1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The project is planned to use the standardized production workshops in New Energy Industrial Park, High-tech North District, Jilin City to build production lines with an annual output of 500000 sets of automotive parts (mainly automotive interior and external plastic parts) and other supporting auxiliary facilities.

As the upstream of the automotive industry, the automotive parts industry provides corresponding parts products for the automobile manufacturing industry, which is an important foundation for the sustainable and healthy development of the automotive industry and an important cornerstone of the "automotive power strategy".

Relying on the advantageous industrial foundation of new materials and carbon fiber in Jilin City, the project provides supporting facilities for the automotive industry in Changchun City, and the supply and demand of the upstream and downstream industries of the project are guaranteed.

1.1.2 Market prospect

(1) Analysis of the current situation of the automotive parts market

With the continuous improvement of the domestic automotive parts manufacturing level and the development of new energy vehicles, the automotive parts industry has also developed rapidly.

As a large country of automobile production and sales, China has been ranked first in the world for 14 consecutive years, and in recent years, the supply system of China's automotive parts industry has gradually improved, forming the world's largest industrial system with complete categories and complete supporting facilities.

The revenue of the automotive parts manufacturing industry in 2022 was approximately 4.1953 trillion yuan, a year-on-year increase of 3.16%, and was approximately 4.4086 trillion yuan in 2023. The revenue of the automotive parts manufacturing industry further increased to 4.62 trillion yuan in 2024.

The automotive parts investment and financing market is a complex and active field, and its dynamics are affected by a variety of factors. In recent years, investment and financing activities in China's automotive parts market have become increasingly frequent, and the scale of investment has been expanding. In 2023, there were a total of 109 automotive parts investment events, with a disclosed financing amount of 14.527 billion yuan. In the first half of 2024, there were a total of 51 automotive parts investment events, with a disclosed financing amount of 6.452 billion yuan.

(2) Analysis of automobile production and sales

In 2024, China's automobile production and sales reached 31.282 million and 31.436 million respectively, an increase of 3.7% and 4.5% year-on-year, with production and sales reaching new highs. Specifically, the continuous growth of passenger car production and sales plays a positive role in stabilizing the basic foundation of automobile consumption.

In 2024, the production and sales of passenger cars reached 27.477 million and 27.563 million respectively, an increase of 5.2% and 5.8% year-on-year. China's passenger car production and sales have remained above 25 million for two consecutive years. In 2024, the production and sales of commercial vehicles reached 3.805 million and 3.873 million respectively, a year-on-year decrease of 5.8% and 3.9%. Among the main varieties of commercial vehicles, compared with 2023, the production and sales of passenger cars increased slightly, while the production and sales of trucks decreased slightly.

New energy vehicles continue to grow rapidly, with annual production and sales exceeding 10 million for the first time. In 2024, the production and sales of new energy vehicles reached 12.888 million and 12.866 million respectively, an increase of 34.4% and 35.5% year-on-year. The sales of new energy vehicles accounted for 40.9% of the total sales of new vehicles.

Automobile exports have reached a new level. In 2024, automobile exports reached 5.859 million, a year-on-year increase of 19.3%. By vehicle model, the export of passenger cars reached 4.955 million, a year-on-year increase of 19.7%; the export of commercial vehicles reached 904000, a year-on-year increase of 17.5%.

(3) Development trend

Electrification and intelligence have become the two main trends in the development of the automotive parts industry. The demand for electrified accessories has surged, and core parts such as batteries, motors, and electronic controls have become the focus of market competition. With the rapid development of the new energy vehicle market, there is a growing demand for high-performance and high-quality automotive parts. This has brought new growth points and development opportunities for the automotive parts industry. The development of new energy vehicles needs to be supported by a complete parts supporting system. The trend of intelligence and networking is accelerating, and the demand for high-tech accessories such as intelligent driving assistance systems and on-board Internet devices continues to grow, improving the intelligent level of automobiles and bringing consumers a more convenient and safe driving experience.

(4) Policy support and market environment

China's automotive parts industry is highly valued by the government and supported by national industrial policies. A number of policies encourage the development and innovation of the automotive parts industry, such as Consolidating the Upward Trend of Rebounding and strengthen the revitalization of the industrial economy, Notice on Several Measures to Invigorate Automobile Circulation and Expand Automobile Consumption, etc. Relevant policies are mainly focused on two aspects, one is to promote automobile consumption and support the overall development of the automotive industry; the second is to vigorously develop new energy vehicles. The development of new energy vehicles needs to be supported by a complete parts supporting system. Therefore, the automotive parts industry will actively adapt to the development trend of new energy vehicles and increase the research and development and production efforts of related products.

(5) Current Situation of Automotive industry in Jilin Province

The automotive industry is the leading industry in Jilin Province and one of the three trillion-level industries that Jilin Province focuses on building. After nearly 70 years of development, it has formed a full range of vehicle models with China FAW as the core, and products covering light, medium and heavy trucks, all levels of passenger cars, cross passenger cars, large and medium-sized buses and micro trucks, etc., with a complete vehicle research and development and manufacturing system. It has independent brands such as Hongqi, Jiefang, and Bestune, as well as joint venture brands such as Volkswagen, Audi, and Toyota. The total output of automobiles is 1.36 million, and the overall scale ranks steadily in the “first phalanx” of the country.

Jilin Province has a number of passenger cars, commercial vehicles, and special-purpose vehicle enterprises, with 5 existing vehicle manufacturers (China FAW Group Co., Ltd., FAW-Volkswagen Automotive Co., Ltd., FAW Toyota Motor Co., Ltd. Changchun Fengyue Branch, FAW Jilin Automobile Co., Ltd., Yanbian Guotai New Energy Vehicle Co., Ltd.),and an annual production capacity of 2.08 million. Jilin Province gives full play to the role of the automotive industry as a ballast, and starting the "step-up" project of the automotive industry cluster; it will make every effort to build a world-class advanced manufacturing cluster for automobiles, and concentrate effects on accelerating the construction of 238 "step-up" projects; promote Changchun City to be successfully selected as one of the first pilot cities in the national pilot area for comprehensive electrification of public sector vehicles; the production and sales of vehicles in the context of provincial-owned scope increased by 16.7% and 17.6% year-on-year respectively, of which the production and sales of Hongqi brand increased by 12.5% and 13.1% respectively.

There are 441 automotive parts enterprises above designated size in the province, covering various fields such as power system, body system, chassis system, etc., with a complete range of automotive parts products. Around the supply chain of China FAW, Changchun City has developed a relatively complete automotive industry ecology with supporting parts and upstream and downstream extension of the industry, and the number of enterprises above the designated size accounts for more than 90% of the province.

As an old industrial base in Northeast China, Jilin Province has continuously developed and innovated in many fields such as automobiles, precision instruments, and applied chemistry research through independent innovation, relying on the superior resources of Jilin University, Northeast Normal University, Changchun University of Science and Technology, Changchun Institute of Optics, Fine Mechanics and Physics, Chinese Academy of Sciences, Changchun Institute of Applied Chemistry, Chinese Academy of Sciences and other colleges and universities and national key scientific research institutions. At present, FAW Research and Development Institute ranks first among national automotive technology centers and ranks first among independent brand vehicle enterprises in terms of the number of patents authorized.

Keeping in mind the clear requirements of General Secretary Xi Jinping's "embarking on a new road of revitalization and development", and based on the actual situation of Jilin, Jilin Province proposes to promote the "six returns" in various industries, namely: "the return of production scheduling, the return of production capacity, the return of supporting facilities, the return of settlement, the return of talents, and the return of innovation". It gathers potential energy with the "six returns" to promote the transformation of developing quality, efficiency and power. This is an important measure for Jilin Province to enhance the resilience of industrial chain and supply chain, promote the agglomeration of industrial clusters, and build a modern industrial system.

1.1.3 Technical analysis

The project is for the production of automotive parts, and the technology used is mature, with large-scale production capacity.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The automobile industry is an important pillar industry of the world economy, and the automotive parts industry is the foundation of the automobile manufacturing industry. In recent years, China has issued policies such as the Directory Catalogue on Readjustment of Industrial Structure (Version 2024), the Medium and Long-term Development Plan for the Automobile Industry, the Regulations on the Investment Management of the Automobile Industry, the Made in China 2025, the Intelligent Vehicle Innovation and Development Strategy, and the New Energy Vehicle Industry Development Plan (2021-2025), proposing to support the advantageous characteristics of the parts enterprises to be stronger, and to cultivate leading component enterprises with international competitiveness; to accelerate the development of the automotive aftermarket and service industry; to enhance international competitiveness and to promote the sustained, healthy and stable development of China's automobile and component exports; to support backbone enterprises in automotive parts to expand their scale through mergers and reorganizations, and to increase their domestic and foreign automotive supporting market share. The above relevant policies fully demonstrate the determination of the country to encourage the development of the automotive and supporting parts industry, providing a favorable policy environment for the development of the industry.

The Notice on Policies and Measures to Accelerate the Construction of the Auto Parts Industry System issued by Jilin Province supports the collaborative innovation and development of parts enterprises and the vehicle industry, vigorously improves the localized supporting rate, and creates an open and internationally advanced automotive parts industry ecosystem.

The Action Plan for the High-Quality Development of New Energy and Intelligent Connected Vehicle Industry in Jilin Province proposes that by 2026, the production and sales of new energy vehicles in the province will reach 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%. Focusing on this goal, 16 main tasks in six aspects will be implemented, including accelerating the improvement of innovation capabilities, strengthening and expanding independent brands, developing demonstration applications with high quality, further promoting the consolidation, supplementation and strengthening of the industrial chain, promoting the integrated development of industrial ecology, and actively promoting the internationalization of the enterprise development.

(2) Park advantages

High-tech North District, Jilin City is located in the northwest of Jilin City, between Jilin-Changchun Expressway and Jichang North Line, east to South Sandao Village, west to Sodeng River. The total planning area is 108 square kilometers, with an approved area of 31.5 kilometers. Currently, about 60% of it has been built, mainly for industrial land, logistics land, service facility land, and part of agricultural facilities land.

The new energy industrial park in High-tech North District, Jilin City covers an area of more than 70000 square meters, with a total construction area of 59200 square meters. Research and development centers, standard workshops, equipment rooms, comprehensive buildings and related supporting public works are built, with workshop in standard height, flat field in the site, and water, electricity, heating, communications, etc., having been connected and usable.

(3) Industrial advantages

The upstream of the automotive parts industry chain is raw materials, mainly including steel, carbon fiber, non-ferrous metals, etc. Jilin City has certain advantages in the production of raw materials. Jilin City is the old industrial base city in Northeast China, known as the cradle of the national chemical industry, the first metallurgical industrial base, and the mother of hydropower in New China. It has contributed the first bag of fertilizer, the first barrel of dye, and the first furnace of calcium carbide to the country. In terms of chemical industry, it has nearly 1000 chemical industrial scale or above devices, and the production capacity of 11 sets of devices, such as methyl isobutyl ketone and methyl methacrylate, ranks among the top three in China. The construction of the 1.2-million-ton ethylene transformation and upgrading project of Jilin Chemical Industrial Co., Ltd., with a total investment of 33.9 billion yuan, is progressing in an orderly manner, which is the largest single investment industrial project in our province since the founding of New China, and is also the first chemical project of China National Petroleum Corporation to use all green electricity. After the completion and putting into operation, China National Petroleum Corporation, Jilin Chemical Industrial Co., Ltd. will march to the world's first-class enterprises. In terms of carbon fiber industry, it has the only "national-level carbon fiber high-tech industrialization base" approved by the Ministry of Science and Technology of the People's Republic of China, forming the most complete carbon fiber industrial chain in China from "acrylonitrile - acrylonitrile-based raw silk - carbon silk - downstream products", with the world's largest raw silk production capacity, the largest carbon silk production capacity in China and the second largest in the world. In terms of metallurgical industry, there are the largest metallurgical base in the province and two national-level metallurgical technology centers. Jianlong Group has become the largest steel production enterprise in the province. In terms of energy industry, it has advantageous hydropower resources, and the Jiaohe Pumped Storage Power Station with a total investment of 7 billion yuan, has been fully launched, marking the start of construction of China's first 10 million kilowatt pumped storage base.

(4) Talent advantages

Jilin City has Northeast Electric Power University, Jilin Institute of Chemical Technology, Beihua University, Jilin College of Agricultural Science and Technology, Jilin Medical College, Jilin Electronic Information Vocational and Technical College, Jilin Industrial Vocational and Technical College, Jilin Railway Vocational and Technical College, Jilin General Aviation Vocational and Technical College, etc., which have set up automobile-related majors to provide a continuous supply of talent support for automotive parts production enterprises.

At the same time, Jilin City has a large number of high-quality industrialized workers, after training by enterprises and public welfare organizations, more than 10000 skilled talents are sent to the society every year, and more than 20000 people are trained for the society. The advantage of labor resources is obvious, the proportion of skilled workers is at a high level in the Northeast urban agglomeration, the labor force is in the dividend period, and the labor cost is relatively low, which can meet the needs of various enterprises.

(5) Location and transportation advantages

Jilin City's highways, railways, aviation and other transportation systems have major passages within the scope of Jilin Economic and Technological Development Zone. It is 85 kilometers away from Changchun City, the provincial capital and 60 kilometers away from Longjia International Airport. Railway transportation: the main railway line in Northeast China, Changchun-Tumen Railway, runs through the zone, and there are two intermediate railway stations in the zone, namely Jiu Station and Xinjiu Station; the newly opened Changchun-Jilin Intercity Passenger Dedicated Line has Shuangji Railway Station in the zone. Highway transportation: Changchun-Hunchun Expressway, the main line of the Northeast Expressway network, has an exit in the Economic Development Zone. Air transportation: only 60 kilometers away from Changchun Longjia International Airport. Water transportation: Songhua River Jilin Port is located in the Economic Development Zone, which has formed a three-dimensional transportation advantage of water, land and air. Jilin City is adjacent to Changchun City and is located within the supporting radius of CRRC Changchun Railway Vehicles Co., Ltd.

1.2 Contents and scale of project construction

1.2.1 Construction scale

The project has an annual output of 500000 sets of automotive parts.

1.2.2 Construction content

The project is planned to use the standardized production workshops in New Energy Industrial Park, High-tech North District, Jilin City to build its own automotive parts production lines and other supporting auxiliary facilities.

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 200 million yuan, including the construction investment of 170 million yuan and the current funds of 30 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 377.35 million yuan, its profit will be 47.17 million yuan, its investment payback period will be 6.3 years (after the tax, including the construction period of 1 year) and its investment profit rate will be 23.58%.

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

1.4.2 Social evaluation

This project is in line with the high-quality development policy of the automotive industry in Jilin Province, and is a major decision-making deployment for the implementation of the "step-up" project of the automotive industry cluster, promoting regional coordination and linkage, accelerating the coordinated development and comprehensive improvement of the "trinity" of vehicles, parts and aftermarket, so as to build a trillion-level and world-class advanced automotive manufacturing cluster, and build a strong automobile province and a strong manufacturing province.

The project meets the requirements of the six returns and technological progress of the industry in Jilin Province and Changchun City, meets the market requirements, is protected and supported by the national technological and economic policies, and adapts to the requirements of the increasing development of local related products. The external conditions of the project are complete, the transportation and water and electricity supply are fully guaranteed, and there are superior construction conditions. It can achieve technological progress, industrial structure adjustment, improve economic and social benefits, and at the same time provide a large number of employment opportunities for the local labor force, with outstanding social benefits.

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

Energy Industrial Park, High-tech North District, Jilin City, Jilin Province.

1.8 Progress of the project

Attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Energy Industrial Park, High-tech North District

Address: High-tech North District

2.2 Overview

High-tech North District, Jilin City is located in the northwest of Jilin City, between Jilin-Changchun Expressway and Jilin-Changchun North Line, east to South Sandao Village, west to Sodeng River. High-tech North District is one of the ten major functional districts planned and constructed in Jilin City, forming a progressive development pattern that echoes the development and construction of the northeast and southeast of Changchun, and has become an important support point for regional and industrial connection with Changchun City. At the same time, High-tech North District, Jilin Economic Development Zone, and Jilin Chemical Industry Park form a development pattern of the northern industrial zone in Jilin City, which is conducive to promoting integrated urban-rural development and undertaking the industrial transfer from urban areas.

2.3 Contact method

Postal code: 132000

Contact person: Jia Ruifeng

Tel: +86-13596260770

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

Contact unit: Investment Promotion Service Center, Jilin Municipal Bureau of Commerce

Contact person: Jiang Yuxiu

Tel: +86-432-62049694    +86-15804325460  

E-mail: jlstzcjfwzx@163.com