Sector and Others

1 Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
RV, also known as the "home on the wheel, has the two functions of “room” and “car”, but its property is still a car. It is a mobile vehicle with household essential infrastructure. The household facilities are: bedding, stove, refrigerator, cabinet, sofa, dining table and chairs, toilet facilities, air conditioning, TV, stereo etc. furniture and electrical appliances. It can be divided into the driver's area, living area, bedroom area, the health area, the kitchen area, etc. The RV is a fashion product integrating “clothing, food, shelter, and transport”, and can realize “traveling in life, and living in traveling”.
1.1.2 Market Prospects
In Western developed countries, the development of special-purpose automotive market is relatively mature, and the percentage of special-purpose vehicle to ordinary trucks is over 70%. The products are related to all aspects of the national economy, and the degree of customization is relatively high, with obvious product characteristics.
Special-purpose vehicle industry has become an important part of China's automobile industry, and it occupies an important position in international private automotive industry. In the hardware aspect of production process, the gap between home and abroad is significantly reduced, and it has basically had the ability to participate in the international market competition. There is great improvement in product variety, grade, process equipment, independent research and development etc., and it has basically realized the transition from import to export. However, the development of special-purpose auto market in China is relatively slow, the degree of market segmentation is not enough, with the proportion of special-purpose vehicle to ordinary truck being about 40%. Product uniformity is big, the ability to meet individualized requirement is bad, especially for freight box car, the aspects in function, energy saving and environmental protection needs to be improved.
With the rapid increase in private car ownership, the number of self-travel tours and travel radius in China will increase significantly. According to statistics, the domestic private car travel time is 16 times / year, average mileage is 150 km. However, although self-drive tour solves the issue of mobility, it is unable to meet the individualized leisure needs of people due to unsustainable parking, inadequate service facilities. Thus, RV tour has increasingly become one of the fashionable leisure and travel methods.
The RV products of Zhongtian, Beifang, and the Great Wall etc. enterprises have been successfully exported to foreign markets. According to statistics, in 2010 the domestic RV was sold 900, sets an increase of 50 percent over the previous year, and domestic RV ownership was 4500-5000 sets. In 2015, the sale of each RV business had significant growth over the previous year.
At present, the major problem in China’s RV manufacturing industry is small industrial scale and not strong competition; supporting ability of domestic RV parts is weak, production process and quality stability is bad, product maturity is not enough; the brand credit of domestic RV production enterprises is not high, and the influence is not strong. After analyzing the domestic and foreign situation and features of RV production industry, combined with its own reality, Siping City decided to introduce the international advanced RV manufacturing process, open market with mature and high-quality products and quality after-sales service, seize the market share and create a larger space for the future development.
1.1.3 Technical Analysis
The standard accessories of RV are home supplies, camp supplies, antennas and electrical supplies, lighting, RV maintenance supplies, hardware items and tools, pipe joints accessories, awning accessories, major appliances and apparatus in RV, gas monitoring, supply and drainage system, RV matching supplies, prop hanging safety accessories, etc. It must also have overhead air conditioning, car refrigerator, awning, gas stove, electric stove, coffee maker, kettle, bathroom toilet equipment, water systems, lighting, vehicle dynamic systems (silent gasoline generator, diesel generator), RV-specific door, special window for putting the vehicle, combustible gas beeper, reverse image, cruise control system. Among them, the most important thing is to improve the water supply and drainage systems.
1.1.4 Advantageous Conditions and Necessity of Project Construction
1. Advantageous Conditions
(1)Policy conditions
The strategy of revitalizing the northeast old industrial base of China and the “12th Five-Year” plan for automobile and auto parts industry of Jilin Province provides policy support and development opportunity for Siping to develop special-purpose vehicle industry. At the same time, Jilin Provincial government approves the planning for revitalizing special-purpose vehicles proposed by Siping government. In the next step, it will further integrate local special-purpose enterprise resources, support the overall development of special-purpose vehicles, and construct the world-famous production, exhibition and sales base of special-purpose vehicle industry, which will be the biggest in North China.
(2)Technical support
At the beginning of founding the new China, many ministries of the nation have established in Siping harvesters, blowers, loaders, passenger buses and joint, grease and other enterprises. The first combine harvester in new China was born in Siping, and Baishan brand passenger bus spread across the country. After the reform and opening up, after years of development, the equipment manufacturing industry led by special-purpose vehicle, passenger bus, construction machinery, heat exchangers, automotive parts industry has developed rapidly. Among them, special-purpose vehicle industry is among the foremost industry that Siping will establish. Thus, it has good prospects for development and broad space for development.
(3)Human resource support
Siping collects all kinds of talents, such as scientific research, engineering, survey and design, management, consulting service etc. Jilin University, Changchun University of Science and Technology, Changchun University of Technology, Northeast Normal University, Jilin Normal University, Jilin Academy of Agricultural Sciences, Jilin Agricultural Engineering College, Siping Academy of Science and Technology provide talent guarantee for the development of Siping. A complete talent cultivation and growth system has been formed. Siping has obvious labor resources advantage, and the proportion of skilled workers possesses a relatively high level in northeast urban agglomeration. The labor force is in the dividend period, with relatively low labor cost and a large number of high-quality industrial workforce, which can meet various business needs.
(4)Geographical advantage
Siping is the core of the Northeast Asian region, and is the city with the shortest transport radius. Overlooking the 17.28 million square kilometers of Northeast Asia, the geometric center is in Siping, in the south, it directly reached the Round-Bohai Economic Rim, in the north, it reaches Russia, in the east, it borders the Korean Peninsula, and in the west, it reaches Mongolia. Siping is located at the junction of Liaoning, Jilin and Inner Mongolia three provinces, the center of northeast automotive industry belt, and is accessible to Heilongjiang, Jilin, Liaoning and Inner Mongolia. It is the nearest place and necessary path to coastal ports and the Round-Bohai Economic Rim from Jilin, Heilongjiang and eastern Inner Mongolia. The radiated land area is 1.24 million square kilometers, accounting for 12.9 percent of the country's total, with a population of 107 million. Siping has convenient transportation extending in all directions, with criss-crossed highway and rail network, it is an important node in the Ha-Da transport artery. Beijing-Harbin Railway, Harbin-Dalian high-speed railway, Harbin to Sanya Expressway, Changchun to Shenzhen Expressway, Daqing to Guangzhou Expressway, State Road 102 etc. intersect in Siping. Siping is adjacent to China’s FAW-Volkswagen Group, and is an intra-city of Changchun. It is more than one hour’s drive from Changchun Longjia Airport and Shenyang Xiantao International Airport.  
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Annual output of 3000 RVs; in late stage, annually produce 10,000 sets of high, middle and low-end A, B, C and D four self-operated RV, trailing-hanging RV, half trailing-hanging RV and special-purpose RV.
1.2.2 Construction Content
Construct production area, office and residential area, storage area, purchase production, inspection and test equipments.
1.3 Total Investment of the Project (see Table 1 for details)
Total investment of this project is RMB 500 million, including the construction investment of 400 million yuan and basic current funds of 100 million yuan, and no debt fund or interest in the construction period is taken into account.
Table 1: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan
No.    Expense Name    Amount of Investment    Proportion in the Total Amount of Investment%    Remarks      
1    Construction investment    40000    70          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    10000    20          
    Total investment of the project(1+2+3)    50000    100         
Note: “10 thousand yuan” in the table refers to RMB.
1.4 Forecast of Economic and Social Benefits
1.4.1 Major Indexes for Forecast of Economic Benefits (detailed in table 2)
Table 2    List of Major Indexes for Forecast of Economic Benefits
No.    Name     Unit     Index     Remarks       
1    Operating income    10,000 yuan/a    80000.00    Normal year      
2    Total profits     10,000 yuan /a    12300.00     Normal year      
3    All taxes     10,000 yuan /a    29500.00    Normal year      
4    Financial internal rate of return of all investments     %    21.5    After income tax      
5    Financial net present value(Ic=10%)    10,000 yuan    303263.00    After income tax      
6    Payoff period of all investments (after tax)    a    6.5    Including construction period of two years  (after tax)      
7    Investment profit rate    %    18.45    Normal year (after tax)     
Note: the “10,000 yuan” in the table is in RMB.
1.4.2 Analysis of Social Benefits
In the United States and Europe, RV has already become a part of people's leisure and tourism. But in mainland China, the production and sales of RV is still in the initial stage. The mass production of RV makes up for the inadequacy of Chinese auto industry in the area of RV. It will promote the production research of China in special-purpose area, promote the independent innovation of auto industry in China, and enhance international competition; it will enhance people’s awareness of RV traveling concept, break the conventional mode of travel, expand people's traveling method; and it will expand the idea for the Chinese tourism industry.
1.5 Cooperative Ways of the Project
Sole proprietorship, joint venture, or cooperation.
1.6 What to be Invested by Foreign Party
Fund. Other methods can be negotiated face to face.
1.7 Construction Site of the Project
Siping Special-Purpose Vehicle Industrial Park
1.8 The On-going Condition of Project
The planning and land pre-stage work and infrastructure supporting constructions of “nine passing and one leveling” has been finished.
2. Introduction to Project Undertaker
2.1 Basic Conditions
Name of project undertaker: Siping Special-Purpose Vehicle Co., Ltd.
Legal address: No.2659 of Yanchang Road, Tiedong District, Siping City
Legal representative: Li Yinhua
Corporate ownership form: limited liability
2.2 Overview of Project Undertaker
Siping Special-Purpose Vehicle Co., Ltd., formerly known as FAW Siping Special Auto Plant, was founded in 1956, and in 1964 it started to develop and produce special-purpose vehicles. Till now, it has had more than 40 years of production history. The company produces almost 200 types of special-purpose vehicles and the company is the leading enterprise among the special-purpose vehicle companies of China. In 1991, the company entered the area of national mechanical and electrical products export production enterprises with foreign operating right approved by the state in 1992. In the past 40 years, there have been more than 20 provincial and ministerial leaders to visit the company, and for hundreds of times, it won recognition and awards of the national, provincial, city and relevant departments. The original brand Jiefang (Xiongfeng) brand self-unloading vehicle, semi-trailer, tank truck, fuel truck and other products have been named “Famous Brand of Jilin Province”, and semi-trailer series products are named “China Top Brand” and “fine products of China”. It also won “gold prize” and “silver prize” among the consumers’ trustable domestic vehicles by the China Consumer Association. The enterprise is awarded such honorary titles as “star enterprise of China”, “enterprise with quality management prize” and “customer satisfaction enterprise” etc.
In the 40 years’ production of special-purpose vehicles, the company has gone through three major technological innovations, has introduced advanced technology and equipment from the United States, Britain, South Korea consecutively, which enhances the manufacturing level and product quality of the company. In 1997, the company passed the ISO9001 quality system certification as the first one in the industry, and in 2003, it passed “3C” system certification as the first batch. The products of the company are listed into Inspection-free Product of Jilin Province.
The Company completed the restructuring and reorganizing in 2007, and was renamed FAW Siping Special-Purpose Vehicle Co., Ltd. After restructuring, it inherits and retains the main body of the original company, and further innovates operating concept. Relying on the overall advantages and strong support of the FAW Group Corporation, it expands the technology platform, expands the field of production and sales markets, and based on the development strategy of “being the strong and delicate one”, and in line with the operating guideline of “stabilizing domestic market, expanding into international market”, the company carries on all-around system reform, resets the organizing structure of the company, implements the important measures of recruiting technical personnel and management elites, which promotes the steady and rapid development of the company, makes the company continue to be the designated automotive R & D and test base of FAW Group and the designated production enterprise of FAW Group Corporation Import and Export Enterprise. At the same time, the enterprise also has an independent export right of special-purpose vehicles.
The company currently employs 360 people, including 12 people engaged in engineering and technical work (8 with junior titles, and 4 with senior titles), and 22 people have junior and senior titles. The average technical grade of staff is grade 12; currently, the company has all kinds of equipments of 560 sets; it currently has construction area of 44,000 square meters, with total assets of 100 million yuan; the current production capacity is 5000 sets of special-purpose vehicles of mixed varieties, and special vehicle supporting assembly of nearly ten thousand pieces.
2.3 Contact Method
Contact Person: Zheng Xiaohui
Tel: 0434-6126057  18643455688

Contact Method of the City (Prefecture) of the Project
Contact Unit: Siping Economic and Technical Cooperation Bureau
Contact Person: Song Qingxin
Tel: 0434-3266211   13844482608



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