欧宝体育

1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Cold chain logistics refers to a logistics transportation method in which goods are kept at a certain temperature throughout the processing, storage, transportation, distribution, retail, and other stages to maintain the quality of fresh food or the efficiency of other products (such as medicine) and reduce transportation losses. It consists of pre-cooling treatment, cold chain processing, cold chain storage, cold chain transportation and distribution, and cold chain sales, involving facilities such as cold storage, refrigerated trucks, insulated boxes, and refrigerated display cabinets. The cold chain logistics industry often requires continuous investment from large-scale enterprises to coordinate business processes such as order processing, transportation, distribution, carrier management, capacity management, return management, accounts receivable and payable management, and return management through a complete transportation management information system. This strengthens the overall linkage effect of the enterprise to reduce consumption costs and form a reasonable and efficient cold chain.

The cold chain logistics base project, as a key link in modern logistics systems, plays an important role in connection, transit, storage and preservation. The project is located in Hunchun City, relying on Hunchun’s geographical location and resource advantages to accelerate the development of logistics, commercial, and warehousing services, build a circulation service platform integrating supply, sales, and logistics, and gradually build a major commodity distribution center in Hunchun City and surrounding areas.

1.1.2 Market prospect

(1) Development status of cold chain logistics

According to the latest survey results of the Cold Chain Logistics Professional Committee of China Federation of Logistics and Purchasing, the overall demand of China’s cold chain logistics industry showed a steady growth trend in the first three quarters of this year, and the market size continued to expand. The total amount of cold chain logistics reached 6.4 trillion yuan, an increase of 4.2% compared to the same period last year. What is particularly noted is that during this period, the growth rate in the third quarter reached 4.5%, an increase of 0.8 percentage points compared to the second quarter. At the same time, the total revenue of cold chain logistics also achieved a growth of 3.6%, reaching 417.8 billion yuan.

Further investigation and analysis indicates that since the third quarter, fresh agricultural products have entered the peak consumption season, thanks to the gradual recovery of the catering industry and the rapid development of fresh e-commerce, which has steadily increased the demand for cold chain logistics.

In order to adapt to the rapid growth of cold chain logistics demand and meet the needs of market development, with the strong support of relevant national policies, the construction of cold chain infrastructure represented by cold storage is steadily advancing. According to incomplete statistics from China IoT Cold Chain Committee and Chain Warehouse Platform, the capital investment for cold storage projects in the first three quarters reached 36.507 billion yuan, a year-on-year increase of 7.53%. In addition, the enthusiasm of enterprises for purchasing new energy refrigerated trucks has also significantly increased. Data shows that the sales volume of new energy refrigerated trucks reached 9257 units in the first three quarters, an increase of 230.96% compared to the same period last year. The market penetration rate of new energy refrigerated trucks reached 22.4%, an increase of 15.8 percentage points year-on-year. In first tier cities, the proportion of new energy refrigerated truck equipment updates accounts for 50% to 60%.

Cold storage, as a key node in the cold chain logistics system, undertakes various functions such as distribution, sorting, and packaging of goods. As an essential infrastructure for cold chain logistics, the country is increasing efforts to build cold storage facilities in product production areas to promote the production and sales of fresh agricultural products, ensure the entire cold chain of agricultural products from the field to the dining table, and thus guarantee food safety and quality.

As of June 30, 2024, the total amount of cold storage in China has reached 237 million cubic meters, a year-on-year increase of 7.73%. During this period, the newly added storage capacity in 2024 reached 9.42 million cubic meters. In the first half of 2024, the rental volume of cold storage in China exceeded 29 million cubic meters, a year-on-year increase of over 8%.

The cold chain logistics industry connects the primary, secondary, and tertiary industries, which is an important industry for consolidating the achievements of poverty alleviation, effectively connecting rural revitalization, and promoting consumption upgrading. It is also a blue ocean in the logistics field. During the 14th Five-Year Plan period, China explicitly proposed to “build a modern logistics system, accelerate the development of cold chain logistics, coordinate the construction of logistics hub facilities, backbone lines, regional distribution centers, and end distribution nodes, and improve the facilities of national logistics hubs and backbone cold chain logistics bases”. It can be seen that in the construction of a new development pattern of dual circulation, the development of cold chain logistics will become an important driving force.

(2) Market prospects of the cold chain logistics industry

In recent years, the emerging industry of cold chain logistics has been experiencing rapid development and expansion. With the continuous growth of demand for cold chain products, governments around the world have also introduced a series of policies and measures to promote the further development of the cold chain logistics industry. From a global perspective, according to research reports, the size of the global cold chain logistics market has experienced a significant growth period from 160 billion US dollars in 2018, and is expected to have reached 585.1 billion US dollars by 2026. During this growth process, the annual compound growth rate is expected to approach 10%. In this global market, the Asia Pacific region, especially China, is predicted to be the main driving force for the continued expansion of the global market size in the next 5 to 10 years. The reason why China has become an important contributor to the growth of this region is mainly due to its rapidly developing cold chain demand and related infrastructure construction, which has enabled China to quickly transform from a production-oriented economy to a consumption oriented emerging market.

In China, as the income levels of urban and rural residents continue to rise, consumers’ demands for food diversity, nutrition, and taste have also significantly increased. At the same time, the rapid development of the fresh e-commerce market has also brought new growth points to the cold chain logistics industry. According to the publicly available data from the Cold Chain Professional Committee of the China Federation of Logistics and Purchasing (China Federation of Logistics and Purchasing Cold Chain Committee) and the China Business Industry Research Institute, the domestic cold chain logistics market continued to expand from 2015 to 2019, with an average annual compound growth rate of about 17%. By 2019, the market size of the cold chain logistics industry had reached 339.1 billion yuan, with a year-on-year growth rate of 17.50%. By 2020, the entire market had achieved the largest expansion in recent years, with an output value exceeding 400 billion yuan. Considering the strong growth momentum in the future, based on the current growth rate, it is predicted that by 2025, the scale of China's cold chain logistics market is expected to have further soared to about 897 billion yuan.

Hunchun City is located in the core area of the Northeast Asian economic circle, with significant geographical advantages. It borders Russia and North Korea, and can be conveniently connected to Japan, South Korea, and other places by land and water. This unique geographical location provides unparalleled conditions for the development of cold chain logistics in Hunchun City. With the support of national policies and investment of funds, Hunchun City, as a key development area, is expected to receive strong support for the construction of its marine economy cold chain logistics base project.

Hunchun City already has a certain foundation in the marine industry, which provides solid industrial support for the development of cold chain logistics. At the same time, with the improvement of residents’ consumption level, the demand for fresh seafood and frozen food is increasing day by day, and the cold chain logistics market has enormous potential. By building a cold chain logistics base, Hunchun City can further promote the development of the local marine economy, meet market demand, and enhance economic benefits.

In addition, the rapid development of the modern logistics technology provides strong technical support for cold chain logistics. Advanced technological means can reduce operating costs, improve service quality, and enhance market competitiveness. At the same time, the construction of cold chain logistics bases also helps reduce food waste, improve resource utilization efficiency, and is in line with the strategic goals of sustainable development.

In summary, the construction of a marine economy cold chain logistics base project in Hunchun City has broad development prospects. With its superior geographical location, solid industrial foundation, huge market demand, advanced technological support, and strong policy support, this project is expected to become a new engine for the economic development of Hunchun City, promoting the sustained growth of the local economy.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

On December 11, 2023, the General Office of the State Council issued a notice on the Measures to Accelerate the Integrated Development of Domestic and Foreign Trade. Among them, it is proposed to improve logistics convenience. Strengthen cross-border transportation cooperation with overseas ports and encourage shipping companies to expand the scope of cross-border transportation of domestic and foreign goods based on market-oriented principles. Accelerate the development of intermodal transportation between coastal and inland ports, expand the radiation range of domestic and international routes and transportation services in major ports. Support eligible enterprises to carry out domestic and foreign trade container transportation on the same ship, and promote a two-way operation mode of container foreign trade domestic and branch line import and export. Accelerate the construction of cross-border logistics infrastructure and support the construction of global and regional international postal and express delivery hubs in key cities.

In June, 2023, Jilin Provincial Government issued the Implementation Plan for China (Yanji) Cross-border E-commerce Comprehensive Pilot Zone (hereinafter referred to as the Plan), which provided policy support for “express delivery going globally”. The Plan requires the vigorous development of cross-border e-commerce express export and direct purchase import business, attracting the gathering of mail express business in Yanji City and surrounding countries, promoting the coordinated development of Yanji Airport International Express Supervision Center and airport, and vigorously developing cross-border e-commerce air mail express import and export business. Accelerate the expansion and upgrading of Yanji Airport International Express Supervision Center and Yanji Airport Cross border Direct Mail Clearance Platform, continue to expand overseas warehouse layout, utilize international mail express channels, overseas warehouses, cross-border e-commerce information systems and other resources, establish a comprehensive and intelligent cross-border e-commerce logistics warehousing, clearance, transportation, distribution and information management system, and create a modern comprehensive cross-border e-commerce logistics platform.

The plan emphasizes the need to promote the opening of more international routes at Yanji Airport, with a focus on developing cargo charter flights to South Korea. Make full use of existing postal routes to Russia and South Korea, and promote the normalized operation of cross-border postal routes. Relying on cross-border e-commerce industrial parks and logistics parks, accelerate the construction and improvement of the cold chain logistics system. Construct an international cargo terminal and Yanji Airport International Express Supervision Center at Yanji Airport, coordinate the construction of air land intermodal transportation, and actively create cross-border e-commerce trade channels.

(2) Location advantages

Hunchun is located at the geometric center of Northeast Asia and is one of the windows to Northeast Asia and the starting points of the Eurasian Continental Bridge in China. It is the closest point from China to North America and Northern Europe via the Sea of Japan, only 15 kilometers away from the mouth of the Tumen River. Within a 200 kilometer radius centered on Hunchun, there are 10 ports distributed. Hunchun Port is 42 kilometers away from the Port of Pochet in Russia, 63 kilometers away from the Port of Zarubino, and 180 kilometers away from the Port of Vladivostok; Quanhe Port is 48 kilometers away from the port of Rajin  and 127 kilometers away from the port of Chongjin in North Korea. The cross-border transportation project of domestic goods from Hunchun to Shanghai and Ningbo has been successfully operated and is increasingly playing an important role. The destination ports have expanded from Shanghai and Ningbo to ports such as Huangpu in Guangdong, Shantou, Quanzhou in Fujian, and Yangpu in Hainan. The types of freight have also expanded from coal to grain, timber, and brass. The second major channel for shipping to the sea in Northeast China is gradually taking shape; Yanji Airport, which is only an hour away from Hunchun, has opened more than 10 international and domestic routes; the Jilin-Hunchun Passenger Dedicated Line was completed in 2014.

(3) Project advantages

In recent years, the bilateral relationship between China and Russia has made remarkable progress, and the cooperation between the two countries in various fields such as economy, culture, and military is deepening. The Far East of Russia has abundant energy resources, such as oil, natural gas, timber, and coal, which are in short supply in China, especially in Jilin Province. The construction of the project is an important carrier for Hunchun City to implement the provincial and state decision-making arrangements and accelerate the construction of a land border port type national logistics hub. After the implementation of this project, it will greatly increase the port throughput, alleviate the energy shortage pressure in Jilin Province and even Northeast China, deeply integrate into the domestic and international dual circulation, and promote the development of Hunchun’s open economy to a higher level.

1.2 Contents and scale of project construction 

The project covers an area of 71200 square meters with a building area of 115000 square meters. It mainly includes the construction of a cold chain logistics warehousing center, a processing plant, a comprehensive office and trade hall, equipment rooms, dormitories, and other supporting facilities.

1.3 Total investment of the project and capital raising

The total investment of the project is 610 million yuan, including the construction investment of 488 million yuan.

1.4 Financial analysis and social evaluation

1.4.1Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 350.57 million yuan, its profit will be 105.17 million yuan, its investment payback period will be 7.8 years (after the tax, including the construction period of 2 years) and its return on investment will be 17.24%.

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

1.4.2 Social evaluation

This project not only injects new vitality into the local economy, but also provides more efficient and convenient logistics services for seafood products in the surrounding areas, greatly meeting market demand and improving the quality of life of citizens. Through this cold chain logistics base, fresh seafood can reach consumers’ tables at a faster speed and in a better preserved state, ensuring the freshness and safety of the food. In addition, the project has created a large number of employment opportunities for local residents, promoted the development of related industrial chains, and driven economic growth in the surrounding areas. Citizens speak highly of this project, believing that it not only improves their daily lives but also lays a solid foundation for the future development of the city.

1.5 Cooperative way

Joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, equipment or technology

1.7 Construction site of the project

Hunchun Border Economic Cooperation Zone

1.8 Progress of the project

The project cooperation plan has been prepared.

2. Introduction to the Partner

2.1 Basic information

Name: Hunchun People’s Government

Address: 1991 Xin’an Road, Hunchun City, Yanbian Korean Autonomous Prefecture

2.2 Overview

Hunchun City is located in the easternmost part of China, with an area of 5141.23 square kilometers. It governs 9 townships including Ying’an Town, Chunhua Town, Jingxin Town, Banshi Town, Hadamen Township, Machanzi Township, Mijiang Township, Yangpao Manchu Township, and Sanjiazi Manchu Township, as well as 4 streets including Jinghe Street, Xin’an Street, Henan Street, and Qianhai Street. With a population of over 300000 people from 11 ethnic groups including Han, Chao, Manchu, and Mongolian, Hunchun City belongs to border counties, ethnic counties, and open frontier cities. It is known for “geese singing to be heard in the three countries, tigers howling to shake three states, flowers blooming and fragrant to smelled by three neighbors, and laughter spread to three states”, with the unique “five advantages”.

Unique location advantages. Hunchun is located in the Golden Triangle of Northeast Asia, connecting three countries and accessible to five countries. It is a gateway for China to Northeast Asia and one of the starting points of the Eurasian Continental Bridge.

Unique ecological advantages. Hunchun has a forest coverage rate of over 86%, with per capita water resources five times the national average. Its air quality ranks among the top in the country and is known as the “natural oxygen bar”. Hunchun has a national level anti Sichuan scenic spot and a Manchurian Tiger and Leopard National Park. More than 70 wild Manchurian tigers and leopards have been monitored in the area, making it the only hometown of tigers and leopards in the country.

Unique resource advantages. Hunchun is home to the second largest gold belt in Jilin Province and the largest tungsten mine in Asia, with abundant reserves of non-ferrous metal mineral resources such as copper, aluminum, and zinc. The per capita water resources are five times the national average. Surrounding countries have abundant resources such as seafood, minerals, and timber, with broad development prospects. Hunchun is still a rich land of fish and rice, producing local specialties such as selenium rich rice, apples, Yanbian yellow cattle, matsutake mushrooms, as well as precious medicinal herbs such as ginseng, Nyingchi, and deer antler.

Unique policy advantages. Hunchun enjoys many national policies such as border opening up, Northeast revitalization, border ethnic groups, and western development. In April, 2012, the State Council approved the establishment of China Tumen River Region (Hunchun) International Cooperation Demonstration Zone; in September, 2015, Jilin Provincial Party Committee and Government issued the the Opinions on Supporting Hunchun City to Accelerate Opening up and Development; in 2019, “Supporting Hunchun to carry out demonstration of marine economic cooperation and development” became an important content of the Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting Northeast China to Deepen Reform and Innovation and Promote High-quality Development (ZF [2019] No. 37), which is a groundbreaking event in the history of Hunchun’s open development; in January, 2020, Jilin Provincial Party Committee and Government once again issued the Opinions on Supporting Hunchun to Carry out Marine Economic Cooperation and Development Demonstration, which further highlighted Hunchun’s important position in the Northeast China’s opening-up pattern.

2.3 Contact method:

2.3.1 Contact method of the partner

Contact person: Kou Hanqian

Tel: +86-13596510777

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