1. Executive Outline

1.1 Statement of Purpose
This program describes extensively the project of producing 200’000 T/year of TCF bleached pulp and paper, which will be produced from whole hemp stalks as raw material. It may absorb 2.0 billion yuan RMB (total investment: 2.5 billion yuan RMB). The project will be operated by using the form of a Limited Company, ensuring the profits of its shareholders. The traditional bleaching methods of wood pulp have 3-8 stages, in which the pulp is bleached by chlorine. The bleached spent liquors and paper are among the most toxic matters and contain dioxins. The TCF bleaching, on the contrary, contains no dioxins. But it is too difficult to popularize by using wood as raw material for pulping, because its bleaching cost is high and the production processes are complicated. Our patent technology requires only 2 stages of bleaching. The brightness of the pulp may reach over 65%, and the bleached spent liquors and the paper contains no dioxins. The "green" paper products are widely used in many fields such as: medicine, foodstuff, printing and writing. The sponsoring body of this project is a director member of World Hemp Center, Shenyang City Building, Tongxin Intelligent Engineering Co. Ltd. They have carried out the hemp growth and research work for downstream processing of hemp, owned to the nation’s patent technology.

1.2 Description of the Main Projects
The project is to make bleached pulp and paper free of chlorine. The pulp bleaching is finished by a bleaching agent without chlorine. It is bleached by using H2O2, which is activated by an activator. This way, the pollution problem of dioxins would basically be solved, while there are some activated action using activated agent TX in H2O2 bleaching processes, which may increase effectively the bleaching effects of the H2O2 bleaching stage. The experiments indicate that about 65% brightness may be achieved without adding any whitening agent. The brightness is above the level of similar products exported to Germany from our country in recent years.

1.3 Market Objectives
The TCF bleached pulp is to be exported to Japan, and paper and paperboard products are to be exported to Germany, Sweden, Austria, Netherlands and other European countries.

1.4 Market Potential
TCF bleached pulp and paper are "green" products which take into account protection of the environment, are they are greatly favored all over the world. At present, the annual output of TCF paper all over the world is only 5 million tons, and the market prospects are very good.

1.5 Finance Forecast

 Output value: 1.4 billion yuan RMB/year
 Tax: 140 million yuan RMB/year
 Profits: 405 million yuan RMB/year
 Investment recovery period: 5 years
 2.55 billion yuan : (4.049+1.4x75%)= 5 years

1.6 Declaration of Financing Requirements
The amounts of financing required is 2.0 billion yuan RMB.

1.7 Statement of Secrecy
This business plan is confidential, its contents and information may be used only by the investors who have signed the investment intention letter.