June 2009

Executive Summary
Project
The venture we present to you entails an investment in a Microbiological
Fertilizer factory with an annual production capacity of 300,000 metric
tons, and the sales and marketing of microbial products for the
agricultural industry in China.

Introduction
Agricultural is a very important industry in many countries including China,
warranting an increased development in this sector. Clearly, to increase
crop yield, soil fertility is the main factor.

In China, the quality of the soil has deteriorated rapidly over the years
because of continuous use of chemical fertilizers and pesticides. Farmers
commonly overdose the soil with chemical fertilizers, causing an
accumulation of heavy metal residues, and acidity in the soil, the soil then
coagulates causing reduced plant absorption of nutrients.

To make matters worse, farmers use Chemical Pesticides to reduce pest

populations, which is the most harmful agent in farming practices to date.

We recognize the importance of addressing these issues, and have since

been involved in exploring the uses of microbiological products in
agriculture. Our range of microbiological products for use in agriculture is
the achievement by a panel of microbiological experts from Taiwan
through many years of research and development.

Crops fertilized with microbiological organic fertilizers could maximize the

absorption of nutrient elements from soil, minimize the loss of nitrogen,
phosphorous and potassium, and are free of heavy metal residue,
endocrine disrupting and volatile organic compounds. These crops are
more resistant and less perishable.

Microbiological products are 100% natural, non-toxic, no side-effects, safe,

environmental friendly and effective. These are the future promising
products for the agricultural industry and are the highest value added.
Microbiological products will one day make chemical ones obsolete.

The Market and Competition

After an in-depth study on suitable locations, we opted for a very rich
agricultural province in China as our investment location. This is mainly
because it is rich in cultivated land area (approximately 9.8 million
hectares in total) and our strong interpersonal relationship with the
local government and citizens.

There are no direct competitors at our chosen location, while most others
far away are producing chemical fertilizers and pesticides, which are high
in price and carry a negative impact for soil and crops. Our products and
price points are strong and favorable. This is quite advantageous for us
and will enable us to establish a premier brand of agricultural
microbiological products in the area.

Prime Energy Company 1

6B Hoover Industrial Building, 26-38 Kwai Cheong Rd, Kwai Chung, N.T. Hong Kong
Office: (+852) 2619 1977 Email: wt@pecfund.com
 June 2009

Financials
The total funding required is US$32 million:
1. Facilities (incl. 200,000 sq. meter prime land): US$15 million.
2. Operating Expenses for 1-2 years: US$17 million.

With an estimated steady income of US$150 million in five years. The

company will be profitable in year three, and forecasts $22 million in net
profits in the third year, $53 million in the fourth year and $71 million in
the fifth year. The profit margin can reach up to 77% from sales.

This is an exciting business that combines microbiological technology for

an unlimited market need. The Chinese Provincial government is very
supportive and will offer great incentives and polices for this project.

Management Team

Founding members
Ms. Fanny Cheung, Director, Hong Ling Enterprises Limited
Fanny has over 30 years of professional experience in different business
functions including Accounting, Administration, Finance, Logistics,
Management, Operations, Sales and Marketing with Sino owned
Enterprises operating in China, PRC headquartered in Hong Kong. She
also plays a key role in forming strategic issues and public relations in PRC,
China. As an accountant at the age of 27, she revolutionized the cost,
management, procurement and finance control of a 2000-staffed factory,
leading it to success from failure. She was promoted to GM of the same
factory a year later. Thereafter, she worked for a Taiwan Listed Company,
in the Hong Kong branch office, managing finance & accounting, where
her unique style enabled the company to operate smoothly. She learned
and manifested good “investment” and “trading” practices while working
with a Taiwan Trading Group, where she assisted the General Manager to
develop China investment and trading businesses.

Personal Life: Fanny was born into an academic family, her father was a
famous scholar in China. Their family went through and survived the
Cultural Revolution in China in the 60’s & 70’s and during that time they
established strong ties with the government. Most of her father’s students
then became influential figures in the government, because of her unique
family background Fanny has a strong interpersonal relationship with the
government and local people there.

Mr. Wye Tak Wong, Director, Hong Ling Enterprises Limited

With a Master’s degree in Enterprise Information Technology from King’s
College, London, Wye Tak started his career in the Jardines group. His
entrepreneurial journey started with JW Business Corporation Limited in
early 2000 which focused on technology and consultancy services for
accounting, law, finance, energy and entertainment companies. Besides
handling information systems, communication and administration, he will
also play an active role in planning future strategic initiatives.

Prime Energy Company 2

6B Hoover Industrial Building, 26-38 Kwai Cheong Rd, Kwai Chung, N.T. Hong Kong
Office: (+852) 2619 1977 Email: wt@pecfund.com
 June 2009

Microbiology Research Consultants

Mr. Lee Y.D, Agriculture Microbiology Specialist, Taiwan Microbiology
Company
Mr. Lee’s research group has deep experience in Microbiological
technologies R&D. His strong association with us go back a long way and
he will provide advisory and training of the microbiological technology and
will provide the highest quality fermentation agent (addictives) for our use.

Dr. Yao
Dr. Yao is a representative of one of China’s Biotechnology research and
development organization. Dr. Yao and his team will be responsible for
the design and implementation of the fertilizer production line and the
supply of the facilities.

Advisory board members

Mr. Zhang H.D
Mr. Zhang is one of China’s prefecture Tobacco Department Head. His
strong connections and clout in the government and local business
community coupled with strong local networks enables him to handle any
issues emanating from government or businesses.

Mr. Yang D.S

Mr. Yang, is a university graduate, has family businesses in China
operating in numerous crops/plantations eg. Star Anise, Chilli,
Nonoginseng, etc. and chemical fertilizers. His family background enables
Mr. Yang to know first-hand developments and information in the Chinese
province and he will assist us in the market and policy formation of the
company.

Associate
Mr. Sushant Sharma
Sushant is a full-time MBA student at University of Hong Kong and London
Business School with major in Finance, Strategy and Entrepreneurship. He
has strong experience in software development and deployment. He will
work in implementation of Information Systems and will play an active
role in business development.

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Prime Energy Company 3

6B Hoover Industrial Building, 26-38 Kwai Cheong Rd, Kwai Chung, N.T. Hong Kong
Office: (+852) 2619 1977 Email: wt@pecfund.com