1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The Automotive suspension system is one of the important assemblies of modern automobiles, which refers to the entire support system composed of springs and shock absorbers between the body and tires. The core purpose of automotive suspension is to cushion ground impact and improve riding comfort. The automotive suspension system is the general name of the force transmission connection device between the frame and the axle or wheel, and the core function is to transmit the force and torque acting between the wheel and the frame, and buffer the impact force transmitted by the unevenness of the road surface to the frame or body, and attenuate the vibration caused, so as to ensure the smooth driving of the vehicle.

According to the damping properties of the shock absorber and whether the spring stiffness changes with the change of driving conditions, suspension systems can be divided into active suspension systems, passive suspension systems and semi-active suspension systems.

The air suspension supports intelligent active adjustment function, which significantly improves driving and riding comfort and handling. The traditional automotive suspension system consists of elastic elements, shock absorbers, guiding mechanisms and other components, responsible for connecting the vehicle body, chassis and wheels, transmitting their interacting forces and torques, and mitigating the impact transmitted from the road surface.

Compared with the traditional suspension, the biggest difference in the structure of the air suspension lies in the upgrading of elastic elements, and the addition of electronic control systems and air pump, giving the suspension intelligent active adjustment function, which has the advantages such as stable handling, adjustable height, lighter weight and good vibration damping effect, which can significantly improve driving and riding comfort and handling.

The construction site of the project is located in Liaoyuan High-tech Industrial Development Zone, Jilin Province, relying on the existing foundation of Liaoyuan City, through cooperation with large domestic enterprises in this field, to produce automotive air suspension.

1.1.2 Market prospect

(1) Industrial chain of air suspension industry

With the development of automotive technology, people's requirements for the comfort and operability of automobiles are getting higher and higher, and the suspension, as one of the important configurations for the comfort and operability of automobiles, is a popular choice for consumers at present, and has also become one of the important configurations for various automobile manufacturers to compete in the high-end market. The suspension system is mainly composed of three parts: elastic element, shock absorber, and guiding mechanism.

The automotive suspension is an important component to ensure riding comfort. At the same time, the automotive suspension is an important component to ensure the safety of automobile driving as a force transmitting part connecting the frame (or body) and the axle (or wheel). Therefore, automotive suspension is often listed as an important component and compiled into the technical specification table of the car, as one of the indicators to measure the quality of the car.

The air suspension industry chain is composed of upstream part suppliers, midstream system assemblies and downstream vehicle manufacturers. Among them, the upstream parts include core parts such as air springs, shock absorbers, air supply units and ECU; midstream manufacturers such as Continental and Vibracoustic are mainly responsible for air suspension system assembly, and at present there are still a few domestic manufacturers with system assembly capabilities, only KHAT, Baolong Technology and Tuopu Group have assembly capabilities; the downstream is mainly commercial vehicle, high-end fuel vehicle, and new energy vehicle manufacturers.

(2) Analysis of the current situation of the air suspension industry market          

In 2023, the sales volume of new vehicles equipped with air suspension as standard in China was about 564000, with a penetration rate of 2.7%. Compared with 238000 and a penetration rate of 1.2% in 2022, the year-on-year increase in assembly volume was as high as 137%. The air suspension penetration rate of mid-to-low-priced passenger cars is low, and with the increase of domestic substitution and self-made rate, the air suspension penetration rate of mid-to-low-priced passenger cars is expected to increase rapidly. In 2023, the market size of air suspension in Chin exceeded 20 billion yuan, with a year-on-year growth rate of 51.7%. It is expected that by 2028, the air suspension market size will reach nearly 60 billion yuan.

In 2024, driven by a series of factors such as national policy support, increased demand for comfort, increased penetration rate of new energy vehicles, and declining domestic substitution prices, the development of the air suspension was accelerated. Data shows that from January to April 2024, the sales volume of new cars with standard air suspension in China was about 189000, with a penetration rate of 3%, while in the same period in 2023, was only 135000, with a penetration rate of 2.4%, and the year-on-year increase in installed capacity was as high as 40%.

In the field of commercial vehicles, the penetration rate of air suspension in the European and American markets is relatively high, the penetration rate of high-end large buses has reached 100%, and the penetration rate of medium and heavy trucks and trailers has also exceeded 80%. However, in China, the air suspension market has just begun, and there is vast room for improvement in penetration rate. In addition, in the field of commercial vehicles, there are mandatory regulations for the installation of air suspension in hazardous chemical transport vehicles, and the penetration rate is expected to accelerate in the future.

(3) Development trend of air suspension

① Air spring suspension becomes an incremental configuration for new energy vehicle models

Compared with the traditional suspension system, the air spring suspension exhibits superior performance in multiple indicators related to the driving and riding experience of new energy vehicles, such as vehicle safety, driving and riding comfort and energy efficiency.

The air spring suspension can significantly improves driving safety and handling stability. When the vehicle is steering or accelerating rapidly, the pitch and roll of the body can be effectively controlled by adjusting the damping of the shock absorber. In the event of lateral instability or emergency braking of the vehicle, it can reduce the load on the wheels by adjusting the damping of the shock absorbers, thereby increasing the friction between the tires and the ground to ensure a safer driving.

In terms of riding comfort, the air spring suspension also performs well. By adjusting the piston stroke, airbag size and internal pressure of the air spring, it can reduce the natural vibration frequency of the vehicle body to about 1 Hz, which is most comfortable for the human body, thus effectively avoiding dizziness and other discomfort for passengers. At the same time, it can also effectively isolate high-frequency noise, optimize the acoustic environment in the vehicle, and actively adjust the height of the vehicle body to improve its passability, and provide convenience for passengers to get on and off the vehicle, thus greatly enhancing the driving and riding experience.

In addition, the air spring suspension also has excellent economy. Its height control valve can intelligently adjust the vehicle body height, and when the vehicle accelerates, it reduces wind resistance by lowering the vehicle body height, thus reducing energy consumption. This feature reduces fuel consumption by about 2 to 3% for fuel vehicles and about 5% for electric vehicles.

On the whole, the superior performance of the air spring suspension just meets the new needs brought about by the electrification and intelligence of automobiles. Especially for electric vehicles, due to the increase in battery mass, the spring-loaded mass of the vehicle increases, which in turn compresses the spring travel, and affects the damping effect of the vehicle on bumpy roads. The stiffness curve design of air spring suspension is flexible and can effectively solve this problem.

The air spring suspension not only helps to reduce energy consumption, thereby improving the driving range of electric vehicles and alleviating range anxiety, but also its matching electronic control system and sensors can be better combined with the intelligent system to promote the dual improvement of vehicle performance and user experience.

② Domestic air spring suspension has become dominant

It is worth noting that while the overall scale of the air spring suspension market is expanding, the market share has also changed. From the perspective of the competitive landscape, domestic air spring suspension suppliers are gradually occupying a dominant position in the market. Statistics show that in the ranking of installed volume of air spring suspension suppliers in the first three months of 2024, KHAT ranked first with 58122 sets of installed capacity and 48.2% market share, demonstrating its strength and advantages in the field of air spring suspension. Baolong Technology followed closely behind, ranking second with 29122 sets of installed capacity and 24.2% market share, also showing remarkable competitiveness. Vibracoustic, Tuopu Group and Continental ranked third, fourth and fifth, respectively. Other companies have 1888 sets of installed capacity and a market share of 1.6%. From the ranking, it can be seen that local suppliers KHAT and Baolong Technology have gained certain advantages.

In the past two years, the competitiveness of domestic air spring suspension has been continuously improving, and the cost of air spring suspension has also been decreasing, which in turn has led to the enhancement of the willingness of automobile enterprises to configure, which has brought opportunities for market breakthroughs for domestic air spring suspension suppliers.

1.1.3 Technical analysis

The automotive air suspension system produced by the project is equipped with CCD electromagnetic damping system and adopts the skyhook control technology, which makes the chassis response more quickly, improves the vehicle handling, and truly realizes the stability and immobility of the vehicle body and the adjustment of the wheels. The air spring can automatically adjust the spring stiffness when the load changes, keep the offset frequency of the suspension unchanged, absorb the bouncing potential energy and filter the vibration, and moreover, it can rely on the CCD electromagnetic damping system to achieve millisecond-level damping adjustment, and then use the hydraulic bushing to isolate the low-frequency vibration in the three directions of transverse, longitudinal and vertical axes.

1.1.4 Advantageous conditions of project construction

(1) Policy conditions

The 14th Five-Year Plan for the National Economic and Social Development of Jilin Province and the Outline of the Long-term Vision Goal for 2035 proposes that by 2025, the local supporting rate of parts in Jilin Province will reach 70%, and the scale of the automotive industry will exceed one trillion yuan.

On May 22, 2024, the General Office of the People's Government of Jilin Province issued the Action Plan for the High-Quality Development of New Energy and Intelligent Connected Vehicle Industry in Jilin Province, proposing that by 2026, the development layout of the province's new energy and intelligent connected vehicle industry will be more optimized, and the industrial scale and competitiveness will rank among the top in China. The production and sales of new energy vehicles in the province will exceed 500000, with the penetration rate of domestic brand new energy vehicles exceeding 40%. The local supporting rate of key parts in new energy has increased significantly, accounting for 70%.

In February 2023, the Jilin Provincial People's Government issued the Opinions of Jilin Provincial People's Government on the Implementation of the "Step up" Project of the Automotive industry Cluster, proposing that by 2025, the strength of the industrial clusters will be further enhanced, the industrial ecology will be comprehensively constructed, and the industrial scale will reach trillions of yuan; a new development pattern will be constructed with the Changchun automobile cluster as the core, and Jilin, Siping, Liaoyuan, Songyuan, Baicheng, Yanbian, Meihekou and other regions as specialized "supporting clusters" to coordinate and interconnect. FAW Group will be built as a world-class enterprise, Changchun will be built as a world-class automobile city, a new energy vehicle enterprise and brand will be introduced, a number of key parts enterprises will be cultivated, a number of innovation platforms will be created, a number of industry-education integration projects will be promoted, a number of key technologies will be broken through, and a number of application scenarios will be built, basically forming a new ecology of the new energy vehicle industry. The new energy vehicle industry chain and supply chain will serve the whole country and have a certain international radiation ability.

In 2020, the Office of the People's Government of Liaoyuan City issued the Implementation Measures for the Flexible Transfer of Industrial Land in Liaoyuan City (Trial), proposing: the supply of industrial land by means of flexible period, lease before transfer, combination of lease and transfer, and long-term lease shall be provided through bidding, auction and listing in accordance with the law; in principle, the flexible transfer period of industrial land shall be 10, 20, 30 and 40 years. Enterprises are allowed to voluntarily choose the land use right transfer period among the above periods. The Implementation Measures has improved the land supply system in Liaoyuan City while reducing the cost of industrial land.

(2) Resource advantages

In recent years, Liaoyuan City has continued to optimize and adjust the energy structure, fully launched the construction of a clean energy heating demonstration city in the north, and carried out 47 clean heating transformation projects such as "coal to gas" and "coal to electricity", which is expected to reduce coal consumption equivalent to 510000 tons of standard coal. In addition, Liaoyuan is rich in wind energy, solar energy, biomass energy and other resources, providing support for the construction of green and low-carbon projects.

(3) Industrial advantages

In recent years, Jilin Province has made every effort to promote the "six returns", break down the barriers of coordination, gather the strength of all parties, integrate industrial resources, continue to enhance the resilience of the industrial chain and supply chain, and the modern industrial system has become increasingly mature. It strives to transform industrial advantages into Jilin's revitalization advantages.

Liaoyuan City and its surrounding areas have abundant raw material resources, including basic materials such as gas springs, air pipes, valves, shock absorbers, as well as high-strength rubber, composite materials, steel, aluminum, plastic, sealing materials, etc., which are conducive to ensuring the supply of raw materials for the project and reducing production costs.

In order to consolidate and expand industrial advantages and strengthen the automotive industry cluster, in recent years, Liaoyuan City has strengthened cooperation with FAW Group, scientifically formulated the Implementation Plan for the Construction of New Energy Vehicle industry Supporting Base in Liaoyuan, compiled the New Energy Vehicle Parts Industry Development Plan for Liaoyuan City (2021-2025), and created two platforms: New Energy Vehicle Industrial Park and Dongliao Mold Industrial Park in the High-tech Zone.

In addition, Liaoyuan High-tech Industrial Development Zone, Jilin Province has planned a 4-square-kilometer automotive parts industrial park, focusing on the development of automotive parts and equipment manufacturing related industries.

(4) Talent advantages

Liaoyuan City is rich in human resources, and there are vocational colleges in the urban area, which can train talents according to the needs of enterprises. Liaoyuan City has a good foundation for industrial development, only 115.13 kilometers away from Changchun, a well-known "University City" and "Automobile City", which can meet the various talent needs of enterprises.

(5) Location and transportation advantages

Liaoyuan has obvious geographical advantages, 140 kilometers away from Changchun Longjia International Airport in the north and 240 kilometers away from Shenyang Taoxian International Airport in the south. It is located in the important axis belt of Changchun one-hour economic circle and Shenyang Railway urban agglomeration. Within a radius of 200 kilometers, there are 2 provincial capitals and 8 prefecture-level cities, with a population of nearly 40 million. The urban area has built a transportation network of "three rings, four verticals and six horizontals". The inter-regional highway and railway traffic is developed, No. 303 National Highway and Siping-Meihekou Railway run through the whole territory, and Liaoyuan-Xifeng, Liaoyuan-Changchun Railways, Changchun-Liaoyuan, Yingchengzi-Meihekou, Jilin-Caoshi, Liaoyuan-Xifeng Expressways, and Liaoyuan Civil Airport that will be built soon, constitute a comprehensive transportation system for entering the hinterland of the Northeast, the sea and customs.

1.2 Contents and scale of project construction

1.2.1 Product scale

After the completion of the project, an annual production capacity of 1 million sets of automotive air suspension assemblies will be formed.

1.2.2 Contents of project construction

The project covers an area of 200 acres, with a construction area of 84413.25 square meters, mainly includes the construction of production workshops, research and development comprehensive buildings, staff dormitories, staff canteens, warehouses, and other ancillary buildings, as well as the purchase of production and auxiliary equipment.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 499.7572 million yuan, including the construction investment of 349.8372 million yuan and the current funds of 149.92 million yuan.

1.3.2 Capital raising

Self-raised by enterprise

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 420 million yuan, its profit will be 83 million yuan, its investment payback period will be 8.1 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 16.5%.

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

1.4.2 Social evaluation

Through the construction of the project, it can promote the development of the automotive parts industry in Liaoyuan City, extend the automotive parts industry chain, drive the development of upstream and downstream industries, and form industrial agglomeration; at the same time, it can provide more employment positions for the local area, improve people's living standards, and promote the harmonious development of society.

1.5 Cooperative way

Joint venture, cooperation and other ways can be interviewed

1.6 What to be invested by the foreign party

Funds and other ways can be interviewed

1.7 Construction site of the project

Liaoyuan High-tech Industrial Development Zone, Jilin Province.

1.8 Progress of the project

Attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Liaoyuan High-tech Industrial Development Zone, Jilin Province

Address: No. 1633 Caifu Road, Liaoyuan City

2.2 Overview

Liaoyuan High-tech Industrial Development Zone was established in 2001. In 2019, it was approved by the Jilin Provincial People's Government to be established as a provincial-level high-tech industrial development zone, with a planned area of 16.22 square kilometers and a total population of 29000. Located in the axis belt of the two major economic zones of Changchun and Shenyang, it is 100 kilometers away from Changchun in the north, 200 kilometers away from Shenyang in the south and 500 kilometers away from Dalian Port. No. 303 National Highway and Siping-Meihekou, Liaoyuan-Xifeng, Liaoyuan-Changchun Railways run through the whole territory, forming a comprehensive transportation system that extends in all directions with Changchun-Liaoyuan, Yitong-Kaiyuan, Yingchengzi-Meihekou, Jilin-Caoshi Expressways. As the core of Jilin Province's southward opening portal, it plays an important role in the construction of innovation and transformation core area in the central part of Jilin Province.

As the core of scientific and technological innovation, the engine of industrial upgrading, the window for attracting investment, and the leader of economic development, Liaoyuan High-tech Zone actively cultivates new kinetic energy for development, takes the road of characteristic development and differentiated development, promotes innovation and entrepreneurship, improves the quality of supply, and opens a new model of coordinated development of industrial clusters and chain industries. It has been listed as a pilot for regional brand construction of national industrial clusters, a provincial-level demonstration base for mass entrepreneurship and innovation, a national demonstration base for entrepreneurship and innovation of small and micro enterprises, and a demonstration base for new industrialization industries.

In recent years, Liaoyuan High-tech Zone has accurately planned and positioned itself, forming a functional layout of "dual-core drive, one district and four parks", and the large-scale and cluster expansion of "4+1 industry", with 2111 enterprises settled. The textile hosiery industry is unique, supporting the reputation of "China's Cotton Socks Capital" and "China's Famous City of Hosiery", and the production and sales of cotton socks rank first in the country. It has successively become a national-level export hosiery product quality and safety demonstration zone and a national-level foreign trade transformation and upgrading base; the extrusion technology of high-precision aluminum profiles is the world leading. With Qixing Aluminum Industry, Jusheng Light Alloy and Liyuan Precision Manufacturing as the leaders, the northern high-precision aluminum processing base has been built, and the market share of high-speed train body profiles accounts for nearly 60% in China. Lightweight products have jumped into the high-end market, and it has become an important strategic partner with Fortune 500 companies such as CRRC, Siemens, Alstom, and Bombardier; the pharmaceutical and health industry has obvious advantages. It has 176 drug numbers and is building a pharmaceutical fine chemical park covering an area of 2.62 square kilometers. Under the leadership of many key enterprises such as Boda Pharmaceutical, Boda Weiye, Baikang Pharmaceutical, Yinying Pharmaceutical, etc., the research and development system of anti-tumor drugs, anti-virus drugs, and health care products has become increasingly mature, and it has become the largest production base of chemical raw medicines in Jilin Province; the scale of the supporting industry for new energy vehicles has expanded rapidly; it plans to build a 4 square kilometer new energy vehicle supporting industrial base, forming a new energy vehicle supporting industrial system with Hongtu Lithium-ion Battery Separator, Sinopoly New Energy, Joyson Electronics, Shengyuan New Materials, and Jincheng Heavy Industry as the core, and has been designated as a strategic partner of FAW by the provincial government and signed a strategic cooperation agreement with FAW-FINDREAMS. The modern service industry promotes the integration of industry and city. It will vigorously develop productive and living service industries, actively promote the construction of JD.com, Yunxiang Smart Logistics Industrial Park, Holiday Inn Express Qixing, New Century Hotel, Ouya Shopping Center Phase II and other projects, and water, electricity, gas and other productive factors are fully guaranteed. It will plan Beijiang Commercial Street, revitalize Interlaken Square, renovate Youyi Road Commercial Street, and comprehensively create a characteristic commercial block integrating leisure, entertainment, catering, accommodation, commerce and other formats, as well as eating, drinking, playing and shopping.

2.3 Contact method

Postal code: 136299

Contact person: Song Yang

Tel: +86-437-3292088

Fax: +86-437-3292088

E-mail: jllyjk@163.com 

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

Contact unit: Liaoyuan Municipal Bureau of Commerce

Contact person: Ai Jing

Tel: +86-18643787709

E-mail: lyjhjxmc@163.com