Medicine & Health

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Plant extracts are the products made with plants as materials by the directional acquisition and condensation of a or multiple effective compositions in the plants via the physical and chemical extracting and distilling process according to the demand for the purposes of the final products instead of changing the structures of its effective compositions. At present, the fields where the plant extracts are applied are continuously increasing and they can be used as medicinal materials, health functional food, food additives, cosmetics, feedstuff additives, veterinary medicine of plant sources and pesticides of plant sources, etc. With the continuous development of the application fields, the rigidity characteristics of plant extracts have begun to manifest. Because the international extract market is a continuously mature market full of vigor, the enthusiasm of the main economic entities in the world in the plant extracts has greatly improved, the export market has been continuously expanded and the industrial foundation has been further laid and stabilized.

1.1.2 Market Prospect

The popular extracts in the international market are mainly centralized in the following aspects: fungi extracts such as herba rhodiolae, gingko, ginseng, centella asiatica, glossy ganoderma and mushroom, etc. in the field of brain strengthening, intelligence education and prevention and treatment of senile dementia; green tea and fructus aurantii immaturus extracts, apples, bitter gourd polypeptide, faenum graecum and tamarind, etc. in the field of weight reduction, reduction of blood sugar and prevention and treatment of diabetes; taxinol and green tea extracts (tea polypenols and theanine), biological acetones, lycopene, anthocyanin and lutein, etc. in the field of natural anti-cancer and strengthening of immunity; licorice root extracts, garlic powder, astragalus mongholicus and soybean extracts, etc. in the field of strengthening of human immunity.

In recent years, the extract industry of China has also rapidly developed, the productivity of China is approaching that of the advanced plant extract country in the world and it has a good momentum of development as a whole. The plant extract industry of China, influenced by the traditional Chinese medicine culture, has developed into a modern industry with the natural extracts as the core, characterized by the traditional Chinese medicine extracts and including the plant extracts from all other places in the world. With the rich resource advantages and technical advantages, China has become one of the most important plant extract suppliers in the world. In 2014, there are 2255 enterprises in China exporting the extract products, 479 more than those in the same period of 2013. The proportion of the export volume of the nongovernmental enterprises is 60.76%, which is far ahead; the “foreign-funded enterprises” follow in the proportion of export volume, reaching 28.54%.

At present, most of the domestic plant extracts are exported. The statistical data of China Medical and Health Products Import and Export Chamber of Commerce show that the export volume of plant extracts in 2012 is 1.164 billion USD, a year-on-year growth of 3.11%; it is 1.412 billion USD in 2013, a year-on-year growth of 21.30%; it is 1.777 billion USD in 2014, a year-on-year growth of 25.88%; it is 2.163 billion USD in 2015, a year-on-year growth of 21.71%.

With the rapid development of the plant extract industry, the export volume of the plant extracts has been more than half of that of the traditional Chinese medicine and the plant extract industry has become the main industry of export of traditional Chinese medicine of China by now.      

Proportions of the Import and Export of Plant Extracts in the Foreign Trade of Traditional Chinese Medicine Commodities in 2010-2014

Year

Proportion of Export

2010

42.27%

2011

48.50%

2012

46.40%

2013

44.90%

2014

49.48%

In 2014, , China exports the plant extract products to 133 countries and regions, of which the products exported to the traditional market of Asia, Europe and North America, etc. rank in the forefront, accounting for 92% of the total export volume. In the three continents, ASEAN is remarkable with the total export volume of 0.323 billion USD in the whole year, a year-on-year growth of 74.81% and it is also the main force driving the achievement of a year-on-year growth of 38.59% in Asia; the performance is also good in Europe and North America, with the export volume reaching 0.34 billion USD and 0.356 billion USD, respectively, a year-on-year growth rate of 10%; although the shares of Africa and Latin America are low, the year-on-year growth rate reaches 53.65% and 29.36%, respectively.

Silymarin, as a medicinal plant has become one of the new members of the medicinal family of China since it was introduced from German and successfully planted in China in 1972. The silymarin extract has the strong anti-oxidizing function. It can protect stem cells from being damaged by free radicals, so it is called “natural liver protectant”. In addition, it plays the roles of reducing blood fat, protecting, musculus cardiacu and brains, dilating blood vessels and resisting radiation, platelet aggregation and gastric ulcers, etc. The research proves that the silymarin extract has potentials in the prevention and treatment of cancers, especially the treatment of bladder cancer. China is one of the major suppliers of silymarin extract in the world. In 2010, influenced by the sharp increase of the international demand, the domestic demand for silymarin has greatly increased, the uniform price in the producing area increases from about 7 yuan/kg to about 22 yuan/kg and the enthusiasm in the large-scale expansion of planting makes the output seriously surplus and the market is depressed. In 2013, the silymarin extract market starts to be gradually recovered and the export volume reaches 15.42 million USD. In 2014, the whole market continues taking a favorable turn, the cross-span growth is achieved in the export, the export volume in the whole year increases to 37.42 million USD, a year-on-year growth of 142.7%. The US is the largest country that China exports the silymarin extracts to, with the export volume of 8.7736 million USD, accounting for 23.45% of the total. Spain and ROK rank in the 2nd and 3rd place, respectively, with the export volume of 3.7372 million USD and 3.6366 million USD, respectively. 

On the whole, the plant extract industry continues rapidly developing. In addition, the natural health products are popular in the whole world, the big health industry is flourishing, it is believed that the plant extract industry, following the “natural and healthy” concepts, will continue rapidly developing. Therefore, the project prospect is really broad.

1.1.3 Technical Analysis

The project is planned to take the ultrasonic extraction technology, which is applicable to the natural products, especially for the extraction of the effective compositions of the traditional Chinese herbal medicines. It is the new method and new process of thoroughly changing the traditional extraction process of traditional Chinese medicine.

1.1.4 Advantageous Conditions of Project Construction

(1) Advantageous policy conditions 

In the “12th Five-Year” Development Plan of the Food Industry, the government clearly expresses the support for the development of the plant extract industry: “food additive and ingredient industry: accelerate the development of the functional food additives, encourage and support the development of the industry of natural pigments, plant extracts, natural anticorrosive and antioxidant and functional food ingredients, etc.” and continue developing the advantageous export products.”

Since Changchun New Area was founded, a series of policies such as Policies on Promoting the Development of the Strategic Emerging Industries, Policies on Promoting the Innovative Development of Science and Technology, Policies on Accelerating the Assembly of the High-level Personnel and Policies on Supporting the Innovative Development of Changchun New Area, etc.

(2) Obvious location advantages

The construction site of the project, located in Changchun Beihu Development Zone, under Changchun New Area, has the obvious location and transport advantages. Changchun New Area is located in the core hinterland of Changchun-Jilin-Tumen Development and Opening Pilot Zone and geographical center of Northeast China and the important node of Harbin-Dalian Economic Belt and China-Mongolia-Russia Economic Corridor. In the district, Longjia International Airport is the national trunkline airport, some expressways such as Jingha Expressway and Hunwu Expressway, etc. meet here, some trunkline railways such as Jingha Railway and Hada Railway penetrate the whole district, Changchun-Manchuria-Europe International Freight Train has been opened and the sea, land and air 3D transport network has been preliminarily established, so it is convenient to have communication of personnel and goods with other regions of Northeast China, Beijing, Tianjin and Hebei and the surrounding countries of Northeast Asia. The new district, depending on the construction of Longjia International Airport and comprehensive railway freight yard, is building the international airport and international inland port, the “three major channels” to the west, north and south and incorporate to the major pattern of economic development in the world.

(3) Industrial development advantages

Changchun New Area, focusing on the building of the innovative industrial system with the advanced manufacturing industry, modern agriculture and modern service industry as the important points, insists in the coordinated and interlinking development of the four major development zones and preliminarily establishes the industrial development pattern with the prominent important points and distinctive characteristics: in the airport development zone, the emphasis is put on the development of the logistic industry, finance, leisure tourism and health endowment and other modern service industry as well as airport advanced manufacturing industry and it will be built into the pilot zone of airport economy and opening to the outside in Northeast China. In Beihu Development Zone, the emphasis is put on the development of the high-end equipment, photoelectric intelligent, biological medicine, fine food, new materials and energy industries to promote the construction of the international inland port of Northeast Asia, build the international inland port oriented to Northeast Asia and build itself into the strategic emerging industry pilot zone. In Changde Development Zone, the emphasis is put on the development of the health industry, fine food industry, strategic emerging industry and engineering mechanical industry, etc. to build the new urban area suitable to live in and open businesses; in the New and High-tech Zone, the emphasis is put on the development of the new and high-tech industry and high-end service industry to build the functional assembly zone of the new and high-tech industry and high-end service industry. The industrial pattern and development of Changchun New Area will provide the good industrial support for the project.

(4) Personnel and innovative resource advantages

In Changchun New Area are assembled a lot of colleges, universities and scientific research institutions such as Jilin University, Northeast Normal University, Changchun Institute of Optics, Fine Mechanics and Physics of Chinese Academy of Sciences and Changchun Institute of Applied Chemistry of Chinese Academy of Sciences, etc.; in the district, there are 3 national-level engineering labs, 2 national engineering technological research centers, 11 national-level key labs and 50 key labs above the provincial and ministerial levels. The district has 34 national-level innovative parks and bases such as National Patent Navigation Industry Development Experimental Park and National Innovative Personnel Cultivation Demonstration Base; in the district is assembled Changchun Northeast Scientific and Technological Innovation Center built by “1 academy, 4 institutes and 4 universities” including Changchun Branch of Chinese Academy of Sciences and Jilin University, etc., the special technological platforms of photo-electrics, new materials, new energy, biological medicine and ecological agriculture, etc. and public service platforms of governmental affairs, information, finance and personnel, etc. are built.

1.2 Project Construction Contents and Scale

1.2.1 Product Scale

It is predicted that the project will have the annual output of 120 tons of silimarin, 600 tons of GSPE, panasoxide, schizandrin and other extracts and 1500 tons of evening primrose oil, flaxseed oil, pumpkin seed oil, hemp seed oil, perilla seed oil, borage seed oil and grape seed oil.

1.2.2 Construction Contents of the Project

The project covers an area of 100,000 m2, including the building area of 70,000 m2.

1.3 Total Investment and Capital Raising of the Project

The total investment of the project is 500 million yuan, including the construction investment of 250 million yuan.

Table 1: Summary Table of the Total Investment of the Project

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

25000

50

 

2

Interest in the construction period

 

 

 

3

Current funds

25000

50

 

 

Total investment of the project (1+2+3)

50000

100

 

Note: “RMB10, 000” in the Table shall be RMB.

1.4 Financial Analysis and Social Evaluation

1.4.1Main Financial Indexes

After the project reaches the output, it will achieve the annual sales income of 600 million yuan, profit of 100 million yuan, investment recovery period of 7 years (after the tax, including the construction period of 1 year) and investment profit rate of 20%.

Table 2: List of Major Indexes for Forecast of Financial Bene90fits

No.

Name

Unit

Index

Remarks

1

Business income

10,000 yuan/a

60000

Normal year

2

Total profit

10,000  yuan/a

10000

Normal year

3

Internal financial yield rate of the investment

%

14

After the income tax

4

Net financial value (Ic=10%)

10,000 yuan

6900

After the income tax (operating period of 10 years)

5

Recovery period of all the investment

a

7

Including the construction period of 1 year

6

Investment profit rate

%

20

 

Note: “RMB10, 000” in the Table shall be RMB.

1.4.2 Social Evaluation

The project has the advanced technology, mature process, high product quality and strong market competitiveness and the project construction can provide the multiple employments and promote the regional economic growth.

1.5 Cooperative Ways

Joint venture, cooperation

1.6 What to be Invested by Foreign Party

The foreign party should input the funds.

1.7 Construction Site of the Project

Changchun Beihu Scientific and Technological Development Zone

1.8 The On-going Condition of Project

The project is ready to be established.

2. Introduction to Partner

2.1 Basic Conditions

Name: Beihu Scientific and Technological Development Zone of Changchun New Area

Address: 5799 Longhu Road, Changchun City, Jilin Province

2.2 Overview

Changchun New Area is 17th state-level new area which was established under the approval of the State Council on February 3, 2016. It is next to the main urban area of Changchun City, its main part is located in the northeast of Changchun City, its approval area is around 499 square kilometers, and its jurisdiction covers four zones, including Changchun Hi-tech Industrial Development Zone, Changchun North Lake Science and Technology Development Zone, Changchun Airport Economic Development Zone, and Changde Economic Development Zone.

The OVERALL PLAN OF CHANGCHUN NEW AREA approved by the state has defined the strategic positioning, function layout, key task and development goal of the new area. Its strategic positioning is to create an innovative economic development demonstration area, a key engine for the new round of revitalizing Northeast China, an important platform of Tumen River regional cooperation and development and an advanced area of system and mechanism reform. Its function layout is to build “Two Axes, Three Centers and Four Bases”: “Two Axles” means Harbin-Changchun Strategic New Industry Development Axis, Changchun-Jilin High-end Service Industry Development Axis, “Three Centers” means science and technology innovation center, international logistics center, international communication and cooperation center and “Four Bases” means high technology industry base, advanced manufacturing industry base, airport economic industry base and health & pension industry base. Its strategic task is to promote innovation and entrepreneurship level, strengthen endogenous driving force of development, greatly develop innovative industry system, accelerate the cultivation of three leading industries of advanced equipment manufacturing industry, modern service industry and modern agriculture, build a green and intelligent new urban area, promote urban modernization and internationalization level, promote Changchun-Jilin-Tumen interactive development, accelerate the integration process of Changchun, Jilin and Tumen, actively integrate into and serve “the Belt and Road” construction, accelerate the creation of “Silk Road”, new platform in north line, new door and new passage, and achieve the transition from new area to international free trade zone. Its development goal is strive to fundamentally complete the construction of three dimensional transportation network in the new area, preliminarily clear the external logistics passage for land and maritime joint transportation, increasingly perfect the public service facilities, achieve major breakthrough in reform, innovation and opening cooperation, greatly promote innovation driving capacity and fundamentally create innovative modern industry system by 2020.

Changchun Beihu Scientific and Technological Development Zone, under Changchun New Area, is generally oriented to the important scientific and technological innovation center in Northeast Asia, compound hub international inland logistic port oriented to the free trade zone, important high-end equipment manufacturing, new material and new energy, biological medicine industrial base and the important ecological tourism and leisure zone in the north of Changchun City. The emphasis is put on the building of 2 centers, 1 base and 10 parks. 2 centers-Scientific and Technological Innovation Center and International Logistic Center; 1 base-Advanced Manufacturing Industrial Base; 10 parks-High-end Equipment Industrial Park, Photoelectric Intelligent Industrial Park, Biological Medicine Industrial Park, Asia-Pacific Agricultural and Food Safety Industrial Park, New Energy and New Material Industrial Park, Cloud Computation Industrial Park, International Business Park, Special Logistic Park, Equipment Logistic Park and E-commerce Industrial Park. Efforts are made to actively develop the technological development, cultural exchange, business and financial service, biological medicine, photoelectric information, new energy and new materials, fine and good food, modern logistic and logistic equipment manufacturing industries, etc. Great efforts are made to develop the information, management, insurance and financial service industries related to logistics, further accelerate the infrastructural construction, make all efforts to build the new window, new channel and new platform of the logistic industry in Northeast Asia and build the Northeast Asia international logistic and supply chain hub and logistic equipment manufacturing base, strengthen the regional integration of science and technology as well as finance, accelerate the transformation of scientific and technological achievements, perfect the regional infrastructural construction, improve the comprehensive service functions of the city, enhance the ecological and environmental protection and construction of the wetland park, promote the development of the cultural tourism and sports health industry and build the charming urban area integrating human culture, science, technology and ecology.

Changchun Beihu Scientific and Technological Development Zone is planned to have had the urban construction land of 61.94km2, accommodating the population of 0.2 million by 2020; the urban construction land of 87.27km2, accommodating the population of 0.55 million by 2030.

2.3 Contact Method

Project Unit: Changchun Beihu Scientific and Technological Development Zone

Address: 262 Beiwan West Street, Changchun City (Longxiang Plaza)

Contact Person: Zhang Jingjing

Contact Tel: 0431-89672978    15043075507

 

Contact Method of the City (Prefecture) of the Project:

Contact Unit: Changchun Bureau of Economic and Technological Cooperation

Contact Person: Bo Zhanlin

Tel: 0431-82763933  82765252

Fax: 0431-82763933

E-mail: cc82763933@163.com

Website of the City or Prefecture: http://www.ccmbc.com/

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