Project Name: Abolone Culture

Project Unit: Penglai Aqua -culture Company, Person in charge: Zhao Fengting

General Survey of the Project Unit:
Set up in 1984, this company covers an area of 195,000 square meters, with a building area of 48,000 square meters. There are 520 workers and staff members including 40 technicians. There are a breeding, dried scallop, lefteye flounder, abolone, shrimps and spanish mackerel are sold well in Japan, America, Hongkong and Taiwan etc. The sale income in 1993 is RMB 32 million yuan, profit is RMB 4.2 million yuan.

Content of the Project:
To set up a 4,000 square meters of abolone breeding raising room and 12,000 square meters of abolone culture room, to develop 50 mu of sea culture area for abolone. After the project finished, it can raise 8 million pcs of abolone breedings yearly, 100 ton of abolone for two years. The products will be sold in both domestic and foreign markets.

Supply of raw materials, fuel and power:
Raw materials, fuel and power can be supplied well in China.

Market calculation:
(1). Breeding market:
In China, the abolone market is just beginning to develop which can not meet the needs of production. The price of 2cm abolone breeding is about RMB 2 yuan.
(2). Abolone market:
Abolone belongs to high grade sea products which is short of demand very much in both foreign and domestic market.

The total investment is RMB 30.88 million yuan. The Chinese party will invest in form of factory building, land and part of the equipment, the foreign party may invest in form of cash or key equipments.

Economic benefit:
After the project finished, the annual output value may be USD 5.1667 million, profit USD 2.075 million. The investment recovery period is 2.5 years.

Cooperation form:
Joint venture