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1. Project Name: Sino-foreign Cooperative Project of the Tourist Scenic Area as a Whole, Liuhe Farm, Heilongjiang Province

2. Location for Construction of the Project: Liuhe Farm, Heilongjiang Province

3. Profile of the Project Principal:

    綏化農墾招商網訊：Liuhe scenic area of Liuhe Farm, Heilongjiang Province is located 32 km in the south to Qing’an County, Heilongjiang Province. Ha-Yi Expressway and Ji-Ne Expressway pass through the north side of the farm. The location is only 2 hour’s drive to Harbin and less than 1 hour’s drive to Suihua. The place is easily accessible by various means of transportation. The east side of the farm neighbors the forest ocean of the Lesser Hinggan Mountains and its west side adjoins the vast Song-Nen Plain, presenting typical semi-mountainous and plain scenery. The main rivers that flow through the farm are te Liuhe River, Kaoshan River and Hongmaojian River. The Xiaoliuhe Reservoir and Erdaohe Reservoir have been built. The scenic area is taking shape. Liuhe Farm once was well-known throughout China since it was the location of the first “May Seventh Cadres School” in the country. Many leaders at the provincial and ministerial levels, old cadres and old educated youth once lived and worked here. The place is famous for its profound historical culture.

4. Project Construction: Liuhe tourist scenic area will be built through promotion of foreign investment in the pattern of “one center and seven zones”.

One center: a small garden town: A small garden town described as “a town on green background with houses in the forest” will be built with Liuhe Farm as the center. The remaining 200 one-story houses with an area of 12,000 square meters are provided by the farm for development through investment promotion. Expected investment: 12 million Yuan

Seven zones: 1. Historical secrete disclosure zone: The existing “May Seventh” Cadres School History Museum will be leased out by the farm and the former site of the “May Seventh Cadres School” will be restored. The investment promotion project is presented by the farm which will acquire equity in the form of lease or land polling. Estimated investment: 5 million Yuan.

2. Agricultural sightseeing area: The 2,000-mu dry land on the two sides of the ring-road as tourist route will be leased out to the developers to build an agricultural demonstration zone with high-efficient crops sightseeing belt and characteristic livestock husbandry as the main business. The farm will give assistance in obtaining land use approval for livestock husbandry and in site selection. The developer will carry out business operation mainly on their own. Expected investment: 4.5 million Yuan

3. Forest fruits picking zone: The farm will lease out the grape picking park, also lease out the vegetable and fruit picking parks as supplementary activities, to the developers. An area will be reserved in the tourist route for picking up wild vegetables, mushrooms and wild fruits. Estimated investment: 2 million Yuan

4. Holiday resort: The developers can further improve the infrastructure of the Hualong Villa, Lotus Villa, South-Lake Villa and the Sun-Rise countryside villa cluster and enrich their leisure and entertainment activities. Estimated investment: 3 million Yuan.

5. On-water recreation zone: The Small Liuhe reservoir will be leased out by the farm or taken as a resource by the farm to change for equity. The developers can make investment in on-water entertainment activities, such as boating, on-water restaurant, fishing, etc. It is possible to develop the surrounding resources as a whole. Estimated investment: 3 million Yuan.

6. Open-country interest zone: The main target is the present forest park, which will be leased out by the farm or taken as a source to change for equity. The developers can extend the area of open-country ​​forest interest zone. Jungle adventure, outdoor development training and other entertainment programs can be carries out in the forest. Estimated investment: 2 million Yuan.

7. Farmer’s family food zone: The main target is the dining area on both sides of the waterfront road. The farm can do some coordination work for lease or acquisition. The developers can also consider reuse of the abandoned Liuhe Farm’s bathhouse and the teaching building left over by the Forestry Workers’ Vocational College for countryside accommodation and food service. Estimated investment: 3.5 million Yuan.

5. Source of Customers:

Source of customers: Through improvement and extensive publicity of the Liuhe scenic spot, Liuhe farm, in the past decade, the tourist source market covers Harbin, Daqing, Suihua, Qing’an, Tieli, Yichun and other surrounding cities and counties. Now the scenic spot receives 50,000 person-times each year averagely.

6. Economic Benefits of the Project

To make calculation on basis of 80,000 person-times received each year averagely, if each visitor spends at least 200 Yuan, the income from tourism will reach 16 million yuan each year. The annual net profit will be 7 million Yuan.

7. Patterns of Cooperation: Equity participation, share holding, lease or selling