NAB Group dedicates to the development of world agriculture, strives hard toward the object of modernized production, scientific management and international operation, for becoming a large and strong company in formulating through international cooperation.

A Survey of NAB's Development
    Founded in 1993, NAB Groups is engaged in the production and marketing of pesticides. At present, NAB owns 3 entities: Beijing NAB International Co., Ltd., Zibo NAB Pesticide and Chemical Co., Ltd. and Shangdong NAB Biological Science & Technology Co., Ltd.(Shandong NAB) which was founded in 2005. The development current of Zibo NAB (during 2000-2005) is as the following drawing:

    Located in Huaitai New Zone of Zibo New & Hi-tech Industrial Development Zone, Shandong NAB Biotech limited owns floor area of more than 150,000 m2. With estimated total investment over 20 million US dollars, Shandong NAB plans to build up a formulating factory with floor area over 100,000 m2 in 5 years. According to energy saving and environmental protection concept, Shandong NAB will construct a factory with the following areas: living and office area, central laboratory and experimental garden area, sewage treatment area, and formulating areas of herbicide, insecticide and bactericide, etc. At present, a sewage treatment system will be soon completed for the cleanness of production and factory area. The first phase, ME, EW and OSC/SC occupying an area over 10,000 m2 have been put into production while the construction of WDG workshop is under demonstration. NAB intends to establish a joint venture pesticide company in Shandong NAB with an area of 33000 m2 and registered capital of 2 million US dollars that will be engaged in specialized pesticide preparation. We are planning to accelerate the company's development and enlarge the market share through importing advanced formulating, technology and managerial mode.

Market Analysis of Joint Venture Project
    NAB's sales volume, both export part (50% of the total) and domestic sales grow continuously. Thanks to our market grid, the future joint venture will be easily to occupy the market.

    With rapid development of China's economy, the pesticide market is very broad. The annual output of pesticide of China (100% of the pure pesticide) is more than 1 million tons, 50% of that is exported. In 2005, the actual domestic export value is about 2 billion US dollars with an annual increase over 20%. The domestic demand for pesticide is about 400,000-500,000 tons per year while the sales income is over 2 billion US dollars. Thanks to the big amount of export, the development of China's pesticide is very promising.
The development of formulation varieties and qualities of China has great potentials. At present, the qualities of technical grade are comparatively good, but the varieties and qualities of formulations are far below the international standard. Cooperating with overseas companies, importing advanced management and technology and producing formulating of high quality, will bring us huge return from the market.

Cooperation Mode
    Capital of the future joint venture. The planned capital will be 2 million US dollars. NAB will invent land(factory building), register certificate of pesticide and cash in the new joint venture, occupying 51% shares(or 50%) while the foreign party will invent their own technology or/and cash, occupying 49% shares (or 50%). The joint venture period shall be at least 10 years.
Management organization of the joint venture. Members of board of directors shall be assigned by both two parties. Managerial staff and common employees will be recruited locally. Managerial staff will be 10, labor cost per capita will be about 6000 US dollars per year. Common employees will be 80, labor cost per capita will be about 2500 US dollars per year.
Capital recourses of joint venture. The capital will be 4 million US dollars, 2 million of that is invested by two parties, the other 2 million will be bank loan.

    Expected investment return. The expected return in the coming 4 years will be as the following drawing. And according to the market analysis and new joint venture company's development, the sales amount and profit will increase by 30-50% every year. The payback period will be 3-4 years, profit margin will be 20-30%. The return will be stable.

Construction of the New Joint Venture
    We are planning to build up 3 workshops, 1 warehouse with total area of 5000 m2, and an office building (3 floors) with area of 1500 m2. The equipments will be decided according to the products. We are planning to rent the land that already owned by Shandong NAB where enjoys public facilities offered locally. The construction plan is as the following drawing:

Operation Procedure of the New Joint Venture
    A. On the basis of cooperation common understanding of the two parties, NAB will provide elaborate business planning in 15 days. The agreement of joint venture will be signed by two parties after negotiation. And NAB will be responsible for the registration proceedings of the new joint venture in 1-3 months.
    B. Construction of the project, organizing of employees and beginning of production.
    C. After 10 years' cooperation of two parties, we will discuss with each other on the possibility of continuing the joint venture: 1) if we decided to continue our joint venture by two parties, two parties will strengthen our cooperation according to the developing plans of the company; 2) if we decided to terminate the joint venture, the joint venture agreement will be terminated after NAB purchase factory buildings and equipments after the counting of depreciation status.

山东NAB合资项目可行性分析

        新农基集团致力于全心全意服务于全球农业事业发展，努力追求生产现代化、管理科学化、经营国际化目标，力图通过国际的合资合作，在制剂加工方面做大做强。
●新农基发展概况
    新农基集团自1993年组建以来，一直专业从事农药的生产经营业务，历经多年发展，规模逐步壮大，效益逐年递增。集团现有三家实体，分别是：北京新农基国际贸易有限公司、淄博新农基农药化工有限公司以及于2005年初组建的山东新农基生物科技有限公司（简称山东新农基）。以淄博新农基农药化工有限公司为例，其2000-2005年发展趋势如下图：

     新组建的山东新农基位于中国山东省淄博市高新技术产业开发区桓台新区内，占地15余万平方米，预算总投资2000余万美元，计划分5年次建成10余万平方米的专业制剂加工厂区。厂区建设规划为生活办公区、中心实验室及试验园林区、污水处理区和除草剂、杀虫剂、杀菌剂分类加工区等。目前，设施完善的污水环保处理系统即将落成；一期工程10000余平方米的微乳剂（ME）、水乳剂（EW）、悬浮剂（OSC/SC）及WP生产车间已竣工投产，WDG加工车间的建设方案也正在加紧研讨论证中。新农基的合资意向是在山东新农基公司内建成占地33000m2，注册资本200万美元的农药制剂专业加工合资企业，通过引进先进的工艺技术及管理模式促进企业进步，扩大市场份额。

●合资项目市场前瞻
    ◆新农基内销及出口量（目前50%的产品用于出口）持续增长，既有市场网络可助推合资项目尽快占领市场。

      ◆中国农药市场空间巨大。2005年产量（原药折纯）100余万吨，其中50%用于出口。2005年，中国实际农药出口额在20亿美元左右，且每年增幅都在20%以上。国内农药市场需求量在40-50万吨徘徊，销售额超过20亿美元。由于出口拉动，中国农药生产发展空间非常大。
    ◆中国国内制剂品种、质量挖掘潜力较大。目前，中国国内原药产品质量较好，但制剂产品无论在品种还是质量方面能够达到国际水平的不多。通过合资经营，出产高质量制剂产品，市场回报丰厚。

●合资项目意向方式
    ◆合资规模：计划合资规模200万美元，新农基以土地（厂房）、农药登记证、现金等方式入股51%（或50%），合资方以专有技术、现金等方式入股49%（或50%），合资年限不少于10年。
    ◆合资项目管理机构：董事会人员分别由合资双方指派。企业管理层及基层员工由当地招聘，管理层设10人，人工成本约6000美元/人/年；基层员工设80人，人工成本约2500美元/人/年。
    ◆合资项目资本金筹措及分配情况：筹措400万美元资本金，其中，200万美元为双方投资；200万美元为银行贷款（由新农基具体办理）。 

        ◆投资回报预期：未来4年投资回报预期如下图，且根据市场分析和公司发展情况，今后每年会增长30-50%。合资项目投资回收期为3-4年，利润率可维持在20-30%，投资回报比较稳定。

●合资项目建设规模
    拟建3个生产车间、1个仓库共计5000m2，三层办公楼1500 m2；生产设备根据产品情况确定；土地租用山东新农基既有土地；水、电等公用工程由当地解决。

建设计划如下图:

●合资项目操作程序
    A、双方达成合作共识后，新农基在15日内提供详尽的商业计划书，双方经论证谈判签订项目合资协议书，新农基负责在1-3月内注册成立合资公司。
    B、工程建设，人员组织，试车投产。
    C、双方合资满10年后，根据运行情况探讨继续合资的可行性：1）若决定继续合资，双方按公司发展规划继续加强合作；2）若决定终止合资，新农基根据投资厂房、设备等的折旧情况，按价购入资产后项目合资协议终止。