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   Key Projects 
Project Name:
Beijing HuaDu safety food Project
Project Owner:
Beijing HuaDu group limited liability corporation was founded in 1994, whose former is Beijing farming, industry and business general corporation. The HuaDu group takes the operation of modern farming manufacture, food processing, seed making and animal health protection as the main operation. Till the December 31st of 2003, the total capital of HuaDu group is 1.56 billion yuan. The group was awarded the agriculture industrialization and national grade important leading enterprise. And it passed the quality management authentication of HACCP and ISO9001(2000). During the investment of the Project, a new subsidiary company-HuaDu developing limited liability company will be set up, which is developed by the HuaDu and will be the executive entity of the Project.
Project intention
The HuaDu group will develop the main operation by inner resource rebuilding and collection of excellent capital within the group. At the same time, the group aims to import powerful shareholders dealing with breeding, flesh food processing enterprises home and abroad to make HuaDu group the leading enterprise in the operation of breeding and flesh food processing within 3 to 5 years of development.

Project brief
The HuaDu group plans to construct the two operation chains of live pig industrialization and flesh chicken industrialization based on the present foundation. The construction sites of the Project are distributed in Beijing, Tientsin and HeBei province. The total construction period is 3 years, among which the construction period of live pig industrialization chain is 3 years, that of flesh chicken industrialization is 1 year.
After the completion of the live pig industrialization Project, a live pig industrialization chain will be formed, which is from original boars breeding, ancestor boars breeding to parent boars breeding, business pigs feeding, to live pigs slaughter, body division and cooked-food processing.
After the live pig industrialization Project, the amount of pigs on hand will be 258216 per-year, the boars on sale will be 22080 per-year, among which original boars 3360, ancestor boars 18720.The body meat for sale will be 14875 tons per-year, the divided meat for sale will be 8226 tons per-year, and all kinds of cooked food for sale 10000 tons per-year.
After the completion of flesh chicken industrialization Project, a complete industrialization chain will be formed, which includes AA parent seeding chickens breeding, business young chicken hatching, business flesh chicken feeding, flesh chicken slaughter and division and cooked-food processing .
After the Project of flesh chicken industrialization, the purchased AA parent strong and young chicken 602727 sets per-year, feeding outdoors business flesh young chicken 79,750,000, slaughtered flesh chicken 74,970,000, manufacturing flesh raw chicken 121257 tons, manufacturing cooked-food on flesh chicken 54109 tons per-year.
The total in vestment is 1,974,130,000 yuan, among which the construction investment is 1,229,840,000 yuan, the interest during the construction is 16,740,000 yuan, the floating capital is 727,550,000 yuan.

The basic condition of financing
1.The HuaDu group wants not only to import capitals, but also to import advanced manufacturing technique and management system on farming, flesh food processing. So the means of investment will be financing by stock right.

2. In order to import advanced manufacture technique and management system, the investors are demanded to be powerful enterprises home and abroad dealing with farming and flesh food processing.
3. The HuaDu group agrees to abandon absolute stock control, and adopt the relative stock control in order to realize multi-element of the stock rights.
The financing scheme
The initially planned stock right financing scheme of development of HuaDu is as following:
The HuaDu group becomes a shareholder mainly by practicality, the amount is about 0.4 billion yuan, which takes 40 persent of the stock ratio; the ShouChuang group and other social legal persons buy shares with cash , the primary amount is about 0.25 billion yuan, which takes 25 percent of stock ration; the stocks held in the employee is about 10 percent , the amount is about 0.1 billion yuan; the planned imported investment of Project will be cash, and the stock ratio is about 25 percent, the amount is about 0.25 billion yuan.

In order to promise the long-term and steady operation of the enterprise, the shareholding period of the investors should not be less than 10 years, and the stock right of the opposite side can't be demised within the 10 years. Within the period of 10 years, if the investor intends to increase the stocks, he must be supported and agreed by the directorate. After 10 years of steady operation, if the investor intends to decrease the stocks, he must also get the agreement of the directorate and execute it according to the relative items in the .
The benefit distribution
The investment return is realized by benefit division after tax. After 10 years of shareholding period, the return can also be realized by the means of remising the stock right. And the detailed investment return time will be determined by the operation situation.
Explanation of relative policies
1. The self-produced agricultural products distributed by the unit and individual of agriculture manufacturer can avoid the value-added tax ( the agriculture manufacturer includes the people dealing with agricultural production; the agricultural products: are the initial products of planting, breeding, foresting, farming and water industry etc.)
2. The national general tax bureau publicized five favorable policies related to the agriculture tax on January 20th of 2004;
3. "Jmplement notions about supporting agricultural industrialization with credit in Beijing"
4. The ministry of finance and national general tax bureau bring forward: the poultry enterprises avoid the income tax in 2004;
5. Authorized by the State Department , the office bureau of State Department released the in these days.
 


 
   
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