1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

This series of cereal breakfast food selects corn, rice, wheat, millet, soybeans and other grains as raw materials, and uses direct or indirect extrusion and puffing technology to produce fully nutritious breakfast cereals that retain the natural aroma of grains and have a unique flavor. The product has diverse forms and is rich in high dietary fiber, meeting the needs of different consumers for a healthy breakfast. In addition, we also offer health grain breakfasts designed specifically for slimming individuals and those with special nutritional needs. In terms of beverages, our mixed grain beverages use a variety of agricultural products such as grains and beans. Through advanced industrial production technology, we scientifically mix protein, fat, carbohydrates, minerals, and trace elements to create healthy drinks, including grain concentrate beverages (such as corn concentrate, mung bean concentrate, red bean concentrate, etc.) and grain clear juice beverages (such as corn clear juice, mung bean clear juice, red bean clear juice, etc.). With the continuous improvement of people's living standards, the demand for healthy and nutritious food is increasing year by year.

1.1.2 Market prospect

(1) Market situation

Breakfast cereals are breakfast products made mainly from grains such as corn, black rice, buckwheat, red dates, rice, wheat, oats, etc., processed into slices, which can be directly added to milk for consumption (cold food) or boiled for a moment (hot food). In developed countries such as Europe and America, the development of breakfast cereals has a long history. Based on the characteristics of raw materials and dietary habits in each country, various specialty breakfast cereals have been developed. According to reports, the global annual production of cereal breakfast reaches 3.2 million tons, with a sales amount of 16.6 billion US dollars. The United States is the largest cereal breakfast market, accounting for about half of global production and around 60% of sales revenue. Europe is also an important market for  breakfast cereals, with five major markets including France, Germany, Spain, and the United Kingdom, producing approximately 815000 tons annually and selling over 4 billion US dollars. Functional breakfast cereals have shown significant development in various countries, especially in European and American countries such as the United States and the United Kingdom, with a significant market position. In China, breakfast cereals are mainly familiar to a small number of white-collar workers and other social classes.

With the gradual popularization of miscellaneous grain consumption, not only is the population of daily consumption of miscellaneous grains expanding, but also more home cooked categories are regaining market favor in competition with new miscellaneous grains, mixed and matched versions of miscellaneous grains, and convenient miscellaneous grain bags. With the normalization of miscellaneous grain consumption, terminal consumption will become more refined, and the market size of China’s five grain and miscellaneous grain industry will reach 92.295 billion yuan in 2023. Overall, the production of miscellaneous grains in China is relatively low compared to staple foods, mainly planted in specific regions. In 2023, the production of corn, soybeans, other legumes, and potatoes in China will be 288.84 million tons, 20.84 million tons, 3.261 million tons, and 30.14 million tons, respectively.

With the sustained growth of the Chinese economy and rapid increase in national income, people’s quality of life, consumption concept, and health concept are also constantly improving. The development of beverage products tends to be based on flavor, diversification, and fashion, gradually moving towards nutrition, functionality, and health. The “natural, green, nutritious, and healthy” attributes of coarse grains are in line with the development trend and trend of the contemporary beverage market, and are increasingly favored by more and more consumers.

On the other hand, with the acceleration of people’s work and life pace, convenient supplementation of healthy nutrition has become an innovative focus in the food and beverage industry. The Chinese people’s traditional eating habits of coarse grain also promote coarse grain drinks to become one of the fast and convenient ideal choices for consumers.

In China, cereal beverages first appeared as one of the beverage categories in the Beverage Rules released in 2007. Defined as beverages made primarily from grains and formulated through blending, they belong to the category of “plant-based beverages”. Grain based beverages not only retain the beneficial components of grains for human health, but also have a better taste, are convenient to drink, and are easier to absorb. They are one of the ways to solve the nutritional imbalance in the fast-paced, high-pressure, and heavy burden of urban residents’ diets in modern life. In addition, grain based beverages have diversified raw materials, more mix and match options, and a rich variety of flavors, catering to the preferences of young people and meeting the diverse taste needs of consumers. With the continuous launch of new products, the market’s recognition of cereal beverages continues to increase. In the future, driven by both health needs and plant-based factors, grain based beverages may have broad development prospects.

In recent years, the agricultural and rural sectors have made every effort to overcome difficulties and maintain a stable and positive trend in agricultural and rural development. The foundation of agriculture, rural areas, and farmers has been further consolidated, providing strong support for the economic recovery and high-quality development. In 2023, rural e-commerce will flourish, with the annual rural online retail sales reaching 2.49 trillion yuan. Driven by industry and employment, China’s grain and miscellaneous grain industry has maintained growth in terms of primary sales scale as a food product.

(2) Market forecasting

According to the research conducted by China Cuisine Association on the current breakfast market, the average size of the breakfast market in first tier cities such as Beijing and Shanghai is about 5.06 billion yuan. Among them, chain fast food enterprises account for 14.7% of the market share, breakfast engineering enterprises account for 2.9%, unbranded breakfast trucks and small stalls account for 67.7%, and other formats account for 14.7%. With the development of the economy, the improvement of living standards, the acceleration of the pace of life, and the enhancement of health awareness, as well as the popularization of household microwave ovens, it is expected that the breakfast cereal food market will have broad prospects. Based on a population of 400 million urban residents and 100 million urban households, assuming that each household consumes 0.5 kilograms of breakfast grains per month, the annual consumption will reach 600 million kilograms, with an annual consumption of approximately 3 billion yuan. This figure is only 1/20 of that of the United States if calculated according to the national per capita consumption.

It is expected that the market size of the miscellaneous grain industry will continue to maintain stable growth in the coming years. According to historical data and market trend analysis, the compound annual growth rate of the miscellaneous grain market is expected to reach a relatively high level. With the continuous growth of consumer demand for healthy food, the market demand for miscellaneous grain products will become more diversified. In addition to traditional products such as mixed grain rice and mixed grain noodles, it is expected that more innovative mixed grain foods and beverages will emerge.

Since the reform and opening up, China’s beverage industry has gone through seven waves of development, from carbonated beverages to dairy beverages, gradually becoming one of the rapidly developing industries in China. In recent years, coarse grain beverages made from materials such as millet, sesame, and soybeans have developed rapidly. According to data, their growth rate far exceeds the average level of the beverage industry, with a growth rate of over 20%.

With the acceleration of the pace of life, a new challenge has emerged in the food industry: how to quickly supplement the healthy nutrients needed by the human body. Chinese people have always been fond of cereal drinks. In addition to the current popular cereal fashion, coarse grain drinks will soon become a convenient and fast food choice for Chinese people.

Looking ahead, we can see the coarse grain industry chain will have a significant impact on the entire beverage market. Beverage companies can only truly promote the development of China’s coarse grain beverage market by relying on strong funds, strong research and development capabilities, and relatively complete marketing management systems.

The market prospects for grain based nutritious breakfast and mixed grain beverage processing projects are very broad, mainly due to the increasing awareness of healthy eating among consumers and their pursuit of nutrition and convenience.

1.1.3 Technical analysis

This project adopts the advanced technology from China Agricultural University.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Policy Measures to Support the Accelerated Development of the Agricultural Product Processing Industry supports banking institutions to provide preferential interest rate loans to eligible agricultural product processing enterprises, striving to ensure that the loan interest rate does not exceed the LPR of the same period and grade plus 100BP. Include the research on key technologies such as deep processing of agricultural products, comprehensive utilization of by-products, and quality and safety control of food processing (storage and transportation) in the scope of provincial science and technology development plan support, encourage universities, colleges, and enterprises in the province to carry out joint research and development through industry-university-research cooperation, and provide about 500000 yuan of scientific research funding support for key research and development projects that have passed the evaluation. Encourage the city (prefecture), county (city, district) or project hosting government to establish industry support funds, and provide up to 10 years of continuous support for newly settled projects. There is no upper limit on the support amount, and specific support policies are determined by the city (prefecture), county (city, district) or project hosting government.

(2) Industrial advantages

Jilin Province has abundant resources of miscellaneous grains. Jilin Province has a rich variety of miscellaneous grains, including sorghum, millet (foxtail millet), buckwheat (sweet buckwheat, bitter buckwheat), oats (naked oats), barley, millet, Job's tears, grain amaranth, as well as 16 major species and hundreds of small species such as kidney beans, mung beans, adzuki beans (red beans, red beans), broad beans, peas, cowpeas, adzuki beans (war beans), black beans, etc. These miscellaneous grains not only have high nutritional value, but also have a wide range of adaptability, are good at utilizing natural light and heat resources, and are suitable for planting in areas with poor production conditions.

Brand advantages: Changchun city has brand advantages in grain production, such as Changchun rice, fresh corn, etc. The influence and market recognition of these brands provide a good market foundation for grain nutrition breakfast and mixed grain beverage projects.

Advantages of the industrial chain: Changchun City has formed a circular economy model in crop cultivation, deep processing, harmless treatment and comprehensive utilization of agricultural and sideline products, which can achieve zero emissions. This provides a guarantee for the sustainable development of grain nutrition breakfast and mixed grain beverage projects.‌

(3) Location advantages

Nong’an Economic Development Zone is located at an important node of the Harbin-Changchun City Cluster, and is the core area of Changchun’s half-hour economic circle, as well as the main channel for north-south entry and exit. The development zone borders Changchun New Area to the east and Kuancheng District and Lvyuan District to the south. Kaixuan Road and Qingnian Road extend to the town area, and four bus routes within the city connect to the town. In addition, it is 680 kilometers away from Dalian Port, 58 kilometers away from Longjia International Airport, and 20 kilometers away from Changchun Land Trunk Port. G12, G302, S106, Changchun-Baicheng Railway and other transportation arteries run through the territory, forming a three-dimensional transportation system surrounded by highways, expressways, and rail transit. ‌‌

(4) Talent advantages

Changchun is a well-known high intelligence intensive area in China, with more than ten key universities such as Jilin University, Northeast Normal University, and Changchun Institute of Optics and Fine Mechanics located in Changchun. It also has national and provincial (ministerial) scientific research institutions such as Changchun Branch of the Chinese Academy of Sciences, Changchun Institute of Optics and Fine Mechanics, Changchun Institute of Applied Chemistry, as well as scientific research institutions such as design institutes, computing and testing centers, and several key open laboratories in Changchun. Changchun City has abundant human resources and price advantages. Higher education institutions and research institutions such as Jilin University, Northeast Normal University, Changchun University of Traditional Chinese Medicine, Changchun Institute of Optics and Fine Mechanics, and Changchun Institute of Applied Chemistry can provide senior management and technical personnel for the implementation of the project.

1.2 Contents and scale of project construction

The project covers an area of 150 acres and will construct a production line with an annual output of 200000 tons of nutritious breakfast cereals and 100000 tons of miscellaneous grain beverage.

1.3. Total investment of the project and capital raising

The total investment of the project is 900 million yuan, including the construction investment of 670 million yuan.

1.4 Financial analysis and social evaluation

1.4.1Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 550 million yuan, its profit will be 165 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its return on investment will be 18%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

Promoting a healthy eating culture: With people's increasing emphasis on healthy eating, cereal nutrition breakfast and mixed grain beverage projects can help promote the popularization of a healthy eating culture. These products are not only nutritionally balanced, but also help consumers develop good eating habits and reduce their dependence on high calorie, high-fat foods.

Promoting agricultural development: Grain-based nutritious breakfast projects can utilize local food resources such as corn, black rice, millet, buckwheat, etc., to increase the added value of food products and promote the development of local agriculture. This not only increases farmers’ income, but also promotes the extension of the agricultural industry chain.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Changchun Nong’an Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Changchun Nong’an Economic Development Zone

Address: 100m East of the Intersection of Hexing Road and Helong Street, Kuancheng District, Changchun City

2.2 Unit overview

The Management Committee of Changchun Nong’an Economic Development Zone is located in Helong Town, Nong’an County, Changchun City, Jilin Province. Changchun Nong’an Economic Development Zone was established in 1992 and was promoted to a provincial-level economic development zone in 2003; in September, 2013, the “district-town integration” system reform was implemented in Helong Town; in February, 2016, the provincial-level Shaoguo Industrial Park and the municipal level Kai’an Industrial Concentration Zone were incorporated into the development zone for unified management; in July, 2021, integration was carried out with the provincial-level Nong’an Industrial Concentration Zone, with an institutional specification of deputy department level. The total planned area of the integrated development zone is 53.7 square kilometers, consisting of a core industrial park, a new building materials and home furnishing park, an agricultural product processing park, and a car opening cooperation park. In recent years, the development zone has closely focused on the automotive industry, carried out precise investment attraction in the upstream and downstream industrial chains, fully implemented preferential policies in the automotive industry, and gradually developed and strengthened the automotive parts industry. At present, the development zone has 61 automobile parts enterprises, including 10 above designated size and 51 below designated size, with a production value of approximately 2.05 billion yuan in 2022. In particular, there is a cooperation park in the development zone that mainly undertakes the supporting industries of automobiles and buses. The cooperation zone is 15 kilometers away from the urban area of Changchun and 28 kilometers away from the headquarters of FAW NBD. The planned area of the park is 9.8 square kilometers, and the built-up area is 5 square kilometers. There are 101 settled enterprises, including more than 20 automotive parts enterprises such as TMHOLD, TBK, Jiasen Railway Vehicles Co., Ltd., and Xinnuoda Transportation Equipment Co., Ltd., etc.

2.3 Contact method

Contact unit: Nong’an Economic Cooperation Promotion Center

Address: Xinghua Road, Nong’an Town, Nong’an County, Jilin Province

Tel: +86-431-89936018

Contact method of the city (prefecture) where the project is located:

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com