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1. Introduction to the Project

1.1 Project Background

1.1.1 Project Proposal Grounds

Baijifeng Mountain National Forest Park is located in the southeastern part of Dongchang District Tonghua City Jilin Province, is 25 kilometers away from the city, with an average altitude of about 600 meters. The altitude of the front Baijiyao Peak is 1318 meters. It is the highest peak of Tonghua City. Baijifeng Mountain National Forest Park is a forest eco-tourism attraction of forest the natural landscape. The total area of the park covers an area of 1067 hectares, 12 cubic meters and the forest coverage rate is 98.7%, distributed in fan-shaped from east to west. The Baijiyao National Forest Park is very rich in flora and fauna, Most of the forest vegetation is coniferous and broadleaved mixed forest. And the mian species are Korea pine, spruce and fir, oak, birch and so on. Rare species are yew, Kalopanax septemlobus, Maackia amuresis, Magnolia sieboldii, etc. there are mainly wild ginseng, Oplopanax elatus Nakai, Asarum and other 160 kinds of plants under a canopy. There are 32 kinds of the state protected  animals, of which the sable, golden eagle are the first-grade State protection animal, and lynx, black bears, otters, mandarin ducks and other animals are the second-grade State protection animals, other animals include wild boars, roe deer, bears, raccoon dogs, pheasants, China wood frogs, adders. Baijifeng Mountain National Forest Park’s construction was approved by the State Department of Forestry in 1992, only 15 kilometers away from the city, was the nearest national AAAA level scenic spots from the urban area. Baijifeng Mountain National Forest Park has obvious geographical advantages, mild weather conditions in scenic area, seasonal changes significantly, air quality reaches the national A-level standard. The ideal forest climatic conditions make it has unique natural environment foundation for the construction of "China • Tonghua Baijifeng Mountain International Health Tourist Resort". According to the geographical conditions and forest resources of Baijifeng Mountain and the demand of tourism market, the construction project is positioned as the "Forest sanatorium", aims to create the first "forest sanatorium" of the province for the forest rest and cure tourism.

1.1.2 Market Prospects

"Forest sanatorium", also known as "green sanatorium", "garden hospital", is a unique "smells" curing diseases hospital emerging in Russia, Germany, Japan and other countries in recent years. Hospital was built in the forest (especially coniferous forest), no medicine, no injections, the patient breathe aromatic odor emitted form the trees in the forest mainly by staying in the forest for some time and participating some activities, such as walking, jogging, doing tai chi, reading, playing chess, painting, singing, playing games and other forms of respiratory trees in the forest. These aromatic substances are isoprene-based terpene substances (dilute monoterpenes, sesquiterpenes and diterpenes), inhaling these substances can treat diseases and keep fit. Forest sanatoriums are generally built in the mountain forest; and coniferous forest is the best. Coniferous forests consist of pine, cypress, juniper, Chinese fir, spruce, fir, hemlock, etc., can emit terpene substances. According to experts’ measurement, per hectare coniferous forest gives off 2-5 kg terpene everyday. Terpene has strong bactericidal ability, can kill diphtheria, typhoid, Shigella dysenteriae, Salmonella, Mycobacterium tuberculosis, with enhanced anti-inflammatory, cancer and to enhance organism immune ability, so called "forest spinosad." Provitamin of terpene can be directly inhaled into the lungs, it is also known as the "Forest vitamin", terpene substances produce hydrogen peroxide during the oxidation process, and increase ozone "anion" in the air which has a strong bactericidal effect. In addition, ginkgos, magnolia prime axis, Emmenopterys henryis, Liriodendrons, Torreya trees, etc, of broad-leaved forest, can also secrete gaseous aromatic substances, with high oxygen content and rich in anionic, has a strong effect of oxygenating the body.

China is the first country to discover and promote the use of forest fresh air and aromatic substances to heal diseases and keep fit. Tang Dynasty physician Sun Simiao put forward: "the deep forest is the most beautiful and pleasant stage" in his medical book "Qian Jin Yi Fang". Ming Dynasty physician Gong Yanzan came up with an new idea " the forest can prolong life" in his" Shou Shi Bao Yuan ". This opinion is 1000 years earlier than the German's "forest bath" and "Kunaipu forest therapy" which put forward 1000 years ago. In modern times, people not only recognize the natural beauty of the forest can be good to see, but also recognize that green is the color of life which give people a sense of tranquility, bright and clear, lush trees give the impression of vitality on people, and recognize that the fragrance emitted from the trees has the effect of killing bacteria and curing diseases. These substances are inhaled into the lungs by nasal cavity to stimulate mucous, "in the nose and connect twelve regular channels," directly reach the affected site through the meridians, have the effects of accelerating respiratory ciliary movement, diuresis, relieving cough, anti-inflammatory, sedation, lowering blood pressure. In recent years, our Traditional Chinese Medicine community creates a series of "smelling" cures diseases and health theories and methods by summarizing the theory of "smells" in forest or flowers. These theories and methods is the basis of building forest sanatorium to rest and cure. Forest sanatorium treatment is suit for chronic bronchitis, tuberculosis, asthma, anxiety, dyspepsia, neurasthenia, hypertension, high building syndrome, office illness, etc.

Baijifeng Mountain Natural Protection Reserve has green mountains, many peaks, waterfalls, birds and blooms, quiet and elegant environment. Forest eco-tourism is the specific performance of socio-economic development, improvement of the quality of life, improvement of appreciating level, is the results of people develop toward naturality, exploration, curiosity of tourism development. The tourism trend of returning to nature is surging around the world. There is a coming wave of forest tourism. The rest and cure tourism of Baijifeng Mountain will greet a large number of domestic and foreign tourists.

On the development of forest tourism, the Office of the Secretary National Forestry Council has clearly stated in 1992: we should attach importance to the development of forest tourism, and develop scenic spots and ornamental flora and fauna of the forest zone, develop the forest park and open up tourist attractions designedly, develop forest tourism, invigorate the economy of forest zone, promote the construction of spiritual civilization. It is thus clear that the related departments of government have already had policies and encouragement for the development of forest tourism. The development of Baijifeng Mountain forest tourism is the requirement of industrialization development.

1.1.3Advantageous Conditions of Project Construction

 (1) The policy conditions

Government on the importance of residence facilities for the elderly is not enough. The funds put in apartments for the elderly and nursing institutions for the aged is far from enough, which cannot meet the demand. Therefore, in case of shortage of beds provided by the nursing institutions for the aged of government, the government will encourage the private nursing home to be built. Moreover, China's large aging population, and the only child grow to lack of parental care, which determine that the nursing institutions for the aged the pension agency will welcome an unprecedented opportunity. So the nursing institution for the aged is a promising unlimited industry.

According to "2012 Tonghua city government work report", it is clearly put forward that we should cultivate high-quality tourism industries, accelerate the construction of leisure and health resort products system, and create a batch of high-quality tourist routes The project relies on the northeast tourism environment, takes the advantages of the well-known travel brands of Changbai Mounatin;  Baijifeng Mountain area is facing a historic opportunity, can take advantage of this opportunity to achieve rapid breakthroughs in the market.

2Location advantage

Tonghua City is located in the southeast of Jilin Province, is the economic hinterland of Circle Northeast Asia economic circle, is an important hub of major thoroughfare in eastern part of Northeast China, one of our three major ports to North Korea, is the open frontier city approved by the state, also the nearest sea city in Jilin Province. It is east to Baishan City, west to Liaoning Province, South and North Korea across the Yalu River, north adjacent to Liaoyuan City. Baijifeng Mountain is located in the southeastern Tonghua City, is 25 km away from the Tonghua city center.; is about 100 km away from Tonghua City's famous tourist attractions - the world's cultural heritage of Ji'an, having geographical advantages. Baijifeng Mountain is the main scenic region of weekend leisure travel of the local population.

There are three criss-cross rail lines in the territory of Tonghua City - Shen Ji line, Mei Ji lines and Ya Da line. These three railways across the urban city have a close connection with railway transportation between the surrounding city and the Tonghua. Meanwhile, the highway network of Tonghua is relatively perfect, 303 State Road, 201State Road, 201 State Road and the camp help lines, connecting the three provinces in northeast of China, opening the roads. In addition, the first-grade highway around the Tonghua city is built in 2006, connecting four highways that the 201 State Road and 303 State Road and Tong Shen, Tong Chang, Tong Dan, Tong Ji, etc. After the opening of the Mei Shen highway, Tonghua and Changchun, Shenyang, Dandong and other cities will form a two-hour economic zone, and fit in into circum-Bohai-Sea economic circle, forming a convenient traffic network.

3Advantage of industrial foundation

Tonghua City is located in Northeast Asia economic hinterland, having the regional advantages of Chang, Jilin and Bai and other three Northeast provinces. The economy develops rapidly in Tonghua City, it’s GDP has totaled 76 billion yuan in 2011, an increase of 21.2% over the previous year, the increase is highest of nearly three years. Per capita disposable income of urban residents reached 18,875 yuan, increased by13%, per capita rural net income of farmers reached 7950, increased by 21%, which is one of the fastest growth period, its economic development will enter a new stage, the people's living standards will be further improved, providing the development of Baijifeng Mountain with more favorable basic conditions and a broader customer base.

Baijifeng Mountain scenic region is located in national 5A class Changbai Mountain scenic area that is a beautiful and rich, and propitious for giving birth to great men. It is the " Changbai Eco- tourism circle " South Gate , also an important part of "Tongbaiji " tourism circle , an important node city of eastern Jilin leisure tourism , east to the White Mountains , west to Liaoning Province , north to Liaoyuan and Jilin , occupies an important position in tourism development of the area.

The resources of Baijifeng Mountain can be summarized as good mountains, beautiful water, vast forest and wonderful flowers. There is a creek on the eastern side of Baijifeng Mountain, which is perennial flowing, can supply water for forest hospital. Water chemistry type is HCO-Na-Ca, hardness (German degrees) 0.08, total alkalinity 0.41, PH value 6.5, oxygen consumption1.62, solids content d10.69mg / L, CO2 fixation 3.19mg / L, As0.008mg / L. Hg, Cd are not detected. Low salinity, it belongs to soft water, namely "natural space water", water meets drinking water standards required by the State. The water is of great benefit to I tourists, convalescent persons.

1.2 Content and Scale of Project Construction

Preliminary scheme plans to build 1,500 mu of forest sanatorium shared by the following facilities: (1) a sanatorium forest, covering an area of 1,000 mu, a forest bathing, a garden, a recreation hall, a reception hall, a restaurant, a tourism factory tour, two Wenxiang yards. (2) build a forest medicine: the establishment of 200 rooms, 300 beds arranged, covers an area of ​​4000 square meters. And the necessary medical facilities and medical staff will be introduced. (3) The under forest cash crops industrial park that covers an area of 200 mu will be built.

1.3 Total Investment of the Project Funds Raising

1.3.1 Total Investment of the Projectdetailed in table 1

Table 1              List of Total Investment of the Project                       unit: 10,000 yuan

Serial No.

Name of expense

Investment amount

% to total investments

Remarks

1

Construction investment

7214.8

61.37

 

2

Interest incurred in construction period

267.3

2.28

 

3

Working capital

4273.3

36.35

 

 

Total investment of the project1+2+3

11755.6

100.00

 

1.3.2 Funds Raisingdetailed in table 2

Table 2                         List of Funds Raising              unit: 10,000 yuan

Serial No.

Source of funds

Raised amount

% to total investments

1

Project capital

6031.50

51.31

1.1

Construction investment

3614.80

30.75

1.2

Working capital

2149.30

18.28

1.3

Interest incurred in construction period

267.30

2.27

2

Raised fund

5724.00

48.69

2.1

Construction investment

3600.00

30.62

2.2

Working capital

2124.00

18.07

3

Total investment of project

11755.60

100.00

1.4 Financial analysis and social evaluation

1.4.1 Major financial indexes detailed in table 3

Table 3    List of major indexes for financial benefits forecast      unit: 10,000 yuan

Serial No.

Name

Unit

Index

Remarks

1

Operating income

10,000 yuan /a

9800

Normal year

2

Total profits

10,000 yuan /a

3134.83

Normal year

3

Financial internal rate of return of all investments

%

20

After tax

4

Financial net present valueIc=10%

10,000 yuan

3122.32

After tax

5

Payoff period of all investment (After tax)

a

7

Including 2 years of construction period

1.4.2 Social evaluation

The development of tourism can expand Tonghua City’s the opening the world, which is conducive to introduce capital, talent, technology and information, and enhance the overall level of social development. The development of this project can speed up the upgrading of industrial structure and be conducive to build the brand image of the region. After the completion of the project, 500 job opportunities will be created, and improve quality of life and levels of local people, promote social stability and social benefits are significant.

Without industrial production and construction, Forest sanatorium and its ancillary facilities have no significant pollution. Kitchen cooking also intends to use electrical energy, which does not pollute the environment. The purification tank will be built to deal with domestic wastewater that will discharge after purification. The damping ground will be built to deal with the waste of life.

 

1.5 Cooperative Ways of the Project

Joint venture, capital.

1.6 What to be Invested by Foreign Party

Capital is to be invested by foreign party, entire investment in the form of cash.

1.7 Construction Site of the Project

Longtou village Jinchang town Dongchang district Tonghua city

1.8 The On-going Condition of Project

The first draft of " International Health Resort Plan of China • Tonghua Baijifeng Mountain International Health Resort " has been completed.

2. Introduction to Partner

2.1 Basic Conditions

Name: Baijifeng Mountain National Forest Park

Legal address: Longtou village Jinchang town Tonghua city

2.2 Overview

Dongchang Economic Development Zone is an Emerging Economic and Technological Development Zone approved to establish by the provincial government of the Office of Development and Management on November 4, 2005, formerly known as Dongchang Industrial Zone, renamed as Dongchang Economic Development Zone in July 2007. The Planed area is 11.18 square kilometers, of which the initial area is 5.5 square kilometers. After several years of efforts, Jilin Medical Electronics Industrial Park, SME Incubators, Science and Technology Pharmaceutical industrial Park, the Core Area of  the National Bio- industry Base , the Pharmaceutical Industry have settled in Dongchang Economic Development Zone in succession Economic Development Zone that passed the provincial government organizations assessment in early 2011 , and will soon be recognized as a provincial-level development zones. Dongchang Economic Development Zone regards the establishment of the infrastructure as the entry point of external image and attracting and gathering projects. To make the production area, ecological area, living area, service area, management area of the park match the various infrastructures. And introduce running water and pipelined gas from the urban areas, and perfect road hardening, green environment, communications networks, water supply, drainage and sewerage, and other supporting facilities. Built-up area has achieved the "five-accessible and one-leveilng" objective. The development area zone has further enhanced the attraction of settled enterprises.

2.3 Contact method

Contact personZhai Hong

Tel18743552223

Fax0435-3270007

E-mail lljxzdx@163.com

 

Contact method of city (prefecture) of Project:

Contact Unit:  Tonghua Economic and Technical Cooperation Bureau

Contact person: Liu Daoguang

Tel0435-3650996   18904359157

E-mailth3650957@126.com

Website: http://www.tonghua.gov.cn/

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