Medicine & Health


1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Ginseng enjoys the reputation of "King of Herbs" and “King of Chinese medicine”, with high medicinal and nourishing value. The ginsenoside is a steroid compound. As one of the main ingredients of ginseng, it is the material basis of its physiological activity. At present, over 30 kinds of ginsenosides have been isolated and identified, each having its unique physiological activity, with such effects as anti-fatigue, anti-aging, regulating the central nervous system, improving immunity, improving cardiovascular and cerebrovascular insufficiency, and inhibiting the growth of tumor cells etc.
Usually it is considered that the principal medicinal value of oral ginseng and ginseng products are from the metabolism, decomposition, absorption and utilization of ginsenoside in human body. However, studies have found that in oral administration, ginsenoside will not be decomposed by gastric juice and liver enzyme, the extent of absorption by the human body is less than 5%, and the only part that can play a role is the small number of metabolites produced by the intestinal microbial decomposition of ginsenoside. This project uses the method of fermentation to prepare in vitro fermented ginseng - the ginsenosides metabolites FGM1 (the original Ginseng terpene glycol ) and FGM4 (the original panaxitriol ), which can be totally absorbed andutilizedby the human body. The product is safe, effective, and has no toxic side effects. At the same time, it eliminates the complex metabolic processes in the body of ginsenoside decomposition, absorption. At an active ingredient, fermented ginseng can be directly used by the body, and the degree of utilization has nothing to do with the microbial decomposition ability in intestines, which thus effectively avoids the individual differences of effect in taking ginseng, and improves the utilization rate of the medicinal ingredients of ginseng.
1.1.2 Market Prospects
Ginseng, as a precious Chinese herbal medicine, has effects of prolonging life, supplementing qi and consolidating vigor etc., and has a therapeutic effect for a variety of diseases. It has a long history of medicinal use; in addition, it is widely used in nourishing food, daily chemical and other industries. In China, there are more than 300 kinds of developed ginseng products.
The main origins of ginseng in the world are China, North Korea, South Korea, Japan and Russia, with China's output ranking the first in the world, accounting for about 82% of output in the world; Jilin Province, relying on Changbai Mountain, known as “treasure house of biological resources in the world”, has superior geographical environment factors, with the ginseng production accounting for about 85% of the country, accounting for 70% of the world. At present, Yanbian Prefecture has formed the province's largest ginseng planting base, with more than 6300 peasant households engaged in ginseng cultivation, accounting for about 30% of the total number of ginseng planting peasant households in the province. The reserved area for garden ginseng is ​​7437 hectares, accounting for 67% of the total area in the province, the reserved area for underwoods ginseng is 10,556 hectares, that of American ginseng is 1273 hectares, and that of field ginseng is 119 hectares. In 2015, the output of fresh garden ginseng is 14,785 tons, accounting for 72% of the province's output, ranking the first in the main producing areas of the province. In other words, the world’s ginseng is mainly produced in China, the ginseng in China is mainly produced in Jilin, and the ginseng of Jilin is mainly produced in Yanbian.
The major regions of ginseng exports are Japan, Italy, Germany, the Netherlands, China Hong Kong and China Taiwan. The market demand in Italy, Germany and the Netherlands has been increasing since 2014, and the export price continues to rise. In 2014, China's ginseng exports were 2,705 tons, with year-on-year falling by 6.3%; export price was $ 29,880 / ton, with year-on-year rise of 42%; export amount was $ 71.8 million, a year-on-year growth of 34%. Ginseng export price in China in 2015 was $ 42,770 / ton, up 87% compared to the same period last year. Ginseng export price in the first quarter of 2012 reached $ 42,770 / ton, breaking a record high.
However, ginseng market in China is facing the embarrassing situation of high yield and low price. The output of Korean ginseng in South Korea is less than one-third of the output in Jilin Province, and 30% of the raw materials are from Jilin Province, but the annual output value is a number of times larger than that of Jilin Province. The export volume of China's ginseng is dozens of times larger than that of Korean ginseng in South Korea, but the export amount is only a small fraction of Korean ginseng. For several consecutive years, the price of ginseng in Jilin Province has been on a downward trend, until recent years, it turns up; but the price of Korean ginseng has increased year by year, several times higher than the price of Jilin ginseng (the export price of Korean ginseng is as high as $ 179,603 / ton).
The reason is because the ginseng industry in China is still in the rough stage, with low added value, combined with chaotic production, good and bad manufacturers and enterprises mixed up. Although the industrial system is large, the brand is dispersed and mostly have small scale, making it difficult to form brand effect, which naturally results in extensive operation, and decline in international competitiveness. In South Korea, by vigorously developing the ginseng international market, creating a unified brand, increasing the added value, therefore, in the same national and regional markets, the Korean ginseng occupies the high-end market, but our ginseng only occupies the low-end and middle-end market. From another perspective, this reflects that the price of ginseng products in China still has a large room for improvement, and the market potential is immeasurable.
Insiders point out that during the increasingly prosperous period of life sciences , ginseng industry has immeasurable development value and development prospects . At the same time, China is paying more and more attention to the Chinese medicine industry , and consumers is having increased reliability on the traditional Chinese medicine. In addition, China has listed ginseng as a raw material for homology of medicine and food . From March 1 of this year , Jilin Province has implemented a new measure for ginseng management, regulating that ginseng can be directly added to various food products as raw materials. With the implementation of the new measure o f ginseng management of Jilin Province, the ginseng health food in China will get new opportunities for development , and the market prospects of ginseng and ginseng products are unprecedentedly good.
Based on the trend of our ginseng products transforming from low added value , extensive production to high added value , intensive production, the implementation of this project has certain forward-looking feature . At present, the studies on g inseng at home and abroad are mainly concentrated on the chemical composition and pharmacodynamics of ginsenoside, and the stage of how to ferment ginsenoside and put into the production has not reached. This project can effectively improve the added value of ginseng products, take full advantage of the precious medicinal and health value of ginseng resources, effectively promote the optimization and upgrading of the ginseng industry , establish ginseng products brand with influence and credibility, and play a positive role in driving the region's economic development and product export.
1.1.3 Technical Analysis
Under the leadership of Professor Nan Jixing from “Changbai Mountain Biological Functional Factor” of Yanbian University—a key laboratory under the joint establishment of the province and the Ministry of Education, the project has independently researched and developed a series of related processes of fermented ginsenoside biotransformation technology . With m icrobial fermentation as the main direction of technology, it independently cultivates biological culture to ferment ginseng, and effectively prepares ginsenoside metabolites of FGM1 and FGM4 . It has completed the optimization of identification of all the biological culture categories and cultivation method. The technique method of project product is mature, production process parameters are determinate , with a large number of detailed data as the data support in large-scale industrialization of products. The research and development technology of the project is innovation and improvement of the technique of fermented ginseng, is able to fill in the gap of technical field in China, and possesses international leading level .
1.1.4 A dvantageous Conditions of Project Construction
1 P olicy conditions (related national, provincial, and municipal policies , and the preferential policies provided by project area)
Since the reform and opening up, the CPC Central Committee and the State Council have attached great importance to the development of pharmaceutical industry, have developed a series of policies and measures to support and promote the development of pharmaceutical industry. The report of the 17th CPC National Congress proposed “equal emphasis on traditional Chinese medicine and Western medicine”, “support the development of Chinese medicine and national pharmaceutical industry”; in 2009, the State Council issued “several opinions on supporting and promoting the development of Chinese medicine industry”; in 2011, the Ministry of Health and the State Administration of Traditional Chinese Medicine jointly introduced “opinions on further playing the role of Chinese medicine in the deepening of medical and health system reform”; on April 20, 2012, the State Administration of Traditional Chinese Medicine issued and released “the 12th Five-Year planning of cultural construction of the Traditional Chinese Medicine”, making it clear that publicity on Chinese medicine cultural cause shall be intensified, which provides effective consumer market orientation; on June 20, 2012, the state issued “the 12th Five-Year planning of the Traditional Chinese Medicine”, stepping up support and protection of the traditional Chinese medicine industry.
In November 2009, the State Council formally issued a document of "Plan for the Cooperated Development of China Tumen River Region—with Chang-Ji-Tu as the pilot area in development and opening up”, proposing that in Yan-Long-Tu region, we should “play the role of port group advantages, expand economic and trade cooperation, construct National Economic and Technological Development Zone”. Yanbian New Industrial Area, due to its unique geographical location, as well as the support of the preferential policies in the country's western development and the revitalization of the old industrial bases in Northeast China, preferential policies in frontier and ethnic minority areas, and related incentive policies in national trade zone, it has the pioneering trial rights in Chang-Ji-Tu development and opening up. Yanbian New Industrial Area practices the working mechanism of one discussion for one matter, and special transaction of special matter.
2 Location advantage (including infrastructure, logistics, and resource conditions etc.)
In the early period of the establishment of Yanbian New Industrial Zone, it has a total planned area of ​​8.67 square kilometers , with the starting area of 1.81 square kilometers . Since the area is built, the cumulative investment is 560 million yuan , and “seven connections and one leveling” of roads, comprehensive pipeline network and other infrastructures have been completed, with relatively perfect and comprehensive service functions .
The park is located in Yanji City , the prefecture capital of Yanbian Korean Autonomous Prefecture in eastern Jilin Province . It is adjacent to North Korea and Russia , and looks South Korea and Japan across the sea ; it is important transport and communications junction of eastern Jilin province. As the forefront of the development and opening of the Chang-Ji-Tu pilot area, it is an important support for the cooperated development of the Tumen River Region. With convenient transportation , it can be directly connected with the provincial capital Changchun and other cities via highway , railway , aviation and other modes of transportation . At the same time, marine transport to Seoul , Busan of South Korea and routes passing through North Korea , South Korea , Japan , and Russia etc. have been opened. A number of international air lines to Japan and Russia, and highway from Hunchun to Rajin Port of North Korea is under preparation. Thus it has obvious advantages in international trade .
Changbai Mountain of Jilin Province is one of the richest regions in ginseng production of China , with sufficient resources of wild ginseng and perfect ginseng planting industrial park, raw material support for the park is guaranteed. At the same time , in the surrounding area of the park, there is Yanbian University , University of Science and Technology and other tertiary institutions , with abundant human resources. Thus it is easy to absorb the outstanding students in the college s, and complement the park with and provide fresh knowledge and technology. The National Ginseng Products Quality Supervision and Inspection Center and the National Ginseng Standardization Technical Committee is also located in Yanbian, which provides superior conditions for ginseng quality monitoring in Yanbian Prefecture.
3 Technical advantage
Under the leadership of Professor Nan Jixing from “Changbai Mountain Biological Functional Factor” of Yanbian University—a key laboratory under the joint establishment of the province and the Ministry of Education, the project has independently researched and developed a series of related processes of fermented ginsenoside biotransformation technology . With m icrobial fermentation as the main direction of technology, it independently cultivates biological culture to ferment ginseng, and effectively prepares ginsenoside metabolites of FGM1 and FGM4 . It has completed the optimization of identification of all the biological culture categories and cultivation method. The technique method of project product is mature, production process parameters are determinate , with a large number of detailed data as the data support in large-scale industrialization of products.
The project’s research and development technology is innovation and improvement of fermented ginseng technique, is able to effectively fill the gaps in domestic technology and possesses international leading level .
4 Human resource advantage
This project is completed by cooperating with “Changbai Mountain Biological Functional Factor” of Yanbian University—a key laboratory under the joint establishment of the province and the Ministry of Education. The internal full - time researchers and laboratory experts’ research group form a research project group to carry on the research of the project. It owns a large number of experts and scholars with high-level research capacity , realizing the joint mode of industry, learning and research. The group leader, professor Nan Jixing, has went to South Korea to study, has a wealth of experience and in - depth research on the basis of research and development of ginseng products , ginseng industry technological innovation and product development and marketing, and other aspects . At t he same time , the park has attracted a large number of domestic and foreign enterprises to invest and build factories . It is bound to attract more experts and technicians to settle in, who will jointly improve related technique in the development of fermented ginsenoside product.
5 Industrial foundation advantage
Yanbian New Industrial Area is located in the main ginseng producing area of Yanbian Changbai Mountain, has a unique geographical environment advantage and strong basic strengths . In the park, the planning area of g inseng industrial park is 8 square kilometers , with the initial area of ​​2 square kilometers . It has introduced Jilin Zixin Pharmaceutical , South Korea Ginseng Corp. , China National Pharmaceutical Group etc. five well-known ginseng processing enterprises , as well as supporting packaging, printing, water treatment and other projects . The i ndustrial facilities are well-equipped, with adequate sources of raw materials , and mature processing technology .
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scheme and Scale
The major products are oral fermented ginseng m etabolites of FGM1 and FGM4; in the preliminary planning, the annual output of ginseng deep processed products is 3000 tons , and is expected to reach 5,000 tons in 2015 . With the implementation of the project, it will research the development and utilization technology of subsequent products of production line residues at the same time.
1.2.2 Construction Content
The project has planning area of 40,000 square meters , with construction area of 20,000 square meters; the main buildings include plant workshop , production and testing equipment , technology research and development laboratory etc. infrastructures.
1.3 Total Investment and Funds Raising Plan of the Project
1.3.1 Total Investment of the Project (detailed in table 1)
The total investment is 200 million yuan , including construction investment of 12.560 million yuan, interest incurred in construction period of 10 million yuan, and working capital of 64.4 million yuan.
 Table 1      List of Total Investments of Project     Unit: 10,000 yuan
Name of expense
Investment amount
Percentage to total investments %
Construction investment
Interest incurred in construction period
Capitalized interest
Working capital
Total investments of project 1+2+3
Note: the “10,000 yuan” in the table is RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Major Financial Indexes 
In normal year of this project, the annual operating income is 280 million yuan , profit of 92.3 million yuan , the financial internal rate of return of total investments is 28.2% , the payback period (after tax) of total investments is 3.1 years , and the investment profit rate is 46.15% .
 Table 2   List of Major Indexes for Financial Benefits Forecast  
Operating income
10,000 yuan /a
Normal year
Total profits
10,000 yuan /a
Normal year
Financial internal rate of return of all investment
After tax
Financial net present value Ic=10%
10,000 yuan
After tax operation period is 10 years
Payback period of total investments (after tax)
Including construction period of 1 year
Profit rate of investment
Note: the “10,000 yuan” in the table is RMB.
1.4.2 Social Evaluation
Ginseng is a precious traditional Chinese medicinal material in China , is a rare material resource . Implementation of this project can take advantage of China 's ginseng resources , use independent innovated bioprocessing technology , fully exploit the medicinal value of ginseng, and change the extensive and wasted processing mode in the past, transit to the direction of intensive processing. At the same time, it also proposes new technical process in the aspect of academics, fills the blank of domestic research, and provides the basis for data and theoretical practice in the deeper subsequent processing. Due to the cognitive differences of in the e ast and the west on medicine efficacy, the Chinese medicinal material is not recognized by Western consumers due to the uncertainty of ingredients, and difficulty in quantifying. The implementation of this project clearly affirms the medicinal value of ginseng from the microscopic material level, has a positive influence on Chinese medicinal material to go abroad to obtain a greater market share ; besides, it also vigorously promotes the development of Chinese medical industry .
Production of microbial metabolite in fermented ginsenoside can increase the scientific and technological content of ginseng products to a large extent, enhance its added value, thus changing the situation of high yield, low price of ginseng industry in China, and actively expands market space of the deep processed ginseng products. At the same time, the efficient management and quality assurance in the park can provide a strong guarantee, is helpful in establishing a brand effect trusted by consumers. It will stand out in the ginseng industry, which has big system but uneven quality, and with most enterprises having small scale. When generating economic benefits, at the same time, it will play a positive role in effectively guiding the benign development of ginseng industry, and in optimization and upgrading. It can also drive the development of relevant downstream and upstream industries, and realize cooperative development.
Ginseng industry is one of the iconic industries in Jilin Province. The implementation of this project can effectively change the status quo of low added value of exported products in our province, effectively promote the economic development of the province , increase the contribution proportion of the tertiary industry to the economy , and opti mize the industrial structure. At the same time, it can also provide a large number of jobs for local place , improve local economic conditions , improve the people's living standards , and has a positive significance for the maintenance of social stability , and promotion of soci al harmony.
1.5 Cooperative Ways of the Project
Sole investment of investor.
1.6 What to be Invested by Foreign Party
The foreign party will invest in capital.
1.7 Construction Site of the Project
Chaoyangchuan Town, Yanji City, Jilin Province. Four kilometers northwest of Yanji City.
1.8 The On-going Condition of Project
Project cooperation plan has been compiled.
2. Introduction to Partner
2.1 Basic conditions
Name: Yanji City New Industrial Area
Address: Chaoyangchuan Town, Yanji City, Jilin Province
Legal representative: Li Junjie
2.2 Overview
The Yanbian New Industrial Area was approved by the provincial government in June 2006. It enjoys the administrative privilege of provincial development zone. In August 2009 , it was placed under the management of Yanji City .
The Park is located four kilometers northwest of Yanji City. In the early days of establishment, the total planned area is ​​8.67 square kilometers, including the starting area of ​​1.81 square kilometers. Since the area is established, it has had cumulative investment of 560 million yuan, and “seven connections and one leveling” etc. road, comprehensive pipeline network and other infrastructures have been completed, fully equipped with perfect service functions.
With the goal of building a national low-carbon economic development zone, Yanbian New Industrial Area has currently been settled by Jilin Zixin Chuyuan Pharmaceutical Co., Ltd., Dekang Biotechnology Co., Ltd. and other enterprises. With a number of foreign joint venture projects as media, by relying on its unique advantages of geographical location and cultural environment, it will develop the four major industries of automotive, biotechnology, ginseng, and food. The park is focused on the planning and construction of high-end manufacturing area, ginseng industrial park, logistics bonded area, and comprehensive supporting area four major functional areas. It is planning to build new type industrialized ginseng industry demonstration base and a world-class ginseng city led by the world's largest ginseng enterprise of South Korea Ginseng Corp. (Cheng-Guanzhuang), the nation's largest ginseng company of China National Pharmaceutical Group and Jilin’s largest ginseng enterprise of Jilin Zixin Pharmaceutical etc. well-known enterprises. It will try to make the investment intensity in Yanbian Prefecture Industrial Concentration Area reach 3,000 yuan / square meter within five years of construction, total investment reach 20 billion yuan, industrial output value reach 20 billion yuan, and the industrial production value reach 100 billion yuan in 2020. The New Industrial Area will be cultivated into the pilot zone in Chang-Ji-Tu development and opening up, important carrier in Yan-Long-Tu integrated development, and important economic growth pole of Yanji City.
2.3 Contact Method
Contact person of project undertaker: Jin Yongxu
Tel: 0433-2428811   13304482226
Fax 0433-2817938
Website of development zone
Contact information of city (prefecture) of project
Contact Unit: Yanbian Prefecture Economic and Technical Cooperation Bureau
Contact Person: Duan Xin Sui Siyu
Tel 0433-2853431    18686336078
Fax 0433-2853431
Website of city or prefecture
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