Our current production capability of fried peanuts does not meet the increasing demand of the international market, so our company is launching a new peanut plant project, with joint investment, in LAIXI, Shandong Prov.of China, if you have interest in the joint venture, please refer to the following Feasibility Study Report and feed back for further details.

FEASIBILITY STUDY REPORT

OF

5000T/YEAR FRIED PEANUT PRODUCTION PROJECT

1. NAME OF PROJECT

5000T/YEAR FRIED PEANUT PRODUCTION.

2. OUTLINE OF THE UNIT

L.I&T CO.,LTD. IS AMONG THE LEADING COMPANIES IN EXPORTING AGRICULTURAL PRODUCTS IN SHANDONG PROVINCE OF CHINA. THE ASSOCIATE PEANUT PROCESSING FACTORIES HAVE AN ANNUAL PRODUCTION ABILITY OF GRADED PEANUT 12,000MTS, BLANCHED PEANUT KERNELS 3,000MTS, FRIED PEANUT KERNELS 1,000MTS.THE PEANUT PRODUCTS ARE EXPORTED TO EUROPE, MIDDLE-EAST, SOUTH AMERICA, SOUTH EAST ASIA AND AFRICA. THE QUALITY IS VERY GOOD AND ABOVE ALL PRAISE.

3. THE BASES AND PURPOSE OF THE PROJECT

LAIXI IS A PEANUT PLANTING BASE. WITH EXISTING CONDITIONS THERE WE CAN SAVE INVESTMENT AND SHORTEN TIME LIMIT TO SET UP A PEANUT PRODUCTION SERIES PROJECT. WE HOLD THE SUPERIORITY OF ABUNDANCE OF MATERIAL RESOURCES AND THE SKILLFUL TECHNICAL STAFF.

4. COOPERATIVE FORM

JOINT-VENTURE.

5. ESTIMATION OF INVESTMENT

THE TOTAL INVESTMENT IS 1,500,000 USD, INCLUDING THE FIXED ASSET OF 1,000,000 USD AND FLOATING CAPITAL 500,000 USD. OUR INVESTMENT IS TO BE 600,000USD, ACCOUNTING FOR 60%, FOREIGN INVESTMENT IS TO BE 400,000 USD, ACCOUNT FOR 40%. PARTICULAR INVESTMENT PERCENTAGE CAN BE NEGOTIABLE. THE FLOATING CAPITAL OF 500,000 USD IS SETTLED BY BORROWING FROM BANK BURDENED BY TWO JOINT SIDES. THE PROJECTS COVER AN AREA OF 4,000SQM. 

6. EQUIPMENTS, TECHNIQUE AND CRAFT

THE MAIN ENGINES ARE TO BE IMPORTED FROM ABROAD AND COMPLETE SET OF EQUIPMENTS DOMESTICALLY. THE WHOLE PROCESSING OF PRODUCTION IS TO BE L CONTROLLED BY COMPUTER. IT MEETS THE INTERNATIONAL STANDARD OF PROCESSING.

FRIED PEANUTS PROCESSING:

RAW MATERIAL ------ INITIAL GRADING ------ BLANCHED ------- ROASTED ----- FLAVORING ------ METICULOUS GRADE ------- PACKING ------ INSPECT ------- STORING.

7. MARKETING PREDICTION AND SALES DIRECTIONS

ACCORDING TO THE ANALYSIS ON INTERNATIONAL MARKET, PEANUT PRODUCTIONS TEND TO BE CONSUMED AS FAST-FOOD AND CONVENIENT FOOD. BECAUSE OF THE QUALITY OF CONVENIENCE AND BEING EATEN INSTANTLY ,PEANUT PRODUCTS ESPECIALLY FRIED PEANUTS ARE MUCH MORE FAVORABLE TO ALL PEOPLE AND IT IS MORE AND MORE POPULAR ON THE INTERNATIONAL MARKET. THEY ARE DEMANDED IN HUGE QUANTITY IN INTERNATIONAL MARKET. 

LAIXI IS ONE OF KEY GRAIN PLANTING REGIONS, PEANUTS PLANTING LANDS ALWAYS AMOUNT TO APPROXIMATELY 1,000,000 MU, THE ANNUAL YIELD IS 400,000T AND THE QUALITY IS FINE AND VERY NUTRITIOUS. IT REACHES THE EXPORTING STANDARD. THE FUELS NEEDED BY THE EQUIPMENT ARE PETROL, FIELD GAS AND COAL. CHARACTERIZED BY LOW CONSUMPTION AND BASICALLY NO POLLUTION THE EQUIPMENT IS IDEAL ENERGY-SAVING FACILITIES AT PRESENT. THE ELECTRIC POWER IS ADEQUATE IN LAIXI. THE PROJECT WILL HAVE ENOUGH ELECTRIC POWER SUPPLY.

LAIXI IS SITUATED IN QINGDAO SUBURB AND IS IN THE MID SHANDONG PENINSULA THE LARGEST SHANDONG PEANUT ORIGIN PLACE IN CHINA, WHILE QINGDAO IS THE LARGEST SEA PORT WHICH HANDLES THE MOST STANDARD CONTAINERS IN CHINA. LAIXI HAS THE UNIQUE ADVANTAGE IN COMMUNICATION AND TRANSPORTATION.

IT IS OF NON-POLLUTION PROJECT WITH NO THREE WASTES.

OUR EVALUATION INDICATES THAT THE PROFIT AND LOSE WOULD BE IN BALANCE AS LONG AS THE OUTPUT REACHES 43.3% OF THE DESIGNED CAPABILITY(2,165T/YEAR).

THE PROJECT IS BASED ON THE ADVANTAGE OF ABUNDANT MATERIALS, LARGE DEMAND MARKET AND THE ADVANCED TECHNIQUE, AND IT BELONGS TO THE DEEP PROCESSING INDUSTRY, WITH NO POLLUTION, CHARACTERIZED BY HIGH ADDITIONAL VALUE PRODUCTIONS, SHORT PAYBACK-TERM AND SMALL RISK. ABOVE ALL, IF THIS PROJECT COME INTO OPERATION, IT WILL BRING LOTS OF ADVANTAGE TO THE BOTH SIDES OF THE JOINT-VENTURE.

(UNIT: THOUSAND USD)