I. Project Name
Investment Project of Exporting Elevator to Geogia of Shandong Bunse Elevator Co., Ltd.
II. Profile of Project Unit
The legal representative of Shandong Bunse Elevator Co., Ltd. is Li Changming, a leading expert in the industry with a master’s degree. When the company was registered in 2007, he was the Chairman. In 2014, the Company reformed its overall shareholding system and gained the present name as Shandong Bunse Elevator Co., Ltd., and went public on New OTCBB. The 2015 investment project of exporting elevator to Georgia was initiated successfully.
In recent years, the company’s products have been exported to Vietnam, Thailand, Australia and other countries all over the world. In May 2014, the company won the bid for venue construction project of the 13th European Youth Olympic Games in 2015 based on its three series of 100 elevators. The company fulfilled its task of delivery and installation on time, thus it won great reputation from the Georgia Government and foreign customers. By the end of the year, the company achieved constant cooperation willingness from Georgia for an exportation of 4,000 elevators within five years. They also reached a common consensus on building factory in local by mutual investment based on the needs of local market, labor resources advantage and the company’s elevator manufacturing technology. The long-term strategic aim of products and industry “go global” will be realized.
The new intelligent elevator the company researched and produced gives full play to the company’s own intellectual property rights and advantages in research and development platform beyond the common features of the current elevators. By adopting the frequency conversion control technology and the technology of permanent magnet synchronous motor, the new intelligent elevator is energy-saving, environmental friendly, and cost-reducing. The design can fully show its concept from the green and user-friendly angle. Compared with the same payload-level elevator, this elevator can save electrical energy by 30%, and conservation area by 10%. Its comfort and security are improved through significantly upgrading the technology and performance in its critical parts.
In the implementation of the project, Shandong Bunse Elevator Co., Ltd. used 13 self-owned intellectual property rights, and constantly optimized the products through the innovation platform composed of the company and social scientific research institutions. Many research achievements have been applied in the project. The investment project of export to Georgia has significant technical and economic benefits and good social benefits. It also plays a good demonstration role for industrial revitalization, technical reform, the improvement of equipment industrial base capabilities and key equipment upgrades.
III. Project Content
(1) Overall objective. The investment project of export to Georgia plans to invest 120 million yuan, including the fixed assets of 100 million yuan and the liquid capital of 20 million yuan. It is evaluated that the construction investment of this project will be 99.35 million yuan, including the construction fee of 18.56 million yuan used to build the plant with an area of 20,000㎡, 55.1 million yuan for equipment acquisition, 1.67 million yuan for auxiliary equipment, 3.3392 million yuan for the installation fee, 15.0212 million yuan for other construction fees, and 5.6596 million yuan for contingencies.
Project duration: From the start in June 2015 to its end in December 2016, the project will form an annual production capacity of 1500 intelligent elevators.
IV. Investment Requirement and Capital Usage of Project
First, there will be 40 million yuan invested to establish a production building of 20000㎡ with the high standard. It is used to produce 30 sets of equipment in order to form an annual production capacity of 1500 new intelligent elevators by December 2015. There will be 40 million yuan invested to build a production workshop (20000 ㎡) for new high-speed and permanent magnet synchronous elevator traction machine. It is used to produce 50 equipments, 4 automatic production lines in order to realize an annual production capacity of 10000 new permanent magnetic synchronous elevator traction machines. There will be 30 million yuan invested to build three automatic production lines of high-performance elevator guide rail, including: solid-type guide rail, counterweight hollow-type guide rail and escalator guide rail for one production line each, with a designed production capacity of 100,000 tons/year. There will be 10 million yuan invested to build 2 production lines for the elevator door machines. Second, through further upgrading and transformation, it is hoped to achieve the scale of annual production capacity of 5,000 new intelligent elevators within three years.
V. Project Feasibility Analysis
According to the state development strategy of “One Belt and One Road”, in particular the direction of “transformation and upgrading of traditional manufacturing industries, going global of products”, the company invests and builds factories in Georgia for its strategic position on the silk road economic zone so that products can be fully developed vertically in the economic zone. Then it will spread over the regions in South-East Asia, Western Asia, and Eastern Europe, so as to realize the “going global” strategy of manufacturing products.
VI. Investor’s Right Description
The normal annual profit of the project amounts to 48.3303 million yuan with net profits of 41.0808 million yuan (according to the relevant provisions of the state tax laws, the income tax rate is calculated by 25%, 10% of the after-tax profits is as the statutory surplus reserve, the remaining profits are distributed to investors).
VII. Cooperation Method
Joint venture, cooperation