Modern Service Industry
Ecological Livable Health Town Project of Baishan City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Ecological Health City is a high-end leisure and elderly care center that integrates health preservation, sports and tourism, and ecological agriculture. It can achieve the goals of relaxing the mind, regulating physiology, and fitness and leisure.
The project relies on the superior ecological environment and pleasant scenery of Jiangyuan District, and leverages the resource advantages of “mountains, water, forests, springs” to build a medical center, rehabilitation training center, traditional Chinese medicine health center, health care center, high-end beauty center, fitness and entertainment center, high-end nursing home, resort hotel and other contents, creating a leisure and health center that integrates natural scenery and health rehabilitation functions.
1.1.2 Market prospect
(1) Health and wellness industry
The health and wellness industry is a comprehensive industry with health and wellness as its core, covering multiple fields and sectors. It is committed to providing comprehensive physical and mental health services for people, with broad development prospects and market demand. With the continuous advancement of technology and policy support, the healthcare industry will continue to grow and make greater contributions to human health.
Elderly health services cover multiple aspects such as health promotion, disease prevention, medical treatment, rehabilitation nursing, long-term care, psychological care, and health education. With the continuous increase in consumer demand for health, the market demand for health products and healthy foods continues to grow. Traditional Chinese medicine health preservation includes traditional Chinese medicine health tourism, immersive interactive experiences of traditional Chinese medicine culture, etc. With the application of technologies such as big data and artificial intelligence, customized health management solutions have become possible for health management services. Health tourism integrates multiple formats such as elderly care, health preservation, medical care, culture, hotels, and travel, forming a complex and diverse industrial system.
With the intensification of population aging and the prevalence of chronic diseases and sub-health conditions, the public's attention to personal health issues is increasing day by day. At the national level, the development of the healthcare industry is also highly valued, and medical care and elderly care services have been included in important development plans. In addition, various sectors of society are actively promoting the progress of China’s health and medical industry, painting a broad development prospect for the future of the health and wellness industry and demonstrating enormous development potential. At the same time, this also indicates that the elderly care industry is about to usher in a new development opportunity and become a new growth point.
The health and wellness industry is building circles and strengthening chains, and enterprise investment is accelerating. On the one hand, the establishment of comprehensive “health and wellness platforms” has reached a historic high, extending from “single-point platforms” to “full-industry chains”, with a total of over 90 platforms established; secondly, the health and wellness forum has also reached its peak, with a total of over 140 sessions. At the same time, since 2022, the investment in enterprise health and wellness has been growing rapidly for two consecutive years. In 2023, the number of registered elderly care enterprises reached a historic high of 71000.
The capital market is optimistic about the silver economy. Various capital sources have seized the healthcare market, and by 2023, 18 companies have accumulated over 1.75 billion yuan in healthcare financing; from the stock price increase of various related sub-sectors in the stock market in 2023, the collective rise of pension concept stocks was led by other related fields, with an increase of 11.64%.
Seven development opportunities for health and wellness enterprises:
Public and private construction. Public construction and private operation has become a hot topic in the industry and a battleground for various elderly care enterprises; home-based elderly care services. Adhere to the needs of 99% of home-based elderly care, take revitalizing existing properties as a breakthrough point, accurately match resources, and link supply and demand services; A61 Elderly care land. A61 land use has officially undergone changes, with land prices lowered and thresholds raised, highlighting the advantages of top real estate companies in acquiring land; the “health and wellness+” model. The “health and wellness+” model will be a new opportunity for real estate companies to explore the health and wellness market in the future, with great potentials; health and wellness marketing. Against the backdrop of low occupancy rates in the elderly care industry, the marketing capabilities of the healthcare industry have become a new opportunity for future development; AI+intelligent elderly care, such as smart platforms, intelligent nursing, intelligent companionship, etc; segmented operational services, such as dementia care, elderly care, medical rehabilitation, etc.
The inevitable trend of population aging provides many opportunities for real estate companies to enter the elderly care industry, and the future market capacity still needs to be further improved.
(2) Market analysis of the health and wellness tourism industry
According to the National Health and Wellness Tourism Demonstration Base Standards, health and wellness tourism is defined as the sum of various tourism activities that enable people to achieve a natural and harmonious state of mind, body, and spirit through various means such as beauty and fitness, nutritious diet, mental cultivation, and environmental care.
Practice precedes theory in the development of health tourism in China. In 2002, Sanya, Hainan Province was the first to introduce health tourism, but its development scale was limited. In 2012, Panzhihua proposed to develop a national “health and wellness tourism” city, and China’s health and wellness tourism market began to develop rapidly. In January, 2016, the National Tourism Administration released the Standard for National Health and Wellness Tourism Demonstration Bases and clarified the concept of “health and wellness tourism”. Health and wellness tourism was officially included in the country’s economic development strategy. The comprehensive emphasis on health and wellness is one of the important signs of economic and social development, which is the progression from survival to daily life, and the emphasis on food and clothing to quality living. Since the 14th Five-Year Plan, the country has explicitly stated in relevant plans to vigorously promote the construction of health and wellness tourism demonstration bases, leading to a rapid development trend in the industry.
With the development of China’s economy and society, the improvement of people’s living standards, and the increasing demand for health and physical fitness among the population, China will enter an aging society, and the aging problem will become increasingly severe. At present, 70% of the population in China is in a sub-healthy state, 21% of the elderly population over 60 years old, 15% of the population in a diseased state, and over 400 million middle-class people pursuing a high-quality life, all of which provide a huge market for health tourism.
According to relevant data and predictions, the size of the health and wellness tourism market has grown from about 40 billion yuan in 2015 to nearly 105 billion yuan in 2023, with an average annual compound growth rate of 13.10%. It is expected that by 2028, the size of China’s health and wellness tourism market will have approached 160 billion yuan.
Scales and Growth Rates of China’s Health and Wellness Tourism Market from 2015 to 2023
(3) Prediction of the development prospects of ecological livable health towns
Health is an eternal theme for humanity and an important symbol of social progress. With the development of China’s economy and society and the further improvement of people’s living standards, the increase of citizens’ leisure time, the widespread implementation of paid holidays, the improvement of tourism conditions, and the promotion of the development of international tourism, the enthusiasm of Chinese people for tourism will further glow.
With the continuous improvement of China’s residents’ income level, the acceleration of consumption structure upgrading, the increasing demand for quality of life, and the growing demand for health services brought about by population aging, the proportion of elderly and sub-health groups in the total population of many countries and regions in the world is increasing. The rehabilitation treatment market for elderly health and sub-health groups is an expanding market. According to incomplete statistics, the aging population and sub-healthy population in China account for over 50% of the total population. This is a large group.
Supported by industry, guided by high technology, based on the best service, and backed by strong funds, the country attaches great importance to the ecological health industry, and the health industry will face broad prospects. The ecological health city project has a good industrial foundation and there is still a lot of room for development. The market prospect is huge.
1.1.3 Technical analysis
This project has hired an internationally renowned team to provide professional design for the project’s planning layout, business format setting, functional positioning, etc., laying the foundation for the project’s vitality from the early design stage.
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
The Guiding Opinions on Further Promoting the Development of the Integration of Medical Care and Elderly Care clearly stipulate the implementation of the action plan for the development of the smart and healthy elderly care industry, and the development of products such as health management, elderly care monitoring, rehabilitation aids, digital intelligent products of traditional Chinese medicine, and home service robots to meet the health and elderly care needs of the elderly.
The 14th Five-Year Plan for the Development of the Elderly Care Industry and the Elderly Care Service System in Jilin Province clarifies the continuous integration and development of elderly care services with related industries, explores the “elderly care services+industry”model, and cultivates new formats such as living and elderly care, cultural elderly care, healthy elderly care, health preservation elderly care, and smart elderly care.
The “Healthy China 2030” Plan Outline proposes that by 2030, the scale of China’s health industry will have significantly expanded, and the total scale of the health service industry will have reached 16 trillion yuan.
The 14th Five-Year Plan for National Health proposes that by 2025, the health system will have been more perfect, the basic medical and health system with Chinese characteristics will have gradually improved, the unique advantages of traditional Chinese medicine will have been further utilized, and the innovation capability of health technology will have been significantly enhanced; consolidate the foundation for high-quality development of traditional Chinese medicine. Promote technological innovation in traditional Chinese medicine. Encourage innovation and use of new drug research and development, accelerate the development and industrialization of drugs for the treatment of major diseases urgently needed in clinical practice, and support the development of high-quality generic drugs. Promote the manufacturing and production of high-end medical equipment and health products, focus on the development of new health products such as health management, intelligent rehabilitation aids, scientific fitness, and traditional Chinese medicine health care, and promote the entry of qualified artificial intelligence products into clinical trials. Promote the development of intelligent service robots, implement rehabilitation aids, and promote the application of smart aging technology.
The 14th Five-Year Plan for the Development of the Service Industry in Jilin Province points out the need to promote the agglomeration development of service industry in city level central cities. Based on local resources, industrial advantages, and urban development, the central cities of Jilin, Siping, Liaoyuan, Yanbian, and Changbai Mountain Management Committee integrate service industry resources, optimize service industry development space, and vigorously cultivate and construct various service industry clusters and parks such as commercial logistics, tourism and leisure, cultural education, health and wellness, financial commerce, research and development, and advertising creativity.
(2) Resource advantages
Baishan City is located in the heartland of Changbai Mountain, with the Yalu River and Songhua River flowing through it. It is famous for its mountains and beautiful waters, and is known as the “Changbai Forest Sea”, “Snow Kingdom”, “Three-dimensional Resource Treasury” and other reputations. A four season tourism pattern has been formed within the territory, including “enjoying mountain flowers in spring, climbing Tianchi in summer, admiring maple leaves in autumn, and playing with ice and snow in winter”. There is a national 5A level tourist attraction, Changbai Mountain. Fusong Xin’an and Manjiang are ancient city stations on the Northeast Asian Silk Road, Changbai Lingguang Pagoda is a remnant witness of the Bohai Kingdom in the Tang Dynasty, Hunjiang is the capital of the imperial city after the Bohai Kingdom was renamed Ding’an Kingdom, Jiangyuan’s “Tong’s Old Camp” was the foundation cradle of Nurhaci’s establishment of the Later Jin regime, and Changbai Mountain was the “rising land” of the Qing Dynasty. The spirit of Yang Jingyu, the spirit of the Anti-Japanese United Front, and the spirit of “Four Times of Safeguarding of Linjiang” have been passed down from generation to generation. On October 9, 2020, it was awarded the title of one of the fourth batch of national ecological civilization construction demonstration cities and counties by the Ministry of Ecology and Environment.
Along the Yalu River border tourism belt in Baishan City, there are many highlights such as Changbai Korean Folk Village, Wangtian’en Scenic Area, and Laosantuan Hot Spring Resort; the Songhua River Golden Tourism Belt integrates ecological, ice and snow, historical, folk, and red cultural resources; the Changbai Mountain Longmai Northeast China Cultural Tourism Belt connects the unique cultural features of the Changbai Mountain such as Songhua Stone Culture, Ginseng Culture, Manchu Culture, and Mineral Water Culture.
(3) Talent advantages
Baishan City will transport over 10000 skilled talents and train more than 20000 individuals of various types for the society. The labor resource advantages are obvious, and the proportion of skilled workers is at a high level in the urban agglomeration of Northeast China. 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 and transportation advantages
Baishan City is a prefecture level city under the jurisdiction of Jilin Province, located on the west side of Changbai Mountain, adjacent to Yanbian Korean Autonomous Prefecture to the east, Tonghua City to the west, Jilin City to the north, and facing the Democratic People’s Republic of Korea across the Yalu River to the south. It is situated in the hinterland of Changbai Mountain.
1.2 Contents and scale of project construction
1.2.1 Construction scale
This project covers an area of 120000 square meters.
1.2.2 Construction contents
The main construction area of the project is 100000 square meters, which includes supporting service facilities such as a medical center, a rehabilitation training center, a traditional Chinese medicine health center, a health care center, a high-end beauty center, a fitness and entertainment center, a high-end retirement apartments, a resort hotel, a commercial center, and a parking lot.
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 500 million yuan, including the construction investment of 400 million yuan and current funds of 100 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 377.19 million yuan, its profit will be 109.65 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 21.9%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
An ecological livable health town provides personalized and customized services to meet the health and wellness needs of different groups of people. Whether the elderly are seeking a place for retirement or young people are seeking a place for leisure and vacation, they can find a suitable lifestyle here.
This diversified service meets the needs of different groups of people and promotes social harmony and stability. The development of eco-friendly and livable health towns will drive the rise of related industries such as tourism, leisure, vacation, and elderly care, forming a diversified economic structure. The development of these industries not only provides more employment opportunities for local residents, but also promotes the prosperity of the local economy.
1.5 Cooperative way
Joint venture or cooperation, 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
Taiyangcha Town, Jiangyuan District, Baishan City
1.8 Progress of the project
It is attracting foreign investment.
2. Introduction to the Partner
2.1 Basic information
Name: People’s Government of Jiangyuan District
Address: Jiangyuan District, Baishan City
2.2 Overview
Jiangyuan District, belonging to Baishan City, Jilin Province, is expected to have achieved the main economic and social development goals of a regional GDP growth rate of over 7% by 2024; the total output value of industrial enterprises above a certain scale has increased by more than 20%; the fixed assets investment of the whole society has increased by more than 8%; the total retail sales of consumer goods have increased by over 8%; the per capita disposable income of urban and rural permanent residents has increased by over 6% and 8%, respectively
Jiangyuan District is a must pass area for Liaoning, Hebei, Shandong, Beijing and other places to reach Changbai Mountain Tourist Scenic Area via No. 201 National Highway; Highways and railways crisscross Jiangyuan District, with five national and provincial trunk highways including the Hegang-Dalian Line and Shenyang-Changchun Line running through the area, and the Hunchun-Baishan Line and the Yayuan-Dalizi Line, two railway trunk lines connecting the north and south. Jiangyuan is also the hometown of black fungi and Songhua stone in China; it has two national 3A level scenic spots, that is, the National Forest Park Ganfanpan and the Rare Stone Cultural City.
2.3 Contact method
Contact method of the city (prefecture) where the project is located:
Postal code: 134300
Contact unit: Baishan Bureau of Commerce
Contact person: Zhu Yuze
Tel: +86-439-3367020
+86-15844990231
+86-15567978656