Mr. Chun Te Wang (a Taiwanese national) and his family, directly or indirectly control 100% of the Group.

The total project cost is estimated at about $37.5 million. IFC is considering an A Loan of about $15 million to Shanghai Fangxin Metal Technologies Company Limited, a wholly owned foreign entity located in Shanghai, China. IFC’s equity investment of about $5 million will be made at the Holdco.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.0
Equity	5.0

* These investment figures are indicative

The majority of Fangxin’s operations are located approximately 30 km from the city of Shanghai, in the Fengxian District. The company also operates a facility in Shenzhen. The facilities were built on barren land. Fangxin also has an office in Hong Kong. It owns all the buildings on its sites in Mainland China.

This is a category B project according to IFC’s Environmental and Social Review Procedure. Environmental, social, health and safety issues which may be associated with this type of project, and which were reviewed during appraisal, included:

- site selection and acquisition;
- emissions to air from manufacturing process, boiler and/or generator;
- use, treatment and discharge standards of process and waste water;
- resource consumption and recycling;
- management of waste and hazardous materials;
- environmental and health and safety management systems;
- occupational health issues (e.g. indoor air quality, noise);
- employee safety, emergency response and fire safety, training and benefits.
Location of environmental documents in locally affected community
The environmental documents for the project will be located in the Government Office mentioned below: Administration Committee of Synthetic Economic Development Zone Jinhui Town, Shanghai No. 1818, Jinqian Road, Jinhui Town, Fengxian Area, Shanghai Phone: +86-21- 57575205 The office is open to the public.

The project is expected to have a significant development impact as follows: It will help Fangxin become a larger and more efficient packager of C&T products. The success of Fangxin will rely on the industry experience, market access and good track record of its founder and the additional capital and operational and debt restructuring provided by this Project. Fangxin is the top quality producer in China and with the new capital should serve as a benchmark in the industry in China. The country will gain from the development of this industry as the major C&T companies turn increasingly to lower cost countries for packaging their products. IFC’s role in the proposed project could be valuable for on the following grounds: - Transfer of International Best Practices: Through the technical assistance initiative, IFC is helping the Group evolve from a family-owned business to a leading manufacturer in China with improved financial and strategic management and corporate governance practices, thereby enhancing its access to international financial markets and setting the stage for a future IPO. - Provide flexible corporate financing: As a young company, it has limited access to long-term funding from local banks for the proposed expansion. IFC will provide the required long term money to Fangxin that will allow it to acquire the scale its operation needs. Moreover, IFC’s involvement has helped attract additional financing from DEG and encouraged Fangxin’s existing local banks to provide longer tenors to the Group. - Supporting the development of a competitive local manufacturer: Fangxin has expressed the desire to work with international experts that provide both financial and strategic advice that will help the Group to grow from an emerging, family-run business to a global player with requisite skills to exploit its competitive advantages. In addition, IFC also provides the stamp of approval that global players like Maybelline, L’Oreal, Revlon are looking for when making critical outsourcing decisions. - Corporate Governance: IFC, through its proposed investment, will help to instill corporate governance that are necessary for Fangxin to evolve from a family business to a professionally managed company with appropriate organizational structure, internal processes and functions. This would also prepare Fangxin for its future IPO.