Investment invitation

  Baota Petrochemical company, settled in the beautiful lake city—Yinchuan, where the old Xixia kingdom located, has an old history, particular culture of old Xixia kingdom, simple customs and interests of Hui people , and abundant human culture and natural resource. It's a wonderful place for you to invest and achieve your business.

  Baota Petrochemical Company welcomes your coming! We'll establish a bridge of co-investment and cooperation to create your business with cordial service and sincere working state!

1、advantage of natural resource
Baota ecology industrial park, as an important part of Ningxia economic hard-core and focalization of energy resource, locates in Ciyaobao town, Lingwu city, Ningxia municipality.

①abundant coal resource

There is a proved-up reserve of coal more than 27 billion tons in Ning East coalfield, and a prospective exploitation up to 30 million tons per year in Lingwu mines. The type of coal includes non-felt coal and long-flame coal, which are excellent gasifying coal and motivity coal with a nature of extremely little ash and sulfur, low burning point, low metamorphose, high chemical activity, high heat energy , and easy gasification. At the same time, it has a simple geological condition, good exploitation condition, and low-cost mining. In addition, there is a large amount of coal resource beside our district, such as in Shanxi province, Gansu province and Neimenggu municipality, which can be regarded as a supplying area for the base construction

②abundant water and electricity resource

There is more than 2.5 million kilowatt of water energy reserve from Yellow River in this district. The project --Bronze Gorge irrigation hinge project, built for many years, has a capability of 0.306 million kilowatt. The project being built ---Shapotou irrigation hinge project, has a capability of 0.116 million kilowatt. And the project to be built ---the osier irrigation hinge project, will have a capability of 2 million kilowatt

③abundant natural gas resource

The closer natural gas field in Shanganning basin is an extremely large one in the world. At the end of 2000, the exploited plus controlled reserve reached to over 700 billion m 3 . Now, the producing ability of natural gas per year is 4 ~ 5 billion m 3 . by the end of 2003 as planned, the annual yield will have reached to about 10 billion m 3 . The gas field has possessed the dependable resource condition for the large-scale exploitation, and is expecting the main users of the downstream industry. The base is so close to the gas field with a pipe line of only 200 KM and a complanate route that the cost of transmitting pipe and transporting operation will be very low.

④excellent foreground of coal bed gas and oil gasresource

Some geologic information analysis shows that including in the circumjacent district there is a wide range of petrol, natural gas, coal bed gas, and terrestrial heat resource in Yinchuan basin. According to the primary analysis, it is estimated that there is 241.9 billion m 3 of coal bed gas at a depth of 1000 meters, and 400 billion m 3 at a depth of 2000 meters. In Erdorse basin, the total coal bed gas reaches to 800 billion m 3 at a depth of 1500 meters (Ningxia takes up 1/3). Currently, we have come to an agreement with China-United coal bed gas Ltd corporation and Weizhen corporation, US to exploit the coal bed gas resource in Hengshanbao district together. By 2005, we strive to achieve a proved-up reserve of 20 billion m 3 and exploitation resource will reach to 0.8 billion m 3 . However, Ningxia has a large potential of oil and gas exploitation. Now, 4 companies ---Changqing, Zhongyuan, Jianghan, Tuha are working hard to exploit. As long as they get some substantial breakthrough, it will have great effect on the construction of Baota ecology industrial park.

2、advantage of construction condition

①Close to the mainstream of Yellow River, Convenient to get water

The mainstream of Yellow River spreads for 397 km in Ningxia municipality and the passing through runoff is about 32.5 billion m 3 on average every year. The guideline of Yellow River water usage distributed to Ningxia municipality by our country is 4 billion m 3 per year. For many years, the most water usage a month from Yellow river is 3.2 billion m 3 . Nowadays, Ningxia municipality is making great use of water-saving irrigation and the water saving rate will reach to 40 ％ so that the total water usage will decreased greatly. The total water usage of all the industrial projects programmed in the heavy and chemical base of Ningxia Yanhuang district is just 0.3 billion m 3 every year so that the industrial water can be supplied from Duck reservior near Yellow River with the annual water usage unchanged.

②good condition of construction place

There are lots of joint patch in the district of project area. The construction place doesn't take up the infield and farmland. The low cost of earth purchase and the flat terrain will be very propitious to reduce the invest of the project item and the related facility construction

③convenient transportation

To connect with the project area as follows: the built and operating Da(Ba)—Gu(yaozi) local railway by-line(70 km long) is connected with the Bao-Lan by-line. The destination of Guyaozi railway lies on the south of Baota ecology industrial park and connects the Lingwu coal mine with Bao-Lan railway. The Liyang road of provincial highway and 307 nation-way pass through the park and the Yin(chuan)—Qing(dao) highway is just 3 km away from the industrial park. The roads being built include the Shizhong, the Zhonghao, and the Guwang highways. Eventually, a high- class cross highway net will be formed in a short term in the project district. The external traffic includes the Hedong airport, the Yin-Gu highway, the Bao-Lan railway, the Zhong-Bao railway, and the road-line from Yinchuan to Peking, Lanzhou, Xi'an, Wuhan and so on. The programmed railway Zhong(wei)—Tai(yuan) railway connects with Shi-Tai railway in the east and links with Gan—Wu railway and Lan—Xin railway in the west, which provides a east-west route way for Ningxia's external transportation.

3、advantage of location

①Ningxia locates in the eastern skirt of western district of china, which is the passage to the northwest from north china district. It's also the nearest province away from the north china district during the northwestern provinces, which is only 1000 km away from Peking city. So, the industrial park construction has an obvious advantage of location.

②During the general program “electricity from west transmits to the east” implemented by our country, Ningxia is the first pass-through province in the program. The short distance and low costs of electricity transport can reduce the loss in the line and increase the transport quality. Especially, the osier irrigation hinge project will become a large-scale electricity source point which transports cheap electricity to the north china district with nearest distance. 。

4、advantage of energy and chemical industry

① Assurance in energy supply

According to tens of years of construction, the coal, electricity power, and chemical industry of Ningxia province has built a good basis. Now the designed producing capability of coal in the whole district is about 18 million tons per year. The electricity power in the whole district is 2.278 million kilowatt, which includes 306000 kilowatt of water power electricity and 1972000 kilowatt of fire power electricity.

②good chemical basis

The petrochemical industry in the municipality has formed some scale. A set of large-scale chemical industry has been built in the past years, such as Ningxia chemical factory and its second equipment, Ningxia refinery, Yinchuan fertilizer factory, and Yinchuan rubber factory and so on. The annual ammonia-compound producing ability has reached to 920000 tons, which has become one of the most fertilizer producing bases. According to many years' practice, Ningxia has accumulated lots of experience on the field of coal, electricity power, and petrochemical industry, and educated lots of technical and managing persons, which can provide dependable people assurance for the Baota ecology industrial park

5、good advantage of enterprise basis

According to tens of years of construction ， Ningxia Baota Petrochemical group has developed as the biggest non-governmental Petrochemical group, which has combined refinery, chemicals producing, storing, production selling, and scientific teaching as a whole. Since the Ningxia Baota Petrochemical group was established, it has constructed and reformed in accordance with the standard of petrochemical industry from Sino- Petrochemical and Sino-Petrol Group. In addition to complying with the standard of security technology required by our country, they have formed a completed and modernized managing system in quality check, environmental control, business management and employee staff construction. In particular, the non-governmental and modern enterprise system combines with the Petrochemical group so well that it will fill more energy to the enterprise for its second leap.

6、little investment and cost

Favorable policy of income tax for foreign invested enterprises（in reference to “some policy on investment invitation of Ningxia Hui race municipality issued by the municipality dovernment” the 61 st document, issued by Ningxia,2004

1、 3% local income tax free for the foreign invested enterprises coming to Ningxia.

2、reduce to 24% enterprise income tax for the producing foreign invested enterprises established in the district of Yinchuan city

3、for the program that the investment is over ＄30000000 and has a long term of return beneficial, for the program that is specialized in energy and traffic construction basis, for the technology-intensive and knowledge-intensive program, reduce to 15% enterprise income tax approved by the national tax bureau .

4、reduce to 15% enterprise income tax before the year 2010 for the foreign invested enterprises encouraged by the nation and settled by Ningxia province.

5、for the producing foreign invested enterprises that the investment is over ＄30000000, in addition to free income tax for 2 years and half for 3 years, all the income tax(remained by local) will support the enterprise during 3 years by the same level finance expense.

6、for the producing foreign invested enterprises that the business term is over 10 years, free income tax in the first beneficial year and the second year, half from the third year to the fifth year . For the advanced enterprises certificated by the business and technical departments of the municipality, and still to be advanced after the free-tax and reduced-tax term, to prolong for 3 years to reduce a half of the remained part by local from the income tax at a ruled tax rate

7、for foreign invested enterprises which produce with the source listed in the book “category of resource integrated usage(revised in 2003)”, as a producing enterprise, after free of income tax for 2 years and half for 3 years, for the remained part by the local, returning to them for 2 years as a care.

8、to encourage the foreign invested enterprises in china to reinvest in Ningxia province, for the investment more than 25% during the total registered capital (the practical investment more than 2 million RMB), enjoying all the favor as a foreign invested enterprise

9、free income tax for the profit foreign investors acquire from foreign invested enterprises. If the foreign investors of foreign invested enterprises put the profits acquired from the enterprise directly to the company to increase the registered capital, or as the capital to establish other foreign invested enterprises, and the business term is no less than 5 years, after applied by the investor and approved by the tax authority, returning 40% of the income tax they paid as a reinvested part. If the reinvestment is less than 5 years, the returned tax shall be paid again.