1.1.Backgroun

1. Vast market and enormous business opportunities
One of 70 kinds of rare Chinese herbal medicines with the state’s key management is honeysuckle with the use of food and medicine, which has a long history of cultivation. Its flower buds, leaves, stems and branches can be medicine which is natural green plants with the effects of antibacterial, anti-virus, anti-oxidation etc. The honeysuckle with good effects of nutrition and healthy contains 15 kinds of trace elements and more than 60 kinds of chemical elements such as chlorogenic acid, flavonoids, linalool. It can remove toxic substances of the body, prevent the absorption of the intestinal cholesterol, reduce weight, prevent the cardiovascular disease to beautify the features and extend your life. The honeysuckle not only has been introduced into people’s daily life from the single medicinal materials towards the comprehensive areas of daily cosmetics, healthy products, animal feed additives etc., but also is an extremely valuable ornamental plants which can prevent the wind taking sands, keep the water and soil, improve the soil, beautify the city to improve the ecological environment. As the recent national key project of eco-environmental protection, it has a vast market and enormous business opportunities.
2. Limit for demand of funds
In order to enter the domestic and foreign markets in the way of high value-added products as soon as possible, we have to raise funds by adopting the operating mode of internationally accepted investment to introduce domestic and foreign funds. The amount of funds is 20 million dollars which are used as fixed assets and working capitals of projects, “Cultivation and processing of Yate honeysuckle about 100 000 mu”.

1.2Company

1. Products
On the basis of the study in the wide range of domestic and foreign products, we research and develop more than 150 varieties with independent intellectual property rights, including series of deep processing of honeysuckles, metal surface pre-treatment products, natural health products. It has been included into the State Torch Key Projects with advanced processing, leading technology and great performances.
2. Spirits
Hard-working, kind-hearted, realistic and innovative, self-improvement, relentless pursuit
3. Basic situation
Registered capital: 6 million yuan
Legal representative: Li Shengbo
Business type: limited liability company
Address: Linyi High-tech Industrial Development Zone.
Tel: 0539-6010228 8288288 Fax: 0539-7109289
Website: www.yatecnjyh.com E-mail: yate886@sohu.com
Contact: Tong Shumei & Li Xiuhua
4. Basic conditions of the corporation
The chairman and managing director of the company is Mr. Li Shengbo who has achieved the degree of Bachelor Art at Hehai University in China, Master degree in business administration of American International Southwest University, master degree of China Agricultural University in agricultural extension. He not only is a researcher of engineering application, one of young and middle-aged experts with outstanding contributions in Shandong Province, the well-known national expert, but also enjoys special allowances of the State Council with strong pioneering spirits and excellent management capabilities.
5. Background and current situation
The company founded in April 2002 was called Linyi Yate Limited Company in Shandong which was a high-tech private enterprise established by the original five shareholders, Li Shengbo and so on. From the pioneering to growing period the company has developed from a state-owned small chemical plant closing to bankrupt to one key high-tech enterprise of the National Torch Program integrating scientific researches, industries, trades. On conditions that it has the independent right to import and export, and passed the certification of ISO/TS 16949:2002 and ISO9001:2000 international quality system, the company is composed of three parts: Linyi Yate Co., Ltd. in Shandong, Linyi Yate Biological Technology Co., Ltd., Shandong Hanke Surface Engineering Technology Co., Ltd.. They not only were in charge of accomplishing four national high-tech projects, eight key scientific and technological development projects in Shandong Province, but also won three international and national gold awards, ten awards of scientific and technological progress in provinces and cities, two patents for inventions, twelve fine varieties of honeysuckle. Its intangible assets in science and technology are over 360 million yuan.
6. Development and future
(1) Forms of assets investment and cooperation
We will cooperate with foreign capitals by the following assets: 160,000 million yuan intangible assets of intellectual properties of Yate trademark and fine varieties of honeysuckle. After the foreign capitals are in place, a new joint venture will be built.
(2) Development plan of future
100,000mu standardized planting bases of Yate honeysuckle were established by the way of company-base-farmer with land shares to produce 30,000 tons of new security of Chinese medicinal feed additives whose main elements are leaves and branches of honeysuckle. Within five years, they can achieve an annual output value of 1.44 billion yuan and 523.8 million yuan of profits after-tax by producing 10,000 tons of pollution-free honeysuckles a year, 30,000 tons leaves, 100,000 tons of new security of Chinese medicinal feed additives. According to the demand of the changing market, the company will produce the following products on the basis of extractions of honeysuckle: healthy food, cosmetics used in skin care and products of Chinese medicine. It will become a group in the form of industrial chain of cultivation-extraction-comprehensively processing.
1.3. Management of team and human resources
1. Organizational structure
Under the leadership of the board of directors, we adopt the system of managers responsible for the company. Organizational structure of the company adopting a classification management includes the following nine major subsystems: an integrated department, an office, productions, quality inspections, sales and purchasing departments, centers of researching and developing, management of bases, finance sections. They divide workings reasonably, integrate rights and obligations to ensure the operation of business activities timely, accurately, flexibly.
2. Management team
At initial time the senior policy-making body of the company was composed of four pioneers who were graduated from universities with high-qualities. The core leadership team has a reasonable structure of knowledge, they bring themselves into play from management, administration, technology, financial control. Meantime, it is a team with professional dedication, good credits and resilience. Major investors, members of the management and the board of directors have no records of criminal charges, bankrupt or falling into debt.
3. Consultancy team
The team is composed of four domestic well-known doctors in the area of cultivation, comprehensive utilization and processing, marketing and laws of Chinese herbs.
4. Strategic partnership
We have built the long-term strategic partnership with four units: Powder Engineering Lab, Department of Material, Tsinghua University; Agricultural College of Shandong Agricultural University; Analysis and Test Center in Shandong Province; Institute of New Materials of Shandong Academy of Sciences. They bring their play at the platform of scientific research, education, human resources and test to provide a strong support for technological innovation and the development of new products.
5. Resources from relations
The company has extensive social relations, and keeps good contact with experts and organizations as follows: economists, management experts and professors from many national and international scientific research institutes, CEO of companies, more than 100 classmates of MBA, many of the national, provincial and municipal administrative organizations, National Personnel Department, the National and Municipal Commission of Science and Technology, State Commission of Development and Reformation. These are the essential resources to develop businesses and ensure the quality.
6. Management of human resources and plans of development
At present we have 66 employees, 36 of them are professional technical personnel with associate degrees. As the company is developing, the structure of human resources will be improved so well that numbers of employees will reach 200, 200 of them are technical staffs with associate degrees in the next two years.
1.4. Cultivation and processing of honeysuckle
The project includes two parts: one is the cultivation of Yate honeysuckle seeds about 100,000 mu; the other is the comprehensive processing and utilization of Yate honeysuckle seeds about 100,000 mu.
1. Construction of Yate honeysuckle planted bases
On conditions that the company cultivates fine varieties of honeysuckle, the government guides and provides preferential policies to establish 100,000 mu cultivation base of GAP pollution-free honeysuckle, which supply stable materials for comprehensive cultivation and utilization.
2. Advantages of Yate honeysuckle
Four varieties of Yate fine honeysuckle have advantages of high yield, pest and disease resistance, strong adaptability, high medicinal value and stable heredity after breeding of five years. In 2004, it passed the provincial scientific technical appraisement and validation of improved varieties. Recently its output is three times of the ordinary honeysuckle in our country with good quality, low-cost used in comprehensive development and utilization and great competitiveness.
3. Superior natural conditions
100,000 mu planting bases of Yate honeysuckle are distributed over the area of Shi Yan in Hubei province, the mountains of Guzi, Mengshan and Taishan. These sites fitting the growth of honeysuckle have prime locations, convenient traffics, rich resources of land, water and human, good climatic conditions.
4. Significance of comprehensive processing and utilization of honeysuckle
At present, the resources of honeysuckle are not exploited fully for the backward technology at six major honeysuckle-producing areas. The project of honeysuckle comprehensive processing will utilize all parts of honeysuckle, flower buds, leaves and branches etc. to develop products as follows:
Flower buds, leaves of honeysuckle are used to produce high-grade healthy tea.
Leaves and branches of honeysuckle are used to produce new security of Chinese medicinal feed additives.
The significance to realize the industrialization of the above products is so great that its economic benefits will increase two or three times to promote the development of planting industry of honeysuckle.
5. Environment of integrated processing garden
The site of integrated processing garden is Linyi High-tech Industry Development Zone in Shandong Province, which is approved to establish one of provincial high-tech development zone by Shandong People’s government in June, 1992. The important external environments of the project to success are the following: 190.6 square kilometers of constructional areas, the special advantage of location, the sound facilities, excellent investment environment, preferential investment policies.
6. Procedure of comprehensive utilization and processing of honeysuckle
The high-tech project is developing from standardized cultivation to comprehensive development and utilization included in the National Spark Plan in 2004, included in the projects of supporting capitals from National Development and Reform Commission. It realizes the combination of multidisciplinary and the maturity of standardized cultivation and processing technology. Harvest-drying technology of comprehensive utilization and processing of honeysuckle is blank at home and abroad. We are applying for the patent that the advanced processing technology can make fully use of honeysuckle. The production cost is one third of the same industry with strong market competitiveness and independent intellectual property rights. The quality meets the international standards.
7. The main functions of honeysuckle products of deep processing
(1) Healthy tea of honeysuckle
The tea contains 15 trace elements required by the body and more than 60 chemical elements, such as chlorogenic acid, different chlorogenic acid mixture, flavonoids and linalools. Seven major healthy functions are as follows: antibacterial, antiviral, protecting the liver and gall, anti-tumor, lowering hyperlipidemia and blood sugar, anti-oxidation, improving the body’s immunity and slowing down aging.
(2) The role of new security of Chinese medicinal feed additives
The new secure feed additives produced from honeysuckle leaves, branches which are rich in amino acids, glucose and vitamins, trace elements. In addition to good nutrition ingredients, there are green antibiotics chlorogenic acid, luteolin glycosides, and other active ingredients, with antibacterial anti-inflammatory, anti-virus functions. To feed pigs, cattle, sheep, chickens, rabbits, fish and other animals with this kind of feed additives, it may prevent and cure diseases of them. This has a broad prospect.
8. Conditions, capacity and personnel of production
Our production targets are 20,000 square meters of production plants, 30,000 square meters of the treasury, three sets of large-scale production equipment, 20 sets of small production facilities and 120 workers. That is, to meet the final production target-an annual output of 100,000 tons of comprehensive honeysuckle product.
9. Product development direction and prospects
With the development of technology and the increase of income levels, we adopt nanometer-processing technology in the production of honeysuckle family health tea and the new secure feed additive to make sure the product ingredients which are fully absorbed and utilized.
We use honeysuckle and herbal extracts to develop natural health food products and cosmetic skin care products for different cultural practices at home and abroad, consumers of different ages as well as different educational level.
The company will maintain honeysuckle planting and processing technology, and preserve the leading share of the market. In the meantime, it will adopt the industrial and capital operation. Till 2014, it is determined to develop into the largest international and strongest domestic honeysuckle planting and comprehensive processing company.