Business plan book

table of Contents
Product background
2. Basic product overview
2.1 Cordyceps Overview
2.2 Cordyceps militaris
2.3 Artificial cultivation of the components of Cordyceps militaris
3. Product competitive advantage
3.1 Pharmacodynamic ingredients
3.2 Factory production
3.3 Low cost and stable supply
3.4 Self-owned intellectual property protection
4. Investment environment background
4.1 Western Development Policy
4.2 Overview of Yunnan, China
4.3 Overview of Yunnan Investment Environment
5. Investment and plant planning
5.1 Basic stock composition basket
5.2 Staff of the Board of Supervisors
5.3 Management team
5.4 Construction scale and budget
5.5 Sales Channel
6. Estimated revenue
6.1 Business objectives
6.2 Operating income
6.3 Financial Estimate
7 Conclusion

1. Background Cordyceps sinensis is commonly known as Cordyceps sinensis. It is a valuable Chinese herbal medicine. According to the "Compendium of Materia Medica", "The Herbal Fresh", "The Compendium of Materia Medica", etc., Cordyceps sinensis has "preserving lung and kidney, secreting qi, stopping bleeding and removing phlegm. The effect of all kinds of imaginary damages, specializing in life-threatening. Cordyceps has been listed as the top nourishing drug for thousands of years, and has the reputation of “Oriental Legendary Treasures”. However, due to the extremely high requirements for the natural growth of Cordyceps in nature, its production is extremely low and the supply is scarce. Therefore, its price has always remained high, which limits its scope of application and promotion.
With the general improvement of the economic conditions of Chinese at home and abroad at the end of the last century, and the gradual upgrading of the quality of life, the development of the global “predatory” of natural Cordyceps, coupled with the increasing destruction of the natural ecological environment, led to the natural Cordyceps resources. Increasingly exhausted.
According to statistics from authoritative departments, the annual global production of natural Cordyceps is less than 10 tons, and it is still decreasing year by year. And the annual market demand is far greater than its output, the contradiction of demand makes the price of Cordyceps higher, and the counterfeit and shoddy goods in the circulation field flood the market. [The first paradigm § network to organize the article, the copyright belongs to the original author, the original source. 】

2. Basic product overview
2.1 Overview of Cordyceps:
At present, there are more than 350 species of Cordyceps that are found to belong to the genus Cordyceps, of which more than 60 species have been found in China, including Cordyceps sinensis, Cordyceps militaris, Cordyceps militaris, A. philoxeroides, and ancient Cordyceps, Coral Cordyceps, Sickle Cordyceps, Taishan Cordyceps, Shanxi Cordyceps, Liangshan Cordyceps, Xinjiang Cordyceps, Sweetrod Cordyceps, Scutellaria and so on.
Although there are many varieties found, there are not many varieties with medicinal value. The two representative varieties are Cordyceps militaris and Cordyceps sinensis.
Sacc.).
2.2 Cordyceps militaris Cordyceps militaris, also known as Cordyceps militaris, referred to as Cordyceps militaris,
It is a species of Cordyceps genus, Cordyceps militaris, a species of Cordyceps genus, which is distributed in China, the United States, Canada, Italy, Japan, Germany, and the former Soviet Union, but the yield in nature is far. It is rarer than Cordyceps sinensis, and it is difficult to develop and utilize in the past because the output is too low.
2.2.1 Artificial Breeding After years of efforts, the artificial cultivation and factory production techniques of Cordyceps militaris fruiting bodies have matured, and the content of medicinal ingredients has been greatly improved through stable and good technology, for this precious natural Chinese medicine. The low-cost mass production and quality improvement have created a good foundation.
The inventor not only solved the domestication, mass production and quality improvement of Cordyceps sinensis with modern bioengineering, but also obtained a number of patents for the process and product categories, and possessed sufficient intellectual property rights, which also made the relative product listing and competition relatively. Advantages and guarantees.
2.3 Artificial cultivation of the components of Cordyceps militaris
2.3.1 Representative ingredients
A. Cordycepin is a kind of nucleoside substance with antibacterial activity, which can participate in RAN and has strong inhibitory effect on nuclear polyadenylate synthase. Therefore, DNA transcribes mRNA during the process of maturation of mRNA, thereby affecting protein synthesis, inhibiting the growth of cancer cells, and has anti-cancer effects; it can enhance the production of platelets, enhance the hematopoietic function of bone marrow, and have the effect of lowering blood sugar.
B. Cordyceps oxalic acid can significantly reduce the intracranial pressure and promote the body's metabolism, thus alleviating cerebral hemorrhage and cerebral thrombosis, treating cerebral thrombosis, cerebral hemorrhage, and treating renal failure.
C. Cordyceps polysaccharide A highly branched galactomannan. It can promote lymphocyte transformation, increase the antibody content of serum IgG and the immune function of the body, activate the function of T cells, and enhance the phagocytic ability of human macrophages.
It can proliferate spleen plasma cells, enhance the body's ability to resist cancer and inhibit cancer, increase serum corticosterone content, promote the metabolism of nucleic acids and proteins in the body, and have anti-tumor effect.
D, superoxide dismutase SOD
It can eliminate superoxide free radicals in the body, has anti-aging, prevents pigmentation, and eliminates local inflammation and anti-cancer effects.
E. The essential trace element of selenium is the active center of glutathione peroxidase, which is linked to the peptide chain of the enzyme protein in the form of selenocysteine ​​to protect the normal permeability of cell membrane stability. It stimulates the production of immunoglobulins and antibodies, enhances the body's immunity and antioxidant capacity, inhibits the growth of cancer cells, and achieves anti-cancer effects through anti-gene mutations.
2.3.2 Comparison of the main medicinal components of artificially cultivated Cordyceps militaris and natural Cordyceps sinensis and physiological functions Table 1: Comparison of main components, main trace elements and main vitamins Table name Cordyceps sinensis Cordyceps physiological function Remarks Cordycepin 0.422% 0.007% Anti-cancer, Anti-cancer, inhibit cancer cell fission, can enhance the production of platelets and enhance the hematopoietic function of bone marrow. It has obvious antagonistic or inhibitory effects on Bacillus subtilis, Mycobacterium tuberculosis, human nasopharyngeal carcinoma KB cells, human surface-like moles, dehydrated sputum and Hela cells. 60 times.
Cordycepic acid 12.8% 6.5-8.78% Treatment of cerebral thrombosis, cerebral embolism, vasospasm, cerebral hemorrhage, elimination of toxins, treatment of renal failure, diuresis, staphylococcus, streptococcus, sputum, anthrax, porcine hemorrhagic bacillus It has an inhibitory effect. 1.46—1.97 times.
Cordyceps polysaccharide 15.8%

10.5% can promote the transformation of lymphocytes, enhance the phagocytic ability of human macrophages, delay the spread of cancer cells, and activate the effect of T cells, which can proliferate spleen plasma cells and significantly improve human immune function. About 1.5 times.
SOD
968
u/mg pro 183 Antioxidant enzyme, which removes harmful superoxides from the human body, reduces the rate of production of OH free radicals by 10 to 9 times, and has significant effects on anti-aging, improving human immune function and resisting various intractable diseases. effect. About 5.2 times.
Selenium 1.8ug/g
0.14ug/g Selenium is known as the king of anti-cancer. It inhibits cell fission and is an essential component of glutathione peroxidase. It can remove toxic peroxides from the body, delay aging and improve immune function. And can prevent Keshan disease and Dandan disease, coronary heart disease, male infertility. About 12.8 times.

Potassium
14000
Ug/g
0.56-8389.6
Ug/g maintains the osmotic pressure and normal volume of intracellular fluid, participates in the regulation of acid-base balance, improves the excitability of neuromuscular, is conducive to diastole, and has antihypertensive effect on hypertensive patients. Potassium deficiency can cause damage to the heart, kidney, intestines and muscles. 1.67-25000
Times.
phosphorus
9000
Ug/g
2901-5192.8
Ug/g The important constituent materials of bones and teeth are cartilage tissue, an important component of lipids in DNA and RNA cell membranes, involved in energy storage, substance activation, enzyme composition regulation, and acid-base balance. 1.73-3.1 times.
magnesium
860 ug/g

1178-1538
Ug/g is the main cation in cells. It is an activator of various enzymes. It is involved in maintaining myocardial function. When it is lacking, it is emotionally disturbed, irritating, convulsions of hands and feet, hyperreflexia, long-term magnesium deficiency, bone brittleness, and poor tooth growth. 0.58-0.73 times.
Zinc
87.0 ug/g

86.1 ug/g Participates in the metabolic reaction of various substances and the synthesis of nucleic acids and proteins, assists in the movement of glucose on the cell membrane, and participates in more than 100 active enzymes in the human body. In the absence of growth, the performance is poor growth, loss of taste, loss of appetite, slow wound healing, and decreased sexual function. About the same molybdenum 0.05 No detection related to the activity of xanthine oxidase, is an essential element for the body's multiple energy exchange, and lack of molybdenum can cause poor growth.
manganese
10.1 ug/g

32.65 ug/g
It is related to the activity of polysaccharide polymerase and galactose transferase. Its vitality is very important for the formation of mucopolysaccharide and bone matrix. Therefore, it can cause skeletal malformation when it is lacking. At the same time, low-manganese food can lower the blood sugar content of cholesterol and is suitable for the elderly. 0.3 times.

copper
2.9 ug/g
11.84 ug/g The composition of various metal enzymes is conducive to the absorption of iron. When the body is deficient in copper, it shows growth stagnation and anemia, connective tissue formation damage, hair dysfunction and albinism. 0.24 times.
calcium
23.60
Ug/g
563 ug/g maintains the normal excitatory conduction and appropriate induction of the heart and muscle nerves, participates in the blood coagulation process, activates some enzyme systems, and causes rickets and osteoporosis when it is lacking. 0.042 times.

Vitamin A 0.385mg/g 0.067 mg/g constitutes a sensory substance of the visual sedimentation cell, protects the epithelial cells and enhances the immune function of the human body. Lack of growth can cause poor growth, dry eye, night blindness, tearing, reproductive disorders, dental cell atrophy, and decreased resistance.

Vitamin B1 0.748mg/g Trace Amounts involved in a variety of enzyme reactions, play a role in glucose metabolism, lack of neuritis, beriberi, muscle spasm, anorexia, bradycardia, heart enlargement myocardial lesions; edema, poor growth.
Vitamin B2 0.176mg/g 0.014mg/g
It is a prosthetic component of lutein, which acts as a hydrogen donor in the biological oxidation of the body. When it is lacking, it has poor growth, eye, mouth, genital disorders, angular cheilitis, myelin atrophy, and muscle weakness.
Vitamin B6 2.282mg/g Trace A coenzyme that constitutes a transaminase, which plays a role in the conversion of tryptophan to niacin. In the absence of growth, excessive growth, excessive excitability, heart disease, anorexia, insomnia, small red blood cell anemia, and limb pain.
Vitamin B12 0.668mg / g 0.023mg / g Participate in a variety of metabolic reactions in the form of coenzyme, increase the utilization of folic acid to increase the synthesis of nucleic acids and proteins, thereby promoting the development and maturation of red blood cells. When there is a deficiency, megaloblastic anemia will occur.
Vitamin C 0.249mg/g 0.017mg/g Participates in the hydroxylation reaction, has a reducing effect, can treat megaloblastic anemia, excrete harmful substances in the body, eliminate free radicals and anti-aging. In the absence of it, it causes scurvy, capillaries, bleeding gums, loose teeth, anemia, weak bones, and poor wound healing.

Vitamin D3 0.148mg / g traces promote the absorption of calcium and phosphorus in the small intestine. Lack of rickets, joint hypertrophy, osteomalacia, hunchback, increased plasma phosphatase, and poor dentin calcification.
Vitamin E 3.693Mg/g 0.037Mg/g It is related to fertility, maintains reproductive function, and experiments with rats. When males are deficient, the testicles do not produce sperm or atrophy. Female placenta atrophy, prone to miscarriage.
Anti-aging, scavenging free radicals, protecting the structure and function of human biofilms. In the absence of brain softening, liver necrosis, red blood cell melting, anemia, liver dystrophies, testicular reproductive epithelial atrophy, reproductive decline.
Vitamin PP
930 ug/g
82 ug / g is a variety of non-aerobic dehydrogenase coenzyme components, in the process of biological hydrogenation in the process of hydrogen, in the absence of growth, causing poor growth, pellagra, necrotic enteritis, glossitis, diarrhea, dermatitis headache, paralysis. 11.35 times.

Table 2: Comparison of major amino acid content Amino acid Cordyceps content Natural Cordyceps content Aspartic acid 1052 227
Threonine 879 142
Serine 495 138
Glutamate 1762 417
Glycine 547 129
Alanine 947 90
Cystine 35 57
Proline 867 163
Methionine 70 52
Isoleucine 478 93
Leucine 717 146
Tyrosine 593 67
Phenylalanine 436 114
Lysine 688 132
Histidine 249 136
Arginine 672 142
Proline 519 83
Tryptophan 139 12
Total 11145 2340

Table 3: Comparison of major nucleosides content nucleosides Cordyceps content%% natural cordyceps content%
Cordycepin as shown in Table 1. Table 1 uridine 0.38 0.09
Adenosine 0.26 0.06
Adenine 0.11 0.01
Description: Artificially cultivated Cordyceps militaris contains 19 kinds of trace elements, 12 kinds of vitamins, 90 kinds of amino acids and various nucleosides. The unlisted parts in the above table are not listed because they have not been tested recently.

3. Product competitive advantage
3.1 Pharmacological ingredients artificial cultivation Cordyceps militaris is a cordyceps fruiting body that has been selected from a large number of natural Cordyceps species and cultivated and domesticated by modern bioengineering techniques. Due to the excellent variety, the effective drug content is high. According to the authority's test, its main active ingredients are much higher than the commercially available natural Cordyceps and Cordyceps fermenting mycelium.
Table 1: Main ingredient control ingredients Natural Cordyceps fermented Cordyceps artificially cultivated Cordyceps sinensis Cordyceps 0.007% 0 0.422% is natural Cordyceps 60 times Cordyceps 6.5-8.78% 5.17% 12.8% is natural Cordyceps 1.5-2 times Cordyceps polysaccharide 10.5% 4.69 % 15.8% is 1.5 times natural Cordyceps
SOD 183μ/mg pro not detected 986μ/mg pro is natural Cordyceps 5.2 times selenium 0.14ug/g unchecked 1.8ug/g is 12.8 times that of natural Cordyceps

Table 2: Comparison project for scavenging OH radicals Natural Cordyceps Artificially cultivated Cordyceps militaris concentration 0.5g/ml 0.5g/ml
Clearance % 69 93

Therefore, the amount of artificially cultivated Cordyceps militaris is small. The prescribed dosage of natural Cordyceps is 3-9 grams per person per day, and the prescription dosage of artificially cultivated Cordyceps is only 1-3 grams per person per day. The curative effect is good, and the pharmacological effects of artificially cultivating Cordyceps militaris are much better than that of natural Cordyceps and Cordyceps fermenting mycelium by taking the same amount of artificially cultivated Cordyceps and natural Cordyceps.
3.2 Industrial production of natural Cordyceps is based on the bat larvae or other worms as the host and began to develop from generation to generation. Initially, the worms provided nutrients only for Cordyceps, and later the worms were filled with mycelium, which became the commonly known Cordyceps sinensis. The cultivation of artificially cultivated Cordyceps militaris is a nutrient component of simulating worms, and the pure natural flora and fauna is used as a medium to replace the worms, which has the advantages of mass production and large scale of production. The cultivation of artificially cultivated Cordyceps militaris does not require larvae and can be cultivated all year round.
Therefore, it is possible to mass-produce the factory.
3.3 Low cost and stable supply
A. Low production cost and good economic benefits. The cost of factory production is far lower than that of natural Cordyceps. At present, the price of natural Cordyceps is about RMB11000 per kg, and the high-grade products are even as high as RMB20000, plus less production.
Prices are still rising.
B. The supply is stable, and the factory production of artificially cultivated Cordyceps militaris is stable. If we further develop the Cordyceps series products or replace the existing Chinese medicine group, we will have a strong competitive advantage.
3.4 Self-owned intellectual property rights protection inventors own patent protection of their own intellectual property rights
A, a fast-dissolving cordyceps tea and a preparation method thereof.
B. A compound process Cordyceps wine and a preparation method thereof.
C. A compound instant soluble cordyceps tea and a preparation method thereof.
D. Industrial cultivation of Cordyceps fruiting bodies.

4. Investment environment background
4.1 Western Development Policy Western development is a major strategic choice for China's economic development in the 21st century. It has been implemented since 2000. It is planned to take 5 to 10 years to make breakthroughs in infrastructure and ecological construction in the west. Progress is aimed at narrowing the gap between the East and the West, adjusting the industrial structure, optimizing resource allocation, and strengthening national unity. Since the beginning of the development of the western region, it has established institutions, promulgated preferential policies, and compiled master plans and accelerated the construction of major projects. The 10 major projects planned for construction have all started, and the progress is progressing smoothly; the investment in construction projects has completed more than 76 billion yuan, of which 40% of the projects have been completed and put into production. In 2001, the government formulated the implementation rules for preferential policies, carried out legislative work for the development of the western region, organized the implementation of the plan for the development of the western region, and started new constructions including the Qinghai-Tibet Railway, the West-East Gas Pipeline, returning farmland to forests and grasslands, and educational projects. The key projects have a total investment of 300 billion yuan.
With the state's financial resources, the company will implement direct development assistance including fiscal transfer payments and infrastructure investment, and use the state-owned policy resources to induce domestic and foreign capital, technology, talents and enterprises to “westward” and actively adjust the industrial structure. Local geography, climate and resources, etc., focus on the development of advantageous industries with their own characteristics,
Develop science and technology and education, accelerate personnel training, accelerate the transformation of scientific and technological achievements, increase reform and opening up, study new ideas, new methods, and new mechanisms to adapt to the new situation, and adopt some major policy measures to accelerate the pace of reform and opening up in the western region.
The country’s tilting investment policy to the west has prompted huge amounts of funds to drive all industries in an all-round way. The supply of products in these industries provides direct and potential development space for enterprises, and the development priorities set by local governments in the west.
Will give enterprises "policy guarantee" and "enjoy the biggest policy three-dimensional space", "reasonable regional adjustment function"
And “moderate relaxation of taxation systems, investment and financing”.
4.2 Overview of Yunnan, China:
Yunnan Province is located in the southwestern border of China. The province covers an area of ​​39,000 square kilometers, accounting for 4% of the country's total area.
Ranked eighth in the country. The southern part of the country borders Myanmar, Laos and Vietnam, and is adjacent to Thailand and India. The border line is 4,060 kilometers long.

Yunnan is located in the southwestern border of China. There are many ethnic minorities, rich in natural resources, and abundant natural minerals, animal and plant resources. However, due to the mountains and rivers in the territory, the hills are undulating. Since ancient times, the traffic has been inconvenient, except for the historic Nansi Road.
Even in the two basins that are next to each other, the people often have different situations of old and dying; the inconvenience of transportation not only makes the development and utilization of resources impossible, but also makes it difficult to communicate with the outside world, thus causing the people to be conservative.
In the past, this has greatly restricted the development of Yunnan. Similarly, the abundant resources here have been preserved relatively intact.
Since the reform and opening up, Yunnan Province has started to build on the infrastructure construction, and has made full development in transportation and energy. After more than ten years of hard work, the infrastructure of Yunnan Province has reached an unprecedented high level in history, goods and personnel. It has been able to circulate smoothly inside and outside the province, and electric power and water resources have been developed and fully utilized to meet demand. Today, Yunnan Province has shaken off the image of poverty, backwardness, and conservativeness in the past, and is poised for development in the “Western Development”. Under the policy, with its rich flora and fauna resources and a tourism environment full of ethnic culture and beauty, it will fly to the future.
4.3 Overview of Yunnan Investment Environment:
Yunnan enjoys the reputation of “plant kingdom”, “animal kingdom”, “flower home” and “hometown of medicinal materials”; mineral resources mainly composed of phosphorus and non-ferrous metals have large reserves and high concentration, phosphorus, copper and lead. 25 kinds of minerals such as zinc, the third largest in terms of planned reserves; the water is abundant, the theoretical reserves are 103.64 million kilowatts, and the developable installed capacity is
71.168 million kilowatts; Yunnan condenses a variety of climate types from the tropics to the frigid zone, with natural beauty and unique ethnic culture. The tourism resources are gradually matched and more reasonable.
4.3.1 Advantageous industries supported by Yunnan
A. Infrastructure construction: To realize the high-levelization of the “three horizontal and three vertical” road network for Yunnan, and form a traffic trunk line to support Yunnan's adjustment of productivity layout; Nankun, Nei Kun, Yunnan and Tibet, Pan-Asian Railway form China and Southeast Asia The railway network connecting South Asia and neighboring provinces; the construction of Kunming Second Airport, Nujiang, Honghe Civil Airport, the expansion of Jinghong and Mang citizens' airports, and laying the absolute status of Yunnan as China's fifth largest international airport.
B. Modern medicine industry based on natural medicine: focus on the development of new medicines based on Yunnan medicinal plants and animals; medicinal plants industrial products and national medicines.
C. Flower industry: Taking full advantage of the climatic conditions of Yunnan and the diversity of wild flower resources, Yunnan will be built into the country's largest flower production, export base and trading center.
D. Science and education is booming: developing education, attaching importance to quality education, and accelerating the training of all types of talents. In accordance with the principle of "co-construction, adjustment, cooperation, and merger", there are plans to implement joint education. Rational allocation and full use of educational resources,
Improve the quality of education and school benefits. Increase investment in education, and open the door to attract domestic and foreign funds to invest in education.
E, cultural and entertainment industry.
F. Electromechanical industry: aiming at the integration of machine optoelectronics, measured by market demand and expanded in a timely manner.
G, building materials industry.
H. Commercial and trade industry: Kunming will be built into a regional international trade center, and actively promote the construction of three border trade zones or bonded areas of Ruili, Hekou and Jinghong, and improve and improve the four secondary trade centers of Yuxi, Qujing, Dali and Kaiyuan.
I. Information industry.
J, bioengineering technology industry.

5. Investment and plant planning

5.2 Basic stock composition basket and staff of the Board of Supervisors
5.2.1 Share composition ★ The investor contributed RMB 3.6 million, accounting for 60% of the total share capital;
★Technical party with its technology and intellectual property rights, accounting for 35% of the total share capital;
★ Lianhua Company accounts for 5% of the total share capital of its intangible assets for Yunnan investment operations and business channels;
5.2.2 The staff of the board of directors ★ The sales and trading company has 5 directors, of which 2 seats are from the funder, 1 is from the technical side, and 1 is from the representative of Lianhua.
5.3 The chairman of the management team shall be appointed by the funder.
experience:

The managing director shall be appointed by a tripartite party to serve as a suitable person.
experience:

The deputy general manager and director of the board of directors shall be appointed by the technical party.
experience:

The deputy general manager of the director's business shall be appointed by the tripartite parties.
experience:

5.4 The scale and budget of the plant are to produce 80KG of dried Cordyceps sinensis fruit per month, and the mycelium 400KG is the initial scale.
Expense name Main content Amount of money Remarks Start-up fee
Office first year rent 48,000 100m2, urban office registration 8,000
Buy office wealth equipment 20,000 tables, chairs, telephones, faxes, computers, basic stationery, water dispensers, tea cups, etc. Buying vans 50,000 domestic Changhe vans to build a factory to purchase land 600,000 2600m2, suburban factory construction costs 880,000 2200m2, including office, Laboratory equipment, inoculation room, culture room, medium configuration room, etc. purchase office wealth management equipment 20,000 tables and chairs, telephone, fax, computer, basic stationery, water dispenser, tea cup, etc. 391,000 equipment including sterile super mirror workbench, microscope... ...and purchase van 50,000 domestic Changhe van liquidity reserve liquidity 1,533,000
Total investment amount 3,600,000

6. Estimated revenue
6.1 Business Objectives The 21st century is the century of biochemical technology. Today, as human life in the world gradually moves toward a well-off society, the pursuit of health and longevity has become an irreversible trend. Therefore, all major manufacturers have a variety of health and natural appeals. Products are introduced to the market; while these products appear, the early-stage chemical compounds are gradually disappearing in the market, replaced by general extracts of natural fungi, plants, animals or single extracts, or directly listed. Or as a pharmaceutical intermediate to be processed into high value-added pharmaceutical products, it is foreseeable that biochemical technology will dominate the star industry in this century and become a unique show.
According to the annual assessment report of the authoritative research institutions of the global pharmaceutical market, global pharmaceutical sales reached 343 billion US dollars in 1999, an increase of 12% over 1998, of which China only accounted for 22 billion US dollars. The report predicts that by 2004, global drug sales will reach $506 billion. In 1999, North America remained the world's largest pharmaceutical market, with pharmaceutical sales reaching $138.8 billion, an increase of 18% over the previous year. It is estimated that by 2004, sales of pharmaceuticals in North America will reach 234.37 billion US dollars, an average annual growth rate of 11%. Drug sales in Western Europe in 1999 were flat at $89.6 billion, but the report expects annual sales of pharmaceuticals to grow at an annual rate of 7.7% over the next five years. The Japanese pharmaceutical market was affected by the government’s policy of lowering drug prices once a year. Last year’s sales soared by 20% to $43.5 billion, but the report predicts an average annual increase of only 0.4% in pharmaceutical sales over the next five years. . The world's top ten pharmaceutical markets are mainly distributed in North America, Japan, Latin America and Europe. The United States is still the largest pharmaceutical market, with sales of $99.5 billion in 1998, followed by Japan; first place in Europe in Germany with $18.2 billion, and the top ten markets in 1998 accounted for 85% of global drug sales, market The total amount is 251.3 billion US dollars. In the next five years, the fastest growing regions are North America, the Middle East, Australia and Southeast Asia including China. 39% of pharmaceutical sales in 1998 were in North America, and the market is expected to reach $169 billion in sales by 2002.
Although the market is so huge, the business objective should be based on the principle of development in stability, rational allocation of domestic and foreign markets, first to lay the foundation for the basic products in the province, and then expand the domestic sales market, while taking raw material extracts as a pioneering country. The touchstone of the external sales market has gradually expanded. 6.1.1 Provincial and Southwestern Markets Yunnan Province has a population of 40 million, plus the neighboring Sichuan, Guizhou, and Guangxi provinces, with a total population of about 210 million, and a conservative estimate of 10% of the total population with a consumption power. The market is 21 million people, which is equivalent to a rapidly developing Taiwan market. In the initial stage of entering the market, it should be targeted at chain stores, and dispatched personnel to enter the promotion, reaching the target of RMB 1.5 million in the first year.
6.1.2 Domestic market The domestic market mainly uses the Pearl River Delta and the Yangtze River Delta as the main market and channel radiation points. Among them, the Yangtze River Delta is the most important strategic base. Within two years after the products enter the market, it is necessary to set up a sales company in the Yangtze River Delta. Open up market access and enter the national market through a nationwide network of chain stores. At the same time, we will lock in the pharmaceutical companies that use Cordyceps as raw materials, and make breakthroughs in order to obtain a certain amount of long-term orders in a short period of time.
6.1.3 International market The international market mainly sells raw materials for cordycepin, cordycepic acid and cordyceps polysaccharides. In the initial stage of construction, the purification operation entrusts the pharmaceutical company with sufficient equipment, because the market sales of this part are limited. The initial scale of manpower, financial resources and network, this sales should be combined with coastal or Taiwanese, Hong Kong drug traders, the above-mentioned extracts have a certain demand in the international market, but the supply is much smaller than the demand, the first year to strive to develop two More than one fixed supply object.
6.2 Operating income Five-year operating income estimate for the first year

Second year

Third year

Fourth year

Fifth year

6.3 Financial Estimate
6.3.1 Five-year financial estimate
2002 2003 2004 2005 2006
Operating income
Southwest Market 1,550,000 2,000,000 *2,000,000 *2,000,000 *2,000,000
Domestic market 550,000 1,250,000 *2,000,000 *2,000,000 *2,000,000
Foreign market 0 300,000 700,000 1,000,000 *1,500,000
Raw material market 0 1,210,000 2,070,000 2,760,000 *3,460,000
Total income 2,100,000 4,760,000 6,770,000 7,760,000 8,960,000
Cost of production
Purchase finished products 750,000 - - - -
Production staff salary 64,800 129,600 142,560 156,800 172,480
Utility bill 40,000 80,000 80,000 80,000 100,000
Raw material fee 50,000 80,000 100,000 110,000 120,000
Equipment depreciation and amortization fee 90,100 180,200 180,200 180,200 180,200
Packaging and printing agency fee 111,111 170,666 213,332 224,000 235,200
Purification foundry fee 0 50,000 117,000 167,000 250,000
Shipping fee 18,250 18,250 18,250 20,000 22,000
Unforeseen expenses 30,000 30,000 30,000 30,000 30,000
Total production costs 1,154,261 738,716 881,342 968,000 1,109,880
Production costs as a percentage of revenue 55% 15.5% 13% 12.5% ​​12.4%
Gross profit before tax 945,739 4,021,284 5,888,658 6,792,000 7,850,120
Operating cost
Rental office space 48,000 48,000 52,800 58,000 63,800
Office staff salary 120,000 180,000 240,000 264,000 290,400
Communication fee 24,000 36,000 48,000 55,000 60,000
Hydropower and management fees 6,000 6,000 6,600 7,200 7,900
Communication fee 36,000 60,000 90,000 99,000 110,000
Other miscellaneous expenses 12,000 18,000 24,000 26,400 29,040
Advertising fee 60,000 120,000 180,000 180,000 180,000
Depreciation and amortization 14,000 14,000 14,000 14,000 14,000
Operating costs total 320,000 482,000 655,400 703,600 755,140
Operating costs as a percentage of revenue 15.3% 10.1% 9.7% 9.1% 8.4%
Net profit before tax 625,739 3,539,284 5,233,258 6,088,400 7,094,980
Pre-tax net profit as a percentage of revenue 29.8% 74.4% 77.3% 78.5% 79.2%
Taxes 236,435 1,005,321 1,472,165 1,698,000 1,962,530
Net profit after tax 389,304 2,533,963 3,761,093 4,390,400 5,887,590
Total number of shares 600 600 600 600 600
Net profit per share 648.84 4223.27 6268.49 7317.33 9812.65
*: Full load capacity

6.3.2 Five-year financial projection line chart
6.3.3 Five-year reserve current cash forecast

7. Conclusion Today's international investment in biotechnology, biopesticide, Chinese herbal medicine development, and health food/supply is on the rise. This field has become a new star industry after the electronics industry at the end of the 20th century, attracting a lot of financial resources. The input of material resources, and the invention of this product, not only meets the trend, but also fills the gap of natural Cordyceps resources, and improves the main shortcomings of the cost of Cordyceps fermenting mycelium; the inventor has the right to free intellectual property, for the product to go on the market After the market competition is fully guaranteed.
Whether it is direct sales market, Chinese medicine raw material supply market, single extract pharmaceutical raw material market, this product has an extremely strong price/ingredient content advantage, which is several hundred million yuan relative to the general biochemical technology industry, and I don’t know if it can produce results. In terms of investment, this project can be said to be a good project in terms of investment amount, R&D risk, existing market, and recycling speed. We look forward to your joining.