Laiyang Sanwei Co

Introduce Laiyang Sanwei Economic and Trade Co. Limited

Laiyang Sanwei Economic and Trade Co. Limited (LYSW) is a manufacturer which involves hand made embroidery, tapestry and handicrats etc. It is registered on February 2001 in Laiyang Foreign-Oriented Industrial Zone, Laiyang City, Shandong Province, China. Laiyang Foreign-Oriented Industrial Zone implements the close type management and has established independent environment of investment and development which meets the requirements of the rules of WTO and international practices. LYSW already has 40 thousand square meters lands, 3000 m² workshops. The company is also ready to build another 5000 m² workshops.

LYSW now intends to import foreign investment to cooperate with the processing of foodstuffs, handicrafts, garments, manufactory, develop new products; or the processing with material supply of foodstuffs, handicrafts, garments, manufactory. The company also welcome investors from foreign countries to rent our office and workshops to establish solely foreign owned company in China. LYSW is ready to carry out economic and technical cooperation more extensively with other countries in the world on the basis of equality and mutual benefit. In order to make foreign investors know the cooperative intention of LYSW, we compiled and printed this information for your kind reference. LYSW welcome foreign investors to contact or visit us to discuss the INTEND PROJECTS, the COOPERATION FORM, the INVESTMENT BY EACH SIDE, the RAW MATERIALS NEEDED, the MAIN SALES MARKETS.

1. INFRASTRUCTURE OF LAIYANG CITY

Laiyang City, located in the east of Shandong province, is one of the coastal cities that firstly open to the outside world in China. It holds the key position in land transportation in Shandong peninsula. It’s 100 kilometers from both Qingdao and Yantai Airports and Seaports (Qingdao Port is the second largest container port in China) respectively. The Lancun-Yantai Railway has three stations within the boundaries of the city. Seven highways at national and provincial level run through its administrative areas, with Yantai-Qingdao top-grade highway cutting through its city properly. The exceptional transport advantages made Laiyang become an important distributing center in Shandong Peninsula.

Laiyang City has a sufficient supply of water and electricity and convenient communication facilities. The program-controlled telephone renders and Internet easy and timely contacts with more than 100 countries and regions in the world, so it is an ideal place for businessmen at home and abroad to cooperate with investment.

Laiyang has already attracted investors from the U.S., Korea, Japan, Singapore, Swiss, Hongkong and Taiwan etc.

2. INDUSTRIAL DIRECTORY

According to the related national regulations on foreign investment and industrial policy, the following foreign-invested industries will be greatly encouraged in Laiyang:

1 Foodstuff, which mainly form four pillar industries of vegetable, fruit, animal-husbandry, grain and oil.

2 Machinery, which improve the processing level and ability of diesel engine, cylinder, construction equipments, food processing machinery and automobile fittings.

3 Electronics, which develop electronic processing introducing the projects of fixing and processing of electronic and household appliances.

4 Fruit, forestry and animal husbandry, which introduce fine varieties of fruit, vegetable, flower and tree from abroad to establish production bases with large area and output.

5 5 Handicrafts and , which develop the processing of handicrafts and garments or the processing with materials supply.

3. PREFERENTIAL POLICY

Laiyang city enjoys the relevant policies of the coastal opening cities, which mainly include:

The productive foreign investment enterprises with a term of more than 10 years shall pay reduced income tax at 24%, and in the 1^st year and the 2^nd year starting from the profitable year, the enterprise income tax is exempted and from the 3^rd year to the 5^th year, the income tax of enterprises will be half reduced.

As for the productive foreign investment enterprise, its technical and intellectual-intensity projects, those with foreign investment of above 30 million USD, those with long term returning and those relating to power and traffic may pay reduced income tax at 15%.

To all enterprises registered in Laiyang Foreign-oriented Industrial Zone during the first 3 years of its establishment, the local portion of the VAT shall be returned at 100% in the 1^st year and 50% in the 2^nd year, and the urban infrastructure completing fee and the basic educational charge shall be also exempted.

Upon expiration of tax exemption and reduction, the products export enterprises with annual export of products reaching more than 70% of its whole production value may pay reduced enterprise income tax at half of the current tax rate.

Upon expiration of tax exemption and reduction, the enterprises valuated as advanced technical ones may prolong its tax reduction at half for another 3 years with approval of the taxation authorities.

For those enterprises whose profits are reinvested into the same enterprises to increase the registered capital or taken as funds to set up other foreign-invested enterprises and the operation duration is no less than 5 years, if the investors apply and the taxation authority approves, 40% of the income tax paid for the reinvested enterprises can be returned. For enterprises whose profits are reinvested to establish or extend export-oriented or advanced technical ones, all the income taxes for reinvestment can be returned.

Whether the profits gained by the foreign investors from the foreign-invested enterprises are remitted abroad or not, the income tax is exempted.

4. COMPANY PROJECT BRIEF (10 Thousand US$)

1.PROJECT UNIT BRIEF

COMPANY NAME

Laiyang Sanwei Co. Limited

CONTACT ADDRESS

P.O.Box 851(Newspaper Box 851), Tianshan Road, Dongshou, Laiyang city, Shandong, P. R. China 265200

CONTACT PERSON

Liu Weihua

TELEPHONE

86 535 3365537

FAX

86 535 3365538

sanwei16@yahoo.com.cn

EMPLOYEES

TECHNICAL STAFF NUMBER

OWNERSHIP

Co. Ltd

FOUNDING DATE

February 2001

ASSETS

REGISTERED CAPITAL

RMB500,000

LIABILITY

MAIN BUSINESS

Hand made embroidery, tapestry, and handicrafts (Christmas ornaments)

BUSINESS STATUS (Last 3 years)

2001

2002

2003

ANNUAL SALES OR REVENUE

100

PROFIT AFTER TAX

2.BRIEF OF THE INTEND PROJECTS

PROJECTS

Foodstuffs, Handicrafts, Texitle, or garments etc. processing and exporting

PROJECT LOCATION

Longmen West Road 158, Laiyang Foreign-Oriented Industrial Zone, Laiyang City, Shandong, China 265200

PROJECT TYPE

New

INDUSTRIAL POLICY

Encouraged

PROJECT DESCRIPTION

Laiyang Sanwei Economic and Trade Co. Limited (LYSW) handle high quality "sanwei " handmade embroideries, handicrafts and handmade wool tapestries. LYSW already has 40 thousand square meters lands, 3000 m² workshops. The company is also ready to build another 5000 m² workshops. LYSW now intends to import foreign investment to cooperate with the processing of foodstuffs, handicrafts, garments, electronics manufactory, develop new products; or the processing with material supply of foodstuffs, handicrafts, garments, electronics manufactory. The foreign partner is expected to invest in cash, advanced equipment and technology, and help to exploit overseas market. (We also welcome investors from foreign countries to rent our office and workshops to establish solely foreign owned company in China.)

TOTAL INVESTMENT

200

COOPERATION PERIOD

20 years

3. COOPERATION FORM

EQUITY JOINT VENTURE

51%: 49%

EQUIPMENT IMPORT

CONTRACTUAL JOINT VENTURE

TECHNICAL TRANSFER

SOLELY FOREIGN OWNED

LICENCE OF TECHNOLOGY

EQUITY TRANSFER

BOT

COMPENSATION TRADE

TOT

OTHER(SPECIFY)

4. INVESTMENT BY EACH SIDE

ITEM

CHINESE PARTNER

FOREIGN PARTNER

INVESTMENT PROPORTION

51%

49%

CASH

LAND

BUILDINGS

EQUIPMENT

TECHNOLOGY

INTELLECTUAL PROPERTY RIGHT

OTHER

5. RAW MATERIALS NEEDED

DOMESTIC

Main Resource name and markets

SUFFICIENT MATERIALS AVAILABLE OR NOT

Available

FOREIGN

Materials requiring quotas or permit

SUFFICIENT QUOTAS OR PERMITS AVAILABLE OR NOT

6. MAIN SALES MARKETS

DOMESTIC

MAIN SALES MARKETS

ESTIMATED MARKET VOLUME

FOREIGN

PRODUCTS REQUIRING QUOTAS OR PERMITS

SUFFICIENT QUOTAS OR PERMITS AVAIL. OR NOT

7.ECONOMIC BENEFIT ANALYSIS

CONSTRUCTIION PERIOD

ANNUAL SALES OR REVENUE

PROFIT RATE

PAY-BACK PERIOD

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