1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Automotive electronics is a general term for all electronic equipment and electronic components installed in automobiles, and it is an industry formed by the application of electronic information technology to the automotive field, and the electrification of automotive parts forms automotive electronic products.

The construction site of the project is located in Liaoyuan High-tech Industrial Development Zone, Jilin Province, relying on the existing industrial foundation of Liaoyuan City, through cooperation with large domestic enterprises in this field, to produce automotive electronic products such as automotive instruments and in-vehicle audio-visual entertainment equipment.

1.1.2 Market prospect

(1) Market prospect of automotive electronic products

In recent years, with the continuous innovation and development of electronic information technology and people's pursuit of safety, comfort and entertainment in driving, the application field of automotive electronic technology in automobiles has been expanding day by day, and the level of automotive electronics has become the key to differentiated competition in vehicles. At present, the development trend of vehicle intelligence, networking and electrification has promoted the deepening of the application of automotive electronic technology. On the one hand, automobiles have gradually evolved from means of transportation to a combination of transportation, entertainment, office and communication, becoming the third space after homes and offices, and the penetration rate of in-vehicle navigation, Internet of Vehicles, entertainment systems and image systems continues to increase; on the other hand, automotive electronics gradually replace machinery to play a role, engine management system, transmission management system, steering system and other electronic control technology has been relatively mature, and are gradually penetrating from high-end models to mid- to low-end models. With automotive electronic systems more and more becoming the "standard configuration" of automobiles, the vigorous promotion of new energy vehicles, and the development of Internet of Vehicles, autonomous driving technology and artificial intelligence technology, the future application space of automotive electronics will be more extensive.

At present, the degree of application of automotive electronics technology has become the main indicator to measure the level of the vehicle. With the increasing application proportion of electronic control systems and in-vehicle electronic and electrical products in automobiles, the proportion of automotive electronics in the cost of the vehicle continues to rise. According to public information, the proportion of automotive electronics in the cost of domestic compact passenger cars is about 15%, the proportion of automotive electronics in mid-to-high-end passenger cars is about 28%, and the proportion of automotive electronics in new energy vehicles is as high as 47%-65%. It is expected that high-end configurations will gradually penetrate into low-end cars in the future, which will bring about the proportion of automotive electronics in the cost of passenger cars continues to increase, and the global proportion of automotive electronics in the value of the vehicle is expected to rise from 34.3% in 2020 to 49.6% in 2030.

At present, the automotive electronics industry covers multiple segments such as reversing radar, central control screen, parking image system, cruise control system and so on. From the perspective of penetration rate, reversing radar has the highest market penetration rate of 86.25%. Secondly, the penetration rate of central control screen is 85.57%, parking image system is 78.50% and cruise control system is 72.58%. In addition, the penetration rate of other segmented markets is relatively low, mostly of them below 40%, with a large room for market improvement.

After years of development, China's automotive electronics industry has formed three major industrial clusters. The first is the Yangtze River Delta automotive electronics industry cluster with Jiangsu and Zhejiang as the core. The second is the Pearl River Delta industrial cluster with Guangzhou and Shenzhen as the core. The third is the Bohai Rim Industrial Belt dominated by Beijing and Tianjin. In addition, the northeast industrial cluster dominated by Dalian, Shenyang and Changchun, and the automotive electronics industry in the central and western regions such as Wuhan, Xi'an, Chongqing and Chengdu have also gradually grown.

From the perspective of the industrial chain, the upstream of the automotive electronics industry is mainly suppliers of automotive electronic components and parts, mainly including electronic components, structural parts and printed circuit boards; the midstream is automotive electronics manufacturing, which can be divided into two categories: body electronic control system and in-vehicle electronic system; the downstream is the field of automobile manufacturing.

China is the world's largest automobile manufacturing and consumption country. Data show that from 2020 to 2023, China's automobile production had been a growth trend, with a total of 30.113 million vehicles produced by 2023, a year-on-year increase of 9.30%; from January to July 2024, China's automobile output was 16.248 million, a year-on-year increase of 4.50%.

The development of the automotive industry has also driven the growth of the automotive electronics industry, coupled with current development towards intelligent and connected automobiles, which has further driven the development of the automotive electronics industry. From the perspective of market size, the market size of China's automotive electronics industry in 2022 was 978.3 billion yuan, a year-on-year increase of 10%; the size of China's automotive electronics market is reached about 1.1585 trillion yuan in 2024.

(2) Prospect of automotive instrument market

As an important component in the interior of the automobile, the automotive instrument not only provides the driver with key driving information, but also is a direct reflection of the progress of automotive technology and design. With the rise of China's automobile production and sales, the demand for automotive instruments has also risen.

In recent years, the market size of China's automotive instrument industry has been continuously expanding, showing a steady growth trend. According to statistics, the market size of China's automotive instruments exceeded 10 billion yuan in 2022 and is expected to reach about 15 billion yuan by 2025. The growth rate of this data far exceeds that of the traditional automotive parts industry, showing that the huge development potential of the automotive instrument industry.

The automotive instrument industry will continue to develop in the direction of intelligence, integration and personalization. With the continuous application of new technologies and the continuous change of market demand, automotive instruments will become more intelligent, efficient and personalized, providing drivers with a safer, more comfortable and convenient driving experience. At the same time, manufacturers also need to constantly innovate and improve to adapt to market changes and meet consumer needs.

(3) Market prospect of in-vehicle audio-visual entertainment equipment

The in-vehicle infotainment system is an in-vehicle integrated information processing system based on the body bus system and Internet services using a dedicated in-vehicle central processing unit. IVI can realize a series of applications including three-dimensional navigation, real-time road conditions, IPTV, assisted driving, fault detection, vehicle information, body control, mobile office, wireless communication, online-based entertainment functions and TSP services, which greatly improves the level of vehicle electronization, networking and intelligence.

The most critical hardware conditions for driving the in-vehicle entertainment revolution have been fundamentally improved. The popularity of large-size and high-resolution display screens has created ideal conditions for in-vehicle video entertainment, while the wide glass instrument panels and large passenger-specific screens provide new space for innovative visual experiences.

With the continuous upgrading of human-vehicle interaction demands, in-vehicle display products are gradually diversified, from a single central control screen to LCD instrument screens, front passenger seat entertainment screens, rear entertainment screens, HUDs, etc. In the next 1-2 years, the average number of screens installed in a single vehicle by automobile manufacturers may reach 7, with the overall value of over 10000 yuan for displays in a single vehicle, and the value of the standard products reaches 5189 yuan.

5G communication technology, the representative of the fifth generation of mobile communication technology, has brought an unprecedented communication experience with its advantages of ultra-high speed, low latency, and large connectivity, which will further promote the innovation and development of autonomous vehicle technology. Data shows that the scale of the intelligent connected automotive industry is grow from 165.6 billion yuan in 2019 to 1.31204 trillion yuan in 2024, with a compound annual growth rate of over 50%.

The extensive coverage of the 5G network not only empowers autonomous driving, which has attracted the considerable attention from the industry and consumers, but also provides a network guarantee for smooth high-definition in-vehicle videos. By combining the display screen with the internet, the in-vehicle platform realizes the seamless integration of multiple entertainment experiences from broadcasting, video to games, creating a new world of in-vehicle entertainment for consumers. This trend has already triggered potential changes in consumer demand. Emerging application scenarios such as multi-screen interaction and low-latency games have attracted great attention from young people. Under the premise of hardware conditions, consumers expect to get an entertainment experience in the vehicle that is comparable to that at home and mobile media, which further promotes the upgrading and replacement of in-vehicle entertainment systems.

In summary, the project has a broad market prospect.

1.1.3 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.

In January 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 June 2023, the Ministry of Industry and Information Technology issued the Implementation Opinions on Improving the Reliability of the Manufacturing Industry, focusing on wire-controlled chassis systems such as steer-by-wire, brake-by-wire, automatic shifting, electronic throttle, and suspension systems; autonomous driving systems such as high-precision cameras, lidars, basic computing platforms, and operating systems; intelligent cabin systems such as in-vehicle infotainment, in-vehicle monitoring, and in-vehicle display screens; and key networking components such as in-vehicle networking terminals and communication modules. In December 2023, the National Development and Reform Commission issued the Directory Catalogue on Readjustment of Industrial Structure (Version 2024), which listed "automotive electronic control systems: engine control system, transmission control unit (TCU), electronic stability control system (ESC), network bus control system, electronically controlled intelligent suspension, predictive cruise control system (PCC), LIN-controlled generator, visual fuel-saving driver assistance system, etc." as encouraged categories. The introduction of a series of favorable policies has provided important guidance and assistance for the continuous optimization and upgrading of local enterprise business, the continuous improvement of market competitiveness and the sustainable and healthy development of China's automotive electronics industry.

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.

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, the annual production capacity of 1 million automotive instruments and 1.5 million sets of in-vehicle audio-visual entertainment equipment will be built.

1.2.2 Contents of project construction

The project covers an area of 100000 square meters, with a construction area of 80000 square meters, production plants, warehouses, research and development rooms, equipment rooms, etc. will be mainly built, and production lines will be purchased.

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 800 million yuan, including the construction investment of 640 million yuan and the current funds of 160 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 860 million yuan, its profit will be 123 million yuan, its investment payback period will be 8.5 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 15.4%.

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