Significant Items and Requirements for Feasibility Study

Report of Projects Investing Overseas

1. Survey

1) Name and legal address of enterprises to be set up, names, registration countries (regions), legal addresses, names, posts and nationality of legal representatives of parties to the enterprises.

2) Total investment, registered capital and investment percentage of parties, capital stock amount and amount of self-possesses funds of Chinese party, form of investment, composition and source of funds.  

3) Term of cooperation, how to distribute profit among parties and how to undertake responsibility should losses occur. 

4) Brief description, conclusion, problems and proposal of feasibility study.

2. Product plan and information on market, including sales forecast, where to sell products, competitiveness of products (if products are to be sold domestically after export, analysis of domestic market should be included), product plan, development scale and development orientation. 

3. Information about resources, raw materials, energy and transportation. 

4. Conditions for building plants and site selection plan. 

5. How to choose technical equipment and technological progress and the basis for the choice, including technology source, production method, significant technologies and comparison of equipment model selection plans, sources of technology and equipment to be imported.  

6. Production organization structure and the way to operate and produce. 

7. Development method and progress and the basis. 

8. Estimate of investment and how to raise funds, including total amount of funds (including investment in fixed assets, circulating funds and interests incurred during construction period), source of funds and the way to raise, repaying capability, way and guarantor.

9. Economic analysis and investment environment evaluation, including financial analysis, national economic analysis, uncertainty analysis and evaluation of political and law environment. Benefit analysis and analysis on revenue and expenditure should be conducted by mainly basing on dynamic method and sensitivity analysis method.  

10. Significant attachments: 

1) Review opinions from foreign exchange control departments on risk of foreign exchange to be invested and on the source of foreign exchange; 

2) Significant laws and regulations of the investee country concerning investment. 

3) Opinions of concerned departments at home for the arrangement of funds (approval documents by financial administrative departments should be attached for projects using government-allocated funds).

4) Undertaking documents of relevant banking institutions for loaning overseas.