Name of the enterprise: Daqing Yulong Plastic Soft Packaging Co., Ltd. Heilongjiang China.

Brief introduction: Yulong Co., Ltd is a joint venture company with Taiwan Kun Yu machinery Co., Ltd. with registered capital of RMB 12,495,000 Yuan, among which Taiwan KunYu machinery Co., Ltd. shares 40 percent of the total stock, which is RMB 4,998,000 Yuan. By now YuLong company owes a property of RMB 29,887,000 Yuan .The stuff and members are 87,37 of which have graduate from collage. The company is specialized in producing various kinds of plastic soft packaging bags. There have already been more than one thousand kind of products including the packaging bags of industry products, medical articles, food, milk products, pesticides, seeds and all kinds of daily necessities.

Main content of the cooperation item: The expanding production of the plastic packaging and its necessary accessories-LDPE. The production of compound printing ink, compound glue and the designing system of the grauring cylinder mfg.

The capacity of production will be 1,000 ton of plastic packaging bags. 2,000 ton of LDPE.100 ton of compound ink. 420 ton of compound glue. The designing system can provide services for all the plastic packaging factories(The graure cylinders is made in Dalian and Tianjin in the north east China by now).

Considering that our company has already a soft a soft packaging line and workshop facilities, we have good condition to set up another producing line which needs a total investment of RMB250,000,000 yuan. RMB150,000,000 yuan are needed to be invested from abroad. The sum of money will be used to buy an 8-collour printing machine, a compound plastic sticking machine, a plastic cutting machine and the bags making machines(Other necessary materials are planned separately).

The construction conditions for the item: The company is located at the beginning of Gaoxin road in Daqing high technology development zone. The No.25 Government road is adjacent to the company on the left, and the 301 national road on the right side. The company is easily found when you get into Daqing city.

The transportation is very convenient for the products transportation and customs to coms.

The main materials are polypropylene and polyethylene, which are most suitable for the deeply production of the oil and chemical industry of Daqing. Furthermore, most of the cruel material can be bought in locality. Daqing is an new and expanding industry city. The communication is connected by satellite net, which is running very quickly. There has been formed a complete set of water and power services. And the most important is that the government can provide free and favorable surroundings for the foreign investment items. Fro extant: the tax policy is that: The joint venture companies will be free from taxation for the first two years and remitted taxation three and a half year, then after. The enterprises will be acted on itself to run the businesses without any participating and interference.

Financial analysis: It will take one year for the item to make the trial production from putting into the money For that the company has already had many customs and a big market. Because the company has already mastered the technique completely, the trial production period may be shortened and the company can make benefit in the same time. If the production capacity reaches 1,000 ton of bags, the company will create a output value of RMB 50,000,000 yuan per year, the profit after taxation will be RMB 5,500,000 yuan. The payoff period is just 5 years.

The profit after taxation (1-5years)

Attached statement: The inside profit rate statement and cash flow rate statement.

Ways of cooperation: Investment by foreign merchants or joint venture.

Domestic cooperation: cooperate loan.

The business running conditions and market forecast:

The producing capacity of the item is among the three largest factories that produce soft plastic packaging bags in Heilongjiang province. The technology and facilities capacity have already been in the lead position in the province. Furthermore, the market of plastic soft packaging products is rising both in the country and abroad. Especially in China, the development of soft packaging is just in the beginning. The quantity of soft packaging bags is in creating progressively by 30 percent each year and the factories can only provide 17.9 percent of the total needs. In recent years, more and more businessmen approve and pay greater attention to the soft packaging. So the economic benefit of the soft packaging factories is considerable, and the neighbor countries such as Russia, which soft packaging industry develops quite slowly. The market has already been opened to the soft packaging of our country. The output value of ShangHai Zijiang Color printing factory is 2 billion per year The output value of Dalian ShengDao, NaNuo, DaLian Colour Printintg Co., Ltd. reached RMB 6.8 billion Yuan in 1996. LongHua Colour Printing Co., Ltd. imported the machines from South Korea 10 years ago whose average output value is RMB 1 billion yuan. Mudanjiang Color Printing factory imported machines from Japan in 1988. Its average output value is RMB 22,000,000 yuan.

In Daqing region alone, there are more than one thousand factories that need soft packaging bags. The quantity of the output of the six big milk plans is 52,000 tons which need 2.2 billion soft bags. The four big washing detergent plans need 80 billion bags with a total output value of 110,000 tons. And each year, there are more than 960 billion bags are needed by the pharmaceutical factory products, the agriculture seeds, the farm seeds, the farm chemicals, the cold drinks, the wines, the edible wild herbs, the lubricating oil and the soya-bean oil. The market capacity is very big. The people's consumption consciousness have changed with the life rhythm fastened The package goods are getting more and more popular. So the businessmen are willing to part with money to the products packaging. As a result, the price of the soft packaging goes up steadily. The market forecast and profit are considerable. The chemical resources in Daqing city are very abundant for soft packaging industry to utilize locally. At the same time the convenient condition can reduce the producing cost of the product and increasing the economic profit correspondingly. Considering the market capacity and development of the soft packaging. It is necessary to set up another production line to expand the production capacity and the scale. We should take the good opportunity to shorten the time and make profit as quickly as we can.

The company has already a soft packaging bags line with a production capacity of 1000 tons. The output value is 50,000,000 yuan. It only takes two years that we have gotten orders valued 50,000,000 yuan, among which order of RMB 30,000,000 yuan are ordered by Hong Kong eight minutes washing group co. Ltd. Because the company doesn't have the capacity to satisfies all the custom's needs, we can't under take the packages of the big customs such as LongDan milk industry co. Ltd, P&G, YiLi milk industry co. Ltd. Besides, At present, the abroad markets of the packaging bags are also very good.

The progress of the preparation: The proposal book and the practical report have been finished which were given an official and registered on 3(rd)Jan. 1996 by the economic and trade committee of China national, Heilongjiang province, Daqing city, the industry and commerce bureau and the management committee of the development zone.