• 　Introduction

Luoyang Chundu Pharmaceutics Ltd. Company (LCPC) is one of the new high-technical enterprises of Henan Province, China. The total asset of LCPC is 28.81 million Yuan RMB. The main professional work is to produce tablets, hard gelatin capsule, granulate, powders, and the raw material drugs of pepsin, coenzyme Q10 and gastric mycosis. Having the approved codes of 35 drugs and the property right of 17 trademarks, LCPC was qualified for the import-export business in November 2001.
The today's main products of the company include banlangen Tablets, Yu Jin Fang Capsule and Glipizide Tablets. The products in the declaration include the tablets, capsule and granulate of Phenoxymethylpenicillin Potassium, 24-hour-slow-released Nimodipine Tablets. As the new 4th-kind drug and the protected TCD variety of the state, banlangen Tablets is made from the high-quality tetraploid raw materials of Radix banlangen of the Second Military Medical University PLA. It functions to clear away the heat and the toxic materials, remove the pathogenic heat from the blood, benefit the pharynx and larynx, eliminate swellings, etc and used for tonsillitis, parotids, swellings and pains of throat and for preventing and treating infective hepatitis, poliomyelitis and so on. As the state-protected TCD variety, Yu Jin Fang Capsule is a good drug that can be used to stay aging as well as to prevent and treat angiocardiopathy and cerebrovascular disease. As the second-generation sulphonamide (sulfa-drug) drug reducing blood sugar, Nimodipine Tablets, whose main indication is to treat non-insulin-dependent (type-II) diabetes, has a great market capacity. As the key-problems-tackling project of the 8th five-year plan of the country, 24-hour-slow-released Nimodipine Tablets is the 4th-kind new drug of the state developed by our company and the Chinese Pharmacological University and has reached the international advanced level.

• 　Cooperation of the project

LCPC was set up in 1971. The present workshops, equipments and hardware establishments can not be seasoned to the requirements of 《Good Manufacturing Practice》. As the country is speeding up the GMP implementation course, all pharmaceutical enterprises are required to finish the declaration by the end of December 2003. Therefore, the construction of this project is extremely urgent.
Therefore, our company plans to set up a new factory section that accords with the GMP requirements and to radically change the existing production conditions of the company.

• 　Market forecast

The finish and start-up of this project will enable LCPC to start the mass production of Yu Jin Fang Capsule, banlangen Tablets, Glipizide Tablets and 24-hour-slow-released Nimodipine Tablets, all of which are seized by LCPC. As the market is gradually opening up, all of these drugs will become the products with the market competitive strength and bring a better economic efficiency to the company.

• 　Financial Analysis of Project

After the finish of this project, the annual throughput of the company will reach: 500 million tablets, 280 million capsule and 120 tons of granulate; the annual sales revenue and the annual profit tax will reach 151.18 million Yuan RMB and 25.11 million Yuan RMB, respectively.
The results of the financial calculation and the economic analysis showed that the investment of the project has a good economic efficiency and a strong ability to resist the market risks, which is reflected by the economic indices, such as the annual selling profits, tax on sales, profit rate and recovery period of the investment, etc.

• 　Project Progress Situation

Huamei Bioscientifc-Technical Park has requisitioned a land of 4.448 ha in Binhe Road of Luoyang New High-Technical Industrial Development Zone. The primary project includes a workshop construction area of 8240 M2 with a total investment of 28.77 million yuan RMB, including an investment of 25.02 million yuan RMB in the fixed assets and a working capital of 3.75 million Yuan RMB. All work-start procedures were finished before 15 December 2003, the working drawing design was finished by the Medical Design Institute of Henan Province in January 2004. We try to start the building project in February 2004 with a three-month term of works, to make the experimental production in June 2004 and to apply for the GMP attestation on 10 June 2004.
At the present, the selection of the project address and the declaration of the master plan were finished, and the cultural relics reconnaissance is about to be carried through. The main existing difficulty is the financial difficulty, so a foreign capital of 10000000 Yuan RMB must be imported.