《商业计划书、可行性报告》Beijing Samvon Andesite CoLtd Business Plan8.doc

Beijing Samvon Andesite Co., Ltd.Business PlanComplied by Beijing Fenghua Tianbu Investment Consulting Ltd.June 2006Beijing Samvon Andesite Co., Ltd.Business PlanS/N: 2006 No.（ ）Confidential PromiseThis business plan that involves the commercial secret of Beijing Samvon Andesite Co., Ltd. is open to the investors who are intent to invest. Therefore, the investing agencies who have received our business plan should promise:1、To take good care of the business plan; never reveal the related commercial secret to any third party without the permit of Beijing Samvon Andesite Co., Ltd.; and it is strictly prohibited for any other business purpose except this project.2、To be responsible for the damage caused by the violation of the Promise on the Beijing Samvon Andesite Co., Ltd. Stamp of Acceptance Agency:Signature of Project Manage:Acceptance Date： Business plan Name of Project: Exploitation and Production of Natural AndesiteProject Organization: Beijing Samvon Andesite Co., Ltd.Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, ChinaTel: 861082370802 82370803Fax: 861082372588E-mail: cnsamvonProject Secretary: Zhao Wei, Gao FeiBeijing Samvon Andesite Co., Ltd.June 2006     ContentSummary .1Part I Basic Information of Company . 6Part II Managers of Company.9Part III Product .13Part IV Research and Development .21Part V Industry and Market .26Part VI Marketing Strategy.35Part VII Manufacture .37Part VIII Management .40Part IX Financing.44Part X Financial Plan.47Part XI Risk Control .52Part XII Project Schedule .55Part XIII Others .56IV SummaryPart I Basic Information of CompanyName: Beijing Samvon Andesite Co., Ltd. (hereinafter referred to as “the company”)Registration No.:1101082885610Established on 25th, Aug 2005Registered Address: Zhongguancun Science & Technology Park, Haidian District, Beijing, ChinaRegistered Capital: 500,000 CNYShareholders and allocation of shares: Wang Xingguo 44; Li Jianfeng 44; Yan Chongguang 12Main Business: Research, exploitation, design, production and marketing of natural andestie products.Headquarters Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, ChinaWorkshop Address: Inside of Jilin Samvon Industry Co., ltd., No.1 Samvon Cave, Longjing Town, Jilin ProvincePart II Main Directors1. Chairman of the BoardWang Xingguo, male, 58, was born in Hailun, Heilongjiang Province, engaged in the enterprise management for 19 years.Experience: From Sep,1968 to May,1972, he served as secretary for political department of the fourth division of Railway Army; From May, 1972 to July, 1999, served as secretary for general political department, secretary in charge of discipline inspection in Production Management Bureau Head Politics Ministry, commissar in Beijing Jingouhe Official Rest Home Head Politics ministry; July, 1999 until now, he is the board chairman of Jilin Samvon Industry Co., Ltd. and Beijing Samvon Andesite Co., Ltd.Outstanding Achievement: He committed himself to the establishment of Tiancheng Corp Group and Jilin Samvon Industry Co., Ltd.; as he took the post of secretary in charge of discipline inspection in Production Management Bureau Head Politics ministry, he had taken charge of the board and as SEC for party committee many times and had done very good job. 2. General ManagerYan Chongguang, Male, 44, was born in Wei town, Hebei province, engaged in the enterprise management for 18 years.Experience: From Sep.1978 to Nov. 1989, he served as instructor for the auto company of Qingzang army and as secretary for political department of back office; From Nov., 1989 to May, 1999, project manager for Asia and Pacific Construction Joint-stock Company, and general manager for Donghui Real Estate Company; From May 1999 to Aug. 2005, assistant of general manager for China Petrol North China Industry Co., Ltd.; Aug. 2005 until now, general manger for Beijing Samvon Andesite Co., Ltd.Outstanding Achievements: He created and developed the theory of mental control of China modern enterprise management theory, based on the theory and methods of western modern management; involved in many companies set-up, such as Donghui Real Estate Co., Ltd., China Petrol North China Industry Co., Ltd., Henan PetrolChina Speedway Oil Products Company Limited and East Resource Co., Ltd., and completed the start-up projects of all those companies.Part III Description of ProductThe stone the company exploits and manufactures is a kind of rare natural andesite plagioclase of strong acid-resistance, alkali resistance, hydrofluoric acid resistance, high temperature resistance, abrasion resistance, impact resistance, osmosis-resistance and radiation protection, which is the appointed anticorrosive material for China Military Industry as well as the necessary anticorrosive material for cold-rolling thin slab pickling unit, chemical industry acid washing tower, vitriol concentrator and electromechanical pickling tank; which can be used for building facing due to its compact structure, dirt non-stick, corrosion resistance, break resistance, strong reliability, moderate gray and elegance.Part IV Research and DevelopmentConstruction Research Institute China Metallurgy Group and WISDRI Engineering & Research Incorporation Limited were entrusted to make research and tests on our product for a long time. Now it has been successfully applied in the vitriol concentrator of Jilin Chemical Plant and the production line for cold-rolling sheets of Baoshan Steel, Wuhan Steel, and Anshan Steel. At present, further research is made on the manufacture and application scopes of high precision irregular products so as to be applied in the petrol acid washing tower and such equipments. Engineering Research Institute CAS was entrusted to make a test on the product, indicating that besides graphite, andesite plagioclase is also hydrofluoric acid resistant while granite, aragonite, acid-proof ceram, casting stone, basalt and other kinds of andesite dont have such speciality. China Construction Scientific Research Institute and Stone Material Quality Inspection and Test Center of China Building Material Industry were entrusted to make a test on the application of the product in the building facing, finding out its main properties are superior to marble, granite, limestone and sandstone, and its color, grey, is sole in the international stone market. Part V Trade and MarketThe company owns the exclusive right for the exploitation of Maanshan andesite plagioclase mine in Samvon cave, Longjing, Jilin province. The mine is the only one in the world while another andesite mine of similar lithofacies in German is owned by German MANZ Company. Now both mines can meet only 20% of the demand for andesite that such industries as war industry, metallurgy, nuclear power, non-ferrous industry、petroleum, printing and dyeing, building, decoration need 50,000 m3 andesite per year.Forecast of Marketing Sales of the Company as Following:YearOutput（M3）Sales proceeds（10 thousand CNY）Profit before tax (10 thousand CNY)Construction Period10.000.000.00Operation Period230005520.00-181.18350009200.001645.424600011040.002609.315600011040.003352.936750013800.004780.71Part VI Marketing StrategyStart with the establishment of sales network in China, Asia, then America, and Europe, Africa; Firstly apply it in the cold-rolling pickling line and building dressing, then spread it to the war industry, chemical industry, nuclear power, petroleum, mechanics and printing and dyeing industry all over the world; Build long business relationship with big customers in the world.Part VII Manufacture Owing the andesite mine, the company can manufacture products according to the customers order. The production is equipped with the internationally advanced Italy diamond wire sawing machine and multistrand diamond wire sawing machine, Computer Numerical Control Machining Center (CNC), automatic slab production line and automatic sheet production line.Taking the international anti-corrosion standard for reference, the company complies the enterprise standard Q/HD APS0012006 Natural Anticorrosive Stone Andesite and Q/HD APS0022006 Natural Andesite Building Slab, which are put forward and set down for the first time in the world and now are being applied as the Industrial Standard in China Anti-corrosion Industry and Stone Material Industry. Part VIII Management The company is divided into five departments and one center, such as administration department, sales department, financing department, workshop, engineering department and research center. On the basis of the principles of high efficiency, intelligence and capability, logic and agility, the company provides staff with favourable salary, good working and study environment, and awards sales and technology persons with promised rewards, and encourages them to be active and aggressive.Part IX FinancingTotal investment 51,489,900 CNY, achieved 41,489,900 CNY，still need 10000000 CNY, that is , 10 financing agencies, 1,000,000 CNY each agency, totally 10000000 CNY. The company puts the investment mainly on the purchase of Italy stone exploitation machines, as well as spare parts and consumables (2,000,000 CNY) and some processing machines, as well as spare parts and consumables (8,000,000 CNY). The company mortgages stock or mining right to the investor who will get not less than 20% fix return per year. As along as two-year expiration, the company will repay investors all their investment and fix returns while the mortgage is released. The company promises to confer investors with the companys stock equivalent to half the amount of their investment if the company has successfully come into the market of Hongkong or South korea.The company mortgages the mining right to get the usufruct of the machines by financing leasehold. The mortgage will not be released until expiration.Part X Main Economic Data and Evaluation StandardsOrderProjectUnitAmountEconomic data1Total investment10 thousand5148.992Investment on fixed assets10 thousand1609.773Operating income（annual average）10 thousand16100.004Sales tax and annexation (annual average10 thousand123.875Total expenses（annual average）10 thousand8782.796Total profit（annual average）10 thousand5954.657Income tax（annual average）10 thousand1965.038Profit after tax（annual average）10 thousand3989.61Financial target1Rate of profit on sales36.992Rate of profit on investment115.653Financial internal rate of return 81.534Financial net present value10 thousand30642.525Payback period of investmentYear2.796Yield rate of capital fund100.007Rate on prepaid interest31.638Rate on prepaid debt7.46Part XI Risk ControlInternationally the application technology of natural stone products has grown mature. Furthermore, the company has brought in the advanced CNC and technology for production and design. The company owns exclusive right for exploitation of andesite mine. So there is no risk in technology and management. Risk hardly occurs until a new kind of anticorrosive material comes into the market and overtops the previous one in the property and reliability so that the previous one has to face the reality of being substituted. Since building facing material is a newly developed material, what challenges us is just how to spread it widely in the international market. The company is of high technology enterprise in Beijing and the product is of the one our country encourages to develop, moreover, the company enjoys tax privileges of being free of income tax for three years and turning in half income tax for another three years in China, so there is no risk in China policy. Risk is controlled by the way of keeping our technology and products design internationally advanced, carving out new fields for its application and deepening its spread in the market. Part XII Others The company holds 85% stock of Jilin Samvon Industry Company Limited, which signed on 28th, September 2003 with Yanbian Korea Self-government the assignment of a contract of the assets of Jilin Samvon Building Plant and so owned the whole assets of former Jilin Samvon Building Plant (State-owned plant 9239) as well as the exclusive right for exploitation of andesite mine. The 191 accepted employees and 239 retired workers had been properly arranged by the company according to Arrangement of Former State-owned Enterprise Staff in Jilin Province.Part I Basic Information of Company1. Basic Information Structure of Company and Its CapitalCompany Name: Beijjing Samvon Andesite Co., Ltd.Registration No.: 1101082885610Established on 25th, August 2005Registered Capital: 500,000CNYCapital already owned: 16 million CNY cash has been already put into the company and Jilin Samvon Industry Co., Ltd. by Wang Xingguo, Li Jianfeng and Yan Chongguang; Wang Xingguo, Li Jianfeng and Wang Jiulin transferred 85% stock of Jilin Samvon Industry Company Limited to the company without any repay after the company established. Registered Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, ChinaNature of Company: Limited company, without any state capital or foreign capital Present Condition of Shareholders:ShareholderInvestmentamountCapital formProportion of sharesContactTelWang Xingguo22Cash44Wang Xingguo01082370803Li Jianfeng22Cash44Li Jianfeng01082370803Yan Chongguang6Cash12Yan Chongguang01082370803Certificate for the Cognizance of High and New Tech Enterprise in Beijing, Unified Code 0511008A13745Standing director of China Industry Anticorrosive Technology Association (CIATA)Standing director of China Stone Industry Association DepartmentsBoard of directors General Manager of China RegionRe