Major Requirements for Preparing a Feasibility Study Report
(reference format)
The aim of a feasibility analysis is to conduct a systematic
all-in study and proof of the necessity and viability for
kicking off a project in areas ranging from technology, economy,
market, finance, resources to environmental protection and
safety. Given relevant stipulations of the State and the particularities
of the specific city, a feasibility report should include
the following items:
1. The name, nature, address, and tenure of operation of
the prospective enterprise.
2. The names of the investment parties, country (region)
of registration, legal address, the name, title and country
of the legal person, and a profile of the overseas investor
(including capital credibility and operation prospects)
3. Scope and scale of operation, which include specific product
name, size of production, marketing channels and ratio of
domestic and overseas sales. Be concrete and specific on the
scope and scale which should be compatible with the registered
capital, operation site, major equipment and technical competence
of the company. Be exact and standard in wording.
4. Market projections. It covers product properties, market
demands both at home and abroad and sales forecast.
5. Production know-how and equipment. Source of the know-how,
its suitability and reliability should be specified. The number
of the equipment, its model, scale, place of origin and degree
of depreciation are also to be spelled out. Where the investment
is made in kind or equipment, the items for evaluation and
the total value shall be listed. If the foreign party of a
joint-venture or a foreign-funded enterprise takes industry
ownership or exclusive technology as capital contribution,
make sure to state explicitly the validity, properties, practical
value, grounds and criteria, and total value of the said ownership
or technology as well as means of recovery and deduction.
6. Production craftsmanship.
7. The names, qualities and sources of major raw materials
and back-up parts.
8. Requirement list of land, factory premises, water, electricity,
installed capacity, fuel and means of transport (vehicles)
9. Corporate setup and staff training. This includes total
number of company staff, its make-up (foreign staff, managers,
technicians, and frontline workers) and a tentative training
program.
10. Environmental impact analysis and training scheme (including
waste water, residue and gas).
11. Investment calculations which cover sum total of investment,
registered capital, the proportions of capital contributions
of the parties concerned, the ratio, means, sources of capital
contribution and the capital input plan. The balance between
investment total and registered capital should be stated in
terms of domestic funding and overseas funding.
12. Comprehensive program and progress forecast of the project
in execution. The cycle and progress of prospecting, of equipment
purchasing and manufacturing, construction schedule, the month
and year of trial-testing and operation, and the projection
of production capacity tenure.
13. Cost and benefit analysis. Focus is on the composition
and calculation of production cost, analysis of major financial
indicators, analysis of balance sheet, investment payoff period,
and balance of foreign exchange.
14. Other items that merit elaboration.
15. Overall appraisal and conclusion, which relate to technical
and economic considerations as well as outstanding issues
and suggestions. |