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Home , Boshan District, Gaoqing County, Huantai County, Linzi District, Xintai, Yiyuan County

Content Preface 02/03

Zibo Today 04/07

Development of 08/11

Operating Costs 12/17

Business and Living Environment 18/21

Investment in Zibo 22/31

Service Institutions 32/33

Name Lists of Main Companies 34/39 INVEST IN ZIBO Preface

As a time-honored commercial town of , Zibo is one of the earliest regions opening up to international trade and investment, which initiated its opening-up over a century ago. In 1904, Zhoucun, with a territory of more than 300,000 square metres, one of the five districts in Zibo, was approved as a treaty port by the Qing government and since then it has attracted investment from more than a hundred companies around the world. British American Tobacco and Mobil, for example, set up sales representatives as early as 1905. With 's reopening to the world in the 1970s, Zibo's economy has seen significant development. Zibo had a gross domestic product (GDP) compound annual growth rate (CAGR) of 9.3 percent between 2011 and 2015. Zibo saw 2015 GDP growth of 7.1 percent. This equated to a 2015 GDP of RMB 413.02 billion Yuan. is seen as the base of Zibo's economic development, in which the local chemical and medical industries play important roles. Zibo serves as an important provincial and even national city in petrochemical industry. The medical industry is also a major force in Zibo. It is the largest production and export base of antipyretic-analgesics in Asia, accounts for 80 percent of domestic pharmaceutical glass production, and ranks top in China's production scale of radiotherapy equipment, sterilisation & disinfection equipment and surgical instrument. By virtue of rapid development since the foundation of the state, and in particular during the over 30 years of reform and opening-up, Zibo has gradually formed its comprehensive industrial system with characteristics of chemistry, medical care, electrical machinery, building materials, ceramics and . In 2011, Zibo became the provincially 3rd and the nationally 16th city with industrial economy exceeding 1 trillion Yuan. Zibo is listed as one of China's Top 50 Cities in Competitive Strength year by year since 1992. In 2015, Zibo ranked 40th in China's Top 100 Cities of Comprehensive Strength and 35th in Forbes' Best Commercial City in Mainland China. In 2015, Zibo continued its holding of the title in the 4th Selection of National Civilized City, and passed the Review of National Hygienic City in 2015. Zibo Investment Guide

01 Zibo Today

·Location and History ·Population and Natural Environment ·Urban Development Planning Serving as the key transportation hub of Shandong Province, Zibo boasts a time-honored history as well as a typical city complex comprised of several downtown areas. Zibo Investment Guide 5

Location and History

Zibo City serves as the key transportation hub of Shandong Province.

Zibo, centrally located in Shandong province, connects the Luzhong mountain area and Lubei , and has long acted as a regional transportation hub as well as the passage between the Central China and . The railway lines of Jiaoji (-Ji'nan), Zhangbo (Zhangdian-Boshan), Zidong (Zibo-) and (Xindian-Tai'an) all converge in Zibo. Besides, the National Highways 205 and 309, along with Highways Jiqing (Ji'nan-Qingdao) G20 and Binlai (-) G18 all run through Zibo.

Historically, Zibo was the capital of the ancient State.It also developed into one of five ceramic centres in China and claims to be a cradle of world football.

Zibo is one of the state's famous historic and cultural cities. Linzi, now one of Zibo's districts, was the capital of the ancient Qi State and one of the biggest cities around 2,500 years ago. Some of the earliest Chinese works on the handicraft industry, Kao Gong Ji, on the agricultural industry, Qi Min Yao Shu, and on the service industry, Guan Zi, originated here. Serving as one of the earliest pottery production bases, Zibo boasts a ceramic culture of more than 8,000 years. As one of the top five ceramic cities in Chinese history, Zibo has been recognized as China's Famous City of Ceramics by the National Light Industry Federation and China Ceramics Industry Association in 2004, and now exports its ceramics to more than 80 countries and areas around the world. In July 2004, the International Federation of Association Football (FIFA) announced in that “China is the homeland of football (anciently named as Cuju) while Zibo is the cradle of world football”. Zibo Investment Guide

Population and Natural Environment

Zibo features four distinct seasons and a pleasant climate

As of the end of 2015, Zibo has a population of 4.642 million. This city enjoys a semi-humid and semi-arid monsoon climate of medium latitudes with average rainfall of 629.8 millimetres and average temperatures of 14.3 degrees Celsius, annually. With titles of “National Forest City” and “National Garden City”, Zibo has always regarded consolidation of established achievements as the major means of optimizing urban environment and enhancing urban images. As of the end of 2015, Zibo had a total green space area of 12,215 hectares, equating to a 45 percent green space ratio across the city. Currently, Zibo has 47 parks and park green area of 4,089 hectares, with around 19.5 square metres park green area per capita.

Beijing

Dongying Zibo Binzhou

Shandong Ji’nan Yaoqiang International Airport

’ Ji nan Qingdao Liuting International Airport Zibo

Qingdao

Ji’ning National Highway Railway

Zibo’s geographic position in China Zibo’s transportation map Zibo Investment Guide 7

Urban Development Planning

Zibo is a typical city complex comprised of several downtown areas.

Administratively, Zibo covers a total area of 5,965 square kilometres made up of five districts (Zhangdian, Zichuan, Boshan, Zhoucun and Linzi), three counties (Huantai, Gaoqing and Yiyuan), and including Zibo National New & High-tech Industrial Park and provincial-level Lake Tourist Resort. Zhangdian , as the economic, socio-political and transportation centre of Zibo, is the seat of local government. Formally established in 1955, Zibo has undergone multiple times of administrative division reform, forming the present generally scatted while locally concentrated city complex with eight relatively independent urban areas, interlacing of urban & rural areas and combination of industry & agriculture.

Zibo is continuing its infrastructure consolidation.

Zibo plans to further develop its infrastructure, focusing on transportation, energy security, IT infrastructure and water facilities. Local projects underway include High-speed Rail Jiqing (Ji'nan-Qingdao) Project (Zibo Section), Highway Jiqing (Ji'nan-Qingdao) Expansion Project (Zibo Section), Gaoqing General Airport Construction Project, Public Transportation Intensification & Modification Project, Ultra-high Voltage Transmission & Transformation Project, Information Service Platform Construction Project and Central Water-system Renovation Project, etc.

With continuous improvement of commerce & tourism development, Zibo is simultaneously striving to become a National Ecological Garden City.

Zibo's government plans to modernize its tourism industry with Binbo Highway one tourism reception centre, two historic culture ties and four tourism functional areas to be built up in 2020 as the principal part, through which the development of interrelated industries (such as hotel industry) can be motivated as well.

Zibo's government plans to modernize the city's commercial sector through development of new commercial streets as well as Jiqing Highway construction of medium and large commercial retail outlets. Zibo is set to reach National Ecological Garden City standards through its ecological function regionalization and ecological Jiaoji Railway construction of water & biological resources. National Highway By the end of 2020, Zibo is expected to achieve forest coverage Railway rate of 38 percent, forest coverage area of 3.4 million Mu, 25 forest Zibo Government Zibo National New & High-tech parks and 2 natural conservation areas. Industrial Park Zibo Railway Station Key construction projects include Cultural Tourism Innovation Bolai Highway Park Project of Great Wall of Qi, Mata Lake Ecological Tourism

Resort Project, Wuyang Lake Tourism Infrastructure Project, Xiaofu River Comprehensive Reconstruction Project and Jiuding Mountain Ecological Rehabilitation Project, etc.

Map of Zibo Zibo Investment Guide

02 Development of Zibo

·Economy ·Consumer Market ·Major Industry Development Plan In recent years, as one of major industrial cities in China, Zibo continuously boosts its steady economic development through diversified industrial structure. Zibo Investment Guide 9

Economy

Since China's reform and opening-up, Zibo's economy has seen steady growth

In 2015, the GDP of Zibo was 413.02 billion Yuan, ranking 5th in Shandong. The gross regional domestic product per capita was 89,235 Yuan (US$14,330), ranking 4th in Shandong, 39% higher than the domestic average value. The general public budget revenue reached 31.79 billion Yuan. For the past few years, Zibo accelerates its transformation development from a traditional industrial city, constantly expediting industrial structure adjustment, and the ratio of three times of industrial structure adjustment is 3.5:54:42.5. Zibo boasts enormous industrial strength. By 2015, there were 2,910 large-scale industrial enterprises in Zibo, realizing the prime operating revenue of 1,146.25 billion Yuan. There are currently 26 listed companies, with 22 listed in domestic stock exchanges. Shandong Equity Transaction Centre is located in Zibo, in which 611 enterprises are listed and 763 ones are trusted. Key listed enterprises include Jinjing Science and Technology Co., Ltd., Shinva Medical Instrument Co., Ltd., Shandong Bohui Paper Industrial Co., Ltd., Jinling Mining Co., Ltd., Shandong Dongyue Chemical Co., Ltd., Shengli Steel Pipe Co., Ltd.,Luthai Textile Co., Ltd., Zibo Qixiang Tengda Chemical Co., Ltd., Shandong Qifeng Special Paper Co., Ltd., Shandong Pharmaceutical & Chemical Co., Ltd., and Shandong Bluesail Medical Co., Ltd.

Consumer Market RMB One Hundred Million Yuan Gross Regional Domestic Product % 3,500 Zibo offers a developing consumer market to investors Growth Rate 4,130.2 18 3,000 4,029.8 16 14 In 2015, Zibo's urban and rural residents' 2,500 3,801.2 3,557.2 12 3,280.23 disposable incomes per capita were 33,793 Yuan and 2,000 10 14,531 Yuan respectively, which were respectively 7 1,500 8 6 percent and 12.4 percent higher than average levels 1,000 of Shandong Province. Meanwhile, the consumption 4 500 2 expenditure per capita reached 22,120 Yuan and 0 0 10,372 Yuan respectively, which were respectively 2011 2012 2013 2014 2015 11.4 percent and 18.6 percent higher than provincial Source: Statistics Bureau of Zibo average levels. In 2015, Zibo's consumer markets saw a steady development, and the annual gross retail sales of social consumer goods reached 194.97 billion Urban Residents’ Disposable Income Per Capita RMB Yuan Yuan, which was an increase of 10.6 percent compared Rural Residents’ Disposable Income Per Capita with the previous year. 25,000 33,793 Zibo boasts the largest high-end modernized 33,534 20,000 31,515 wholesaler trading market in central region of 28,189 24,955 Shandong Province-Zibo Market. Other major 15,000 14,531 shopping areas are: Ceramic & Coloured Glaze Market 15,531 13,932 10,000 12,378 in Boshan district, Zhoucun Commercial Street, Zibo 10,878 Qisai Science and Technology Plaza, Rongbaozhai Qilu 5,000 Arts Plaza, Linzi Chemical Products Plaza, Zichuan 0 Building Materials Plaza and Zhoucun Textile Plaza, 2011 2012 2013 2014 2015 etc. Source: Statistics Bureau of Zibo Zibo Investment Guide

Major industry development plan

Zibo carries out “New & High- and medical & pharmaceutical equipment, innovation chains of non-toxic denitration tech Industry Chain-casting Project”, etc., focuses on development of catalysts and comprehensive resource establishes a batch of innovation industry biopharmacy & new-type pharmaceutical utilisation, etc., prioritizes the development chains that are technically leading preparations, traditional Chinese medicine & of environmental-protection materials both at home and abroad, accelerates natural drugs, high-end medical instrument & medicament, waste water, sludge development of three competitive industries and health-care food, refines competitive & foul gas treatment technologies and (new materials, biology & medicine industries like pharmaceutical intermediates, equipment, and vigorously develops solar- and mechanical & electrical equipment pharmaceutical equipment, packing energy equipment like thin-film solar manufacturing) and two potential industries materials for medicine and pharmaceutical cell, ultra-clear glass for photovoltaic cell (energy conservation & environment adjuvants, etc., and positively develops substrate, semi-conductor accessories. protection and electronic information), green agricultural biologics and biological Zibo strives to develop energy-saving realizing quality upgrading, capacity products. By the end of 13th Five-year and environmental-protection services expansion and development multiplying Plan, Zibo's prime operating revenue of like energy-saving service, socialisation of emerging industries. By the end of 13th these fields is expected to top 100 billion operation of environmental-protection Five-year Plan, Zibo's emerging industries Yuan. facilities, environment consultation & are expected to account for over 30 percent Zibo is establishing itself into supervision, engineering technology of its large-scale industries. national famous city of electromechanical design, authentication & evaluation, Zibo is establishing itself into China's equipment. It upgrades independent etc., and cultivates the development of metropolis of new materials. It implements design, manufacturing and total-package new type of businesses like dynamic double-high strategy of “High-end capacities of advanced major equipment, monitor of resource & environment, wise materials + High-end Industries”, establishes industrial innovation chains environmental protection, on-line waste motivates transformation from orientation of efficient energy-saving motor & transaction and energy performance of basic common-use materials to that transmission equipment and high-end contracting, etc. By the end of 13th Five- of high-end special-purpose ones; pump products, focuses on development year Plan, Zibo's prime operating revenue strengthens high-end manufacturing of competitive products like new-energy of these fields is expected to top 100 billion industry, expands large-scale application vehicles & parts, new type of motors and Yuan. space of new materials, boosts industrial pumps, etc., actively cultivates intelligent Zibo is building itself into a strong ecological system with effective connection equipment and products like top- city of electronic information industry in of localized new-material supply and grade numerical-control machine tools, Shandong Province. It adheres to priority consumption. Zibo builds industrial intelligent engineering machinery, intelligent development of information industry, innovation chains like functional ceramics, transportation vehicles, new-type sensors, establishes industrial innovation chains artificial lens, high-performance refractory satellite navigation equipment, remote of electronic information material & key materials, rare-earth materials, energy- sensing devices, aerospace & nuclear- components, integrated circuit, applied saving and insulation materials, high- power equipment & accessory products, electronics, software & information polymer materials, degradable materials, intelligent power-grid accessory equipment service, etc., breaks through bottlenecks high-performance engineering materials, and wearable devices, etc. By the end of of core electronic device, high-end chip polyurethane, new-type chemical additives 13th Five-year Plan, Zibo's prime operating and basic software, etc., energetically & catalysts, etc. By the end of 13th Five- revenue of these fields is expected to top develops micro electromechanical system year Plan, Zibo's prime operating revenue 100 billion Yuan. (MEMS), capacitor, relay, metal-oxide- of these fields is expected to top 400 billion Zibo is building itself into highland semiconductor field-effect transistor, Yuan. of energy conservation and environment medical electronics, IGBT & IC card module Zibo is building itself into national protection industry. It focuses on wrapping, and improves industry scale health industry valley. It keeps pace with breakthrough of core technologies like level. By the end of 13th Five-year Plan, the frontier of international life science efficient energy utilisation, environmental Zibo's prime operating revenue of these development, sets up industrial innovation pollution prevention, VOC comprehensive fields is expected to top 100 billion Yuan. chains like biomedicine & bioengineering treatment, etc., establishes industrial

Luthai Textile Co., Ltd. Sinopec Qilu Co., Ltd. Zibo Investment Guide 11

Sicer Ceramics

Zibo carries out “a new round respectively, fine chemicals and It accelerates the pace of technical of technical transformation new-material chemicals are expected reform, grade elevating and joint plans”, positively wields new to account for over 70 percent of reorganization, focuses on eliminating technologies, processes, equipment the whole industry, and chemical outdated capacities like plain steel, and materials, reforms conventional industrial concentration ratio is coking and electrolytic aluminum, leading industries like chemistry, expected to top 80 percent. boosts structure upgrading, and machinery, building materials, Zibo pushes forward transformation enhances core competitiveness in metallurgy, and textile & apparel, of machinery industry towards the industries like non-ferrous metals, etc., upgrades quality effectiveness, direction of high-end equipment rare-earth materials and high-end reduces discharge and accelerates manufacturing. It improves levels of R & refractory materials, etc. By the end transformation and upgrading towards D, design, processing & manufacturing of 13th Five-year Plan, Zibo's prime advanced manufacturing. By the end of and system integration, promotes operating revenue and profit taxes 13th Five-year Plan, Zibo's value- applications of flexible manufacturing of these fields are expected to reach added rate of large-scale industries system, automation system, intelligent 150 billion Yuan and 20 billion Yuan is expected to overpass 22 percent. control system and industrial robot, respectively. Zibo pushes forward transformation refines vehicles & parts, pumps, Zibo pushes forward transformation of chemical industry towards fine motors & driving system and main of textile & apparel industry towards chemicals and chemical new materials. engine equipment like diesel engine, personalization and servicing It organizes layout adjustment of chemical equipment, building material directions. It intensifies industrial chemical industries within the whole equipment and agricultural equipment, chains, improves value chains, and city, propels chemical industries etc. By the end of 13th Five-year Plan, extends marketing chains, innovates to develop towards directions of Zibo's prime operating revenue and on brand operation and product regionalization, intensification, profit taxes of these fields are expected marketing modes, explores the mode clustering and greenization, and to reach 300 billion Yuan and 45 billion of “C2M + naked price + O2O” under introduces no more new chemical Yuan respectively. internet thought, and strengthens projects in regions other than parks Zibo pushes forward transformation Zibo’s independent brand of textile & under municipal plan and clusters. of building material industry towards apparel. By the end of 13th Five-year Scale expansion of fundamental high-end and branding directions. It Plan, Zibo's prime operating revenue chemicals and raw chemical materials harnesses total production quantity, and profit taxes of these fields are industries will not be continued, and adjusts industrial structure, improves expected to reach 55 billion Yuan and instead, products that are highly product grade, elevates workmanship 8 billion Yuan respectively. value-added, further processed and of building material industry by terminal will be greatly developed. penetrating into stages of brand, Development of petrochemical industry design, equipment, process, etc. in and chlorine-alkali chemical industry order to establish high-end brand in will be refined, and fine chemicals domestic building ceramic industry. and new-material chemicals will be Also, it compresses cement production developed towards high-end and high- capacity, and develops new types of quality directions so as to realize energy-saving building materials. By transformation from conventional the end of 13th Five-year Plan, Zibo's resource-driven chemical bases to prime operating revenue and profit modern technology-driven chemical taxes of these fields are expected to industrial cluster. By the end of reach 160 billion Yuan and 22 billion 13th Five-year Plan, Zibo's prime Yuan respectively. operating revenue and profit taxes of Zibo pushes forward transformation these fields are expected to reach of metallurgy industry towards 600 billion Yuan and 72 billion Yuan greenization and profound directions. Zibo Investment Guide

03 Operating Costs ·Land, factory and office building costs ·Labour costs ·Utilities ·Transportation costs Operating costs are crucial factors when selecting a plant or office location. Zibo has well established infrastructure to meet investor requirements. In 2015, Zibo ranked 35th in Forbe's Best Commercial Cities in China Mainland. Zibo Investment Guide 13

“Our company has benefited from abundant labour. Zibo is rich in technical workers, we are satisfied with our local recruitment base. And both railway and highway options from Zibo are convenient.” ——Financial Controller of Gardner Denver Nash Machinery Ltd.

Land, factory and office building costs

Foreign companies may buy a “land use right” but cannot own property outright.

Foreign companies cannot own land in China; most lease land by paying a one-time fee to the local government in exchange for a land use right certificate. Industrial land is leased for a maximum of 50 years. According to current law of China, land transfers are subject to public bidding, auction and listing.

Purpose-built factories can be constructed in Zibo in a minimum of 30 days using a lightweight steel-frame structure Shandong Institute of University

An indicative cost to construct a single story steel-frame plant with a height of 8-15 metres is approximately 620 Yuan per square metre; a concrete-structured factory with a height of 4-5 metres is approximately 1280 Yuan per square metre. Monthly rent for a standard factory (concrete-structured factory with six floors) is around RMB 30 Yuan per square metre.

Evergrowing Bank

Zibo class-one industrial and commercial standard land prices (as of March 2016) Commercial standard land price Industrial standard land price District/county (Yuan/m2) (Yuan/m2)

Zhangdian (including ZNNHIP) 3,270 857

Zichuan 2,117 675

Boshan 116 460

Zhoucun 1,915 525

Linzi 2,129 770

Huantai 1,800 460

Gaoqing 980 305

Yiyuan 1,275 336

Wenchang Lake Resort 1,818 400

Source: Bureau of Land Resources Zibo Zibo Investment Guide

Office building

High-end office buildings in downtown Zibo have convenient access to the railway stations. Luzhong Terminal Building is located in Guomao Tower, with dozens of airport buses shuttling between the terminal building and airports of Ji'nan and Qingdao. Furthermore, the check-in procedures can be immediately handled here. Rent in such office buildings is typically RMB 20-45 per square metre per month. Zibo Advanced Ceramics Institute of University of Technology

Selected office building rentals in Zibo (as of March 2016)

Name Occupancy rate Monthly rental (Yuan/m2)

Guomao Tower 99% 30

Zuanshi Business Tower 98% 30

Luzhong Chenbao Tower 97% 22

Yulong Tower 96% 20

Huaxia International Mansion 96% 25

Huijin Tower 90% 35

Chuangye Torch Plaza 90% 45

Source: Zibo Real Estate Enterprises Interview Zibo Investment Guide 15

Labour costs

Zibo is rich in labour resources

Annual Salary Level in Zibo 2015 By the end of 2015, Zibo had 13 institutions of higher education, (Annual salary Unit: Yuan) of which 8 are regular institutions of higher education, and 2 are adult 80,000 institutions of higher education. There are in total 33,000 students admitted for undergraduate or junior college education, 103,000 students studying in universities and colleges, and 29,000 students graduating from universities and colleges. Up to the end of 2015, Zibo had approximately 130,000 medium and high-level technicians. Simply in the year 2015, 1,200 persons obtained high-level specialized technical qualification, approximately 2,900 persons 40,000 40,000 obtained medium-level specialized technical qualification, and about 1,300 30,000 27,000 27,000 30,000 persons harvested the titles of technicians or senior technicians.

20,000 In 2015, average Zibo employee annual income was under 10,000 RMB 35,000 Yuan

Production Administrator Technical Operation RMB Manager Worker Worker The chart on the left details the range and average value for annual salaries

Notes: of employees in various job categories in Zibo. Data in the left chart are the wage

The annual salary includes basic benchmarks of Zibo Labour Market, which serve as general reference for foreign salary, social welfare, bonus and compensation. investors.

Source: Bureau of Human Resources and Salaries for higher-level staff tend to be directly related to the company Social Security of Zibo scale and thus vary significantly compared with average wage of general staff.

Social welfare benefits must also be paid by the company and thus need to be considered when estimating total staff costs

All enterprises must contribute to a range of benefits required by the government on behalf of employees, including pensions, injury, unemployment, medical, and maternity insurance, together with housing fund. The level of contribution is based on a percentage of an employee's salary, as set by the local authorities (details shown below). These non-salary remunerations are equivalent to roughly 40 percent - 45 percent of an employee's base salary. There are however maximum and minimum lines per month of social welfare benefits per employee (RMB 409-2046 Yuan).

Social welfare paid by employer in Zibo Pension insurance 20% Injury insurance 0.3% Unemployment insurance 1% Medical insurance 10% Maternity insurance 0.8% Housing fund 12%

Source: Bureau of Human Resources and Social Security of Zibo Zibo Investment Guide

Utilities

Zibo has modern utilities to meet local demand, with daily water-supply capacity reaching 650,000 cubic metres; it has 19 sewage treatment plants, with daily water sewage treatment capacity reaching 1,060,000 cubic metres. Zibo has 110 power substations of 35 kV or above, and the maximum load of the electricity network is 4.49 million kW in order to guarantee power demand of the whole city. All districts and counties of Zibo have access to natural gas via pipeline, with total supply of 1.1 billion cubic metres per annum. There are three main internet access methods to connect Zibo with the world: DDN, LAN and ADSL.

Utility prices in Zibo (as of March 2016) Monthly rent of broad band (as of March 2016) Broad band Monthly rent (Yuan) Utility Price 2Mbps 100 Water (Yuan/tonne) 4Mbps 125 Domestic (including sewage fee) 3.225 Industrial (including sewage 3.385 6Mbps 150 Electricity (Yuan/kw·h) 8Mbps 175 Domestic 0.5010-0.8469 10Mbps 200 Commercial ＜ 1000KV 0.7988 100Mbps 2000-2500 1-10KV 0.7838 ≥ 35KV 0.7688 Source: China Unicom, Zibo Branch Industrial Electricity for large-scale industry 0.6196-0.6646 Electricity for medium and small-scale fertilizer 0.5219-0.5669 Natural gas (Yuan/m3) Domestic 2.70 Commercial and industrial 3.03 Compressed natural gas for vehicles 3.88

Source: Price Bureau of Zibo

Telephone options include international-standard fixed line, mobile phone and Internet Protocol (IP) services; costs are shown below

Telephone charges (as of March 2016)

Local call Domestic call International call Yuan/min Yuan/6 seconds Yuan/6 seconds Fixed line 0.22 for the first 3 minutes 0.07 Hong Kong, , Taiwan 0.2 0.11 after 3 minutes Other countries and regions 0.8 Mobile phone 0.22 for the first 3 minutes 0.07 Hong Kong, Macau, Taiwan 0.2 0.11 after 3 minutes Other countries and regions 0.8 IP phone Nil Hong Kong, Macau, Taiwan 1.5+local call charge 0.3+local call charge U.S., Canada 2.4+local call charge (dial 17951 or 17909) Britain, France, Germany, 3.6+local call charge , Korea, Singapore, Thailand, Malaysia, Indonesia, Australia Other countries and regions 4.6-12+ local call charge

Notes: local call charges refer to local fixed line telephone charges Source: China Unicom, Zibo Branch Zibo Investment Guide 17

Utilities Transportation costs

Zibo's shipment can be implemented Transportation cost and time from Zibo to destinations by highway and railway

through Qingdao or Shanghai ports. DEST Highway Railway

It takes around 3 hours to transport Cost (Yuan) Days Cost (Yuan/kg) Days

a 20-foot container of general cargo Beijing 0.95 Yuan/kg for heavy cargo, 200 Yuan/m3 3-4 1.8 2-3 from Zibo to Qingdao, and 10 hours for light cargo Shanghai 1.25 Yuan/kg for heavy cargo, 263 Yuan/m3 3-4 2.8 2-3 to Shanghai. The cost and time of for light cargo transportation from Zibo to major ports Guangzhou 1.86 Yuan/kg for heavy cargo, 391 Yuan/m3 4-5 5.1 3-4 for light cargo in the world through Qingdao port are Qingdao 0.6 Yuan/kg for heavy cargo, 126 Yuan/m3 2-3 1.3 1-2 shown at the lower left part of this for light cargo

page. Note: highway transportation charge refers to the charge for cargo transportation from Zibo to the selected destination. Railway transportation charge refers to the charge for transportation of a 20-foot container of cargo to the selected destination. Above prices are Zibo is conveniently located for estimates and may fluctuate with changes in material and fuel prices highway and railway transportation. Source: Sinotrans Limited Zibo Branch Air cargo is also a choice in Zibo Sea-transportation cost and time from Zibo to destination through Qingdao Companies, such as FedEx, which DEST Cost (Yuan) Days provides domestic and international Hong Kong 3,500 6 airfreight express transportation from Osaka 3,500 5 Zibo to destinations all over the world. Kaohsiung 5,600 8

Singapore 3,500 12

Los Angeles 9,300 16

Rotterdam 6,100 16

Hamburg 6,100 32

New York 18,300 32

Note: transportation charge refers to the charge for transportation of a 20-foot container of cargo from Zibo to the selected destination. Above prices are estimates and may fluctuate with changes in materials and fuel prices Source: Sinotrans Limited Zibo Branch

Transportation cost from Zibo to the selected destination by air express service (as of March 2016)

Destination Trans. Charge (cargo weight ≤ 1kg) Trans. Charge (cargo weight ＞ 1kg)

Hong Kong 76.9 21 for each added kg

Taiwan 99.5 21 for each added kg

Macau 108.9 28.7 for each added kg

Japan, Korea 124.2 29.6 for each added kg

Singapore 91 35.1 for each added kg

U.S., Canada 158.5 95 for each added kg

Australia 143.8 70 for each added kg

Britain, France 162.3 76.6 for each added kg

Brazil 240.2 122.5 for each added kg

Russia 170.2 59.3 for each added kg

Turkey 158.9 82.1 for each added kg

South Africa 210.2 117.1 for each added kg

Note: above prices are estimates and may fluctuate with changes in materials and fuel prices. Source: China Post Zibo branch Zibo Investment Guide

04 Business and Living Environment

·Travel and housing ·Education and healthcare ·Shopping and recreation

Zibo offers diversified commercial and living choices for investors. Zhangdian district ranks at the top on living environment in Shandong Province. Zibo Investment Guide 19

Travel and housing

Zibo is well connected to other major Chinese cities

Zibo is important railway transportation hub of Shandong Province, with well developed railway transportation of passengers. Zibo residents can fly from Ji'nan Yaoqiang International Airport or Qingdao Liuting International Airport to major cities of both at home and abroad. The transportation service to both airports by shuttle bus has been on service, which takes 80 minutes from Zibo downtown to Ji'nan Yaoqiang International Airport and 3.5 hours to Qingdao Liuting International Airport.

Several housing options are available in the city

Long-term residents in Zibo have several housing options, ranging from renting apartments to serviced rooms in one of the many hotels. Zibo has two 5-star hotels, four 4-star hotels and nineteen 3-star hotels. The cost of renting a two-bedroom, 100-square metre (1,076 square feet) apartment in the downtown area charges within the range of 900-1500 Yuan per month (subject to decoration extent as well as geographical location). The newly-built 5-star Sheraton Hotel will initiate its operation in September of 2016.

Zibo local transportation is cheap and convenient.

The public transportation system in Zibo is convenient. The bus travel charges RMB 1 Yuan or 0.6 Yuan (with bus card) for each single trip. The taxi charges RMB 8 Yuan for the first three kilometres and then RMB 1.5 Yuan for each kilometre thereafter during the day time; in the night, the taxi charges RMB 9 Yuan for the first three kilometres and then RMB 1.8 Yuan for each kilometre thereafter. Vehicle rental is available in Zibo. The vehicle plus driver cost around RMB 9,000-10,000 Yuan per month (assuming a 300,000 Yuan sedan).

Domestic travel by train (as of March, 2016)

Number of Train DEST Price (Yuan） Travel time Shifts Per Day

Beijing 229 (High-speed) 14 2 hours and 50 minutes

Shanghai 433.5 (High-speed) 6 5 hours

32.5 (CRH) 18 Ji'nan 48 minutes 34.5 (High-speed) 34

87.5 (CRH) 10 Qingdao 1 hour and 55 minutes 89.5 (High-speed) 29 Zibo Investment Guide

Education and healthcare

Zibo has a strong educational resource

Zibo has 13 institutions of higher education, of which 8 are universities, and 2 are adult institutions of higher education. Key universities include of Technology and Shandong Wanjie Medical University, and Zibo Vocational Institute has been listed in the Top 100 Higher Vocational Colleges of China.

Zibo offers a range of healthcare facilities and services.

By the end of 2015, Zibo had 5,125 health institutions, including 137 general urban hospitals, 189 community health service centres, 89 health clinics in towns and townships, 9 maternity & child-care institutions, 5 special disease prevention and treatment institutions, 9 disease prevention and control institutions, and 10 health supervision agencies. Together they have in total 30,000 beds and 34,000 health- care staff, of whom 13,000 are certified doctors (including assistants), and 13,000 are registered nurses. Several hospitals in Zibo cater to expatriates, including Central Hospital of Zibo, No.1 Hospital of Zibo, Zibo Traditional Chinese Medicine Hospital and Zibo Maternity & Child-care Hospital. Zibo Investment Guide 21

Shopping and recreation

Many shopping and entertainment options are available in Zibo.

A number of multinational and national retailers, including Wal-Mart, Metro, Jusco, China Resources Vanguard, Rt-Mart, Inzone, Da Shang, Li Qun, Maoye, and Intime, etc. have set up outlets in Zibo. Gyms, history and natural museums, parks and other recreational facilities in and around Zibo provide plenty of entertainment options for residents and visitors alike.

As an ancient capital, Zibo is a tourist attraction.

As capital of the Qi State during the Chunqiu Period more than 2,500 years ago, the most powerful State of that time, Zibo has many historical places of interest, such as the History of Museum of the Qi Kingdom, Linzi Ancient Chariots Museum, the Funerary Horse Pit, former residence of , Memorial Temple of Master Jiang, etc. Zibo has 13 AAAA-graded tourism areas, 21 AAA-graded tourism areas and 15 AA-graded areas, attracting 45,088,300 domestic and overseas visitors in 2015. During the 13th Five-year Plan, Zibo will strive to establish itself into a cultural-tourism destination city, with 2-3 backbone scenic spots each accepting over 500,000 tourists and creating comprehensive revenue of more than 50 million Yuan annually and 10 backbone scenic spots each accepting over 300,000 tourists and creating comprehensive revenue of more than 10 million Yuan annually. Zibo is endeavoring to upgrade its Zhoucun Historical Commercial Street and Yuanshan Scenic Spot into national 5A tourism areas. Zibo Investment Guide

05 Investment in Zibo ·Foreign direct investment ·Zibo National New & High- tech Industrial Park and other industrial parks In recent years, Zibo has seen the skyrocketing of its Foreign Direct Investment (FDI). By the end of 2015, Zibo had attracted cumulative total Foreign Direct Investment (FDI) of US$ 16.9 billion. Zibo Investment Guide 23

Foreign direct investment

“We ran into the problem of lack of construction land when we first came here for investment. After realizing the situation, the municipal government extended great help by approving construction land for us, through which our production was guaranteed. Besides, Zibo rendered substantial spiritual support and encouragement to such hi-tech enterprises like us. The mayor has visited our company for a number of times, and organized & coordinated resources from multiple sides for resolutions of the enterprises, which indeed strengthens our confidence in investment in Zibo.” ---- General Manager of Citizen (Zibo) Precision Machinery Co., Ltd.

The foreign direct investment is becoming increasingly important for the economic development of Zibo. Foreign investors are satisfied with the business environment of Zibo, and have great confidence in investment in Zibo.

In 2015, Zibo ratified 29 foreign-invested enterprises, with an increase of US$ 255.29 million contractual foreign investment and US$ 587.9 million foreign direct investment, which saw an 8.03 percent increase compared with last year. As of the end of 2015, Zibo had attracted 27 Fortune 500 companies and industrially leading enterprises investing 36 projects in Zibo, including Eastman, Air Products and Chemicals, Unifrax and KOHLER of America, Linde Group, Siemens, BOSCH, B.Braun and Metro Group of Germany, Tesco of Britain, BUCHER of Switzerland, Asahi Glass, Mitsui and Citizen of Japan, China Resources and Everbright Group of Hong Kong, etc. Key industries utilizing foreign investment include: new materials, new energy, energy conservation & environment protection, electronic information & software, robot & high-end equipment manufacturing, biology & medicine, old-age health care, finance & insurance, cultural tourism, modern logistics and modern agriculture, etc. As of the end of 2015, Zibo had cumulatively introduced US$ 7.9 billion of foreign investment, of which US$ 5.8 billion belongs to manufacturing industry, accounting for 73 percent; there're 2060 foreign-invested enterprises in CAGR: 6.93 percent manufacturing industry. 70,000 58,790 60,000 52,666 54,419 Foreign investment source 50,025 50,000 44,971 40,000 The largest source of foreign investment is Hong 30,000 20,000 Kong, accounting for 49.9 percent of cumulative total 10,000 foreign direct investment as of the end of 2015. The 0 U.S., Europe, Taiwan and Korea are also major sources, 2011 2012 2013 2014 2015 together accounting for 24.8 percent. Amount of foreign direct investment (US$ 10,000)

Quantity and Average Investment of Existing Foreign-invested Industrial Enterprises in Zibo (As of March 2016)

Industry Qty. of FIEs Average investment (US$ 10,000) Chemical materials and manufacturing 39 2,849 27 1,821 Medical manufacturing 12 1,393 General equipment manufacturing 15 1,375 Special equipment manufacturing 21 905 Electronic equipment manufacturing 11 794 Non-metallic mineral production 77 746 Zibo Investment Guide

Zibo National New & High-tech Industrial Park (ZNNHIP) and other industrial parks

Besides the national level new & high-tech industrial park, there are also ten provincial level economic industrial parks such as the provincial level Qilu Chemical Industrial Park, Wenchang Lake Tourist Resort, Zibo Economic Development Zone and Dongyue Fluoro- silicone Materials Industrial Park, etc.

Zibo National New & High-tech Industrial Park (ZNNHIP)

Zibo National New & High-tech Industrial Park (ZNNHIP) was approved for establishment by the State Council in November 1992 and the construction was started in 1993. It is one of the 129 national level new & high-tech industrial parks in China. ZNNHIP passed ISO14001 environmental system quality certification in 2005 and the current administration area is approximately 121 square kilometres. ZNNHIP persistently promotes the construction of innovative platform and at present, 16 national level research centres, 22 academician workstations, 97 provincial level research centres, 155 municipal level research centres and 28 industrial technology innovation unions have been established. ZNNHIP cooperates with colleges and universities and establishes 7 research institutes such as “Tsinghua University National New & Hi-tech Industrial Park MEMS Institute” and more than 140 enterprises in the industrial park realise 275 industry-university-research cooperation projects with 116 colleges and universities; ZNNHIP is identified by the Ministry of Science and Technology as five national industrial bases including the “National New Materials Industrial Base”, “China Torch Program Bioengineering and Pharmaceutical Industrial Base”, “China Torch Program Advanced Ceramics Industrial Base”, “China Torch Plan Functional Glass Specialty Industrial Base” and “China Torch Program Pump Industry Specialty Industrial Base”. As the important impetus of economic growth of Zibo City and major concentrating area of new & high-tech industry, the economy of ZNNHIP has kept the average annual growth rate of approximately 30 percent in recent years. In 2015, ZNNHIP completed GDP in the amount of RMB 21.35 billion Yuan, increased by 8.6 percent; the added value of the industries above the designated size increased by 10.6 percent; the main business income was RMB 58.42 billion Yuan, increased by 6 percent; the profits and taxes were RMB 5.27 billion Yuan, increased by 5.3 percent; the fixed assets investment was RMB 19.3 billion Yuan, increased by 14.7 percent; and the local financial revenue was RMB 3.29 billion Yuan, increased by 13.76 percent, wherein, the tax revenue was RMB 2.545 billion Yuan, increased by 13.3 percent and accounted for 77.4 percent. ZNNHIP puts forth efforts to create the “5+1” industrial cluster development pattern, i.e. prioritizing the development of new materials, new energies and new environmental protection, pharmaceutical health, electronic information, advanced equipment manufacturing industry and modern service industry. With the advantages of four national level industrial bases, ZNNHIP is based on the prioritizing “5+1” industries and plans and constructs the “Five Parks and One Base” (electronic information, new energies and new environmental protection, security technology, remote logistics, pharmaceutical industrial parks and new materials pilot plant test base) to a high level. ZNNHIP takes efforts to cultivate “Three Top 30” enterprises, focuses on “5+1” industrial cluster, integrates referential resources such as policies, financial and material capabilities and production factors, concentrates to promote the development of 30 key industrial enterprises, 30 key service enterprises and 30 high-growth science and technology enterprises and thus drives the promotion of the industrial overall qualities and competitiveness. Zibo Investment Guide 25

Zibo Economic Development Zone

The predecessor of Zibo Economic Development Zone was Zibo Export-oriented Industry Manufacturing Area established in 1992. In order to create the new accreting plate, in 2015, the Municipal Party Committee and Municipal Government decided to expand the zone to Beijiao Town, Zhoucun District and the newly increased area was 56.23 square kilometres, among which, the starting zone covered an area of 26.3 square kilometres. Currently, there are 204 enterprises above the designated size and the industrial enterprises above the designated size realised the sales revenue in the amount of RMB 47.84 billion Yuan. Four specialty industries including the high-end equipment manufacturing, energy-efficient lighting, new material industry and modern service industry have been initially shaped and enterprises such as SHINVA MEDICAL, Sanjin Glass Machinery and Komee Photoelectric have entered the zone. Based on the planning with a high starting point, the zone will form the industrial space layout of “One Area and Three Parks”: Xiaofu River Coastwise CBD Area, Health Industrial Park, High-end Equipment Industrial Park and Culture Creativity and Electronic Commerce Park. The zone will be created into a new engine for the transformation and upgrading of the whole city, the sample plate of industry-city integration and the demonstration area of innovation development and it will take five to ten years to establish into a national level development zone. The regional advantages are obvious. This zone is located at the main urban area of Zibo, respectively 70 kilometres and 260 kilometres away from Ji’nan and Qingdao and adjacent to Zibo Station of Ji’nan-Qingdao High-speed Rail which is about to construct. Both Binzhou-Laiwu Expressway and Qingdao- Expressway go across the administration area with the entrance and exit and 309 National Highway and 205 National Highway collect in this area. The land and basic conditions here are superior. The planned construction land area is 31,000 mu. This zone is flat and the developable lands are concentrated together, so the project carrying capacity is strong. The natural environment and business environment in this zone are excellent. With the green area of 19.34 square kilometres, the forest coverage rate reaches 34.4 percent. Zibo Economic Development Investment Co., Ltd. is established with the registered capital of RMB 200 Million Yuan and the company has reached agreements with 9 banks and obtained the line of credit in the amount of RMB 15 billion Yuan. The company obtained the loan issued by the provincial Agricultural Bank of China in the amount of RMB 3.5 billion Yuan. With the project outsourcing and commission system and working manner of “One Policy for One Enterprise and One Meeting for One Matter”, the zone provides customized services for enterprises. The Economic Development Zone is created into an economic transformation and upgrading demonstration area of the whole city with concentrated innovative resources, distinctive industrial features, advantageous investment environment and superior development vitality and charms. Zibo Investment Guide

Wenchang Lake Tourist Resort

Wenchang Lake Provincial Level Tourist Resort is located at southwest of the central urban area of Zibo City and surrounding area of Zhangdian District, Zichuan District and Zhoucun District. The functional orientation of Wenchang Lake Area is to promote the construction of tourist products and supporting service system pursuant to the establishment standards of tourist resort and establish a famous tourist resort integrating culture tourism, leisure holidays, physical fitness and health care and endowment. This resort promotes emerging industries such as the culture creativity, electronic information and commercial exhibition to concentrate to Wenchang Lake and establishes an entrepreneurship technology “smart city” integrating multiple functions including the enterprise incubation, electronic commerce, design originality, leisure and entertainment.

Zibo New Urban District

Zibo New Urban District, in the west of Zhangdian District and central urban area of Zibo City, is starting from Shiji Road in the east and ending at Binzhou-Laiwu Expressway in the west, starting from 309 National Highway in the south and ending at Ji’nan-Qingdao Expressway in the north. With a total area of 52 square kilometres, this district is the new political, cultural, sport, educational and financial centre of Zibo City and it is the dominant functional area accelerating the development of Zibo City and driving the industrial transformation and upgrading. In recent years and next few years, the New Urban District will carry out constructions and investment promotion centreed five industries including the financial service industry, high-end service industry, information industry, cultural industry and tourist industry pursuant to the new orientation of industry-city integration. Zibo Investment Guide 27

Zhangdian Economic Development Zone

Zhangdian Economic Development Zone was approved as provincial economic development zone by National Development and Reform Commission and Shandong Provincial Government in March 2006 and it has planning area of 10.56 square kilometres. In 2015, the development zone realised RMB 55.977 billion Yuan of total industrial output value above designated size, RMB 47.544 billion Yuan of main business income and RMB 6.807 billion Yuan of profits and taxes. Leading industry of Zhangdian Economic Development Zone is oriented to machinery manufacturing and new material industries and the development zone strives to build a modern manufacturing industry gathering area while vigorously developing new energy industry.

Zichuan Economic Development Zone

Zichuan Economic Development Zone is a provincial economic development zone established in 1992 under the approval of the provincial government with an area under administration of 53.61 square kilometres. In 2015, the development zone realised RMB 158.99 billion Yuan of total industrial output value, RMB 153.46 billion Yuan of sales revenue and RMB 17.99 billion Yuan of profits and taxes. At present, the zone has more than 800 enterprises, 2 colleges and universities, has introduced 5 Fortune 500 enterprises and has 6 post-doctoral scientific research stations, 28 provincial research and development centres, 2 national research and development centres, 2 publicly listed companies and 10 OTC enterprises, gradually forming four industrial clusters, including high-end equipment manufacturing, new energy, new materials and new medicine. Zibo Investment Guide

Boshan Economic Development Zone

Founded in 1992, Boshan Economic Development Zone has an area under administration of 68.29 square kilometres. In recent years, the development zone has focused on accelerating the development of three leading industries including electromechanical industry, pump industry and new materials. It has also planned three concentrated industrial planning areas, including electromechanical industrial park, pump industrial park and new materials industrial park, preliminarily forming electromechanical, pump and new materials industrial clusters. The zone has more than 2600 enterprises, including 342 industrial enterprises above designated size, and enjoys such industrial advantages like electromechanical, pump, new materials, chemical fiber, textile, and etc. Boshan Economic Development Zone has 7 publicly listed companies and 12 OTC enterprises, 6 academician workstations, 78 new high-tech enterprises, 23 research and development organizations above Gardner Denver Nash Machinery Ltd. Zibo Asahi Glass Alumina Materials Co., Ltd. provincial level and 13 Chinese Well- known Trademarks and Chinese Brand-name Products. In 2015, the development zone realised RMB 48.7 billion Yuan of total industrial output value, RMB 43.2 billion Yuan of sales revenue and RMB 5.6 billion Yuan of Processing Centre of Shandong Shandong Douhe Plant Photos Huacheng Group profits and taxes.

Zhoucun Economic Development Zone

Zhoucun Economic Development Zone is a provincial economic development zone established in 1992 under the approval of Government of Shandong Province with the total planning area of 35.76 square kilometres. At present, the zone has 619 enterprises, 2 post-doctoral scientific research stations, 3 academician workstations, 2 national enterprise technical centres, 10 provincial engineering and technological research centres and 3 provincial enterprise technical centres. Hairun Silk In 2015, the development zone realised RMB 54.834 billion Yuan of total industrial output value, RMB 53.603 billion Yuan of sales revenue and RMB 5.341 billion Yuan of profits and taxes. Zhoucun Economic Development Zone takes the development of advanced processing and manufacturing as the focus so as to form three characteristic industries, including high-end equipment manufacturing, textile and garment and new environmentally friendly materials. BUCHER Group (Switzerland), CITIZEN Group (Japan), IBG Group (Germany), Tianhong (Hong Kong) and CITIZEN (Zibo) Precision Machinery Co., Ltd. other international transnational companies have successively established solely foreign-owned enterprises in the zone; Wal-Mart of America, BASF of Germany and other world Fortune 500 enterprises have established friendly trade cooperation relationships with enterprises in the zone respectively. Administrative Service Center Square Zhoucun Passenger Transportation Centre Zibo Investment Guide 29

Linzi Economic Development Zone

Linzi Economic Development Zone is the provincial Economic Development Zone set up by the approval of Shandong Provincial Government in 1992 with 20 square kilometres of the planning area. The Economic Development Zone achieved the RMB 58.351 billion Yuan of gross industrial output value, RMB 56.543 billion Yuan of sales revenues and RMB 919 Million Yuan of profits and taxes in 2015. Linzi Economic Development Zone is planned to have five major functional areas: the north comprehensive zone, the central basic industry zone, the central machinery processing zone, south logistics storage zone and south comprehensive service zone and it has formed the comprehensive industrial system led by the steel industry and integrated with mining, metallurgy, equipment manufacturing, warehouse logistics, high and new technologies and fine chemical engineering.

Huantai Economic Development Zone

Founded in July 1992, Huantai Economic Development Zone covers an area of 137 square kilometres. In 2015, the industrial enterprises above designated size in this Economic Development Zone realised RMB 120 billion Yuan of sales revenue, RMB 17 billion Yuan of fixed-asset investment, RMB 2.5 billion Yuan of the income tax and US$960 Million of total foreign trade value. Three major characteristic industrial clusters---fine chemical engineering, high-end manufacturing and modern logistics have begun to take shape. By the end of 2015, the Zone has 1 listed company, 5 OTC companies and 58 enterprises introduced from the outside of the county and the country. A batch of famous enterprises has settled down here, such as U.S. Kohler Company and German Refratechnik Company, promoting the steady growth of economic and social benefits.

Zibo Kohler Co., Ltd. Zibo Investment Guide

Gaoqing Economic Development Zone

Founded in December 2002, Gaoqing Economic Development Zone has the total planning area of 53 square kilometres and currently, it has completed the building of 16.47 square kilometres. The Economic Development Zone realised RMB 23.573 billion Yuan of the total above-scale industrial value and RMB 1.21 billion Yuan of tax revenues in 2015. It focuses on fostering and developing four major industries, namely health and bio-pharmaceuticals, new energy and advanced equipment manufacturing, high-end textile and garment and fluorine-silicone new materials. At present, 106 enterprises have invested and developed the business in this Economic Development Zone, 60 of which are the industrial enterprises above designated size.

Yiyuan Economic Development Zone

Yiyuan Economic Development Zone is the provincial Economic Development Zone set up by the approval of Shandong Provincial Government in 2006 and focuses on establishing two industrial bases—pharmaceutical & healthcare products and new materials, of which the pharmaceutical & healthcare industrial base is established to become the bioengineering and pharmaceutical industrial base of Shandong Peninsula Blue Economy and Ocean Linkage Demonstration Area. The new- material industrial base has formed the industrial sectors led by the energy-saving and thermal insulation materials and high polymer materials to create the regional industrial heights of energy-saving and thermal insulation materials and high polymer materials. By the end of 2015, this Zone has 266 enterprises, 6 post-doctoral research stations, 5 academician workstations, 32 high and new technology enterprises and 4 listed companies. The enterprises in this Zone realised RMB 37.2 billion Yuan of the total industrial output value, RMB 34.1 billion Yuan of sales revenues and RMB 6.9 billion Yuan of profits and taxes in 2015.

Luyang Company REYOUNG Pharmaceutical Production Workshop Zibo Investment Guide 31

Qilu Chemical Industrial Park

As an important cooperation project of Shandong Provincial Government and Sinopec, Qilu Chemical Industrial Park is the third professional chemical industrial park established by the approval of the State after Shanghai Chemical Industrial Zone and Chemical Industrial Zone. It covers the planning area of 60.71 square kilometres, 22 square kilometres of which is occupied by Qilu Petrochemical Company, and the new planning developed area covers 38.71 square kilometres, mainly divided into Qilu Petrochemical Plant, public service area, fine chemical engineering zone, plastics processing and export processing zone, logistics storage zone, Nanwang fine chemical engineering zone, reserved development zone and Jinshan Industrial Park. Since the establishment in September 2002, Qilu Chemical Industrial Park has attracted investment by many large enterprises from both at home and abroad including Eastman and INTCO of America, BOC of Britain, Perstorp of Sweden and Qixiang Tengda. This Park has had 224 enterprises above designated size and realised RMB 157.3 billion Yuan of the total industrial output value and RMB 22.9 billion Yuan of income taxes in 2015.

Shandong Huantai Dongyue Fluoro-silicone Material Industrial Park

Shandong Huantai Dongyue Fluoro-silicone Material Industrial Park is the professional chemical park set up by the approval of NDRC and the provincial government in August 2006 with 5.65 square kilometres of the planning area and 23 enterprises above designated size. As the biggest fluoro-silicone material production base in Asia, Dongyue Industrial Park has the proprietary intellectual property rights in the field of new environmental protection, new materials and new energy. The leading products are the green environmental protection refrigerant and the production scale, technology and market sales of PTFE high-polymer materials rank first in the world so its exported products account for more than 40 percent of the total national exports in the same industry as the primary supplier of the well-known enterprises at home and abroad including Dupont, Daikin, Mitsubishi, Haier, Hisense, Gree, Midea, Changhong and Chunlan. Currently, the Park has established the high and new technology industrial chain and industrial clusters from mining of the fluorine ore to anhydrous hydrogen fluoride—the basic materials of the fluorine chemistry, from methane chloride to the green refrigerants, from fluoro-alkyl silanes to organosilicone, then to fluorine-containing high-polymer materials and its deep processing and even to the cutting- edge technology—hexafluoropropylene, VDF, TFE and perfluoro ion-exchange resin and ionic membrane. Zibo Investment Guide

06 Service Institutions

Zibo government offers a range of business approval services to increase investors’ efficiency. Zibo Administrative Service Centre was founded in 2003 with the aim of providing “one-stop” services to foreign investors. Zibo Investment Guide 33

Service institutions

Bureau of Commerce of Zibo City Bureau of Commerce of Zibo City Bureau of Commerce of Zhangdian

Investment Promotion Office Foreign Investment Administration Office District

Tel：+86 (533) 3190775 Tel：+86 (533) 3190778 Tel：+86（533）2867586

Fax: +86 (533) 3190856 Fax: +86 (533) 3190779 Fax: +86（533）2867586

Website：www.zbboftec.gov.cn E-mail：[email protected] E-mail：[email protected]

E-mail：[email protected]

Bureau of Commerce of Zichuan Bureau of Commerce of Boshan Bureau of Commerce of Zhoucun

District District District

Tel：+86（533）5282262 Tel：+86（533）4180173 Tel：+86（533）6195131

Fax: +86（533）5266030 Fax: +86（533）4188882 Fax:+86（533）6195131

E-mail：[email protected] E-mail：[email protected] E-mail：[email protected]

Bureau of Commerce of Linzi Bureau of Commerce of Huantai Bureau of Commerce of Gaoqing

District County County

Tel：+86（533）7210266 Tel：+86（533）8180684 Tel：+86（533）6967198

Fax: +86（533）7222111 Fax: +86（533）8168510 Fax: +86（533）6967198

E-mail：[email protected] E-mail：[email protected] E-mail：[email protected]

Bureau of Commerce of Yiyuan Zibo National New & High-tech Zibo Economic Development Zone

County Industrial Park Industrial Development Promotion

Tel：+86（533）3241930 Investment Promotion Bureau Bureau II

Fax: +86（533）3241930 Tel：+86（533）3583617 Tel：+86（533）2827699

E-mail：[email protected] Fax: +86（533）3588778 Fax: +86（533）2828780

Website: http://www.snd.gov.cn/zsj/ E-mail：[email protected]

E-mail：[email protected]

Wenchang Lake Tourist Resort

Economic Development Bureau

Tel：+86（533）6030035

Fax: +86（533）6030035

E-mail：[email protected] Zibo Investment Guide

07 Name Lists

of Main At the end of 2015, Zibo had a total of 2,910 large-scale Companies enterprises, with a 6.8 percent increase of annual industrial added value compared with the previous year. The annual prime operating revenue of large-scale industries was 1146.25 billion Yuan, a 1.7 percent increase compared with the previous year; the profit taxes were 127.81 billion Yuan (an 8.5 percent increase) and the profit was 72.83 billion Yuan (a 6.6 percent increase). Zibo has formed several main industries like chemistry and medicine, electronic information, new material, new energy, automobile, machinery, metallurgy, light industry and textile, etc. Zibo Investment Guide 35

Name Lists of main companies of Zibo

No. Logo Company Name Industry Type

1 Shandong Qilu Petrochemical Co. of SINOPEC Chemical Industry

2 Qilu Eastman Specialty Chemicals Co., Ltd. Chemical Industry

3 Shandong Qilong Chemical Industry Co., Ltd. Chemical Industry

4 Shandong Luhuahongjin Chemical Industry Co., Ltd. Chemical Industry

5 Shandong Doguide Group Co., Ltd. Chemical Industry

6 Shandong Hongxin Chemical Co., Ltd. Chemical Industry

7 Shandong Qilu Huaxin Industry Co., Ltd. Chemical Industry

8 Shandong Heda Co., Ltd. Chemical Industry

9 Zibo Continent Carbon Co., Ltd. Chemical Industry

10 Zibo Xinglu Chemical Co., Ltd. Chemical Industry

11 Zibo Qixiangtengda Chemical Co., Ltd. Chemical Industry

12 Zibo Qilu BOC Air Co., Ltd. Chemical Industry

13 Shandong Qiwangda Group Co., Ltd. Chemical Industry

14 Zibo Nuoao Chemical Co., Ltd. Chemical Industry

15 Shandong Group Co., Ltd. Chemical Industry

16 Shandong Jincheng Petrochemical Group Co., Ltd. Chemical Industry

17 Shandong Dongyue Group Chemical Industry

18 Shandong Wonfull Petrochemical Co., Ltd. Chemical Industry

19 Zibo Dexin Lianbang Chemical Industry Co., Ltd. Chemical Industry

20 Shandong Bofeng Lizhong Chemical Co., Ltd. Chemical Industry

21 Shandong Haili Chemical Industry Co., Ltd. Chemical Industry

22 Shandong Licun Biotechnology Co., Ltd. Chemical Industry Zibo Investment Guide

No. Logo Company Name Industry Type

23 Gaoqing Hongyuan Petrochemical Co., Ltd. Chemical Industry

24 Shandong Liaherd Chemical Industry Co., Ltd. Chemical Industry

25 Shandong Ruifeng Chemical Co., Ltd. Chemical Industry

26 Shandong Bluestar Dongda Chemical Co., Ltd. Chemical Industry

27 Shandong Qilu Petrochemical Kaitai Industry Co., Ltd. Chemical Industry

28 Shandong Blue Sail Plastic & Rubber Co., Ltd. Chemical Industry

29 Zibo Hongye Shangqin Plastic & Rubber Co., Ltd. Chemical Industry

30 Air Products (Zibo) Pharmaceutical Co., Ltd. Chemical Industry

31 Shandong Qidu Pharmaceutical Co., Ltd. Pharmaceutical Industry

32 Reyoung Pharmaceutical Co., Ltd. Pharmaceutical Industry

33 Shandong Xinhua Pharmaceutical Co., Ltd. Pharmaceutical Industry

34 Royal DSM (Zibo) Pharmaceutical Co., Ltd. Pharmaceutical Industry

35 Shandong Jincheng Pharmaceutical Chemicals Co., Ltd. Chemical & Pharmaceutical Industry 36 Shandong Pharmaceutical Glass Co., Ltd. Medical Package Material Industry 37 Shandong Qiaopai Group Co., Ltd. Medical Equipment Industry

38 Shinva Medical Instrument Co., Ltd. Medical Equipment Industry

39 Shandong Zibo Shanchuan Medical Instrument Co., Ltd. Medical Equipment Industry

40 Shandong Tangjun Ouling Automobile Manufacture Co., Ltd. Medical Equipment Industry

41 Bosch Climate Technology (Shandong) Co., Ltd. Machinery Manufacturing Industry 42 Shandong Shengli Steel Pipe Co., Ltd. Machinery Manufacturing Industry 43 Zibo Diesel Engine Head Office Machinery Manufacturing Industry 44 Citizen (Zibo) Precision Machinery Co., Ltd. Machinery Manufacturing Industry Zibo Investment Guide 37

No. Logo Company Name Industry Type

45 Zibo Hongyang Petroleum Equipment Co., Ltd. Machinery Manufacturing Industry 46 Shandong Leopard Spring Co., Ltd. Machinery Manufacturing Industry 47 Shandong Xianhe Yuexin Mechanical & Electrical Co., Machinery Manufacturing Ltd. Industry 48 Gardner Denver Nash Machinery Co., Ltd. Machinery Manufacturing Industry 49 Zibo Huacheng Pump Co., Ltd. Machinery Manufacturing Industry 50 Zibo Hongma Engineering Machinery Co., Ltd. Machinery Manufacturing Industry 51 Shandong Sanjin Glass Machinery Co., Ltd. Machinery Manufacturing Industry 52 Zhangdian Iron & Steel Works Machinery Manufacturing Industry 53 Shandong Zibo Vermicular Cast Iron Co., Ltd. Machinery Manufacturing Industry 54 Shandong Borun Industrial Technology Co., Ltd. Machinery Manufacturing Industry 55 Ebara Boshan Pumps Co., Ltd. Machinery Manufacturing Industry 56 Shandong Yanshan Pumps Co., Ltd. Machinery Manufacturing Industry 57 Shandong Boshan Pump Science & Technology Co., Ltd. Machinery Manufacturing Industry 58 Boshan Vacuum Equipment Industry Co., Ltd. Machinery Manufacturing Industry 59 Shandong Shanbo Electric Machine Group Co., Ltd. Machinery Manufacturing Industry 60 Luthai Textile Co., Ltd. Textile Industry

61 Zibo Silverman Textile Co., Ltd. Textile Industry

62 Zibo Lanyan Group Co., Ltd. Textile Industry

63 Shandong Woyuan New Fabric Co., Ltd. Textile Industry

64 Zibo Kohler Co., Ltd. Building Material Industry

65 Zibo Sunnsy Group Co., Ltd. Building Material Industry

66 Shandong Energy Group Co., Ltd. Building Material Industry Zibo Investment Guide

No. Logo Company Name Industry Type

67 Shandong Group Co., Ltd. Building Material Industry

68 Shandong Pipeline Engineering Co., Ltd. Building Material Industry

69 Zibo Asahi Glass Alumina Materials Co., Ltd. Refractory Material Industry 70 Shandong Refractory Material Co., Ltd. Refractory Material Industry 71 Shandong Luyang Co., Ltd. Refractory Material Industry 72 Zibo Refra Technic Co., Ltd. Refractory Material Industry 73 Wanjie Group Comprehensive Industry

74 Shandong Wanxin Investment Co., Ltd. Comprehensive Industry

75 Shandong Fengyang Group Co., Ltd. Comprehensive Industry

76 Shandong Newstar Group Comprehensive Industry

77 Shandong Amotech Electronic Co., Ltd. Electronic Industry

78 China National Materials Group Corporation Ltd. Glass Industry

79 Zibo Jinjing Energy Saving Glass Co., Ltd. Glass Industry

80 Shandong Qifeng Special Paper Co., Ltd. Paper Making Industry

81 Shandong Guihe Xianxing Paper Co., Ltd. Paper Making Industry

82 Shandong Bohui Group Co., Ltd. Paper Making Industry

83 Zibo Dahuanjiu Polygrace Leather Co., Ltd. Leather Industry

84 Shandong Deyuan Leather Co., Ltd. Leather Industry

85 Shandong Bandaojing Co., Ltd. Food Industry

86 Shandong Huashi Beer Co., Ltd. Food Industry

87 Cargill Biological Engineering Co., Ltd. Food Additives Industry

88 CHALCO Shandong Branch Metallurgy Industry Zibo Investment Guide 39

No. Logo Company Name Industry Type

89 Shandong Zibo Fushan Group Co., Ltd. Metallurgy Industry

90 Zibo Denuo Aluminum Science Co., Ltd. Metallurgy Industry

91 Nanjinzhao Group Metallurgy Industry

92 Zibo Jiahua New Material Resource Co., Ltd. Commerce & Retail Industry

93 Zibo Commercial Building Commerce & Retail Industry

94 Shandong Dongtai Group Co., Ltd. Electrical Machines and Equipment 95 Zibo Siemens Switch Socket Co., Ltd. Electrical Machine Industry

96 Zibo Taiguang Electric Equipment Factory Light Industry

97 Shandong Dahong Glaze Co., Ltd. Light Industry

98 Zibo Intrue Light Industrial Products Co., Ltd. Light Industry

99 Shandong Excel Light Industrial Products Co., Ltd. New Material Industry

100 Sinoma New-hi Material Co., Ltd. New Material Industry

101 Zibo Sanlin New Material Co., Ltd. New Material Industry

102 Shandong Heritage Highway Materials Technologies, New Material Industry LLC. 103 Shandong Huaan New Material Co., Ltd. New Material Industry

104 Zibo Guoli New Power Source Technology Co., Ltd. New Resource Industry

105 Zibo Huarun Gas Co., Ltd. Natural Gas Industry Zibo Investment Guide

Investment promotion staff of Zibo

Wang Junjie Zhang Xiuwei Tel：+86（533）3190775 Tel：+86（533）3190775

E-mail：[email protected] E-mail：[email protected]

Working language: English & Mandarin Working language: English & Mandarin

Zhou Hui Zhu Yujian Tel：+86（533）3167219 Tel：+86（533）3191381 E-mail：[email protected] E-mail：[email protected] Working language: English & Mandarin Working language: English & Mandarin

(Consultation about foreign investment policies)

Wang Ying Li Zhongqiu Tel：+86（533）3190776 Tel：+86（533）3190861

E-mail：[email protected] E-mail：[email protected]

Working language: Japanese & Mandarin Working language: Korean & Mandarin

Ding Shaohua Wang Ke Tel：+86（533）3190776 Tel：+86（533）3190829

E-mail：[email protected] E-mail：[email protected]

Working language: German & Mandarin Working language: Russian, Ukrainian & Mandarin

Charlie Liu Investment Promotion Representative of Zibo

Municipal Government in North America

Tel: +1 (416) 887-3298

E-mail: [email protected]

Working language: English, Mandarin &

Editorial Committee of Zibo Investment Guide Director Qi Xiaofu Deputy Director Mao Zhongqiang

Editor-in-chief Wang Junjie Deputy Chief Editors Zhang Xiuwei, Wang Ying, Ding Shaohua Translation Agency Zibo Qiushi Translation & Interpretation Service Co., Ltd. Publication Date April 2016