its storeroom is about
3200 squarekilometers and is only large enough for about 40 thousand pieces of cultural relics,
and the rest have to be stored in the temporary rooms. And the existing exhibiting hall is smaller
than 5 thousand square kilometers, which is only large enough for about 2 thousand pieces of
cultual relics to be displayed. So large numbers of exquisite ones are not available for viewing and
admiring.
       (1) construct Jingzhou Cultural Heritage Protection Center, which integrates protection,
          To
replication and exhibition. (budget: 12 thousand RMB, which is mainly given by the central
government)
       (2)To construct a special exhibition hall for the ancient silk cloth made during the
Warring States Period(Budget: three thousand RMB)
       (3)To construct a special exhibition hall for lacquerware dating from the Warring States
Period, Qing Dynasty and Han Dynasty(Budget: three thousand RMB)
       (4)To expand the exhibiting and leisuring center for Chu music and Chu dancing



——Exhibitiing Zone On Three Kingdoms Folk Customs with North Gate Its
Center

     1. Guan Zhai
     In the center of the tourism zone outside the Big North Gate of the ancient city is to stand a
statue of Guan Yu, to the south of which is the wide water area of the moat, where the Navy Camp
of Shu Han and a wharf for the navy are to be constructed. On the water visitors will also find


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some warships. Gong Gong’s camp and arena for the Hu Han soldiers are to be constructed
respectively on the south side and north side of the statue. And a Ding (an ancient cooking vessel)
Garden is to be located directly in front of the statue. Three feet of the Ding stand for Wei, Shu,
and Wu the three close rivals. The Navy Camp of Wei is to be located on the water of the moat to
the east of the Ding Garden. Interlink warships will be collocated here to perfoem the The Battle
of Red Cliff. In front of the camp visitors can also find Tiger Head Prison Gate, Jun Qian Dian
Jiang Tai (a platform for calling the muster roll of officers and assigning them tasks.)and Military
Performing Field, where performances will be given by professional performers according to the
fixed time.
     2. Facilities for Leisuring
     (1) Hotels and Public Houses A Five-star bungalow hotel and three three-star low storied
hotels will be built.
     (2) A large shopping zone, with building area more than 10 thousand square kilometres, is to
be constructed for selling souvenirs and special local products.
     (3)There will be 5 to 8 leisuring places to provide different kinds of services.
                Tourism Zone of Three Kingdoms Stories by the City Wall
     Surrounded By the Moat

         Water sightseeing line and scenic spots around the ancient city will be formed by dredging
the moat and building the inside and outside banks.
     1. After being treated, water in the moat is to meet the national third-category water qulity
standard and a route for the     yachts and boats will be shaped.
     2. Specialized wharfs are to be constructed.
     3. All kinds of yachts or boats are to be equipped.
     4. In accordance with different requirements for different sectors, land 50 – 100 meters away
from the outer edge of the moat is to be requisitioned for constructing scenery belt and scenic
spots.
     5. At suitable spots of the south, north and west banks, 3 to 4 scenic gardens about classical
Three Kingdoms stories will be constructed to kindling visitors’ emotion during their traveling.
    VI. Investment and Cooperation Mode
This project is to be planned as a whole and developed at a time or developed in multiple steps.
Administrative offices of CPC and the government and part of the residents is to be removed from
the old city zone and into the new city zone, which will result in the population within the old city
zone from the current 110 thousand to about 60 thousand. And the remaining residents will be

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mainly engaged on tourism and the relative service business.
     The total investment is expected to be about 4.5 to 5 billion RMB, 3 billion RMB of which is
to be used to resettle the old city zone and construct the new one and 1.5 to 2 billion RMB is to be
spent in constructing the scenic spots and facilities for leisuring and entertaining.
     Joint stock system or sole investment may be used for cooperation, which means that we may
be part of the project by pooling of trademark and land or you, investor, can buy the management
right and the municipal government will provide land and preferential polices in the respect of
resettlement and construction of the new city zone and scenic spots.
     VII. Contact information
           Contact:Bi Yingcai
           Tel:0716-8190300
      E-mail:jztour@163.com




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Construction Material
 Original Glass Piece Production and Glass Deep-Processing Project
     I. Background information:
     Wuhan Changli Glass Co., Ltd. is the only manufacturer of float glass in Wuhan, which
owns one 350 ton-level and 650 ton-level production line for float glass individually and several
glass deep-processing production lines for hollow glass, doubling glass, toughened glass and its
nanhead etc. The annual production of quality float glass is 7 million weighing tanks and the
deep-processing capacity reaches to 1.5 million m2. The total plant side occupies an area of 400mu
and the assets are 523 million Yuan.
     II.Development plan of company:
     According to national ―Eleventh Five-Year Plan‖, it is planned to invest 1.28 billion Yuan in
five years to construct Hannan Industry Park of Changli Glass with its area of 600mu and 3~4
production lines for high grade float glass and supplementary glass deep-processing. The project is
divided into three phases and phase 1 of the project has commenced in later half of year 2006, in
which 350 million Yuan is invested to construct one production line for high grade float glass with
a capacity of 700~750 ton. In five years, the company will raise the productivity and grade of
original glass piece gradually, develop supplementary glass deep-processing project to satisfy
increasing market demand in Wuhan for glass used in medium and high grade buildings, glass for
deep-processing and 1.5 million sets of motor glass annually.
     III.Cooperation mode:
     Seeking for strategic joint investment and cooperative partners, introducing techniques and
capital in the form of fund + strategic cooperator (glass production enterprise with international
brands) etc. and exploiting international and domestic markets.
     IV.Contact information:
     Company address: Zhangjiawan 21, Baishazhou, Wuchang of Wuhan
     Postal code: 430065
     Tel.: 086-27-88114558
     Fax: 086-27-88114558
     Contact: Hu Jie       E-mail:wuhanglass@163.com




                                               186
                  Ardealite Comprehensive Utilization Project

     I. Project description
     1.300 thousand tons of plastering gypsum and 20 million square meters of thistle board will
be produced annually.
     2.The main raw material of the project is the phosphorite slag discharged by several chemical
enterprises, which can be processed and produced into thistle board and gypsum building blocks
that are widely used in decorative architecture industry. Thistle board has various excellent
performances and can be used widely for interior walls of all kinds of buildings, interior wallboard
of compound walls and suspended ceiling materials etc. Gypsum building block is a new kind of
wall material in place of clay brick and has favorable performances such as small volume weight,
strong fire resistance, good performance of heat preservation and insulation, good workability and
easy construction etc.
     3.The construction period will be 10 months.
     II.Market analysis
     It is a kind of advanced technology in the new construction material industry and has
spacious prospect.
     III.Construction conditions
     1.The waterland traffic conditions of Yidu are excellent, with Changjiang waterway and
Jiaoliu Railway reaching rivers and seas.
     2.Raw materials are in abundance. Now there are 50 million tons of ardealite resources and
this number will increase by 2 million annually. They can be used for free at the beginning.
     3.Power cost is supplied at market price.
     4.Labor cost is arranged according to market demand.
     5.The pollution-free project and environmental protection encouraged project.
     IV.Budge estimate of investment
     The fixed assets investment will be about 110 million Yuan, including: land transfer by 7
million Yuan, infrastructure project by 20 million Yuan and equipments and installment by 75
million Yuan.
     V. Economic and social benefit analysis
     1.The annual sales revenue will be about 380 million Yuan.
     2.The profit will be about 76 million Yuan.
     3.The country will reduce and remit value-added tax and income tax and other part will be

                                                 187
about 1 million Yuan.
    4.Breakeven point: reaching about 37% of production; the financial internal rate of return
will be about 27%; and the investment recovery period will be 2.5 years
    5.250 persons will be employed.
    VI. Project owner
    In the process of inviting investment.
    VII. Cooperation mode
    Companies that have strength and capital will be welcomed and invest in the form of
    sole investment.
    VIII. Contact information
       Investment Promotion Bureau of Yichang City
       Contact: Yang Munan      Zhao Yong
       Tel.:0717-6256751       13177090861
       Fax:0717-6256751
       Website: http://www.yichanginvest.gov.cn
       E-mail:yczyonggg@163.com
       Address: Hongxing Road 13, Yichang City
       Postal code:443400




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                                      Sanitary Ware Project
     I. Background information

    Yidu City of Hubei Province locates in the southwest of Hubei Province, which is the portal
of entering southwest of China and three gorges reservoir area from the east and the south of
China. This area possesses abundant non-metal ores that can be used for producing sanitary
ceramics and obvious traffic advantages of waterway, landway, railway and airline etc., all of
which are unique conditions to construct a sanitary ceramics base. At present, its output is already
over 5 million pieces and it is the biggest production base of sanitary ware in Hubei Province. And
it also owns a series of domestic advanced techniques such as low temperature rapid firing craft,
vitreous sanitary ware firing craft, shuttle kiln firing craft and joint vertical casting molding craft
etc. China is the cradleland of ceramics and has splendid history at one time. In view of
development history and status quo of Chinese sanitary ceramics, the main problems are referred
as ―Three-Large and Five-Low‖, namely large output, large energy consumption and large staff
team; and low productivity, low intensive degree, low technology content, low market strain
capacity and low economic benefit. The new industrial policies formulated by the country are:
weeding out coal-burning tunnel kiln with large pollution and high energy consumption,
controlling gross amount of products and improving engineering level, making the proportion of
medium and high grade products increase from current 20%-30% to 70%-80% and raising quality
index of products by a large margin. Now Yidu city party committee and the government of Hubei
Province plans to construct ceramic industry party in the southern new zone of the city to cultivate
and strengthen the scale of ceramic industry, adjust product structure and improve product quality
and the ability to provide the auxiliary items. The park enjoys favorable policies and perfect
infrastructure. The owners and enterprises who wish to invest and expand in ceramic industry are
welcomed to join in Yidu Ceramic Industry Park and can develop and strengthen in virtue of the
platform of the industry park. The transportation radius of raw materials in ceramic industry park
is not more than 50km, and only a thimbleful of raw materials are transported into the city through
Changjiang golden waterway and trunk railway of Zhicheng Railway Station. Utilization of water,
gas and electricity are in abundance and perfect conditions. Zimujie clay, produced locally, is
transported into the factory in bulk; the same to raw meal; feldspar, produced in Yichang City, is
transported into the factory in bulk; kaoline, produced locally, is transported into the factory in
bulk; the same to black mud and silica sand; feldspar powder, produced in Hunan Province, is
transported into the factory in bulk; zinc oxide, produced in Guangxi Province, is transported into


                                                 189
the factory in bulk; quartz powder, produced in Dangyang City, is transported into the factory in
bulk; talcum powder, produced in Zhongxiang City, is transported into the factory in bulk;
zirconium silicate power, produced in Tangshan City, is transported into the factory in bulk; calcite
power, produced locally, is transported into the factory in bulk; kaoline, produced in Jiangsu
Province, is transported into the factory in bulk; toner, produced in Shandong Province; plaster of
paris for mould, produced in Jingmen City, is transported into in bags; natural gas is supplied Yidu
Hongrui Natural Gas Company; steam coal is supplied by purchase of local fuel company; and as
to power supply, the installed capacity of the whole city is 22.367 million kilowatts, in addition to
groups of small hydropower stations with an installed capacity of 60 thousand kilowatts that have
been established through cascade development of Yuyang River. They have formed strong
electricity energy foundation and no electricity restricting or power failure etc. can exist. The
electricity price of large electric network over 300 thousand kilowatts is 0.483 Yuan/kwh while
that of small electric network is 0.498 Yuan/kwh.

    II.Market analysis

    The annual demand is above 10 million pieces only in Mid-South area with Hubei Province
as the center while the current productivity is only 5 million pieces per year. With the
improvement of people’s living level, the market demand will become bigger. At present, the
output of sanitary ware in China is always about 60 million pieces. In view of gross amount, the
market seems to have inclined to saturation, but those with good shape and high quality are few.
Medium and high grade products only account for 20%-30%, of which high grade products are
less than 10%. And many high grade products depend on import completely. Seen from plans of
the country for 2010 year, in the following period of time, the annual growth rate of our GDP will
keep above 8%, investment scale will rise continually and the scale of household construction will
be beyond example. Especially for the propulsion of new countryside policies, the construction of
villages and towns will become new hotspots of economic development. According to data from
Construction Department, Chinese realty business will increase by 18% annually and 335 million
square meters of city residence will be built every year. If estimating that a toilet (equipped with 3
pieces of sanitary ware) is set for every 70 square meters in houses, 14.5 million pieces of sanitary
ware will be needed annually. This has not included reconstruction and replacement of existing
residence toilets and amount of sanitary ware needed in countryside residence. With economic
development and growth in people's living level, relatively comfortable houses have been
widespread and the requirements for designs and varieties, use function, quality and grade are


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becoming higher and higher. So the main market of low grade products is maintained in
countryside and economically underdeveloped areas, while medium and high grade products have
been widely accepted and used in cities. According to forecasts of relevant departments, after 2004,
demand for medium and high grade sanitary ware in market will account for above 60%, and this
number will increase year by year. After the entry of China into WTO, the unique development is
even brought to Chinese sanitary ware industry. Because sanitary ware industry belongs to labor
intensive and resource intensive enterprises and developed countries mostly import from China,
many countries have built sanitary ware factory in China. Presently, export impetus of Chinese
sanitary ware products is strong. The volume of export in 2003 year is over 15 million pieces, and
it increases by 5 million every year. Therefore, the international market is also wide and
development potential is extremely huge.

     III.Project description

     Take advantage of advantages such as local pottery clay, energy and traffic etc. in Yidu to
construct the project in which 0.8~3 million pieces of medium and high grade sanitary ware will
be produced annually.

     IV.Project investment:The total investment will be about 30 million to 120 million Yuan
RMB and the investor decides it for himself.

     V. Economic benefit:After the completion of the project, 0.8~3 million pieces of medium
and high grade sanitary ware can be produced annually. The sales revenue achieved annually will
be 100 to 500 million; the annual profit tax will be about 10 to 50 million Yuan; the investment
recovery period will be 3.7 years; and the financial state of the project will be relatively good.

     VI. Contact information
        Investment Promotion Bureau of Yichang City
        Contact: Yang Munan       Zhao Yong
        Tel.:0717-6256751        13177090861
        Fax:0717-6256751
        Website: http://www.yichanginvest.gov.cn
        E-mail:yczyonggg@163.com
        Address:Hongxing Road 13, Yichang City
        Postal code:443400




                                                 191
            High and Medium Grade Wall and Floor Brick Project

   I. Project description
   1. 15 million square meters of high and medium grade wall and floor bricks will be produced
annually;
   2. Newly-built and national encouraged production project;
   3. The construction period will be 18 months.
   II.Market analysis
   The market prospect is promising. The annual demand of Hubei Province is above 20000m2
only. With the improvement of people’s living standard, market demand will become bigger.
   III.Construction conditions
   1.Convenient traffic
   Landway: Within its boundary, there are Yihuang Highway, Hurong Highway, Jiangnan
Highway and No. 318 National Highway connecting to the national road network.
   Railway: Within its boundary, there is Jiaoliu Railway passing by Zhicheng Bridge to connect
to national railways.
   Waterway: There are 46 km haul distance on Changjiang golden waterway within its boundary;
Zhicheng Port is connected to Jiaoliu Railway, which becomes one of the big four waterway &
railway combined transportation port on Changjiang River.
   Airline: Yichang Three Gorge International Airport is 25 km away from Yidu, which is
connected to the national airline network.
   2.Abundant resource
   Yidu possesses kaoline resource (about 30 million tons) , which is of good quality. Coal
measure strata of Wangjiafan Village and Songtuping Town in the south of our city contain
abundant kaoline ore bed. Kaoline has the features of high fire resistance, strong plasticity, good
insulatibity and chemical stability etc., and is the ideal raw material for processing high and
medium grade wall and floor bricks.
   3.Low labor cost and abundant supply of coal and gas.
   4.Labor cost is low; and wage per person is 600-700 Yuan / month only.
   IV.Budget estimate of investment
   Investment in fixed assets is 180 million Yuan.
   V. Economic benefit assessment
   1.The annual sales revenue will be about 300 million Yuan;

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   2.the annual profit will be about 60 million Yuan;
   3.the investment recovery period will be about 3 years.
   VI. Cooperation mode
   Companies that have strength and capital will be welcomed and invest in the form of sole
investment.
   VII. Contact information
   Investment Promotion Bureau of Yichang City
   Contact: Yang Munan      Zhao Yong
   Tel.:0717-6256751       13177090861
   Fax:0717-6256751
   Website: http://www.yichanginvest.gov.cn
   E-mail:yczyonggg@163.com
   Address:Hongxing Road 13, Yichang
   Postal code:443400




                                               193
  The Reconstruction and Expansion Project of Production Line for
                Aluminum Alloy Section Material

        I. Background information
        The plant side of this project occupies an area of 3,000 square meters and its fixed assets
are 35 million Yuan. The company has excellent equipments, strong technology force and
scientific management methods. It has formed a capacity of producing 4,000 tons of aluminum
alloy section material, tubular product and plate material annually and also has formed market
sales network with considerable scale. The products have passed the ISO9001 quality system
certificate.
        II.Market analysis
        This product can be widely used in industries such as construction, decoration, household
appliance, automobile, machinery and furniture etc. With continual improvement of Chinese
science and technology level and people’s living level, utilization of aluminum section material
becomes increasingly wide. And China has implemented production license system of aluminum
section material, which is even more favorable to sales of quality aluminum section material of the
company. At present, products of the company are sold far to over 10 provinces and cities and
exported to Vietnam and Southeast Asia. The company has set up direct and proxy sale points. The
situation of market sale is promising.
        III.Project scale and content
        By introducing advanced equipments and capital, it will form a capacity of producing
7,000 tons of aluminum section material annually.
        IV.Total investment and the composition
        The total investment is 16 million USD, and it is planned to seek foreign capital to
cooperate with.
        V. Benefit prediction
        The sales revenue will be 30 million USD per year. And the investment recovery period
will be 4 years.
        VI. Cooperation mode
        Joint investment or cooperative venture. We will retain land, factory buildings, auxiliary
facility such as electricity and water supply etc., intangible asset assessment price such as sale
network and business reputation etc. as investment. Foreign party will invest capital or part of
major equipments (aluminum section material extruder) at a reasonable price.

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   VII. Project progress
   The project has been established. And the feasibility report has been completed.
   VIII. Contact information
Contact organization: Commerce Bureau (Investment Promotion Bureau) of Xiaogan City
Contact:Yan Dashuang, Deng Lin
Te.l: (0712)2832556
Fax: (0712)2822944
E-mail: xgshangwu@163.com
Website: http://www.xgswj.com; http://www.xgswj.cn
Postal address: Chengzhan Road 36, Xiaogan City, Hubei Province
Postal code: 432000




                                          195
                           Cement Production Line Project

     I. Project owner
   Hefeng Changhong Cement Co., Ltd.
     II.Background information
     With the increase of infrastructure and major projects in Hefeng and surrounding areas, the
conflict between supply and demand for quality high strength level cement is outstanding. The
annual demand in Hefeng reaches to 600 thousand tons only. Now only 460 thousand tons of
Portland cement can be produced in the county. To accelerate new industrialization development
of Hefeng, service major projects of our county well and meet demands in surrounding areas, a
new dry process rolling vault cement production line producing 400 thousand tons of cement
annually will be specially constructed in Taiping Industry Park 15km away from the county seat.
     III.Construction conditions
     1.Water supply: There is a reservoir built 3 km away from the plant side and its perennial
pondage is 200 thousand cubic meters.
     2.Power supply: There is a 35kv electric substation built 500m away from the plant side. The
power supply is reliable and the price is moderate.
     3.Material supply: A. Limestone: the mine is 250m away from the plant side and its reserves
are over 56 million tons. Most of ore is bare and is convenient to exploit. B. Silica raw material:
Silurian strata structure exists in Hefeng County. There are abundant shale resource and bare mine
which are convenient to exploit. C. Iron ore: Iron ore needed in production is 50km away the plant
side. The reserves of the mine are 10 million tons and the Fe203 content in it is above 50%, and its
quality conforms to requirements of production. D. The anthracite resource is abundant in Hefeng
County, its reserves are about 10 million tons and the average haul distance is about 50km.
     IV.Project progress:
     This project started to construct in September, 2003. Now the finished investment is 18.44
million Yuan, including land requisition, designs of feasibility study, geologic prospecting,
assessment of environmental protection, examination and approval of the project, "
Three-accessible and One-leveling ", and survey and order of principal machines and equipments
as well as part of construction project. It is expected to be built up and put in operation in October,
2007.
   V. Project scale and benefit prediction
     The total investment of the project is 93.66 million Yuan.; unit cement investment: 244.8

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Yuan/ton; designed production plan: 1000t/d grog, 1200t/d cement; annual cement production
capacity: 400 thousand tons; average sales revenue: 100.12 million Yuan; profit per year: 22.84
million Yuan; tax per year: 10.21 million Yuan; investment recovery period: 3.79 years (including
one year for construction period) and profit rate of investment: 36.8%.
     VI. Cooperation mode
   Joint investment; investment in spot exchange by foreign party; and participation and
proprietary of equity are both acceptable.
   VII. Contact information
     Contact: Yi Jibin
     Tel.:0718-5285888        Fax:0718-5283314




                                                197
                          Glass Production Line Project

    I. Background information
     High grade quality float glass only accounts for about 10% of gross amount. The
amount of quality float glass made in China falls far short of the domestic market
demand, so the country has to spend a large sum of foreign exchange on exporting it
from abroad. China encourages setting up project of high grade quality float glass.
Xianning City owns abundant and quality mineral resources such as silica, dolomite,
limestone and feldspar etc. The city party committee and city government attach great
importance to the exploitation and utilization of silicon resources. Xianning City has
predominant location and convenient traffic, thus the transportation of products is
convenient. China encourages constructing such projects in Mid -West region.
   II.Market analysis
    The demand for quality float glass in China is 85 -90 million weighing tanks while
domestic productivity of float glass is only 15 million weighing tanks annually at
present, so market opening is large. If production line for quality float glass is
constructed in Xianning City, there is a large sale market in Hubei Province only.
Presently, the demand for quality float glass in Hubei Province is 3 million weighing
tanks, and it is predicted that the demand will be 3.5 million weighing tanks in year 2006
and 4.5 million weighing tanks in year 2010. The products are mainly supplied to
large-scale automobile groups such as Dongfeng-Citroen Automobile Co., Ltd., No.2
Automobile Company etc.
    III.Project scale and content
    A quality float glass production line with a melting capacity of 500 tons per day
will be constructed, which can produce 2.93 million weighing tanks of 2mm -19mm high
grade float glass annually, including: the float glass tha t is below 3mm or above 8mm
accounts for 80% of gross amount, namely 2.35 million weighing tanks altogether.
    IV.Total investment and the composition
     It is planned to invest 97.2 million USD totally (equivalent to 800 million RMB) in
the project, in which investment in fixed assets is 85.46 million USD and current capital
is 11.73 million USD. The imported equipments that are included in investment in fixed
assets are 70.69 million USD.
    V. Benefit analysis

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     After the project is built up and put in operation, the sales revenue achieved annually will
be 82.53 million USD, the benefit will be 23.70 million UDS and the investment recovery period
will be 4.1 years.
     VI. Cooperation mode
     Sole investment
     VII. Project progress
     The fundamental work that has been done include: feasibility analysis, sources of
raw materials and fuel, site selection of the project and preferential policies etc.
     VIII. Contact information
     Contact organization: Investment Promotion Bureau of Xianning City, Hubei Province, China
     Contact: Huang Sisheng
     Tel.:86-715-8319165/8126117
     Fax:86-715-8319165/8126117
     E-mail:xnszsj@163.com




                                              199
                          Cement Production Line Project

     I. Background information
     Chongyang Huian Cement Co., Ltd. is a private enterprise founded from the conversion of
formal state-owned enterprise ---Cement Factory of Changyang County in year 2002. The
enterprise was established initially in year 1976, and its scale of production has reached to 360
thousand tons of quality cement produced annually by continuous technological transformation
and development. It is a medium scale level 2 enterprise of China. The total assets are 120.04
million Yuan. The leading products---―Huian‖ Brand Portland Cement and Slag Portland Cement
have passed national product quality certification and reviewed to be qualified continually by it.
The enterprise had the honor to win ―Famous Trademark of Hubei Province‖ continuously in year
1996, 1999 and 2002; it was evaluated as ―Famous Enterprise of Hubei Province‖ by the
provincial government and ―One Hundred of Enterprises with Tax Credit throughout Hubei
Province‖ by National Tax Bureau of Hubei Province; and it obtained ISO-9002 Quality
Management System Authentication Certificate at a time through the examination and verification
of National Authentication Company in April, 2004.
     II.Resource survey
     1.Abundant mineral resources. The plant side abuts against the exclusive mine for producing
cement. The reserves of limestone are abundant (the reserves are 150 million tons by the prospect
of No. 4 geological battalion), and the average content of limestone Cao is about 53%; noxious
constituent is low; and ores are all first quality. Clay comes from vicinity of the company and is
transported into the factory by motors. The base of steel slag adopted in the project is only 100km
away from the company.
     2.Coal resource is in abundance in the county. The annual output is above 200 thousand tons,
in addition to coal mines of nearby counties and cities. The quality of coal is also good. The
production demand of the project can be met completed.
     3.Water and power supply are in abundance. The water source of the project is supplied by
the water utility of the county directly and electric power is sufficient. And the company installs
special wire and owns a 35kv substation.
     4.Technical conditions. From the establishment of the factory in year 1976, the company has
cultivated and trained a large number of technical elites of production. After conversion, currently
there are 392 employees (including 8 persons with senior title of professional post, 12 persons
with medium title of professional post and over 130 engineers). The management personnel of the

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company are not only management talents but also production experts. No employees are needed
to be sent for training in the project. After equipments are installed, they can be put into operation
immediately.
     III.Total investment and its source
     1.The total investment of the project is 190 million Yuan (including: the expense for
construction is 66.50 million Yuan, the expense for equipments is 95 million Yuan, the expense for
installment is 19 million Yuan and other expense is 9.5 million).
     2.Source of capital:
     (1)Introducing foreign merchants to invest 80 million Yuan for cooperative venture
     (2 Increasing capital and expanding shares in the company, and issuing interior shares by 80
million Yuan
     (3)the company raises 30 million Yuan by itself.
     IV.Benefit assessment
     The project doesn’t only conform to national industry policies but also has relatively
economic benefit and return rate of investment. The profit rate of investment will be 18.42%, the
profit tax rate of investment will be 32.1% and the investment recovery period will be 5.4 years.
     After the project is built up and put in operation, the sales revenue achieved annually will be
300 million Yuan, the profit will be 35 million Yuan and the tax will be 30 million Yuan.
     V. Cooperation mode
     All assets (including land, house property, equipments and intangible assets etc.) of
Chongyang Huian Cement Co., Ltd. are to be evaluated to converse into shares. It will integrate
with investor after joint investment and operate truthfully with him to fulfill outstanding
achievement and try for higher investment return according to principles of risk pooling, benefit
sharing and dividends distributed in proportion to shares.
     VI. Contact information:
     Investment Promotion Bureau of Chongyang County, Hubei Province
     Contact: Mr. Wei       Mr. Hu
     Tel.:0715—3385138 3395748(fax)
     Postal code:437500
     Http:// www.cyxxw.gov.cn
     E—mail:shengyingfang@163.com




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Infrastructure
                        Jiangtong Animation Industry Base
     I. Background information
     Animation industry is the one that develops rapidly, has remarkable economic benefit and
extremely high industry degree of association at home and abroad. In addition to production of
entertainment works, there are wide development prospect in web pages making, multimedia
making, advertisement making, game making etc. The construction of the project is of far reaching
importance to propelling the construction of cultural industry, cultivating new points of economic
growth and enriching common people’s spiritual and cultural living, especially for youngsters and
children.
     II.Project scale and content
     The project occupies an area of 40mu with overall floorage by 25,800 m2. Main construction
content consists of: the animation making building, the logistic comprehensive building and the
supporting facility construction, including: animation making section of phase 1 construction
building. 272 sets of software and hardware equipments for production will be bought; and
animation produced annually will be 15 thousand minutes.
     III.Investment estimate and its source
     The total investment will be 160 million Yuan.
     IV.Benefit assessment of the project
     The sales revenue will be one billion Yuan, and the total profit tax will be 165 million Yuan.
After phase 1 of the project is put in operation, the annual income of processing business will be
200 million Yuan, the annual income of original animation will be 72 million Yuan and the annual
income of introduction of copyright will be 24 million Yuan, all of which sum to 320 million Yuan.
And the total profit tax is 53 million Yuan.
     V. Starting and ending year of construction
     Year 2006-2010
     VI. Construction site of the project
     Jiangbei Civilian-run Science and Technology Park
     VII. Current project progress
     Having started the construction
     VIII. Contact information
     Project owner: Jiangtong Animation Stock Company

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Chief of the project: Xiong Linli 027-59731800




                                     203
                        Optics Valley Software Park Project

     I. Background information:
     Wuhan Software Industry Base Co., Ltd. (―Base Company‖ for short) is a professional
management company founded by joint investment of Productivity Promotion Center of Wuhan
East Lake New Technology Development Zone and Wuhan Gaoke State-owned Holding Group
Co., Ltd. with its registered capital by 100 million Yuan RMB. The main responsibility of the
company is to coordinate and manage ―Three-Park and One-Street‖ of Wuhan Software Industry
Base (namely Optics Valley Software Park, university software park, venture park and IT street on
Luoyu Road) and take on full rights to manage and run the core entity of Wuhan Software
Industry Base---Optics Valley Software Park. Base Company assumes the responsibility of
propelling integration of advantages and industries of optics valley industry, devotes to
constructing favorable production and development environment for software enterprises, builds
and maintains good public technology and service platform, improves the incubator function of
the base, encourages technology innovation and supports growth of middle and small businesses
to form complete industry chain of software industry.
     At present, phase 1 of the project of the software park is 70 thousand square meters. Over a
score of famous software enterprises have entered it such as Mapgis and Isofestone etc. There are
five floors and over 30 thousand square meters in R&D building of phase 2, which is the place of
core building of Optics Valley Software Park and Wuhan software public service and technology
supporting platform. Presently, the whole building is in the period of designing the decoration.
     ―International Commence Zone‖ of Optics Valley Software Park for phase 3 is in progress,
which consists of three main buildings and surrounding podium buildings. The construction area
of the main buildings is 15 thousand square meters separately, which are used as three key
industry concentration zones individually. The three industry zones are IC industry, animation
industry and software outsourcing; the areas of two podium building are 6 thousand square meters
separately, which are the office area for other software enterprises. The whole construction of
phase 3 will be completed and put in operation at the end of this year.
     In the following two years, we will further improve the animation base, outsourcing base,
information safety base, IC design centre and manpower training centre founded in Optics Valley
Software Park. 1. Animation base. At present, there have been domestic well-known enterprises
such as Jiangtong Animation, Media Technology Engineering Centre and Canada Yuyi Company
etc. 2. Outsourcing base. It is a software outsourcing enterprise centre and there have been Wuhan

                                                204
Software Outsourcing Union and Beijing Beyongsoft joining in it. 3. IC design centre. Wuhan
Science and Technology Bureau has approved that the professional incubator of IC design
enterprises will be founded in Optics Valley Software Park which starts to draw the attention of
domestic and oversea investors. Asia Micro, Trimode and Haoyu have received a great deal of
investment of companies from Malaysia, Shenzhen and Taiwan. 4. Information safety base. As one
of the three national ―863 plan‖ information safety industry base, presently this base has
introduced in 18 leading information safety enterprises of central China such as Andin Information,
Saint, Wuhan Tianyu, Huagong Mengda and No. 701 and No. 722 Research Institute of China
Shipbuilding Industry Corporation etc. 5. Manpower training base. By the approval of China
International Talent Exchange Fund, international software training base has been established in
Wuhan to scramble for domestic software ―cake‖ of 28 billion Yuan. There has been Thinkbank
entering our park, which is a stock system investment and operation organization of education and
training developed from China national informatization construction tide and educational system
reform. It was founded initially in year1998, and by the expansion and conversion in January,
2002, it has become a professional IT service organization that has various ownership components
and supplies the whole society with software outsourcing, information consultation, training,
education and output of talents.
     II.Content and scale:a R&D building with a construction scale of 400 thousand square
meters.
     III.Total investment: 50 million USD
     IV.Project owner: Wuhan Software Industry Base Co., Ltd.
     Contact: Lian Hua
     Fax:87611355
     Email:liruxiong@vip.sina.com




                                               205
                                  Railway Traffic Project

     I. Brief introduction to company
     WTRAN was founded in October, 2000, which is mainly responsible for the construction,
operation and management of Wuhan railway traffic and exploitation of resources along the lines.
Wuhan railway traffic network consists of seven railways; the total length of railway network is
about 220km and there are 182 stations and 3 vehicle bases. The railway network is divided into
three levels structurally.
     Wuhan railway traffic construction plan has passed the review of China International
Engineering Consulting Corporation. It is planned in near future (year 2010) to build up three lines,
namely No. 1 Line of railway traffic, Phase 1 of No. 2 Line and Phase 1 of No. 4 Line, all of
which form 70km line network framework like the character ―工‖.
     II.Introduction to project (lines)
     1. No. 1 Line project of railway traffic
     It is the first wholly overhead fast railway line. No. 1 Line locates in Hankou region. The
latitudinal direction passes across Hankou with the west beginning point at Wujiashan and the east
end to Dijiao. The line starts from Wujiashan, passes Tuoluokou, Gutian region and Zongguan
along Jiefang Road and then turns to Jinghan Road. It passes Jianghan Road and Dazhi Road to
Huangpu Road along Jinghan Road. It passes below No.2 Changjiang Bridge and then turns to
Jiefang Road, and passes Erqi Road along Jiefang Road and finally turns to Huangpu Roand to the
end Dijiao. No.1 Line is overhead for the whole line, the total length is 28.87km and there are 26
stations to be set along the line. The total length of phase 1 of the project of No. 1 Line is
10.234km, its total investment is 2.199 billion Yuan and it has been put into trial operation.
     Phase 2 of the project of No. 1 Line extends from the two ends of Phase 1 of the project: west
section line extends from main track of Zongguan Station to the west and is laid above the mid of
Jiefang Road. It passes No. 1 Hanxi Road, Gutian region and Tuoluokou, then crosses over
Handan Railway and No. 3 ring fly-over bridge of the city, moves on along the northern green belt
of No. 107 National Highway, turns north at Wuhuan Road, then goes along the mid of Wuhuan
Road, crosses over Dongwu Road and finally reaches the end Jinshan Road. The whole length of
the west section is 11.50km and it is wholly overhead. There are 10 stations set along the line and
the car depot for No. 1 Line is set at Gutian. The east section extends from the main track of
Huangpu Road Station to the east. It passes below No. 2 Changjiang Bridge and crosses over the
throat zone of Jiangan Railway Freight Yard. Later, it is laid along the mid of Jiefang Road and

                                                 206
passes Xuzhou New Village and Danshuichi to parting of the ways; after that, it goes along
Hanhuang Road to the end Dijiao. The whole length of the east section is 7.14km, the whole line
is overhead and there are 6 stations set along it. The whole length of phase 2 of the project is
18.64km and there are 16 stations set.
    The total area of land for the development and construction of the west section of phase 2 of
the project of No.1 Line is 211.6 hectares. The area of land for the development and construction
of the project around the east section station is 113.7 hectares. The estimated total investment for
phase 2 of the project is 4.422 billion Yuan RMB and the technical economy index is 237 million
Yuan/km. Those for west section project (including car depot) are 3.022 billion Yuan and 261
million Yuan/km. It includes that the estimated total investment for the section from Zongguan to
Tuoluokou is 2.061 billion Yuan; that for the section from Tuoluokou to Jinshan Road is 941
million Yuan; and that for the east section project is 1.42 billion Yuan and its technical economy
index is 199 million Yuan/km.
    2. No. 2 Line project of railway traffic
    The line of it starts in the north from Machi Road at north side of ChangqingGarden of
Hankou. It passes the most important external access pivots such as Hankou Railway Station,
Wuhan Jinjiadun Coach Union Station, Coach Station of Xinhua Road and Fujiapo Coach Station
etc.; business and trade centers such as Wuhan Square, Walk Street of Jianghan Road, Mid-south
Supermarket and Yamao Square etc.; entertainment and sightseeing zone such as Zhongshan Park,
Hongshan Square; education and research institutes such as East Lake Hi-Tech Development Zone,
China Optics Valley, Huazhong University of Science and Technology and Wuhan University and
reaches the end No. 5 Guanshan Road. Phase 1 o the project is from Changqing Garden to
Luxiang. Miaoshan Branch Line is from Luxiang in the west, passes Luoyu Road, No.1 Guanshan
Road and Lianghu Road and reaches the end Miaoshan
    No. 2 Line project is 39.8km including underground line by 27.15km and overhead line by
12.654km; and there are 31 stations set totally including 20 underground stations and 11 overhead
stations. Phase 1 of the project is 26.1km from Changqing Garden to Luxiang. The overhead line
is 1.8km and the rest is underground line. It is planned to be constructed in year 2005 and be put in
operation in year 2010.
    The area of land for the development and construction of Hankou Section of No. 2 Line is
204.77 hectares and there has been reserved an area of land by 50.35 hectares. Those for Wuchang
Section of Phase 1 of No. 2 Line are 80.47 hectares and 76.12 hectares separately.
    The total investment of the project is 18.2 million Yuan and the technical economy index is

                                                207
457 million Yuan per main track kilometer. It includes: the total length of Phase 1 of the project is
26.1 main track kilometers, its total investment is 13.327 billion Yuan and its technical economy
index is 511 million Yuan per main track kilometer. Those for Phase 2 and branch line are 13.7
main track kilometers, 4.873 billion Yuan and 356 million Yuan per main track kilometer
separately.
     III.Cooperation mode
     According to principles that are to contribute to improvement of urban whole functions of
Wuhan and construction of Wuhan railway traffic network, we can adopt multiple investment and
cooperation modes
     1.Cooperation by reorganization of corporate stock;2.BOT mode, BT mode and PPP mode
etc. of the whole project construction;3.Partitioning construction mode of the whole project,
namely carrying out comprehensive construction of station yard and construction of operating
facilities etc. by different investors.
     IV.Contact information
     Project owner: WTRAN
     Contact: Ye gang
     Tel.:027-83749095 Fax:027-83749036
     Address: Jinghan Road 99, Qiaokou District, Wuhan City
     Postal code:430030
     E-mail:wtran@126.com




                                                208
                      Qingshan Beihu Industry Park Project

     I. Background information
     According to master city plan of Wuhan, Beihu will be built gradually to be one of the key
level 2 satellite towns of Wuhan City with chemical industry area, steel deep-processing industry
area and a population scale of 250 thousand by taking advantage of opportunities such as
construction of the outer rings of Wuhan, Yangluo Changjiang Bridge, chemical port and project
of 800 thousand tons of ethene etc, existing industry foundation of Beihu developing depending
on Wuhan Iron And Steel Corporation and geographic advantages that it locates in the southeast
suburb of Wuhan.
     II.Project content
     It is planned to occupy an area of 5,000mu for Beihu Industry Park. It is 3000mu if the
volumetric fraction of land is calculated as 0.6. It is required that investment per mu should reach
2 million Yuan, total investment of the industry park is about 6 billion Yuan and gross output is
about 8 billion Yuan. It will be given special attention to introducing projects such as steel cutting
supporting facilities and trade, manufacture of motor parts, structure processing of light steel and
weight steel and manufacture of machinery etc.
     III.Investment scale
     About 750 million USD.
     IV.Cooperation mode
     Settlement of whole supporting facilities of project in the park, cooperation of project and
cooperative development etc.
     V. Contact information
     Address: Qingshan District Foreign Economic and Trade Bureau, Heping Road 971,
Qingshan District of Wuhan City
     Postal code:430080
     Contact: Liu Zhuxin
     Tel.:027-50806879         Fax:027-50806886




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Old City Development Project of Shangyao Business and Trade Zone

     I. Market scale and content: Shangyao Business and Trade Zone is faced with Changjiang
Wharf and abuts against the railway station. The waterland traffic is very convenient. It is the
cradle of business and trade of Huangshi. As early as over 50 years ago, here was the business
centre of Huangshi. Merchants gathered and business flourished. In 1980s, it had been constructed
to be the biggest comprehensive wholesale market of smallware in the southeast of Hubei
Province, had become the pivot and the distributing center of goods and material exchange of
Huangshi and surrounding cities, towns and villages and had the reputation of ―Hanzheng
Street‖of Huangshi. Due to the long time from the development of this zone, it has become the old
urban area of Huangshi with ruined houses and cabined streets, which severely restricts the trade
and development of Shangyao smallware wholesale market. Therefore, the city government
decided to reconstruct large area of the old city here and issue relevant preferential policies. It is
planned in the project that the development overall floorage of reconstruction of old city is about
289 thousand square meters, overall relocation area is 151 thousand square meters, including
construction projects: large-scale wholesale markets, economic and functional residence,
supermarkets and green square etc.
     II.Project scale and content: Real estate developers and capital will be introduced, blocks
of dilapidated and old houses will be removed and residence, the smallware wholesale market and
other facilities will be constructed. The overall relocation area is 151 thousand square meters
     III.Total investment and component: It is predicted that the total investment of the project
is 40 million USD.
     IV.Benefit prediction:Shangyao Business and Trade Zone has outstanding geographic
location and developed commodity economy. Developing real estate here, it has large appreciation
room, good sale market and stable return.
     V. Cooperation mode: Development by sole investment
     VI. Contact information:
     Contact organization: Investment Promotion Section, Investment Promotion Bureau of
Huangshi City, Hubei Province
     Contact: Wu Chaoyang          Deng Fen
     Tel.: 0086-714-6359875          Fax: 0086-714-6368386
     E-mail: hbhstz@sina.com



                                                 210
               Reconstruction Project of Huangsiwan Old City

    I. Background information: Huangsiwan Zone borders Daye, Hekou and Xisai. Presently,
there is a 2km tunnel connecting Daye. It is planned to construct another tunnel here connecting
Daye in the period of ―Eleventh Five-Year‖. Huangchang Street will become prosperous
commercial apartment district.
    II.Market scale and content: The road of Huangchang Street in Huangsiwan zone has been
built to be the ring road of Huangshi City surrounding city and country of Daye. Along both sides
of the road are all buildings built in 1960s including many flat and dilapidated houses. Due to the
want of urban development, this zone needs reconstruction.
    III.Project scale and content: Huangsiwan old city with an area of 100mu will be
reconstructed to be integrative subzone of residence and business & trade.
    IV.Total investment and component: negotiation by both parties
    V. Benefit prediction: Total investment will be 100 million Yuan. A large-scale retail and
wholesale market of agricultural and sideline products and smallware and commercial apartments
of 70 thousand square meters will be constructed.
    VI. Cooperation mode sole investment, cooperative venture
    VII. Contact information: Subdistrict Office of Huangsiwan 0714-6453089
    Investment Promotion Bureau of Xisaisan District, Huangshi City
     Tel.:0714-6481770.13907238750




                                               211
                       Five-Star Hotel Development Project

     I. Background information: It is planned to construct the project in the central urban area
of Xiangfan City---Fancheng, which is also the area that has the strong economic strength of
business and trade, complete facilities, dense population and strong consumption capacity. At
present, the whole district has one four-star hotel and four three-star hotels and the room rate of
main hotels is 60.37%. There has not yet been one five-star hotel. Reception capacity of hotels is
extremely in disproportion with the economic development level and its popularity. With the rapid
economic development of Fancheng, a great number of businessmen and tourists will be brought
and the demand for high-grade business and entertainment hotels will become active increasingly.
In addition to the entry of China into WTO, foreign capital is allowed to enter hotel industry,
which supplies the five-star hotel development of Fancheng with consumption market and
construction conditions. It is planned to construct a comprehensive hotel with 800-1000 guest
rooms, which has various functions of accommodation, restaurant, business conference, exhibition,
shopping, entertainment and body-building etc. And the designed style shall embody the
confluence idea of economy and culture of Fancheng and modern international architecture.
Cooperative party must be a famous group company with abundant capital and experience of hotel
management.
     II.Market analysis: The hotel planned to build locates in the business circle of the city with
the strongest development potential, which will attract a large number of strong and famous
enterprises to set up headquarters and businessmen and tourists to stay here. The cooperative hotel
will become a high level five-star hotel with complete functions, advanced facilities and first class
service. It will not only fill up the blank of hotel development lag in the city, but also promote
greatly the image and popularity of the city and contribute to driving the development of local
service industry. It has a promising prospect and stable investment return.
     III.Total investment and component: 31.25 million USD
     IV.Cooperation mode: Sole investment, joint investment, cooperative venture
     V. Contact information:
      Contact organization: Investment Promotion Bureau of Fancheng District
      Address: Daqing East Road 7
      Postal mode:441000
      Contact:Wu Hanbin          Tel.:0710-3446152          Fax:0710-3446152



                                                212
          Jiguan River Hydropower Station Development Project

    I. Background information: Baokang County Jiguan River Hydropower Station locates in
Wufengzhai that is at the upstream of Jiguan River of Maliang Town, and it is 5km away from
Maliang Town and 70km away from Baokang county seat. Traffic and transportation is convenient.
The catchment area of the whole drainage area of Jiguan River is 285 square kilometers and gross
head is 270m. There are thick woods and relatively good vegetation in the drainage area. Cliff and
bluff are steep at the upstream, water flows quickly and natural fall is large. Also there are
abundant undercurrent and cavern watersource. Here is the ideal hydropower station cascade
development location.
    II.Project scale and content: Jiguan River Hydropower Station can adopt three-level
development method. The installed capacity of the first level is 4,000 kilowatt, that of the second
one is 6,000 kilowatt and that of the third one is 10,000 kilowatt, all of which amount to gross
installed capacity of 20 thousand kilowatt. The annual time of electricity generation is 3,000 hours
and the annual amount of electricity generation is 61 million kwh. The project consists of dam,
spillway, powerhouse, booster station and transmission line. The electricity enters electric network
by 35kv transformer substation of Maliang Town after 5km transmission line at 35kv.
    III.Total investment and component: For the base of the project, 95 thousand cubic meters
of earthwork will be excavated, 2.23 million cubic meters of cement grout will be laid, 100
thousand cubic meters of concrete will be placed and 1,230 tons of metal structure will be
installed. The static investment budget estimate of the project is 15 million USD, including:
investment for construction is 8.5 million USD, investment for electromechanical devices and
installation work is 6.3 million USD and other expense is 200 thousand USD.
    IV.Benefit prediction: Income of electricity generation: After the completion of the project,
the annual amount of electricity generation is 61 million kwh and annual income of electricity
generation is 2.2 million USD in terms of the current power purchase price at 0.38 Yuan/kwh
(current average power purchase price of Hubei Province).
     Net profit: The budget of expenditure such as tax, management expenses and wage of
workers etc. is 980 thousand USD/year, including management expenses by 200 thousand USD,
tax by 610 thousand and wage of workers by 170 thousand UDS. Annually net profit reaches to
1.22 million USD.
     Power supply is important guarantee that accelerates regional industrial and agricultural

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economy development and improves people’s living standard. The main risk consists in water
supply. As long as local rainwater is in abundance, good economic benefit can be assured in the
project. Meanwhile, the construction of the project can supply laid-off personnel in cities and
towns with reemployment opportunities, so the social benefit is fairly favorable.
    V. Cooperation mode: Joint investment, cooperative venture and sole investment are all
acceptable.
    VI. Project progress: The general plan has been completed.
    VII. Contact information:
    Contact organization: Foreign Trade and Economic Cooperation Bureau of Baochang
County, Hubei Province
     Address: Nanguan Street 98, Baokang County, Hubei Province
     Contact: Chen Dayan                Tel.:0710—5812470 13871631399
     Fax:0710—5816108                    E-mail:wjf-0138@sohu.com




                                                214
                        Water Factory Construction Project

     I. Background information
     Xiaogan Water Company is the only water supply enterprise in the urban area of Xiaogan
City founded in year 1975. The company occupies an area of 41,800 square meters, has original
value of fixed assets by 10.88 million USD and total distributing net by 164km. The daily water
supply capacity of the company is 100 thousand tons. It administers ten secondary units such as
No.1 water factory, No. 2 water factory, business offices, inspection offices, garage, pipe lining
works company, supply and distribution company, mineral water factory and water tank cleaning
team etc. It has become a social benefit enterprise with doubling production capacity of
underground water and surface water and multiple operation capacity.
     II.Market analysis
     Presently there is a population of 300 thousand in the urban area of Xiaogan City. It is
predicted that the population of urban area will reach 350 thousand. Current water supply capacity
falls far short of domestic water and industrial water of the urban area. The prospect of the project
is promising.
     III.Project scale and content
     It is planned to construct water facilities such as water catchment pump room, delivery pipe
network, water treatment plant, conveying pump room and water distribution network etc. The
gross length of water catchment, conveying and distribution pipes is 34km, reaching the water
supply capacity of 300 thousand tons/day.
     IV.Total investment and component
     Total investment will be 37.5 million USD.
     V. Benefit prediction
     After the completion of the project, annual sales revenue will be 9.12 million USD, the profit
will be 1.78 million USD and the investment recovery period will be 10.4 years (including the
construction period).
     VI. Cooperation mode
     Joint investment, cooperative venture, financing or other modes.
     VII. Project progress
     The establishment of the project has been approved. And the feasibility study report has been
completed.
     VIII. Contact information

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Contact organization:Business Bureau (Investment Promotion Bureau) of Xiaogan City
Contact: Yan Dashuang, Deng Lin
Tel.: (0712)2832556
Fax: (0712)2822944
E-mail: xgshangwu@163.com
Website:http://www.xgswj.com; http://www.xgswj.cn
Postal address: Chengzhan Road 36, Xiaogan City, Hubei Province
Postal code: 432000




                                       216
                     Beishan Pumped Storage Station Project

     I. Background information
     The task of Beishan pumped storage station is to relieve the pressure of Hubei electric
network and basically meet the requirements of peak modulation and channel filling for Jingzhou
and Jingmen region. It contributes to improving the operating conditions of the system and
making full use of existing power equipments of the system at channel period.
     Beishan pumped storage station has registered to be a company. At present, there are 12
senior engineers
     II.Market analysis
     The station mainly takes on the tasks such as peak modulation and channel filling, emergency
use and frequency modulation phase modulation etc. for No. 2 load center of Hubei electric
network in central China---Jingzhou, Jingmen and Xiangyang Region
     III.Project construction content
     Main projects include: upper reservoir of the station (including three gravity dams), water
tunnels, power building, and two 100 thousand kilowatt reversible type generating sets.
     IV.Total investment and component
     The total investment of the project is 700 million Yuan, including the static investment by
600 million Yuan.
     V. Benefit prediction
     After the completion of the power station, 257 million kwh of quality peak load electricity
will be generated, the annual sales revenue of power generation will be about 224 million Yuan,
the financial internal rate of return for the whole investment will be 17.89%, the financial internal
rate of return for capital will be 34.5% and the investment recovery period will be 8-13 years.
     VI. Cooperation mode
     Joint investment or cooperative venture
     VII. Project progress
     All the assessment and reasoning work of planning, site selection, pre-feasibility research,
feasibility research and preliminary design stage of the project have been completed. The reports
related to environmental protection, water and soil conservation, earthquake disaster, utilization of
lower reservoir, access system and requisition of land etc. have received documents of approval
from government departments in charge; and the project has been included in ―Eleventh Five-Year
Plan‖ of the government of Hubei Province, Central China Grid Company Limited and Hubei

                                                217
Electric Power Company. In April, 2004, Development and Reform Commission of Hubei
Province approved the feasibility research report of the project (E.F.G.N.Y.[2004] No.377) and
agreed to start the construction. With great help of all levels of governments and relevant
departments, Zhongxiang Beishan Pumped Storage Co., Ltd. started the construction of the early
―Three-accessible and One-leveling‖ works of the project on August 10, 2004.
      VIII. Contact information
      Contact organization: Investment Promotion Bureau of Zhongxiang City
      Contact: Tang Rulin
      Tel.:0724-4222584        Fax:0724-4223203




                                              218
                       Wuhan---Ezhou Fast Channel Project

     I. Background information
      Wuhan---Ezhou Fast Channel is one of the seven fast way out of Wuhan that are planned to
be constructed by Hubei Province, which is of great importance to upgrading the traffic level of
Ezhou City, promoting the social and economic development of Wuhan, Ezhou, Huanggang and
Huangshi, accelerating the construction of ―Wuhan Cities Circle‖, establishing the comprehensive,
tridimensional, speedup and network structure of urban traffic and propelling economic rapid
development of Hubei Province.
     II.Project scale and content:
      The total length of the line is 51.32KM; the highway is two-way and has four driveways;
the planned travelling speed is 100Km/h; and the breadth of road bed is 26M. The starting point is
Zuoling Town of Wuhan and the ending point connects to Wuhuang Highway and Daguangnan
Highway in Huahu Town of Ezhou City. It interflows with Edong Changjiang Bridge. It is
estimated that it will occupy an area of 4,975mu.
     III.Total investment:
      The total investment is 2 billion Yuan RMB and the average cost of construction per
kilometer is 39 million Yuan RMB.
     IV.Benefit Prediction:
      The economic net present value is 203.87 million Yuan; the cost ratio of economic benefit
will be 1.19; the investment recovery period will be 17.8 years (including the construction period)
and the internal rate of return will be 12.49%. It has financial profitability and liquidity and has
risk resistance to some extent.
     V. Cooperation mode:
      It is planned to construct in BOT financing mode.
     VI. Contact information: Investment Promotion Bureau of People's Government of Ezhou
      Address: Nanpu Road 58, Ezhou City
      Tel.:     0711—3224058
      Fax:      0711—5903666
      Website: http://www.hbezzs.com




                                                219
    Phase 2 of the Project of Jiugong Mountain Wind Power Station

        I. Project Conditions: Jiugong Mountain, the national scenic spot, has maximum
latitude by 1657m and common latitude by 1300 -1500, which is one of the places with
strongest wind in the world. It has advantaged conditions to construct a wind power
station here. And it is easy to incorporate in power network to transmit electricity. Also
it can promote tourism development of Jiugong Mountain and adds a special cultural
landscape to the scenic spot. Phase 1 of the project has been officially constructed on
May 18, 2004 and the pre-feasibility research (instead of project proposal) of phase 2 of
the project has passed the review of National Development and Reform Commission.
Documents such as incorporation in power network, loan from ICBC, financial guarantee for
secondary project and environmental protection license commitment etc. has been done
completely and National Development and Reform Commission has approved the establishment
of the project.
        II.Construction Scale: By the reasoning of relevant experts, a large -scale wind
power station with installed capacity of 156MW and investment of 1.56 billion Yuan can
be constructed in Jiugong Mountain region. It is planned to construct in three phases,
including: the scale of phase 2 is 40MW using fifty 800KW wind power sets.
        III.Investment scale: The total investment of the project is 1.56 billion Yuan
RMB, including 400 million Yuan RMB for the phase 2 investment.
        IV.Cooperation mode: Sole investment or joint investment.
        V. Benefit assessment:After the completion of phase 2 of the project, the annual
sales revenue will reach 149.19 million Yuan, the tax will be 4.47 million Yuan, the
profit will be 59.67 million Yuan, the annual average power purchase price will be 0.539
Yuan/kwh in operating period (not including value -added tax) and the investment
recovery period will be 6.7 years.
        V. Contact information:
        Development and Reform Bureau of Tongshan County
        Contact: Deng Qianhong
        Tel.:0715—2363700
        Postal code:437600




                                           220
          Jiugong Moutain Pumped Storage Station Project

        I. Project conditions: With the acceleration of industrialization progress and
rapid development of economy, the conflict of severe power shortage is prominent
increasingly. Therefore, it admits of no delay to accelera te the construction of electrical
sources and improve and optimize the structure of electrical sources. Jiugong Mountain
pumped storage station has been defined as the selected station point through the
planning, investigation and reasoning of Mid -South Design & Research Institute of
SGCC.
        II.Investment scale: The original installed capacity is planned to be 1200MW
and the total investment is estimated to be 3.7 billion Yuan. It includes: the installed
capacity for phase 1 of the project is 600MW and the investment is 1.85 billion Yuan;
and the same to phase 2.
        III.Benefit analysis: After the completion of the project, the effective storage
of pumped storage power generation is 577.8 cubic meters. The hours of equivalent
power generation will be 13.3h (full installation), the annual sales revenue of electricity
will be above 870 million Yuan and the annual operating expenses will be 390 million
Yuan, so the economic benefit will be considerable. Moreover, the project locates in
national scenic spot Jiugong Mountain, in which there are good geologic conditions,
high waterhead, little flood damage and no population movement. It contributes to the
further development of tourism resources and has remarkable social benefit.
        IV.Cooperation mode: Sole investment or joint investment
        V. Contact information:
        Investment Promotion Bureau of Tongshan County
        Contact: Wang Zuhong        Deng Yaohua
        Tel.:0715-2060388




                                            221
Environmental Protection
            Project of Municipal Domestic Waste Composting

     I. Project scale and content:
     This project locates in Chaoyanghu Village, Lengji Town, Gucheng County with an area of
150mu; it is 11km from the Laohekou City and 10km from Wudang Mount Airport, close to
Gucheng County Expressway exit and along with the Hanjiang River, thus the traffic is very
convenient. When the project is completed, with complete supporting facilities, the annual
treatment capacity is 180,000 tons and the annual output of the compound organic fertilizer is
90,000 tons. It can ravel out domestic waste of two cities simultaneously.
     II. Total investment and composition:
     The total investment of the project is 19 million USD, including 11.3 million USD for
construction, 5 million USD for equipments and materials which will be one-off in place, and 2.7
million USD of current capital which will be in place two months before the project being put in
operation. The money will be raised by introducing investment and financing.
     III. Benefit forecasting:
     The products of the project have low cost, adequate supply, high output and fast proceeds.
After the project is put in operation, it can ravel out domestic waste of two cities and reduce
environmental pollution. At the same time, since the treatment plant locates in an agricultural city,
the far-near combined sales mode can be adopted to reduce transportation cost and expand the
sales channels. The construction period will be 2 years.
     IV. Project progress:
     The project is greatly supported by Laohekou City, Gucheng County and all departments. It
has been established and the relevant procedures of all departments can be transacted after the
fund is in place.
     V. Cooperation mode:
     Solo investment, joint investment or cooperative venture
     VI. Contact information
     Contact: Xiao Shiwen                  Tel.: 0710-7339078
     E-mail: gczsyzzx@163.com             Website: http:// www.hbgc.cn




                                                222
 Environmental Protection Type Wind Power Circulating Sandblast
                       Equipment Project

     I. Background information:
     Hongyang Machinery Factory of China Sanjiang Aerospace Group Corp. is an
important aerospace industry enterprise in China with its main responsibility of
research and manufacturing of hi-tech aerospace products. After the construction of
the factory for more the 30 years, it has formed the technique structure that emphases
on research and application of general assembly and modulation, composite material
manufacturing,   large-scale    precision    machinery   manufacturing,   design   and
manufacturing of non-standard equipment. It also has unique technical advantages in
aspects such as high-speed precision machinery processing, sheet metal, cold
stamping, jointing, formation of composite material, surface treatment, heat treatment,
physical and chemical detection, assembly and test etc. As ―composite material and
manufacturing technology institution‖ of Sangjiang Group, the factory owns many
techniques that reach to domestic advanced level. The factory is provided with
consummate quality indemnification system. It obtained National Level 1
Measurement Certificate in 1990 and the ISO9000 quality system authentication in
1996. In 2003, it converted into the system of GJB9001A of 2001 version. Since the
factory entered into the construction of CIMS project, it had successively carried out
a series of   application systems ,such as OA、CAD/CAPP/CAM、MRPⅡ、PDM. It
has made profit for 16 years.
     II. Market analysis
     The environmental protection type wind power circulating sandblast equipment
is the most advanced surface treatment equipment at present. With the advantages of
environmental protection, low labor strength, good working surroundings, low
maintenance expense and long useful life etc., it can be designed to use in rotoblast
rooms. It is mainly applied for the sandblast (rotoblast) treatment of large and medium
scale structural parts before spraypaint or surface treatment, such as navigation,
military, shipbuilding industry, project, petrochemical industry, civil engineering
hydraulics equipment, bridge component, metal structure, rolling stock, mining
equipment, power equipment and large-scale electric machine etc. Presently,
environmental protection requirements is becoming strict increasingly, this technique

                                            223
has been accepted by most of domestic manufacturers. The market prospect is
promising.
     III. Project scale and content
     Capital will be introduced in the project to construct the production line with a
capacity of 20 sets of environmental protection type wind power circulating sandblast
equipment
     IV. Total investment and component
     The total investment of the project is 10 million USD, including 60% from the
factory and 40% by introducing investment.
     V. Benefit prediction
     Estimating according to the application area and market quotation of this product
type, the annual output value and sales revenue will reach to 8 million USD. The
gross profit rate of sales will be about 25%
     VI. Cooperation mode: Joint venture, cooperative venture or other modes.
     VII. Project progress
     The project has been established and the feasibility research report has been
completed.
     VIII. Contact information
     Contact organization:   Investment Promotion Bureau of Xiaogan City
     Contact:   Yan Dashuang, Deng Ling
     Tel.: (0712)2832556
     Fax: (0712)2822944
     E-mail: xgshangwu@163.com
     Website:http://www.xgswj.com; http://www.xgswj.cn
     Address: Chengzhan Road 36, Xiaogan City, Hubei Province
     Postal code: 432000




                                          224
   Comprehensive Development Project of A Series of Byproduct of

                                Heat Engine Plant

     I. Background information:
    Dabie Mountain Heat Engine Plant is a key construction project of Macheng
City, which is in the process of construction. The installed capacity of Phase 1 of the
project is 2×600 thousand KW; the total investment is 4.9 billion Yuan; it is planned
to be incorporated in power network and generate electricity in year 2007. After the
completion of phase 1 of the project, the annual output of pulverized fuel ash will
be about 500 thousand tons. The installed capacity of Phase 2 of the project is 2×1
million KW; phase2 is in the process of design; and it is estimated that the annual
output of pulverized fuel ash will be about 1 million tons after the completion of
phase 2. The total output of pulverized fuel ash for the two phases of the project
will be 1.5 million tons.
     II. Market analysis:
     The comprehensive utilization amount of pulverized fuel ash in China in year
2000 was 70 million tons and the utilization rate reached to 58%. Until 2005, the
comprehensive utilization rate of pulverized fuel ash had risen to 65%. The coal
used for electricity generation in China for this year will reach to 640 million tons;
and for this reason, the pulverized fuel ash will reach to 160 million tons. As to such
large amount of pulverized fuel ash, it is waste if not utilized and resource if
otherwise. For example, the new wall materials such as pulverized fuel ash sintered
hollow brick, pulverized fuel ash air-entrained concrete and pulverized fuel ash
streamed and pressed brick etc. are all use pulverized fuel ash as main material.
     III. Project scale and content:
     1. Comprehensive utilization of pulverized fuel ash: (1) Production of cement:
High usage and high added-value can be achieved by using pulverized fuel ash to
produce cement. The annual output of 400# or 500# finished cement will be above
1 million tons from 500 thousand tons of pulverized fuel ash plus 70% of cement
clinker. And the annual product value (at current market price) will be over 250
million Yuan. (2) Choice of cenospheres and microspheres: They can be used to
produce insulating mold coating. Pulverized fuel ash hollow microspheres have the


                                         225
features of high melting point (>1500℃) and small thermal coefficient (0.063~
0.114W/m·k). The fire resistance temperature of insulating mold coating produced
from it can reach to 1200℃; and it will not burn after torching for 60 minutes. It can
be used to construct steel-timber structure and reinforcing steel concrete. (3)
Manufacturing bricks: manufacturing bricks using pulverized fuel ash with local
materials, local sales, short investment cycle and fast effect. It is an ideal investment
project.
     2. Comprehensive utilization of heat energy from the power plant.
     IV. Total investment and component:
     In the aim of realizing scale production, investment cost will be defined
according to the corporation.
    V. Benefit prediction:
    Presently, the comprehensive utilization of pulverized fuel ash is mainly in
manufacturing of cement, road construction, bam building, composite material of
concrete, wall material (brick, tile, board and block). Except few cenospheres have
been gained and used, other have not been exploited fully.
     Cenospheres can be widely used in the production in all industries. For the
high value and wide use of pulverized coal, China encourages and supports the
comprehensive utilization of pulverized fuel ash and offers preferential policies in
revenue and environmental protection etc. And with the full use of the advantaged
geographical predominance and abundant resources of Macheng City and the
logical exploitation of pulverized coal, the market prospect will be very spacious. In
addition, using the heat energy produced in the process of electricity generation
from the power plant to construct heat energy supporting supply project can not
only improve infrastructure, but also provide relevant industries with quality and
cheap supporting service. The development prospect is very remarkable.
     VI. Cooperation mode:Solo investment
     VII. Project progress:
   Dabie Mountain Heat Engine Plant is to incorporate in power network and
generate electricity with abundant materials and conditions of scale development.
   VIII. Contact information:
  Investment Promotion Bureau of Macheng City
  Tel.:0713-2951558        Fax:0713-2956069

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