1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Optoelectronic devices are various functional devices made using the electric photon conversion effect, which are key and core components of optoelectronic technology. They are the forefront research field of modern optoelectronic technology and microelectronics technology, and an important component of information technology. The project is located in Wangqing Economic Development Zone, mainly producing functional materials for optoelectronics and electronic components, including a series of products such as optical tapes, high purification protective films, high purification tapes, and heat dissipation films, etc.

1.1.2 Market prospect

(1) Development status of the optoelectronic device industry

Optoelectronic materials are materials applied in the field of optoelectronic technology. It has the ability to absorb, generate, and control photons and electrons, and can convert energy between photons and electrons, thereby achieving the conversion and processing of photoelectric signals. In recent years, the overall production of optoelectronic devices in China has fluctuated greatly. In 2023, stimulated by the continuous expansion of demand in application fields such as optical communication and optical display, the production of optoelectronic devices in China is gradually recovering. According to statistics, the production of optoelectronic devices in China reached 1438.05 billion units in 2023, a year-on-year increase of 33.11%. The production from January to June, 2024 reached 917.34 billion units, a year-on-year increase of 25.1%. As a key component of optoelectronic devices, optoelectronic materials play a crucial role in optoelectronic devices. Therefore, the increase in the production of optoelectronic devices directly drives the market demand for optoelectronic materials.

With the advancement of technology and the continuous emergence of emerging technologies, the application fields of optoelectronic devices will continue to expand. In addition to traditional fields such as optical communication and optical display, the application of optoelectronic devices in emerging fields such as security, automotive, smart home, aerospace, etc. will also become increasingly widespread. Especially driven by technologies such as 5G, IoT, and cloud computing, the demand for optoelectronic devices in data transmission, signal processing, energy conversion, and other areas will continue to increase, providing the broad market space and application prospects for the development of optoelectronic devices.

(2) Development of the optoelectronic device industry and market prospect analysis

In recent years, China’s optoelectronic device industry has received high attention from governments at all levels and key support from national industrial policies. The country has successively introduced multiple policies to encourage the development and innovation of the optoelectronic device industry. Industrial policies such as the Implementation Opinions on Promoting Future Industrial Innovation and Development, the Guiding Opinions of the Ministry of Industry and Information Technology and Five Other Departments on Promoting the Development of the Energy Electronics Industry, and the Guiding Opinions on Promoting the Development of the Energy Electronics Industry provide clear and broad market prospects for the development of the optoelectronic device industry and a good production and operation environment for enterprises.

(3) Advantages and market size of optical thin films

The advantages of optical thin films mainly include the following aspects:

High transparency: Some optical films have high transparency, such as optical grade PC films, with a transmittance of over 90%, making them suitable for manufacturing high-definition display panels, optical lenses, etc.

Excellent optical performance: Optical films typically have good refractive index and dispersion properties, which can control the propagation and refraction of light, making them suitable for manufacturing high-precision optical devices.

Impact resistance: Some optical films, such as optical grade PC films, have excellent impact resistance and scratch resistance, which can protect devices such as display screens and touch screens from damage.

Lightweight: Compared to materials such as glass, optical films are usually lighter, making them suitable for manufacturing thinner and lighter electronic products such as smartphones and tablets.

Easy to process and shape: Optical films can be processed into various shapes and sizes of optical devices through various techniques, with good processing performance.

From the perspective of the industrial chain, the upstream of the optical film industry mainly includes optical materials such as PET base film, PVA film, TAC film, IOT substrate, as well as production equipment such as casting machines, stretching machines, and slitting machines; the midstream is used for the manufacturing of optical thin film products (diffusion films, reflective films, brightening films, polarizing films, IOT films, etc.), and the upstream substrate materials are further processed; the downstream mainly focuses on the application fields of optical thin film products, including consumer electronics such as mobile phones, televisions, tablets, lighting, optical instruments, etc.

By now, China has become the world’s largest producer, exporter and consumer of consumer electronic products. With the continuous improvement of China’s per capita income level, consumers’ requirements for the quality of LCD TVs, mobile phones, computers and other consumer electronic products are constantly improving, and the frequency of upgrading is accelerating. In the long run, the demand is still strong. With the development of 5G technology and Internet of Things technology, new intelligent hardware products such as wearable products and home residences are rapidly developing. The downstream product range of optical film products is constantly expanding, and the continuous enrichment of new application scenarios will also drive the growth of downstream market demand for display optical films. In addition, with the acceleration of domestic product substitution, the market size growth rate of China’s optical thin film industry will still be higher than the global average from 2022 to 2027, with a compound growth rate of about 10.5%. It is expected that the market size of China’s optical thin film industry will have been about 76.9 billion yuan by 2027.‌

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The Ministry of Industry and Information Technology and other departments have released the Action Plan for Stable Growth of Electronic Information Manufacturing Industry in 2023-2024, which proposes to promote technological breakthroughs in electronic materials, electronic specialized equipment, and electronic measuring instruments in key areas such as personal computing, new displays, VR/AR, 5G communication, and intelligent connected vehicles, research and establish an innovative public service platform for the electronic materials industry, and give full play to the public service functions of integrated circuit material production and application demonstration platform, national new material testing and evaluation platform, and electronic materials industry center. Under the influence of this policy, the development speed of optoelectronic materials will be further accelerated.

The 14th Five-Year Plan for Industrial Development in Jilin Province clearly proposes to expand the electronic information manufacturing industry around the five major fields of “chips, light, stars, vehicles, and network”, based on optoelectronics, automotive electronics, and new electronic components.

(2) Location advantages

Wangqing County has obvious location advantages and developed transportation. Wangqing is located in the eastern part of Jilin Province and the northeastern part of Yanbian Korean Autonomous Prefecture. The entire area is 108 kilometers long from north to south and 152 kilometers long from east to west. Wangqing County is adjacent to Northeast Asia Economic and Trade Zone, adjacent to the open cities of Suifenhe, Hunchun, and Tumen in China, and faces eight ports including Suifenhe, Changlingzi, Shatuozi, Tumen, Sanhe, Nanping, and Shuangmufeng. The area is 9016 square kilometers, making it the second largest county-level county in the province.

Jilin Wangqing Economic Development Zone is located in the northeast of Yanbian Prefecture, at the intersection of Changchun-Jilin-Tumen Development and Opening Pilot Zone and Harbin-Mudanjiang-Suifenhe-Dongning Economic Belt in Heilongjiang Province. It is 77 kilometers away from the prefecture of Yanji, 55 kilometers away from Tumen Port, and 121 kilometers away from Hunchun Port.

(3) Investment service advantages

Wangqing Economic Development Zone has achieved significant results in attracting investment. Eight new projects have been launched, with a total amount of investment of up to 830 million yuan, injecting strong momentum into the local economic development. At the same time, 10 key investment and negotiation projects are actively being promoted, with an expected total amount of investment of 1.52 billion yuan, demonstrating the strong development momentum and huge investment potential of Wangqing Economic Development Zone.

Wangqing Economic Development Zone will continue to adhere to the investment promotion strategy of “paying equal attention to both visiting and inviting”, continuously expand investment channels, and strengthen cooperation and exchanges with domestic and foreign enterprises and institutions. At the same time, further optimize the business environment, improve service quality, and provide investors with more convenient, efficient, and high-quality services. Through continuous efforts, Wangqing Economic Development Zone will attract more high-quality enterprises and projects to settle down, promoting the local economy to achieve high-quality development.

1.2 Contents and scale of project construction

The project covers an area of 20000 square meters and aims to build a production base with an annual output of 239.5 million square meters of optoelectronic and electronic component functional materials. The main products include optical tape of 7.2 million square meters, high purification protective film of 229.2 million square meters, high purification tape of 2.4 million square meters, and heat dissipation film of 700000 square meters.

1.3.Total investment of the project and capital raising

The total investment of the project is 450 million yuan, including the construction investment of 360 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 239 million yuan, its profit will be 78.9 million yuan, its investment payback period will be 6.7 years (after the tax, including the construction period of 1 year) and its return on investment will be 17.5%.

1.4.2 Social evaluation

This project, which complies with national industrial development policies and industry technological progress requirements, meets market demands, is protected and supported by national technology and economic policies, and adapts to the increasingly developing requirements of related products in the local area and Yanbian Prefecture. After the completion of the project, it will provide a large number of job opportunities, which is conducive to promoting economic growth and maintaining social stability.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Jilin Wangqing Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Management Committee of Jilin Wangqing Economic Development Zone (Original Wangqing Centralized Industrial Zone)

Address: 435-2 Binhe North Street, Wangqing County

2.2 Unit overview

Jilin Wangqing Economic Development Zone is located in the northeast of Yanbian Prefecture, at the intersection of Changchun-Jilin-Tumen Development and Opening Pilot Zone and Harbin-Mudanjiang-Suifenhe-Dongning Economic Belt in Heilongjiang Province. It is 77 kilometers away from the prefecture of Yanji, 55 kilometers away from Tumen Port, and 121 kilometers away from Hunchun Port. The development zone was formerly known as Wangqing County Industrial Concentration Zone. It was approved by the provincial government in November, 2005, with a planned land area of 3.22 square kilometers. In 2016, the park entered the national development zone list. On December 23, 2022, it was upgraded to Jilin Wangqing Economic Development Zone with the approval of the provincial government.

At present, there are 153 enterprises settled in the park, including 12 industrial enterprises above designated size. In 2022, Wangqing Economic Development Zone achieved a total industrial output value of 1.68 billion yuan, added value of 602 million yuan, tax revenue of 149 million yuan, fixed assets investment of 872 million yuan, and total import and export of 112 million yuan. In 2022, it ranked 25th in the comprehensive ranking of 72 provincial-level development zones in the province, with comprehensive strength ranking in the middle and upper reaches.

Since its establishment, the development zone has adhered to the coordinated development of economy, resources, and ecology. After years of layout, it has initially formed an ecological agricultural product processing industry represented by Haoji Food Co., Ltd., Zhongnong Co., Ltd., and Beiyihe Co., Ltd.; the edible fungi processing industry represented by Fusen Biotechnology Co., Ltd. and Bei’er Technology Co., Ltd.; the pharmaceutical and healthcare industry represented by Zhengshengkang Biotechnology Co., Ltd., Likang Pharmaceutical Co., Ltd., and Huahui Biotechnology Co., Ltd.; the clean energy circular economy industry represented by Kaidi Electric Power Co., Ltd., Jingyu Biotechnology Co., Ltd., and Green Power Technology Co., Ltd. During the 14th Five-Year Plan period, it will focus on cultivating four leading industries: agricultural product processing industry, big health industry, clean energy industry, and advanced manufacturing industry.

2.3 Contact method

Contact person: Miao Yuqiang

Tel: +86-15143374377

Unit: Jilin Wangqing Economic Development Zone (Original Wangqing Centralized Industrial Zone)

E-mail: wqkfzs@163.com

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

Contact unit: Yanbian Bureau of Commerce

Contact person: Li Jingyu

Tel: +86-13596515933