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Company profile

CHONGQING BIG SCIENCE & TECHNOLOGY DEVELOPMENT CO., LIMITED, We are a well-known international auto manffacturer and oversea auto investment corporation in China. Our mission is to focus on overseas investment in automotive assembly plant chain projects.Our investments include capital and automotive manufacturing technology, brands, key equipment,kit car spare parts and credit support under guarantee conditions.We are a joint venture corporation control by China national automobile corporation and China financial capital investment corporation.The Chinese government has proposed "One Belt And One Road".Chinese carmakers are keen to "go global".While helping developing countries to achieve industrialization, we should also develop ourselves.http://chainautoassembly.com is also another official site of ours.

Cooperation Mode

According to our many years of oversea investment and cooperation practice, we have explored the following modes of cooperation. Once you have any other cooperation ideas, it is highly appreciated to contact with us.

A.Trade Agency

At first stage, we can do exporting & importing trade business, gradually build the mutual trust and favorable business relationship, and then develop to project cooperation. If our partner hasn’t gathered enough capital to do the project, this cooperation way is recommended to accumulate funds and experience for the project start later.

B.Turnkey Project/ Technology Transfer Mode

In this project, our oversea partners take 100% shareholdings, and our Group assists you with technology and all necessary equipment of the factory, all in "turn-key project" mode. You pay for the technology transfer, while we help you to establish the assembly factory and provide you automobile parts in SKD or CKD status for assembling in order to cut your cost and simplify the production process. We provide you with all the necessary technology assistance and auto parts till you can master all required technologies and be capable to assemble vehicles on your own completely.

C.Joint Venture Mode

This is our key cooperation mode, we have the following basic ways:

1st way: we take 15% of the shareholding and being responsible for offering the Business Plan Assistance, Production Line Layout & Plant Design, Equipment Installation & Debugging, Technology Support, Worker Training, Manufacturing, Production & Quality Control Management, Advice & Guidance for Sales & After-Sales, Development Plan & Solution, etc.

2nd way: we take 35% of the shareholding and being responsible for offering the Key Equipments, Business Plan Assistance, Production Line Layout & Plant Design, Equipment Installation & Debugging, Technology Support, Worker Training, Manufacturing, Production & Quality Control Management, Advice & Guidance for Sales & After-Sales, Development Plan & Solution, etc.

3rd way: we take more than 35% of the shareholding and being responsible for offering the Capital, some Credit based on reliable guarantee, Key Equipments, Business Plan Assistance Production Line Layout & Plant Design, Equipment Installation & Debugging, Technology Support, Worker Training, Manufacturing, Production & Quality Control Management, Advice & Guidance for Sales & After-Sales, Development Plan & Solution, etc.

Requirements on Our Cooperation Partners

If you start with trade business, a necessary amount of funds for vehicle cycle purchase, a decent showroom for auto exhibition and a kind of repair shop, enough. However, if you want to start the auto assembly plant project, you have to reach the following subjective and objective requirements:

• Workshop / Factory: 5000-8000 square meters to start, and a piece of an industrial land around 20000-25000 square meters for expansion in future.

• Fund: You need to have necessary economic strength & investment capacity, specifically, two million USD at least, excluding land and workshop.

• Market channel: You’d better have your own car sales channel & network, automobile related business.

• Auto import tariff policy: The import tariff policy in your country is very important, the difference of import tariff between CKD (completely knocked down) and CBU (complete built unit) shall be at least 30-35%; for example, if the import tariff on CBU is 35%, so it must be 5% or free on CKD. It is the key factor to set up an assembly plant in local overseas, however, if the import tariff on CKD is almost the same with that on CBU, the auto plant will have not any profit space and it makes no sense to start it.

General Questions About Auto Assembly Plant Project

1,Q:How much will it cost for auto chain assembly?

How much land does it need?

How many workers shall we need to recruit?

How long does it take to finish construction of the assembly plant?

How much electric power is it enough to be sufficient?

How much does it cost to assemble a car?

A: For your questions mentioned, following issues need your clarification to get the answers:

-What kind of vehicle will you plan to assemble, and what is the monthly output?

-What is the requirement on degree of automation and industry localization?

-How much money will you budget for it?

-Is there availability of existing workshop and land?

-What is your plan in the term of short and/or long?

For your convenience to get a general idea, we assume assembling 1-2 types of vehicle(SUV + Pickup or Van + mini truck) with 1,200-1,800 units of yearly output which is following the principle of economical investment and implement by step as following.

First step starts from SKD assembly, it needs 3,000 square meters workshop, simple assembly, painting and detecting line which costs 0.5million USD.

To second step of CKD assembly its welding and updated painting line would be gradually added with the project growing up, maybe the time when the monthly output reached 500 or 1,000 units. That is what all would be decided by project indexes meeting with the criteria or policy of investing, certainly the market demand increased.

The unit cost of SKD assembly is including consumption of labor cost, paint, water, electric and oil etc., which takes up 3%-4% of CBU car, 5%-7% of CBU car if CKD assembly.

2,Q:How long will it take to construct the factory?

A:It is varied with different countries and areas, and would be shortened if there is existing workshop available.

Construction Timetable and necessaries:

1. Designing: 2-3 weeks

2. *Booking equipment: it will arrive within 90 working days upon payment received.

*With 90 days finish steel construction of workshop at cost of 100 USD/ M2, basement work at 30USD/ M2, without effect of bad weather.

3. Installing equipment: 90 working days. Recruiting about 50 workers and prepare circulating funds (4x100units of CIF price) to book 4 batches of spare parts.

4. Pilot assembly: 90 working days.

5. 4S store fabrication: designing, staff training and after sales.

3, Q: How much is the fluid fund to assure operating the factory smoothly?

A: fluid fund = unit cost x output/month x 4

Notes: 4 means 3-4 batches of KD parts, one batch is manufacturing in China Plant, one batch is on the way to assembly plant, one batch is being assembled in assembly plant, one batch is assembled and launched into market. The oversea joint venture or as the main Party to prepare the working capital, certainly our party as minority shareholder, we shall offer some financial support as well as Usance L/C as long as 360 days.

4, Q:Why the $10000 is required to pay before signing the MOU?

A:To compensate the work party B would put in or avoid the possibility of breaching the MOU by party A, $10,000 is required to pay in advance upon the signing of the MOU. We hope party A would appreciate the work party B would do to prepare for the implementation of the MOU and understand the necessity of such an arrangement.

5, Q: What is CBU, DKD,SKD-II, SKD-I, CKD ?

CBU: Complete Built Unit, i.e. finished automobile.

KD: Knocked down, including SKD II, SKD I and CKD, their specific definitions are as follows, however, different countries have different judgement and clarification, this is just for reference:

SKD II: Semi knocked down parts II. Car body is fully painted and glazed. Truck cabin is fully painted. The engine, gearbox, axles, suspension, driveshaft, steering, seats, tires, batteries, exhaust system, electrical parts are supplied as individual units for assembly.

SKD I: Semi knocked down parts I. Car body and trucks cabin are unpainted. The engine, gearbox, axles, suspension, driveshaft, steering, seats, tires, batteries, exhaust system, electrical parts are supplied as individual units for assembly.

CKD: Completely knocked down parts. All materials supplied loose for final welding and final assembly, or raw body shell and all other parts loose and not assembled.

6, Q: Where does the profit of assembly plant come from?

Why is it competitive?

A, Chinese automobiles has nice cost performance, and has much stronger market competitiveness( advantage about 20-30% ).

B, Due to use SKD/CKD, compared to CBU, it has 25-35% gap of difference between the import duties, that is the profit of your plant. ( Price advantage 25-35%).

C, With SKD/CKD status, you can save freight cost, about 5-10% of the total value. ( Save cost 5-10%).

D, When you develop market, you can supply very nice after-sales service by setting up 4S shop with the plant technology supply and our assistance. Spare parts trade is a new Profit growth point. In general, it takes up around 20-30% of the total value. (20-30% ).

E, Enterprise your-self auto brand, intangible assets is another economic growth point. ( Rise total value over 50%).

F, Offering financial support by Buyer’s Credit provided by China IM-EXport Bank and Sinosure, benefits 10-20% interest rate of bank loan.

G, China's reform and opening-up has been around 40 years with much development experience, having achieved such a rapid development of economy, so you should believe that we can cooperate with each other successfully.

7, Q: What is the brand of vehicle assembled in the plant, Chinese brand or joint venture brand, or Local brand?

A:According to our experience in investing in more than ten overseas factories, it is rather Chinese or joint venture brand than local brand, and pushing local brand along with business expansion.

8, Q: Explain why we arrange joint venture plant’s share structure:

A:"65% is held by local shareholders, while 35% is invested by our China auto manufacturer”

A, local shareholders, holding 65% share, have higher business enthusiasm, and this business mode is much better for the development of the plant;

B, local shareholders, holding 65% share, can take more support from their local government, Bank and consumers, and the factory will be recognized as national industry;

C, local shareholders holding 65% share, the domestic industrial enterprises are more likely to obtain the government's preferential policies for industrial development;

D, local shareholders, holding 65% share, can operate various complicated social relations easier and better, which is conducive to the development of the enterprise.

9, Q:As for after-sales service, what quality guarantee can China party provide?

A:After-sales service is the common task of auto chain assembly plant and China party. China party provides engine with 100,000kms quality guarantee and vulnerable parts in proportion.

The specific after-sales service work is carried out by the joint venture factory. According to our experience, if reasonably arranged, after-sales service is an important profit growth point in the long run.

We will provide a complete set of technical specifications, personnel training and management experience if the chain auto assembly plant was put into operation.