ò??￠ About Perfuming Garden Juice Co. LTD.,(BPG):

1 ?￠ Founding and Partners

Perfuming Garden Company was founded and has been in the tropical juice industry since 1999 . Its factory began production in 2002. Company has two partners: Xin Huang and Guifu Man; The two has been working together starting from 1984, primarily in international commerce(credit information can be found in files kept by DengBaishi Company).

2 ?￠ Company Honors and Accomplishments

￡¨ 1 ￡? The company is the b iggest juice concentrate and puree processor in Southern China : According to 2004 statistics, company 's production of pineapple juice concentrate equalled 60.4% of the entire country ' s total production in pineapple juice concentrate; company's pineapple juice concentrate export equalled 75% of the country ' total exports.

￡¨ 2 ￡? The company is and remains the first and only profitable tropical juice company in China since

￡¨ 3 ￡? Perfuming Garden is one of 44 companies in China recognized by the Consent & Quarantine Association of China to be in compliance with FDA <<Fruit & Vegatable HACCP Regulations>>

￡¨ 4 ￡? Perfuming Garden was granted a loan of 100 Million Yuan for being included in the nation-wide Sparks Program .

￡¨ 5 ￡? The Company's income tax is exempted for being awarded the title of " Guangxi Province Leading Agricultural Enterprise " .

￡¨ 6 ￡? The Company is rewarded with federal interest-reduced loan for being selected as a " Province Leading Poverty-Assistance Company" .

￡¨ 7 ￡? The Company holds one N ational Certificated Patent , with two more patent submissions successfully pass ing verification stage.

￡¨ 8 ￡? The Company is a " Chinese Model Credit-Worthy Compan ies".

￡¨ 9 ￡? The Company is the o nly AAA Credit Rating Tropical Juice Concentrate Company in China .

￡¨ 10 ￡? Company products are widely r ecognized by world industry experts ; products are exported to U.S., Germany, France, Netherlands, Italy, Australia, New Zealand, Argentina, Greece, Brazil, the Middle East, Kazakhstan, Czech; its list of customers include Dole of America (Largest Pineapple Product Enterprise), Rudolph Inc. and Kohler of Germany, IFA Co. of Italy(Largest Juice Blending Company),Reminbek of Kazahstan ( 65%  of  its nation's entire beverage market), McCormick of England, Wringley of America,etc. 99% of the company products are exported. 

￡¨ 11 ￡? The Company holds intellectual property rights to the two of the first ever domestic-made fully automatically tropical juice concentrate processing line in China.

3 ?￠ Company Situation

￡¨ 1 ￡? Company f actory covers an area of 45 Mu, with 13000 square meters of facility buildings, and a cold storage room of 1200m . Factory is equipped with its own electric power generator group.

￡¨ 2 ￡? Company is equipped with t wo tropical juice concentrate processing line, each with hourly juice processing rate of 21 tons; both can process pineapple, leeches, pomegranate, mango, papaya, aloe, guava, strawberry, and banana juice.

￡¨ 3 ￡? Company is equipped with t hree puree processing line, with hourly processing capacity of 9 tons; they can process papaya, mango, strawberry, leeches, ginger, aloe, pineapple, and other puree .

￡¨ 4 ￡? Company owns Guangxi ' s biggest gallon steel drum factory, with yearly capacity to manufacture 100, 000 G allon Steel Drums .

￡¨ 5 ￡? Company owns a J uice and P uree M achinery factory.

￡¨ 6 ￡? Company is equipped with two modern PE bottle juice beverage filling production line, (one cold and one hot), the cold filling equipment can fill bottle size of 238ml ?￠ 380ml ?￠ 500ml ?￠ 1250ml.

￡¨ 7 ￡? Company o wns three plantation s totaling 2500 Mu.

￡¨ 8 ￡? Company has i n construction a new food processing factory with an area of 124 mu , aims to be finish in Feburary of 2006. The new factory will have 4 juice processing line, 5 puree processing line, 2 juice beverage production line and 1 fruit wine production line.

?t?￠ Perfuming Garden ' s advantages that will support further growth

Perfuming Garden Co. is a company with 21 years of international trading experience as representatives to various multinational companies. Company in 2000 made a strategic shift to concentrate on fruit/food business .

1 ?￠ Advantages coming from the Market : (1)Pineapple is the only juice in the juice category to have consistent and major suppl y shortages . The world market requires approximately 300,000 tons of pineapple juice each year, the world ' s production is less than 100,000 (8,000-9,000 coming from China). It is projected that the demand will not be met for the next 50 years, therefore price will remain steady, that is , it will remain two or three times the price of orange or apple juice. (2)Passion fruit juice, pomegranate juice are in high demand by the American and European markets, with price at as high as 4 to 8 times that of orange juice. (3) No anti-dumping laws , for two reasons. 1) European countries and most of the U.S. population are north of latitude 30, where tropical fruit cannot be grown. 2) T ropical fruits have many of the substances that are essential to human health which more and more of the population is lacking ; recent products like pomegrante, passion fruit, dragon fruit and mangosteen are all in shortage.

2 ?￠ Advantages coming from Geographic Location and Natural Resources

Perfuming Garden Co. is situated in the middle of Guangxi, Guangdong and Hainan. These three regions covers 4/5 of the entire country ' s tropical area, where most of tropical plantations are located, with 96% of the entire country ' s pineapple plantation. Also, the average income of the local is relatively low, especially in the Province of Guangxi.

With 200 acre s of red soil, an average annual rainfall exceeding 2000ml,and an average yearly income by farmer of less than 2000 Yuan, the provincial government of Guangxi will and must change its agricultural policy by converting 3,900,000 Mu of low yielding cane plantations to something that provides h igher yield per Mu . Pineapple plantation yields on average 3 times that of a cane plantation. The choice is clear: the switch to pineapple growing will allow government official to meet the task of increasing income by 200 Yuan and allow the local residents to achieve economic improvement. The region is ripe for substantial shift to massive pineapple growing.

It is this geographical location and resource advantages that will ensure the continuous expansion of Perfuming Garden Co. .

3 ?￠ Advantages from Management and Internal Synergy

Perfuming Garden Co. has two partners: Xin Huang and GuifuMan. The two have been partners ever since 1984, first as agents to various American, Korean, and Hongkong companies in international business; the two currently owns 11 other companies of different fields, each producing excellent results.

Xin Huang, B.A. in Literature, Masters in Law, Director of Guangxi IT Association, Director of Small-Mid Size Business Association.

The two shares the same value, this contributes greatly to the success of many of their business endeavors. They are well regarded within the juice industry as well as by the banking community.

4 ?￠ Advantages from Employees

Perfuming Garden Co. staffs are currently made up mostly of the following two groups: layoff workers and farmers. They have the the following characteristics:

￡¨ 1 ￡? Values the Job ￡¨ 2 ￡? Diligent and Eager to Stay Ahead ￡¨ 3 ￡? High Endurance for Tough Times ￡¨ 4 ￡? Rich Work Experience

Areas that Need Improvement: Poor in general education level and Individual Ability.

5 ?￠ Advantages from Expertises and Company Culture :

What are the unique characteristics of tropical fruits? This is a major question that the average consumers and most of the processors cannot seem to answer . Perhaps this is why most northern investors often fail when running their own tropical processing factor ies .

To be the first profit tropical juice concentrate processor of the country in 21 years, it fundamentally proves that Perfuming Garden management has attained a unique understanding to tropical juice.

There is a specific ?° recipt ?± for treating each fruits, categorized by fruit, variety and sometimes even harvest season. It is with these specific recipes that the company has been able to capture above-industry profits.

Perfuming Garden 's culture is one of continuously improvement. Company 's " New Product Development Department ?± and ?° Food Machinery Factory ?± operates independently of the company . They are able to improve factory equipment and techniques every year, saving the factory 3 Million Yuan worth of would-be expenses.

6 ?￠ Advantages from Having Intellectual Rights to Making Tropical Juice Processing Machineries

Perfuming Garden is currently the only company in the China ' s troipcal juice concentrate industry to have patents to its own equipments.

This processing juice concentrate line is also widely regarded to be the best in the country.

Perfuming Garden's subsidiary the Food Machinery Factory, with most of the personnel coming from Perfuming Garden's original machinery department, specializes in the research and development of new machineries, flowing processes. This makes Perfuming Garden the only tropical juice company to own a machinery factory.

7 ?￠ Advantages from Being In Alignment with Government's Policies to Subsidize the Agricultural Industry.

China is the most populous country in the world, with farmers making up 80% of the population. With an excess of people and a scarcity of land, the average farmer has in his possession 1/16 of the world's average. The problem of farmer discontentment has been a continuous problem stretching from the Chinese dynasties, generations and administrations. This is the undisputedly the biggest and mostly watched-over problem of the government. Chinese government understands that stability rests with the farmers; and the stability of the farmers rest with the development of the village economy; the development of the village economy must come from getting higher yields from the land, and high yield must be led by industrializing agriculture.

It is for this reason, that the Chinese government policy towards the farming community has shifted from one of non-existence to one of favoring with interest-reduced loans, funding and financing. Each year spending for agricultural subsidies reach hundreds' of billion of Yuan.

Perfuming Garden Co. is a leader in the industry of tropical juice processing, it leads all domestic competitors in amount of fruit processed per day and per year, thus offering tens of thousands of farming households a real possibility to economic betterment. The company receives strong support from a diverse range of institutions and organizations, such as advice and funding from various investment funds, no-interest and interest-reduced loans from banks, income tax ememption from taxing agency, and stable and low-cost utility usage.

Therefore, as the company continues to prosper and grow, its influences will increase, it will receive greater government support.

8 ?￠ Advantages from scalability, the Ability to Grow Quickly. The food industry is the largest industry in the world. No matter in world's top 500, top 100, top 50 or top 10, the food industry makes up 35-40% of the placements. The food industry not only provides good cash flow, high margin of profits, but requires little investment, and incurs relatively little expenditures(compared with mechanical products that require service stations.)

The core business Perfuming Garden Co. starts with fruit processing. Each part of fruits can be used in many ways, therefore the company can quickly expand into other related fields.

•  uice Beverage: Domestic Market - 40 Billion Yuan

The Chinese beverage market is still in its growth stage, with revenue recorded at 15.25 Billion Yuan in 2004. China's juice beverage processing industry is also at a exploratory growth stage. A critical weakness limiting the growth of the Chinese beverage market rest with China's lack of a juice blending industry.

Currently in most industrial countries, juice beverage is processed first by juice extracting factories, then juice blending factories, and then finally arriving in the juice beverage production factories. This kind of design is to allow consumers to enjoy beverages with a rich round of flavor.

Science tells us that a person taste buds lie in different parts of the tongue, each specifying in one type of favor. For long-term and complete satisfaction, all of a person's taste buds must be satisfied. When some taste buds do not taste anything for an extended period of time, it will send through the nerves in the brain unsatisfying signals. Therefore, without a good blender, the flavor coming from one type fruit will not be able to fully satisfying and therefore will not retain customers for the long run.

A typical juice beverage company in China normally has five year of good performances, the reason being the above. Perhaps most juice beverage experts has began to realize this. However, to act to correct this is full of obstacles, because most are unable to guarantee the purchase of various fruits, or fruits of different varieties, because only with different varieties and different fruits can the blended juice beverage be diverse in flavor.

Perfuming Garden has the unique advantage of possession a wide variety of fruits and juices. Currently the company has blended a small amount for juice beverage using various fruits. Initial marketing testing show good results, with highest demand coming from elementary to middle school children.

Perfuming Garden Co. has a great advantage expanding into the beverage drink industry, something that other companies cannot compete with fundamentally.

￡¨ 2 ￡? Fruit (Juice Water) Water Beverage

Involved in juice concentrating, Perfuming Garden currently has 400 tons of juice distilled water that are not being utilized. This is a valuable resources. Using distilled water from fruit juice as a type of beverage has the following advantages:

A ￡? Unique: All of the liquid comes straight from the fruit, this unique source creates a flavorable taste with nutrious mineral component.

B ￡? No Cost of Goods, price can be set at very low.

C ￡? Can be blended with other light tasting functional drinks, sporting drinks.

D ￡? Production sanitation standard can be easily controlled.

￡¨ 3 ￡? Fruit Stuffing : Domestic Market = 2 Billion Yuan

A large amount of fruit stuffings are used in China for mooncakes, crackers and breads. They are made mostly with winter melons. This, however is not in accordance with Chinese Food Regulations, which requires that 25% or more of stuffing be of fruit to be named ?°fruit sutffing?±. This policy is to compel producers to move to adding more fruit to the making of the stuffing, most producers at the moment use 10-20% fruit in the making of a fruit stuffing. However to extract fruit stuffing while keeping quality is difficult. Therefore, thousands of copmanies in this industry will be forced to exit the industry or purchase raw materials for fruit stuffing.

Because Perfuming Garden only processes juice, therefore most of the pulp from a fruit is thrown away. If able to utilize pulp for fruit stuffing, fruit jelly, initial project has revenue increase 50 Million, with 30 Million going to profits.

￡¨ 4 ￡? Fruit Wine, Fruit Vinegar:

Perfuming Garden produces annually 15,000 tons worth of fruit reminances and fruit skins. The sugar content (brix) of these 15000 tons is about 10%, according to the calculation that 8 brix can yield 1 brix of fruit wine and fruit vinegar, 7500 tons of each of 10 Brix fruit wine and fruit vinegar can be begotten annually. Setting the value of each ton at 5,000 Yuan each, this can yield an extra profit of 37.5 Million yuan.

￡¨ 5 ￡? Pineapple Fiber Processing

Perfuming Garden currently disposes 2,000 tons of pineapple fiber each year, yet this is something that China and the world lacks more and more at the moment.

According to studies, intestinal cancer has become the biggest killer in Beijing and Shanghai. This is due in a great part to the lack of fiber in people's daily diets. Government has officially announced that starting from 2008, fiber must be added to all flour. This gives fiber merchants great opportunities.

Pineapple fiber differs with most conventional fiber in that it contains Pineapple Enzyme (Bromeliano), which are one of the world's most unique resource. Recently scientists at Queensland Institute of Medical Research in Australia announce that they have found two molecules in pineapple enzyme that are effective anti-cancer agents, especially to breast, lung, colon, ovarian and melanoma cancer. These two agents may bring a new class of anti-cancer medicines.

This finding has certainly opened great commercial doors for pineapple fiber, even though its true worth remains difficult to value. If pineapple fiber can be made in pineapple pills and sold, its Return on Investment is projected to be around 1000%. Since May of 2005, Perfuming Garden Co. has been in active communication with China Agricultural Research Insitution, Sino-German Biological Institution; both parties understand that this is high-potential project; Perfuming Garden is the only company with the ability to provide such resources in great quantity, yet the critical issue at the moment is funding for such research and development.

Starting from June of 2006, company plans to gradually enter this field.

￡¨ 6 ￡? Cattle Farming

Perfuming Garden plans to raise 10,000 cattles, thus becoming the biggest cattle farm in the Province of Guangxi. An annual 15,000 tons pineapple remanents/skin will be sufficient to raise 10,000 cattles. This factor alone will save a cost for feeds worth 3 Million Yuan. The project expects to generate a revenue of 20 Million Yuan.

￡¨ 7 ￡? Plantations

Perfuming Garden currently needs 120,000 tons of raw fruits, yet it is only able to purchase up to 60,000 tons, or is 50% short.

Using the statistic that one Mu of land can yield 3 tons of fruit, 60,000 Tons would require a plantation of 20,000 Mu.

Assuming that 50% of fruits will be supplied to the fresh fruit market for higher profit, a planatation of 40,000 Mu is needed.

An investment of 60 Million is required for 40,000 Mu of fruit planation; annual return is expected at 12 Million Yuan.

Company Inefficiencies:

1 ?￠ The company remains unfamilar to the domestic retails market and has no domestic sales network. The company has always been in international trading and as international agent, it lacks both experience and human resources in the ability to establish such a domestic sales network. Therefore, to open the market, it must import or utilize established sales networks from companies in the country.

2 ?￠ Insufficient Capital for Expansion:

The entire line of production chain expansion requires a capital of at least 200 to 300 Million Yuan, or multiple times of Perfuming Garden's current asset value. To expand quickly, the company faces capital shortage.

3 ?￠ Lack of PR Abilities

Perfuming Garden employees are mostly laid-off workers, farmers. Although 35% are college graduates, they are mostly technical personnel, honest yet not always tactful, focusing on their own task, lacking the ability for public relationship. This is a great problem to open up the domestic market. To fully and fairly receive all approriate governement's favorable policies, employees must establish a good rapport with outside institutions. Yet Perfuming Garden realizes that the company lacks personnel of this kind.

èy?￠ Viability Report on Company Expandable Products

1 ?￠ Viability Report on Processing Juice/Functional Drinks (See Appendix 1)

2 ?￠ Viability Report on Producing Fruit Wine and Vinegar Using Fruit Skin, Reminance (See Appendix 2).

3 ?￠ Viability Report on Developing Pineapple, Passion fruit, Pomegranate Plantations (See Appendix 3).