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Bioplastic StarchwareBioplastic StarchwareTMTM Project Project
From Agriculture to Chemical ProductFrom Agriculture to Chemical Product
Environmental FriendlyEnvironmental Friendly
Reduced Health RisksReduced Health Risks
John LinJohn Lin, , MD, MBAMD, MBA
E-mail: [email protected]: [email protected]
VGB Investment LLCVGB Investment LLCwww.vgbgroup.comwww.vgbgroup.com
OpportunityOpportunity
Cost of Transportation & Plastic WaresCost of Transportation & Plastic WaresGlobal Environmental Protection TrendGlobal Environmental Protection TrendAgricultural Products Feedstock SupplyAgricultural Products Feedstock SupplyGreen Organic Product for FoodGreen Organic Product for FoodExport Agricultural ProductsExport Agricultural ProductsManufacturing in USManufacturing in USTechnologies enhanced in USTechnologies enhanced in US
ProblemsProblems
Corn starch cost more in China than USCorn starch cost more in China than USAgriculture Products Export BarrierAgriculture Products Export BarrierWhite powder customer’s inspection timeWhite powder customer’s inspection timeHighly shipping cost from China to USHighly shipping cost from China to USThe longer lead-time 3-4 monthsThe longer lead-time 3-4 monthsLarge inventories and consumer’s needLarge inventories and consumer’s need
SolutionSolution
SolutionSolution
Competitive Competitive advantagesadvantages
Mature technology and market tested productsMature technology and market tested products Lower feedstock costs by using more cornstarchLower feedstock costs by using more cornstarch Reduce Costs by Lowering Shipping CostsReduce Costs by Lowering Shipping Costs Better Customer Service by Cutting Lead-timeBetter Customer Service by Cutting Lead-time More Favorable Sale because of “Made in USA” More Favorable Sale because of “Made in USA”
BrandingBranding Update innovative technologies in USAUpdate innovative technologies in USA Fits New US President’s “Green Energy” VisionFits New US President’s “Green Energy” Vision
Licensing TechnologiesLicensing Technologies
Integrated Technology into Manufacturing Equipment &
Formulation of Chemical & Corn Starch
US Patent 6,046,361, April 4, 2000, Polyorganofullerenes US Patent 6,020,523, February 1, 2000, Polyorganofullerenes
US Patent 6,380,434, April 30, 2002, Fullerene Derivatives EP 0919,520, 2006, PCT 981160609-1211
Using Nanotech to Develop Potato StarchWare for new lines
Financial AnalysisFinancial Analysis
The project requires $3 millions capital The project requires $3 millions capital $1.6 million is for fixed assets (equipment)$1.6 million is for fixed assets (equipment) $2.4 million is for working capital$2.4 million is for working capital The overall IRR is more than 30%The overall IRR is more than 30% Payback period is less than three yearsPayback period is less than three years Over $5 million sale expecting next year Over $5 million sale expecting next year
Financial ProjectionsFinancial Projections Year 0 1 2 3 4 5 6 7
Equipments & Setup (600,000)$
Working capital (400,000)$
Reveunes 2,047,020$ 3,884,237$ 4,190,047$ 4,363,341$ 4,528,254$ 4,858,082$ 4,858,082$
COGS 2,057,670$ 3,261,158$ 3,485,199$ 3,620,628$ 3,753,049$ 4,018,421$ 4,018,421$
EBITDA (10,650)$ 623,078$ 704,848$ 742,713$ 775,205$ 839,660$ 839,660$
EBIT (96,364)$ 537,364$ 619,133$ 656,998$ 689,491$ 753,946$ 753,946$
Taxes 33% (31,800)$ 145,530$ 204,314$ 216,809$ 227,532$ 248,802$ 248,802$
Net Profit (1,000,000)$ 21,150$ 477,548$ 500,534$ 525,903$ 547,673$ 590,858$ 990,858$
IRR 34%
OthersOthers It will create more It will create more
than 30 jobsthan 30 jobs Trade Mark: VGB, Trade Mark: VGB,
StarchwareStarchware
An opportunity to offer for the investorAn opportunity to offer for the investor
$10 million from institutional investor for $10 million from institutional investor for 51% equity51% equity
$5 million to acquire China manufacturing $5 million to acquire China manufacturing over 51% to control the entityover 51% to control the entity
Funding to build 10 production lines in USFunding to build 10 production lines in US $50,000 from Angle Investor for 1 unit (1%)$50,000 from Angle Investor for 1 unit (1%) Up to 40 units ($2,000,000) availableUp to 40 units ($2,000,000) available Deal window will be closed in 90 daysDeal window will be closed in 90 days
Management teamManagement team Mr. Honghe Li, Founder and President of Dongguang Mr. Honghe Li, Founder and President of Dongguang
Honghao Corp. He is a pioneer and leader in cornstarch Honghao Corp. He is a pioneer and leader in cornstarch based biodegradable plastic manufacturing in China. based biodegradable plastic manufacturing in China.
Mr. Zidong Xie has 30 years experience in international Mr. Zidong Xie has 30 years experience in international trade and marketingtrade and marketing
Mr. John Lin is a seasoned entrepreneur and the founder Mr. John Lin is a seasoned entrepreneur and the founder of several companies in Texas. He has 25 years of of several companies in Texas. He has 25 years of biotechnology research, international trade, startup biotechnology research, international trade, startup experience, as well as an MBA from University of experience, as well as an MBA from University of Houston. Houston.
Ms. Phyllis Penn, Vice President Mr. Allen Tanner, Director of Sale & Marketing Ms. Hua Tian, Project Manager
