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2003-2004

Development and Resources--Investing in Beijing’s Industrial Sector

Projects Open to Foreign Investment

Beijing Economic CommissionBeijing Branch of China Council for Promotion

of International Trade

Preface Here is a collection of projects open to foreign investment, which

the industrial authority of Beijing made public for the first time in the year of 2003. Totaling 76 in number, they cover such fields as machine building, micro-electronic technology, automobile parts and components, bioengineering and new medicine, electronic products, electrical appliances, medical apparatus, chemicals, pharmaceutical and material transportation, and construction of industrial development areas.

Each of the projects are listed with an introduction to the planned amount of investment, intention for cooperation, and advantages and status of the enterprise concerned, as well as an analysis of the market situation, construction of the project itself, and anticipated economic benefit. This is expected to help would-be investors make final decision.

More details are available upon request. You are welcome to contact

them according to the following address.

Table on Introduction of InvestmentName Production line of helical spring, stabilizing bar, torsion bar

Sponsor Enterprise No.1 Spring Plant of Beijing Motor Industry Group

Construction Site Chang xindian, Liqiao Town, Shunyi District, Beijing

Total Investment USD7.5 millionInvestment With Fixed Assets USD7.5 million

Circulating Funds

Intentions

According to the principle of mutual benefit, the investor should have strong

economic strength, relevant experiences and techniques on the production of

suspension system, and export channels preferred.

A joint venture can be set up with 80% foreign shares and 20% domestic shares both

in form of cash or equipment; or a cooperation company can be established in the

form of technological cooperation.

Potentials for

Development

At present, Beijing Modern Automobile Production Project has been put into

production approved by the state. However, its suspension system is a blank of

motor industry in Beijing. With the development of automobile industry in China,

this project has a promising market perspective.

This enterprise is a subsidiary special spring production plant of Beijing Motor

Group, and has strong technological bases. At present, the plant covers an area of

80000m2, and 20000m2 is for this project. The workshop is around 6000m2. The

water supply ability in the plant is 40m3/h, and a water recycle facility has been

established and can reach the environment protection requirements.

Product Title

Newly

Increased

Output Volume

Functions

1 Helical spring 100 000 000

With a simple structure and high specific

energy capacity, it is a common kind of

spring component among the modern

suspension systems, which is helpful to

enhance the operational stability, and

absorb the shocks.

2 Stabilizing bar 600 000

It is broadly used in automobiles to

remedy the deficiency of rigidity of the

suspension so as to guarantee the

horizontal stability.

3 Torsion bar 400 000 It has greater power stored in unit weight

with less mass and good arrangement, It

can save spring steel materials, decrease

the weight of the non-hanging section,

and help to enhance the smoothness of

driving and is convenient in maintenance.

It can be broadly used on off-road

vehicles and automobiles.

Market

At present, the output of cars has increased year by year. In the year of 2002, the car

output of our country broke through one million for the first time. The market status

of car made-in-China has been rapidly enhanced, and ranked the 6th or 7th in the

international market. It is predicted that by the year of 2003, the economic increase

rate will reach 8%, and the citizen need for cars will keep high increase trends. In the

year of 2003, the demand in private cars will continue to increase, and its portion in

the total demand will increase by 5 or 6 percentage points. Such a trend will remain

unchanged in the coming years. As the auxiliary equipments of cars, the market

demand of the automotive suspension systems will make simultaneous increase with

the high-speed increase of car consumption.

Techniques

To establish advanced automatic production lines so as to enhance the technical

level of process control, the quality of products and satisfy the increasing control

demand on products in the market.

Process of production techniques:

Laying off-Inspection-heating and molding-heat treatment-Inspection-blasting-

sorting-painting-in stock

Sections to be improved: heat treatment, inspection, blasting

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD20 million Total Annual Profit USD800,000

Annual After-Tax

ProfitUSD540,000

Introduction to

EnterpriseTotal Assets

RMB￥92.45

millionRegistered Capital

RMB￥8.37

million

Number of

Employees400

The factory was established in 1957 with first class design capability of plate spring

and is the main special production base of light motor armor plate springs with

annual production ability of 30000 tons. The factory is also a member factory of

China Automobile Association, the Agriculture Vehicle Branch of China Agriculture

Mechanism Industry Association and the backbone member of China Automobile

Armor Plate Spring Association. After a large-scale technique reform, the factory has

possessed excellent plate spring production shops and lines, and other production

equipments with national advanced industry level. The factory has also established

rigorous and scientific quality system and acquired the international quality

certificates of ISO9001 and UKAS.

Remarks

The enterprise has now complete workshops and public facilities such as power,

water, heat and sewage systems, which will guarantee successful implementation of

this project.

Tel +86 10 89427551 Contact Person Chen Xu

Table on Introduction of InvestmentName Manufacturer of export electric machinery (joint venture)

Sponsor Enterprise ITOCHU CORP (B)

Construction Site Shunyi District, Beijing

Total Investment USD1 millionInvestment With Fixed Assets USD600,000

Circulating Funds USD400,000

Intentions The intention is to introduce foreign capitals, improve production conditions and

environment, renew equipments, enlarge production scale, and increase the

production capability and technical contents in products.

A joint venture is expected to be established by cash investment from the foreign

side and equipment investment from the home side, each holds 50% of the share.

Potentials for

Development

The main products of this enterprise are mainly exported to Japan. Most of its

products are components and parts, and the rest are assembly engines. It is planned

to enhance the production scale of the enterprises through the establishment of a

joint venture, and increase the production capability and technical content so as to

realize the purpose of exporting assembly electric engines to Japan.

At present, the enterprise covers an area of 30000m2, with 8000m2 for workshop, and

22000m2 for administrative, living and auxiliary business.

Product Title

Newly

Increased

Output Volume

Functions

1 28MT engine 120 000 Japanese decelerated-style engine，with

12-24V voltage, and 3-8kw power.

The products are all exported to Japan.2 29MT engine 3600

3 Japanese electric

engine

60000

Market

The engines manufactured in this project are mainly used in automobiles. According

to the development layout of the motor industry of China, the motor industry will

become one of the supporting industries for the national economy. It is expected that

the total output of automobiles will reach 3.2 million by the year of 2005. Its

development emphasis is cars and business vehicles. The demand of all kinds of

motor dynamotors and engines increases annually and the enterprise has a great

market perspective.

It can be estimated after the actualization of this project the enterprise can have a

maintenance engine market of 50000 pieces, and an assembly market of 15000-

20000 pieces annually.

Construction

Period3-5 years

Expected

Economic Benefit

Annual Sales

IncomeUSD12 million Total Annual Profit USD600,000

Annual After-Tax

ProfitUSD400,000

Introduction to


RMB￥51.29


RMB￥12.45

million

Number of 733 Number of 56

Employees Technicians

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Remarks



this project.

Tel +86 10 64229063 Contact Person Fu Chun

Table on Introduction of InvestmentName Joint investment project of jig-borers

Sponsor Enterprise Beijing No.1 Machine Tool Plant

Construction Site Beijing

Total Investment USD1.5 million Investment With Fixed Assets USD1 million

Circulating Funds USD0.5 million

Intentions We hope to establish a joint venture with foreign companies with advantage of

capital and technology. It is a jig-borer assembly plant, producing assembled

precisely numerical controlled jig-borers in a small quantity and satisfying the

demands for finishing in machine processing. The foreign company is supposed to

be a manufacturer of jig-borers with design capacity and technology.

The foreign company can have a share of 49% of the joint venture by bringing in

cashes and technology.

Enterprise

Potentials for

Development

Beijing No.1 Machine Tool Plant is a large machine tools production enterprise with

a history of more than 50 years. Due to market basis and good brand advantage, its

products are well-known and gain a certain market share. According to its own

condition, it begins to remove to Linhe Development District and is ready to build a

modern machine tools production base there that produces advanced numerical

controlled machine tools and machining centers. In the meantime, it plans to

cooperate with several foreign manufacturers of machine tools separately in order to

further develop the enterprise.

The jig-borers project is of great significance to the assurance of mechanical quality

and it can realize the final assurance of work precision. The demand of this kind of

machine tools is limited but they are absolutely necessary. Especially when there are

less high precise machine tools, the products are very promising in the market and

the enterprise has the capacity of producing the kind of machine tools.

Product Title

Newly

Increased

Output Volume

Functions

1 YBM-800N 15 The machine tool can be controlled

numerically and manually and can realize

high vacancy precision and high

geometric precision.

2 YBN-55J 15

Market There is a lack of machine tools able to control final finishing in the market.

Techniques

The project is only restricted to the assembly procedure and Beiyi Company can be

consigned to the processing of all the parts needed in the project. Therefore, we

focus on the assembly of the precise key parts of precise machine tools and the

control on the whole. It is supposed to provide the “final cutting” of finishing of the

precise parts.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD1.635 million Total Annual Profit USD130,800

Introduction to


RMB￥1039


RMB￥87.37

million

Number of

Employees

2238 Number of

Technicians

354

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1980s

During 50 years’ construction, Beijing No.1 Machine Tool Plant has being

developing and now been one of the largest machine tools manufacturer in China

and also the largest manufacturer of millers. It has designed over 100,000 small and

medium size, heavy and super heavy machine tools of more than 500 kinds. ‘Beiyi’

products are popular all over the country and over 50 countries and districts in the

world.

It owns the flexible manufacturing workshop, the vertical storage, the computer

network and large quantities of hot and cold processing devices and check measure

instruments. Apart from its capacity of manufacturing machine tools, it also can

develop and turn out in mass production all kinds of popular and top grade numerical

controlled machine tools and machining centers. In 2002, the sales volume of

machine tools amounted to 250 million RMB.

It also carries out effective research in the field of computer integrated

manufacturing technology and remarkable achievements have been made in the

CIMS project. The product development cycle shortens by half and 5 to 8 kinds of

products are launched into the market each year. It has been confirmed by the

national 863/CIMS theme experts as one of the three key state appliance factories. In

1995, it is identified as one of the first 100 state ‘technology centers’.

At present, it is undergoing removal and transformation and tries to become one of

the largest modern manufacturers of machine tools in the country.

RemarksThe enterprise can assure smooth operation of the project, providing workshops,

public facilities such as water supply, power supply, heating and so on.

Tel +86 10 65682124 Contact Person Liu Yonglu

Table on Introduction of Investment

NameJoint investment project of numerical controlled cylindrical grinding machine and

machining center

Sponsor Enterprise Beijing No.2 Machine Tool Works

Construction Site 4 LugouqiaoNanli, Fengtai, Beijing

Total Investment USD8 million Investment With Fixed Assets USD4.23 million


IntentionsWe hope to establish a joint venture together with foreign companies with capital

and technology advantage; The foreign company can have the share of 50% in the

joint venture by bringing in capital and technology. We hope that the foreign

investment in cash at least reaches more than 10% of the registered capital; provide

2-4 serials of product technology (including product blueprints, technical skills,

frocks and so on).

Sales channels: the internal company sells through the sales network of the joint

venture and the foreign company is responsible for the sales in the foreign market;

Objective market: medium level products in the internal market and top grade

products in the international market with partial product buy-back.

Enterprise Potentials

for Development

China is becoming a market- orentied country. After China’s entry into WTO and

further opening of market, market in China has become a large international market.

70-80% of the world 500 top enterprises have invested and built factories in China or

set up branches and research and development department and they have transferred

their manufacture base to China. Therefore, China will become the new international

manufacture base. Beijing puts forward recently developing vigorously modern

manufacture and it will strengthen the development of car manufacture, numerical

machine and other industries. In October, the new policy will be issued to encourage

the development of manufacture. Hyundai has established a joint venture in Beijing

and plans to produce 300,000 cars each year. Beijing will supply kit manufacture for

the car industry, which provides better local market for numerical controlled

cylindrical grinding machine and machining center.

The enterprise specializes in this kind of product and has the production

experience of numerical controlled cylindrical grinding machine and machining

center.

Product Title

Newly

Increased

Output Volume

Functions

1

GL5A(P) NC

cylindrical grinding

machine

60 sets

The product has reached the

advanced international level of

medium size of numerical controlled

cylindrical grinding machine of the

late 1990s. Introduction of

manufacture technology of Fenggong

precise machining center and

production of small size precision

vertical machining center through

cooperation with it.

2 PV4-C machining center 60 sets

3

Other special machines,

general machines and

numerical controlled

cylindrical grinding

machines

Market The product to be manufactured is mainly used for mass production of parts of

motorcycles, gear box and household electricity. It is also applicable for finishing of

small size boxes and valve parts, which need high precision.

It is estimated that the demands in the machining center market of China will be

4,000 by 2005. Among the needed kinds of machining center, vertical machining

center of axis Y travel within 500 mm, high-speed machining center with a principal

axis with a rotate rate of more than 10,000/m, vertical and horizontal automatic

switching machining center, precise vertical machining center, and the five-

coordinate machining center will be needed in large quantities in the market. It is

estimated that market share of the domestic machining center will exceed 60%.

Techniques

PV4-C high-speed vertical machining center: it uses interior electric principal axis

and the rotation speed of its principal axis can reach 10,000 circles/ min, with high

slewing precision and strong rigidity. It uses high-speed special ATC structure with

the tool change time of 1.5 sec (tool-tool). With excellent cutting, cutting efficiency

reaches 1,596 cm/min when cutting aluminum alloy (A20N) material. Highly precise

locating: precise locating: ±2.0um/ full length and precise relocating; good

maintenance of ±1.0um. Absolute encoders are used to all servomotors, thus

decreasing the number of travel switches and receiving switches in a large margin

and improving reliability. It has a simple appearance with a totally closed hood. It

uses the imported original numerical control system with simple and easy

programming and operation. The small sized precise vertical machining center is

especially suitable for finishing of small boxes and valve parts that require high

precision.

CL5A(P)-II the numerical controlled cylindrical grinding machine and numerical

controlled angle head cylindrical grinding machine: they have the structure of electro

mechanic integration with strong rigidity, easy installment and good whole

protection; the grinding head is imported with original packaging and TOYODA

STAT static and dynamic axis of high rigidity is used for the grinding wheel spindle

with high slewing precision, rigidity and long life; the linear velocity grinding wheel

can be 45m/s(the common grinding wheel and constant linear velocity) and

80m/s(CBN grinding wheel); the numerical control specially designed for CNC

grinding machine，two axis of universal driving (X and Z), the minimum setup unit

of 0.1um, highest feed rate of 20m/min; when cutting the taper in batches, fit

precision can reach 80%; imported and homemade principal momentum measure

instrument, grinding wheel automatic balancing device and lost motion eliminating

device can be adapted.

Construction period 3 years

Expected Economic

Benefit

Annual Sales

IncomeUSD18 million Total Annual Profit USD3.63million

Annual After-Tax USD1 million

Profit

Introduction to

Enterprise

Total AssetsRMB￥304.93mil

lionRegistered Capital RMB￥50 million

Number of

Employees1202

Number of

Technicians151

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1980s

Beijing No.2 Machine Tool Works is a large national key enterprise, mainly

manufacturing precise and highly efficient cylindrical grinding machine and

numerical controlled cylindrical grinding machine and at the same time producing

machining centers, super finisher, machines specially designed for car manufacture

and so on. It is one of the eight big automobile manufactories and assembly plants

selected by the Ministry of Machine and Industry of the state during the Ninth Five-

Year Plan. In the past forty years, its products have been taking the leading role in

the industry thanks to relying on scientific and technical progress and following the

advanced international trend.

Beijing No.2 Machine Tool Works owns a numerical control precise machine

research center, which has provided several serials of products such as grinders,

machining centers, machines specially designed for car manufacture and super

finishers during many years of experience of design, search and manufacture. Since

China’s adoption of Opening and reform policy, Beijing No.2 Machine Tool Works

has made great progress in the manufacture level by keeping improving technology,

realizing management of modern enterprises and applying the advanced production

method. Having passed the ISO9000 Quality Certification and won many prizes, its

products are praised as the “the recognized famous brand product in China” and

spread all though China and to more than 30 countries and districts in the world.

RemarksThe enterprise can assure smooth operation of the project, providing workshops,

public facilities such as water supply, power supply, heating and so on.

Tel +86 10 83219661 Contact Person Cui Zhicheng

Table on Introduction of InvestmentName ATM automatic output and storage boxes of paper money

Sponsor Enterprise Beijing Institute of Opto-electronic Technology

Construction Site Industrial Development District of Miyun County



Intentions

We hope to form a joint venture together with the foreign company with capital and

technology advantages in order to establish the industrial entity. The foreign

company is supposed to have several years’ experience of paper money receiver

production.

The foreign company can bring in cashes or equipment and technology with

equipment accounting for 20% of the total share or technology accounting for 80%

of the total.

Enterprise

Potentials for

Development

Since 1994, RMB recognizer research department of Beijing Institute of Opto-

electronic Technology has been undertaking the development of RMB recognition

and authentication and RMB recognizers. It is the first to launch the business RMB

paper money receiver and coin receivers. Now many kinds of paper money receivers

and coin receivers for automatic vending machine are developed, which can

recognize and receive new and old editions of paper money and coins respectively.

Those that are being made in mass production include YBJ-1coin receivers and

ZBS-1paper money receivers.

Product Title

Newly

Increased

Output Volume

Functions

1 The five-box

automatic output

and storage boxes

300 sets

The most advanced internal machine

processing technology and die

manufacture technology are applied.

According to the international ATM

manufacture standard, the products of

international level are turned out and

2 The three-box

automatic output

and storage boxes

200 sets

replace all the automatic output and

storage boxes imported.

Market

In the recent years, all major banks have actively bought a lot of ATM and offered

self-served depositing and withdrawal business in order to expand their business and

improve their service. As for the paper money output and storage boxes installed in

over 2,000 ATM in Beijing, the purchasing price has exceeded 400 million RMB.

However, the demands for ATM in the internal market are far from saturation.

Therefore, it is profitable to develop homemade ATM paper money output and

storage boxes.

As for the current internal market of ATM, the paper money output and storage

boxes are all imported. We plan to introduce the foreign production technology of

top grade paper money output and storage boxes of ATM and provide the high-

quality and cheap homemade top grade paper money output and storage boxes for

the internal ATM manufacturers by coordination with the RMB identifying

technology mastered by the enterprises.

Techniques

1. Absorption of international advanced experience of production and management

and realization of the quality guarantee system of the whole production process.

2. Selection of advanced DSP technology and algorithm theory.

3. Use of highly precise and highly stable photoelectric sensing elements and

magnetic sensing elements.

4. Use of the most advanced design conception of paper going channel transfer and

assurance of smooth and quick transfer of all kinds of paper money to and out of the

money box.

5. Being applicable to all paper money more than one yuan.

Construction

PeriodHalf year to 1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD3.4 million Total Annual Profit USD1.02 million

Annual After-Tax

ProfitUSD0.68 million

Introduction to


RMB￥57.12

million Registered Capital

RMB￥10.78

million

Number of

Employees216

Number of

Technicians113

Level of

TechnologyWorld level

Technological

Level of

Equipment

1990s

As of the key research centers in Beijing, Beijing Institute of Opto-electronic

Technology is the research center of the laser industry of the State Machine and

Industry Bureau and is also the internal technology center of ‘Optic radiation safety

and laser devices’ of the International Electrotechnical Commission (IEC)TC76. It is

approved by the Beijing Science and Technology Commission as ‘the pilot base of

laser medical equipment in Beijing’ and owns ‘the laser exploration and examination

lad’ constructed under the approval of Beijing Science Fund Commission. In 1998, it

was approved by the State Bureau of Medical Administration as ‘the research center

of laser medical equipment project’. The laser parameter measure department of

Beijing Institute of Opto-electronic Technology is approved by the State Science and

Technology Commission as ‘the measure center of laser parameters in Beijing’; it

also becomes ‘the product quality supervision and check center of laser equipment of

the Ministry of Machinary Industry. The products of researches of laser equipment,

laser technology appliance and photoelectric technology appliance in the center have

won more than 100 prizes from the state, the ministry and the municipal

government.

The center occupies an area of 5,030 m2 with a construction area of 8,660 m2. Its

Daxing production base has a construction area of 3,000 m2. Its Miyun production

base occupies an area of 10,000 m2 with a construction area of 6,000 m2. The center

consists of several laser technology appliance research departments and the RMB

recognizer department that has been undertaking development of RMB recognition

and authentication and RMB recognizers and is the first to launch business RMB

paper money receivers and coin receivers. At the same time, the center also has

machine processing workshop and optic processing workshop. Its products are

popular all over China and are exported to the international market.

RemarksIt can assure smooth operation of the project with workshops and good public

facilities such as water supply, power supply and heating, etc.

Tel +86 10 84024547 Contact Person Guo Shaoling, Cai Mindong

Table on Introduction of InvestmentName Public Multimedia Self-help Service Equipment (Kiosk Touch Integration)

Sponsor Enterprise Beijing Shougang Ring-Star Touch Computer Co. Ltd.

Construction Site Beijing Zhongguancun Science Development Area

Total Investment USD20 millionInvestment With Fixed Assets USD12 million

Circulating Funds USD8 million

Intentions

Hope to introduce foreign advanced economic management system through

international cooperation to help to the open-up of the market share of the item in the

world

Overseas investor can make the investment in cash to establish joint venture

corporation, the foreign partner occupying 49%.

Enterprise

Potentials for

Development

The Shougang Ring-Star Touch Computer Co. Ltd. owns world leading touch

technology, imbedding systematic technology, touch browsing technology, offering

touch products, network computer products, varied special network information

terminals, key applications, and network management software. It is the general

agent in Chinese region of the touch products for American ELO corporation and

Japanese MINATO company, and acts meanwhile for Lantech network products,

Phillip display products and MINATO programmer devices.

The company has outstanding experts and abundant customer resources. With many

years of experience it has opened up seven series products and the PMSS system

scheme, leading the same sectors.

Product TitleNewly Increased

Output VolumeFunctions

1 E series 5000 sets By means of next generation

communication net (NGN), integrate the

language, data, video communication

technology, and human-PC interactive

interface, with bankcard and IC card as

payment medium.

2 X series 10000 sets

3 N series 20000 sets

4 G series 2000 sets

5 Pmss 300 sets

Market Public multimedia self-service equipment (touch integrative machine) is multimedia

interactive equipment developed according to the market requirement. It integrates

the advanced touch computer technology and modern manufacturing process into an

organic whole, with characteristics of graceful appearances and rational structure. Its

varied and luxurious interface is very pleasing.

Public multimedia self-service equipment is indeed a drive to the development of

urban high-tech industry and contribution to the network construction and image

establishment of the bank. It will bring out a brilliant and convenient digital life and

lead people into a real internet time.

Techniques

KIOSK industry is a complex system, whose production process involved with the

technology and arts of many fields and layers as follows:

1） Industrial manufacture: Industrial design, plate work and grinding tools and

surface treatment;

2） Electronic technology: Computer, control system, power supply, human-

computer interaction equipment and peripheral equipment;

3） Multimedia communication: New generation communication network (NGN)

technology as concerns language, data and video.

4） Web Service technology: Human-computer interface, internet, web

management, and security.

Construction

PeriodWithin 12 months following the approval of feasibility study reports.

Expected

Economic Benefit

Annual Sales

IncomeUSD50 million Total Annual Profit

USD29.41

million

Annual After-Tax

ProfitUSD5 million

Introduction to

EnterpriseTotal Assets RMB￥90 million Registered Capital

RMB￥76.175

million

Number of

Employees130

Number of

Technicians70

Level of

Technology1990s

Technological

Level of

Equipment

1990s

The Shougang RingStar Touch Computer Co. Ltd. (SGS) is a new technology stock-

holding system enterprise registered at Zhongguancun Science Park. It owns world

leading touch technology, imbedding systematic technology, touch browsing

technology, offering such as touch products, network computer products, varied

special network information terminals, key applications, and network management

software. It is the general agent in Chinese region of the touch products for

American ELO corporation and Japanese MINATO company, and acts meanwhile

for Lantech network products, Phillip display products and MINATO programmer

devices

The company has designed and made the first Chinese touch information inquiring

integrative machine (Kiosk), started the touch PC industry. It boasts the domestic

largest base for research, development and production of the touch products, being

designated as enactment unit of the sector standard of information industry by the

Ministry of National Information Industry, and responsible for establishing national

standard of the KIOSK touch inquiry integrative machine.

The company, on the base of KIOSK touch surfing integrative machine, WBT

network PC, various kinds of special web information terminals, key applications,

web management software, works out the solutions for urban public information, e-

business, finance, business management, e-government, hospital, and supplies the

network system, net products and service suitable to such sectors as government,

education, public undertakings.

The company boasts excellent technical talents, sound market channels and good

enterprise reputations, and its sales network spread all over China. It has passed the

ISO9001: 2000 quality authentication.

The company occupies area of 18,000 m2, of which 2,000 m2 are factory buildings

and1, 000 m2 are office and logistics premises.

Remarks



this project.

Tel +86 10 62006688－6002 Contact Person Li Feng

Table on Introduction of InvestmentName Automation of Heating ventilation (performers and devices)

Sponsor Enterprise Beijing Jingyi Century Automatic Equipment Co.,Ltd.

Construction Site No.2 Weizikeng, Songjiazhuang, Yongwai, Fengtai District, Beijing



Intentions To invest to organize a liability limited company specializing in production of tunnel

ventilation performers, building mufflers, heating ventilation air-valve performers,

tunnel-pathway barriers, electric automation system performers, aptitude electric

performers, and whole set automation apparatus series products. The qualification of

the foreign partners: (1) Having interests in investment to the items of heating

flowing whole set automation. And taking Beijing as the base for business activities.

(2) Being a business corporation entity with abundant financing. (3) Having interests

and ability to further invest when achieving good economic returns.

Enterprise

Potentials for

Development

The rapid development of the subway, highway, large-scale buildings, power plants,

factory buildings provides the brilliant and vast market prospects.

Product Title

Newly

Increased

Output Volume

Functions

1 subway air-valve 2000sets/units

Air-valves and performers and mufflers

are all self-introduced by this plant, their

technical performances being the best in

China as export-oriented products.

2 Air-valves for

buildings20000sets/units

3 mufflers 10000sets/units

4 Electric performers 10000sets/units

5 Whole-set

automation devices20sets

Market

Air-valves, performers, and mufflers are basic devices used in the ventilation

system. The air valves are used to auto-control the air output and ventilation. The

performers are used for accepting the control signals from the adjusters in the auto-

control system and changing the operation variables. The mufflers are effective

devices to prevent the noises resulted from air momentum from spreading. Setting in

the air input-output system, the muffler is part of piping system, by which acoustic

treatment is done in the pipe to reduce the production and spreading of noises

without influence on the air flow, the noise elimination at the inlet or outlet being

10~40dB(A), decreased by 50%~93%.

The rapid development of national economic construction results in the fast

increase demands of large-scale public and/or civilian buildings, industrial buildings,

and undergrounds and tunnels, all of which need the ventilation systems. Hence the

vast space for marketing the item, annual marketing values expected to be more than

3 billion yuan. There are 20 factories to compete with the firms at home and abroad.

Techniques

Air- valve performer technology is introduced from American Johnson with its

advanced techniques leading the world.

The mechanic technology of the performers’ inside is the NN patent of domestic

advanced level, introduced by this plant.

Performers’ control technology is reaching domestic advanced level.

Production equipment is made in Japan with its ISO9000 quality system certified

first batch in China.

With its existing sales network and technical team, the item has been on the list of

the national key technical innovation projects

Construction

Period The project is put into operation in the same year to the investment.

Expected

Economic Benefit

Annual Sales

IncomeRMB￥20 million Total Annual Profit RMB￥4 million

Annual After-Tax

ProfitRMB￥2 million

Introduction to

Enterprise

Total AssetsRMB￥140


RMB￥27.47

million

Number of

Employees476

Number of

Technicians120

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Beijing Instrument Machine Tool Works, establish in 1956, under the control of

Beijing Jingyi Holding Co. Ltd., is the export base sanctified by Electromechanical

Products Export Office of State Council and China Economic and Trade Council.

Owning the self-support right of export and import and certified by the ISO9001

Quality System in 1995.

Located on the Third Ring Road in the Southeast of Beijing and holding the

convenient traffic condition， the plant occupies an area of 10,000㎡ and has

powerful capability to design and make the precision machinery and abundant ability

to develop the electric control techniques. It contains ten design offices including the

plant technical center. With wide band LAN equipped, it has established long term

cooperation of Production-learning-research with famous domestic engineering

academies. It also takes the national key technical innovation projects united with

China Academy of Sciences.

Remarks



this project.

Tel+86 10 67627286

13701019340Contact Person Li Runyuan

Table on Introduction of InvestmentName Electronic Material Equipment

Sponsor Enterprise Beijing Jingyi Century Automatic Equipment Co.,Ltd.

Construction Site No.2 Weizikeng, Songjiazhuang, Yongwai, Fengtai District, Beijing



Intentions

To invest to organize a series materials equipment liability limited company with

integrated photo- electro- mechanic technology mainly to design, assemble, and

produce the semiconductor material equipment, laser material equipment and oxide

material equipment. Qualification of foreign partners: (1) Having interests in the

investment to electronic material equipment item and taking Beijing as the base for

business activities. (2) Being a business corporation entity with abundant financing.

(3) Having interests and ability to further invest when achieving good economic

returns.

Enterprise

Potentials for

Development

The project is the upper basic industry item in the information industry. With the

rapid development of information industry, the project boasts extremely good

prospects. The firm’s advantageous conditions: (1) Leading the world level is the

industrialization of the permanent magnet equivalent microgravity crystal growing

technology. (2) Among the advanced levels are the IPC industrial control computer

and its supporting software. (3) The plant is among the first batch certified by the

ISO9000 quality system, its products being of superior quality in China. (4) the

readiness of its sales network and technical team

Product Title Newly Increased Functions

Output Volume

1 Silicon single-crystal

furnace20 sets

Permanent magnetic silicon and

gallium arsenide single-crystal

furnaces are initiated at home and

abroad, being listed on the national

key technical innovation project plan.

It has formed the series products of

silicon, gallium arsenide, and oxide.

2 Silicon single-crystal

furnace20sets

3 Gallium arsenide

furnace10sets

4 Oxidation furnace 100sets

5 Supporting equipment 200sets

Market

Semiconductor silicon material and gallium arsenide play the important role in

the defense and military industry, the high tech research and the civilian industry, as

the foremost basis materials for making micro-electronic and photo-electronic

devices, and the choice materials used for making high-speed, high-frequency and

high-power microwave devices and ultra speed integrated circuits; and lamination,

optical maser and solar battery.

The mono-crystalline silicon units of big diameter, high purity and fine

homogeneity have extremely wide usage in radio and electronic industry.

Developing the integrate circuits into the ultra scale integrated circuit, it helps the

electronic product microminiaturize and lowers the cost. gallium arsenide is the most

important and most matured compound semiconductor materials, widely used in the

photo-electronic and micro-electronic fields. The annual world production of the

mono-crystalline gallium arsenide exceeds 200 tons and the crystalloid gallium

arsenide growing technology of China has been on the world-leading list.

Information industry is the new growth point of the national economy. In the tenth

five-year period, information industry will develop at the speed three times the

national economy and be the largest industry by leading varied industries of the

national economy. The annual domestic market requirement for the product of this

project is around RMB￥500 million and the foreign market is very wide. There are

no more than 10 rival manufacturers of the same trade home and abroad, the

development potential is considerable.

Techniques

The project takes the three investments for design, pilot scale experiment and final

assembly as the key points, machining work being completed by the machine tools

plant and machinery factory of the general plant.

Construction

PeriodThe project is put into operation in the same year to the investment.

Expected

Economic Benefit

Annual Sales

IncomeRMB￥20 million Total Annual Profit RMB￥4 million

Annual After-Tax


Introduction to

Enterprise



RMB￥380

million

Number of

Employees975

Number of

Technicians329

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Beijing Instrument Machine Tool Works, established in 1956, under the control of

Beijing Jingyi Holding Co. Ltd., is the export base sanctified by Electromechanical

Products Export Office of State Council and China Economic and Trade Council.

Owning the self-support right of export and import and certified by the ISO9001

Quality System in 1995.

Located on the Third Ring Road in the Southeast of Beijing and holding the

convenient traffic condition, the Plant occupies an area of 10,000 ㎡ and has

powerful capability to design and make the precision machinery and abundant ability

to develop the electric control techniques. It contains ten design offices including the

plant technical center. With wide band LAN equipped, it has established long term

cooperation of Production-learning-research with famous domestic engineering

academies. It also takes the national key technical innovation projects united with

China Academy of Sciences.

Remarks



this project.

Tel+86 10 67627286

13701019340Contact Person Li Runyuan

Table on Introduction of InvestmentName Joint investment and cooperation project of encapsulation IGBT

Sponsor Enterprise Beijing Jingyi Chunshu Rectifier Co.,Ltd.

Construction Site Daxing Hi-tech Industrial Zone, Beijing



Intentions

1． All kinds of joint investment and cooperation are welcome with land,

workshops and cashes brought in.

2. By taking advantage of Beiyi Group, the sale network will be established to

exploit the domestic and international markets with no restriction on

share proportion.

Enterprise

Potentials for

Development

1. As the first professional factory to produce electric power

semiconductor parts and equipment in China, Beijing Chunshu

Rectifier Plant is the key enterprise of Ministry of Machinery and

Electronic Industry and the electric power and electronic industry in

Beijing, with high quality technical equipment, sound infrastructure

and excellent industrialization condition.

2. It has gained good reputation in the market and been well-known in

China.

3. It owns a complete sales network.

Product Title Sales Volume Functions

IGBT 60,000 Easy activation, high pressurization, large

current and favorable frequency features.

Market At present, the use of IGBT is much wider than that of IGCT, especially in the

range of small power and IGBT has replaced the traditional power device. However,

there is no plant able to produce IGBT in China till now and all are imported to the

internal market.

IGBT, the core device in electric power and electronics, are used widely and the

demands in the internal market are about 100,000 with a huge market space.

TechniquesBy using the advanced automatic packing, the computerized check technology has

attained the international level of the late 1990s.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD5 million Total Annual Profit USD1.2 million

Introduction to

Enterprise

Total Assets RMB￥90 million Registered Capital RMB￥42 million

Number of

Employees370

Number of

Technicians120

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Founded in 1960, Beijing Chunshu Rectifier Plant is the first professional factory to

produce electric power semiconductor parts and equipment in China and it is the key

enterprise of Ministry of Machinery and Electronic Industry and Beijing Electric

Power and Electronic Industry. It occupies an area of 35,000 square meters with a

construction area of 37,500 square meters. It is the manufacturer with the most kinds

of products and the most kinds of product sizes among the converter industry in

China.

Remarks

It now owns workshops and perfect public facilities, such as power supply, water

supply, heating and sewage disposal and can ensure the smooth operation of the

project.

Tel +86 10 66055231-8205 Contact Person Jin Jijun

Table on Introduction of InvestmentName Amorphous silicon solar power board

Sponsor

EnterpriseBeijing Beiyi Chuangxin Vacuum Technology Ltd.

Construction Site Yizhuang Industrial Development Area, Beijing

Total Investment USD 28 million Investment With Fixed Assets USD4 million


Intentions

Joint investment with 30% by the Chinese party and 70% by the foreign party. The

foreign party should have technologies of amorphous silicon solar photoelectronic

products, be able to provide or purchase advanced manufacturing equipment and be

rich in management experience and proficient in sales in the international market.

Enterprise

Potentials for

Development

There are only one or two manufacturers of amorphous silicon solar photoelectronic

products in China and several tens in the world. With low manufacture cost, the

products can be soon put to civil use, promising a bright future in the market. Beijing

Beiyi Chuangxin Vacuum Technology Company is a hi-tech intensive enterprise and

one of the 100 Enterprises with Leading Technologies in Beijing. With strengths in

technologies, complete techniques and testing measures, the Company has been

adjusting product structure and increasing input in technologies, resulting in favorable

achievements in new product development, technical promotion and hi-tech

application.

Product Title Functions

1 Solar power boardLow manufacture cost per unit. Photoelectric conversion

efficiency as high as 8%.

Market At present amorphous silicon solar cell has been greatly successful both in

academic studies and in industrial production. The total output capacity of the whole

world exceeds 50 megawatts. The biggest production line produces 10 MW

components annually. With the world’s requirements for environmental protection,

both developed and developing countries are attaching more importance to the

utilization of solar energy and the demands in the market keep growing. It can be

forecast that in 2010 there will be demands of 630 MW solar photoelectronic products

in the world market. Amorphous silicon solar power board has much space for

development.

Techniques

Amorphous silicon solar cell is the best product popularized for civil use among the

various kinds of solar cells. With low manufacture cost per unit, mature manufacture

techniques and complete automatic production lines, production is made easier and

more integrated. The photoelectric conversion rate can go as high as 8%.

Construction

Period2 years

Expected

Economic Benefit

Annual Sales

IncomeUSD42 million Total Annual Profit RMB￥

Annual After-Tax

ProfitRMB￥

Introduction to

Enterprise

Total AssetsRMB￥64.68


RMB￥64.68

million

Number of

Employees500

Number of

Technicians60

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Founded in 1954, Beijing Beiyi Chuangxin Vacuum Technology company is one of the

backbone factories in China’s vacuum equipment industry. Its major products include

low-vacuum, high-vacuum and ultrahigh-vacuum acquisition equipment, vacuum

application equipment, vacuum measuring and membrane thickness monitoring

instruments and large vacuum projects, totaling more than 30 series and 160 kinds. In

1998 the Company gained the ISO 9001-1994 certificate.

Remarks

The enterprise has now complete workshops and public facilities such as power, water,

heat and sewage systems, which will guarantee successful implementation of this

project.

Tel+86 10 65813719

+86 10 65815028Contact Person Zhang Huiran, Hao Gang

Table on Introduction of InvestmentName Integrated project of inductive heating power supply

Sponsor

Enterprise

Beijing Jingyi Chunshu Rectifier Co.,Ltd.

Construction Site Sanqingdi, Shijingshan District, Beijing



Intentions

1.All kinds of joint ventures and cooperation are welcome with lands, workshops and

cashes brought in.

2.By making use of the advantage of Beiyi Group, the sale network will be established

to exploit the domestic and international markets with no restriction on share

proportion.

Enterprise

Potentials for

Development

1.The first professional factory to produce electric power semiconductor parts and

equipment in China, it is the key enterprise of Ministry of Machinery and Electronic

Industry and Beijing Electric Power and Electronic Industry, with high quality

technical equipment, perfect infrastructure and excellent industrialization condition.

2.It has gained good reputation in the market and been well-known in China.

3.It owns a nice sales network.

4.Achieving automation of timely controllable materials, such as, quenching of all kind

of dies and knives and melting of metal that is difficult to melt, it is the power supply

device of great potential.

Product Title Sales Volume Functions

Inductive heating

power supply700 sets

The equipment can melt, diathermize,

quench and sinter metal materials. It is easy

to be controlled automatically, decreasing

pollution and saving sources.

Market At present, there is not a single manufacturer of inductive heating power supply

both with high level and large production scale to the north of the Yangtze River. At the

same time, with increase of demands for deep processing of metal materials, the use of

inductive heating power supply will rise rapidly.

TechniquesIt owns full packing and checkout product line and has reached the international

advanced level of the 1990s.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales


Annual After-Tax

Profit USD2.4 million

Introduction to

Enterprise

Total Assets RMB￥90 million Registered Capital RMB￥42 million

Number of

Employees370

Number of

Technicians120

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Founded in 1960, Beijing Chunshu Rectifier Plant is the first professional factory to

produce electric power semiconductor parts and equipment in China and it is the key

enterprise of Ministry of Machinery and Electronic Industry and the electric power and

electronic industry in Beijing. It occupies an area of 35,000 square meters with a

construction area of 37,500 square meters. It is the manufacturer with the most kinds

of products and the most kinds of product sizes among the converter industry in China.

Remarks

It now owns workshops and perfect public facilities, such as power supply, water

supply, heating and sewage disposal and can ensure the smooth operation of the

project.

Tel +86 10 66055231-8265 Contact Person Zhao Changzheng

Table on Introduction of InvestmentName Full automatic optoelectronic beam evaporation coating machine

Sponsor Enterprise Beijing Beiyi Chuangxin Vacuum Technology Ltd.

Construction Site Daxing Industrial Development Area, Beijing



Intentions

Full automatic Opto-electronic beam evaporation coating machine is the key project of

development defined during the ‘tenth five-year plan’ of Beiyi Company, which hopes

to cooperates with foreign companies of advanced vacuum equipment manufacture and

development techniques and technical skills in a form of joint ventures with a

investment share of 50% each.

Enterprise

Potentials for

Development

As the earliest manufacturer of vacuum equipment in China, Beijing Beiyi Chuangxin

Vacuum Technology Ltd. exports its production to Germany, North Korea, Vietnam,

Pakistan and other countries and gain a good reputation from the inside and outside

customers and in this industry. At present, the company employs a professional

technology team of relative advantage in China and owns advanced groups of

numerical control and display machines and excellent measure. It takes the lead in

passing the ISO-9001 Quality Guarantee System and has been playing the leading role

in this industry.

Product Title

Newly

Increased

Output Volume

Functions

1Full Automatic

Coating Machine60 sets

Full automatic optic coating machine is the

top grade product with good technical skills,

technology and repeating stability. It can

satisfy the production needs of high tech

photoelectric products.

Market In China, the vacuum equipment is mainly coating machine and most of the

products are of medium or low level of technique. From 1995 to 1999, the production

of coating machine in China increased by 184% and the average growth rate during the

four years amounted to 46% which is far higher than the growth rate of other vacuum

equipment. The total value of demand for vacuum equipment was about 3 billion RMB

in China and the interior manufacturers only had the market share of around 30%. It is

estimated that the demand for vacuum equipment will double in China in 2005 with a

value of over 10 billion RMB. Full Automatic Optoelectronic Beam Evaporation

Coating machine is the top grade product, which is applicable in optical fiber,

optoelectronic and optic coating product processing. None of the manufacturers in

China can supply such products till now and all the machines needed are imported.

Therefore, this is a project with good business opportunities.

Techniques

Through full automation of machine control process and technical parameter control,

full Automatic Optoelectronic Beam Evaporation Coating machine reaches the

requirements of photoelectric products with high precision, high stability and high

capacity and meets the demands of photoelectric industry. Currently, it is the

international production level of vacuum equipment manufacturers and will supply a

gap in this field in China.

Construction

PeriodTo be finished within one year

Expected Economic

Benefit

Annual Sales

IncomeUSD10 million

Introduction to

Enterprise



RMB￥64.68

million

Number of

Employees500

Number of

Technicians60

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Founded in 1954, Beijing Beiyi Chuangxin Vacuum Technology company is one of the

backbone factories in China’s vacuum equipment industry. Its major products include

low-vacuum, high-vacuum and ultrahigh-vacuum acquisition equipment, vacuum

application equipment, vacuum measuring and membrane thickness monitoring

instruments and large vacuum projects, totaling more than 30 series and 160 kinds. In

1998 the Company gained the ISO 9001-1994 certificate.

Remarks

The enterprise has now complete workshops and public facilities such as power, water,

heat and sewage systems, which will guarantee successful implementation of this

project.

Tel +86 10 65813719 Contact Persons Zhang Huiran, Hao Gang

+86 10 65815028


Name The 20MW solar cell module product line

Sponsor Enterprise Beijing Haohua Energy Corporation

Construction Site Mentougou Coal Mine Yard, Mentougou District, Beijing

Total Investment USD28.51 million Investment With Fixed Assets USD23.43 million


IntentionsAll kinds of joint investment and cooperation are welcomed with cashes,

technology, equipment as investment and with no restriction on share.

Enterprise

Potentials for

Development

With rich solar resource and mature photovoltaic technology, the project, an

environmentally friendly new resource, will be the largest one in China. With the

introducetion of the Western Development Program and with the implementation of

‘Brightness Project’ Region, large quantities of solar cells are needed and the

demands rise rapidly. In the international market, the scale of photovoltaic cell

market becomes large and the market expands rapidly. It develops towards the

Opticelectronic screen wall combined with construction and towards merge network

electricity generation. It develops from the supplement to energy to the substitution

of energy.

Product TitleNewly

Increased Functions

1Polycrystal

silicon chips12.5 million

Polycrystal silicon chip is the major

material for making solar cells and solar

cell modules.

Market

In the international market, the solar battery market is of big scale. Each

government supports it and the growth rate of the solar cell module amounts to 30%.

It develops towards the optoelectronic screen wall combined with construction and

towards merge network electricity generation. It develops from the supplement to

energy to the substitution of energy. The world photovoltaic industry increased

annually by 20% from 1980 to 1997. It is estimated that the output of solar cells will

reach 1,600 MW by 2010 and the production value will reach USD 3 billion.

The internal market of the solar cell in China is of small scale. However, large

quantities of photovoltaic batteries are needed and the demands increase rapidly

because of the driving effect of implementation of China’s ‘Brightness Project’.

From 2002 to 2005, the use of photovoltaic system in China will rise at a large

margin and it is estimated to be 20MW. There will be a product line generating

10Mw per year after 2005.

Techniques

After being tested and etched, the silicon materials are ingoted with directional

solidification method, then sliced into silicon chips with multi-thread cutting

machine and classified after washing and testing.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales


Annual After-Tax


Introduction to


RMB￥366


RMB￥238

million

Number of

Employees12698

Number of

Technicians772

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Beijing Haohua Energy Corporation is the stock company limited that is

initiated first by Beijing Jinmei Group Company Ltd and established by Beijing

Jinmei Group Company as well as China Coal Industry Import and Export Group

Company, the Capital Steel Company, Huangkuang Longteng Science and

Technology Stock Company Ltd. and Coal Science and Technology Research Center.

Its business ranges from coal exploitation, selection and processing, export and sale,

to power exploitation and supply, to coal product manufacture, further processing,

sale and export, to energy source development, research, production and sale, to

technology consultation, transfer and introduction and so on. The internal accounting

units under the direct management of the company have passed ISO9001, 2002

quality management system certification and OHS18001 one by one. The leading

product of company is clear and environmentally friendly kilkenny coal and its

brand has been registered as “Jingjujie”. The company is one of the largest export

bases of kilkenny coal with an annual export of 2 million tons. With the advanced

quality check technology and perfect saving and transfer system, it is the one of the

coal manufacturer nearest to a port in North China. While developing leading coal

products, the company will focus on the expansion of new sources and new

materials.

Remarks

The company now has workshops and pubic facilities such as power supply, water

supply, heating and sewage disposal and it can assure smooth operation of the

project.

Tel +86 10 69842292 Contact Person Sun Guangwei

Table on Introduction of InvestmentName Microelectronic device project

Sponsor Enterprise Beijing SevenStar Huachuang Electronic Co. ,Ltd.

Construction Site 1 Jiuxianqiaodonglu, Chaoyang District, Beijing

Total Investment USD14 million Investment With Fixed Assets USD 12 million

Circulating Funds USD 2 million

Intentions

On the basis of equal and mutual benefits, sincere cooperation is welcomed to

together exploit the market of great potential in China and to extend to the

international market. The foreign company is supposed to have the similar industry

background with technology strength and customer channels. Ways and ratio are not

restricted.

Enterprise

Potentials for

Development

The state government sets down the development plan in ‘Planning Outline of

Information Industry in the Tenth Five-Year Plan’ that development focus should be

on microelectronic special devices, the device specially designed for electronic

elements production, the device specially designed for vacuum electronics

production, the installment and linking device of the complete machine and dies.

The company is the chief councilor enterprise of China Special Equipment

Association and it is the core part of Beijing North Micro Electronic Equipment

Base. It is the key enterprise of China micro electronic equipment development.

SevenStar Huachuang is the key enterprise of microelectronic equipment production

in China and keeps ahead in terms of product quality, quantity, kind and technology.

The company has gained rich experience of relevant preparation technology and

management and human resource reserve in many years’ practice. Now its micro

electronic equipment has occupied over 60% of the market share of the domestic

equipment in China.

Product Title

Newly

Increased

Output Volume

Functions

1 Diffusion furnace 30 The device specially designed for

electronics produced in the project

reaches or is close to the level of foreign

devices and it can replace the foreign

product.

2 Etching machine 15

3 Cleaning machine 40

Market

The integrate circuit industry develops rapidly. According to the estimation of China

semiconductor Association, the total investment in integrate circuit will exceed 100

billion RMB from 2001 to 2005 and it will drive the domestic demands for integrate

circuit devices and the materials.

Techniques1. Automatic slice transfer system; 2. Single-slice seal technique; 3. The ten-level

purification system; 4. Particulate pollution control technology; 5. Reaction chamber

structure design technology.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

Income

RMB￥315

million

Total Annual


Annual After-Tax


Introduction to

Enterprise Total AssetsRMB￥320

million Registered CapitalRMB￥74.6

million

Number of

Employees

1163 Number of

Technicians

60

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Founded in September. 2001, Beijing SevenStar Huachuang Electronic Co. Ltd. is

the councilor-in-chief enterprise of China Industry Council of Equipment Designed

Especially for Electronics and the vice councilor-in-chief enterprise of China

Electronic Equipment Parts Association. It has first class production environment,

processing methods and check devices with ISO9001 quality management system

certification recognized by American RAB, Netherlands RVA, Japanese JAB and

British UKAS, European CE certification and the army standard system certification

of China. Keeping market driven, quality based, research and development led, the

company seeks super excellence and provides good products to the society. It

employs an expert technology commission made up of many well-known

experienced experts in China. It owns a new technology research center specialized

in technology prospective research and a municipal technology center of Beijing

consisting of six professional departments. The company has established an effective

technology innovation mechanism and technology system, which provides good

assurance for its development. It is the largest manufacturer of semiconductor

equipment. It is also the largest manufacturer of production equipment of vacuum

electronic display products and vacuum electronics parts and equipments.

RemarksThe company now has workshops and good public facilities such as water supply,

power supply and heating. It can assure smooth operation of the project.

Tel +86 10 64359040 Contact Person Li Jibin

Table on Introduction of InvestmentName Flow meter project

Sponsor

EnterpriseBeijing SevenStar Huachuang Electronic Co. Ltd.

Construction

Site1 Jiuxianqiaodonglu, Chaoyang District, Beijing

Total Investment USD 4 million Investment With Fixed Assets USD 3 million


Intentions

On the basis of equal and mutual benefits, sincere cooperation is welcomed to together exploit the market of great potential in China and to extend to the international market. The foreign company is supposed to have the similar industry background with technology strength and customer channels. All kinds of cooperation are welcomed. The foreign company can bring in technology as investment and the share ratio is not restricted.

Enterprise

Potentials for

Development

It has been more than 20 years since the company developed the first Chinese gas

quality flow controller in 1979. It is now the only large factory producing gas quality

flow controllers in China. With absolute advantages of quality, quantity, kinds and

technology in China, its products has already occupied over 85% of the market share.

After many years’ operation, the company has established a set of normative

management mechanism, highly efficient development system, perfect marketing

network and kept its leading role in competition. All kinds of performance indicators

and flowmeters produced by the company reach or are close to the international level

of the similar production. Its products has won many prizes, for example, ‘the state

science and technology achievement prize’ and first prize of electro-mechanics

ministry quality check and its products are recommended by China Consumer

Protection Fund as ‘products recognized by customers’.

Product Title

Newly

Increased

Output Volume

Functions

1 Numerical gas quality 4200 1. Digital simulation compatibility:

flow meter

directly replace original mimetic quality

flow controller.

2. Use of 8-digit or 16-digit multi-

function micro processor clip and coating

elements and realization of micromation.

3. RS23 and RS485 are compatible and

can be switched over.

4. Software can be updated by the use of

flash storage.

5. The product appearance and the

electromechanical interface are of

international standard and can replace

foreign products.

Market

Gas quality flow controller (MFC) is used for accurately measuring and controlling gas

quality flow and is used widely in semiconductor and integrate circuit product lines,

optical fiber prefabricated stick smelting, similar adamas coating，man made crystal

manufacture, plasma spray painting, development of superconducting material, nuclear

fuel disposal, carbon fiber production and other high tech fields. In addition, it is used

widely also in vacuum coating, oil, chemical industry, pharmacy, gas making and other

industries.

Techniques

Numerical flow meter contains but only numerical technology but also technology of

flow sensors and adjusting valves and the key technology is as follows:

Numerical flow measure and flow control technology: includes automatic back-

zero, lineal correction and numerical PID control.

Serial communication: RS232, RS485 and on-scene industrial bus line technology.

Artificial intelligence technology: programmable control, automatic calibration,

breakdown judgment and treatment and other technology.

Sensors: development of highly precise and less drifty quality flow sensors.

Adjusting valves: development of metal membrane valves specially designed for

micro electronic technique and pressure-resisting adjusting valves used in oil

chemistry industry.

Construction

Period1 year

Expected

Economic

Benefit

Annual Sales

IncomeRMB￥45 million

Total Annual

ProfitRMB15 ￥million

Annual After-Tax


Introduction to Total Assets RMB￥320 Registered Capital RMB￥74.6

Enterprise

million million

Number of

Employees1163

Number of

Technicians444

Level of TechnologyAdvanced in

China

Technological

Level of

Equipment

1990s

Founded in September. 2001, Beijing SevenStar Huachuang Electronic Co. Ltd. is the

councilor-in-chief enterprise of China Industry Council of Equipment Designed





British UKAS, European CE certification and the army standard system certification of

China. Keeping market driven, quality based, research and development led, the

company seeks super excellence and provides good products to the society. It employs

an expert technology commission made up of many well-known experienced experts in

China. It owns a new technology research center specialized in technology prospective

research and a municipal technology center of Beijing consisting of six professional

departments. The company has established an effective technology innovation

mechanism and technology system, which provides good assurance for its

development. It is the largest manufacturer of semiconductor equipment. It is also the

largest manufacturer of production equipment of vacuum electronic display products

and vacuum electronics parts and equipments.




Table on Introduction of InvestmentName Electric vacuum equipment project

Sponsor

EnterpriseBeijing SevenStar Huachuang Electronic Co. Ltd.

Construction

Site1 Jiuxianqiaodonglu, Chaoyang District, Beijing

Total Investment USD5 million Investment With Fixed Assets USD4 million


Intentions

On the basis of equal and mutual benefits, sincere cooperation is welcomed to together

exploit the market of great potential in China and to extend to the international market.

The foreign company is supposed to have the similar industry background with

technology strength and customer channels. Ways and ratio are not restricted.

Enterprise

Potentials for

Development

Founded in 1965, SevenStar Huachuang Micro Electronics sub-company is the key

enterprise of research, development and manufacture of information industry basic

equipment. Its melting control, vacuum and heat engineering technology now keep

ahead in the country.

Product Title

Newly

Increased

Output Volume

Functions

1 Vacuum furnace 25Leading vacuum technology, temperature

control technology and gas protection

technology in the country

2 Hydro furnace 20

3Industrial tunnel

furnace20

Market

The product is used widely in high-temperature alloy and titanium alloy of aviation and

space flight and heat processing of special material; vacuum quenching and tempering

of dies and cutting tools; vacuum brazing and highly vacuum covering and discharging

once for all in the electronic filed; vacuum annealing and aging treatment in the

medical field; agglomeration of magnetic material and hard alloy in the powder

metallurgy field; quenching, light annealing and vacuum brazing in industrial heat

processing.

Techniques Research, development and manufacture of all kinds of industrial furnace by using

melting control, vacuum and heat engineering and other technology.

Construction

Period1 year

Expected

Economic

Benefit

Annual Sales


Total Annual


Annual After-Tax


Introduction to

Enterprise



RMB￥74.6

million

Number of

Employees1163

Number of

Technicians444

Level of TechnologyAdvanced in

China

Technological

Level of

Equipment

1990s

Founded in September. 2001, Beijing SevenStar Huachuang Electronic Co. Ltd. is the

councilor-in-chief enterprise of China Industry Council of Equipment Designed





British UKAS, European CE certification and the army standard system certification of

China. Keeping market driven, quality based, research and development led, the

company seeks super excellence and provides good products to the society. It employs

an expert technology commission made up of many well-known experienced experts in

China. It owns a new technology research center specialized in technology prospective

research and a municipal technology center of Beijing consisting of six professional

departments. The company has established an effective technology innovation

mechanism and technology system, which provides good assurance for its

development. It is the largest manufacturer of semiconductor equipment. It is also the

largest manufacturer of production equipment of vacuum electronic display products

and vacuum electronics parts and equipments.




Table on Introduction of InvestmentName Quartz frequency devices project

Sponsor Enterprise Beijing SevenStar Huachuang Electronic Co. Ltd.




Intentions





restricted.

Enterprise

Potentials for

Development

China now attaches much importance to the development and production of new

devices. It is firstly mentioned in ‘the Tenth Five-Year Plan Planning outline of

Information Industry’ that the new device is of the same importance with software

and integrate circuit, it is the core of competitiveness of electronic and information

products manufacture and that strengthening the design and production of the key

devices are the most important focus of information industry development in China.

The company is the key enterprise of quartz frequency devices development and

production and its products’ quality and technology content keep ahead in this

industry. The company has established a set of highly efficient, flexible, wise

management and normative, highly efficient development mechanism and perfect,

active and quickly reactive marketing network after many years’ operation and set up

its role in competition in the market. By making use of current marketing network,

the company delivers the new products to the customer as quickly as possible. In the

mean time, Beijing municipal government has identified integrate circuits as the

focus of information industry, which creates favorable conditions for the company to

entering the market.

Product Title

Newly

Increased

Output Volume

Functions

1 VCXO 5 million Use of vitrified surface coating package

of 7 x 5mm industrial standard, 2 TCXO 4 million

frequency range from 1MHz to 133MHz

and temperature range from － 40℃ to

3 SMD 3 million

Market

As one of the key frequency devices in information industry and key part of

electronics, quartz crystal is used widely in wireless communication, mobile

communication, optical fiber communication, computer, household appliance and

broad band, etc. It is also plays a similarly important role in military electronic

devices. Crystal devices are indispensable in any field relating to time and frequency.

Digitization and on-line of information industry require corresponding SMD quartz

crystal with small size crystal, high frequency, high stable, low power consumption ,

ultra-thinness and ultra-smallness to be the necessary elements of rapidly growing

net and telecommunication market.

Techniques

Generally speaking, other crystal oscillators are all fixed on one single frequency but

the programmable crystal oscillator can expand the range of frequency and specify

the frequency point freely. Besides, its output logic is compatible with TTL and

high-speed CMOS (HCMOS) or TTL/HCMOS and can improve device adaptability

and design flexibility, thus reducing the manufacture cost under similar conditions.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales


Total Annual


Annual After-Tax


Introduction to



million

Number of

Employees

1163 Number of

Technicians

444

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s





















Table on Introduction of InvestmentName Microelectronic packaging and assembling project


Construction Site 1 Jiuxianqianodonglu, Chaoyang District, Beijing

Total Investment USD6 million Investment With Fixed Assets

USD 5 million


Intentions





restricted.

Enterprise

Potentials for

Development

Beijing SevenStar Huachuang Electronic Co. Ltd. is the hi-tech electronics

enterprise specializing in research, development, design and production of composite

integrate circuits. Since the first product line built in 1967, the membrane composite

integrate circuits product line has produced large quantities of thick membrane

integrate modules for aviation and spaceflight and it is one of the earliest

professional enterprises producing thick membrane composite integrate circuits.

The company now employs over 40 researchers and technicians specializing in thick

membrane research and development, among which there are 2 professor level

senior engineers granted special allowance by the government and 9 senior

engineers.

Product Title

Newly

Increased

Output Volume

Functions

1 DC/DC module 1.2 millionThe product module has the features of

high proficiency, small size, good heat

emission and high reliability.

2Automobile

electronics module1 million

3 SMT module 0.7 million

MarketThe products are used mainly in aviation, spaceflight, radar, communication,

computers, automatic control, signal processing and automobile electronics.

TechniquesThick membrane composite integrate circuit manufacture technique refers to SMT

technique. That is to say, the second integration of a few universal devices such as

chip resistors, capacitors, diodes and triodes makes them special functions.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

Income

RMB￥112

million

Total Annual


Annual After-Tax


Introduction to



million

Number of

Employees

1163 Number of

Technicians

444

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

















electronic display products and vacuum electronics parts and equipment.




Table on Introduction of InvestmentName Microwave devices project





Intentions





restricted.

Enterprise

Potentials for

Development

Microwave products are of high additional value and can be used in aviation,

spaceflight, radar, electronic countermeasure, communication and remote sensing

and other fields. In recent years, the development of communication and increase of

the car market have made the demands for civil microwave products rise

considerably.

Product Title

Newly

Increased

Output Volume

Functions

1Microwave

equipment kit1000

Introduction of mature microwave

development and production technology

in order for exploitation of new product

fields in the future development of the

company.

2Microwave

component6000

3 Micro packaging 600

Market

The research, development, design, production of micro wave devices, equipment

kits and micro packaging and other products, used widely in the electronic devices of

aviation, spaceflight, radar, electronic countermeasure, communication and remote

sensing systems and taking charge of manufacturing consignment both from inside

and from outside of China.

Techniques

Apply mature micro technology production to micro wave devices, equipment kits

and micro packaging and other products used widely in the electronic devices of

aviation, spaceflight, radar, electronic countermeasure, communication and remote

sensing systems

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

Income

RMB￥20.7

million

Total Annual

Profit RMB￥8 million

Annual After-Tax


Introduction to

Enterprise



RMB￥74.6

million

Number of

Employees1163

Number of

Technicians444

Level of Advanced in Technological 1990s

Technology ChinaLevel of

Equipment





















Table on Introduction of InvestmentName Special manufacture equipment for rechargeable cells

Sponsor Enterprise Beijing Seven Star HuaDian Science (Group) Co., Ltd.

Construction Site 1 Jiuxianqiaodong Road, Chaoyang District, Beijing



Intentions We seek to establish a joint venture with a foreign partner. The Chinese party holds

51% of stocks and the foreign party holds 49%. The foreign party may first

investment with advanced technologies but some investment must be in cash. It is

preferable that the foreign party has external sales channels.

Enterprise

Potentials for

Development

The Company ranks the first among special lithium ion cell and nickel-hydrogen cell

equipment manufactures with 50% of comprehensive market share. It is the only

rechargeable cell manufacturer in China that can provide the whole set of equipment.

Product Title

Newly

Increased

Output Volume

Functions

1 Vacuum mixer 60 This is a research, manufacture and sales

project for special manufacture

equipment. The products are automatic

and semiautomatic secondary cell

manufacture equipment, including

product design, material mixture, semi-

product manufacture, finished product

manufacture, testing, etc.

2 Rolling machine 70

3 Coating machine 20

4Pulp suspending

machine5

5Liquid filling

machine5

Market

At present the secondary cell market in China increases by over 20% annually. As

the demands are growing and the imported ones cost too much, it is urgent for the

level of key technologies in China to be promoted. The Company’s special

manufacture equipment for secondary cells increase by over 80% on average

annually in sales.

Techniques

In design, elastic deformation is made to the equipment during use with cell

manufacture techniques so as to achieve best cell product quality. Additionally,

special techniques guarantee high accuracy of the equipment and realize micrometer-

level accuracy in assemblage. Highly precise essential equipment is needed during

the production of cell pole segments.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD10 million

Total Annual

ProfitUSD2 million

Annual After-Tax

Profit USD0.8 million

Introduction to


RMB￥1.02

billion Registered Capital

RMB￥590

million

Number of

Employees2,369

Number of

Technicians170



Equipment

SevenStar Huadian Group was established in December 2000 after assets

restructuring. The leading products are HIC, highly reliable, stable and precise

resistances and capacitors, quartz crystal components, magnetic materials,

electroacoustic components, microelectronic processing equipment (micro-diffusion

system, dry etching system, PECVD, quality flow controller), electric-vacuum

equipment, industrial furnace equipment and cell equipment.

The strategic essential of SevenStar Huandian Group is microelectronic components,

microelectronic assembly technology and products, as well as investment in hi-tech

industrialization mainly of microelectronic equipment. The Group has 7 product

research institutes, 3 of which are city-level technological research centers, 1 electric

component testing center which is leading in China, and the Group is the chief

councilor of China Special Electric Equipment Industry, vice-councilor of China

Electric-Vacuum Academy, vice-councilor of China Association of Electric

Component Industry, and chief councilor Branch Association of Resistance and

Potentiometer, Branch Association of Electroacoustic Component and Branch

Association of Piezoelectric Crystal.

Based on the Group’s strength in microelectronic technologies, State Development

and Reform Commission, Ministry of Science andTechnologies, Ministry of

Information Industry, Beijing Municipal Government established China Northern

Microelectronic Equipment Base in October 2001 jointly with research institutes

such as Peking University and Fudan University.



Tel +86 10 64377067 Contact Person Jin Lu

Table on Introduction of InvestmentName EMI game component

Sponsor Enterprise Beijing SevenStar Feixing Electronic Co., Ltd.

Construction Site 4 Jiuxianqiaolu, Chaoyang District, Beijing



Intentions We seek partners with mass production technologies to jointly construct EMI game

component (filter) production line with design and manufacture of 500,000

monolithic feed-through filters, circular, C-type and D-type array filters. The partner

should have techniques in design and manufacture of 55-pin array filters. Investment

will be made jointly with a negotiable proportion.

Enterprise

Potentials for

Development

China implements the compulsory EMC standards. High assembly density and high

computing speed have higher requirements for EMC. Feed-through filters assembled

with monolithic capacitors can satisfy EMC requirements with high specific volume.

The Company’s tube filters, monolithic feed-through filters and array filters will take

over some market with small size, large capacity and high reliability. With

densification of filtering connectors, tube filtering connectors will be gradually

replaced by monolithic array ones, which are the orientation of the Company’s

researches.

Product Title

Newly

Increased

Output Volume

Functions

1 Tube filter 250,000 C-type and D-type array board filter is a

new kind developed by the EMI game

component production line. With

monolithic processing, it features small

size, large capacity, easy installation and

can replace many kinds of tube filters.

The capacity can be 2.2μF with rated

current of 5A-15A and rated voltage of

50-500Vdc. 1KV-3KV high-voltage and

other series can be supplied on demand.

2Monolithic feed-

through filter200,000

3 Circular array filter 25,000

4 D-type array filter 25,000

Total 500,000

Market

EMC issues cover a large range. Filtering connectors and interface connects with

filtering functions are widely used in information and electronic products, promising

a large market for filters. China has made compulsory national standards, and will

compulsively execute 3C certification including EMC. Now it is the best opportunity

to construct EMI game component production lines. As the demands for filtering

connectors will rise sharply, who seizes the opportunities gains initiatives in the

future market competition.

At present the annual output of electric connector manufacturers is approximately

9.6 million sets with an annual output amount of nearly 1.6 billion RMB. However,

only 0.2% of the electric connectors are filtering connectors, which require

appurtenant filters of 1.2 million valued at 4 million RMB. The potential demands

will increase by nearly 100%.

Techniques Wet printing processing initiated by US ACI Company with reference to advanced

technologies abroad.

Construction Half a year

Period

Expected

Economic Benefit

Annual Sales


Total Annual

Profit

RMB￥0.25

million

Annual After-Tax

Profit

RMB￥0.21

million

Introduction to

Enterprise


billion Registered Capital

RMB￥590

million

Number of

Employees577

Number of

Technicians733

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1980s

SevenStar Huadian Group was established in December 2000 after assets

restructuring. The leading products are HIC, highly reliable, stable and precise

resistances and capacitors, quartz crystal components, magnetic materials,

electroacoustic components, microelectronic processing equipment (micro-diffusion

system, dry etching system, PECVD, quality flow controller), electric-vacuum

equipment, industrial furnace equipment and cell equipment.

The strategic essential of SevenStar Huandian Group is microelectronic components,

microelectronic assembly technology and products, as well as investment in hi-tech

industrialization mainly of microelectronic equipment. The Group has 7 product

research institutes, 3 of which are city-level technological research centers, 1 electric

component testing center which is leading in China, and the Group is the chief

councilor of China Special Electric Equipment Industry, vice-councilor of China

Electric-Vacuum Academy, vice-councilor of China Association of Electric

Component Industry, and chief councilor Branch Association of Resistance and

Potentiometer, Branch Association of Electroacoustic Component and Branch

Association of Piezoelectric Crystal.

Based on the Group’s strength in microelectronic technologies, State Development

and Reform Commission, Ministry of Science and Technologies, Ministry of

Information Industry, Beijing Municipal Government established China Northern

Microelectronic Equipment Base in October 2001 jointly with research institutes

such as Peking University and Fudan University.



Tel +86 10 64377898 Contact Person Wang Yanling

13311192193

Table on Introduction of InvestmentName New-type laser

Sponsor Enterprise Beijing Institute of Optic-electronic Technology

Construction Site Inside the enterprise CA-20 Donghuangchenggen beijie,Beijing


Circulating Funds USD80,000

Intentions

We hope to cooperate with the foreign company to set up a research, development

and production entity. The foreign company is supposed be of capital and marketing

advantages.

The foreign company can have the share of 50% of the cooperation company by

bringing in cashes, or 30% by bringing in equipment or 70% by bringing technology.

Enterprise

Potentials for

Development

1.44µm and 2.94µm YAG lasers are used widely and effectively in clinical treatment

and their demands are great inside and outside. The Institute has undertaken the

research and development of the products for many years and taken charge of many

key national science and technology tasks. Its product level has kept ahead in the

domestic market. The new laser developed recently not only fills the gap in the

country but also meets the demands in the domestic and international market.

Cooperation with the foreign company to produce the new laser will facilitate the

further exploration of the domestic and international market, thus improving

profitability.

Product Title

Newly

Increased

Output Volume

Functions

1 The 1.44µmYAG 100 1.44µm and 2.94µm lasers are those with

laser the best wavelength for human’s

absorption. They have good functions of

cutting and evaporation. In the two, that

of 1.44µm wavelength can use cheap

common optical fiber.

2The 2.94µmYAG

laser100

Market

The new laser refers to the solid laser with specific wave length, for example,

1.44µmYAG and 2.94µmYAG lasers. Its key technology has not been mastered and

no product can be made only with key technology assistance. However, the kind of

laser is used widely and effectively in clinical treatment, especially in the hospitals

above the alpha level where such equipment is installed. If we succeed in

cooperating with the foreign company with the relevant technology, we can replace

all the imported equipment and can also export them by making use of the

advantageous quality to price ratio of products inside.

Techniques

Due to its adaptation complexity and production discreteness, laser appliance system

is difficult to reach the automatic production in the world and the labor cost is rather

high. The project can make best use of the good labor resource inside for mass

production.

Construction

Periodone year

Expected

Economic Benefit

Annual Sales


Annual After-Tax

ProfitUSD300,000

Introduction to


RMB￥57.12


RMB￥10.78

million

Number of

Employees216

Number of

Technicians113

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

As one of the key research centers in Beijing, Beijing Institute of Opto-electronic











also becomes ‘the product quality supervision and inspection center of laser

equipment of the Ministry of Machine and Industry. The products of researches of

laser equipment, laser technology appliance and photoelectric technology appliance

in the center have won more than 100 prizes from the state, the ministry and the

municipal government.

Located at the downtown of Beijing, close to China Gallery and Huangchenggen

Legacy Park, the center occupies an area of 5,030 square meters with a construction

area of 8,660 square meters. Its Daxing production base has a construction area of

3,000 square meters. Its Miyun production base occupies an area of 10,000 square

meters with a construction area of 6,000 square meters.

The center sets up of several laser technology appliance research departments and

also has machine processing workshop and optic processing workshop. Its products

are popular all over China and are exported to the international market. Among

them, laser medical equipment is the product of the most kinds and most exportation

in China.



Tel +86 10 64040157 Contact Person Liang Zhiyuan

Table on Introduction of InvestmentName Manufacture of laser medical equipment and cosmetology equipment

Sponsor Enterprise Beijing Institute of Opto-electronic Technology

Construction Site Inside the enterprise CA20 Donghuangchenggenbeijie, Beijing or at the foreign

party’s site

Total Investment USD 0.6 million Investment With Fixed Assets USD 0.45 million

Circulating Funds USD 0.15 million

Intentions

We hope to establish a joint venture and to cooperate with foreign companies outside

or inside. The foreign company is supposed to be capable of marketing and

technology serve in terms of laser medical equipment and cosmetology equipment.

The foreign company can have 70% shares of the joint venture by bringing in cashes

or equipment. We can also set up a cooperation company. If inside, the foreign

company can have the share 30% by bringing in technology and if outside, the

foreign company can have the share of 80% by bringing workshops and equipment.

Enterprise

Potentials for

Development

Laser medical and cosmetology equipment is the high tech product used in clinical

treatment and beauty parlor with a great market potential and especially great

demands in the international market. The enterprise has undertaken the research and

development of this kind of product for more than 20 years and taken charge of

many key national science and technology tasks and its product level has kept ahead

inside. Cooperation with the foreign company to produce laser medical and

cosmetology equipment will facilitate the further exploration of the domestic and

international market, thus improving profitability.

Product Title

Newly

Increased

Output Volume

Functions

1 CO2 treatment laser 300 Laser’s selective absorption makes it

extremely advantageous in medical and

cosmetology appliance. It has some

characters, such as no scars left and quick

recovery.

2 YAG treatment laser 200

Market

The laser medical treatment appliance is exploited early in China. Because of

great improvement of manufacture level and quality of laser medical equipment as

well as the lower price than those of the western countries, the medium and low level

medical equipment are of much competitiveness in the international market. In the

recent years, they have been exported to foreign countries and exportation has been

increasing. Just like the situation in the world, the CO2 laser and the YAG laser are

the major medical lasers in China. With regard to the sales ratio of each kind of

treatment laser, the first one is CO2 treatment laser with all types of powers,

accounting for 37%, the second is YAG treatment laser, 21% and the tow account for

58% of the total of the laser treatment equipment in the market. Therefore, there is a

large market capacity in the domestic and the international market, especially in the

cosmetology market.

TechniquesThe manufacture of laser medical equipment is required to be precise with key parts

made in the closed environment and common parts purchased in the international

market.

The equipment is of a good quality to price ratio. Its quality reaches the same level

as that in the same period in the international market but the price is only 1/3 to 1/5

of that in western countries.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD 2 million Total Annual Profit USD 0.6 million

Annual After-Tax

ProfitUSD 0.30 million

Introduction to


RMB￥57.12


RMB￥10.78

million

Number of

Employees216

Number of

Technicians113

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

One of the key research centers in Beijing, Beijing Institute of Opto-electronic











also becomes ‘the product quality supervision and inspection center of laser

equipment of the Ministry of Machine and Industry. The products of researches of

laser equipment, laser technology appliance and photoelectric technology appliance

in the center have won more than 100 prizes from the state, the ministry and the

municipal government.

Located at downtown of the city, close to China Gallery and Huangchenggen Legacy

Park, the institute occupies an area of 5,030 square meters with a construction area

of 8,660 square meters. Its Daxing production base has a construction area of 3,000

square meters. Its Miyun production base occupies an area of 10,000 square meters

with a construction area of 6,000 square meters. The center sets up of several laser

technology appliance research departments and also has machine processing

workshop and optic processing workshop. Its products are popular all over China

and are exported to the international market. Among them, laser medical equipment

is the product of the most kinds and most exportation in China.



Tel +86 10 64040152 Contact Person Liang Zhiyuan

Table on Introduction of InvestmentName Double-Crane Pharmaceutical Co., Ltd. Beijing Daxing Industrial Park

Sponsor

Enterprise

Double-Crane Pharmaceutical Co., Ltd (Beijing).

Construction Site Beijing Daxing Industrial Development Area

Total Investment USD10 million

Intentions

Desire to set up joint venture with foreign partners by means of inviting foreign

investment to realize the internationalized and global developmental strategy and

quicken the modernization of China’s Pharmaceutical industry.

1. Introduce the best-selling products from internationally advanced medicine

corporation, fill up the domestic market deficiency in medicine (pharmaceuticals) and

meet the medicinal demands that are rapidly developing.

2. Absorb the advanced management experience and pharmaceutical technology of

overseas enterprise, esp. in medicinal chemicals, infusion products and natural

medicine, to promote the Chinese level of existing medicinal preparation.

3. By localizing the medicinal products with internationally famous brand and relying

on the Double Crane Pharmaceutical existing network marketing channels distributed

across China, develop the Chinese market together and raise the market share of

international trademark products at home.

Enterprise

Potentials for

Development

1. Double-Crane Pharmaceutical Co., Ltd (Beijing) Ranks the tenth among the Chinese

medicinal enterprises, as a large-scale, modernized group integrating the Science,

industry and commerce in one body

2. Been listed on Shanghai Stock Exchange in 1997, has solid financing operation

capability.

3. Enjoy the preferable reputations and trademark advantages on Chinese market.

4. The project is in line with the pharmaceutical industrial policies and the direction

“developing the medicinal industry” encouraged by Beijing Municipal Government.

5. Compared, in the biomedicine field, with other cities or province, Beijing is

obviously superior to them in the technology, talents and market aspects.

Product Building scale Land area Remarks

Industrial Park 133200m2Absorb funds at home and abroad by joint

venture or cooperation.

Prospect

In recent years, Chinese medicinal industry has developed at the speed higher than that

of GDP. The Chinese bioengineering and new medicine industry entered into the high-

speed development period in 2000 and 2001. Total medicinal industrial output value in

2001 reached 277.8 billion RMB yuan, sales income coming to 209.8 billion RMB

yuan and the total profit approaching 17.6 billion RMB yuan. China has become one of

the medicine markets that grow the most rapidly in the world.

Since “the Ninth Five-Year Plan” , Beijing as the innovation center of China, has

comprehensively promoted the development of bioengineering and new medicinal

industry. The production scale is highly enlarged, annually average increase rises by

over 20%.In 2001, the total medicinal industrial output value amounted to 10 billion

RMB yuan and sales revenue 13.5 billion RMB yuan, breaking the past record (10

billion RMB yuan).

The bioengineering and new medicine industries are Beijing key development industry

in the “Tenth Five-Years Plan”, being potentially captivating in both national

developmental direction of industry and the market prospects.

Construction

Period2 years

Introduction to

Enterprise

Total Assets RMB￥3690 million Registered CapitalRMB￥147millio

n

Number of

Employees16924

Number of

Technicians3167

Level of

Technology

World level or

advanced in China

Technological

Level of

Equipment

1980s and 1990s

Double-Crane Pharmaceutical Co., Ltd (Beijing), listed on the market in 1997, has

since established 23 holding companies of various kinds in ten provinces, strategically

built four mainstream businesses as development supports: the biggest transfusion

supply base, the leading production base of synthetic antimicrobial, the innovation

base of natural medicament and the nationwide medicine sales service system.

Double Crane Pharmaceutical has been a large-scale modernized pharmaceutical

enterprise with its main business covering new medicine development, preparation

production, medicine marketing and medicine equipment. Its main economic

indication is among the top ten in China. And sales revenue surpasses USD460 million,

setting up a company’s record.

Tel +86 10 65060077 Fax +86 10 65072838


Name Projects of medication technology renovation in birth control and reproduction

health

Sponsor Enterprise Beijing ZiZhu Pharmaceutical Co., Ltd.

Construction Site Sanjianfang East Road, Chaoyang District, Beijing

Total Investment USD7.7millionInvestment With Fixed Assets USD6.3million

Circulating Funds USD1.4million

IntentionsInvesting with cashes, without proportion limitation. Various types of joint venture

and cooperation can be chosen.

Potentials for

Development

The productions of this project can compare favorably with the same category of

overseas products in technologies and qualities. After passing the GMP conformity

certification as well as ISO9000 and ISO14001 certification of the international

authorized institutions, our products will have a “passport” to approach the

international market, and then exploit a new market territory.

Mifepristone tablets: going on the market in 1992, it padded the blank in domestic

medical market.

Levonorgestrel tablets: going on the market in 1998, it is the first kind of emergency

contraceptive. Because of providing many women a safe, effective, and simple

contraception method, it possesses about 95% of domestic market share. And the

long result, short result, and quick result contraceptives produced by our company

are decided as pointing varieties by the National Birth Control Committee.

Gestrinone capsules: going on the market in 1998, it is the first drug used for

endometriosis made inland, and its price is more than 55% lower than those

imported ones.

Misoprostol tablets: going on the market in 2000, it can substitute for the similar

kinds of production imported, so that a great deal of foreign exchange is saved,

which can promote the new technology development in the realm of medication for

birth control.

Product Title

Newly

Increased

Output Volume

Functions

1Gestrinone tablets

7 million

granulations

Applied in treatment of endometriosis

2

Levonorgestrel tablets 60 million

tablets

Long result and short result emergency

contraceptives, with easy administration

low side effects and high security.

3

Compound

Levonorgestrel tablets

1.1 billion

tablets

Mifepristone tablets 11 million Anti-early pregnancy drug which has

4tablets

the effect of terminating early

pregnancy.

5 Misoprostol tablets 6 million tablets A drug that can terminate early

pregnancy.

Market

With the development of the population quality and female status, more and more

people put more attention to birth control and reproduction health. The oral

contraceptives, because of their easy taking methods, safety, good effects, and

avoiding operations in hospitals, the sales volume of them has shown an ascending

tendency these years.

At present, there are about 300 million women of childbearing age in our country. It

is predicted that the market demand of short effect contraceptives is 2.4 billion

tablets every year, of emergency contraceptives is 180 million tablets, and of

misoprostol is 30 million tablets every year, and drugs applied in curing

endometriosis is 0.4 billion granules. It is clear that domestic market is every huge.

Further more, most of the women of reproductive life in the wide countryside

haven’t begun to use the above-mentioned contraceptives nowadays. With the

development to the village market, the demand of market will become greater and

greater.

With the profound permeation of birth control as a fundamental State policy, and

with the development of domestic and overseas markets, the productions and

medications for birth control and reproduction health have great market prospects.

Techniques

The main technique renovations in this project include:

1. Technique renovation of polymerization procedures for the raw materials

(the G’s reagent):

Before renovation: ethylene gas—dissolve pot (-45℃)—elevated pot (-

45℃)—format pot.

After renovation: Chloroethylene gas—format pot.

Characteristic: the refrigeration system will not be used after getting rid of

the deep condensers in dissolve pot and elevated pot, so the energy

consumption is decreased.

2. Technique renovation of lithium ammonia procedure of raw materials:

We choose liquid state CO2 as refrigeration medium instead of Cacl2 salt

water.

3. Technique renovation of fermentation procedure of raw materials:

We will adopt advanced technologies and equipments, realize

automatization and achieve intelligent control by using computers.

Construction

Period1 year

Expected

Economic Benefit

Annual Sales

IncomeUSD60 million Total Annual Profit USD 5 million

Annual After-Tax

ProfitUSD 4 million

Introduction to

Enterprise



RMB￥380

million

Number of

Employees975

Number of

Technicians329

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990’s

Beijing ZiZhu Pharmaceutical Co., Ltd. occupies an area of 122,000 m2, among

which construction area is 60,000 m2. In 1999, there are 7 workshops and 8 forms of

preparation passing the national GMP certification one-off. The company passed the

ISO9001 certification in 2001. And the company has four series of productions:

preparations for birth control, preparations for reproduction health, modern

ophthalmological preparations, and royal jelly and related preparations.

In the production and development of series of drugs for birth control, there has

formed a considerable scale and predomination in our company. The oral

contraceptives, oral abortion drugs, and emergency contraceptives we produced have

possessed a high ratio in domestic market share. Our enterprise is the greatest

scientific technology and manufacture base appointed by the National Birth Control

Committee and the SFDA.

Remarks

The workshops and the basic communal establishments for power supply, heat

supply, sewage treatment and etc are self-contained, which can guarantee the

implement of the project.

Tel +86 10 65761991 Contact Person Yin Xuying

Table on Introduction of InvestmentName Massive manufacture of oral liquid of biological preparation


Construction Site SanjianfangDong Road, Chaoyang District, Beijing City



IntentionsShares controlled by the Chinese side, and various forms of joint investments and

cooperation can be accepted.

Potentials for

Development

1.The production is a kind of high-tech product with high additional value. The

company has the patented technology of extracting active protein liquid from live

scorpions, which can solve the problems of poor extraction amount and low activity

of the production extracted by the traditional techniques, so the company has an

obvious technological superiority.

2.The product suits the increasingly demands of the health care market so it has a

nice market prospect.

Product Title Annual Output Functions

Oral liquid of

biological

preparation

1,000,000

bottles

The oral liquid of the production has

preferable protective effects such as

renovation and activation to the body

cells, as well as the efficacy of enhancing

the immunity.

Market

It has been two thousand years since dried body of scorpion being used as medicine

in China. The production of active protein extracted from living scorpion has been

proved by many studies to have the effects of activating cells, improving

microcirculation and enhancing human immunity, so it has a wide market prospect.

Nowadays, many people are in a sub-healthy status and have lower immunity

because of the increasing stress from their job and their social lives. There are about

70% of Chinese people in the status of sub-healthiness. The demand for the

production of the oral liquid in Chinese market will reach 13milllion bottles if there

are only 1% of the sub-healthy people taking one bottle of the production.

Techniques By means of the patented technology of extracting the active protein liquid from live

scorpions, we extract the active protein components from scorpions and prepare a

kind of liquid of certain proportion together with other base solutions, so the

extracted protein liquid not only has a high activity but also can be restored for a

long time.

Technological line: unfreezing protein liquids-separating liquidity protein-

preparation of semi-manufactured products- automatic pouring and packing- finished

products-package- quality inspection- putting in storage- leaving factory.

Construction

PeriodTwo years

Expected

Economic Benefit

Annual Sales


Annual After-Tax

ProfitUSD2 million

Introduction to

Enterprise



RMB￥380

million

Number of

Employees975

Number of

Technicians329

Beijing ZiZhu Pharmaceutical Co., Ltd. occupies122,000m2, among which

construction area is 60,000 m2. In 1999, there are 7 workshops and 8 forms of





Remarks

The workshops and the basic communal establishments for power supply, heat

supply, sewage treatment and etc are self-contained, which can guarantee the

implement of the project.

Contact Telephone +86 10 65761991 Contact Persons Yin Chuying, Liu Yinxiang

Table on Introduction of InvestmentName Massive manufacture of raw materials of active protein liquid


Construction Site Production base for raw materials of active protein liquid, ZiZhu biologic science

and technology Co., Ltd. (Shunping, Hebei Province)



IntentionsShare controlled by the Chinese side, and various forms of joint investments and

cooperation can be accepted.

Potentials for

Development

1.The production is a kind of high-tech product with high additional value. The

company has the patented technology of extracting active protein liquid from live

scorpions, which can solve the problems of poor extraction amount and low activity

of the production extracted by the traditional techniques, so the company has an

obvious technological superiority.

2.The product suits the increasingly demands of the health care market so it has a

nice market prospect.

Product Title Annual Output Functions

Raw materials of

active protein liquid 10,000,000ml

The oral liquid of the production has

preferable protection effects such as

repairing and activating the body cells, as

well as the efficacy of enhancing the

immunity.

Market

Both the officinal and dietary value of scorpion are rather great, and the quantity of

scorpion demanded around the world is more than 500 tons each year while the

annual production all over the world is only 400 tons, among which there are only

100 tons of the production manufactured in China. The most valuable part of

scorpion is the protein liquid extracted from the abdomen of scorpion. The output of

the protein liquid is poor because that the traditional method of extraction is rather

complicated and the protein liquid extracted by this means has a poor activity.

The productions manufactured after the implementing of this project are mostly for

sale abroad, and there is a nice and wide prospect in both the domestic and overseas

markets.

Techniques By means of the patented technology of extracting the active protein liquid from live

scorpions, the company has the technique of drawing out the protein liquid from the

living organisms directly, then extracting the most active components from the liquid

by low temperature separation process, and preparing the extracted components

together with other base solutions to form a kind of liquid in a certain proportion.

Technology line: living scorpions-extracting protein liquids- quick-freezing protein

liquids- cold storage of protein liquids.

Construction

PeriodTwo years

Expected

Economic Benefit

Annual Sales


Annual After-Tax

ProfitUSD750,000

Introduction to

Enterprise



RMB￥380

million

Number of

Employees975

Number of

Technicians329

Beijing ZiZhu Pharmaceutical Co., Ltd. was established in 1969, and moved to

another place and reconstructed in 1995. It occupies122,000m2, among which

construction area is 60,000 m2. In 1999, there are 7 workshops and 8 forms of





RemarksConstruct a production base for raw materials of active protein liquid in ZiZhu

biologic science and technology Co., Ltd. in Shunping, HeBei Province.

Tel +86 10 65761991 Contact Person Yin Chuying, Liu Yinxiang

Table on Introduction of InvestmentName To introduce advanced equipment of recycled paper

Sponsor Enterprise Beijing No.7 Paper Mill

Construction Site 126 Binhe Road, Tongzhou District, Beijing

Total Investment USD46.98millionInvestment With Fixed Assets USD40.39million


Intentions

1. To cooperate with a partner with investment ability and experience to produce

the recycled paper to upgrade the mill’s technology.

2. The partner can hold the company. 3. Partner shall be able to plan overall the

settlement of the mill’s staffs.

Enterprise

Potentials for

Development

Enjoying the advantages of trademark, sales market, and preferential policies

concerned.

Product Title Newly Increased Output Volume

1 Copy paper 20000

2 hectograph paper 30000

3 Wrapping paper 80000

Market The world paper industry has a stable growth tendency. The global consumption in

2000 was about 325 million tons, and the production output, about 328 million tons.

The sale volume of paper industry of all countries amounts nearly to USD300

billion. It is estimated that the consumption of paper and paperboard will be

increasing annually by 2.5%~3% in the following years.

China, with the highest growth speed and annual increase rate up to 10.6%, has been

the second largest consumer and the third largest producer of the paper and

paperboard in the world. But the per capita consumption of China is only half of that

of the world, so there is great potential in the Chinese paper market. The Chinese

production output of the paper and paperboard in 2005 is estimated to increase up to

40 million tons and its annual consumption per capita, up to 34~38㎏. According to

consumer’s types the consumption will be as such, 35% used for packing; 43%, for

information transferring; 15%, as productive resources of industry and farming.

Newsprint will increase to 2.3 million tons and the printing and writing paper, up to

10 million tons and packing paper to 4.6 million tons.

The utilization of waste paper as renewable resources helps greatly to save the

timber and industrial chemicals. Recycle of one ton waste paper makes fine paper of

850㎏, and so saves timber of 3 M3, water of 100 M3, chemical raw material of 300

㎏, coal of 1.2 ton, electricity of 0.6 kWh. The global waste paper recycled in 2001

amounted to 130 million tons. Recycled rate of waste paper in America and some

European countries reaches 60%, but Chinese recovery rate is less than 24% and

availability is less than 35%. Hence it is urgent and necessary for China to produce

and use recycled paper.

Techniques

Using urban waste paper for raw materials, classification and selecting, pulping,

filtering and purifying (choice paper box patent), multilevel and multi-strand silica

removal, non-driven washing and dehydrating (patent), proteolysis with hydrogen

sulfide (patent). Refibred high-charged paper synchronized molding system,

condensing dehydration, after sizing treatment (static elimination), delustering,

winding

Construction

Period1. Recycled official business paper 2.5 years. 2. Industrial packing paper 2years.

Expected

Economic Benefit

Annual Sales


Annual After-Tax


Introduction to

Enterprise



RMB￥23.61

million

Number of

Employees1819

Number of

Technicians52

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1980s

Beijing No.7 Paper Mill, established in 1958 and located at 126 Binhe Road,

Tongzhou District, Beijing, lies 25 kilometers from Tian’anmen Square. It boasts the

superior geographic position and traffic conveniences. The Mill is a modernized

paper manufacturer equipped with solid technical forces, advanced production

facilities, and abundant managerial experience. Its main products consisting of

scientific cultural paper, industrial wrapping paper and everyday paper, each of

which has varieties of specifications and kinds ranging from18~520g/㎡ . “Snow

Lotus” Brand is distributed at home and abroad, enjoying high reputation. It was

named “International Elaborate Work” in 1997 by Eurasia Commercial Trade

Organization. The “Snow Lotus” trademark was awarded Beijing “Famous

Trademark” in 1998. the Mill is the first at home to introduce the environment-

friendly recycled office paper of the “ Queen of Flowers” brand

Remarks 1. Cooperated with Tongzhou District Environmental Protection Bureau to

transform and better its existing water treatment equipment and to utilize

stopwaters to produce by combining water network with Tongzhou District

Water Treatment Works.

2. The enterprise has now complete workshops and public facilities such as power,

water, heat and sewage systems, which will guarantee successful

implementation of this project.

Tel +86 10 61563101 Contact Person Zhang Baofa

Table on Introduction of InvestmentName Environmental protection company with joint investment

Sponsor Enterprise Beijing Jingcheng Environmental Protection Industry Development Co., Ltd.

Construction Site Jingcheng Environmental Protection Industry Base, Kangzhuang, Yanqing, Beijing



Intentions

Seek the world-known environmental protection company with mature project

design of household waste and dangerous waste (including medical waste and

dangerous industrial waste), construction and environment facility operation

experience and strength, to establish a joint venture of environment protection

technology, undertaking the project design of solid waste disposal, construction and

environment protection facility operation and key and core equipment manufacture.

The investment ratio about cashes, equipment and technology: the ratio of Chinese

company is 60% and the foreign company 40%.

Enterprise

Potentials for

Development

At present, the development of environmental protection industry is facing the

unprecedented great opportunity. The national environment legislation, strengthening

of implementation of laws, acceleration of urbanization, marketization and

industrialization of environment protection, Beijing’s success in bidding for 2008

Olympic Games, the western region development strategy and west-gas-to-the-east

project, all have a driving effect on the environment protection market and the

prospective and development of environment protection is promising. During the

Ninth Ten-Year Plan, 360 billion RMB was invested in environmental protection

and the environmental protection industry increased by 15% that is higher than the

growth rate GDP. It is estimated that the total production value of environmental

protection industry in China will reach 200 billion RMB by 2005, among which that

of environmental protection equipment will be 55 billion accounting for 27.5%, the

production value comprehensive resource use production value will be 95 billion

RMB, 47.5% and that of environment service will be 50 billion RMB, 25%. During

the Tenth Five-Year Plan, the growth rate of environment protection industry will

keep 15%.

Product Title

Newly

Increased

Output Volume

Functions

1Household waste

transfer kit5 sets

It includes collection, transfer,

classification, household waste, compost,

incineration, power generation and filling

in lands, the project design of

comprehensive operation system and

2 Household waste

incineration kit

3 sets

construction and key equipment

manufacture.

3

dangerous waste

comprehensive

disposal kit

8 sets

It mainly refers to harmless disposal of

medical waste, industrial waste and waste

organic liquid.

Market

With China’s rapid economic growth, environment issues gains more and more

concerns, the environment protection industry grows rapidly and the environment

protection equipment for city waste and dangerous waste has a great market capacity.

1. In 1999, original waste transferred in 668 cities in China

amounted to 120 million tons, the disposal rate of household waste is

about 60% and 40% of the waste is placed near the city without any

disposal. In the past years, the amount of waste placed there whithout

disposal has reached 6 billion tons and it occupies an area of 500 million

m2. In five years, the investment cost of waste disposal facility will

amount to 100 billion RMB and the operation cost will be 25 billion

RMB per year.

2. 47 large and medium-sized cities in China have been identified

as the first pilot cities of centralized medical waste disposal. 10 billion

RMB will be invested in Beijing, Shenyang, Wuhan, Guangzhou to build

centralized disposal center of dangerous waste.

Techniques

The household waste transfer equipment kit mainly uses screening, cracking,

selection and compressed transfer and reaches the advanced level inside. The

household waste incineration equipment kit mainly uses reciprocating grate

incinerator and the technique for electric generation and it reached the advanced

level inside. The dangerous waste comprehensive disposal equipment kit mainly uses

rotary kiln incinerator and it reaches the advanced level inside.

Construction

Period

It is estimated that established of the joint venture and technology improvement will

be finished and it will reach the production capacity designed by the end of 2003 and

production and sale will reach the scale designed by 2005.

Expected

Economic Benefit

Annual Sales


Annual After-Tax


Introduction to


RMB￥83.734

million Registered Capital RMB￥61 million

Number of

Employees260

Number of

Technicians60



Equipment1990s

Beijing Jingcheng Environmental Protection Industry Development Company

develops mainly in solid waste disposal equipment and kit project, sewage disposal

equipment and kit project, gas station equipment and kit project, environment

protection technology service and environment protection project investment. it

provides the customers with safe solution of environment protection issues in full

ranges, such as design, manufacture, equipment kit, installment and checkout and

operation

Remarks

The company has the workshop and good public facilities such as power supply,

water supply, heating and sewage disposal and it assures smooth operation of the

project.

Tel +86 10 67184910 Contact Person Hou Zibo

Table on Introduction of InvestmentName The membrane industrialization base

Sponsor Enterprise Beijing Institute of Film Machine

Construction Site 2 Tuanjiehubeilu, Chaoyang District, Beijing



Intentions

The foreign company invest USD5.54 million and the Chinese side brings in

equipment (valued at about USD700,000), technology and market resource. The tow

sides together establish a joint venture.

Enterprise

Potentials for

Development

It has been 30 years since Beijing Institute of Film Machine carried out the research,

development and production of optic membrane technology. It owns stable technical

basis and wide market resource. Its products include those of each optical spectrum

segment, such as ultraviolet light, visible light and near-infrared light. It can

manufacture interference filters of hard membranes and narrow-bands, interfere

ending filters, anti-reflection films, high-reflecting films, bandpass optical filters,

density filters and other kinds of optic membranes. Through introduction of capital

and use of current international advanced technology and devices, optic membrane

parts of international advanced level have been turned out in mass production and

optic membranes industrialization has been realized, which renders the products

highly competitive. No domestic enterprise deals with this project so far.

Product Title

Newly

Increased

Output Volume

Functions

1 Color wheels 100,000 The optic capacity, dynamic heat

resistance, chemistry, the mechanical

property and other aspects of the optic

membrane products made in the project

are better than those made traditionally.

At the same time, it applies automatic

production, thus improving consistency of

product quality and reducing costs.

2 Polarizing prisms 50,000

3Color selective

filters100,000

Market Photo electronic technology is the key one of future information technology

development and this industry will be the high-tech mainstay one in the 21 st century

with great market potential and rapid increasing value. At present, photo electronic

technology develops into a mature phrase. With the maturity and development of

liquid crystal display and DLP display, the projection product will be the rapidest

developing kind with largest increase rate and the demands in the market for optic

membrane parts will rise. As for the projector, the number of the parts needed each

year exceeds 8 million. Besides, the current market capacity has exceeded $1 billion

because the rapid market development of monitor technology, medical instruments

and devices, environmental protection monitors and other many fields, boost the

market of optic membranes all over the world.

Techniques

The project applies continual coating technology of highly effective magnetron

sputtering: sputter the niobium layer and the silicon layer and oxidize the membrane

layer with antozone in the oxidization room, and then the niobium pentoxide and the

silicon dioxide membrane layers are gotten and all kinds of membranes are made

with membrane thickness of power-time control. The membrane layer gotten is

advantageous in high density, weak absorption and hot stability and the product

capacity is obviously better than that made by the way of traditional vacuum

evaporation method. It can be manufactured in mass, automatic and continuous

production, thus remarkably improving its competitiveness.

Construction

Period

The workshop and production condition maintenance system are under construction

at present, and they will finish by May 2003. After the capital arriving, purchase of

new equipment will take half a year. It will take totally one year for installment,

checkout, production attempt and re-checkout.

Expected

Economic Benefit

Annual Sales


Annual After-Tax


Introduction to

Enterprise



RMB￥13.05

million

Number of

Employees161

Number of

Technicians92

Level of

Technology

Advanced in

China

Technological

Level of

Equipment

1990s

Beijing Institute of Film Machine is the research center of film making devices and

film audio and visual check manufacture and also the research center of micro

technology devices manufacture. After several years’ development, Beijing Institute

of Film Machine has the capacity of developing high-tech products combining

precisely mechanical, optic, electronic and computer technology. Now it mainly

undertakes the development, research and production of five major kinds of

products, such as film making devices, micro kit devices, precise measure

instruments, optic membrane technology products, photo processing and information

processing with computer, etc.

RemarksIt can ensure smooth operation of the project with the workshop and good public

facilities such as water supply, power supply, heating and sewage disposal.

Tel +86 10 65823854 Contact Person Zhao Futing

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