Invitation Brochure for Investment
Of Benxi Beitai Ductile Cast Iron Pipes Co., Ltd

In order to expedite the developing speed and bring mutual profit, Benxi Beitai Ductile Cast Iron Pipes Co., Ltd (hereafter called Beitai) sincerely invite national or oversea partners to public our stock in domestic or international market together.
Ⅰ. Brief Introduction to Beitai
Beitai was founded on May 1990 covering about 20ha. On Oct 1994, Beitai was put into production formally and reformed as a limited-liability company on Dec.29th, 2000. We have about 1400 employees with around RMB375, 650,000.00 of registered capital. The total capital stock is about RMB 375,654,500.00, which Beitai Iron & steel Group (hereafter called Beitai Group) takes 32.42%; China Construction Bank takes 29.07%; China Eastern Asset Management Company takes 23.96%; other stockholders take 14.55%. Until the end of 2005, total asset capital is about RMB 1,540,000,000.00; net capital is about RMB 580,000,000.00; asset and liabilities ratio is 62.2%.
With best equipments, largest scale and complete products’ diameters, Beitai become one of largest Ductile Cast Iron Pipes manufactures in China. Now Beitai is the fourth among world and second among China with 500000ton annual capability. We imported advanced casting machines, annealing furnaces, finishing lines and cement lining machines from Germany and America. Products range from DN80mm to DN2600mm. Our products are complied with ISO2531, ISO4179, and ISO8179 etc international standards strictly and passed ISO9001 quality system certification and SGS, BV Product certification.
With good quality and credit, Beitai’s products are famous among the world and sold to more than 30 provinces in China and exported to USA, UK, Russia, Egypt, Spain, Saudi Arab, Jordan, Iraq, Philippine, Vietnam, India and Peru etc 37 countries and area.?
Till 2010, basing on 500000ton annual capacity of our local factory, we plan to construct three semi-manufactured goods manufacturing bases at abroad and out of the town. At the same time, we desire to establish a manufacturing base with 300000ton annual capacity in coastland district of China through reform or joint venture form. So the total annual production capacity would reach 800000ton and keep first 2 places in China. We will focus on producing DI pipes range from DN80mm to DN2600mm for carrying water, oil and gas.
Ⅱ. Beitai’s Proposal for public our stock
Beitai plan to public our stock through domestic A stock or abroad market. According to the requirement of New Public Stock Manage Method, the company has the qualification to public their stock only if its latest three accounting years’ net profit is positive and total net profit are more than RMB30, 000,000.00 (net profit are calculated according to the value minus seldom profit & loss whichever is lower). Beitai already achieved continuous two years’ profit during 2004 and 2005. Only if increasing profit in next year, Beitai can meet the requirement of public stock. After calculating, Beitai can gain RMB about 103,290,000.00 of pre-tax profit, around RMB 69,200,000.00 of net profit and 12% of net asset yield if annual production capacity reaches 450000ton. Then Beitai are probably qualified to become a stock company in 2009 and can collect capital about RMB 600,000,000.00.
Ⅲ. Beitai’s advantages
ⅰ. Policy Advantage
Beitai’s DI pipe project used to be ranked as National “Eight-Five” Important Projects and got the attention of government officers. At present, central government are practicing to re-constructing Eastern-Southern old industry base; Liaoning provincial government expedite Economy Revolution; Benxi City Government give energetic support to Beitai; Liaoning Province will develop as a Center of Equipment & Manufacture and liabilities can be transformed as stock. All above policies are benefit for Beitai and also provide a good chance for investors from inland and abroad.
ⅱ. Trade Advantage
At present, the world annual demand for DI pipes is about 12000000ton. The world annual capacity for DI pipes is about 9000000ton. Japan, USA and China take the first places. However, Japan and USA’s production capacity is decreasing gradually due to limitation of resources, environment protection and cost of labor force. Comparing with them, we have the advantage of technique and labor force cost. Our international competition ability is increasing. China annual production capacity is about 2000000ton. Export quantity take 40% of total production capacity. According to conservative statistic, China’s DI pipe demand will increase and also for international market.
ⅲ. Products Advantage
As a new type of high quality product, DI pipe is famous for thin wall thickness, better tenacity, higher intensity, anti-corrosion and easy installation etc. It has both iron and steel capability. With advanced mechanical properties, DI pipes are used for carrying water and gas etc widely and already replace Gray Iron pipe.
ⅳ. Market Advantage
Beitai is No. two in China and No. four among the world. Beitai’s pipes are sold to more than 30 provinces in China and exported to USA, UK, Russia, Egypt, Spain, Saudi Arab, Jordan, Iraq, Philippine, Vietnam, India and Peru etc 37 countries and area.?
ⅴ. Technique and Engineer Advantage
Beitai possess of strong production, technique and management employees. We are not only have a very complete technique system for producing DI pipe and also develop new types of products by ourselves such as Restraint joint pipe, Ceramic Epoxy coating pipe etc.
ⅵ Good Asset and Liabilities structure
Usually stock company is qualified that his Asset and Liabilities ratio is no more than 70%. Beitai’s Asset and Liabilities ratio was 62.2% in 2005 so Beitai is qualified.
Ⅳ Cooperation Mode
In order to standardize development of Beitai, make all partners’ advantages yield well, public our stock sooner and bring mutual benefits to all partners, the partner can cooperate with Beitai as following mode:
ⅰ. Invest capital to be a stockholder
Partner can invest capital, which the invested capital should more than USD 50,000,000.00 to Beitai directly so that he can be one of stockholders of Beitai. According to RMB 580,000,000.00 net asset at the end of 2005, stockholders’ equity as following:

If the Partner wants to be a holding Stockholder, he can not only invest the capital but also purchase other stockholders’ stock.
ⅱ Strategy Investment
Partner can enter Beitai as a Strategy Investor and exit through Asset Market after Beitai become a stock company.
Ⅴ. Guarantee Term
In order to protect partner’s benefit, Beitai promises to take all the risk and provide risk guarantee terms to partner. Details as following:
At the first three cooperate managing years, Beitai Group promises to give 8% income rate to partner. If the income rate does not reach 8%, Beitai guarantee to fill this lack to the partner; if the income rate is more than 8%, Beitai will share the profit according to actual profit rate. After three years, if the partner wants to continue cooperating with Beitai, both parties should bear the risk equally; if the partner wants to stop the cooperation, Beitai Group promise purchase the stock back with the same price that the partner bought from Betiai.

Joint funding and cooperation of Benxi Beifang Heavy Vehicles Co., Ltd.

In order to fully make full use of policy advantages regarding revitalizing the old industrial bases in China, to carry out the guideline of document of the policy proposal about deepening state-owned enterprises by Liaoning People’s Government( No.15 document of Liaozhengfa [2005],i.e.,No.15 document issued by Liaoning provincial government ), i.e., to encourage foreign investors to involve in restructuring and revamping of state-owned enterprises in form of merging and equity participation; foreign investors can merge and invest equity in state-owned enterprises; to encourage foreign large and medium-sized state-owned enterprises to attract domestic strategic investors and realize investment diversification; except large-scale coal enterprises, for state-owned enterprises of other industries and circles, the restriction on equity proportion should be cancelled. Benxi Beifang Heavy Vehicles Co., Ltd (hereinafter short for Beizhong Company) sincerely invites foreign and domestic big investment institutions, strategic investors, transnational companies, foreign and domestic large-scale enterprises for cooperation and investment in light of principle of seeking for development, not for existence. The project aims to take the fast development opportunity of domestic iron & steel enterprises, fully bring Beizhong’s advantage into full play and bring benefits for cooperation partners.
1. Beizhong Company Information
Beizhong Company grows out of Benxi Heavy Truck Factory, which was established in 1950, one of heavy truck factories with best basis. At present, the Company has a total registered capital of RMB 0.2 billion yuan, and is a subsidiary of Beitai Iron & Steel (Group) Co., Ltd. The Company is located in Xihu District, Benxi City, Liaoning Province. With a total number of 1500 employees, the Company covers an area of 352 thousand m2 with building area of 110 thousand m2. At present, the Company boasts a total assets of RMB 0.706 billion yuan, net assets of RMB 0.301 billion yuan and fixed assets of RMB 0.254 billion yuan. Heavy mining trucks are Beizhong Company’s dominant products, which are introduced from American Komatsu company in the form of licensing manufacture. On this basis, in view of the market demand, the company developed new-type trucks of medium and small tonnage. The company now can annually manufacture 100 heavy trucks and 1000 small-type loaders. Meanwhile, the Company can also manufacture pressure vessel, paper making machinery, automobile fittings. In addition, the company can also manufacture complete equipment and spare parts for metallurgical, mining, water conservancy, geological, chemical industries and etc.
2. Beizhong’s development goal
By 2010, the company will have an annual production capacity of 300 mining trucks. The value of metallurgical spare parts will reach RMB 0.3 billion yuan.
3. Company advantage
(1) Policy Advantage
The strategic decision for revitalizing the old industrial base in China by the Central government as well as measures taken by C.P.C. Liaoning committee and Liaoning provincial government for expediting the economic reform of Liaoning state-owned enterprises, provide loose policy environment, and hard-won opportunity for cooperation between foreign & domestic investors and Beigang Group Company. Meanwhile, Benxi municipal government shows great support to Beizhong Company, which plays positive role for the company’s construction and development.
(2) Market advantage
Beizhong’s annual productivity of mining trucks now reaches 100, which is in front 3 ranks among Chinese circles. The product of Beizhong Company has higher occupation rate on the market. With the construction of Chinese infrastructure and enhancement of large-scale resources development, the demand on mining trucks is on the rise yearly. Therefore, the company has huge development potential.
(3) Personnel and technological advantage
Beizhong Company has powerful personnel team on production, technology and management. In the process of research and development of heavy mining trucks, the company collaborated with Dalian University Of Technology, Northeastern University, Jilin Industrial University and other relevant scientific research institutions. The company accumulated rich experience in design and manufacture of important parts of heavy mining trucks as well as parts with complex technology.
4. Cooperation mode
(1) Cooperation partners can become Beizhong’s shareholders in the form of brand, technology and etc. and cooperate with Beizhong Company to develop new technologies and new truck types. According to regulations of No. 15 document of Liaoning provincial government, the proportion of invisible asset, such as technologies, can reach 70% to the maximum.
(2) Cooperation partners can become Beizhong Company’s shareholders through direct investment.
(3) Cooperation partners can become Beizhong Company’s shareholders through purchasing Beizhong Group Company’s stock shares.

Joint funding and cooperation of Benxi Dongzhan Window Products Co., Ltd.

In order to fully make full use of policy advantages regarding revitalizing the old industrial bases in China, to carry out the guideline of document of the policy proposal about deepening state-owned enterprises by Liaoning People’s Government( No.15 document of Liaozhengfa [2005],i.e., No.15 document issued by Liaoning provincial government), i.e., to encourage foreign investors to involve in restructuring and revamping of state-owned enterprises in form of merging and equity participation; to realize investment diversification; Benxi Dongzhan Window Products Co., Ltd. (hereinafter short for Dongzhan Window Company) sincerely invites foreign and domestic big investment institutions, strategic investors, transnational companies, foreign and domestic large-scale enterprises for cooperation and investment in light of principle of seeking for development, not for existence. The project aims to fully bring Beizhong’s advantage into full play and bring benefits for cooperation partners.
1、Brief introduction to Dongzhan Window Products Company
Benxi Dongzhan Window Products Co., Ltd. was established on November 3, 2003, situated in Benxi economic development zone. It occupies a total land area of 129 thousand square meters and its total staff members are 120. Its registered capital is 65 million RMB. The stock right structure is as follows: Chinese party: Beitai Iron & Steel Group 35.5 million RMB, 54.62% of the total registered capital; foreign party: Hongkong Dongzhan International Co., Ltd. 29.5 million RMB, 45.38% of the total registered capital.
At present, the company has total assets of 78.14 million RMB and net assets 62.07 million RMB.
Wooden &plastic door and window as well as aluminum-covered wooden door are of the characteristics of excellent temperature keeping, energy saving, sound isolation, burning prevention, anti-erosion, anti-aging, shock resistance, deforming resistance, good looking and elegance. At present, they are widely used in America and European countries. Comparatively, they are still in the early stage in China and China can only rely on expensive foreign imports. Dongzhan Window Products Company. Dongzhan Window Company adopts the word advanced production technotimberies and can annually produce 300 thousand square meters of wooden & plastic door and window as well as aluminum-covered wooden door, which greatly meet the domestic market demand.
2.development program
(1) While establishing highly automated base of green environment friendly wooden products, the company is striving to extend the products to timber, glass wall, and other products produced with high technotimberies. By 2007, it can yearly produce 600 thousand square meters of wood & plastic window, 25 thousand cubic meters of wood timbers, 50 thousand square meters of glass wall.
(2) Through new products development and all kinds of quality certification, the company is building up its brand and finally forms the brand series. By 2010, the company will develop into an influential wood products processing plant in China and annually produce 1.5 million square meters of wood products.
(3) The company will establish supermarkets of building materials with selection and realize chained business in Chinese key cities.
3. Company advantage
(1) policy advantage
Dongzhan Window Company is in conformity with relevant Chinese industrial policies and energy saving policies as well as the requirement for adjusting industrial structure in Benxi old industrial base.
(2) market advantage
Wood & plastic door and window is new building material in China. It combines the natural and beautiful features of wood window with air proof of plastic window. It boasts in-substitutable advantages by other materials and is the priority for producing high-grade window. It has unique advantage in huge building market. With the improvement of Chinese economic strength and people’s living standard, its market prospect is bright.
(3) advantage on raw materials
The main materials that Dongzhan Window Company needed for production are timber, plastic, glass, glue, paint, hardware and etc. The timber mainly composes of white pine, poplar, larch and some other hard mixed wood. Benxi has abundant timber resources and therefore has enough supply. High-grade timber can be imported and other raw material can be sufficiently supplied in Liaoning province.
(4) advantage on location
Dongzhan Window Company is located in eastern part of Benxi Economic Development Zone and neighbors Bihe Industrial Park with only one river separated. The factory site is near to 304 national expressway, shendan expressway, Shenyang railway line. Therefore, transportation is very convenient. Moreover, the infrastructure, including water supply, power supply, heat supply, telecommunication, road and etc., is nearly complete, which provides excellent external conditions for company’s development.
(5) technological advantage
Dongzhan Window Company boasts the production & process technologies of wooden & plastic window. As for wooden & plastic window, it has applied for China national patent protection, which is certified into one of the products by Chinese Well-off Living Project and listed into Products Guide of China National Well-off Model Living Project
4. Cooperation mode
(1) cooperation on capital level
①The cooperators can directly invest in Dongzhan Window Company and become the company’s shareholders through increasing investment and adding shares.
②The cooperator can become the company’s shareholders through purchasing Beigang and other shareholders’ shares;
③The cooperators can associate with Dongzhan Window Company to become a standardized stock limited company. They invest in the stock limited company and become the company’s shareholder.
(2) cooperation on the level of technological and product RD
The cooperator can invest in the form of brand and technology.
(3) cooperation on the level of production and business
The company can cooperate with powerful foreign companies, integrate resources, jointly produce and exploit market.