I. A Survey of the Project
The project is mainly to extend the 3# and 4# quarries as well as working plants in two years.
The gross investment is 10.25 million Yuan. For the mine, the stripping engineering needs 600,000 Yuan; road construction 600,000 Yuan; requisition of woodland 300,000 Yuan; purchase of two excavators three million Yuan; that of two loaders 600,000 Yuan; of two air compressors 400,000 Yuan; of two bulldozers 500,000 Yuan; and purchase of four material transportation trucks 600,000 Yuan. In terms of the factory, to newly build a 2,000-square meter working plant will cost one million Yuan; to build a 400-square meter staff quarter 280,000 Yuan. Concerning working devices, five pit saws cost 750,000 Yuan; eight burnishing-machines 160,000 Yuan; two cutting machines 160,000 Yuan; one 20-ton forklift 300,000 Yuan; a set of 20-ton crown block 200,000 Yuan; erection cost will be 350,000 Yuan; and incidental expenses 450,000 Yuan.
After the extension of the project, the estimated annual sales income may reach 13 million Yuan; profit and tax four million Yuan. The payback period will be 2.5 years. The production of dimension stones will produce no waste gas or water, therefore exerting no pollution on environment.

II. Development Advantages of the Project
The recoverable reserve of the two stone pits of the mine of Datong Hengbao Dimension Stone Associated Company reaches as many as 318,400 cubic meters, which, if 5,000 cubic meters are mined a year, can serve for over 60 years. Located on an erosion base level, the mine is suitable for opencast mining; the factory has sufficient water and electricity supply, convenient traffic and communications; and the products enjoy unblocked sales channels both at home and abroad. The project, with proper construction scale, is in accordance with the State’s relevant industrial policies, meets the existing demand of the dimension stone market. The invest profit rate, rate of profit and tax to investment and the internal rate of return all top the basic income rate in the industry, so the project has high risk resistant capacity.    

III. Mode of Cooperation
Joint venture or cooperative

IV. Brief Introduction to the Project
Datong Hengbao Dimension Stone Associated Company, founded in May 1993, is a state-owned professional enterprise in producing granite dimension stones. The legal representative is Wang Long; and there are totally 60 employees (30 technicians). The total assets reach 9.2 million Yuan; net fixes assets 4.03 million Yuan; and total liabilities 2.78 million Yuan. Now there are two raw stone pits belonging to the company. It can produce 500 cubic meters of raw stones, and 10,000 square meters of sheet materials; however, after extension, the output of raw stones can reach 3,000 cubic meters and that of sheet materials 40,000 square meters; that of handicrafts 1,500 sets per year.

V. Contact Details
Contact person: Manager Wang Long Tel: 0352-3175660 Mobile phone: 13935216628
Zip code: 037012
Address: Datong Hengbao Dimension Stone Associated Company