A.   Predicated cooperation project:
　　Import advanced equipment, technology to improve the production and technical level and to occupy a larger domestic market share and expanding exports.

Name of product

Capacity

Predicted sales value

Sales proportion in omestic market %

Exportation proportion %

Magnetic circle, tile

1500T/Y

2,200,000

85

15

Magnetic block

1500T/Y

1,150,000

85

15

Magnetic processing machine

200sets

850,000

90

10

Medium and small complete ore-processing equipment

10sets/Y

7,000,000

95

5

  B. Predicted investment (USD): 3,650,000
　　 Predicted annual profit (USD): 700,000

 C. Predicted market:
　　

There?ˉs a large space of expansion of magnetic materials, magnetic equipment, ore-processing equipment and cement equipment.

Firstly, after Beijing got the right to hold 2008 Olympic games and investment more in basic construction, the demand for cement rise significantly. Dozens of big-scale cement factories will be building or expansion in the next two years. The total capital needed is 1800 million to 25million RMB yuan.

Secondly, the west development project will bring a capital of 5000 million RMB yuan to ore-processing equipment, cement equipment and magnetic equipment.

 Thirdly the demand for high and middle level magnetic material grows annually in both domestic and international market with the rate 5%-7%every year, especially in the fields of automobile industry, electronic industry, environmental protection and medical equipment. There is great demand for plants manufacturing complete ore-processing equipment in domestic market with renovating and rebuilding of equipment in domestic iron and steel industry and building of varieties of medium and small miners.

  If we can cooperated with foreign enterprises, introduce technology and equipment, raise production and the level of technology, invest to develop new products expand our production. We can occupy the market quickly and expand our market share with the advantages of quality and price,

As for export, our products are now mainly exported to Korea, Iran, Bengal and Hong Kong.

It is our company?ˉs development strategic emphasis for the next five years to research devices for terminal mine recovery and non-metal purification of high-intensity magnetic field, such as double-disk, circle magnetic separator, and high magnetic separator, which can replace imported products. The emphasis is complete ore-processing equipment, cement manufacture equipment, rotary kiln, cooler, etc. It will be an important part of our economic development after the joint venture is established.

 D. Cooperation method:   Joint venture, cooperation 

 E. The expectance for the foreign partners:
　　 Famous enterprises engaged in relative business, is capable of providing more advanced machines and technology, rich management experience, enough fund support. Our expectance is also to pioneer international consumption channels and get admittance of the country.

  G. Favorable conditions we supply:
  1. Workshop area is more than 6625 m².

  2. Complete equipment of producing magnetic material, 3m-diameter large-scale vertical lathe, 2.5m-diameter large-scale horizontal lathe, and series of middle and small machining equipment.

  3. Strong technical force and advanced testing means with more than 240 skilled machining workers and more than 16 senior-middle technicians with the experience and ability of developing new technology and products.

  4. Main products in manufacturing of 3,200,000 USD annual: magnetic block, magnetic processing equipment, ore-processing equipment, and water purifying equipment, sewage equipment to ensure the developing power.

  5. A whole dependent sale system with sales departments, three sales companies, agencies in the main areas and cities around country, and the magnetic materiel and magnetic processing equipment share the domestic market of 25%, and the ore-processing equipment and cement equipment of 65%, at the same time exported to Korea, Iran, Bengal and Austria.