A. Shenyang Zhongnong Agricultural Science & Technology Showing Garden I. Introduction of the Cooperative Project 1-1 Project Overview: Shenyang Zhongnong Agricultural Science & Technology Showing Garden is mainly started by Shenyang Jiahao Industry Co., Ltd., and jointly invested by China Agricultural Production Resources Group and China Agricultural Production Resources Shenyang Branch. It will directly serve Zhongnong Northeastern Agricultural Resources Trade Center (market) to be established, aims to develop, promote and extend modern high-tech agricultural technology, and meanwhile produce and sell high-tech agricultural products and foodstuff products. The garden is located in Shenyang New and High Agricultural Development Zone, with st a planned area of 1000 mu. The 1 phase project will occupy 200 mu. Within the garden, Agricultural Plantation Greenhouse will be set to show and promote new species, Animal Husbandry Base to domesticate and breed introduced stocks, and Agricultural Products & Foodstuff Deep-processing Base and large-scale Foodstuff Fresh-keeping and Physical distribution Center will be set. Meanwhile, R & D and training agencies, and base for development and production of biological pesticide, etc. will also be established. 1-2 Expected Total Investment and Cooperative Terms of the Chinese Side: Total investment of the 5 separate projects of Zhongnong Agricultural Science & Technology Showing Garden is expected to be 20 million USD. Chinese side will provide land, workshops, houses, various supporting facilities of the garden, and technologies of the above items. Foreign side is expected to provide capital or technology. The ratio of investment can be negotiated. 1-3 Technology and facilities to be introduced: Intend to introduce technology and complete facilities for deep processing cereal, vegetables, and fruits. Priority will be given to technological achievements “filling the gap” of the nation, and to industrial production. II. Location of The Project 2-1 Natural Environment of The Site of the Project Project site of Zhongnong Agricultural Science & Technology Showing Garden is selected in Shenyang New and High Agricultural Development Zone. The Zone is approved for setting by Shenyang People’s Municipal government. It is 12 KM from the urban area, adjacent to the well-known Huishan Scenic Spot, and only 20 minutes’ drive to Shenyang Taoxian Airport. Shenyang-Harbin expressway crosses it. The total area is 150 square kilometers. Besides, it enjoys excellent ecological environment. 2-2 Project Location to Be Set and The Area Needed st To complete project, a land of 700 to 1000 mu will be needed. The 1 phase will occupy 200 mu, and has been obtained by Shenyang Jiahao Industry Co., Ltd. through land transferring. 2-3 Transportation Terms The project is situated in Shenyang New and High Agricultural Development Zone, with very convenient transportation condition. Shenyang Circular City Expressway is in the south of it, and directs to Shenyang-Harbin, Shenyang-Dalian expressway. Besides, it is only 20 minutes’ drive to Shenyang Taoxian Airport. 2-4 Communication Since this project is covered by China telecommunication network in Shenyang, telecommunication is in good condition here. 2-5 Research and Technology Strength of The Project Site Shenyang is the political, economic and R & D center of northeastern China. Shenyang Agricultural University, Liaoning Provincial Academy of Agriculture, and Shenyang Academy of Agriculture are located in it. Besides, there are several agricultural research institutes here, with rich human resources in science and technology. For instance, Shenyang Agricultural University has undertaken many agricultural research projects of the nation and made great achievements. III. Project Content 3-1 Contents of the Showing Garden Project to Be Implemented 1) Greenhouse Plantation Project: Plan to set new-style greenhouse for plantation of pollution-free agricultural products and introduction of new species. 2) Processing and production of agricultural products and foodstuffs. 3) Construction of Animal Husbandry Base to domesticate and breed introduced stocks. 4) Product Physical distribution Center. 5) R & D and training agencies, and development and production of biological pesticide. 3-2 Construction Explanation, Scale and Cycle 1) Build 15000-25000 square meters of greenhouse, mainly for planting pollution-free vegetables and leading surrounding agricultural households for production, to provide raw materials for agricultural product processing enterprises in the garden. 2) Construction of Animal Husbandry Base will be mainly engaged in domesticating and breeding introduced stocks. 3) In processing and producing agricultural products and foodstuffs, natural pollution-free vegetable and fruit products will be selected to extract vitamin, microelements, etc. for concentration, in order to produce health food. 4) Physical distribution Center will be mainly for direct consumption groups. China will construct affluent society in the next 10 years; fast consumption rhythm will make physical distribution industry the necessity of market. This garden unifies development, production and processing, and will lead market advantage with its product advantage. So physical distribution directly facing consumption groups and customers will increase market occupation rate of the product and enhance product impact. 5) R & D and training agencies will attract agricultural research staffs into the garden for research and transferring new technology into industrialization, for the garden to be able to upgrade its products and for sustainable development. The above projects will be completed in 2 years, and will need an investment of 20 million USD. 3-3 Resources and Raw Materials During the construction process, raw materials will all be supplied domestically. After completion, the projects will mainly use resources provided by agricultural households or production agencies in the garden or its surrounding areas. In all, the process of obtaining the project will be that of agricultural production and processing, so there will be many supplying agencies. 3-4 Environment Protection Measures The above projects will not emit wastes in the implementing or production process, so there is no pollution problem. 3-5 Technology and Standard to Be Adopted The project will adopt various technological indices and standards of the PRC enacted after 2002 for agricultural products. IV. Market Forecast 4-1 Status of The Project in Domestic and Foreign Market There are fewer large-scale agricultural enterprises up to now in China. And most of the enterprises are of household level. To confront competition of foreign agriculture after China’s entrance of WTO, development of facility agriculture is becoming a trend; so the garden to be constructed will develop intoin large scale. After completion, it will show strong advantage in product and competition. 4-2 Market Occupation Rate of Projects and Development Forecast of The Project After completion, the dominant products include: 1. Pollution-free agricultural products. 2. Health products processed with pollution-free agricultural products. 3. Excellent breeder products 4. Biological pesticide and fertilizers, etc. Since Shenyang is in the center of northeastern city group, and is the central city in politics, economy and culture in northeastern China, the project will take advantage of its geographical location to occupy domestic market. Especially, the project will take advantage of intangible assets of China Agricultural Production Resources Group. V. Benefit Evaluation 5-1 Investment Structure A) Investment for comprehensive office building and so on will be 2 million USD. B) Investment for greenhouse will be 2.3 million USD. C) Investment for agricultural product processing and production line of health food will be 4 million USD. D) Investment for Animal husbandry base will be 1.2 million USD. E) Investment for producing fresh keeping & physical distribution center will be 1.6 million USD. F) Investment for R & D and training agency will be 1.5 million USD. Recovery period: Total investment of the project: 20 million USD Net profit of the beginning 7 years:24.5534 million USD-20 million USD Recovery period will be about 6.1 years. th Recovery rate will be over 20% since the 5 year. VI. Overview of Chinese Enterprise 6-1 Name of The Enterprise: China Agricultural Production Resources Group, Shenyang Branch Ownership: founded in 1954, collectively owned Current employees: 200, 197 are with medium and senior technology titles Business scope: fertilizer, pesticide, membrane, seeds, production and processing of agricultural products, agricultural machine The company is a regional subsidiary of China Agricultural Production Resources Group in northeastern China, and its previous unit is General National Supplying Agency, Northeastern Fertilizer First-grade Station. Its responsibility is to supply fertilizer for northeastern area. Years of operation have helped it develop the sales network of agricultural production resources and products from central level to province, city, county and village level. Intangible assets of the Group were assessed to be 10 billion yuan RMB in 2001, and it has invested in a company on list. 6-2 Shenyang Jiahao Industry Co., Ltd. Ownership: private-owned Total assets: 60 million yuan RMB The company is invested by individuals and has successfully invested a biological pharmacy company in Jinzhou with 13 million yuan of stock equity. Besides, it also invested in real estate and other projects at about 50 million Yuan. Contact: Wang Xichun, Shenyang Jiahao Industry Co., Ltd. 024-86546526, 13066776632, Xing Dongning, Business Inviting Bureau, Shenyang New and High Agricultural Development Zone 024-88043008, 13079285158,