¡¡¡¡Introduction:ª¥
¡¡¡¡1. Unit: Hunan Jinjian Cereals Co. Ltd is the first listed company of the grain system (stock code: 600127), the good foodstuff industrial enterprise in the whole country and the state model base of best quality rice in rice engineering. It has total assets of 2.3 billion yuan and net assets of 1.1 billion yuan. The company deals with foodstuff (dairy products), medicines, urban basic construction, real estate, restaurant and drink, and planting. Its main products are ¡°Jinjian¡± brand fine rice series, special flour, noodle, cooking oil, dairy products and ¡°Small Basket¡± brand fresh wet rice noodles. Their manufacturing equipments are imported from the U.S., Germany, Japan, Italy and Switzerland. The main products are awarded the certificate of green food by China Green Food Management Center. It has passed the certification of ISO9001, 2000. There are seven business departments and 12 subsidiaries in the company. It has the staff members of 2211, including 672 with university degree and 50 with Master degree and senior technical titles. There are post-doctorate research workstation and provincial technology center, undertaking many key problem research and development projects during the Ninth Five-year Plan and Tenth Five-year Plan period. The 3 inventions of fresh snack rice noodle with the early rice, the manufacturing method of fresh snack rice noodle and the blood-building oral liquid and its method have been given the state patent.ª¥
¡¡¡¡2. Content:ª¥
¡¡¡¡(1). Scale: Its production scale and its series products will be extended annually from 100 million packets to 1 billion packets during 2004-2007, including 600 million packets of fresh noodles and 400 million packets of dry noodles. A new production base for 800 million sets of soup condiments will be built ª¥
¡¡¡¡(2) Schedule: The total investment is 505.22 million yuan, of which 187.80 million yuan is planned in 2004 for the newly-increased annual capability of 300 million packets, 100.56 million yuan in 2005 for the newly-increased annual capability of 240 million packets, and build a new production base of 800 million sets of soup condiments, 164.48 million yuan in 2006 for the newly-increased annual capability of 360 million packets. ª¥
(3)Cooperation: Contractual joint venture, share-holdingª¤
¡¡¡¡Market:ª¥
¡¡¡¡1.Policy: This project, a comprehensive deep-processing one of agricultural products and industrial one of foodstuff and a labor intensive industry, conforms to the state industrial policy and line development plan and is specially supported and developed by the state.ª¥
¡¡¡¡2.Demand: According to the statistic data of 29 snack noodles enterprises by the state snack foodstuff association, the sales volume of snack noodles is 32.5 billion packets in 2002 and 42.2 billion packets in 2003, of which 7.8 billion packets are Master Kang brand noodles and 7.2 billion packets are noodles made by three groups of Hualong. 123 production lines were newly set up in 2003 and their production and sales volume increase 30% more than that in 2002. The sales volume of snack foodstuff in the world market will grow at an increasing speed of 10%-15% per year. It has the advantage of making the stomach full but not fat, which can't be compared by other noodles and conforms to the requirement of beauty and health by people, especially the middle aged and young people. When people are bored with the snack noodles, they need a new kind of product instead.The snack rice noodles taste well and its market demand is growing up rapidly year by year.
¡¡¡¡3.Competition and price: The snack rice noodle enterprises in our country are mainly Guangxi Xiuhe company and Guangdong ChunXiao company. Their product is dry snack rice noodle. The snack fresh rice noodle has hi-tech content with the soleintellectual right and it is a banner product of the company. The end price of the dry snack rice noodle, equivalent to that of snack and snack noodle, will surely find a market competition superiority in the noodle industry. ª¥
¡¡¡¡4.Market Location: The present sales volume of dry rice noodle is about one billion yuan, mainly in the central south area such as Hunan, Hubei, Guangdong provinces and Guangxi autonomous region and in the southwest area such as Yunnan and Guizhou provinces, occupying a big portion in the country. Its production is mainly concentrated in Guangdong, Guangxi, Yunnan and Guizhou. In fact there's no snack dry rice noodle production line in Hubei and Hunan provinces. The snack rice noodle produced in our company is mainly sold in Hunan and Hubei provinces and may extend to the neighboring provinces. The population in its sales region is about 150-200 million people. Its consumption volume is estimated to be 0.9-1.2 billion packets in the same proportion. ª¥
¡¡¡¡5.Marketing strategy: The target market is in Hunan and Hubei provinces and then extends to Shenzhen and Guangzhou and gradually to the whole country.ª¤
¡¡¡¡Raw Materials:ª¥
¡¡¡¡1.Early-ripe rice. The early-ripe rice is the main material of snack rice noodle with very few auxiliary material. Hunan province, a big grain-producing province in China, has the annual output of grain about over 28 billion kg, of which 45% are the early-ripe rice. Changde city is the main production area of the rice in Hunan province. It can be purchased nearby at any time. ª¥
¡¡¡¡2.Water supply. The newly-increased water demand is 5880 £e/d and it can be met by the present water supply system. ª¥
¡¡¡¡3.Power supply: ª¥
¡¡¡¡1800KVA are needed in the production base for this engineering and two generators of 1000 KVA and their corresponding low-voltage power distribution chamber are planned to increase. The transformer capacity in the transformer substation of Jinjian grain industrial city is 2 ¡Á35000KVA and it can meet the power requirement of the engineering.
¡¡¡¡Project Site:ª¥
¡¡¡¡Alternative one: Jinjian Grain Industry City. It is the production base of Hunan Jinjian Cereals Co. Ltd for processing fine rice, the early rice and by-products. The site is about 1.4Km away from Deshan railway station on Changsha-Shimen Railway, only 0.6Km away from Changsha-Changde expressway and national highway 319, connecting with the highway network of China, about 1.5 Km away from Desh an wharf where one can get to Chongqing and Shanghai by way of Yuanjiang river, Dongting Lake and Yangtze river. So, the project site possesses advantageous transportation condition to import raw material and export finished products. ª¤
¡¡¡¡Conditions:ª¥
¡¡¡¡1.Finance: The company has a good financial state and it is easy to get the commercial loan.ª¥
¡¡¡¡2. 90%of 9 billion Kg grain keeping in stock for a long time in Hunan are the early rice. So, it is one of the main problems to urgently solve in agricultural industrialization. ª¥
¡¡¡¡3.Talent: Since the founding of Jinjian Hi-tech Foodstuff Co. Ltd in 1999, a batch of scientific talents, such as doctors, masters and senior engineers gather here to engage in the key problem research and development during the Ninth Five Year Plan and the Tenth Five Year Plan. ª¥
¡¡¡¡4.Technology. The first large-scale production line to produce the snack fresh rice noodle was set up in May, 2001. There are two patents and the other two patents are being applied for ratification. The snack fresh rice noodles with quality guarantee period of 6 months can be manufactured with the self-developed production technology and equipments by adopting the most advanced freshness-keeping technology. ª¤
¡¡¡¡Preferential Policy:ª¥
¡¡¡¡1.Free regular charge. The administrative charges are exempted during its construction and operation.ª¥
¡¡¡¡2.Income tax is returned. In addition to enjoying the tax preferential policy stipulated by the state, the enterprise's income tax levied by the taxation department annually will be returned to the enterprise by the city finance authority in the next year within 5 years since the project is put into production. ª¤
¡¡¡¡Cost and Return Period :ª¥
¡¡¡¡The total investment in the engineering is 505.23 million yuan, including 452.84 million yuan for construction and 53.39 million yuan for floating fund. After the project is put into operation, the normal annual sales income of 1.20 billion yuan (not including the taxes), annual tax 172.78 million yuan and annual profit 105.56 million yuan can be achieved with static investment return period being 7.34 years (including construction period 3 years) and the internal benefit rate being 25.94% Published by:Hunan Jinjian Cereals Industry Co. Ltdª¥
¡¡¡¡Tel: 0086736-7308608 Fax:0086736-7308666ª¥
¡¡¡¡E-mail:jinjian@600127.cnª¥
¡¡¡¡Website: www.gaeagem.com
