A Survey of Penglai City, Shandong Province

Penglai is situated at the northern tip of the Jiaodong Peninsula, China. It covers an area of 1,201.8 kilometers with a population of 490,000. Penglai has been known as "a Fairyland on earth" since the ancient times.

Nestled behind mountains and looking on to the sea, Penglai has a pleasant climate. It is abundant in natural resources. The annual sea products amounts to over 100,000 tons.

Penglai has well-developed transport and communication facilities. Four highways run through the city and a 10,000-ton-deepwater wharf has been put into operation. Furthermore, seventy kilometers away are the Yantai Port, the Yantai Airport, the Yantai Railway Station and the Longkou Port.

Industries are developing rapidly in Penglai City. Machinery, light industry, electronics, textile, foodstuff, building materials are the mainstay industries. The annual output of cement is 3 million tons.

With its favorable environment and preferential policies for investment, and the unique scenery of a fairyland, Penglai is a great attraction to foreign co-operators. Up to now there are more than 270 foreign joint ventures with the annual export value of more than USD 100 million.

Now Penglai is fully open to the outside world, you are welcome here for sightseeing, business and investment so as to promote the prosperity and development.

The Seaside Park Synthesize Development Project Name
The seaside park synthesize development

Project Unit
Penglai City Gardens Management Office

General Survey of the Project Unit
Penglai, as a beautiful seaside city is situated at Shandong peninsula, bordering Bohai Sea and Yellow Sea, with Liaodong peninsula on the opposite bank. It has a beautiful scenery. It enjoys a pleasant climate with no severe cold of winter, no intense heat of summer. It is famous for "the marvelous spectacles of the mirage", the legend of "the Eight Immortals crossing the sea", "the world famous Penglai pavilion" and Penglai Water Castle and many historical spots. The average annual sightseer here are about 2.5 million and hold trade talks.

Penglai seaside park is directly under "Gardens Management Office", to it's west is Brage of Assembling Immortals" to it's east is "The villa area of the Eight Immortals residence, with the Chain of islands of Chang Bai hill on the opposite bank.

The park covers an area of 3.2 ha., an 1400 meter long coast line extensive and clean sands. The sea area is calm and no gullies, no sharks. It is considered as an ideal place for development of going sight-seeing at sea.

The coast line is abundant in natural resources. When a clear and boundless sky is, the bright blue sky makes the blue sea standing out by contrast, but in the summer rain, is a running foggy and is "a good fairy land on earth". If you have fortune luck to meet "Marvelous spectacles of the mirage" it really is constantly changing.

It has been making green by planting trees for many years. There are flowers and evergreens in the park scene. Now it has been built 1.2 ha., the windbreak forest belt for strange willows, the large relief sculpture of the three-mountain arch, the pavilion of seeing sea, and the architecture of seawater bath place is unique.

According to the overall plan of famous scenery spots of Penglai and Changdao. We have decided to develop the seaside park, and make it has the integration of tourism trade, eating and staying at a great speed.

Project Content
1. The development of sea tourist facilities.
(1) Building sea paradise: supposing the undersea world, the drop by parachute on the motorized, sailing boat, slide at sea, punching wave, colliding boat, the club at sea (music teahouse, cold drink, barroom) etc..
(2) The development of tourist boat from Penglai to Changdao. building good service facilities: such as go fishing, choice seafood a steamed dumpling with the dough gathered at the top, make food by yourself etc.

2. Synthesize tourism hall at sea water bathing place.
The common change room has been building high-level locker room, resting, teahouse integration of synthesize tourism hall.

3. Synthesize good service building
It mainly includes a ballroom, dance hall, gymnasium, barroom, business etc.

4. The development of economic benefit gardens scenery.

Investment
The total investment is USD 15 million, the first investment is USD 0.5 million.

Economic profit
The seaside park is situated Penglaige between the Eight Immortals' village.

average annual sightseer of Penglaige is 2.5 million every year, the seawater place is 1 million, the seaside park is about 1.5 million. It cost about RMB 30 yuan. It incomes RMB 4.5 million every year. The investment recovering period is 2.7 years.

Cooperation Form
Joint venture, cooperative venture or wholly foreign-owned enterprise.

Development Of Advanced Washing Machinery Project Name
Development of advanced washing machinery

Project Unit
Penglai Arts & Crafts Machinery Factory

General Survey Of The Project Unit
Penglai Arts & Crafts Machinery Factory Located in the center of Penglai city was founded in 1964. The area of the factory is about 40000 M² with a building area of 20000 M². Up to date, the factory is producing industrial washing machines. There are 560 workers and staff members including 87 technicians.

Content Of The Project
In order to improve the grade of machines, the factory has new built a factory building of 7000 M². The communications and transportations are very convenient and power, water and gas are all ready for producing the industrial washing machines.

Supply Of Raw Materials, Fuel And Power
Raw material, fuel and power can be supplied well in this factory, and communication and transportation are very convenient. The cooperative enterprise also can import part of raw materials and all kinds of main parts in the future.

Market Calculations
With the development of tourism, more and more washing machines are needed. The industrial washing machines are welcome for their saving costs, high efficiency and reliability. The market is quite wide for the products, especially in the main land of China. The cost of the machines is low, so they have strong competition capacity in the world.

Investment
The total invest of this project is USD 5 million. We wish foreign investors invest 1/3 of the investment and cash. The rest will be invested in from of factory buildings, land and part of the production equipment.

Forecast Of Economical Benefit
After finishing the project the output value will reach USD 8 million, the profit will be USD 700 thousand. The investment return period is 5 years.

Cooperation Form
Some flexible forms of the cooperation can be considered by negotiating of both parties. It can be done through joint venture or cooperating management. Or foreign partner may hire the buildings and land from the Chinese party and keep it run by himself. Also the factory can manufacture and assemble washing machines according to the drawings or samples supplied by the foreign partners.

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Extending the Line of Meat Chicken Project Name
Extending the Line of Meat Chicken

Unit of Project
Penglai Improving domestic animals farm.

Survey of the Original Farm
Penglai Improving Domestic Animals Farm was founded in 1980. It covers an area of 167 thousand M², among which 60 thousand M² is area of construction. It has nine enterprises: a feed processing plant, a stud stock, a hatchery, a chicken test farm, four meat breeding chicken farms and slaughterhouse. Its assets fixed are 25 million yuan. There are 410 employee among which there are 145 technical personnel. The farm is supplying feed, breeding eggs, young chickens, commodity of meat chickens and products of meat chicken. It has had production capacity of put out 10 thousand tons of feed, raising breeding chickens 100 thousand pairs in generation of father and mother, supplying 13 million pieces of breeding egg and commodity of young chickens 10 million pieces, raising commodity of chicken 4 million, slaughtering and processing 1000 tons of chickens. The farm was chosen as an advanced enterprise in the domestic animals industry of China in 1993. Its technology raising chickens in coop has been fetched advanced international standard.

Substance of the project
After the project goes into operation, the scope of producing meat chicken can be extended, its area will be 433.8 thousand M² and 140 thousand M², processing feed is 45 thousand tons. It will raise breeding chicken in 200 thousand pairs and fatten 8 million meat chickens, process 5000 tons of cooked chicken. The products will be exported 50%, and the rest half will be sold home. In order to complete the project, it must construct buildings in 260 thousand M² and a cold storage with capacity 1000 tons, and purchase equipment for processing feed, reed, raising meat chicken, slaughtering, making use of waste, cooking chickens and equipment in cold storage. It must equip facilities for water and power.

The farm has large capacity both in technology and in economy. It has bought a place in 400 Mu on which 120 thousand M² building has been finished. It has raised money 40 million yuan. Transportation and communication here are convenient. Raw materials and water, power are supplied sufficiently. The condition is suitable.

Supplies of the Materials and Power
In order to fatten 8 million chickens it is needed 50 thousand tons of grain, that can be gotten in China. Water and power can be supplied in the locality.

Market Forecast of the Products
The cooked products from chicken are welcome for consumers both home and abroad because of their color and smell. They are the commodity in high grade. They has broad latent capacity in the domestic and international markets.

Amount of the Investment and Raising Money
The amount of the investment is 60 million yuan RMB, among which 30 million yuan is used for construction, 28 million yuan is used for purchasing equipment, 2 million yuan is used for buying raw materials. Chinese party has raised 40 million yuan. The rest, that is, 20 million yuan is short. We hope foreign partner can invest in cash. The proportion of investment can be negotiated by both parties face to face.

Economic Benefits
After finishing the project, the farm can process 5000 tons of cooked products of meat chicken. If the price of the products is 15000 yuan per ton, the annual output value will be 75 million yuan. Besides the cost 8000 yuan a ton the annual profit will be 35 million yuan. The recovery period will be three years (including one year of construction time).

Cooperation Form
It is wished that joint venture would be taken.

1000 Ton Brandy Project Name
1000 ton brandy.

Company
Yantai Penglai Winery Company ( or: Shandong Penglai Winery).

Information Of Company
Yantai Penglai Winery Company, established in 1986, a medium-scale enterprise, boasts fixed capital 12 million yuan, working coverage 15000 M², land coverage 54,794 M², 350 workers, including 199 experienced workers, store capacity 10,000T, produce scale 7,000-10,000T quality wine. Our products have won 26 prizes both at home land abroad. Riesling semidry wine won gold medal on the No. 27 Brussels quality wine exhibition, and was agreed to have achieved the standard of AOC in France.

Project Detail
Having anticipated the market demand, according to produce scale, we plan to establish brandy making system with produce capacity 1000T. We will provide land, power, public facilities, part of our workshop, technology and cash (RMB), foreign side is hoped to venture with foreign exchange and brand of the potential product, 30 percent of product is planned to sell on domestic market, 70 percent on foreign market.

Raw Material And Energy
All raw material and energy will be provided by our side, including water, power, coal etc. Penglai is one of the best grape growing areas in China with a coverage 133,333 areas. All the famous varieties grow excellently here, such as chardonnay, Chenin blanc and Ruby Cabernet.

Market Foreseeing
People's living level has risen considerably thanks to the rapid economic growth in recent years. Brandy, which was thought to be foreign wine, now is gradually accepted by customers. With a 30 percent growth of demand, product of the main producers in China, which are no more than 5, can hardly meet the demand. And brandy is favorited in Guangdong, Fujian and Southeast Asia area. This is an advantage to our product sale.

Venture Amount
The total joint-venture amount is 1,5000,000 USD, and registered capital 1,5000,000 USD. Our side plans to venture with technology, land, workshop, public facilities and RMB, which cost 600,000 USD. 40 percent of total venture amount. The foreign side must invest with foreign cash 900,000 USD, and brand copyright, 60 percent of the total venture. We hope to have a face to face discuss with you in recent future.

Benefit
The sale amount is expected to be 40 million yuan and benefit 7,840,000 yuan. All investment can be taken back in 3 years.

Cooperation Plan
Joint Venture.

The Extend Computer Terminal Project name
The extend computer terminal

Project Unit
Penglai Jinglu Communication Video Equipment Factory

General Survey Of The Project Unit
Set up in 1988, this electron enterprise covers an area of 36000 M² with a building area 16000 M². The fixed assets is valued RMB 22 million yuan with more than 300 sets of instruments and meters. There are 386 workers and staff members including 128 technicians. Main Products include "Peong" and "Xingyunda" brands all remote control flat right angle color TV set, Video recorder, automobile tape recorder, audio frequency amplifier, etc. The output value in 1995 was RMB 100 million yuan with profit and tax of RMB 4 million yuan.

Market Forecasting
The extend Computer terminal is the key component part of computer for displaying data, picture, characters and information.

With the establishment of economic information industrialization, Computers are used in various fields. Especially with the development of family computer and multi-medium as well as the implementation of the "Three New Engineering" in our country the demand of the extend computer terminal increases sharply. According to the investigation, the annual required quantity in the world is 25 million sets, but the production capacity is only 21 million sets and the required quantity will increase at the rate of 20% a year. Most of the factories manufacturing this world products are in Taiwan whose production Capacity is 50% of the total output of world in the last few years the production quantity was reduced because of the increased production cost. With the implementation of the "Three New Engineering", the needed quantity becomes even more which the annual needed quantity is more than 1 million sets.

Project Content
(1) Importing advanced technologies.
(2) Rebuilding the production buildings.
(3) Purchasing production and inspecting equipment.
(4) Applying for the international UL attestation.

Supply Of The Raw Materials, Fuel And Power
(1) The display, electric fittings and connections may by supplied well in China.
(2) The outside cases may be supplied by Tianjin Plastic-injection Factory.
(3) The kinescopes integrated circuits may be imported.
(4) Water, power and coal can be supplied well in this factory.

Investment
The total investment is RMB 21 million yuan including USD 1.9 million. The Chinese part will invest RMB 10 million yuan with factory buildings, land and part of the equipment, the foreign part may invest with foreign exchange and equipment. The investment proportion will be discussed.

Economic Profit
The estimated annual output value is RMB 113.68 million yuan with annual profit of RMB 10.38 million yuan. The investment recovering period is 2 years.

Cooperation Form
Joint venture or cooperative venture.

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Penglai Breed Good Strains Base Project Name
Penglai breed good strains base

Project Unit
Penglai seed company

Survey Of The Project Unit
This farm is state enterprise. There are 35 farmers and staff members including 3 technicians. It covers a building area of 1000 M². The fixed assets is valued RMB 5 million yuan including 3 selecting machines. The output value in 1995 was RMB 15 million yuan.

Project Detail
After the project putting into production, the annual output is 10000 ton of maize seeds, 4000 ton of wheat seeds, 4000 ton of peanut seeds.

Supply Of Raw Material And Energy
All raw material and energy will be provided by our side.

Market Forecast
This product has a very good future.

Total Amount Of Investment
The total amount of investment for this project is estimated to be USD 2 million.

Economic Benefits
The annual estimated output value is RMB 50 million yuan with profit of RMB 8 million yuan. The investment recovering period is 3 years.

Cooperation form
Joint venture or cooperative venture.

Annual Output of 4000 Ton of Silica Gel Project Name
Annual output of 4000 ton of silica gel

Project Unit
Penglai Phosphate Fertilizer Plant

General Survey of the Project Unit
Set up in 1974, Penglai Phosphate Fertilizer Plant is a state-run enterprise. It is situated in North of Sahe village, Penglai City. It covers an area of 100000 M² with a building area of 20000 M². The annual output is 20000 ton of industrial sulfuric acid, 50000 ton of calcium phosphate, 44000 ton of Cement, 3 million PCs of PET bottles and 2000 ton of silica gel Products. There are 450 workers and staff members including 25 technicians.

Project Content
(1) Production Scale
During the end phase of the project we plan to set up another silica gel production with the production line, the annual production capacity may be 4000 ton.

(2) The raw material is sulfuric acid which can be supplied by this factory, the another material Sodium Silicate can also be guaranteed locally.

(3)For this project, we should rebuild 2000 M² of factory buildings with RMB 2.4 million yuan, purchase 40 sets equipment with RMB 6 million yuan and RMB 1.6 million yuan for land and others.

Reasons For Setting Up This Project
The major raw materials are sulfuric acid and water-glass, among them, sulfuric acid is the main product of our factory. Now we have had a 2000 ton of silica gel production line and the product has passed the inspection of Shandong Commodity Inspection Bureau. So whether technology or equipment are no problem.

Market Forecasting
Silica gel is belong to inorganic chemical product. It has a big usage such as damp proof, dry, constant temperature, catalysis etc. It can also be used for rising quality and production value of family appliance, precise instrument, camera garments and construction. In the international market the price of the silica gel is getting high and high. The product in this factory can be exported by Qingdao Foreign Trade Company.

Supply Of Raw Materials And Power
The annual needed amount of sulfuric acid is 1400 ton which can be provided in this factory. 9000 ton of water-glass, water and power can be supplied well locally.

Investment
The total investment of this project is RMB 10 million yuan, among them, RMB million yuan for equipment, RMB 2.4 million yuan for construction, RMB 1.6 million yuan for land and others. The Chinese Party will invest in form of factory building, land and other facilities.

Economic Profit
The annual estimated output value is RMB 14 million yuan with profit of RMB 3.68 million yuan. The investment recovering period is 2.5 years.

Cooperation Form
Joint venture or cooperative venture.

Shandong Zhenglong Group Company

Shandong Zhenglong Group Company is situated in Penglai City, Shandong Province. It covers an area of 10.6 ha with the fixed assets of RMB 200 million yuan. The annual output value is over RMB 400 million yuan. There are 8 enterprises in this company, they are Hardware Tools Factory, Bohai Cement Plant, Water & Central-heating Pipe Fittings Factory, Resinoid wheel Factory, Plastic Product Plant, Hualong Fine Ceramic Industry Base, etc. It was approved as a "Self-run Import & Export Enterprise" by the Ministry of Foreign Economic Relations & Trade of P.R.China in 1995.

The Hardware Tools Factory is the key enterprise of this company. It covers an area of 20,000 square meters with the fixed assets of RMB 80 million yuan. The annual output value of this factory is RMB 120 million yuan. The "Beili Brand" serial piping tools manufactured by this factory includes more than 20 varieties and 60 specifications of manual and electric tools. The annual output of ratchet diestock, ratchet diestock die, pipe cutter, hinged pipe vice, shaped material cutter, piping dredge and automatic threading pipe cutting machine are over 2 million sets which take up over 75% of the total output of China and hold over 95% of the market. The products are exported to more than 30 countries or regions in the world. It was reputed as "China's Piping Tool King" by home and abroad customers and the products were awarded the title of "China's Famous Brand Products" by the Ministry of Agriculture in 1995.

The factory is the unique producer with the most specifications, the topmost, the topnotch quality and the largest sales volume in China.

Hualong Fine Ceramic Industry Base is a high-tech, new style and modern enterprise jointly established by Shandong Zhenlong Group and Fine Ceramic Research Laboratory, Nuclear Energy Research Institute of Qinghua University. As a combination unit of science research and production, the base mainly produces the high fine ceramic parts and biological ceramic parts. These products have the characteristics of resistance to high temperature, corrosion and wearing. It is the essential material for machinery, space technology, electronic technology etc. The ceramic scissors, valves, bearings, pistons and artificial joint, artificial eyeballs for medical use have reached America and Japanese standard. According to the analysis of home and abroad market, this product has a broad prospects.

Shandong Zhenlong Group Company Sincerely welcome all friends from home and abroad to this company for sightseeing, investigation and investment.

Technical Transformation of Car Valves

Project name
Technical transformation of car valves

Project unit
Shandong Penglai Power Machinery Factory

General survey of the project unit
Set up in 1958, this factory is a state-run enterprise. There are 700 workers and staff members including 60 technicians.

The main equipments are about 300 sets with the fixed assets of RMB 20 million yuan. It covers an area of 60,000 sqm with a building area of 28,000 sqm. The output value in 1995 was RMB 25 million yuan with the profit of RMB 1.5 million yuan.

This factory has manufactured the engine valves for more than 30 years. It has over 40 type and 80 specifications and the annual output is 3 million pcs. It is the largest valve production enterprise in Shandong Province.

Reasons for setting up this project
In the recent few years, car industry is the major industry of the national economy. The eighth-five-year plan is the important period for the development of automobile in China.

The valves for PEUGULT brand car is the typical product of this project. The manufacturing technology and the function are all reached the modern international standard.

Market forecasting
Valves are the key damagable fittings of the internal-combustion engine. Automobile industry, as the key industry to develop in China, will need more and more valves in the near future. By the end of the ninth-five-year-plan, the car production capacity will be 1.5 million sets a year and the needed valves will be 20 million pcs, the production capacity of other type of automobiles will be 1.5 million sets a year and the needed valves will be 12 million pcs, the production capacity of motorcar will be 5.12 million sets and the needed valves will be 20.48 pcs. From above we see that the total needed quantity of valves will be 52.48 million pcs. Other more the other documents said that the needed valves for repairing usage will be 85.14 by the end of this century.

There are 26 factories producing valves in China, among them, there are only 8 factories whose annual production capacity is over 3 million pcs, the others are bellow 2 million pcs.

After the eighth-five-year-plan finished, the total valve production capacity may be 50 million pcs.

Supply of raw materials and power
The annual needed steel is 1200 ton which will be supplied well in China and the power can be supplied well locally.

Investment
The total investment is RMB 80 million yuan. Among them RMB 10 million yuan is for constructing 12,000 sqm of factory buildings, RMB 50 million yuan for equipment, RMB 1.5 million yuan for environmental protection, RMB 2.5 million yuan for others, RMB 8 million yuan for preparation.

The foreign investment amount will be USD 5 million.

Economic profit
After the project finished, the added production capacity will be 5 million pcs with the output value of RMB 112.5 million yuan and profit of RMB 22.5 million yuan. The investment recovering period is 3.6 years.

Cooperation form
Joint venture, cooperative venture or other cooperation forms.