Name of the
Project: Project on Inviting Investment in Bamboo Flooring and Bamboo Decorative
BACKGROUND AND CONDITIONS OF UNDERTAKING THE PROJECT
Lin’an is renowned as “ The Town of Bamboo” in China. According to the 9th Five-year Plan and Development Program in 2010, as far as secondary industry as concerned, Lin’an will stress on developing resource-processing industry and enhancing agricultural development level so that agriculture and resource-processing industry will adapt to each other.
Established in 1980’s, the bamboo processing industry in Lin’an plays an important role in consuming the local bamboo resources and raising the price of raw bamboo. Once the project is implemented, it will consume 640,000 poles of bamboo, bringing an annual revenue of 7.68 million yuan to the farmers and creating 250 vacancies for workers.
After a year’s survey and practice, the corporation is ready for going into operation. With plenty of talents in technology and management, the corporation has laid a solid foundation for enlarging its production scale and improving the technological level and efficiency.
The supple of raw material is abundant in Lin’an. Besides, Jiangxi, Fujian, Anhui Provinces and the neighboring counties also actively supply raw bamboo.
After the implementation of the project, the corporation will achieve an annual capacity of 100,000 square meters of bamboo flooring and bamboo decorative planking, enhance the ability to develop new products and new specifications, strengthen technological reserve and thus become a leading bamboo processing enterprise that is integrated in science, industry and trade.PART THREE
THE INVESTMENT AND CONSTRUCTION SCHEDULE OF THE PROJECT
The total investment amounts to RMB7,877,000, including RMB4,827,000 of fixed assets for production, RMB 130,000 of new product development and research equipment, RMB2,500,000 of current capital and RMB420,000 of deferred assets and unforeseeable expenses. The foreign party will invest RMB4,000,000 of equipment and current capital while the Chinese counterpart will offer RMB3,877,000 of plant and land.
From December, 1999 to February, 2000 will be the construction period. The corporation will start production in early 2000, reaching a capacity of 150,000 m2 with 90,000 m2 bamboo flooring and 60,000m2 of bamboo decorative planking.PART FOUR
THE ECONOMIC AND SOCIAL BENEFITS AND THE REPAYMENT OF THE CAPITAL
In 2000, the corporation will achieve a sales revenue of RMB10,150,000, making a net profit of RMB1,198,000. From 2001 on, the sales revenue, net profit and profit tax will reach RMB20,300,000, RMB2,736,000 and RMB5,404,000 respectively.
Some important data are as follows:
This project fits for the resource conditions in Lin’an and comply with the state industrial policy. Since it enjoys a sound foundation in the present production technology and the orders from other countries exceeds the production capacity, it has a bright market perspective.
The project has good social and economic benefits. It is almost impossible to incur a loss caused by insufficient sales or rise in cost. With the implementation of the project, Lin’an Zhejiang Tea Industrial Corporation will become a leading bamboo processing enterprise that is integrated in science, industry and trade.