Modern Service Industry
Liquor Culture Health Ecological Industry Base Construction Project of Yanbian Prefecture
1. Introduction to the Project
1.1 Project background
1.1.1 Project introduction
This project is located in Longjing City and aims to create an ecological brewing industry base that integrates base liquor brewing, logistics packaging, ecological landscape, and industrial tourism. Longjing City is located in a high-quality production area for brewing materials, with superior natural conditions and abundant brewing materials. With the increasing attention of consumers to health and the change of market demand, more and more people tend to choose high-quality and healthy liquor. Thanks to its unique geography and resource advantages, Longjing City has huge potential to develop high-quality liquor industry.
1.1.2 Market prospect
(1) Market status of the liquor industry
At present, the liquor industry is undergoing a period of deep adjustment. However, it still maintains a stable growth trend on the whole. In this process, the performance differences between enterprises have become increasingly significant. Leading companies such as Maotai, Wuliangye, Shanxi Fenjiu, etc., with their strong brand power, market recognition, and product excellence, have achieved revenue and profit growth that exceeds the industry average. These enterprises have further consolidated their market leadership position by continuously improving product quality, strengthening brand strategies, and expanding sales networks.
At the same time, some small and medium-sized liquor enterprises are facing the dilemma of slowing down or even declining performance growth, which is mainly due to the intensification of market competition, diversification of consumer demand, rising channel costs and other factors. In order to overcome these challenges, some enterprises have begun to adjust their development speed, focusing on the recovery and consolidation of channels, laying the foundation for sustainable development.
Recently, there have been several noticeable developments in the liquor industry. On the one hand, multiple companies have adopted strategies of controlling production and stabilizing prices to cope with market fluctuations and inventory pressures. For example, Shuijingfang has suspended the shipment and order taking of Zhenniang No. 8 series products to maintain price stability and accelerate inventory turnover. On the other hand, liquor enterprises are also actively seeking new business models and marketing strategies, such as new media marketing, live broadcast with goods, cross-border cooperation and other means to expand sales channels and enhance brand influence.
With the promotion of consumption upgrading and digital transformation, the liquor industry continues to strengthen innovation and improvement in product research and development, production technology, packaging design and other aspects to meet the increasingly diverse needs of consumers. At the same time, policy support from national and local governments has provided a solid backing for the development of the industry.
There are many kinds of liquor products, which can be divided into Maotai flavor, Luzhou flavor, and Fen flavor according to flavor type. Maotai’s Maotai flavor, Wuliangye’s Luzhou flavor, and Shanxi Fenjiu’s Fen flavor constitute the “tripartite confrontation” pattern in the market. In addition, liquor can also be subdivided by the price range, such as 300-500 yuan, 100-300 yuan and below 100 yuan. Products at different price levels meet the needs of different consumers.
With its unique aroma, taste and flavor, liquor has become an important part of Chinese culture. Its brewing process is complex and requires long-term aging and maturation to enhance quality and taste. According to the alcohol content, quality, price and other factors, high-end liquor can be divided into different grades, such as super high-end, secondary high-end and mid high-end.
The liquor industry chain covers the supply of upstream raw materials, the production of midstream liquor and downstream consumer markets. Upstream mainly involves the cultivation of grains such as sorghum, rice, and wheat, as well as the manufacturing of packaging materials; The middle reaches are liquor production enterprises, which produce high-end liquor through brewing, blending, flavoring and other processes; The downstream is the liquor consumption market, which sells products to end consumers through direct marketing or distribution.
Although the overall operation of liquor industry is in good condition, the differentiation among enterprises is obvious. Leading companies such as Maotai and Wuliangye have achieved stable growth in performance through continuous improvement of product quality, strengthening of brand strategy, and expansion of sales channels. These enterprises have a profound brand foundation, extensive market recognition, and excellent product quality, making them outstanding players in the industry. However, some small and medium-sized liquor enterprises are facing the challenge of slowing down or even declining performance growth, and need to constantly innovate and change to adapt to the changes and development of the market.
(2) Market status and prospect analysis of the liquor industry
The business model of the liquor industry is undergoing continuous innovation and change. On the one hand, liquor enterprises are shaping the brand image of high-end liquor by improving brand grade, enhancing cultural value and other means, so as to increase the added value of products. At the same time, these enterprises are actively seeking new sales channels and marketing strategies, such as expanding their sales network through online platforms and social media, achieving targeted marketing and customized recommendations. In addition, some liquor companies also enhance their brand effect through cross industry cooperation and cultural promotion.
According to data, in 2019, the scale of high-end liquor market reached about 100 billion yuan, with an average annual growth rate of more than 10%. It is estimated that in the next five years, with the growth of the middle class and the improvement of consumption level, the high-end liquor market still has huge growth space. However, with the intensification of market competition and the diversification of consumer demand, the market growth rate may slow down.
In the past, the growth of high-end liquor market was mainly driven by the following factors: first, the improvement of consumption level, the increase of residents’ income and the change of consumption concept led to the rising demand of consumers for high-quality liquor; secondly, the manifestation of brand effect, top liquor companies have established a good brand image and market reputation through high quality, high price, and high marketing investment; the last is the support of the policy environment. The support and regulation of the state for the liquor industry has created favorable conditions for the development of the high-end market.
Looking forward to the future, the liquor industry will show the following development trends: first, the trend of quality and health will be strengthened, and consumers will pay more attention to the quality and health characteristics of products; secondly, there is the diversification and personalization of demand, and liquor companies need to constantly innovate to meet the different needs of consumers; the third is the acceleration of internationalization strategy, where liquor companies will actively explore overseas markets and enhance brand awareness; finally, there is a trend towards digital transformation and intelligent production, and liquor companies need to utilize new technologies to improve production efficiency and quality control.
To sum up, the liquor industry has shown strong resilience and anti risk ability in the changing market environment. With the improvement of consumption level and the promotion of digital transformation, the liquor industry is expected to maintain stable growth. However, in the face of fierce market competition and constantly changing market demands, liquor companies must continue to innovate and transform to adapt to the evolution of the market.
1.1.3 Technical analysis
(1) Raw material processing
Grain selection: Choose high-quality grains as raw materials for brewing, such as sorghum, corn, wheat, etc.
Crushing and cleaning: Crushing grains into appropriate sizes and cleaning them to remove impurities.
(2) Saccharification and fermentation
Ingredients: Mix the raw materials, water, and saccharifying agent in a certain proportion.
Fermentation: The mixed material undergoes fermentation under specific temperature and humidity conditions, converting starch into sugar.
(3) Distilled liquor
Put the fermented material into a distillation pot for distillation to separate the liquor.
The distillation process of liquor requires strict control of temperature and time to ensure the quality and taste of the liquor.
(4) Aged storage
New liquor needs to be aged for a certain time to improve its taste and flavor.
During aging, the wine undergoes subtle chemical changes in ceramic jars or stainless steel tanks.
The storage environment needs to maintain appropriate temperature and humidity to ensure the aging effect.
(5) Blended seasoning
Mix different batches and ages of wine to balance the taste.
Use specialized seasoning wine or special techniques to adjust the final flavor of the wine.
(6) Packaging and leaving the factory
The packaging of wine includes processes such as bottling and labeling.
After completion of packaging, liquor can leave the factory and enter the market.
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
In March, 2023, the Ministry of Industry and Information Technology and ten other departments issued the Guiding Opinions on Cultivating Traditional Advantageous Food Production Areas and Local Characteristic Food Industries, which mentioned strengthening the protection and utilization of high-quality edible agricultural product raw material variety resources, strengthening the expansion and breeding of rare and colorful agricultural product varieties, and providing strong support for the development of local characteristic food industries.
The Ministry of Agriculture and Rural Affairs has released the Three-Year Action Plan for Promoting the Development of Agricultural Product Processing Industry (2024-2026), proposing to support the integration of policies, aggregation of factors, and centralized services in agricultural counties, build and upgrade a number of agricultural product processing parks, and guide agricultural product processing enterprises to concentrate in the parks and sink to the production areas. Classify and construct a batch of agricultural product processing parks. Support grain producing counties, animal husbandry counties, fishery counties, and agricultural reclamation groups to build a number of agricultural product processing parks with high standard raw materials, high-efficiency processing, efficient logistics, high-tech support, and high-quality brands, and promote the sinking of processing capacity to counties.
(2) Location and transportation advantages
Longjing City is located in the eastern part of Jilin Province, southeast of Yanbian Korean Autonomous Prefecture, at the eastern foot of Changbai Mountain. It is the forefront of the Changchun-Jilin-Tumen Development and Opening-up Pilot Zone, the core of international cooperation in the Tumen River region, and the integrated construction of Yanji-Longjin-Tumen. It is 18 kilometers away from the capital of the autonomous prefecture, Yanji City, and 13.5 kilometers away from the important international airport Yanji Airport in eastern Jilin Province. It is also 110 kilometers away from Hunchun City, the starting point of the new route from Hunchun to Zarubino. The Longjing border is 142.5 kilometers long and has two national land ports, Sanhe and Kaishantun.
(3) Resource advantages
As the birthplace of Chinese Korean culture and the cradle of Yanbian culture and education, Longjing City has a strong historical and cultural heritage, and is known as the “hometown of education”, “hometown of singing and dancing”, “hometown of apple pears”, “hometown of matsutake mushrooms”, and “hometown of culture”. There are various types of specialty resources, including Chinese apple pears, red sun cured tobacco, yellow cattle, and fine wool sheep production bases, as well as Jilin Province’s commodity grain production base and agricultural comprehensive development experimental base; there are the largest orchard in Asia, the “Ten-Thousand-Acre Orchard”, the largest artificial bear breeding base in China, the “Oriental Bear Paradise”, and the “Jilin Tianfozhi Mountain National Nature Reserve” aimed at protecting matsutake mushrooms and their ecosystems. These natural resources provide the fundamental advantages and raw material sources for this project.
1.2 Contents and scale of project construction
The total land area is 50000 square meters and the total construction area is 30000 square meters. The main construction contents include the wine culture ecological landscape area, office building, research and development building, brewing workshop, liquor blending workshop, packaging workshop, finished product warehouse, logistics packaging workshop, and other ancillary facilities.
1.3 Total investment of the project and capital raising
The total investment of the project is 600 million yuan, including the construction investment of 480 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 350.88 million yuan, its profit will be 105.26 million yuan, its investment payback period will be 7.7 years (after the tax, including the construction period of 2 years) and its return on investment will be 17.54%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
This project is not only seen as a new engine for promoting local economic development, but also sets a new benchmark in environmental protection and sustainable development. Residents are full of expectations for this project, believing that it will bring them more job opportunities and improve their quality of life. Government officials and experts also unanimously believe that the implementation of this project will help enhance the overall competitiveness of Longjing City, while providing citizens with a healthier and greener living environment. In addition, the construction of the project has also received support from environmental organizations, who believe it is a positive practice for the rational utilization of natural resources and ecological protection. Overall, the construction project of Longjing Health Ecological Industry Base has received high praise in society and is considered a model for promoting harmonious coexistence between local economy and environment.
1.5 Cooperative way
Sole proprietorship
1.6 What to be invested by the foreign party
Funds, equipment or technology
1.7 Construction site of the project
Zhixin Town, Longjing City
1.8 Progress of the project
The project cooperation plan has been prepared.
2. Introduction to the Partner
2.1 Basic information
Name: Longjing Bureau of Commerce
Address: 626 Dongshan Street, Longjing City
2.2 Overview
Longjing City is a county-level city under the jurisdiction of Yanbian Korean Autonomous Prefecture in Jilin Province, with a total area of 2208 square kilometers and a total population of 167000. Among them, the Korean population is 110800, accounting for 66.4%. Longjing is an ethnic minority and border area, as well as a gathering place for multiple national policies. Its characteristics can be summarized as “one profound and four excellent characteristics”, namely, profound cultural heritage, superior location, favorable policies, high-quality resources, and excellent environment.
Longjing is relatively rich in coal, metal, and non-metal minerals, with Sanfeng Stone, known as the “world’s first acid resistant stone”, as well as abundant oil and natural gas resources. 33 types of mineral resources have been discovered, including coal, natural asphalt, copper, lead, zinc, gold, cadmium, iron, molybdenum, acid resistant andesite, wollastonite, limestone, diabase, and mineral water; there are a wide variety of specialty resources, with 1072 species of wild economic plants growing in 124 families, including 186 precious medicinal plants. Wild economic animals include black bears, wild boars, roe deer, forest frogs, etc. Longjing City is a production base for Chinese apple pears, green rice, red sun cured tobacco, and yellow cattle. It has the world's largest contiguous apple pear orchard, the largest artificial bear breeding base in Jilin Province, and the national-level Tianfozhi Mountain Matsutake Nature Reserve, enjoying the reputation of “the hometown of Chinese apple pears” and “the hometown of Matsutake mushrooms”.
Longjing belongs to the mid temperate semi humid monsoon climate zone, with distinct four seasons, green mountains and clear water. The forest coverage rate reaches 70.6%, and the green coverage rate reaches 46.3%. “There is no severe cold in winter and no scorching heat in summer in Longjing.” It has a good ecological environment and is a livable city. Longjing has a high content of negative oxygen ions in its air, and its air quality remains at the national level 2 standard throughout the year, earning it the title of a natural oxygen bar; the water quality of the entry and exit sections meets the requirements of Class 3 and Class 4 water bodies, respectively, and the surface water quality of the city meets the requirements of Class 4 water bodies. It has successively won the titles of provincial-level “Garden City” and provincial-level “Ecological City”. All 7 townships have passed the ecological township construction planning demonstration. Sanhe Town and Dexin Township have passed the national ecological township acceptance, and 55 villages have passed the state-level ecological village acceptance.
In recent years, Longjing City has adhered to the guidance of the Scientific Outlook on Development, led cadres and masses of all ethnic groups in the city to liberate their minds, worked hard, and maintained stable and rapid economic and social development. In 2008, it entered the top 200 soft power companies in counties and cities across the country; in 2009, it won the second prize of the “Weak County (City) Striving for Excellence and Leapfrogging Award” in the provincial county-level work evaluation; in 2010, it was rated as one of the first batch of “advanced counties and cities” for national rule of law construction, and ranked first in the satisfaction evaluation of residents’ sense of security in the province. It has been awarded the title of “Dual Support Model City” in the province for seven consecutive times.
2.3 Contact method
2.3.1 Contact method of the partner
Contact unit: Longjing Bureau of Commerce
Address: 626 Dongshan Street, Longjing City
Contact person: Yang Rui
Tel: +86--433-3258116 +86-15584632868
2.3.2 Contact method of the city (prefecture) where the project is located
Contact unit: Yanbian Bureau of Commerce
Contact person: Li Jingyu
Tel: +86-13596515933