I. Project Name
The Move and Production Expanding and Innovation Projects of Noservice Battery

II. Project Implementation Agency
Shaanxi Lingyun Electronics Co., Ltd.
By the end of 2006, the company had produced 56 kinds of noservice battery accumulatively and the output had reached 3 million pieces. It had the ability to develop noservice battery of motorcycle, armored car and miner's lamp. The battery plant reduces the cost through adopting many methods such as energy-saving, technology innovation and process optimization. Meanwhile, its market development made great achievements by utilizing stable client group and self-owned brand.　

III. Project Description
The project is planned to requisition 80 mu of land in Weibin District Industry Base of Baoji city to build a storage battery integrated production workshop. The construction area is 24190m²(including: a plate production workshop of 10800 m², assembly workshop of 10920 m², comprehensive building of 2470 m²). The office building is 1900 m², comprehensive workshop and finished warehouse is 2016 m², collective dorm of change shifts and dining-room is 2016 m², raw material trial room is 270 m², gatekeeper rooms is 43 m², grid plate workshop is 2700 m². 66 sets of original equipments need to be moved and 295 sets of equipment need to be purchased.

IV. Total Investment and Cooperation Form
Total investment of the project is 110 million Yuan. Cooperation form: equity participation.

V. Anticipation of Market and Analysis of Investment Return
After the project is put into production and meets its production target, it can produce and sell 3 million various noservice batteries. The sales income of 350 million Yuan, total profit and tax of 36 million Yuan will be realized a year. Of which, the tax and additives (including income tax) is 19 million Yuan and profit after tax is 17 million Yuan.
When the investment is completed, the intangible assets such as land will be 11.36 million Yuan, production workshop and life facilities will be 65.18 million Yuan. The newly added equipment and original equipment’s dismantlement and installation need 20.82 million Yuan. After calculation, breakeven point is 65% (That practical production capacity reaches 65% of the designed capacity can keep the principal). The investment recovery period is 6 years.　

Contact Person: Li Gang
Telephone: 0917-3604654
Fax: 0917-3311168
Address:Weibin District, Baoji City
Post Code: 721006
E-mail: ghb@lingyungroup.com.cn