Summary

A potential Chinese company (HHTC) in Hainan Island of P.R.China is seeking an investment partner in Europe or USA for this project.

This is an exceptional super-profits investment opportunity.

The excellent features of this project include:

1. The Chinese Government provided an area of 2 KM² of land and 3 KM² of sea field, free of charge, to the HHTC Company for the development of a central fishing port and port city on the Hainan Island. HHTC Company owns this area for 70 years. (All legal procedures have been completed.)
2. This new port will be a first-class fishing port of China and the number one fishing port on the Hainan Island -

The largest fishing port - 850,000 square metres sea area, which can contain 2,000 - 3,000 fishing ships.

The safest fishing port - it can protect from the strongest (force 12)

Tornado,

The deepest fishing port - depth 4 - 6 metres.

The new port's income will be over $15 million per year.

3. The joint venture company will gain 200 hactres free land for housing and estate development. That is a secured high-profits source. It will bring in $48 million income in the first 3 years. (All the investment capital can be returned by this income.) As well as $30 million worth of reserved land.
4. Hainan Island is a special economic province in China, and this New Port & New Port City will be a special-special area with independent administration powers belonging to the joint venture company.

This HuangLong port is located in the largest fishing county of the

Hainan Island. 1,700 fishing ships, 120,000 tons / per year fishing products are waiting for this new port.

The marine products commerce will bring in another revenue over $25 million per year.

5. Hainan Island is the only province in China to have the administration power over a sea area as large as 2 million square kilometres (2/3 of the total sea field of China). Its fishing industry revenue reached over $1 billion in 1997.

The joint venture company also will have free access to the 2 million

square kilometres sea area of China. There will be tremendous potential development opportunities in the future.

6. The excellent natural features of the HuangLong port makes the construction work easy and low cost.
7. This project has the strongest support from local government, fishing industry and local people.

Requirement for the investor:

1. Establish a joint venture company (Name: Hainan HuangLong Industrial Limited; HHI ) for this project. (Joint venture period : 30 years. It can be extended through the agreement from bothsides at that time.)

Partner A - HHTC- will invest $1.02 million (51% of the registered capital ).

Partner B - Investor- will invest $0.98 million (49% of the registered capital).

2. Partner B - Investor- should obtain total $8 million loan for this project. ($2 million / 5 years in Feb. 99; $3 million / 5 Years in May 99; and $3 million / 5 years in Aug. 99) Interest rate 10%. Interests will be paid every year. The principals will be returned in 5 years.)

To invest $0.98 million initial capital and loan $2-3 million/5 years x 3 times only; you will gain super high profits - the joint venture company owns the best fishing port on the Hainan Island for 30 years, with over $450 million - $1.2 billion profits in the next 30 years.

Background:

Located at South China, with the land size of 34,000 square kilometers and a population of 7 million; Hainan island is the second largest island of China (after Taiwan). It is the only province in China to have the administration power over a sea area as large as 2 million square kilometers (2/3 of the total sea area of China). Its fishing industry revenue reached over $1 billion in 1997.

Today China has 5 special economic provinces, the Hainan Province is the most special one. There are many special policies to benefit the foreigner investors, which are impossible in other provinces of China.

The HuangLong (means "Yellow Dragon") Port is located at the northwest coast of the Hainan island. It is connected with the Haikou City, the Capital of the Hainan Island, by 59 miles Highway and Motorway.

This port area belongs to the LinGao County- the largest fishing industry County of Hainan province. The port was a natural safety port for fishing-boats(vessels), it consists of 3 parts: the front port, the long narrow middle port and the broad back port. However due to a long period of lack of maintenance, the port has lost its function, and thousands of fishing-boats(vessels) have to park in another port that is 400 kilometers away. Large amounts of money have been lost on extra-tax and other expenses. Initially this project was discovered by HHTC company from the strong desires of local fishing industry and fishermen's families.

The basic facts:

Hainan island fishing production - 450,000 tons/per year

LinGao County fishing production - 120,000 tons/per year. Equal to 26.7% of the total provinvce production.

LinGao County fishing industry growing - 15% /per year.

LinGao fishing ships total number- 1,700 ships

LinGao fishing ships forced to parking outside - >1,000 ships.

LinGao County lost fishing tax - >$3 million/per year.

LinGao fishermen stay outside extra-expenses - >$20 million/per year.

The Port is located at the center of the fishing industry zone. It could be the commerce center of marine products.

The port area has 7 old fishing villages, they need >4.000 new houses (50% have prepared money and are waiting). And more fishing industry & people will arrive.

The natural geology condition of the port is very good. It's easy to build an excellent port and a commerce center.

Hence this project is the most welcome project from the local government and local residents, with their strongest supports...

1. First phase - the first 3 years period,

To complete the fishery port construction and facilities (The port cruise facility, the across bridge, the protect dikes, the marine products wharf, the shipyard, the oil store dock, the fishing products exchange market) and some residential areas of the port city.

The port by that time will posses the whole functions for the fishing industry, and partial living facilities for the port city

2. Second phase - .In 5 years time the whole construction of the HuangLong Central Port and its Port City will be completed. It will become:

1. The largest, most advanced and the best fishing industry port of the Hainan island.
2. The largest marine products commercial centre and exchange market in the Hainan Island.
3. A good model of developing modern small city in China. It will enter the range of world famous small Port City with its unique style.

Investment:

The port construction investment will be $15 million. The houses and port city development investment will be $20 million.

The total sum of investment in the first 3 years will be $35 million.

Project Benefits:

(A) The first 3 years - Property & estate benefits will be enough to return the total investment sum.

There are total 20,000 ares land in the port area.

In the first 3 years, planning to use 1/3 land for real estate. building the houses for 2,000 family residences,

2,000 flats x $20,000 each = $40 million.

And sell the other 3300 ares land to the housing market.

3,400 ares x $2,400 per are land = $ 8 million

This will get an income of $48 million

After deducting the total investment amount of $35 million, the pure benefit will be $13 million from the first 3 years.

2. Reserved 13,000 ares land:

About 4,400 ares will be used for industry, commerce, entertainment, restaurants, hotels and other public applications.

The other 8,600 ares of land is reserved for future housing development.

These reserved land value over $30 million; possibly its value will increase to over $50 million in the coming years.

3. Long-tern port functions benefits (Company income):

1. Petrol storage, 100,000 tons/per year - $4 million /per year.
2. Cold storage & Ice supply - $2 million/per year.
3. Marine products commerce market - $1.5 million/per year.
4. Ship parking fee - $1 million/per year.
5. Trade and others - $7 million/per year.

2. It is estimated that at the beginning stage of the new port, at least 100,000 tons / per year fishing products will be landed here. With the comercial value of $50 million. The pure profits of markeing fishing products is about 50 %. That means another prospect of $25 million profits per year.