商业计划书(英文版).doc

商业计划书(英文版)

Shanxi HuaXing JinMei Co. Ltd.

Business Plan

[Project ] Metal Mg Producing
[Contact] Wu Zhengxin
[Title ] General Manager
[Tel ] 0351-6586318 13934112890 13803431615
[Fax ] 0351-6586318
[E-mail] xhsaa@
[Address] No. 102 of the 4th Unit of West Building 3, West Park in Qian Feng South Road, Taiyuan, Shanxi

Confidentiality Notice
This business plan is given in confidence with its ownership belonging to the Shanxi Huaxing Jinmei Co. Ltd. The contents and materials contained in this business plan can only be delivered to the personnel who have got the permission from the president of the board and the general manager. The personnel who have received this business plan should ensure that the following rules would be observed,
1. Receivers who don’t want to get involved in this plan should return it in time according to the address given.
2. The plan cannot be copied nor released fully or partially to others before the receivers get the written agreement from the Shanxi Huaxing Jinmei Co. Ltd.
3. Please keep all the information contained in the plan confidential.
The content contained in this plan is only open to the investor who has the intention to invest in our enterprise. The Program Manager of the company that wants to invest should commit himself to keeping this plan safe and secret.

Program manager signature:

Receiving Date: ________________

Serial number of the Plan: WXH2004（021）
Authorizing Company: Beijing Hui Telong Investment Advisory Co. Ltd.

Signature:
Shanxi Huaxing Jinmei Co. Ltd.
Date: 2004-5-31

Abstract

With the development of scientific management, technology, and productive power, the products concerning the metal Magnesium have been developed in a diversified way involving Mg particle, Mg alloys, Mg powder, Mg ingot, Mg stick, Mg sacrificial anode and high performance sacrificial anode etc. The metal Mg, 2/3 density of the metal Aluminum, is one of the lightest metals. The potential application of the metal Mg is of great importance especially under today’s situation that energy has been greatly lacked of and environmental protection greatly emphasized. Having rich deposits under the earth, the metal Mg is of very good qualities like high anti-seismic capability, anti-corrosive capability and intensity etc., which makes it possible being the basic material for alloy industry and thereby wins itself great attention in the application of the national defense industry. Mg is easy to burn and give strong light in the air. Mg powder is used as the raw material of combustion and lighting bomb for defense. The metal Mg of national standard is not only sold well in domestic market but also exported to Japan, USA, Germany, India, Taiwan and Hongkong.
In the international market, more than 80 tons of Mg has been used in the desulphurisation of steel and iron each year. China is the main country in producing steel and iron, and it has been predicted by experts that China needs 300,000~500,000 tons of Mg for industrial processing from now on to the year 2005. The consumption of the metal Mg has increased with an average rate of 6.6% each year during 1990s. Additionally, 109,000 tons of Mg has been consumed in making various foundry products used in automobiles, motorcycles, and electric crust etc. Some spare parts that can be fitted to automobiles like wheel hub, instrument board, chair frame, gear box, direction system, cylinder, air inlet tube and brake pedal frame have been put into use in a wild areas. The consumption of the alloy Mg in automobile-making industry will account for 14% among the total amount of Mg consumption in the following seven to eight years. After the China’s entry into the WTO, the market can see a very bright future for the Mg products since the major object in the antidumping proposal issued by the U.S. and the EU is Mg ingot, whereas there is no requirement on the intensively-processed products. Some key enterprises in China are at the beginning stage in processing the metal Mg, therefore this is the right opportunity for their development. Mg processing is referred to as the promising industry by the experts in the 21st Century.
At present, two major raw materials that can be used to produce the metal Mg have been found rich in Xinzhou City, Shanxi Province, China. They are dolomite ore and silicon iron. The local dolomite ore has a very good quality with the utilization rate being higher than 96%. Nearby the company there are several workshops producing silicon iron and rich dolomite ore deposit, which can not only guarantee the supply for producing the metal Mg but also reduce the cost of raw materials purchasing in an effective way.

The funds that have been gathered up by the company will be mainly used in:
1. Plant construction and equipment purchase in order to keep pace with the market development;
2. Setting up the Central Institute for the purpose of market expansion and scientific research;
3. Setting up the sales network;
4. Developing new products, promoting technologies and improving the old product system.

Contents

Confidentiality Notice …………………………………………….2
Abstract ……………………………………………………………3
Chapter I Company Profile ………………………………………..8
I. Brief Introduction of the Company ………………………..8
II. Strategic Purpose …………………………………………..8
III. Product Evaluation …………………………………………9
Chapter II Management Board ……………………………………..10
I. Name List of the Management Board ………………………..10
II. Duty …………………………………………………………12
III. Organization Chart …………………………………………15
Chapter III Project Illustration ……………………………………..15
I. Brief Introduction of the Project …………………………...15
II. Production Plan …………………………………………….16
III. Pros and Cons ………………………………………………17
Chapter IV Product Planning ……………………………………….17
I. Product Varieties ……………………………………………17
II. Applications ………………………………………………...18
Chapter V Research and Development ……………………………..19
I. The Central Institute of Scientific Research ………………..19
II. Development of Products …………………………………..19
Chapter VI Analysis of Market Demand …………………………...20
I. Brief Introduction of International Market Demand …………20
II. Prediction of Domestic Demand …………………………….23
III. Analysis of the Market ……………………………………..25
Chapter VII Competition Analysis and Countermeasures …………26
I. Analysis of Competitors ……………………………………..26
II. Competitive Advantage ……………………………………..27
I. Strategies for Competition …………………………………28
Chapter VIII Marketing Strategies …………………………………30
I. Marketing Concept …………………………………………..30
II. Sales Planning ………………………………………………31
III. Targeted Markets …………………………………………...31
IV. Sales Management ………………………………………….32
Chapter IX Products Manufacturing ……………………………….33
I. Manufacturing Techniques …………………………………33
II. Manufacturing Process ……………………………………..34
III. Measures for Environmental Protection: …………………...35
IV. Cost …………………………………………………………35
Chapter X Marketing & Sales Management ………………….…….37
I. Operation Concepts and Targets ………………………….…..37
II. Operation Strategies …………………………………………38
III. Personnel Management …………………………………….38
IV. Finance Management ……………………………………….39
Chapter XI Financial Analysis ……………………………………...40
I. Funds Distribution ……………………………………….…40
II. Benefits Analysis ………………………………………….43
Chapter XII Investment Risks and Countermeasures ………………44
I. Analysis of Risks of the Investment ……………………….…44
II. Corresponding Solutions ………………………………….…45
Chapter XIII Cooperation Pattern & Withdraw Mechanism ……….46
I. Cooperation Pattern ………………………………………….46
II. Withdraw Mechanism ……………………………………….47

Chapter I Company Profile

I. Brief Introduction of the Company
Directed by the engineer Zhang Ji, the company has developed the new manufacturing process that will be applicable with only small improvement over the original equipments, which greatly improves the products’ purity and increases the utilization rate over the raw materials. If put into the operation, the company can ensure to meet the needs of the market in terms of the management, quality of products and services with the help of good group work among the staff, advanced domestic equipment, technology and fine checking means. The Mg-product series include Mg particle, Mg mixture, Mg powder, Mg ingot, and Mg stick etc. with their manufacturing process covering all kinds of procedures involved in combustion furnace, breaker, ball mill, reduction furnace and refining furnace. Among them the product of Mg ingot that is produced under the conduct of special technology owned by the company itself is of high quality.
II. Strategic object
The company runs with the purpose of developing economy, strengthening the enterprise, enriching the staff and benefiting the society. The company pays great attention to the market and talented personnel, and builds up a very good image of being honest, civilized and aware of environmental protection. Facing the globalization tendency of international economy, the company keeps expanding room for its growth based on the development of technology, management and service. We hope to create a much brighter future with friends from both inland and abroad.
Shanxi Province is a very important energy base in China with rich storage of coal, iron and metal under the earth. The price of coal, dolomite ore, electricity and silicon iron that are the major raw materials for producing the metal Mg is the lowest here in China, which reduces the cost in producing Mg in a great extent and at the same time puts the company into a favorable position in the competition for markets. Meanwhile, the climate here in Shanxi is dry and lack of rain, which is very suitable for the Mg producing and processing. More importantly, we have grasped the advanced technology from the Japanese plants in producing the metal Mg. And we have a package of strict management regulations and rich experience. The company has set up its own research institute and built an enviable reputation for innovation, which has paved the way for the company’s future development and entry into the international market.

III. Product Evaluation
The development of the Mg alloy has been paid great attention by a few governmental agencies like the Scientific Bureau and the Planning Committee; and also by some enterprises engaged in defense industry. Meanwhile, the program concerning the development of the Mg alloy has appeared in the list of the key scientific programs issued by the “863” Plan and “Tenth-five-year” Program.
Accordingly, in order to meet the market needs and push forward the enterprise’s development, we have drawn out the following plan for the products:
² General products (Mg ingots) for the major domestic markets and a small share for the market in Japan.
² Intensively-processed products like Mg powder and Mg stick, etc. for brand building, 90% of which for the markets in Japan and Southeast Asia.
² Cooperating with enterprises engaged airplane and automobile manufacturing.

Chapter II Management Board
I. Name List of the Management Board

Name list of the management board:
No.
Title
Name
Unit
Academic credentials
Telephone
1
Board Director
Wu Zhenxin
Aochang Machinery Ltd.
College Degree
13934112890 
2
Deputy Board Director
Shi Xiaoyan
Aochang Machinery Ltd.
Bachelor
13803431615 
3
General Manager
Wu Zhenxin
Aochang Machinery Ltd.
College Degree
13934112890 
4
Deputy General Manager
Zhang Ji
Hebi Yinxin Magnesium Ltd.
Master

5
Deputy General Manager
Wang Zhijun
North China Junwei Group
Master
  0351
8554339
6
Deputy General Manager
Wen Hao
Founder Group
Master
 13327410822

· Chairman of the Board of Directors and General Manager
Wu Zhenxin: Male Born in 1955, college degree, graduated from China University of Geosciences.
Working experience:
Worker at Taiyuan Heavy Machinery Manufacturing Co. in 1978
Head of the Department of Taiyuan Heavy Machinery Manufacturing Co. in 1982
Director of the Branch of of Taiyuan Heavy Machinery Manufacturing Co. in 1990
Deputy General Manager of Hengyue Magnesium Ltd. in 1995
General Manager of Hengyue Magnesium Ltd. in 2001
Person in charge of founding of Shanxi Huaxin Magnesium Ltd. at present
· Vice Chairman of the Board of Directors and Chief Financial Officer
Shi Xiaoyan: Female born in March of 1962, age of 42, bachelor, graduated from Shanxi Finance & Economy University, certified public account.
Working experience:
Clerk in Financial Department of Taiyuan Heavy Machinery Manufacturing Group in 1982
Head of Financial Department of Taiyuan Heavy Machinery Manufacturing Group in 1993
Founder of Aochang Machinery Ltd. in 1996
Board Director of Taiyuan Aochang Machinery Ltd. at present
· Manufacturing Deputy General Manager
Zhang Ji: Male born in August of 1954, Master, Engineer, graduated from Zhongke Metal Research Institute in 1998.
Working Experience:
Researcher of Shanxi Metal Research Institute in 1990
Chief Technical Officer of Hebi Yinxin Magnesium Ltd. in 1995
Deputy General Manager of Hebi Yinxin Magnesium Ltd. in 1998, in charge of product development, manufacturing, and supplying.
Deputy General Manager of Hengyue Magnesium Ltd. in 2002
Person in charge of founding of Shanxi Huaxin Magnesium Ltd. at present
· Marketing and Sales Deputy General Manager
Wen Hao, Male born in December of 1974, MBA, graduated from Beijing Guanghua Management School of Beijing University
Working Experience:
Clerk at Shanghai Hongtai Trading Ltd. in 1996; head of the department in April of 1997; Director of Qingdao Branch in May of 1997, mainly in charge of management and marketing.
Director of Loaning Planning Department of Beijing Jinshengda Auto Trading Co. in 1999
Reading for MBA in Beijing Guanghua Management School of Beijing University in 2000
Deputy General Manager of Shanxi Branch of Founder Group in 2003
Person in charge of founding of Shanxi Huaxin Magnesium Ltd. at present
· Administration Deputy General Manager
Wang Zhijun, Male born in May of 1970, MBA, graduated from the Management School of Renmi University, certified public account
Working Experience:
Account at Taiyuan Copper Ltd. in 1993
Head of the Financial Department of Taiyuan Copper Ltd. in 1998
Reading for MBA in Renmi University in 1999
Chief Financial Officer at North China Junwei Group in 2002
Person in charge of founding of Shanxi Huaxin Magnesium Ltd. at present

II. Duty

· Chairman of the Board of Directors and General Manager
1. Convening and presiding the shareholders meeting; implementing the Article of Association of the company and being responsible for and reporting to the board of directors.
2. Taking lead in the work of board of directors; convening and presiding the board meetings; fully in