Wood-plastic Composite Materials Production … Composite Materials Production Guizhou Provincial Investment Promotion Bureau 2012 Hotline for Investment Service of Guizhou ... Wood-plastic

Wood-plastic Composite Materials Production

Guizhou Provincial Investment Promotion Bureau 2012

Hotline for Investment Service of Guizhou Province：0851-6826305

Tel of the Project’s Unit：0855-8275643

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32Pages in Total





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32Pages in Total

Wood-plastic Composite Materials

Production

Recommendation for Attracting

Investment

Contents

1. Overview ............................................................................................ 5

2. Introduction of the Site Where the Project will be Operated ............ 5

3. Enterprise’s Profile ............................................................................ 6

4. Industrial Background ........................................................................ 6

4.1.Product and Its Features ................................................................ 6

4.1.1.Product ............................................................................... 6

4.1.2.Features of the Product ...................................................... 6

4.2. Industrial Characteristics and Marketing ..................................... 7

4.2.1.Industrial Characteristics ................................................... 7

4.2.2. Marketing .......................................................................... 8

4.3. Analysis of the Project Strengths ......................................................... 9

4.3.1.Competitive Advantage ..................................................... 9

4.3.2.Market Advantage .............................................................. 9

5. Analysis of Technology ...................................................................10

5.1 Maturity Analysis of Technology ...............................................10

5.2 Analysis of Technique .................................................................10





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5.2.1 Pretreatment of Raw Materials ........................................ 11

5.2.2 Pelleting ........................................................................... 11

5.2.3 Extrusion Moulding ......................................................... 11

5.2.4 Surface Treatment ............................................................12

5.2.5 Product Inspection and Classified Packing .....................12

6. Contents of Construction .................................................................12

6.1. Construction’s Goal ...................................................................12

6.2 Construction ................................................................................12

6.2.1. Building Project ..............................................................12

6.2.2. Equipments .....................................................................13

7. Analysis of Economic Indicators .....................................................15

7.1 Estimated Investment ..................................................................15

7.1.1 Total Investment...............................................................15

7.1.2 Utilization of Funds .........................................................16

7.2 Production Capacity and Estimated Revenue .............................16

7.3 Estimated Raw Materials ............................................................16

7.4 Estimated Costs of Workforce, Manufacturing, Management,

and Marketing ...........................................................................................17

7.4.1 Regular Working Staffs, Salary and Welfare ...................17

7.4.2 Manufacturing Expenses .................................................17

7.4.3 Estimated Overhead Expenses .........................................17

7.4.4 Selling Cost ......................................................................18

7.4.5 Financial Cost ..................................................................18





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7.5 Conclusion of Economic Analysis ..............................................18

7.5.1 Analysis of Profitability ...................................................18

7.5.2 Conclusion of Financial Analysis ....................................19

8. Summary ..........................................................................................19





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1. Overview

By making full use of the rich timber resources in Qiandongnan

Prefecture, the project, led by Qiandongnan Prefecture Forestry Group

Artificial Board Co., Ltd., takes offcut and waste plastic as the basic

materials to produce a new multi-purpose wood-plastic composite

materials. The new materials feature in high-polymer chemistry

principles and filled plastic. Meanwhile, after some special treatment

and process, the new materials can be recycled.

Due to the stiffness of plastic, toughness and flexibility of wood,

Wood-plastic composite materials and their products are widely used in

many areas, like construction, automobile, shipping and furniture. Since

the 1980s, its sales volume is increasing dramatically.

The total investment of the project is 98.7749 million Yuan, among

which the fixed assets investment is 75 million Yuan and initial working

capital is 23.7749 million Yuan. The production line with 20,000 tons of

wood-plastic production annually has been built.

After full production, the annual sales income is 280 million Yuan,

the annual overall cost 227.885 million Yuan, the annual profit 26.0605

million Yuan, the annually average sales tax and its surtax 13.8672

million Yuan. With the 24% internal rate of return and the net present

value of 31.5672 million Yuan, the static investment payback term is

4.9 years.

2. Introduction of the Site Where the Project will be

Operated

Kaili City is the capital of Qiandongnan Miao&Dong Autonomous

Prefecture, located in the Miao ridge from Yun-Gui Plateau to midlands,

surrounded by clean river. Xiang-Qian Railway, Zhuzhou-Liupanshui

Double Track Lines, G60 Hu-Kun Highway and 320 State Line all

passing trough the area.

Qiandongnan Prefecture is one of the most forest districts in China,

abundant in forest. Besides, because of being the main commercial

wood area, it is entitled with Home of Fir in China" and Sea of Forest".

The area of forest here is 2,232,000 hectare; the storage of useful wood

is 67,600,000 m3. The forest coverage is the top one (49.37%) in

Guizhou. It boasts one nature reserve at provincial level and seven





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nature reserves at county level.

3. Enterprise’s Profile

Qiandongnan Prefecture Forestry Group Artificial Board Co., Ltd

is the backbone enterprise in Artificial Board Association in Guizhou

Province, and is a leading company in forestry industry in Qiandongnan

Prefecture. It specializes in producing medium density fiberboard.

There are two producing lines for the production. And the annual

production capacity is 50,000 cubic meters and its annual output value

is 33 million Yuan.

The company has 138 staff in total, including 19 technical

personnel, 4 with intermediate qualification, and 15 with junior

qualification.

4. Industrial Background

4.1.Product and Its Features

4.1.1.Product

Wood-plastic composite materials are mainly based on agricultural

and forestry wastes and other primary biomass-based raw materials.

The new materials feature in high-polymer chemistry principles and

filled plastic. When mixed with a certain proportion of plastic base

materials and supported by appropriate processing aids, it can form a

kind of recyclable and multi-purpose material after the special

treatment.

4.1.2.Features of the Product

Due to the advantages of both wood and plastic, wood-plastic

composite materials and their products thus are rigid like plastic, and

tough and flexible like wood. Besides, it has its unique features: ○1It is

moth-resistant, anti-aging, anti-corrosion, and hardly water absorption

or deformation, and with a long service life.○2 It is wood-like, but has a

better wood dimensional stability. It would not crack, warp, or have

wood scar. It also can be cut, pasted, jointed by nails and bolts, or

re-processed like wood. ○3It has a higher hardness than plastic, and with

unique feature of thermoplastics processing. Since its reusage and

app:ds:medium

app:ds:density

app:ds:fiberboard





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recyclability, it is environmentally friendly. It has a wide range of

applications:

As for the construction materials, it can support a variety of

decorative materials indoors and outdoors, such as ceilings, floors,

fences, stairs, panels, doors, window frames, building templates,

moisture separators and moldings, etc.

As for vehicles, and ships manufacturing materials, it can be made

as sustainable vehicle and ship floor, handrails, instrument panels, seat

backs, and cabin partitions.

As for packaging and transportation materials, it can be made into

a variety of industrial pallets, warehouse bedding plate, various packing

cases, and transport shelf.

As for landscaping materials, it can be made into fence, decking

plank road, flower boxes, waste bins, outdoor decking, garden handrails,

and decorative plates.

As for furniture manufacturing materials, it can be made into

tables, chairs, benches, sofas, beds, cabinets, bookshelves, and coffee

table, etc.

4.2. Industrial Characteristics and Marketing

4.2.1.Industrial Characteristics

The wood-plastic composite materials nowadays are mainly based

on agricultural and forestry wastes and other primary biomass-based

raw materials. The new materials feature in high-polymer chemistry

principles and filled plastic. When mixed with a certain proportion of

plastic base materials and supported by appropriate processing aids, it

can form a kind of recyclable and multi-purpose material after the

special treatment. It is a desirable alternative to natural wood. Statistics

shows that the production of one ton wood-plastic material, you can

save ten 20-year-old timber trees. Making full use of the cotton stalk,

straw and waste plastics to develop recycling-based green building

materials industry is not only in line with the requirements of the

modern industrial economy, but also, it helps to control pollution and to

utilize comprehensively as well as extend the industrial chain. It thus

forms a feedback process of “resources-products-renewable objects”,

app:ds:vehicle





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and a resource recycling mode of "low input - high output - zero

emissions”. It therefore helps treat the increasingly serious white

pollution, and reduce the impact that the agricultural residue straw

makes on the agricultural machinery quality, and process, and thus,

increase the income of agricultural workers. The products can not only

drive the local economy, but also solve the low employment in rural

area, which play a practical role in helping government solving the

“Three Rural Issues”.

At present, in Qiandongnan Prefecture of Guizhou Province, there

are 500,000 m3 of commercial wood consumption annually, with

80,000 tons of low-quality timber and logging slash. Still, 330,000

cubic meters of commercial timber and 300,000 tons of low-quality

materials and logging slash can be used as the raw material for the

project. So there is no worry for the lack of raw material.

4.2.2. Marketing

Given the current wood-plastic commodity market reality and the

prospects in China, the project focuses on its characteristics, and then

gradually promote and develop the products from general market to

specific market, and from the indoor to outdoor. We are trying to

expand the new market around the following areas.

(1) Enter the market fields that ordinary wooden product cannot

easily enters such as outdoor buildings, garden facilities, wood

packaging.

(2) Enter the fields that the wood-plastic goods can play a good

performance, such as architectural templates.

(3) Enter the fields with price advantage, such as highways, rail

fences, etc.

(4) Enter the fields with special requirements for environment

protection, such as home renovation, kitchen furniture, export container,

etc.





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4.3. Analysis of the Project Strengths

4.3.1.Competitive Advantage

At present, Qiandongnan wood processing and comprehensive

resources utilization project mainly produce blockboard, plywood,

medium density fiberboard and other wood-based panel products. With

small scale production, low-grade products, low added value, low

scientific and technological level, its environmental performance and

market potential are far lower than the wood-plastic composite

materials.

That taking offcut and waste plastic as the basic materials to

produce wood-plastic composite materials cost less than the traditional

product and is more competitive in the market..

During the processing, the surface of the wood-plastic composite

materials can be pressed into a variety of patters and have paint

handling. It can directly be processed as doors, windows and other

products. Therefore, with different colors and samples, its market is no

longer a single, but broad and competitive.

4.3.2.Market Advantage

With the continuous improvement of people's living standards,

people also have higher requirements for the materials they use and live.

Green, ecologically clean materials, as well as with stable performance

have a very broad development prospect.

Making full use of forestry residues and waste plastics, the project

can produce the wood-plastic composite material that is non-toxic,

non-pollution and recyclable. It is stronger than fiberboard, and its

water resistance ability is better than phenolic plastic wood-based

panels. Its overall performance is excellent. Using less or no natural

resources and energy is of great significance to improving people’s

living environment and maintaining a good ecological environment. It

thus can bring considerable economic and social benefits for our

society.

North America is the world's largest wood-plastic composite

materials consumption area. Its consumption volume is 320,000 tons





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in2001; the consumption volume in 2005 is double than that in 2001,

reached 700,000 tons. In 2007, the market for wood-plastic composite

materials around the world was USD 1.4 billion which had maintained a

good growth momentum by the year 2010. The growth rate had reached

19%, which is much higher than the overall growth rate of the plastic

industry over the same year.

5. Analysis of Technology

5.1 Maturity Analysis of Technology

Wood-plastic composite materials has begun to gain popularity

since 1980s and reached rapid development in 1990s. With introduction

of technology of wood-plastic composite materials production into

China in the 21st century, more than ten enterprises began to produce

wood-plastic composite materials in the provinces of Anhui, Jiangsu,

Guangdong, Liaoning provinces, etc.

Technology applied in this project is “Extrusion Molding

Technology” developed by the Wood Industry Institute of China

Forestry Science Research Institute. With recognition of State

Administration of Forestry, the technology has shared three national

patents for invention and six patents of utility model and the exterior

and performance has reached the international leading level. The

products of a demonstration plant with the annual capacity of 10,000

tons in Qingdao have been successfully used to the construction of

Olympic buildings.

5.2 Analysis of Technique

Processing technique is shown as follows:





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5.2.1 Pretreatment of Raw Materials

Pretreatment of raw materials aims to make their status and

performances available for technical processing.

After pulverizing, the wood meal will be seasoned to realize the

moisture content of 8%~12%; and then seasoned timber will be

delivered to the roller mill and finally we will get the wood powder

with average standard size of 60~80 holes of each square inch.

5.2.2 Pelleting

In proportion of 60%, 35%, 5%, wood meal, recycled plastic and

processing aids will be batched in the high/low speed mixer set and then

be pelletized in the double-screw extruder. What followed are

measurement, packing and warehousing.

5.2.3 Extrusion Moulding

Entering the conical twin-screw extruder, the composite grains will

be delivered to the mould where hydronics occurs, after which sections

shall be got with the help of traction machine.

Plant fiber dehydration

and surface treatment

Batching Pelleting

Batching Cooling

means

Extrusion

moulding

Extrusion

moulding

Tracto

r

Guillotine

shear

Stockpilin

g

Inspection Sorting Wareho-using





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5.2.4 Surface Treatment

With transferring machine and embossing machine, staining and

embossing should be done during stretching and placing comes next

after cutting, while those which don’t go through staining and

embossing will be dealt with sanding.

5.2.5 Product Inspection and Classified Packing

The certificated products will be packaged and stored in the

warehouse. By crushing and pelleting for the leftover materials, they

can be reclaimed as raw materials.

6. Contents of Construction

6.1. Construction’s Goal

This project aims to establish a production line with an annual

output of 20,000 tons of wood-plastic composite materials. The

varieties of products are as follows: plates of various kinds, railings,

decorative sheets, profiled bars, building units (beam columns, walling,

door and window frame), furniture parts, etc. Specifications are up to

the requirements of market and customers.

6.2 Construction

Due to new construction within the exsiting plant area, the project

involves no land purchasing.

6.2.1. Building Project

NO. Items Building Area

（㎡）

1 Wood-plastic Composite Materials

Workshop

22,400

2 Pump Room of Recycling Cooling

Water

40





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3 Substation Transformer Center 240

4 Room of Fire Pump 40

5 Finished Goods Warehouse 1,350

6 Office 43

Total 24,500

The investment for the building project is 15million Yuan.

6.2.2. Equipments

NO. Names &Specifications Quantity(set/unit) Remarks

Ⅰ Pretreatment

1 Crusher 4

2 Roller mill 5

3 Heat Drier 2

Ⅱ Pelleting

1 High\Low Speed Mixer Set 12 two high speed

mixer sets& one

low speed mixer set

2 Double Screw Extruder 10





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3 Measurement&Packing

Machine

11

4 Forklift(3～5tons) 2

Ⅲ Extrusin Moulding

1 Conical Twin-screw Extuder

58/125

2


65/132

30


80/156

5

4 Assembling Die 54

5 Other Dies 11

Ⅳ Surface

Treatment&Assembling

1 Transfer Machine 4 two-tone

2 Embossing Machine 4

3 Sanding Machine 5

4 Assembling Equipment 1

Ⅴ Recycling

1 Crusher 2 grain size(big)





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2 Crusher 2 grain size(small)

Ⅵ Processing Aids

1 Air Compresser4Nm3/min 5

2 Circulation Cooling System

9600L/min

1

3 Vehichel 3

Ⅶ Power Supply Equipments

1 10kVtrolley 5

2 Transformer 2

3 Low Voltage Chest 12

4 Low Voltage Capacitor

Compensate Box

4

5 Power Distribution Cabinet 12

The investment of the above equipments is 60 million yuan.

7. Analysis of Economic Indicators

7.1 Estimated Investment

7.1.1 Total Investment

The gross investment of this project is 98.7749 million Yuan, of

which the fixed assets reach 75 million Yuan and the initial working

capital reach 23.7749 million Yuan at mimium.





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7.1.2 Utilization of Funds

Funds of this project will be used in the following aspects:

Project Budget(1 million Yuan)

Basic Buildings 15.00

Equipments 60.00

Initial Working Capital 23.7749

Total 98.7749

7.2 Production Capacity and Estimated Revenue

Based on market share and sales volume prediction, a tentative

plan for the scale of production is drawn out as follows:

Production capacity will be 40% of the designed productive

capacity for the first year, 80% for the second year and 100% for the

third and following years. Duration of the project is ten years.

As estimated, annually 20,000 tons of wood-plastic composite

materials whose average price is 14,000 Yuan per ton, can be produced

yearly. Thus, the annul sales income is 350 million yuan.

7.3 Estimated Raw Materials

The cost of main raw materials is 9,000yuan per ton.

Details of fuel and power consumption are shown as follows:

Item Unit Quantity Cconsumption

Water m3/t 6 150,000





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Power Kwh/t 320 8,000,000

Total

7.4 Estimated Costs of Workforce, Manufacturing,

Management, and Marketing

7.4.1 Regular Working Staffs, Salary and Welfare

It is planed to hire 230 workers whose annual wage and welfare is

20,000 Yuan per person, which will cost 4.6 million Yuan annually.

7.4.2 Manufacturing Expenses

① Repair charge accounts for 5% of the original value of fixed

assets.

② Composite life method is applied in depreciation of fixed

assets.

The average annual depreciation rate of production and

non-production equipments is 10%. The salvage value is 4% of the

original value and the compounding period is 10 years.

③ estimated other manufacturing expenses

Other manufacturing expenses account for 10% of the original

value of fixed assets.

7.4.3 Estimated Overhead Expenses

Overhead expenses(including the wage and welfare of 10

management staff, company appropriation, funds for the board of

directors, trade union’s funds, employee education funds, labor

insurance and medical insurance, etc.) is 0.3 million Yuan and 5% of

annual sales should be added to the fixed amount.





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7.4.4 Selling Cost

It shall be the fixed amount 0.3 million and 5% of the annual sales.

7.4.5 Financial Cost

According to financial system, interest paid on long-term loans and

current fund loans should be included in the total cost expense, no bank

loans involved in this project.

7.5 Conclusion of Economic Analysis

7.5.1 Analysis of Profitability

① Profits evaluation and distribution

Details of sales revenue, sales tax and extra charges, profits

distribution are shown in the income statement.

② Analysis of cash flow statement and evaluation indicator

The following indicator is accounted for according to cash flow

statement (see the appendix for detail).

INDEX NAME

Net Present Value（I＝15％，1 million Yuan）＝31.5672

Internal Rate of Return＝18％

Static Investment Term＝4.9 years

Return On Investment＝26％

Internal rate of return is higher than the basic rate of income which

is 15%, and net present value is much greater than zero, therefore the

project is financially feasible.





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7.5.2 Conclusion of Financial Analysis

With achievement of designed capacity, the annual income of sales

shall be 280 million Yuan; the annual total cost is 227.885 million Yuan;

the annual profit is 26.0605 million Yuan; the annual sales tax and extra

charges is 13.8672 million Yuan; the internal rate of return is 18%; the

static investment term is 4.9 years; the net present value is 31.5672

million Yuan. All indexes above are higher than national industry

standard, which proves its economic feasibility.

Summary

This project is to make full use of wood for waste materials and

plastics processing to produce wood-plastic composite materials able to

be recycled and regenerated. Staying in line with national industrial

policy, the project not only stays in line with national industrial policy

not only but remains economical use of wood and environmental

friendly as well. Moreover, with bright market prospect and mature

technology, it risks very little and enjoys high benefits.





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Estimated Tax and Surtax（Unit：10,000 Yuan）

No. Item

The 1st

Year

The 2nd

Year

The 3rd

Year

The 4th

Year

The 5th

Year

The 6th

Year

The 7th

Year

The 8th

Year

The 9th

Year

The 10th

Year

Production

Load（％） 40.00 80.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1 Sales Revenue 11200.00 22400.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00

2

Sales Tax &

Surtax 686.63 1386.72 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76

2.1

Value-added

Tax （VAT） 624.21 1260.65 1578.88 1578.88 1578.88 1578.88 1578.88 1578.88 1578.88 1578.88

2.11 Output Tax 1904.00 3808.00 4760.00 4760.00 4760.00 4760.00 4760.00 4760.00 4760.00 4760.00

2.12 Input Tax 1279.79 2547.35 3181.13 3181.13 3181.13 3181.13 3181.13 3181.13 3181.13 3181.13





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2.2

Urban

Maintenance &

Construction

Tax 43.69 88.25 110.52 110.52 110.52 110.52 110.52 110.52 110.52 110.52

2.3

Surtax for

Education

Expenses 18.73 37.82 47.37 47.37 47.37 47.37 47.37 47.37 47.37 47.37

Estimated Profit（Unit：10,000 Yuan)

No. Item

The 1st

Year

The 2nd

Year

The 3rd

Year

The 4th

Year

The 5th

Year

The 6th

Year

The 7th

Year

The 8th

Year

The 9th

Year

The 10th

Year

1

Sales

Revenue 11200.00 22400.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00

2 Total 9924.20 18500.40 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50





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Cost

3

Sales Tax

& Surtax 686.63 1386.72 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76

4

Taxable

Income 589.17 2512.88 3474.74 3474.74 3474.74 3474.74 3474.74 3474.74 3474.74 3474.74

5

Income

Tax 147.29 628.22 868.68 868.68 868.68 868.68 868.68 868.68 868.68 868.68

6

After-tax

Profit 441.88 1884.66 2606.05 2606.05 2606.05 2606.05 2606.05 2606.05 2606.05 2606.05

7

Accumulat

ive Total

Profit

After-tax 441.88 2326.54 4932.60 7538.65 10144.70 12750.75 15356.81 17962.86 20568.91 23174.97





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Estimated Working Capital（Unit: 10,000 Yuan）

No. Item

Mini

mum

Turn

over

Days

Tu

rn

ov

er

Ti

me

s

The 1st

Year

The 2nd

Year

The 3rd

Year

The 4th

Year

The 5th

Year

The 6th

Year

The 7th

Year

The 8th

Year

The 9th

Year

The 10th

Year

Produ

ction

Load

（％） 40.00 80.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1

Curre

nt

Asset

s 3572.48 6563.84 8059.52 8059.52 8059.52 8059.52 8059.52 8059.52 8059.52 8059.52

1.1 Recei

vable 40 9 1244.44 2488.89 3111.11 3111.11 3111.11 3111.11 3111.11 3111.11 3111.11 3111.11





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s

1.2

Inven

tory 688.03 1314.95 1628.41 1628.41 1628.41 1628.41 1628.41 1628.41 1628.41 1628.41

1.2.1

Raw

and

Auxil

iary

Mater

ials 30 12 56.67 113.33 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67

1.2.2

Motiv

e

Power 30 12 21.35 42.70 53.38 53.38 53.38 53.38 53.38 53.38 53.38 53.38

1.2.3

Unfin

ished

Produ

cts 15 24 334.34 645.02 800.35 800.35 800.35 800.35 800.35 800.35 800.35 800.35

1.2.4 Finis

hed 10 36 275.67 513.90 633.01 633.01 633.01 633.01 633.01 633.01 633.01 633.01





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Produ

cts

1.3 Cash 1640.00 2760.00 3320.00 3320.00 3320.00 3320.00 3320.00 3320.00 3320.00 3320.00

2

Curre

nt

Liabi

litie

s

2.1

Accou

nt

Payab

le 60 6 159.06 107.68 134.54 134.54 134.54 134.54 134.54 134.54 134.54 134.54

3

Worki

ng

Capit

al 3413.42 6456.16 7924.98 7924.98 7924.98 7924.98 7924.98 7924.98 7924.98 7924.98





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Estimated Cash Flow （Unit: 10,000 Yuan）

No. Item

Constru

ction

Period

The 1st

Year

The 2nd

Year

The 3rd

Year

The 4th

Year

The 5th

Year

The 6th

Year

The 7th

Year

The 8th

Year

The 9th

Year

The 10th

Year

Production Load

（％） 40.00 80.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1 Cash Inflow 11200.00 22400.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 31713.42

1.1 Sales Revenue 11200.00 22400.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00 28000.00

1.2 Recovered Fixed

Assets Margin 300.00

1.3

Recovered

Circulating

Fund

3413.42





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Recycling

Subsidies for

Advanced Funds

0.00

2 Cash Outflow 9877.49 10758.12 20515.34 25393.95 25393.95 25393.95 25393.95 25393.95 25393.95 25393.95 25393.95

2.1 Fixed Assets

Investments 7500.00

2.2

Intangible

Assets

Investment

2.3 Deferred Assets

2.4 Initial Working

Capital 2377.49

2.5 Subsidies for

Advanced Funds





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2.6 Operating Cost 9924.20 18500.40 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50

2.7 Sales Tax &

Surtax 686.63 1386.72 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76 1736.76

2.8 Income Tax 147.29 628.22 868.68 868.68 868.68 868.68 868.68 868.68 868.68 868.68





Page 29

32Pages in Total

The Depreciation of Fixed Assets and Deferred Assets Amortization Schedule（unit：10,000 Yuan）

No. Item

Depreci

able

Life

Const

ructi

on

Perio

d

The

1st

Year

The

2nd

Year

The

3rd

Year

The

4th

Year

The

5th

Year

The

6th

Year

The

7th

Year

The

8th

Year

The

9th

Year

The

10th

Year

1 Total Fixed Assets 10

Original Value 7500

Depreciation Expense 720 720 720 720 720 720 720 720 720 720

Net Value 6780 6060 5340 4620 3900 3180 2460 1740 1020 300

2 Intangible Assets 10

Amortization 0 0 0 0 0 0 0 0 0 0 0





Page 30

32Pages in Total

Net Value 0 0 0 0 0 0 0 0 0 0

3 Deferred Assets 5

Amortization 0 0 0 0 0 0

Net Value 0 0 0 0 0

4

Total Intangible and

Deferred Assets

Amortization 0 0 0 0 0 0 0 0 0 0

Net Value 0 0 0 0 0 0 0 0 0 0

5 Total 720 720 720 720 720 720 720 720 720 720





Page 31

32Pages in Total

Estimated Costs of Purchasing Fuel and Power (unit: 10,000 Yuan)

S/N Item Unit

Unit

price(Yuan)

The 1st

producing year

The 2nd

producing year

The 3rd

producing

and the future

years

Consumption Amount (Yuan) Consumption Amount (Yuan) Consumption Amount (Yuan)

1 Electricity hw/h 0.75 3200000 240 6400000 480 8000000 600

2 Water ton 2.7 60000 16.2 120000 32.4 150000 40.5

Total 256.2 512.4 640.5

Estimated Cost（Unit:10,000 Yuan）

No. Items 1st year 2

nd year 3

rd year 4

th year 5

th year 6

th year 7

th year 8

th year 9

th year 10

th year

Product load

（％）） 40.00 80.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1

Raw

material

purchased 7200.00 14400.00 18000.00 18000.00 18000.00 18000.00 18000.00 18000.00 18000.00 18000.00

2

Fuel and

power

purchased 256.20 512.40 640.50 640.50 640.50 640.50 640.50 640.50 640.50 640.50

3

Salaries

and welfare 460.00 460.00 460.00 460.00 460.00 460.00 460.00 460.00 460.00 460.00

4 Manufacture 828.00 828.00 828.00 828.00 828.00 828.00 828.00 828.00 828.00 828.00





Page 32

32Pages in Total

cost

4.1 Fix fund 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00

4.2

Depreciation

and

Amortization

cost 720.00 720.00 720.00 720.00 720.00 720.00 720.00 720.00 720.00 720.00

4.3

Other

Manufacture

cost 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00

5

Rent for

Factory

house

6

Management

fees 590.00 1150.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00

7

Sales

capital 590.00 1150.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00 1430.00

8 Total cost 9924.20 18500.40 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50 22788.50

8.1

Fixed

assets 1918.00 2478.00 2758.00 2758.00 2758.00 2758.00 2758.00 2758.00 2758.00 2758.00

8.2

Variable

assets 8006.20 16022.40 20030.50 20030.50 20030.50 20030.50 20030.50 20030.50 20030.50 20030.50

app:ds:depreciation

app:ds:cost

app:ds:cost

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Wood-plastic Composite Materials Production … Composite Materials Production Guizhou Provincial Investment Promotion Bureau 2012 Hotline for Investment Service of Guizhou ... Wood-plastic