Medicine & Health

 

1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
The project mainly constructs Chinese herbal medicines standardized planting base and expansion of primary processing plant of pieces of Chinese herbal medicines. The project implements comprehensive way, contiguous focus scale development; takes the road of scientific and technological innovation, implementation of screening, breeding and promotion through the support of a large number of Chinese herbal varieties suitable for the introduction of high-quality, comprehensive agricultural science and technology measures in the project area, gradually improving varieties, standardized and scientific medicine production mode; it takes the path of sustainable development, and further improves and protects the agricultural ecological environment, promotes biological control of pests and diseases of Chinese herbal medicines, develops pollution-free, pollution-free green Chinese herbal products, combines land utilization with raised land in order to pursue the sustainable use of land; strengthen agricultural science and technology training, increase investment to engage in the implementation of demonstration, and constantly improve the quality of workers, use advanced and applicable technology and fine varieties to facilitate the promotion and popularization.
1.1.2 Market Prospects
Chinese herbal medicine  is a traditional  medical drug  of modern medicine  pharmaceutical  raw material of our country  with a long history. Since ancient times, it has played a very important role in human life-saving. In modern life and medical treatment, traditional Chinese medical treatment still has an irreplaceable aspect of western medicine, especially for incurable diseases, infectious viral disease, it has unique, significant preventive and therapeutic effects, and its medical effects are incomparable by western medicine. Chinese herbal medicine industry is an important part of our medicine economy, also an integral part of international medicine, especially herbal, natural medicines and the like. In recent years, Chinese herbal medicine industry has shown a strong growth trend. With international respect for nature, returning back to nature has become a trend. With industrial development and changing global ecological environment, the use of natural medicine to replace chemicals has become the future trend of international pharmaceutical development. The characteristics and advantages of Chinese medicine are favored by people of all ages. After China's accession to WTO, the international community continues to raise awareness of traditional Chinese medicine, therefore, the value of Chinese herbal medicine industry are increasing. According to statistics, the Chinese medicine industry has an output growth of 20% annually on average, and growth of profits and taxes have increased by 20% per year on average.
Under the situation of basic formation of the socialist market economic system, the significant role of the basic effect of market in resource allocation, and economic globalization and integration, especially after China's accession to the WTO, agriculture and agricultural products will face even greater impact and more intense market competition historical backdrop. Therefore, to meet the requirements of the socialist market economy, we should be based on the resource, market-oriented, accelerate technological innovation of county agricultural sector, improve the technological content of agriculture and agricultural products, vigorously develop agriculture, which is the inevitable choice for the development of agriculture and rural economy.
With China's accession to the WTO and the national attention on the development of Chinese medicine, Chinese medicine will fully enter the world. Currently, the size of China's medicine industry is growing, with annual sales of nearly 1 billion yuan from 1980 to the current more than 40 billion yuan (about US $ 5 billion), natural plant medicine is a hot spot in international market, with annual growth rate of over 10%. By 2015, natural medicines and health food trade exceed $ 250 billion, thus Chinese medicine market demand is huge. China's population accounts for one fifth of the world, forming a huge market group.
The project products belong to the variety with larger amount of usage in proprietary Chinese medicine, with huge space for development. Over the past decade, various traditional Chinese medicine prices rose steadily. Experts predict that with China's accession to WTO and Chinese medicine more and more being accepted by people around the world, the demand for authentic Chinese herbal medicines will grow at an annual rate of 10%. The above products, as bulk herb with large used amount and reduction of wild herbs production, its growth rate will be higher than average. As long as producing green, pollution-free, good quality products according to GAP standards, the prospects for entering the international market are broad.
1.1.3 Necessity of Project Construction
(1) Development of Chinese medicine is a historical opportunity for the development of Wangqing County
Wangqing County is a national poor county, with high mountains and steep slopes, huge elevation above sea level, complex terrain, and backward transport, there are many minority populations. Farmers' income is very low, the economy is very poor, and "three rural" issue is in particular prominent. Since the positive response to the national call to implement natural forest logging ban, the pillar industries disappear, and financial revenue is in trouble. To nurture pillar industries, according to the county conditions, the county government is determined to play the role of traditional Chinese medicine industry in Yongsheng County agricultural structure. With its rich in resources, ecological environment, it will develop Chinese medicine planting, carry out industrial operations, increase farmers' income, speed up the face of the county for building a moderately prosperous society.
(2) Significance for the adjustment of agricultural structure and rural economic structure of Wangqing 
Wangqing has special geographical environment, backward economic development, and slow development of secondary and tertiary economy. Agriculture is still stuck in the traditional cultivation method, with large investment, low income, poor efficiency, and farmers' income is difficult. On the development of agricultural industrialization, there is the lack of large enterprise with big coverage and impact. Coupled with that Wangqing social economy is relatively backward, it is difficult to promote high-tech industrialization project. This project regards artificial cultivation of Chinese herbal medicines as the construction content, with leading enterprises as the mainstay, drives the majority of farmers in mountainous areas to plant herbal plants on the abandoned land and sloping land. Therefore, the construction of the project is in line with the actual situation in Wangqing County; it can effectively adjust the agricultural industry structure and the rural economy in the project site, and provide an example for regional rural industrial structure and rural economic restructuring.
(3) It is beneficial for increasing farmers' income. The social and economic development of Wangqing is far behind the national average level of the province, and the poor population is mainly distributed in the poor mountainous and semi-mountainous area, even more noteworthy is yet to find a good road to make mountain farmers become rich good. Chinese herbal medicine market has great potential; through implementation of the project, it can greatly increase the output efficiency of mountainous land. After reaching full production capacity, the annual income per mu mountainous land is far beyond the traditional food crops. It has important significance for solving the local people out of poverty, consolidating ecological construction achievement.
(4) It will help improve the agricultural scientific and technological content, and enhance the radiating ability of the leading enterprises.
Chinese herbal medicine is a unique resource with ecological and socio-economic value, with broad development prospects. Through the construction of demonstration project, it can greatly facilitate its development. So, it will give full play to Wangqing natural ecological advantages, and the establishment of Wangqing 42,000 mu Chinese herbal medicines standardized planting base as soon as possible will help to improve the efficiency of agricultural science and technology content and business efficiency, foster the growth of specialized industry, and enhance the radiation driving ability of leading enterprises. After the implementation of the project, Huiyou Medicines Development Co. Ltd. will be expected to become leading enterprise with wide coverage, high impact in the economic development of Wangqing.
1.1.4 A dvantageous Conditions and Necessity of Project Construction
So, we should grasp the good opportunity for the development of traditional Chinese medicine industry, give full play to the advantages of the mountain farm area, combined with traditional Chinese medicine industry status quo and development of domestic market, moderately develop the area, foster authentic varieties, improve the technological content of traditional Chinese medicine, and expand the Chinese herbal medicine market. We should establish standardized Chinese herbal medicine production base, vigorously develop Atractylodes etc. medicinal species, and strengthen the planned construction of base. It will play an important role in achieving industrialization of Chinese medicine in Wangqing County, and the significance is profound.
Chinese herbal medicine production have long been grown in Wangqing County, and in the mountainous area, it has a relatively big impact on farmers in agricultural production. The farmers' enthusiasm for planting is high. However, due to the shackles of the traditional production methods and traditional habit of planting, cultivating seeds, introduction and demonstration, inadequate promotion, the promotion of Chinese herbal medicines have been unable to meet the market demand for herbal medicines production due to the small size of the area and low production, long production cycle. With the continuous improvement of people's living standards, Chinese herbal medicine production is facing a new situation. There are over one thousand varieties of Chinese patented medicines with herbal medicine as raw material, and the sales market targeted to Kunming of Yunnan, and Sichuan Xichang two medicines are promising, but there is a serious shortage of raw materials, and products are in short supply. To this end, we should establish traditional Chinese medicine base as soon as possible scale, relying on technological progress to optimize the product structure, increase efforts to solve the problem of Chinese herbal prenatal investment, improve the planting area and level in the county, form base scale the brand advantage, increase market share and competitiveness, and promote the industrialization process of Chinese herbal medicines, which is an urgent issue in the county.
With the accelerated pace of economic globalization, China's major agricultural products market will gradually open to the world, and the demand for patented Chinese medicine is not only large in Asia, also in recent years it has become the best-selling product in America, Europe pharmaceutical markets, which not only brings us good opportunity for enjoying international agriculture division of labor and cooperation, but also makes us face the enormous challenges in the fierce competition in international agricultural product market. Chinese herbal medicine is China's first major advantage, and the development of Chinese herbal medicine is the realization of China's economic development strategy for the ancestral medical service of mankind. Construction of Chinese herbal medicine production base has far-reaching significance for improving the quality and technological content of agricultural products, improving the yield and quality of Chinese herbal medicine, make Chinese herbal medicine to develop towards pollution-free green industry direction, thus achieving harmonious economic, social and ecological sustainable development.
1.2 Content and Scale of Project Construction
(1) The construction of Chinese herbal medicines standardized planting base of 4200 mu (of which: Atractylodes of 14,000 mu; Wind of 5,000 mu; Codonopsis lanceolata of 3,000 mu; Bellflower of 3,000 mu; Asarum of 3,000 mu; Gentian of 8,000 mu; Bupleurum of 6,000 mu).
(2) The expansion of one primary processing plant of Chinese herbal medicines pieces, with annual output of Chinese herbal medicines pieces of 2 million boxes.
(3) The relevant technical training and guidance.
1.3 Total Investment and Funds Raising Plan of the Project
1.3.1 Total Investment of the Project
    List of Total Investment of the Project       Unit Ten thousand yuan
No.
Name of Expense
Investment Amount
Percentage to Total Investment%
Remarks
1
Construction investment
8880
74
 
2
Interest incurred in construction period
156
1.3
 
3
Working capital
3013.2
25.11
 
 
Total Investment of the Project 1+2+3
12000
100.00
 
1.4 Financial Analysis and Social Evaluation 
1.4.1 Main Financial Indicators
List of main indicators for financial benefits forecast
No.
Name
Unit
Indicator
Remarks
1
Sales income
Ten thousand yuan/a
8000
Normal year
2
Total profit
Ten thousand yuan/a
2400
Normal year
3
Financial internal rate of return of all investment
%
18
After income tax
4
Financial net present value Ic=10%
Ten thousand yuan
7013.39
After income tax
5
Payoff period of all investments (after tax)
a
5.4
Including construction period of 1 year
6
Profit margin of investment
%
15
After income tax
 
1.4.2 A nalysis of Social Benefits
The construction of this project will lead and facilitate Wangqing employment, tax revenue, improving people's income level, making an important contribution to the economic development of the region. It has an important role in agricultural transformation and upgrading of Wangqing agriculture, and enhancing the industrialization process. It has good social effect.
1.5 Ways of Cooperation
Joint venture, sole proprietorship, specific ways can be interviewed.
1.6 What to be Invested by Foreign Party
Funds.
1.7 Construction Site of the Project
Wangqing County Jiguan Township, Luozigou Town, Daxinggou Town, Baicaogou Town, Tianqiaoling etc. five towns.
1.8 The On-going Condition of Project
Project proposal has been completed.
2. Introduction to Partner
2.1 Basic Conditions
Project Unit: Wangqing County Jiguan Township
2.2 Overview
Jiguan Township belongs to Wangqing County of Jilin Yanbian Prefecture. Relying on the advantage of local resources, Jiguan Township develops a "grasping green for long term, grasping black for middle term, grasping yellow for short term, steadily focusing on grain" development ideas. It is located in the mountains, with lush forests and abundant natural resources. The region has a collective forestland of 29,252 hectares, and it is the first town that has 10,000 mu of artificial forest in the prefecture.
H olding the development idea of enriching farmers through investment, Jiguan Township will construct efficient crops, herbs, edible fungus, animal husbandry, forestry etc. five major industrial bases. According to the township regional characteristics, it identifies the location, determines the development ideas, so that the final outcome is reflected in increasing the income of farmers. It will vigorously develop green, pollution-free agricultural products, increase the added value of agricultural products, promote agricultural production base construction, and promote land moderate scale operation. Chinese herbal medicine, with the existing base as foundation, will focus on the development of Schisandra, ginseng, fritillaria and other varieties, and gradually expand the scale of cultivation. Ginseng development should reach 40 hectares, and Zhangjiacun Fritillaria base will achieve the scale of 20 hectares.
2.3 Contact Methods
Contact unit: Wangqing County Economic and Technical Cooperation Bureau
Contact: Xu Zhiguang
Tel: 0433-8220055 13894347700
 
Contact methods of project city (prefecture):
Contact unit: Economic and Technical Cooperation Bureau
Contact: Duan Xin Sui Siyu
Tel: 0433-2853431    18686336078
Fax: 0433-2853431
City or prefecture website: www.yanbian.gov.cn
 
 
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