1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

This project covers an area of 30000 square meters and relies on the resource advantages of Hongshi Lake to develop a comprehensive leisure and vacation tourism project that integrates sightseeing, vacation, leisure, and dining on the water.

Hongshi Lake is one of the three lakes in Jilin Province, located in the upper reaches of the Songhua River. It is adjacent to Baishan Lake in the upper reaches and flows downstream towards Songhua Lake. The lake is 38 kilometers long, with continuous high mountains and dense forests on the west bank. There are Jiguanlazi Peak nearby, Luotuolazi Peak in the middle, and Yingbi Peak in the distance. At the same time, there are red cultural and tourism resources such as Haozi Lake and secret camps nearby, as well as two connected water tourist attractions, Baishan Lake and Songhua Lake, which have high-quality water route tourism development values.

1.1.2 Market prospect

(1) Analysis of the current situation of the leisure and vacation tourism industry

In recent years, leisure vacation tourism has become an increasingly important way of serving people’s beautiful lives. It differs from traditional sightseeing modes in that it has features such as relatively long playtime, slower pace of play, richer consumption scenarios, more diverse leisure and entertainment activities, and a deeper experience of the destination’s products or projects. Currently, leisure and vacation tourism in China is showing new trends such as one-stop, personalized, cross industry, integration of culture and tourism, and downward development, becoming an important driving force for the consumption of Chinese residents.

In the first half of 2024, the number of domestic tourists in China reached 2.725 billion, a year-on-year increase of 14.3%, and the total expenditure of domestic tourists on travel was 2.73 trillion, a year-on-year increase of 19.0%. Compared to the same period in 2023, the number of tourists and total expenses have increased in 2024, and the tourism industry is continuing to recover. However, compared to the 3.08 billion trips and 2.78 trillion tourism revenue in the same period of 2019, there is still potentials for the recovery of tourism. At present, the per capita travel frequency in China is once a quarter and the travel time is less than 8 days a year. Compared with the per capita travel time in developed countries, which is once a month and about 15 days a year, there is still much room for improvement in the popularity of tourism, and there is huge space for the development of cultural tourism consumption.

China’s tourism consumption is upgrading comprehensively from sightseeing to vacation and experience, and tourists’ travel methods are gradually shifting towards comprehensive activities such as leisure, vacation, competition, and health preservation. Tourists are no longer satisfied with just visiting scenic spots point-to-point, but more hope to immerse themselves in the destination experience and feel the relaxation and joy brought by the vacation in a more comprehensive and multi scene way. In this process, leisure vacation style tourism with richer business scenarios, more diverse consumption content, relatively longer recreational time, and more suitable for deep relaxation is increasingly favored by more and more tourists.

In the first half of 2024, various types of resorts, theme parks, resort hotels, etc. had rapid development, among which the online transaction volume of theme parks increased by 7.9% year-on-year. Shanghai Disneyland Resort, Beijing Universal Resort, Zhuhai Chimelong Ocean Kingdom, Harbin Ice and Snow World, Qingdao Polar Ocean Park and other places with the highest transaction volume are more favored by consumers. In addition to regular popular scenic spots, some local entertainment projects such as art exhibitions, LiveHouse, foot massage and wellness centers, bathing centers, etc. have also become new tourist check-in destinations. The transaction volume of high star hotels above four stars increased by 21.6% year-on-year.

With the development of the tourism market and changes in the consumers’ demand, one-stop vacation has become a new trend, where consumers can meet all their travel needs in one resort through a platform. The “one-stop service” and “package consumption” conform to the expected consumption mode of the new generation of consumers, simplify their choices, eliminate blind spots, and more and more consumers are starting to book the full set of “food, accommodation, transportation, tourism and entertainment” itineraries and package products on platforms such as Meituan and Dianping in one stop. They can enjoy various service discounts through the “God Member” free coupon and God Member’s wallet saving benefits system, and enjoy high-quality vacation experiences at more favorable prices.

Tourist resorts, theme parks, and commercial complexes are highly favored for their integration of various formats such as scenic spots, hotels, performing arts, and commercial streets, providing tourists with a one-stop vacation experience. These one-stop services and package products not only increase tourists’ willingness to purchase, but also increase their stay time at the destination, allowing them to enjoy more leisure time during their travels, experience local culture and scenery more deeply, and enjoy a more relaxed vacation experience.

(2) The current situation and development of tourism in Jilin Province

Jilin Provincial Party Committee and Government attach great importance to the high-quality development of the tourism industry, and have issued multiple policies in recent years to support the development of the tourism industry. In terms of the overall planning of the tourism industry, in October, 2023, Jilin Provincial Committee of the Communist Party of China and Jilin Provincial People’s Government issued the Action Plan for the Trillion-level Tourism in Jilin Province (2023-2025), proposing that “by 2025, the total tourism revenue will have reached 720 billion yuan, and the number of domestic and foreign tourists will have reached 400 million, with an average annual growth rate of over 20%.

Jilin not only has vast forests and rich ethnic customs, but also waterfalls, lakes, rivers, bays, streams, plateau peaks, wetlands, beaches, forests, grasslands, rime snow fields, snow villages, hot springs, and the border city of Hunchun - the wonder of a sight of three countries. The popular tourist routes in Jilin include ice and snow tourism routes, Changbai Mountain tourism routes, Korean ethnic characteristic tourism routes, border tourism routes, summer resort tourism points, etc. As of the end of May, 2024, the total number of A-level scenic spots in Jilin Province reached 303, including 8 5A level scenic spots and 89 4A level scenic spots. These A-level scenic spots in Jilin Province not only cover various aspects such as natural scenery, historical culture, and folk customs, but also include multiple tourist resorts with local characteristics, forest parks, museums, etc., providing tourists with rich cultural and natural experiences.

(3) Current situation of tourism in Jilin City

In recent years, the cultural and tourism market in Jilin has shown explosive vitality. In 2023, Jilin Province received 314.4973 million domestic and foreign tourists, an increase of 173.0% over the previous year; The total annual tourism revenue was 528.463 billion yuan, an increase of 242.1%, reaching a historic high. Jilin Province's cultural and tourism revenue ranks first among the three eastern provinces, steadily capturing the benefits brought by network traffic and the popularity of the ice and snow economy. Since 2024, the tourism in Jilin Province has continued to develop rapidly and with high quality, showing characteristics such as booming market popularity, accelerated product iteration, soaring brand popularity, and multiple blooming points throughout the province. In the first quarter of 2024, it received 90.71 million domestic tourists, a year-on-year increase of 95.4%; it realized domestic tourism revenue of 168.2 billion yuan, a year-on-year increase of 107%.

Jilin City is located in the “world’s golden latitude zone for ice and snow”, with unique pink snow resources; sitting on the only ice-free Songhua River in Northeast China, the wonder of rime is stunning to the world. The ice and snow culture has been deeply attractive to people, and the development potential of the ice and snow industry is enormous. Jilin City has always insisted on promoting the upgrading and expansion of the ice and snow cultural tourism industry, making full efforts around “ice and snow+”, and focusing on turning “cold resources” into “hot industries”. It held the Ice and Snow Economy High Quality Development Conference 2021 and the First World Ski Resort · Jilin Beidahu Summit with high standards, the opening ceremony of the new snow season of 2023-2024 in Jilin Province, the 19th China Economic Forum, and the sub-forum on shaping new advantages of ice and snow economy with the new quality productivity. Beidahu Ski Resort has become the largest individual ski resort in Asia, and Vanke Songhua Lake Resort has won the World Ski Award for 7 years. Ski resorts such as Jixue and Wujiashan have also actively adjusted their development positioning and launched new services and projects to meet new needs. During the snow season of 2023-2024, Jilin City received 23.4022 million tourists, a year-on-year increase of 178.09%, with tourism revenue of 47.093 billion yuan, a year-on-year increase of 198.9%, reaching a historic high.

As of the first half of 2024, the number of A-level tourist attractions in Jilin city has grown to 37, accounting for nearly 1/5 of the total in the province. The number of A-level rural tourism operating units has reached 237, accounting for nearly 1/3 of the total in the province. Jilin City has created ten major cultural and tourism IPs, namely, the “rime, stars, river, mountain and night life, snow, birds, food, culture and hot spring”, expanding the seven major areas of cultural heritage revival, mountain and water nostalgia, industrial reminiscence, delicious food, scenic corners, rural culture, and red Jilin, and constructing a “big tourism” pattern covering natural endowments, historical culture, and other aspects.

Jilin City has a continuous history of over 2200 years of urban construction, with rich cultural heritage and a long cultural context left by the proliferation, exchange, and integration of multiple ethnic groups. It has also endowed this city with shining cultural symbols such as “shipyard”, “birthplace of the Manchu people”, and “hometown of Peking Opera”. Since the 18th National Congress of the Communist Party of China, Jilin City has been deeply exploring cultural resources, increasing the scientific protection and development of historical relics and archaeological sites, continuously promoting the vigorous development of cultural undertakings, accelerating the deep integration of culture and tourism, focusing on promoting the construction of cultural and tourism projects, striving to polish cultural and artistic masterpieces, create cultural and tourism brand activities, enrich the supply of cultural and tourism products, and fully meet the spiritual and cultural needs of the people while inheriting and promoting excellent traditional Chinese culture.

In 2023, Jilin City established the overall goal of building a “museum city” with “one river, one city, one culture, and one urban development history”, and accelerate the construction of a spatial pattern of “one axis, eight wings, and five clusters”. At present, there are 38 museums of various levels and types in Jilin City, including 1 first level museum and 3 third level museums. The city currently has a collection of 39381 cultural relics. The Municipal Museum (Municipal Meteorite Museum), Municipal Manchu Museum, Municipal Confucian Temple Museum, Jilin Navy Camp Museum, and Municipal Ming and Qing Dynasties Shipyard Site Museum are constantly updates the exhibition halls.

In 2024, Jilin City gradually opened new cultural and museum venues to the public, such as the 1881 Jilin Machinery Manufacturing Bureau Site Museum, Jilin Provincial Government Museum, Jilin Provincial Water Supply Plant Site, Jilin Railway Jilin Station Site, Jilin Ceramic Museum, etc., and rebuild Henan Street, the “century-old street”. During the National Day holiday, new cultural and tourism attractions such as Xuantianling Wangyun Shijiufang Liquor Stores Street, Chaoyangmen, Deshengmen, Beijing Opera Park, Xiaobaishan Park, Ula “Three Mansions”, Xituanshan Park, Dongtuanshan Park, Boat of the Century, Anti-Japanese United Front Memorial Square, etc. were opened.

Year after year, Jilin City has carefully built its cultural and tourism activity brand, and vigorously promoted cultural and tourism activities from spring to winter, continuously improving the city’s influence and the happiness index of the people.

1.1.3 Technical analysis

This project adopts the latest planning, building, and construction technologies.‌

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Ministry of Culture and Tourism’s Domestic Tourism Promotion Plan (2023-2025) mentions the need to strengthen domestic tourism promotion, enrich high-quality tourism supply, improve tourism consumption experience, enhance public service efficiency, support the transformation and upgrading of business entities, deepen political reforms in key areas, improve the quality of tourism market services, and strengthen comprehensive market supervision.

The Implementation Plan for the Support Project for Rural Culture and Tourism Leaders (2023-2025) of the Ministry of Culture and Tourism aims to fully stimulate the development potential of leaders and further strengthen the construction of rural culture and tourism city leaders through strengthening contact services, implementing project funding, building communication platforms, strengthening education and training, encouraging innovative practices, and other methods.

Jilin Provincial Department of Culture and Tourism’s Development Plan for Ecotourism in Jilin Province (2022-2030) proposes to adhere to the priority of protection and green sustainable development, build “dual portals” and “dual green hearts” to drive the linkage of the whole region and all seasons, drive the whole year, transform the advantages of green ecology into a highland of ecotourism industry, and promote the high-quality development of whole region tourism and all season tourism. By 2025, it will have been initially built into a strong province for all season ecotourism in China and an internationally first-class destination for summer vacation, leisure, and ice and snow vacation ecotourism. By 2030, it will have been built into a world-class four season ecotourism destination, and ecotourism will have become an important support for Jilin Province to build the “trillion-level” tourism.

Jilin Provincial Committee of the Communist Party of China and Jilin Provincial Government’s Action Plan for the Trillion-level Tourism in Jilin Province (2023-2025) aims to achieve a total tourism revenue of 720 billion yuan and receive 400 million domestic and foreign tourists by 2025, with an average annual growth rate of over 20%. The average annual growth rates of inbound tourism revenue and the number of inbound tourists received have reached over 190% and 90% respectively, with overnight tourists accounting for over 42%. It strives to achieve the trillion-level tourism goal within 5 years.

The Department of Culture and Tourism and the Department of Finance of Jilin Province have issued the Detailed Rules for Supporting Tourism related Enterprises in Jilin Province, which clearly states that they will adhere to the principle of rewarding excellence, supporting strength, and promoting innovation, actively support the development, transformation, and upgrading of tourism market operators, enhance competitiveness, actively support the construction of tourism infrastructure investment projects, actively support the creation of tourism brands, and actively encourage the improvement and upgrading of tourism products; emphasize the exemplary, driving, and radiating role of tourism related enterprises; Emphasize the role of financial support and guidance; adhere to fairness, impartiality, openness, and transparency; adhere to the principle of “implementing it first, rewarding later, and not repeating rewards and subsidies”.

The Opinions on Strengthening the Overall Management of the Cultural and Tourism Industry in Jilin City accelerate the construction of a strong tourism city through 10 measures, including improving mechanisms, coordinating projects, enriching supply, continuously attracting investment, and strengthening governance. Develop county (city, district) work plans and make every effort to promote Fengman District, Yongji County, Jiaohe City, and Huadian City to achieve the “billion-level” goal, providing strong support for Jilin City to leap to the “billion-level” goal.

(2) Resource advantages

Jilin City is renowned as the “River City in the Northern Part of China” and is known as the “Rime Capital and Ski Paradise”. The city is renowned for its beautiful scenery throughout the four seasons, each with its own unique features. The natural landscape is beautiful and enchanting, with the “beautiful water of one river (Songhua River), two wonders (Jilin rime and Jilin Meteorite), three lakes scenic spots (Songhua Lake, Hongshi Lake, and Baishan Lake), and four sacred mountains (Zhuque Mountain, Xuantian Ridge, Longtan Mountain, and Xiaobai Mountain)” being well-known for their magnificent beauty. It has the “nine great rime viewing belts” centered around the rime Island and the “nine hot spring experience zones” represented by Shennong Hot Spring, forming a full-time, all season, and all area tourism pattern centered around rime ice and snow and summer leisure industries. Especially Jilin City is located in the “Ice and Snow Golden Latitude Zone” at 43° N latitude, and is one of the world’s three major powder snow bases, with world-class ice and snow resources.

Jilin City will further deepen reforms in the cultural and tourism fields, accelerate the cultivation of new quality productive forces, and strive to build a “world-class ice and snow industry base” and a “leisure tourism destination in northern China” with a high spirited attitude.

(3) Talent advantages

Jilin City has universities such as Northeast Electric Power University, Jilin General Aviation Vocational and Technical College, Jilin Electronic Information Vocational and Technical College, Jilin Industrial Vocational and Technical College, etc. These universities provide a continuous stream of talent support for enterprises. These talents not only possess rich practical experience, but also have high technical level and innovation ability.

At the same time, Jilin City has a large number of high-quality industrial and chemical workers. After training by enterprises and public welfare institutions, more than 10000 skilled talents are sent to the society every year, and more than 20000 people of various types are trained for the society. The labor resource advantages are obvious, and the proportion of skilled workers is at a high level in the Northeast urban agglomeration. The labor force is in a dividend period, and the labor cost is relatively low. There is a large number of high-quality industrial workers who can meet the needs of various enterprises.

(4) Location advantages

Jilin City is located in the middle east of Jilin Province, in the transition zone from the Changbai Mountains to Songnen Plain, with a superior geographical position. It borders Yanbian Korean Autonomous Prefecture to the east, Changchun City and Siping City to the west, Harbin City, Heilongjiang Province to the north, and Baishan City, Tonghua City, and Liaoyuan City to the south. This geographical location makes Jilin City an important hub connecting the Northeast region.

The transportation conditions in Jilin City are also very convenient. As an important transportation hub in Northeast China, Jilin City has a developed network of highways, railways, and waterways. The Songhua River flows through the city in an inverted “S” shape, providing convenience for waterway transportation. Jilin Longjia International Airport and Jilin Airport, as well as transportation arteries such as Changchun-Hunchun and Shenyang-Harbin Expressways, Changchun-Hunchun Intercity Rapid Railway, Shenyang-Harbin Double Line Railway, etc., form a three-dimensional transportation network in Jilin City that is well connected, fast, and convenient. ‌‌

1.2 Contents and scale of project construction

1.2.1 Construction scale

After the project is completed, it is expected to receive 300000 tourists annually.

1.2.2 Construction contents

The total area of the project is 30000 square meters, with a building area of 22000 square meters. The main construction includes the construction of one sightseeing hotel (villa), one tourist reception area, one ticket office, one parking lot, one rural specialty canteen, one Hongshi Lake introduction monument, one myth and legend monument, five waterfront sightseeing pavilions, one observation deck, one waterfront corridor, one dock, and the purchase of two small yachts.

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 150 million yuan, including the construction investment of 121.5 million yuan and current funds of 28.5 million yuan.

1.3.2 Capital raising

Self-raising by the enterprise。

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 233.34 million yuan, its profit will be 41.67 million yuan, its investment payback period will be 6.5 years (after the tax, including the construction period of 2 years) and its return on investment will be 27.7%.

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

1.4.2 Social evaluation

The Hongshi Lake area has unique local culture, such as folk culture, traditional handicrafts, etc. The projects can provide funding and platforms for the protection and inheritance of these cultures. By constructing cultural exhibition halls, folk villages, and other facilities, local cultural characteristics can be showcased to tourists, allowing traditional culture to continue in modern society. This cultural exchange helps broaden the horizons of local residents, promote diverse cultural development, and also enhance the influence of local culture.

At the same time, the comprehensive development project of Hongshi Lake tourism will also drive the development of local tourism and related industries, increase employment opportunities, improve residents’ income, and promote the prosperity of the local economy.

1.5 Cooperative way

Joint venture or cooperation, and other methods can be discussed face-to-face.

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed face-to-face.

1.7 Construction site of the project

Hongshi Lake, Huadian City, Jilin Province

1.8 Progress of the project

It is attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Huadian Municipal People’s Government 

Address: Huadian City, Jilin City, Jilin Province

2.2 Overview

Huadian City has one provincial-level economic development zone, five streets, nine townships, and a total population of approximately 341300 people. The city’s population is mainly Han Chinese. In March, 2001, it was designated by Jilin Municipal Government as a pilot project for building medium-sized cities and granted partial prefecture level management authority.

The urban area of Huadian City is located on the Huifa River in the southwest central part of Huadian City. The terrain of the city is flat, surrounded by mountains, and the transportation is convenient. It is the political, economic, and cultural center of the city, with a built-up area of 15 square kilometers.

The Economic Development Zone is located in the northwest of the city, with a planned area of 6.29 square kilometers and jurisdiction over 7 administrative villages.

In 2023, Huadian City achieved a regional GDP of 11.22 billion yuan, an increase of 8.3% over the previous year. Among them, the added value of the primary industry was 3.54 billion yuan, an increase of 4.1%; the added value of the secondary industry was 2.72 billion yuan, an increase of 18.4%; the added value of the tertiary industry was 4.97 billion yuan, an increase of 7%. The ratio of the three industrial structures is 31.5:24.2:44.3.

2.3 Contact method

Postal code: 134511

Contact unit: Huadian Municipal People’s Government 

Contact person: Zhang Hao 

Tel: +86-432—66221983

   +86-13331700111

E-mail: swjxmk66221983@163.com

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

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

Contact person: Jiang Yuxiu

Tel: +86-432-62049694    

   +86-15804325460  

E-mail: jlstzcjfwzx@163.com