1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Ginsenosides and American ginseng saponins are excellent traditional Chinese medicine extracts with strong immune regulatory effects. As a type of medicine that can strengthen the body's immune system, their immune enhancing effects are particularly prominent when the body's immune function is low. This type of product has a wide range of applications due to its unique functions, and has been made into many dosage forms of drugs, such as ginsenosides, which have achieved good efficacy in cancer treatment.

This project is planned to be built in the Tumen Chemical New Materials Circular Economy Industrial Park, relying on the resource advantages of large ginseng planting area and excellent varieties in Yanbian Prefecture, to construct a technology project for extracting ginsenosides and separating effective ingredients. The main products are ginsenosides and American ginseng saponins.

1.1.2 Market prospect

(1) The efficacy of ginsenosides and American ginseng saponins

Ginsenosides, as active ingredients derived from traditional medicine, have been widely recognized for their efficacy in enhancing the body's immunity, anti fatigue, anti-aging, regulating blood sugar and blood lipids. Modern pharmacological research has revealed that ginsenosides exert their immunomodulatory effects by activating immune cells, inhibiting inflammatory responses, and resisting oxidative stress. In addition, ginsenosides can also exert their dual effects of anti fatigue and anti-aging by regulating energy metabolism and promoting fatty acid oxidation. In regulating blood sugar and blood lipids, ginsenosides have shown potential value in the prevention and treatment of metabolic syndrome by affecting the activity of insulin signaling and lipid metabolism related enzymes.

American ginseng saponins, as an important member of the ginsenoside family, have also attracted attention for their effects in enhancing immunity, improving cardiovascular function, enhancing memory, and relieving fatigue. American ginseng saponins demonstrate their unique role in immune regulation by enhancing the activity of immune cells and regulating the expression of immune factors. In terms of cardiovascular health, American ginseng saponins have the potential to prevent and treat cardiovascular diseases by improving endothelial function, lowering blood pressure, and inhibiting platelet aggregation. In addition, American ginseng saponins have a positive effect on improving cognitive function by promoting neuronal growth and synaptic plasticity, especially in the prevention and treatment of age-related cognitive impairment. In terms of relieving fatigue, American ginseng saponins provide lasting vitality support to the body by regulating the central nervous system and energy metabolism.

(2) Market Status of Ginsenosides

At present, Asia dominates the global ginsenoside market, especially China, South Korea, and Japan, which are the main countries for production and consumption.  China, as the main producer of ginseng, enjoys unique resource advantages, and its production and export of ginsenosides are among the top in the world.

In the ginsenoside market, ginsenoside Rh2, ginsenoside Rg3, and total ginsenoside products are mainstream, with numerous brands, varying quality, and price differences. Although ginsenoside Rg3 monomer is visible in the market and has significant efficacy, its absorption and utilization in the human body are difficult, so it needs to be taken in large quantities to take effect. In contrast, the bioavailability and water solubility of water-soluble ginsenoside Rg3 have reached extremely high levels, becoming the standard in the ginsenoside industry and more easily absorbed by the human body, resulting in better efficacy.

Scientific research has shown that ginsenoside Rg3 can not only inhibit the proliferation and carcinogenic activity of cancer cells, but also induce cancer cell differentiation and apoptosis, prevent tumor invasion and metastasis, reverse tumor drug resistance, and have anti-cancer and preventive effects. In addition, it can enhance the effectiveness of chemotherapy, reduce the side effects of chemotherapy, enhance the body's immunity, and comprehensively improve the patient's physical condition.

With the increasing demand for health products among domestic consumers, the application scope of ginsenosides is also constantly expanding, not limited to traditional Chinese medicine, but also covering multiple fields such as health products and cosmetics. At the same time, with the development of technology and the deepening of research, the extraction technology and purity of ginsenosides are constantly improving, providing strong support for the development of the industry.

(3) Prospect analysis of ginsenoside market

With the continuous development of the social economy and the significant improvement of residents' living standards, consumers' attention to health issues is increasing day by day. Given the increasing workload and life pressure, the public's pursuit of a healthy lifestyle (such as enhancing overall immunity, improving sleep quality, and enhancing health levels) is showing an upward trend.  The improvement of health awareness will promote the popularization of high-quality and professional health products, including rare ginsenoside technology products.

In today's rapidly developing globalization, Chinese ginsenoside enterprises need to actively promote internationalization strategies, explore international markets, and enhance the global influence of their brands. With the gradual reduction of global trade barriers, Chinese companies have the opportunity to promote high-quality ginsenoside products to the world and compete with international brands. By participating in international exhibitions, establishing overseas partnerships, and utilizing e-commerce platforms, Chinese companies can better communicate with global consumers and enhance the international visibility of their brands.

In summary, the ginsenoside industry shows broad market prospects and development potential. With the rapid development of the health industry and the increasing demand for high-quality products from consumers, the ginsenoside industry will face more development opportunities. At the same time, enterprises need to strengthen their technological research and development, expand application areas, implement brand strategies, and expand overseas markets to enhance their competitiveness and market share.

1.1.3 Technical Analysis

The extraction process of American ginseng and ginsenosides:

(1) Material selection: Select high-quality ginseng as raw material, generally using ginseng that has been growing for 3-6 years

(2) Cleaning and initial preparation: First soak the ginseng in cold water to remove impurities and soil on the surface, then peel and remove the beard and heart, and cut the ginseng into fine slices.

(3) Extraction: Soak the cut ginseng slices in a solvent and extract them under appropriate conditions. Common solvents include ethanol, water, ether, etc.

(4) Filtration and concentration: The extract is filtered to remove impurities, and then concentrated to remove excess solvents, resulting in a concentrated solution of ginsenosides.

(5) Crystallization and drying: The concentrated ginsenoside solution is subjected to crystallization treatment, which can be promoted by adjusting conditions such as temperature and pH. Then, the crystallized ginsenosides are dried to remove any remaining solvents and moisture, resulting in a dried ginsenoside product.

(6) Product refinement and packaging: Refine dried ginsenosides to remove impurities and impure substances to ensure product quality. Finally, package the refined ginsenoside product for storage and use.

1.1.4 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. 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

The highways, railways, and shipping lines within Tumen City have become important international transportation hubs connecting the hinterland of Northeast China and the Far East region due to their location in the "Golden Triangle" of Northeast Asia.  With the completion of the most beautiful high-speed railway in Northeast China, Tumen's regional advantage has become more apparent. The successive opening of 16 domestic routes from Yanji, adjacent to the state capital, to Beijing, Shanghai, Ningbo, and 9 international routes to foreign destinations has made it increasingly convenient for friends from all over the country and even the world to travel to Tumen.

(3) Project resource advantages

The total economic area under the forest in Tumen City is 51900 hectares, which has the natural advantage of planting ginseng under the forest. By expanding the planting area and improving the processing level, we can promote the combination of ginseng picking and tourism health care, and improve the comprehensive utilization rate of forestry resources. At present, the traditional Chinese medicine industry in Tumen City utilizes approximately 160,000 acres of forest land, with a production capacity of about 100 tons and an annual output value of about 4.8 million RMB yuan.

1.2 Contents and scale of project construction

1.2.1 Product scale

Annual production of 100 tons of ginsenoside extract and 100 tons of American ginseng saponin extract.

1.2.1 Contents of project construction

The project covers an area of 15,000 square meters and mainly includes the construction of a ginseng pre-treatment workshop, ginseng extraction workshop, monitoring and analysis center and laboratory, raw material warehouse, security room, office building, and other ancillary buildings and facilities, aims to purchase advanced production equipment and inspection equipment.

1.3 Total investment of the project and capital raising

The total investment of the project is 200 million yuan, including a construction investment of 160 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 114.94 million yuan, the profit is 34.48 million yuan, the investment payback period is 6.8 years (after tax, including 1 year of construction period), and the investment profit margin is 17.24%.

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

1.4.2 Social evaluation

The construction of this project will drive and promote the development of related industries and the deep development of resources, effectively promoting the optimization and adjustment of industrial structure, in line with the national policy of developing high-tech economy, and driving the growth and development of the ginseng and pharmaceutical industries in the local and provincial areas. It is in line with the national policy of supporting large-scale enterprises and promoting rapid development of the entire industry.

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

Tumen Chemical New Materials Circular Economy Industrial Park

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic Information

Name: Jilin Tumen Border Economic Cooperation Zone

Address: 688 Fengwu Road, Tumen Economic Development Zone, Jilin Province

2.2 Overview

Tumen City is located in the east of Jilin Province, at the east foot of the Changbai Mountains, and at the lower reaches of Tumen River. It faces Wencheng County, North Dao, Xianjing, Korea across the river, adjacent to Hunchun City in the east, Yanji City, the state capital in the west, Longjing City in the south, and Wangqing County in the north.

Tumen City is 35 km away from Yanji Airport. Tumen City is an important post station for the Hunwu Expressway, Changhui High speed Railway, Northeast Eastern Railway, and the Eastern Corridor advocated by the "China Mongolia Japan Three Border Committee". "Borrowing from the Port to Sea" can connect foreign countries and various port cities along the southeast coast of China through railways, and has important functions of "connection", "radiation", and "distribution". It is an important node connecting the surrounding areas, the coast, and Europe and America. It is a must pass place for Jilin Province to "borrow from the port to sea" and an important forefront of the development and opening up pilot zone of Changjitu.

Tumen City has abundant intangible cultural heritage resources, with a total of 47 intangible cultural heritage projects at various levels, including the Korean tribal leader's encouragement, Korean ethnic "kage opera", and Korean rice sausage making techniques. In order to revitalize the inheritance of intangible cultural heritage, Tumen City integrates "tourism+intangible cultural heritage", relying on traditional festivals, tourism golden weeks and other time nodes, and leveraging the popularity of tourism to hold intangible cultural heritage project exhibitions, intangible cultural heritage amusement project displays, and non genetic unified beauty food tasting activities, allowing more tourists to experience the charm of cultural treasures up close.  Tumen City is upgrading and renovating the Chinese Korean Intangible Cultural Heritage Exhibition Hall, in order to leverage the pivot of the cultural tourism industry and make it a shining "cultural business card" of Tumen City.

In 1985, Tumen City was approved by the state as a Class A border open city.

In August 2019, Tumen City was selected as a pilot county for the construction of a closely knit county-level medical community.

In April 2022, Tumen City was selected as a priority county (city, district, banner) for the creation of high-quality and balanced compulsory education.

There are a total of 683 movable cultural relics in Tumen City, all of which are ordinary cultural relics, including 221 ancient cultural relics, 456 folk cultural relics, and 6 modern cultural relics.  There are 90 immovable cultural relics, including 1 national cultural relic protection unit, 6 provincial cultural relic protection units, and 19 city and county-level cultural relic protection units.

In 2022, the gross domestic product of Tumen City reached 2.878 billion RMB yuan, an increase of 3.0% compared to 2021.

2.3 Contact Information

2.3.1 Project Contact Information:

Contact unit: Jilin Tumen Border Economic Cooperation Zone

Contact person: Lyu Yunpeng

Tel: +86-13274337733

Fax: +86-433-3957020

E-mail: tmjjkfq@126.com

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

Contact unit: Yanbian Prefecture Bureau of Commerce

Contact person: Li Jingyu

Tel: +86-13596515933