东塘中环商业街策划报告(英文).doc

Guangzhou JiuFang Electronics Co., Ltd Business Plan Address: Rm605, Bldg B, Quanxin Business Center, 102 Liwan Road, Guangzhou, Guangdong Website: Contact: Wang Yonggang Tel:Mobile:April of 2004 Statement: This Business Plan is submitted under confidentiality, the content of which is completely genuine and reliable. The author reserves the proprietary rights of the Business Plan. Without permission, nobody shall in any manner reproduce, use, copy or distribute this Business Plan. Contents 1.OVERVIEW .1 2.DESCRIPTION OF COMPANY.2 2.1 COMPANY BACKGROUND.2 2.2 COMPANY PURPOSE to enhance technology accumulation and R to enter the international market with the knockout product dynamic inhalation chamber, and to finally become an internationally competitive hi-tech equipment manufacturer. Company philosophy: Good products for good feelings. 2.3 Company Status Quo Currently the company has over 40 employees in laboratory equipment planning, development, production and sales. Their functions are as in Fig 2-1. The Inhalation Equipment Dept is responsible for research and development of inhalation chambers, the most vigorous and fastest growing department in the company. In order to develop dynamic inhalation chamber, the Inhalation Equipment Dept has set up the R Difficulty in control of changes of concentrations of toxins in the experiment; High selectivity for experiment subjects, unable to satisfy the demands for different experiment subjects. Compared with the traditional inhalation experiments, our digital automatic dynamic inhalation chamber has the following enhanced strengths: 1) Wide application and high precision of parameters, with experiment subjects being liquid, gas, or solid, with inhalation concentration within 1010000mg/m3, available for experiments of high toxin, medium toxin and low toxin. 2) Realization of dynamic inhalation experiment, real-time exact collection and display of dynamic experiment data; availability of management and analysis of data in the PC database. 3) Realization of air circulation in the small simulated environment within the inner tank to maintain oxygen content similar to the air, thus to exclude the influence of experiment environment and ensure dynamic balance and controllability of experiment parameters (such as solution volume, airflow volume, air pressure and temperature etc). 4) Precise control of amount of toxin entering the experiment environment to ensure relatively constant and event toxin concentration to realize dynamic balance of inhalation concentration. 5) Development of digital automatic dynamic inhalation chamber integrated with the latest technological results of computer, precision quantitative pump, siphon atomization nozzle and hydraulic system etc. 6) PC remote control and secondary safety air exhaust system to ensure safer operation environment. Table 3-1 displays the comparison between the dynamic inhalation chamber and the traditional inhalation chambers available in the market at present. Table 3-1 Comparison between dynamic inhalation chamber and traditional static inhalation chamber What market demands: What is available in the market: What dynamic inhalation chamber offers: Benefits: Real-time monitoring of dynamic inhalation concentration in the experiment Traditional static inhalation chamber, time consuming, difficult, expensive Real-time monitoring and collection of inhalation concentration Time saving, convenient, lower cost Effective control of changes of concentration of toxins in the experiment Structure of static inhalation chamber unable to precisely control the volume of toxin entering the experiment environment Able toe keep relatively constant and even concentration of toxin Ensuring accuracy and validity of experiment results Exclusion of influence on accuracy of experiment results by experiment environment Construction rationale of static inhalation chamber making the oxygen content in experiment environment different from atmosphere Able to maintain oxygen content in consistence with the atmosphere Ensuring dynamic balance and controllability of experiment parameters (such as solution volume, gas flow volume, air pressure and temperature etc) Equipments applicable on different experiment toxins Static inhalation has high selectivity for experiment substances, unable to satisfy the demands for different experiment subjects Wide application, precise parameters, available for multiple toxicological experiments Easy operation saves experiment time and cost, with precise experiment results Advanced hi-tech product catering to the market demands The technology of static inhalation chamber is unable to meet the market demands Latest hi-tech achievement, patented in China Resistance to copy by competitors means strong market survival 3.3 Technical Advantages second, the household and personal healthcare apparatuses; third, the misurgery apparatuses; fourth, the organ transplant and assistant medical instruments. The dynamic inhalation chamber caters to the medical instrument industry. As currently no mature dynamic inhalation equipments are available in the domestic and international markets, most organizations in need of inhalation experiment will adopt the static inhalation, or renovate the inhalation equipments themselves to meet the demands of experiment. Thus the R Domestic 2nd class target market: other domestic provincial disease prevention and control centers, hygiene and disease control stations, medicine offices, medical colleges and medicine research institutes; Domestic 3rd class target market: third class grade A hospitals, environment organizations, pesticide /chemical fertilizer/chemical research institutes. While proactively developing the domestic market, we will enter the international market. According to the current interpersonal relationships and understanding of market, we divide the international market into three categories. International 1st class target market: toxicological research institutes in USA, Singapore and Germany; International 2nd class target market: toxicological research institutes in Japan, South Korea and Hong Kong; International 3rd class target market: other economically developed regions with certain toxicological research. 5.2 Market Positioning Our automatic dynamic inhalation chamber will be the preferable advanced authoritative laboratory equipment for domestic and foreign professional organizations engaging in toxicological experiment. Based on the sizes, software, performance and appearance, the inhalation chambers are divided into high-class, medium-class and low-class three levels. 5.3 Pricing Strategies As currently there is no similar product available in the domestic market, our pricing is based on the prices of the laboratory equipments in the industry and the overall cost of research, development and production of dynamic inhalation chamber. In 2001, a German company developed dynamic inhalation equipment for the Disease Prevention and Control Center of the State Administration of Labor. That equipment is still under maturity, with many parameters unable to meet the experiment requirements, yet its cost reaches up to RMB2,000,000. It is apparent that the dynamic inhalation chamber is a kind of expensive laboratory equipment. With consideration to the acceptability of clients, our prices are as in Table 5-1. Table 5-1 Prices of Dynamic Inhalation Chamber (Unit: RMB10K) 0.3m30.6m31m3 High class404858 Medium class192529 Low class81520 5.4 Sales Channel The sales channel will be designed according to different development stages of company, financial strength and product development depth as well as the product properties, so as to ensure instant entry of product or technology into the market. For design of market channels of dynamic inhalation chamber, the domestic market may be divided into three categories, with the sales modes of direct sales, agency of direction sales and agency system (Table 5-2): Table 5-2 Market Regions and Sales Mode CategoryRegionSales Mode 1st classKey cities of Beijing, Shanghai and GuangzhouDirect sales, with focus on provincial disease control centers, medicine inspection offices and key medical colleges 2nd classOther provinces, cities and regions with established relations, like Guangdong, Zhejiang, Jiangsu, Hebei, Henan, Shangdong and Chongqing etc The company develops the key clients as the market window, with the rest for the agents 3rd classOther regions in ChinaImplementation of agency system Design of international market entry channel: 1.Attending international medical instrument exhibitions (such as the global leading world medical instrument exhibition Germany held once a year), toxicological research conference etc, for promotion of products and seeking agents; 2.To the qualifications for entry into the countries of target market, or to enter the international market with OEM mode; 3.To establish state level cooperation relations to enter the countries of target market through health administrations and drug sales channel; 4.To implement online direct sales based on Internet. 5.5 Advertisement/Promotion and PR Activities Principles: To select authoritative and professional media to create favorable company brand, to actively cooperate with authoritative health departments in the industry in China (such as provincial disease control centers and medicine inspection organizations etc) for joint promotion of the product while enhancing the company brand reputation with the product reputation. （1） To participate in scientific research to have our project become the government approved project for research (currently this product has been listed a the project approved for research by Guangzhou Liwan District Commission of Science and Technology), project of promotion of industrialization of hi-tech industry and 863 Key Project, and to obtain the awards of technological progress at various levels; （2） To support the experts of authoritative health departments to publish academic papers on professional medium with respect to the technology, application and importance of dynamic inhalation chamber, so as to expand the social influence of the product and the company; （3） To publish advertisements on professional magazines and websites and to promote the product with posters and POP on related academic meetings, professional exhibitions and technological seminars; （4） To create advertising materials on the company and products, such as CDs, slides and hand bills, to ensure that the market promoting staff are more professional and convincing in promoting and introducing the products. In some key regional markets, the Product Manager shall give technical support; （5） To maintain good cooperative relations with the academic bodies, public health colleges of medical universities and Partners. 5.6 Sales Target The equipment Production Operation Flow is indicated in Fig 6-1. Metal Processing ElectronicSoftware Material Preparing Cutting Bending Welding Drilling Assembly Purchase Material Preparing PCB processing Affixing & Welding Assembly Composition Test Run Unit Coordination Delivery 6.2 Infrastructure & Equipments For the need of operation and production and with comparison with the plant rents at the areas around Guangzhou, we plan to rent a modern plant in Nanhai, Foshan, as our production center, which is about 6,000m2 in area, in compliance with the safety standards for production and safety. About 1,000m2 will be used as office area and R&D center, 500m2 for warehouse and 200m2 for exhibition hall. The total investment for decoration of plant and offices will reach RMB2,000,000. The rent is RMB20/m2/month, thus the monthly rent will be RMB120,000. The main materials and equipments necessary for production are listed in Table 6-1. Table 6-1 Main Materials & Equipments for Production of Dynamic Inhalation Chamber MaterialUsed ForSource WoodExperiment chamber frameShunde Hongyu Wood Co., Ltd, Zhaofeng Wood Co., Ltd etc. Generally, the unit price of basswood and maple is RMB4000/m3. SteelEquipment casingGuangdong Metal Material Company, Guangzhou Metal Material Company, Guangzhou Nonferrous Metal Imp & Exp Company, Guanghzou Zhujiang Steel Co., Ltd etc. The unit prices of metal materials vary between RMB3,000-10,000/ton according to different types and quality High precision measuring pump Measuring gas and inspection drug content Gas analyzing instrument For analysis of gas in experiment chamber Control systemProving operation control platform Guangdong Computer Center, self-renovated software. Cost for purchase of equipment will be RMB220,000, plus RMB60,000 for running-in before test run, totaling RMB280,000. The infrastructure will be amortized at ten years of depreciation, with residual value at zero. The molding fee will be amortized at six years, with residual value at zero. The equipments will be amortized at five years, with residual value at 10%. The infrastructure and equipment depreciation are as the indicated in Table 6-2. Table 6-2 Infrastructure & Equipments Depreciation ItemTotal (RMB)Depreciation period (Y) Annual expenses (RMB) Rent1,440,000 1,440,000 Plant depreciation2,000,00010200,000 Equipment depreciation280,000550,400 Molding300,000650,000 Total4,020,000 1,740,400 6.3 Analysis of Production Cost Table 6-3 Cost Accounting of Dynamic Inhalation Chamber Y1 (30 sets)Y2 (120sets)Y3 (180sets)Y4 (225sets)Y5 (250sets) ItemUnit cost TotalUnit cost TotalUnit cost TotalUnit cost TotalUnit cost Total Raw material20,000600,00020,000 2,400,00020,000 3,600,00020,000 4,500,00020,0005,000,000 Infrastructure & Equipments Depreciation58,013 1,740,40014,503 1,740,4009,669 1,740,4007,735 1,740,4006,9621,740,400 Labor cost62,747 1,882,40025,328 3,039,40021,580 3,884,40018,535 4,170,40016,6824,170,400 Water & Power50015,00016720,00013925,00013330,00012030,000 Other1,33340,00041750,00027850,00022250,00020050,000 Total142,593 4,277,80060,415 7,249,80051,666 9,299,80046,626 10,490,80043,963 10,990,800 6.4 Implementation Plan After several years of efforts, the company has made a good foundation for mass production and the preliminary works have been completed. The materials needed for production are available in the local market. The production is ready if the capital is raised, so that the industrialization of dynamic inhalation chamber will be realized. Project Progress Schedule is indicated in Table 6-4. Table 6-4 Progress Schedule in First Year Month123456789101112 Plant renting Purchase of equipment Installation & test run Application for approval Recruitment Production Market development It is estimated that the production industrialization will be realized at the sixth month after arrival of financing capital. 6.5 Environmental Influence & Quality Control Our dynamic inhalation chamber is integrated with theories of multiple disciplines and modern applied hi-tech, which is an environment-friendly hi-tech product. For the emergency that may occur in the process of toxicological experiment where the harmful gases in the inner tank may leak out, we have adopted advanced solutions: exhaust blower is installed in the chamber to exhaust the air out of the cylinder in the chamber so as to prevent leakage of toxins from the inner tank and guarantee personal safety and prevent toxin from polluting the atmosphere. As to the post-treatment part, including discharge of harmful gases and solution and cleaning of cylinder and pipelines after experiment that may cause air pollution, the professional tail gas treatment devices is used, which may ensure corresponding discharge standard. In addition, we plan to obtain ISO2000 certification within three years to ensure systematic and standard quality control system. 7. Organization Structure & Personnel Management 7.1 Organization Structure After arrival of financing capital, the company will guarantee to use the capital on development of inhalation equipments. The main business of the company will be adjusted to the inhalation chamber, and the organization structure and posts will be adjusted according as indicated in Fig 7-1 and 7-2. The company will be consisted of 5 departments. The R&D Dept is responsible for R&D Dept Jiufang Electronics Co., Ltd Manufacturing DeptMarket DeptEngineering Dept Fig 7-1 Organization Structure Admin Dept Fig 7-2 Chart of Posts R&D Manager General Manager Manufacturing ManagerMarket ManagerEngineering Manager Software Researcher Drawing Designer Woodworker Machine Man QA Overseas Coordinator Business Personnel Engineer Accountant Cashier Driver Secretary Admin Manager Vice General Manager development of core software and design of appearance and machinery features. The Manufacturing Dept ensures production according to the orders and the design drafts. The Market Dept is consisted of Internal Market Team and Overseas Market Team. The Overseas Coordinator is responsible for contacting the import and export companies and the overseas agents for developing the overseas market. The Internal Market Team business personnel will be responsible for development of domestic market. The Engineering Dept is responsible for equipment installation, operation training and aftersales services etc. The Admin Dept is responsible for financial, logistics and administrative affairs. In the first year after arrival of the fi