Ⅰ.Project Background

Huinan is an agriculture county. The planting areas for corn can reach up to 400,000 Mu (26680 hectares) and the output of corn straw can be over 200,000 tons annually. At autumn and winter, plenty of corn straw is burned or piled at the edge of field, which causes environmental pollution and fire hazard, wastes many resources, and brings inconvenience to the next spring’s plough. According to the principle set forth at the Third Plenary Session of the Eleventh Central Committee of our Party,  the requirement of developing recycling economy and the policy of agriculture industrialization, as well as the fact of new country construction in the county, Huinan Kaidi Renewable Resources Development Company Ltd. will build a middle-size processing enterprise that based on the technologies of Jilin Provincial Institute of Biological Engineering and Technology and the investment of foreign capitals. The project will integrate the manufacture of straw biological granulated feed, granular fuel with research and development of corn straw resources.

II. Construction Scale and Production Plan

Construct a work line of granulated feed and a work line of granular fuel, with annual output 10,000 tons separately; build a R&D Center of corn straw. 3 years later, the project will start the investment of Phase Ⅱ.

III. Market Analysis and Economic Benefit Forecast

Economic Benefit: annual output of granulated feed 10,000 tons, annual output of granular fuel 10,000 tons, annual sales value: RMB 10,600,000 Yuan, annual profits: RMB 2,000,000 Yuan, annual tax: RMB 500,000 Yuan.

Social Benefit: increase corn growers’ income by RMB 60-80 Yuan per mu, cut down the environmental pollution and resources waste, realize resources recycling and sustainable development, offer 25 job opportunities.

IV. Total Project Investment and Financing Arrangement

Total investment: RMB 4.6 million Yuan, equipment investment: RMB 1.6 million Yuan, factory and place investment: RMB 1.5 million Yuan, working capital: RMB 1.5 million Yuan.

Financing Arrangement: self-financing capital: RMB 1.6 million Yuan, foreign investment: RMB 3 million Yuan.

V. Cooperation Ways

Joint venture and cooperation

VI. Foreign Investment and Constitution

Funds or material possessions

VII. Project Construction Venue

Xiangyang xiaoqu, Qingyang Town, Huinan County

VIII. Project Progress

Have purchased factory, field and part of equipment.

IX. Outline of Project Organizer

Huinan Kaidi Renewable Resources Development Company Ltd. registered on 24, November 2008 with registered capital RMB 300,000 Yuan. The company covers an area of 12,000㎡. The main business of the company is to develop, process and sell Renewable Resources such like crop straw. For a variety of reasons, the construction progress is a little slow. However, the project goes forward gradually and steadily. It is estimated that the project will be put into production by 2010.

X. Contact Methods:

Contact Person: Huangwen   13943561838

             GuoHeqing   13694417381

Tel: 0086-435-8792038

Fax: 0086-435-8792100