Brief Profiles Of Investment Projects
For China¡®s Agenda 21

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Title Combining Traditional Chinese and Western Medicine
Type New investment project
Description
A series of medical products combining traditional Chinese medicines, extracted from herbs and other materials, and western medications will be produced and marketed. The following activities will be completed before commencing normal production: designing and developing the formulations, technology and quality standards; purchasing and installing new testing and special manufacturing equipment; toxicity research, pharmacology and clinical observation, and experimental production.
Rationale
The traditional medications have shown improved treatment results with distinguishing features, such as lessening toxicity, reducing the dosages of medicine, combining fast relief with long-term results and combining temporary relief with permanent cure. Indications are that they can help to reduce morbidity and mortality by 25% and 30%, respectively, from diseases such as diabetes, cancer, high blood pressure, AIDS and blood vessel diseases. The current demand for some of the traditional medicines such as Shenzhi Pancreatic Juice, Taishen Juice, Huoxuejian Juice and Xiaomingfanghua Juice are 80 million, 20 million, 50 million and 32 million bottles respectively. Raw materials for these products are abundant and readily available in the province. The new series of products will combine these features with the effectiveness of western medications. Preliminary studies indicates high profitablity.
Products
Shenzhi Pancreatic Juice, for curing diabetes; Taishen Juice, for high blood pressure diseases Huoxuejian Juice, helpful for invigorating blood circulation; Baoren Juice, helpful for controlling expansion of cancer cells; Xiaomingfanghua Juice, for preventing tinnitus and vision impairment; Total production capacity for all products will be 3.12 million units per year.
Location Shenyang city, Liaoning province
Available Information Pre-feasibility Study, Market Research Report and Technical Studies
Total Investment (US$)

12.11 million

Foreign Currency (US$)

Financing

Co-operation Sought

Total Equity (US$)

5.11 milliom

Joint Venture

Of which Equity Foreign Partner (US$)

2.5 million

Co-operative Production

Loan (US$)

7 milliom

Others(specify) (US$)
Indicators of Viability Estimated Gross Sales: US$ 16 million per year,

Estimated Net Profit: US$ 5 million per year.

INFORMATION ON SPONSOR

Name Shenyang Kangda Pharmaceutical Plant Tel +86-24-4801184
Address 131 Xiaonan Av., Shenhe district, Shenyang city Fax +86-24-4801184
Annual Turnover (US$) 1993 1994 1995 28.5 million
Year of Establishment 1994 No. of Employees 732 Ownership State
Fixed Assets (US$) 8 million Registered Capital (US$) 1.92 million
Land (ha.) 1.8 Building (m*m) 16 million Equipment (US$) 2.1 million

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