I. Project Name
Strategic Cooperation Project of Baiyi Xifeng

II. Project Implementation Agency
Shaanxi Xifeng Wine Co., Ltd. is situated in Liulin Township of Fengxiang County. October 1956 witnessed the foundation of Shaanxi Xifeng Wine Plant. Combined with other social corporations, Shaanxi Xifeng Wine Co., Ltd was founded with net operating assets of Xifeng Wine Plant as core. After half century’s effort, Xifeng Enterprise has become a large sized state-owned enterprise, the largest national famous wine manufacturer in Northwest Region and one of the big enterprises of Shaanxi province in tax contribution. Now, it has a covered area of 502000 m², total assets of 780 million Yuan and can produce over 50000 tons of high quality wine a year.

III. Project Description
The project is planned to increase the net assets of Xifeng Wine Plant and make the state equity capital reach up to 350 million Yuan. It is intended to establish new company to expand the production scale of Xifeng Wine, which adopts the form of capital increase and stock expansion. The investor may participate in the stock with cash. The new company will take Shaanxi Xifeng Wine Co., Ltd as main body.

IV. Total Investment and Cooperation Form
Total investment of the project is 1 billion Yuan, including the introduced capital of 626 million Yuan. Cooperation form: stock participation through cash.

V. Anticipation of Market and Analysis of Investment Return
In recent years, the market advantages of strong wine tend to famous wine and the brand effect of wine is obvious. The market share of Xifeng Wine product improved sharply. The main economic index of Xifeng Enterprise is increasing at a speed of over 40% per year. The quick development opportunity of Xifeng is coming. Therefore, the market prospect of the project is broad. According to the development strategy of Baiyi Xifeng Group, up to 2010, the sales income of the enterprise can realize 3 billion Yuan, profit and tax 720 million Yuan, of which the profit is 220 million Yuan. Up to 2015, the enterprise can realize sales income of 10 billion Yuan, profit and tax of 2.8 billion Yuan and the rest profit of 800 million Yuan. According to this, the whole investment will be recovered within 5-8 years.

Contact Person: Zhao Guilin
Telephone: 0917-7421092
Fax: 0917-7421100
Address: Liulin Township, Fengxiang County, Shaanxi Province
Post Code: 721406
E-mail: sxxfj@vip.163.com