Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Production of Black Chicken and Magic Egg
Type Expansion of production capacity
Description
The company's capacity for breeding black hens which produce Hualu "Magic" eggs with jade green shell will be increased from the current 30,000 to 100,000 hens, with a commensurate increase in egg production. Feed processing capacity will be increased from 2,800 tons per year to 7,000 tons per year, and a chicken processing plant will be established. Construction of chicken sheds, slaughterhouse, a warehouse for processed chicken and raw materials and other auxiliary facilities will be included in the project.
Rationale
The Hualu Magic Egg with jade green shell is laid by a rare fowl -- Dongxiang black hen -- and contains some essential trace elements, such as iodine, zinc, selenium, etc. Its content of vitamins and amino acids is higher than ordinary eggs, while the cholesterol content is lower. The nutritional quality of these eggs is helpful for protection of child zinc-deficiency syndrome and adult blood vessel diseases. The black chicken also is valuable for its medicinal values. The company owns 12 ha. cultivated land which can provide raw materials for the feed processing plant. These products have a well-established market niche with considerably higher profitability than ordinary eggs.
Products
Annual output: Hualu Magic Egg, containing over ten essential trace elements: 7.5 millions; Black hen: 100,000; Feed: 7,000 tons; Hualu prepared chicken: 1 million packages
Location Dongxiang county, Jiangxi province
Available Information Feasibility Study Report
Total Investment (US$)

2.5 million

Foreign Currency (US$)

500 thousand

Financing

Co-operation Sought

Total Equity (US$)

2.2 million

Joint Venture

Of which Equity Foreign Partner (US$)

1.2 milliom

Compensation Agreement

Loan (US$)

0.2 million

Others (specify) (US$)

0.1 million

Indicators of Viability Break-even Point: 49.7%; Pay-back Period: 5.2 years;
IRR: 33.3%; Return on Investment: 31.7%;
Return on Equity: 109.8%

INFORMATION ON SPONSOR

Name Dongxiang Black Chicken Development Corporation Tel +86-794-4232926
Address Dongxiang county, Jiangxi province Fax
Annual Turnover (US$) 1993 1 million 1994 1.5 million 1995 2.6 million
Year of Establishment 1994 No. of Employees 136 Ownership State
Fixed Assets (US$) 0.5 million Registered Capital (US$) 0.16 million
Land (ha.) 9.3 Building (m*m) 4500 Equipment (US$) 0.1 million

 


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