1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The project is planned to be built in Wangqing County, with ginseng as the main raw material, to make common convenient food in life, such as Changbai Mountain ginseng cake, ginseng jelly, ginseng pickles, low sugar preserved ginseng, ginseng crisp, ginseng throat candy, ginseng puffed food, ginseng preserves and other ginseng products, to extend the industrial chain and increase added value.

1.1.2 Market prospect

(1) Market Status of Ginseng Health Products

Ginseng health food refers to health food products mainly made from ginseng.  Ginseng is one of the most representative traditional Chinese medicinal herbs in China, with a long history of medicinal use, unique health value, and profound cultural heritage. Modern research has shown that ginseng contains saponins, polysaccharides, proteins, and amino acids, which have activities such as regulating the body's immune system, anti myocardial ischemia, antioxidant, anti Alzheimer's disease, and anti-aging.

Since its inception, China has successfully achieved independent cultivation of ginseng varieties, marking the localization and quality improvement of the industry's basic raw materials. With the gradual establishment and improvement of the regulatory system for health food, the industry is gradually moving towards standardization, enhancing consumer confidence. At present, the standardization level of the industry is relatively high, product quality is stable and reliable, and market demand remains strong.

Health food, as an effective means of preventing diseases and promoting health, has gradually gained widespread recognition. Coupled with the fact that the raw materials are traditional and precious tonics, the dual advantages drive the steady expansion of the industry scale. From 2019 to 2023, the market scale of ginseng health food industry in China increased from 10.415 billion RMB yuan to 12.139 billion RMB yuan, with a compound annual growth rate of 3.90%;  It is estimated that from 2024 to 2028, the market size of China's ginseng health food industry will increase from 12.57 billion RMB yuan to 15.104 billion RMB yuan, with a compound annual growth rate of 4.70%.

From the current development status, the market size of the ginseng industry continues to expand, mainly due to the improvement of people's health awareness and the increase in demand for traditional Chinese medicine. Ginseng has been widely used in various fields such as medicine, health products and food due to its unique medicinal value and nourishing effects. Especially in China, as one of the main production areas of ginseng, the strong demand in the domestic market has driven the rapid development of the ginseng industry.

(2) Market prospects of ginseng health products

Ginseng has a long history of medicinal use in China and was once the preferred supplement for ancient royal families and nobles seeking longevity and physical fitness. With the improvement of modern living standards, ginseng has become a common choice for ordinary people's health and wellness. In recent years, the production and sales of ginseng in China have continued to grow. In 2023, the output of fresh ginseng reached 69,850 tons, of which Jilin accounted for 56.78%, Heilongjiang 28.63% and Liaoning 7.37%. The demand reached 70,031.9 tons, and it is expected that by 2025, the production and demand will increase to 76,234 tons and 75,614.4 tons, respectively. In terms of price, the average market price of fresh ginseng in China has gradually decreased since 2014. The average price in 2023 is 121.4 RMB yuan/kg, and it is expected to be around 120.6 RMB yuan/kg by 2025.

With the increasing awareness of health among people, the demand for health products in the market continues to grow, especially products made from ginseng, which are widely popular due to their pure natural and ideal nourishing effects. The concept of ginseng as a dietary therapy has deeply penetrated people's hearts. With the increase of domestic demand, the import volume of Chinese ginseng has increased significantly in recent years. From January to May 2023, the import volume reached 77.171 million dollars, while the export volume will be 40.062 million dollars. The main sources of imports are R.O.K., Canada, and the United States, with import amounts of 15.2275 million US dollars, 52.4155 million US dollars, and 9.5279 million US dollars, respectively. Chinese ginseng is mainly exported to Japan, Hong Kong, Taiwan, China, Germany, Italy, Singapore, Malaysia, the United States, France, Canada and other regions, with the export volume of US $12.4399 million, US $10.2777 million, US $9.5223 million, US $1.815 million, US $1.7083 million, US $1.1714 million, US $992600, US $680000, US $527200 and US $292500 respectively.

With the increase of ginseng health product production enterprises, the industry's output and production capacity continue to rise, and the current market supply and demand are relatively balanced. However, some companies have already experienced inventory backlog, and industry production capacity far exceeds market demand, leading to increasingly fierce competition. It is expected that in the future, China's ginseng health product industry will be dominated by large enterprises with advanced production technology, while small and medium-sized enterprises will compete for the remaining market share.

Ginseng, as an economic crop with thousands of years of cultivation history, has diverse pharmacological activities in China and is widely used in fields such as food, medicine, and cosmetics.  In the future, the market demand of Chinese ginseng is expected to further increase, and the development prospect is optimistic.  But at the same time, it is also necessary to strengthen coordination and promotion in policies, standards, and technology to promote the healthy and sustainable development of the entire industry.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The Implementation Opinions of the General Office of the People's Government of Jilin Province on Accelerating the High quality Development of the Ginseng Industry in the Province proposes to strengthen the development of ginseng food. Support pharmaceutical and health food production enterprises to utilize technological reserves, inspection equipment, and production facilities to develop ginseng ordinary food, expand the application of ginseng in the food field, and enhance the value-added space of deep processing. Organize ginseng industry associations and research institutes to develop group standards for preserved ginseng, increase promotion and implementation efforts, and promote preserved ginseng as a new growth point for the development of ginseng food. Accelerate the development and utilization of ginseng health food.  Support enterprises to apply for a ginseng extract food production license in accordance with the technical requirements of health food raw materials, and legally include the production of ginseng extract in the food production license.

Accelerate the development of deep processed ginseng products. We will focus on supporting research on non-traditional medicinal parts, active substances or effective components, new structures, targets or mechanisms of action of ginseng, and accelerate the development of innovative ginseng drugs for intelligence, antiviral, anti myocardial ischemia, and coronary heart disease. Accelerate the development of diversified and high-end ginseng whitening, moisturizing, skincare and other series of cosmetics and daily chemical products, actively cultivate high-quality and new brands of ginseng daily chemical products.

The Jilin Provincial Institute for Drug Control has issued the "Implementation Plan for Promoting the High Quality Development of the Ginseng Industry". The plan clearly states that it is necessary to focus on the technical difficulties that urgently need to be solved in the development of the ginseng industry. Through research on the grading standards of forest ginseng, analysis of the quality of garden ginseng, forest ginseng, and wild ginseng, systematic characterization and effective ingredient research of multiple ginseng production areas based on metabolomics technology, quality control and production process research of ginseng and ginseng preparations based on quality markers, evaluation of the quality of ginseng health food using modern drug analysis technology, research and development of ginseng health food, development of ginseng series cosmetics with anti-aging effects, research on the application of by-products from red ginseng processing in anti-aging cosmetics, and other topics, the quality of ginseng (forest ginseng) will be studied by comprehensive development and application, By deeply integrating technological innovation and industrial innovation, we aim to promote the high-quality development of the ginseng industry.

(2) Location advantage

Wangqing County is located in the forefront of the Changjitu Development and Opening up Pilot Zone, adjacent to the Northeast Asia Economic and Trade Zone, facing 13 foreign ports such as Hunchun and Suifenhe, 65 kilometers away from the airport and high-speed railway station, with an advantageous geographical position. It is a node city connecting the "Changjitu" economic belt in Jilin Province and the "Hamu Suidong" economic belt in Heilongjiang Province, and also an important window for the national "the Belt and Road" strategy to open to the north.  Foreign trade continues to develop, and has established trade relations with more than 20 countries including Germany, the United States, R.O.K., Spain, etc., with obvious geographical advantages.

(3) Project resource advantages

Wangqing County is one of the fifteen main ginseng production bases in Jilin Province, with a significant proportion in the development of the county's traditional Chinese medicine industry. It has a history of over 200 years of artificial cultivation and is mainly distributed in towns such as Tianqiaoling, Fuxing, Luozigou, Dongguang, and Baicaogou. There are currently 8 raw material production bases for the "Changbai Mountain Ginseng" brand, including 3 standardized bases covering 100 acres for 6-year-old ginseng. There are 6 key leading enterprises in agricultural industrialization at or above the state level in the ginseng industry, 21 professional cooperatives, and 1 family farm. The annual output of ginseng is about 750 tons, with a production value of 53.59 million RMB yuan.    

1.2 Contents and scale of project construction

1.2.1 Project scale

Annual output of 5000 tons of Changbai Mountain ginseng cake, ginseng jelly, ginseng pickles, low sugar preserved ginseng, ginseng crisp, ginseng throat candy, ginseng puffed food, ginseng preserves and other ginseng products.

1.2.1 Content of project construction

The project plan covers an area of 35,000㎡ and includes the construction of production workshops, raw material processing bases, finished product storage warehouses, logistics transfer centers, e-commerce centers and related supporting facilities.

1.3 Total investment of the project and capital raising

The total investment of the project is 100 million yuan, including a construction investment of 80 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches its production capacity, the annual sales revenue is 58.48 million yuan, the profit is 17.54 million yuan, the investment payback period is 7.7 years (after tax, including a construction period of 2 years), and the investment profit margin is 17.54%.

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

1.4.2 Social evaluation

1.5 Cooperative way

Sole proprietorship, joint venture, and cooperation

1.6 What to be invested by the foreign party

Funds or other means can be discussed in person

1.7 Construction site of the project

Wangqing County

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Unit basic information 

Name: Wangqing County Health Bureau

Address: 1217 Jiangbei Street East, Changrong Street, Wangqing County

2.2 Overview

Wangqing County is located in the northeast of Jilin Province, with an area of 9,016 square kilometers. It is the central node of the Changjitu Development and Opening Pilot Zone connecting Harbin Mudanjiang Suifenhe Dongning Economic Belt. The transportation within the territory is convenient, with the Tumu Railway running through the entire area. The National Highway Sanmo Line and the Provincial Highways Muchang Line and Ningqing Line connect Ning'an City, Muling City, and Dongning County in Heilongjiang Province, respectively. It is 65 kilometers away from Yanji Airport and has 13 ports. Wangqing is bound to become a treasure trove in Northeast Asia, stretching from east to west and from south to north.

Wang Qing was born from the forest and is a county in the hinterland of Changbai Mountain. The area is densely covered with mountains and rivers, with golden paths and a forest coverage rate of up to 92%. Green mountains and clear waters are as valuable as mountains of gold and silver. In recent years, the county party committee and government have deeply implemented the national, provincial, and state ecological civilization construction strategic deployment, based on resource endowment, looking at long-term development, and using ecological concepts to plan the construction of various economic and social undertakings. They have successively won policy projects such as the third batch of resource depleted cities, national main functional zones, and the first batch of national ecological protection and construction demonstration zones. With the efforts of the whole county, they have built a national ecological construction demonstration county and constructed a happy and beautiful Wangqing with "ecological economic development, ecological cultural prosperity, beautiful ecological environment, and harmonious ecological society". It is a blessed land for ecological human settlement.

Wangqing is known as the "Thousand Year Tribe and Hundred Year County". In history, ethnic groups such as the Northern Woju, Goguryeo, Mohe, Khitan, Mongolian, and Jurchen have all lived and worked here. From the Paleolithic, Neolithic, Bronze Age, Iron Age, Bohai Period, as well as the Liao, Jin, Yuan, Ming, and Qing Dynasties to modern times, there are abundant cultural relics. It is a representative of the culture on the left bank of the Tumen River and the birthplace of northern Chinese culture. Wangqing County is a typical gathering place for the Korean ethnic group, with a colorful Korean culture. It is the birthplace and application site of the only dance related world intangible cultural heritage in China – Chinese & Korean agricultural music and dance. The cultures of various ethnic groups blend together, live in harmony, and develop harmoniously. It has been awarded the title of "Model Collective for Ethnic Unity and Progress in the Province" for three consecutive times. The rich historical culture and brilliant ethnic culture complement each other, making it a popular destination for appreciating the culture of the North and the Korean ethnic group.

2.3 Contact Information

2.3.1 Project Contact Information:

Contact unit: Wangqing County Health Bureau

Contact person: An Dan

Tel: +86-15568083358

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

Contact unit: Yanbian Prefecture Bureau of Commerce

Contact: Li Jingyu

Tel: +86-13596515933