One. Property development project by the Zhejiang Sanfan Industrial Co. Ltd.:
　　
　　1. A brief account of the Zhanjiang Sanfan Industrial Co. Ltd.:
　　
　　The company was set up in November 1992, with a registered capital of RMB45 million yuan. Its main undertakings include real estate development and domestic and foreign trade.
　　
　　2. The Sanfan Haijing Residential Estate to be developed:
　　
　　The residential estate, which is eventually to cover 60 mu (15 mu to a hectare) lies in the center of Zhanjiang City, in an area already serviced by a complete range of public utilities and roads, while close to the sea.
　　The first-phase implementation of the project calls for developing 6.3 mu of land, on which two eight-story residential buildings with a total of 72 apartments will be built. The second phase construction will involve development of 16.5 mu for 12 eight-story residential buildings with a total of 242 apartments.
　　
　　3. Market analysis:
　　
　　Apartments in the Sanfan Haijing Residential Estate will be priced at RMB1,800 yuan per square meter. Some 50 apartments have already been sold, including 17 bought by the Zhanjiang Economic and Technological Development Zone (ZETDZ) for its staff.
　　
　　4. Analysis of the project returns:
　　
　　Total capital investment is computed at RMB124 million yuan. For the first-phase construction it will be RMB11.67 million yuan. The 72 apartments will be sold at a total of RMB17.136 million yuan, leaving RMB3.973 million yuan in profits, suggesting that the rate of investment return will be 30.2%. Total capital investment is computed at RMB32.778 million yuan for the second-phase construction. The 242 apartments will be sold at a total of RMB63.861 million yuan, leaving RMB23.668 million yuan in profits, suggesting that the rate of investment return will be 72.3%.
　　
　　5. Plan for project financing:
　　
　　The project calls for an operational fund of RMB91 million yuan. The company plans to take 35% of the stake for a joint company to implement the project by contributing the land for construction, which is to be converted into RMB33 million yuan. The potential partner is expected to contribute RMB91 million in cash and take a 65% stake.
　　The ZETDZ lies in between Chikan and Xiashan, two urban districts of Zhanjiang City. With a land area of 9.2 square km, ZETDZ is divided into a 3.2-square-km industrial district, a 1.2-square-km administrative district and a 1.4-square-km commercial and housing district. Thanks to development over the past 17 years, the ZETDZ has inadvertently become the center of Zhanjiang and an economic center for the west part of Guangdong Province. One third of the zone‘s land space is yet to be developed for use by pollution-free industrial projects. This includes:
　　1. Land space already acquired by the zone;
　　2. Land space to be acquired by the zone;
　　3. Land space reserved for the zone‘s development.
　　The development zone prefers development of the land space by investor groups over large areas, and cooperation may assume the forms of long-term leasing and/or joint development. Prices can be negotiated, and are to be fixed on merit of each case -- the nature of the projects to be built on each piece and the size of the capital investment, etc. A range of policy privileges will be allowed to investor groups that go in for development over large areas.
　　The following pieces of land are offered for joint development:
　　1. 191.17 mu (127,400 sq. m) in the Pingle Industrial Park;
　　2. 587 mu (391,330 sq. m) in the Longchao North Industrial Park;
　　3. 605 mu (403,330 sq. m) in Leshan North Industrial Park.
　　Three. Projects for export-oriented processing and assembling and compensation trade projects
　　The ZETDZ lies just 3-4 km from the city‘s railway station, seaport and airport. A freeway linking Zhanjiang with Guangzhou, the provincial capital of Guangdong, is now under construction and is scheduled for completion in 2005. The Guangzhou-Zhanjiang Railway connects with the Beijing-Guangzhou Railway, the country‘s north-south transport artery, linking Zhanjiang with the neighboring provinces and regions of Yunnan, Guizhou, Sichuan, Guangxi and Hunan as well as with cities within the province. Zhanjiang, one of China‘s eight biggest ports, has 24 berths able to accommodate 10,000-dwt and bigger ships, including a 50,000-dwt petroleum berth. The city has 20 km of deep-water coastline, along which 300,000-dwt-class freight wharves and 500,000-ton-class petroleum wharves can be built. The Zhanjiang Airport is a 4D-class big airport where Boeing 757 passenger aircraft can take off and land round the clock. Existing regular flights link Zhanjiang with more than 20 cities in the country, including Hong Kong. The ZETDZ has well-functioning transport, telecom, power supply and water supply facilities. A full range of life facilities in the zone benefit businesses and residents there. These include hospitals, schools, shops, and cultural and sports centers. Banks, a customhouse and a commodity inspection agency in the zone offer services that are up to accepted international standards. Standard and conventional workshop buildings are available in the ZETDZ. In addition to all these, labor is in abundant supply and the cost of labor is limited in the ZETDZ.
　　The ZETDZ welcomes investment in export-oriented processing and assembling projects, projects for production with supplied materials and/or designs and projects for compensation trade. It doesn‘t mind the size of a project, but machinery, electronics, toy, food, garment and building materials projects are most preferred.
　　Four. Projects for high-yield, cost-efficient and high-tech farming
　　Zhanjiang is taking full advantage of its subtropical climate to develop high-yield, cost-efficient and high-tech farming. The city generated RMB17.65 billion yuan in value of agricultural output in 2001, 3.73 times the figure for 1978. It is the leading producer of grain, sugar, sugarcane, peanuts, vegetables, meats, aquatic products and seafood in Guangdong Province. Land and workshop buildings are reserved by the SETDZ for high-yield, cost-efficient and high-tech farming. Projects may assume any established form.