欧宝体育

1. Introduction to the Project

1.1 Project background

1.1.1 Introduction to the Project

On December 6, 2022, the Ministry of Commerce, the Ministry of Public Security and the General Administration of Customs jointly issued a notice that officially approving Hunchun City as a region for used car export business. This is the second city in Jilin Province to be included in the national used vehicle export region list, two years after Changchun City received approval. The work report of People's Government of Hunchun City also clearly states that it focuses on the implementation of automobile industrial park, automotive parts assembly and reengineering processing base, used vehicle servicing and export and other projects, so as to gradually expand and strengthen the automobile and parts processing trade industry.

The project is to carry out the used vehicle transformation and export project in the project area of Hongqi Town, Ying'an Town, Hunchun City. The used vehicle modification and export project will be developed. Within the region, the “two ends abroad” modification and maintenance operations can be conducted. This will involve the maintenance and preparation of domestic new energy used cars for export to surrounding countries, as well as the ability to undertake maintenance, repair, and modification services for overseas new energy used cars. The project aims to seize the valuable historical opportunity created by the rapid development of new energy vehicles in China and the gradual phasing out of oil-powered cars, thereby maximizing potential benefits.

1.1.2 Market prospect

(1) Status of used vehicle export market

By the end of September 2023, the number of automobiles in China has exceeded 330 million, and the number of new energy vehicles has reached 18.21 million; the number of individuals holding a driver's license has reached 480 million. From the first quarter to the third quarter of 2023, public security traffic management departments across the country handled a total of 25.05 million motor vehicle transfer registration cases, of which 23.31 million were automobile transfer registrations, accounting for 93.1%. From January to August 2023, the transaction volume of used cars in China reached 11.9 million units, with a transaction value of 742 billion yuan. In the first half of 2023, China's automobile exports reached 2.341 million units, a year-on-year increase of 76.9%, maintaining its position as the world's largest exporter. The export volume of used cars also saw a significant increase, skyrocketing from 15,000 units in 2021 to 69,000 units in 2022. Among them, the new energy used vehicle is indispensable.

An important reason for the export trend of used vehicle is the policy support and guidance. In May 2023, the “Opinions on Promoting the Stability and Quality Improvement of Foreign Trade” issued by the General Office of the State Council clearly mentioned that it supports more regions to carry out the export business of used vehicles, expanding the export scale of used vehicles and improve the export quality of used vehicles.

From the first batch of 10 regional pilot projects in 2019 to the expansion of the scope to 30 regions in 2020, the scope of the whole export enterprises is broader, and the policies are gradually improving. For example, the export license is changed from one vehicle one license to one batch one license, which further simplifies the export process of used vehicles and creates a convenient environment for export. This policy has more obvious effect than subsidies.

Supporting favorable policies frequent introduction has provided a “tailwind” for the export of used vehicle, with new energy passenger vehicles becoming the dominant force in the export of used vehicle. In the first half of 2023, the export of domestic new energy vehicles, including electric vehicles and hybrid electric vehicles, reached 534,000 units, marking a significant year-on-year increase of 160%. As global attention to environmental protection and sustainability increases, vehicles labeled as new energy have become the key to success in the used vehicle market.

New energy used cars are referred to as “parallel export vehicles” within the industry, which differs significantly from the traditional concept of used vehicles. This generally refers to the export of domestic new vehicles, especially new energy vehicles, in the form of used vehicles. Due to the high configuration and low price of domestic new energy vehicles, it has certain advantages in the international market.

Chinese used vehicles have been exported to nearly 120 countries and regions worldwide, with the primary export markets being the countries along the “Belt and Road” initiative. The cumulative export volume to these countries accounts for 97% of the total export volume, and the cumulative export value accounts for 93.8% of the total export value. From the point of view of export destination countries, Nigeria, Angola, Benin, Mongolia and Djibouti are the top five export markets for Chinese used vehicles, with their export volume accounting for 63% of the total export volume. Currently, many export companies have begun to export to Europe, including some countries in Western and Eastern Europe, mainly focusing on new energy vehicles. Domestic new energy used vehicles are highly cost-effective, feature rapid technological iteration, have a large stock, and are very popular in overseas markets.

With the continuous growth of automobile ownership in China, the circulation of used vehicles, as an important link of the whole automobile life cycle, plays an important role in activating automobile stock, driving new vehicle increment and promoting automobile consumption.

(2) Analysis on Export Prospect of Hunchun Used Vehicle

Used car exports have become a new business in our province's automobile export sector. Since Changchun was approved as a pilot city in November 2020, the Provincial Department of Commerce, in collaboration with Changchun City, the Provincial Public Security Department, and Changchun Customs, has made full use of the advantages of pilot policies. This has driven a rapid growth in the export of used cars from Jilin Province, successfully entering the used car markets of more than ten foreign countries. As of 2023, Jilin Province exported 544 used vehicles, marking a 26-fold increase compared to the previous year. The export volume was 98.28 million yuan, up 229 times over last year. Among them, new energy vehicle exports reached 467 units, accounting for 86%, with an export value of 98.17 million yuan, accounting for 99%. Changchun used vehicle exports have demonstrated a promising development trend.

Hunchun has been approved to export used vehicles, which provides a new opportunity for expanding the scale of Jilin Provincial used vehicle export and promoting the benign development of automobile consumption. Next, the Provincial Department of Commerce will coordinate with the Ministry of Commerce, Public Security Department, Changchun Customs and other departments to leverage Hunchun's location strategic advantages, such as its proximity to neighboring countries' vast used vehicle markets, abundant ports, and convenient transportation. Efforts will focus on strengthening organizational leadership, carefully selecting enterprises, ensuring product quality, and providing proper supervision and services. All these efforts aim to solidify the implementation of the business and contribute to Hunchun's rapid growth alongside Changchun in the near future. This will further accelerate the integration of Jilin Province's automobile industry into the domestic and international “dual circulation” system and promote stable and quality-enhanced foreign trade for Jilin Province.

Relying on the advantage of automobile manufacturing in Jilin Province, Hunchun's export volume of complete vehicles abroad has repeatedly reached a new high, which has become a new highlight of foreign trade economy in Jilin Province. Currently, the complete vehicle export business has covered passenger vehicles, dump trucks, buses, concrete mixer trucks and other vehicles. In 2023, the number of domestic vehicles exported through Hunchun highway and railway port reached 2,822 with a year-on-year increase of 825%. 

In the first quarter of 2023, the Hunchun Comprehensive Bonded Zone achieved import and export trade worth 1.55 billion yuan, a 100% year-on-year increase. The total number of vehicles exported through Hunchun's comprehensive bonded zone reached 3,028 units, with a trade value close to 1.2 billion yuan, surpassing the total vehicle export volume of 2022. Among them, in March, the export of complete vehicles reached 1,136 units, setting a new record of over 1,000 units exported in a single month. At the beginning of 2024, Hunchun Comprehensive Bonded Zone planned in advance, actively straightened out the customs clearance process and constructed a green channel for the export of finished vehicles. At the same time, it further strengthens the business connection with large-scale domestic automobile industry groups, continuously strengthens the service for commercial vehicle export business, provides high-quality service and good logistics support in the aspects of entering and leaving the park, tax refund for entering the park and safe parking, and provides strong support for the development of the complete vehicle export business.

The Project fully leverages the favorable opportunity provided by the national approval of Hunchun as a “used vehicle” export pilot area. It will focus on developing the “used vehicle” export business and strive to make breakthroughs in automotive parts export, with broad market prospects.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In 2022, the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs pointed out in the “Notice on Expanding Businesses and Adding New Export Regions for Used Vehicles” that regions carrying out used vehicles export business should align with local characteristics and develop supporting service systems related to vehicle maintenance, testing and certification, warehousing and logistics, financial insurance, and other areas. Support enterprises to speed up the construction of international marketing network and build a communication and cooperation platform for enterprises to expand market channels. Guide the enterprises to establish the after-sales service system corresponding to the export scale through self-construction, resource sharing or multi-channel cooperation, guarantee the supply of after-sales accessories, provide maintenance technological support, establish a quick response mechanism for complaint handling and after-sales service, and improve the professional level of after-sales service. Improve the level of convenience in vehicle transaction registration, license application, port customs clearance, vehicle cancellation and other links to create a good environment for the export of used vehicles.

On September 1, 2023, the Ministry of Industry and Information Technology, the Ministry of Finance and other five Departments issued the “Automobile Industry Stabilization and Growth Work Plan (2023-2024).” Based on the new car sales target for 2023-2024, the plan also explicitly requires the promotion of the scrapping, replacement, and consumption of old vehicles, as well as the used car market.

(2) Location and transportation advantages

Hunchun is located in the Northeast Asia Golden Triangle, connecting three countries and five countries in total. It serves as a gateway to Northeast Asia and one of the starting points of the Eurasian land bridge. The city has five national-level highway, railway, and river ports, with the addition of the Russian Khlaskino Port and Slavyanka Port, which serve as “domestic trade and foreign transport” entry, exit, and transshipment hubs. Within a 200 kilometer radius of Hunchun, there are numerous high-quality ports. Hunchun has expressways and high-speed railways connecting to domestic cities such as Changchun and Beijing. The Yanji Airport, located just one hour away by car, operates nearly 20 domestic and international flight routes.

(3) Resource advantages

Jilin Province, as a traditional automotive industry powerhouse, has a deep automotive cultural heritage and is one of the largest automotive industry bases in the country. It is home to key independent brand car manufacturers such as FAW Car Co., Ltd as well as truck, bus, and other vehicle manufacturers. Developing new energy vehicles in this region offers comprehensive advantages in technology, market, brand, and scale.

1.2 Contents and scale of project construction

The project covers an area of 62 hectares, with key components including an automobile exhibition center, automobile supermarket, automobile 4S stores, automotive beauty and repair workshops, refueling and charging stations, used vehicle trading market, used vehicle modification center, testing center, and storage and logistics center.

1.3 Total investment of the project and capital raising

The total investment of the project is 170 million yuan, including construction investment of 136 million yuan

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 125.93 million yuan, its profit will be 37.78 million yuan, its investment payback period will be 6.5 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 22.22%.

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

1.4.2 Social evaluation

The construction of the project will further enhance the influence of Hunchun's automobile tangible market, promote the automobile industry, drive the economic development of the surrounding areas and promote the industrial upgrading; Moreover, the Project will effectively promote economic growth, increase local fiscal revenue, relieve employment pressure, increase income of urban residents and promote local economic development through extension of industrial chain, increase of local tax, appreciation of land value and creation of employment opportunities.

1.5 Cooperative way

Joint venture and cooperation

1.6 What to be invested by the foreign party

Funds, equipment and technology

1.7 Construction site of the project

Chengxi Village, Ying'an Town, Hunchun City

1.8 Progress of the project

The project cooperation plan has been prepared

2. Introduction to the Partner

2.1 Basic information

Name: Hunchun City People's Government

Address: No. 1991, Xin'an Road, Hunchun City, Yanbian Korean Autonomous Prefecture

2.2 Overview

Hunchun City is located in the southeast of Jilin Province in the lower reaches of the Tumen River, covering an area of 5,134 square kilometers, inhabited by Han, Korean, Manchu, Hui, Mongolian and other ethnic groups, only 15 kilometers away from the mouth of the Tumen River. It is the “window” of China's Changchun-Jilin-Tumen pilot area and the “bridgehead” for the opening up of Northeast Asia, and it is also the strategic fulcrum of China's “Belt and Road” opening to the north.

As the frontier of China's participation in the international cooperation and development of Tumen River region, China attaches great importance to the development and opening-up of Hunchun. In March 1992, the State Council approved Hunchun as a further open border city to the abroad, and in the same year, approved the establishment of Hunchun Border Economic Cooperation Zone; Since 2000, the country has comprehensively implemented the strategy of opening-up along the border, establishing an export processing zone and a China-Russia border trade zone in Hunchun, thus forming a unique “three-zone-in-one” model in China. In 2009, the country approved and implemented the “Development and Cooperation Plan Outline for China's Tumen River Regional International Cooperation”, positioning Hunchun as a gateway city for the Changchun-Jilin-Tumen development and opening-up area. In 2012, the State Council approved the establishment of China Tumen River Region (Hunchun) International Cooperation Demonstration Zone. In 2020, Hunchun Marine Economic Development Demonstration Zone was approved.

As one of the first batch of cities along the border of China to open up to the outside world, Hunchun has many major national open platforms such as border economic cooperation zone, mutual market trade zone, comprehensive bonded zone, marine economic development demonstration zone, international cooperation demonstration zone, cross-border e-commerce comprehensive pilot zone, etc., and enjoys a series of major national policies such as Tumen River regional cooperative development, mutual trade landing processing pilot, the first batch of national logistics hubs in the “14th Five-Year Plan”, the pilot of market procurement trade mode, and the second-hand car export business area, and has the advantage of being pilot in many fields. At present, Hunchun City is optimizing and upgrading various open platforms, actively cultivating mutual trade landing processing, bonded logistics, bonded processing, cross-border e-commerce, market procurement trade and other business formats, and quickly transforming unique policy advantages into huge advantages in openness, cooperation and development.

Hunchun Border Economic Cooperation Zone is located in the south of Hunchun Plain in the lower reaches of Tumen River, just across a river from the city center. The cooperation zone is connected to the old city area through two road bridges and one railway bridge (under construction). Introduction of Cooperation Zone: 4 kilometers away from the south of the planned zone to Changlingzi Port; western boundary 20 kilometers reaching the Shatuozi Port. Hunchun Border Economic Cooperation Zone has flat terrain, a small number of relocated households, and strong ground bearing capacity, typically around 30 tons per square meter, making it suitable for development and construction. Hunchun has a humid climate with mild winters and cool summers. The average annual temperature is approximately 5°C.

2.3 Contact method

2.3.1 Contact method of cooperator

Contact Person: Liu Wenbo

Tel: +86-13843370077

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

Contact unit: Yanbian Prefecture Bureau of Commerce

Contact Person: Li Jingyu

Tel: +86-13596515933