欧宝体育

1. Introduction to the Project

1.1 Project background

1.1.1 Introduction to the Project

Automotive parts are components of vehicles, including engine, chassis, body and electrical equipment. As the foundation of automobile industry, automotive parts are necessary factors to support the sustainable and healthy development of automobile industry. The project is constructed in Hunchun City, Yanbian Prefecture, which is located at the border of China, Korea and Russia, with four national level ports. The Hunchun automotive parts Industrial Park project can leverage both domestic and international markets, as well as resources from both.

1.1.2 Market prospect

(1) Market scale of automobile production and sales in China

According to the statistical analysis from the China Association of Automobile Manufacturers, in 2023, the cumulative production and sales of automobiles reached 30.161 million and 30.094 million units, respectively, showing year-on-year increases of 11.6% and 12%. Both production and sales hit historical highs, achieving strong double-digit growth. Among them, the passenger vehicle market continued to grow well, playing an important role in stabilizing the automobile consumption base; Commercial vehicle market has stabilized and rebounded, with production and sales returning to 4 million units; New energy vehicles continue to maintain rapid growth, with production and sales exceeding 9 million units, with a market share of more than 30%, becoming an important force leading the transformation of the global automobile industry; The automobile export have hit a new high, with the total annual exports approaching 5 million units, effectively driving the overall rapid growth of the industry.

In October , 2024, the government's “old-for-new” policy had a clear driving effect on automotive consumption. Multiple auto exhibitions and promotional events were in full swing, with enterprises intensively launching new models, pushing the market's activity to continue increasing. Both month-on-month and year-on-year automobile sales in October showed growth. Among them, the passenger vehicle market continued to improve driven by several positive factors, while the commercial vehicle market shows relatively weak performance. However, the new energy vehicle market and automobile exports still maintain rapid growth.

In October, the production and sales of new energy vehicles reached 1.463 million units and 1.43 million units respectively, with year-on-year growth of 48% and 49.6% respectively. The sales of new energy vehicles accounted for 46.8% of the total sales of new vehicles.

From January to October, the production and sales of new energy vehicles reached 9.779 million units and 9.75 million units respectively, with a year-on-year increase of 33% and 33.9% respectively. The sales of new energy vehicles reached 39.6% of the total sales of new vehicles.

(2) Analysis of Automotive parts Market

In recent years, new technologies such as electric drive and intelligent connected have emerged and integratedly developed, and the automotive parts industry has ushered in a new opportunity of transformation and upgrading. Many enterprises' core competitiveness has been significantly improved, and at the same time, many automotive parts enterprises are given the opportunity to overtake on the curve.

The performance of automotive parts enterprises in 2024 was polarized. On the one hand, they benefited from the industry development opportunity, and the new energy vehicles related parts enterprises developed well; On the other hand, the competitive advantage of leading enterprises is more prominent, thus promoting the differentiation of industry performance.

With the rapid increase of penetration rate of new energy vehicles, the demand for automotive parts will expand, and the boom trend of new energy vehicles industry chain will continue. Benefiting from the rise of independent brands, domestic automotive parts suppliers accelerated the layout of new energy vehicles industry chain, gradually building local supply chain advantages and ushering in the golden time.

In the future, the automotive parts market will inevitably face more fierce competition. Small and medium-sized enterprises with low product technology content and poor scale effect may be accelerated out of the market. The industry differentiation will be further intensified, and the industry concentration is expected to continue to increase. In recent years, however, China's automotive parts industry has been highly valued by governments at all levels and supported by national industrial policies. The government has successively issued a number of policies to encourage the development and innovation of the automotive parts industry, and other industrial policies, such as the “Key Points of Automotive Standardization Work in 2024”, “Consolidating the Recovery and Boosting the Industrial Economy” and the “Notice on Stimulating Automotive Circulation and Expanding Automotive Consumption” have provided clear and broad market prospects for the development of the automotive parts industry, offering enterprises a favorable production and operational environment.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In December 2021, the National Development and Reform Commission revised and issued the “Guiding Catalogue for Industrial Structure Adjustment (2019 edition)” (hereinafter referred to as the “Catalogue”). The 16th item of the encouraged category in the Catalogue is related to automobiles, including encouraging the research and development capacity construction of key parts and components of automobiles, application of lightweight materials, key parts of new energy vehicles, on-board chargers, automobile electronic control systems, and intelligent vehicles, new energy vehicles and key components and high-efficiency vehicle internal combustion engines.

Jilin Provincial “Notice on Policies and Measures to Accelerate the Construction of the Automotive Parts Industry System” supports collaborative innovation between parts enterprises and the vehicle manufacturing industry, striving to significantly improve the localization rate of components and create an open, internationally advanced automotive parts industry ecosystem.

The “Opinions of the People's Government of Jilin Province on Implementing the Automobile Industry Cluster ‘Step-up’ Project” proposes to take the Changchun automobile cluster as a lead, promote regional coordinated development, accelerate the coordinated development of complete vehicles, parts, and aftermarket services, comprehensively enhance the industry, create a trillion-level, world-class advanced automotive manufacturing industry cluster, and build a strong automotive and manufacturing province.

(2) Location advantages

Hunchun City is located in the lower reaches of the Tumen River, bounded by a watershed in the southeast, and borders Russia; It starts from the main peak of Mopan Mountain in the northwest to the middle point of the Tumen River, and it is connected with Tumen City; it starts from the Mopan Mountain in the northwest and is bounded by the watershed of the peaks of the Laoyeling Mountains, and is connected with Wangqing County and Dongning City of Heilongjiang Province. Hunchun City is 180 kilometers away from Vladivostok in Russia, 46 kilometers away from Kraskino, a major town in Russia, 93 kilometers away from Najin Port in North Korea, and 171 kilometers away from Chongjin Port in North Korea. Hunchun, which is located at the heart of the international cooperation and development of the Tumen River region, is also known as the “Golden Triangle of Northeast Asia”.

(3) Advantages of investment services

Hunchun City strives to create the best investment service environment, and has formulated a new project coordination service scheduling meeting system; The first question responsibility system; Time-limited closing system; Staff operational service system. It has established a system of “one window for external affairs, one-stop examination and approval, and one-stop service”, and implemented the whole process of approval and certification for investment projects, providing meticulous and thoughtful services for entrepreneurs to invest and start businesses. At the same time, it has built a bank-enterprise docking platform, and pioneered the “inventory mortgage” and “intellectual property pledge” loan business in the prefecture.

(4) Industrial 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 150,000 square meters, with plans to build the Hunchun Automotive parts Industry Park, including production workshops, office buildings, warehouses, and other related infrastructure.

1.3. Total investment of the project and capital raising

The total investment of the project is 1 billion yuan, including construction investment of 800 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 644.7 million yuan, its profit will be 212.7 million yuan, its investment payback period will be 6.7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 21.2%.

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

1.4.2 Social evaluation

The project complies with relevant national and local policies and development guidelines, and can stimulate investment enthusiasm in the automotive parts sector from surrounding enterprises, thereby driving the development of the local economy. The Project has no impact on ecological environment and has significant economic and social benefits.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation, etc.

1.6 What to be invested by the foreign party

Funds and other ways can be negotiated face to face.

1.7 Construction site of the project

Hunchun City

1.8 Progress of the project

Project proposal has been prepared

2. Introduction to the Partner

2.1 Unit basic information

Name: Hunchun City Prefecture Bureau of Commerce

Address: No. 1066 Longyuan East Street, Hunchun City

2.2 Unit 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. The city is strategically positioned where China, North Korea, and Russia are connected by land, and where China, North Korea, Russia, South Korea, and Japan are connected by sea. It is 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 is also a beautiful border county, ethnic county and port city with ecological livability, excellent climate and perfect infrastructure. In recent years, Hunchun City has been promoting the comprehensive revitalization of the countryside through industrial revitalization, launched and implemented a number of key projects such as Yanbian Cattle Breeding Demonstration Park and Cold-water Fish Global Tour Industrial Park, and cultivated and developed a large number of advantageous agricultural industries such as characteristic farming and rural tourism; The forest coverage rate is as high as more than 86%, with the Siberian Tiger and Leopard National Park and Fangchuan 4A-level National Scenic Area, the number of wild Siberian tigers and leopards ranks first in China, and millions of migratory birds come here every year to inhabit and breed, which is the famous home to tigers and leopards and a paradise for migratory birds; At the same time, it has intangible cultural heritage such as Korean cave flute, saucer dance and Manchu paper-cutting.

After more than 30 years of development and opening up, Hunchun City has become a hot spot for opening up along the border with a high degree of openness, strong policies, deep and extensive international cooperation, complete infrastructure, and smooth land-sea passages. It has become an important hub for Jilin Province in participating in regional economic and trade cooperation in Northeast Asia. Open and welcoming, Hunchun welcomes you.

2.3 Contact method

Project Contact Person: Duan Chao

Tel: +86-18643377696

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