Medicine & Health
Modern Traditional Chinese Medicinal Material Deep Processing Project of Yanbian Prefecture
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Traditional Chinese medicinal material, as a treasure of traditional Chinese medicine (TCM) of Chinese nation, has a long history and profound cultural heritage. However, the traditional processing methods of traditional Chinese medicinal materials are no longer able to meet the demands of the modern market. Therefore, deep processing of traditional Chinese medicinal materials has become an important way to promote industrial upgrading and increase added value of the products.
This project is planned to be built in the Jilin Antu County Economic Development Zone, to construct a deep processing base for traditional Chinese medicinal materials that integrates processing, airing and drying, warehousing, office, factory buildings, and research and development, etc.
1.1.2 Market prospect
(1) The current situation of traditional Chinese medicinal material industry
In recent years, the traditional Chinese medicinal material industry has developed rapidly with the increasing global interest in natural drugs and traditional medicine. Its market size has continued to expand, especially in regions such as China, India, and Southeast Asia where traditional medicine is widely used. With the improvement of health awareness and the arrival of an aging society, it is expected that the traditional Chinese medicinal material market will continue to maintain a growth trend in the coming years.
The industrial chain of traditional Chinese medicinal materials includes links such as planting, collection, processing, sales, and application, etc. The planting link is mainly concentrated in specific production areas of traditional Chinese medicinal materials, such as Sichuan, Yunnan, Gansu and other places in China. The processing link includes initial processing and deep processing. Initial processing mainly involves cleaning, drying, and slicing, etc., while deep processing involves extraction, concentration, and making into various dosage forms, etc. The sales link includes wholesale markets for traditional Chinese medicinal materials, pharmacies, hospitals, and e-commerce platforms, etc.
According to data from the China Association of Traditional Chinese Medicine, from 2018 to 2022, the overall scale of the traditional Chinese medicine industry in China showed a fluctuating growth trend, increasing from 637 billion yuan in 2018 to over 700 billion yuan in 2022. According to data from the China Association of Traditional Chinese Medicine, in 2023, the operating income of 75 listed TCM enterprises had a year-on-year growth of 14.3%, and the scale of the TCM industry in China reached 833.2 billion yuan.
The regulatory policies for the traditional Chinese medicinal material industry vary among governments of different countries. In China, the government has implemented strict regulatory policies for the traditional Chinese medicinal material industry, including GAP (Good Agricultural Practice), GMP (Good Manufacturing Practice), and GSP (Good Supply Practice), etc. In addition, the importing countries of traditional Chinese medicinal materials have also formulated corresponding regulations to ensure the quality and safety of traditional Chinese medicinal materials.
With the progress of technology, the traditional Chinese medicinal material industry continues to innovate in aspects such as planting, processing, and quality control, etc. For example, using modern biotechnology to improve the variety of traditional Chinese medicinal materials, using modern analytical techniques to evaluate the quality of traditional Chinese medicinal materials, and developing new formulas and dosage forms of traditional Chinese medicinal materials, etc.
The market competition of traditional Chinese medicinal materials is fierce, with participants including planting enterprises, processing enterprises, traders, and e-commerce platforms, etc. of traditional Chinese medicinal materials. Large enterprises gain market advantages by means of large-scale planting, brand building, and channel expansion, etc., while small enterprises have certain competitiveness in specific varieties or regional markets.
The challenges faced by the traditional Chinese medicinal material industry include excessive resource development, ecological environment damage, great difficulty in quality control, and fierce market competition, etc. In terms of opportunities, with the increasing emphasis on natural medicines and traditional medicine of the people, the traditional Chinese medicinal material industry is expected to usher in a greater development space. In addition, the internationalization of traditional Chinese medicine has also provided new market opportunities for the traditional Chinese medicinal material industry.
The consumers’ demand for traditional Chinese medicinal materials mainly focuses on health care, disease prevention and treatment, and other aspects. With the increasing awareness of health, more and more consumers tend to use natural drugs and traditional medicine for health management. In addition, with the spread of traditional Chinese medicine culture, the demand for traditional Chinese medicinal materials in overseas markets is gradually increasing.
Overall, the traditional Chinese medicinal material industry is developing to be more normalized, standardized and internationalized driven by market demand, technological innovation, and policy support. However, the industry still faces challenges such as resource conservation, quality control, and market competition, etc.
(2) Prospect analysis for modern deep processing of traditional Chinese medicinal materials
It is expected that in the coming years, with the continuous increase in global demand for natural drugs and health products, as well as the sustained support of national policies for the traditional Chinese medicine industry, the market size of the Chinese herbal medicine processing industry will continue to maintain a stable growth. This growth trend is not only due to the people’s increasing preference for natural remedies and alternative medicine, but also closely related to the improvement of global health awareness.
With the continuous progress of technology, the Chinese herbal medicine processing industry will pay more attention to technological innovation and industrial upgrading. By introducing modern scientific and technological means such as biotechnology and information technology, it aims to improve the technical level of planting, processing, and manufacturing of traditional Chinese medicinal materials, and promote the precise and intelligent development of the Chinese herbal medicine industry. This can not only improve the production efficiency, but also guarantee the product quality, thereby meeting the market’s demand for high-quality Chinese herbal medicine products.
With the promotion of the “Belt and Road” construction and the strengthening of international cooperation in traditional Chinese medicine, the Chinese herbal medicine processing industry will actively participate in international competition and enhance its international influence. In the future, Chinese herbal medicine products are expected to quickly enter the international market through various channels such as cross-border e-commerce platforms and international exhibitions, etc., meeting the demand of consumers from more countries and regions for natural health products. This will contribute to the global dissemination of Chinese herbal medicine culture and bring new growth points to the industry.
The consumers’ demand for Chinese herbal medicine is showing a diversified trend, with an increasing demand for herbal products for prevention and health care, treatment of chronic diseases, and enhancement of immunity. Meanwhile, the requirements for product quality are also becoming higher, with more emphasis on product safety, effectiveness, and stability. In addition, the application of traditional Chinese medicinal materials in the field of health care is becoming increasingly widespread, which promotes further development of the market.
To sum up, the Chinese herbal medicine processing industry has broad market prospect and enormous development potential. Driven by multiple factors such as policy support, technological innovation, and accelerated internationalization, etc., the industry is expected to continue to maintain a stable growth trend.
1.1.3 Technical analysis
The extraction production part of this project adopts the currently advanced international supercritical carbon dioxide extraction technology, which is characterized by room temperature, no toxicity, environmental protection, safe and simple to use, short extraction time, and high product quality, etc. It has demonstrated its unique advantages in the extraction of active ingredients in traditional Chinese medicine.
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
The Several Opinions on Supporting and Promoting the Development of Traditional Chinese Medicine issued by the State Council clearly pointed out that, in order to enhance the development level of the TCM industry, we should promote the sustainable development of TCM resources, build a modern TCM industrial and commercial system of TCM, and strengthen the TCM management.
The Work Plan for Poverty Alleviation Action Plan of Traditional Chinese Medicinal Material Industry in Jilin Province proposed to create a new pattern of industrial targeted poverty alleviation through the construction of a “Traditional Chinese Medicinal Material Industry Poverty Alleviation Demonstration Base”, exploring the establishment of “planting medicinal gardens”, and building good breeding bases to create a batch of medicinal material bases; Support the development of appropriate-scale planting and cultivation households of traditional Chinese medicinal materials, promote the integration and development of various new agricultural management entities to cultivate a batch of management entities, and promote the linkage between agricultural enterprises and guiding stock cooperation to enhance the effectiveness of targeted poverty alleviation in the industry; Meanwhile, continuously improve the production and industrialization level of traditional Chinese medicinal materials, strengthen the construction of the quality standard system for traditional Chinese medicinal materials, enhance the brand value and influence of the traditional Chinese medicinal material industry, improve the comprehensive utilization rate and added value of traditional Chinese medicinal materials in poverty-stricken areas, promote the in-depth integration of tourism and traditional Chinese medicine health services, and effectively add value to poverty alleviation achievements; In addition, establish a batch of comprehensive service, information service, and technical training platforms to support the sustainable development of the poverty alleviation industry.
(2) Location advantages
Antu County is located in the eastern part of Jilin Province and the southwestern part of Yanbian Prefecture, along the transportation artery of Northeast China, with roads and railways extending in all directions. The national highways, expressways, railways, and high-speed railways pass through the northeast of the county. There are two railway stations in Antu County, one is a regular railway station (Antu Station) and the other is a high-speed railway station (Antu West Station), with extremely convenient transportation. Antu County has a broad prospect for opening up to the outside world, and Antu Shuangmufeng Port is the only national-level land port on the border between China and North Korea. In addition, the Shenyang-Baihe High-speed Railway is under construction and is expected to be officially open to the public in 2025. After completion, the travel time from Beijing to Changbai Mountain will be shortened to 4 hours, further enhancing the transportation advantage of Antu County.
(3) Resource advantages of the project
Located in the hinterland of Changbai Mountain, Antu County is the first county of Changbai Mountain, and the largest producing county of Changbaishan ginseng. At present, the total planting area of ginseng in the county is 626.5 hectares, with an annual output of 2,152 tons. The area of field ginseng has developed to 200 hectares. The area of under-forest ginseng has developed to 3,580 hectares, mostly around 15 years, with an annual output of under-forest ginseng at about 200 kilograms. At present, the county is actively developing the non-forest land planting model of ginseng to replace the traditional deforestation for planting ginseng. It is expected that the non-forest land ginseng planting base area will reach 1,000 hectares and the output will be about 800 tons/year in 5 years.
1.2 Contents and scale of project construction
1.2.1 Product scale
The project will produce formula granules, capsules, pills, and tablets, etc. of traditional Chinese patent medicines at 2,000 tons/year.
1.2.2 Product scale
The project has a planned area of 6 hectares, and mainly includes the construction of airing and drying sites and warehouses of traditional Chinese medicinal materials, standardized factory buildings for deep processing of traditional Chinese medicinal materials, office buildings, research and development centers, etc., and well as construction of new production lines for TCM decoction pieces, extraction of TCM intermediates, conversion and utilization of TCM intermediates, TCM formula granules, capsules, and tablets, etc.
1.3 Total investment of the project and capital raising
The total investment of the project is 100 million yuan, including the construction investment of 80 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 income will be 114.94 million yuan, its profit will be 34.48 million yuan, its investment payback period will be 5.4 years (after the tax, including the construction period of 2.5 years), and its investment profit rate will be 34.48%.
Note: “10 thousand yuan” in the table is in RMB
1.4.2 Social evaluation
The project has not only significantly enhanced the industrial added value of traditional Chinese medicinal materials, but also greatly improved the production efficiency and product quality by introducing advanced processing technology and equipment. This has not only brought considerable economic benefits to local farmers and planting households of traditional Chinese medicinal materials, but also promoted the prosperous development of the economy throughout the region. Meanwhile, the deep processing project has guaranteed the safety and effectiveness of traditional Chinese medicinal materials through strict quality control and standardized processes, providing the consumers with safer and more reliable health products. In addition, the project actively promotes the TCM culture, and allows more people to understand the history and value o TCM through education and training activities, thereby enhancing the influence of TCM culture worldwide.
1.5 Cooperative way
Sole proprietorship, joint venture and cooperation
1.6 What to be invested by the foreign party
Funds, other ways can be discussed in person
1.7 Construction site of the project
Jilin Antu County Economic Development Zone.
1.8 Progress of the project
The project proposal has been prepared
2. Introduction to the Partner
2.1 Basic information of unit
Name: Yanbian Prefecture Commerce Bureau
Address: No. 3322 Tianchi Road, Yanji City, Yanbian Korean Autonomous Prefecture, Jilin Province
2.2 Overview
Antu County is located in the eastern part of Jilin Province and the southwestern part of Yanbian Korean Autonomous Prefecture. The main scenic spots such as the famous main peak of Changbai Mountain and Tianchi Waterfall are located in the southern part of the county, hence Antu is known as “The First County of Changbai Mountain”. The county covers an area of 7,444 square kilometers, with 7 towns and 2 townships under its jurisdiction, and a total population of 210,000, of which the Korean ethnic group accounts for 19.5%. Antu has excellent ecological environment and outstanding resource endowment. It is a National Ecological Demonstration Zone, National Tourism Comprehensive Reform Pilot Zone, National Export Quality and Safety Demonstration Zone, Chinese Ecological Origin Brand Demonstration Zone, Chinese Green Traditional Chinese Medicinal Material Export Base County, Hometown of Mineral Water in China, Hometown of Ginseng in China, and Hometown of Bees in China. Meanwhile, Antu County is also the poverty alleviation contact point of the Central Policy Research Office and the only contact point for the National Ethnic Affairs Commission’s national action to promote border development and enrich the people.
There is intact ecology in Antu. It has the most important and high-quality natural ecological resources for human survival and development, such as air, water, soil, and vegetation, etc. As an ecological barrier in Northeast China, Antu County has a forest coverage rate of 87% and over 100,000 negative oxygen ions in the air per cubic centimeter, similar to that in Hainan; It has the world’s best mineral water resources, with 88 rivers in the area, and it is the source of the Songhua River, Tumen River, and Yalu River; It has fertile black soil resources in Northeast China, and has nurtured precious and abundant under-forest resources.
There is a pleasant climate in Antu. Belonging to temperate continental monsoon climate, it has first-class air quality 365 days a year. Antu has distinct four seasons, with an average temperature of 4.3℃ throughout the year and an average temperature of 19.3℃ in summer. It is an ideal summer paradise for “enjoying the mountains, water, and nostalgia”. In 2017, it was also named one of the top ten summer resorts in Jilin Province, known as the “Thousand-year Forest Sea, Ten-Thousand-Year Streams, Bathing in Coolness, and Enjoying Peace in Antu”; The average temperature in winter here is -12.7℃, which is suitable for outdoor activities such as hiking, snow walking, and ice sports, etc. It has a winter that can be enjoyed.
There is policy enrichment in Antu. Antu County is located in a border ethnic minority area and is a key county for poverty alleviation and development at the national level. Therefore, it enjoys a series of preferential national policies such as the West China Development, the revitalization of the old industrial base in Northeast China, the Tumen River regional cooperative development, and ethnic trade counties, etc.
2.3 Contact method
2.3.1 Contact method of the project:
Contact person: Li Na
Tel: +86-0433-5896019+86-13844730267
Postal Code: 133605
E-mail: atjjkfq@126.com
2.3.2 Contact method of the city (prefecture) where the project is located:
Contact unit: Yanbian Prefecture Commerce Bureau
Contact person: Li Jingyu
Tel: +86-13596515933