Industry: Pharmaceutical
Project Background and Conditions:
    Zhebei Pharmaceutical Co., Ltd. has collaborated with the No. 2 Natioanl Institute of Ocean Science since 2000 and successfully developed a new technique that abstracts pure acarbose candy by applying the nano-membrane filtering technology, and produced acarbose candy even purer than that from German Bayer with less raw material consumption, lower emission and higher production potential. This has changed the situation that Bayer¡¯s technology played a monopoly role in the Chinese market and creates favorable conditions for medically treating diabetes sufferers in China by large scale applications of acarbose candy drugs. It also brings great commercial profits and opportunity to the domestic industry and enterprises engaged. The product of acarbose candy is still in the early stage of product cycle, the product introduction. At present time the domestic competitors are still very weak in terms of technology and production scales, except the German Bayer, while the foreign made product is difficult to control the application market in China for the type II diabetes sufferers due to its high selling prices. This company is capable of establishing the competitive edges in the domestic healthcare market.
Project Progress: The production technique has granted the state patent and the mid-test of the project has been completed.
Plan of Implementation: There are two plans for the project that have been proposed. Plan I (small scale plan) will produce 5 tons acarbose annually with a total investment of RMB 21,420,000 and a circulating fund of RMB 3 million. Plan II produces 1o tons annually with a total investment of RMB 49 million and a circulating fund of RMB 3 million and early stage development fee RMB 12.5 million. The fund of RMB 30 million is sought to be financed. Plan III produces 20 tons annually with a total investment of RMB 94.5 million and circulating fund of RMB 15 million and early stage development fee RMB 12.5 million.
Financial Evaluation: With the plan of 20 tons annual output the project will produce an annual tax and profits of RMB 58,461,800, profits of RMB 46,471,800, a net profit of RMB 31,136,100, a sales profit rate 45.31%, a sales profit and tax rate 57%, investment payoff rate 57.59% and predicted investment payoff period 2.42 years.
Co-operation Form: The project proposer seeks loan support or equity capital investment from the investors who are interested in this project.
Collaboration to Be Sought from Foreign Partner: The investment of RMB 30 ¨C 80 million will be sought, which is mainly used in the technical reform and expansion for the pharmaceutical workshops with GMP implementation and as the circulating funds.
Preferential Conditions Contributed by Chinese Partner: The industrial land requisition and project approval have been completed.
Status of Chinese Partner: Zhejiang Zhebei Pharmaceutical Co. Ltd. is a privately owned enterprise that engages in production of cardiovascular drugs and necleoside antivirus drugs. As a medium and small technological enterprise the company owns a total asset of RMB 55,280,000 and an annual turnover of RMB 45,360,000.

Correspondence:
    Person to Contact: Chen Gang
    Telephone: 0572-8435686
    Fax: 0572-8425045
    E-mail: chengangdq@163.com
    Address: Sanlitang, Qianyuan Town, hangzhou, Zhejiang Province

Liaison Office:

    Huzhou Municipal Investment Promotion Bureau
    Address: 8 Hongfeng Forth Road, Huzhou Zhejiang Province 313000, China
    Tel: 0086-572-2037805
    Fax: 0086-572-2025678
    E-mail: zsj@huzhou.gov.cn