Medicine & Health

 

1. Introduction to the Project
1.1 Project Background
1.1.1 Introduction to the Project  
The using of medicine of the Korean nationality as raw material and the making of high-tech and high-valued products has showed the prominent efficacy of medicine of the Korean nationality. Implementation of the project will also show that, as a leading company of medicine of the medical industry of the Korean nationality, our company integrates the production and sales of the medicine of the Korean nationality, health products and food, which drives the development of related industries.
1.1.2 Market Prospects
So far, there is no effective medicine to treat hepatic ASCITES, hepatic cirrhosis, headaches and migraine in national and international medical markets. Our products possess independent intellectual property rights, are exclusive production at home and abroad, with advantages of good efficacy, slight side effects and higher cure rate, less consumption, good quality and low cost. It is at an international advanced level, takes the leading position in domestic, which fills the gaps at home and abroad. Therefore, it has strong market competitiveness, not only can meet the domestic needs of patients, but also can earn foreign exchange through exports.
In 2012, the production of Chinese patent medicine reached 2.9389 million tons, with a year-on-year growing rate of 14.88%. In 2013, the production of Chinese patent medicine reached 3.1052 million tons, with a year-on-year growing rate of 13.4%. In 2014, the production of Chinese patent medicine reached 3.6731 million tons, a year-on-year increase of 2.14%. In October 2015, the production of Chinese patent medicines reached 266,000 tones, a year-on-year increase of 4.75%, and the accumulative production up to 2.6399 million tons, with a year-on-year increase of 2.99%.
Table 1: Summery of the Production of Chinese Patent Medicine and Year-on-Year Growth Rate in 2006-2014
The blue column refers to the annual production of Chinese patent medicine (100 million ton/a), while the red line refers to the year-on-year growth rate (%).
Statistics showed hepatitis medicine market scale increased from 19.424 billion yuan in 2010 to 24.36 billion yuan in 2012, a compound annual growth rate of 12%. The growth rate Chinese patent medicine market of liver disease follows the development of the scale of the whole Chinese patent medicine market of liver disease, increase from 3.902 billion Yuan in 2010 to 4.825 billion in 2012, a compound annual growth rate of 11.2%.
Recently, in order to promote appropriate medical technology of the Korean Nationality, the Department of Health of the Yanbian Korean Autonomous Prefecture of Jilin Province has been making efforts to organize the medical literature and health care methods of the Korean Nationality. With a series of supporting policies, the ability of diagnosis and treatment technology of the Korean Nationality are improving
The brand of the Traditional Chinese Medicine Administration was hung in Yanbian Health Bureau, designated personnel and manpower will work for the management of traditional Chinese medicine and the medicine of the Korean nationality industry Hospitals of the Korean Nationality have been established in Hunchun City, Longjing City and other three cities or countries in the administrative region. In the same year, Regulations of the development of medicine of Yanbian Korean Autonomous Prefecture began drafting, and will be put into effect in 2009. The Korean Nationality Medicine branch of Chinese Ethnic Medicine Association was founded in 2012. At present, the development of the Korean medicine has initially taken shape the patters of Yanbian medical hospitals in leading position, supplemented by TCM medical institutions of the prefecture, promoting medical technologies.
In recent years, the accumulative investment of China and the administration of Traditional Chinese Medicine of Jilin province reached nearly 6 million yuan, which is used in incapacity-building for hospitals. Yanbian Prefectural Government appropriated office building to the Yanbian Korean Medical hospital, expanding the buildings for its other business, invested more than 2 million Yuan to improve hospital conditions. Since 2009, the department of prefectural finance will annually donate 1 million yuan to the Yanbian Korean Medicine Hospital for construction.
In order to improve the ability of Korean medical services, Yanbian Prefecture relied on the platform of the country’s promotion of technology project, depended on the five national medical acupuncture techniques that undertook by Yanbian Korean Medical Hospital and the Yanbian Hospital of Traditional Chinese Medicine to invite Korean medical experts to provide training in and clinical basic theory of Traditional Chinese Medicine, Korean medicine and technology and acupuncture technology for the Township and community service centers,.
Yanbian University recovered the major of Korean medical science in higher education, and recruited full-time undergraduate students of Korean Medicine orientation of Traditional Chinese Medicine. Since the year of 2011, the Traditional Chinese Medicine (Korean Medicine) qualification examination has been officially included in the national examination of Medical practitioners.  Up to the year of 2011, 124 people have passed the exam in Yanbian Prefecture, among of which, 89 people of practitioners, 35 people of licensed assistant doctors, distributed in various medical institutions throughout the Prefecture. In 2013, the physician qualification examination starts under the approval of the State administration of Traditional Chinese Medicine.
As a collaborative unit consisted of Yanbian Medical Hospital, the Yanbian Hospital of Traditional Chinese Medicine and TCM School of Yanbian University, we strive for the work of nine Korean medical literature compilations of the State administration of Traditional Chinese Medicine and five appropriate technology promotion projects, with total funds of 2.95 million Yuan.
1.1.3 Technical Analysis
Using technology owned by enterprises.
1.1.4 A dvantageous Conditions of Project Construction and Necessity
1 Policy Conditions Advantages
Jilin provincial government issued the Implementation Suggestions on Accelerating the Development of Pillar Industries in the Pharmaceutical and Health. According to the Suggestion, we should focus on three leading sectors of Traditional Chinese Medcine and chemical medicine and biological medicine, actively expand the five potential parts of biological health materials and health foods, medical devices, pharmaceutical testing instruments and equipment, pharmaceutical business and distribution, medical and health service.
2 Technology Advantages
In late 80s, Mr. Lv Yunyi led his team into Europe, Central Asian countries, to cooperate with the major authoritative scientific research institutions and hospitals. They used the most advanced foreign technology, consisting of various subjects working groups, developed Korean medical treatments of medical problems "liver cirrhosis, liver ASCITES, neuropathic headache, heart disease and other diseases," which are significant achievements. The significant breakthroughs of treating" liver ASCITES, liver cirrhosis and headache" caused a sensation in Europe and Central Asia. In 2005, European Institute of natural sciences (Germany) awarded "Invention Award" and "Humanity Contribution Award" based on the significant achievements. Lv Yunyi, head of the project, awarded "Europe's highest medical Prize –Pirogov medal ", and won the National invention patent certificate of the People's Republic of China in 2008.
3 Resource Advantage
Changbai Mountain is a resource-rich natural treasury, breeds with thousands of medicinal plants, is not only one of China's three great treasure houses of natural resources, but also the world key species gene bank. Yanbian Prefecture is located in the hinterland of the Changbai Mountains, with the forest coverage rate of 78%, has unique ecological environment and natural advantages, with typical integrity of forest ecosystems, with a wide variety of animal and plant resources.  There are more than 2009 species of medicinal resource of wild plants and animals, among which, there are more than 1200 kinds of medicinal plants and animals of pollution-free green, and more than 50 species edible plants and animals. Medicinal and edible animals and plants resources in Changbai Mountains enjoyed a high reputation at home and abroad. Developing green resources in Changbai Mountain is the only way to achieve sustainable economic development.
1.2 Construction Contents and Scale of Project
1.2.1 P lan and Scale of Products
This project established and deep processing medicine and food production base of high-tech, high added value, and with national GMP standard and food production standard requirements, used modern medicine processing method to produce Korean medical decoction pieces; used microwave extraction, and hot return mention, and high pressure reaction Kettle, and film separation, and film filter, and low temperature air superfine grinding, and polymer inclusion and other high-tech technology to produce parameter leech liver healthy pills, and pine needles brain capsule; adopted high-tech technology of extraction of flora and fauna in the of activity protein components to produce Yiganyuan capsule and Xinbangzhixing capsule, and produce green food made from g natural resources of inseng, mushrooms, mushroom, pine pollen in China Changbai mountain are well received by the market.
1.2.2 Construction Content
1 The project intends to build a production line which in line with Chinese Herbal Medicine GMP standard, two production lines compliance with health care GMP standard, two production lines which in line with QS pharmaceutical GMP standard.
2 Construction of the plant of 58,000 square meters.
3 Purchase 1,000 sets of production equipment.
1.3 Total Investment and Funds Raising of the Project
Table 2 Summary Table of Total Investment of Project
Unit: Ten Thousand Yuan
Serial No.
Name of Expense
Investment Amount
Percentage to Total Investment (%)
Remarks
1
Construction Investment
5000
16.7
 
2
Interest Incurred in Construction Period
 
 
 
3
Working Capital
25000
83.3
 
 
Total Investment of the Project 1+2+3
30000
100
 
1.4 Financial Analysis and Social Evaluation
1.4.1 Major Financial Indexes See the attached table 3 for details
Table 3 List of Major Indicators for Financial Benefits Forecast
Serial No.
Name
Unit
Index
Remarks
1
Operating Income
10,000 Yuan/a
33000
Normal year
2
Total Profits
10,000 Yuan/a
8500
Normal year
3
Financial Internal Rate of Return of All Investment
%
16
After income tax
4
Net Financial Present Value Ic=10%
10,000 Yuan/a
4600
After income tax
5
Payoff Period of All Investment (After Tax)
A
4.5
Including construction period of one year
6
Profit Margin of Investment
%
18
After income tax
Note: the “ten thousand Yuan” in the table refers to RMB.
1.4.2 Social Evaluation
The project belongs to the national key industry for development, which will directly offer employment opportunities for the local surplus labor after the implementation. The project will make contribute in stimulating local economic development, maintaining social stability, and promote local economic and social development and local urbanization after the completion of the project.
1.5 Cooperative Ways of Project
Joint ventures, foreign investment accounts for 49%.
1.6 What-To-Be-Invested by Foreign Party
Investment reaches 147 million Yuan.
1.7 Construction Site of Project
Yanji High-Tech Development Zone
1.8 The On-going Condition of Project
Complement of proposal
2. Introduction to Partner
2.1 Basic Conditions
Company Name Yanbian Li Fu Biotechnology Co., Ltd.
Legal Address Yanji high-tech development zone
Legal Representative Xuan Guangxiong(Chair)
2.2 Overview
Yanbian Leafoo Biotechnology Co., Ltd. is a modern high-tech biotechnology company that develops, produces and sells the pharmaceutical products, medical products, health products, food, cosmetics. The company consists of the "joint Workstation" co-founded by five Central Asian countries and the "Yunyi Life Sciences Institute" of Yanbian University College of Pharmacy. Those who won Nicholas – Pirogov medal which awarded by the European Academy of Natural Sciences for outstanding contribution in the field of medicine, chief scientist at the National Academy of Sciences of the Republic of Kazakhstan, Doctor of the European Academy of Natural Sciences pharmacology and Philosophy in Germany, were recruited as chief scientists for the company to develop the high-tech medicines of a worldwide medical problem of the liver cirrhosis, nervous headache, heart disease and epilepsy. These research projects have obtained international patents, and have achieved a significant treatment effect in clinical, civil medical and other aspects.
2.3 Contact Methods
Postal Code 133001
Unit Contact Person : Qi Zhanwen
Tel 0433-8950991  
Fax 0433-8950990
E-mail qhr8301@163.com
Contact Person
Unit Contact Person Gao Zhongsheng
Tel 0433-2866828  
Fax 04342866828
E-mail qyj2801162@163.com
 
Contact Methods of Project City (Prefecture)
Contact Unit Yanbian State Department of Economic and Technical Cooperation
Contact Person Sui Siyu
Tel 0433-2369007    13039339299
Fax 0434-2369007
Website of City/Prefecture www.investyanbian.gov.cn
 
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