1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Aluminum alloy medical devices refer to instrument, equipment, appliances, calibrators, materials, and other similar or related items that are directly or indirectly used for the human body using aluminum alloy as the material.

Table 1 Excellent Characteristics of Medical Aluminum Profiles

Medical aluminum profiles are widely used in various fields of medical equipment, covering the entire chain of the medical treatment and health industry, from precision surgical devices and medical beds to advanced imaging equipment and laboratory tools. For example, surgical devices are made of medical aluminum profiles, which has guaranteed their portability and durability, and reduced the operational burden during the surgical process; The medical beds are designed to be made of aluminum profiles, which not only reduces the their overall weight, but also optimizes their flexibility of movement and adjustment; The aluminum profile frame of the imaging equipment effectively supports heavy-duty equipment, and also reduces the equipment weight, which facilitates the movement and installation, and improves medical efficiency and patient experience.

Relying on the existing foundation of Liaoyuan City, the project is to construct an aluminum medical device project in Liaoyuan High-tech Industrial Development Zone, Jilin Province.

1.1.2 Market prospect

(1) Market prospect of medical devices

The medical device industry belongs to the field closely related to human life and health. Its market demand has strong rigidity and is not easily affected by significant economic cycle fluctuations. The stability of the industry is relatively high. With the global socio-economic development and changes in population structure, including aging issues, rising prevalence of chronic diseases, increased emphasis on health among the residents, and the improvement of economic level and consumption ability in developing countries, etc., the global medical device market has been driven to expand continuously. In 2023, the market size reached US$ 616 billion, with a year-on-year growth of 7.11%.

Table 2 Global Market Size and Growth Rate of Medical Devices from 2019 to 2023

Based on this stable growth rate, if the market environment does not undergo significant changes and continues to maintain the same growth rate, it is expected that the global medical device market size will have broken through US$ 700 billion by 2029.

Compared with the global medical device market, the Chinese medical device market is growing more rapidly. Driven by factors such as the improvement of residents’ consumption structure and national policy support, etc., the medical device industry in China has entered a stage of rapid development. Seeing from the demand side, as the world’s largest developing country, the aging population in China continues to increase, and the potential demand for medical treatment and health continues to rise; Meanwhile, with the rapid development of the market economy, the reform of the medical system continues to deepen, the coverage of medical insurance policies is gradually improving, and the ability and willingness of medical consumption among Chinese citizens are constantly increasing. However, on the policy side, multiple favorable policies of the state have opened up a green channel for the development of medical devices, encouraging product upgrades through technological innovation, promoting the rise of domestic brands, and achieving import substitution.

In 2023, the market size of medical device industry in China reached 1.25 trillion yuan, with a year-on-year growth of 17%. Compared with the global medical device market, the growth rate of medical device market in China was 2.4 times that of the global medical device industry, and the domestic medical device market had a broad development space.

Table 3 Market Size and Growth Rate of Medical Device Industry in China from 2019 to 2023

(2) Aluminum medical devices

In the field of medical devices, aluminum profiles are gradually emerging as the new favorite of medical device manufacturers. Aluminum profiles are favored by the medical industry for their excellent performance and diverse shapes, and are widely used in the manufacturing of medical beds, surgical tables, medical trolleys, medical counters, medical chairs, surgical equipment, bedside auxiliary tools, and rehabilitation equipment.

In terms of aluminum medical beds: Currently, in terms of overall consumption market of medical beds in China, domestic medical beds are mainly in the mid-to-low end, accounting for about 75% of the entire industry market. The high-end product market is dominated by both domestic and imported products, accounting for about 25% of the entire medical bed market. Some high-end products rely on imports. With the gradual improvement of medical bed technology in China, the domestic market capacity continues to expand, and the market prospect is very promising.

In terms of aluminum surgical tables: Currently, the main surgical tables in the market are electric surgical tables and hydraulic surgical tables. If classified by purpose, there are multiple classifications such as multi-functional surgical tables, gynecological surgical tables, and orthopedic surgical tables, etc. The surgical tables produced in this project are mainly comprehensive aluminum surgical tables.

In terms of aluminum medical trolleys: Medical trolleys refer to the medical equipment for ward protection and transportation, which can greatly reduce the operational burden of the caregivers. In terms of product classification, there are luxury, medium, and ordinary medical trolleys. From the material of the products, medical trolleys are available in ABS, stainless steel, spraying plastics, as well as stainless steel table top and plastic-sprayed surfaces. From the type of the products, there are dozens of types of medical trolleys, including crash trolleys, emergency trolleys, treatment trolleys, medical record trolleys, device trolleys, instrument trolleys, medication delivery trolleys, anesthesia trolleys, waste trolleys, transfusion trolleys, medication collection trolleys, downward collection trolleys, and upward delivery trolleys, etc. With the continuous development of medical and health industry in China and the continuous construction of medical units, the demand for medical trolleys is also increasing.

In terms of aluminum medical counters: Medical counters are generally classified according to the type of medical cabinet. However, people usually classify the medical cabinets according to other classification standards still. By type, there are mainly device cabinets, medicine cabinets with drawers, device cabinets with drawers, slice cabinets, wax block cabinets, dry slide cabinets, compact medicine cabinets, sterile cabinets, cloth-fumigating cabinets, poison and anesthetic cabinets, disinfection cabinets, injection cabinets, entry shoe cabinets, changing cabinets, Western medicine cabinets, and traditional Chinese medicine cabinets, etc. According to materials, there are mainly made of stainless steel, with stainless steel bottom sprayed plastics, and steel sprayed plastics, etc.

In terms of aluminum medical chairs: Medical chairs are widely used in various aspects of medical institutions, to facilitate the nursing, examination, and treatment work, etc. With the progress of technology, its production process and technological level continue to improve. Currently, multi-functional medical chairs are becoming increasingly popular in the market. In some small-scale medical work, medical chairs are gradually replacing some of the functions of medical beds, and have increasing market demands.

In terms of aluminum medical supporting facilities: With the development of medical treatment and health industry in China and the people’s continuous pursuit of healthy life, various medical supporting facilities used to serve the people’s health will be developed and produced one after another, with enormous market potential.

With the arrival of an aging population, the issue of elderly care is becoming increasingly prominent, and the development of rehabilitation and elderly care industries are being accelerated in various urban areas. Under the premise of promoting the strategy for common development of the health industry in Jilin Province, Liaoyuan City vigorously promotes the rehabilitation and elderly care industry. The explosive growth of the elderly population was mentioned in both the 14^th Five-year Plan and the government reports. It is expected to have broken through 300 million by 2025. Despite of the rapid digital growth, the industry is not yet ready to undertake it. The increasing number of elderly people and their worrying physical condition have led to an increase in demand for medical treatment and care. Therefore, with the increasing market demands and the continuous introduction of national and local government policies, as well as the rapid development of the national economy and the continuous extension of the average life expectancy of the population, medical devices, as an important tool to improve the quality of life of the disabled and elderly people, will receive key attention from the market.

To sum up, with the development of medical and health industry in China and the continuous improvement of scientific and technological level, the products produced by this project meet the current market demand and have a broad market prospect.

1.1.3 Technical analysis

The project adopts modern production technology and automated production lines, with mature production processes and technologies, and has the conditions for large-scale production.

1.1.4 Advantageous conditions of project construction

(1) Policy conditions

The Outline of the “Healthy China 2030 Plan” proposed that we should promote the extension of services from pharmaceutical and medical device circulation enterprises to the upstream and downstream of the supply chain, and form a new modern circulation system. We should improve the national drug standard system, implement the plan to improve medical device standards, and actively promote the internationalization process of traditional Chinese medicine (material) standards. We should vigorously develop new varieties of biological and chemical drugs, high-quality traditional Chinese medicine, high-performance medical devices, new auxiliary materials and packaging materials, and pharmaceutical equipment, promote the industrialization of major drugs, accelerate the transformation and upgrading of medical devices, and enhance the international competitiveness of medical diagnosis and treatment equipment and medical materials with independent intellectual property rights. We should accelerate the development of the rehabilitation aids industry and enhance the independent innovation capabilities. We should establish a sound quality standard system, enhance quality control technology, implement green and intelligent transformation and upgrading, and by 2030, achieve full alignment of the quality standards of drugs and medical devices with international standards.

In December 2021, the Jilin Provincial Leading Group for the Pharmaceutical and Health Industry issued the 14^th Five-year Plan for the Development of the Medical Device Industry in Jilin Province, proposing that: by the end of 2025, the output value of the medical device industry in Jilin Province should have reached 20 billion yuan, with an average annual growth rate of 32%; The innovation capability should have been significantly improved, with breakthroughs in more than 10 key technologies and core components, formation of more than 50 core invention patents, the addition of more than 200 registration certificates for Class III medical devices, and the addition of more than 1,000 registration certificates for Class II medical devices; The industrial agglomeration effect should have been significant, with completion of 1 medical device agglomeration zone at million-level, one medical device demonstration park at 5 billion level, and multiple characteristic parks; The industrial chain should have become more complete, with preliminary formation of a development model for the entire medical device industrial chain, including raw materials, research and development, production, circulation, and use; The technical support capability should have been significantly improved, and the medical device review capability, inspection and testing capability, clinical trial capability, and third-party technical service capability should have been significantly improved.

In February 2023, the General Office of Jilin Provincial People’s Government issued the Implementation Plan for Building a New Track in Biomedical and High-end Medical Device Industry of Jilin Province, proposing that: by 2025, the bio-pharmaceutical and high-end medical device industries in Jilin Province should have achieved a total output value of 50 billion yuan. There should have developed 50 new products, supported 50 major industrial projects, cultivated 50 key enterprises, and created 15 characteristic parks. There should have been continuous optimization of the industrial development environment, steady improvement of the innovation capability, improvement of both the quantity and quality of business entities, and significant improvement of core competitiveness. By 2030, Jilin Province should strive to have achieved a total output value of 100 billion yuan for the bio-pharmaceutical and high-end medical device industries. The innovation capability of the bio-pharmaceutical industry should have entered the forefront of the country, and the medical device industry should have achieved high-speed and high-quality development, forming a new track with leading development, disruptive innovation, and explosive growth.

In 2020, the Office of the Liaoyuan Municipal People’s Government issued the Implementation Measures for Flexible Transfer of Industrial Land in Liaoyuan City (For Trial Implementation), proposing that: We should supply industrial land through flexible lease term, first lease and then transfer, a combination of lease and transfer, and long-term lease through bidding, auction, and listing in accordance with the law; The flexible transfer term for industrial land should be generally 10, 20, 30, and 40 years. The enterprises should be allowed to voluntarily choose the land use right transfer term during this term. The Implementation Measures have improved the land supply system in Liaoyuan City while reducing the cost of industrial land.

(2) Resource advantages

In recent years, Liaoyuan City has continuously optimized and adjusted its energy structure, fully launched the construction of a clean energy heating demonstration city in North China, and carried out 47 clean heating renovation projects such as “coal to gas” and “coal to electricity”, etc., which are expected to reduce coal consumption equivalent to 510,000 tons of standard coal. In addition, Liaoyuan City has abundant resources such as wind energy, solar energy, biomass energy, etc., providing energy security for construction of the project.

(3) Industrial advantages

In recent years, Liaoyuan High-tech Zone has made accurate planning and positioning, and formed a functional layout of “dual-core drive, and one zone with four parks”. The “4+1 industry” is expanding in scale and cluster, with 2,111 settled enterprises. The high-precision aluminum profile extrusion technology is world leading. Led by Qixing Aluminum Industry, Jusheng Light Alloy, and Liyuan Precision Manufacturing, a high-precision aluminum processing base has been built in North China. The high-speed train body profiles account for nearly 60% of the domestic market share, and the lightweight products have entered the high-end market. We have become an important strategic partner with Top 500 enterprises worldwide such as CRRC, Siemens, Alstom, and Bombardier, etc.; The industrial advantages of the medicine and health are obvious. There are 176 drug approval numbers, with a pharmaceutical fine chemical park covering an area of 2.62 square kilometers under construction. Under the leadership of several key enterprises such as Boldere, Broad Well, Baikang Pharmaceutical, and Sepharma, etc., the research and development system for anti-tumor, antiviral, and health care products has become increasingly mature, and it has become the largest chemical raw material production base in Jilin Province; The scale of the supporting industry for new energy vehicles is rapidly expanding.

(4) Talent advantages

Liaoyuan City has abundant human resources, and there are vocational colleges in the urban area that can make directed training of talents according to the demands of the enterprises. Liaoyuan City has a good industrial development foundation and is only 115.13 kilometers away from the nationally renowned “University City” and “Motor City”, i.e., Changchun, which can meet the demands of the enterprises for various kinds of talents.

Meanwhile, Liaoyuan City encourages the enterprises to jointly build expert studios, research and development centers, and internship and employment bases for college students with universities and institutions that have signed cooperation agreements. It also organizes directed recruitment of professional talents in public institutions and universities, establishes “science and technology innovation teams, and scientific and technological expert workstations (rooms)”, and flexibly introduces talents from outside the country.

(5) Location and transportation advantages

Liaoyuan has obvious location advantages: It is located 140 kilometers away from Changchun Longjia International Airport in the north and 240 kilometers away from Shenyang Taoxian International Airport in the south, and is located on the important axis of Changchun one-hour economic circle and Shenyang-Tiexi urban agglomeration. Within a radius of 200 kilometers around, there are 2 provincial capitals and 8 prefecture level cities, radiating a population of nearly 40 million. A transportation network of “three rings, four verticals, and six horizontals” has been built in the urban area. Regional highways and railway transportation are well-developed, with National Highway 303 and Siping-Meihekou Railway running through the entire area. The Liaoyuan-Xifeng and Liaoyuan-Changchun Railways, as well as the Changchun-Liaoyuan, Yingchengzi-Meihekou, Jilin-Caoshi, and Liaoyuan-Xifeng Expressways and the to-be-built Liaoyuan Civil Airport, form a comprehensive transportation system for entering the Northeast hinterland and entering the customs.

1.2 Contents and scale of project construction

1.2.1 Product scale

After the project is completed, it will produce 150,000 sets/year of aluminum medical devices.

1.2.2 Contents of project construction

The project covers an area of 200 million square meters and includes the construction of office buildings, standardized factory buildings, material workshops, technology research and development centers, as well as the purchase of related production equipment.

1.3 Total investment of the project and capital raising

1.3.1Total investment of the project

The total investment of the project is 150 million yuan, including the construction investment of 120 million yuan and current funds of 30 million yuan.

1.3.2 Capital raising

Raised by the enterprise itself

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 70 million yuan, its profit will be 23 million yuan, its investment payback period will be 8.5 years (after the tax, including the construction period of 2 years), and its investment profit rate will be 15.3%.

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

1.4.2 Social evaluation

After the completion of the project, it will promote upgrading of the local medical device industry, drive the development of upstream and downstream industries, and drive local employment, which will play a good role in promoting the local economic and social development.

1.5 Cooperative way

Joint venture or cooperation, other ways can be discussed in person.

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 Liaoyuan High-tech Industrial Development Zone.

1.8 Progress of the project

Attracting foreign investment.

2. Introduction to the Partner

2.1Basic information

Name: Jilin Liaoyuan High-tech Industrial Development Zone Management Committee

Address: No. 1633 Caifu Road, Liaoyuan City

2.2 Overview

Liaoyuan High-tech Industrial Development Zone was established in 2001. In 2019, it was approved by Jilin Provincial People’s Government to be established as a provincial-level high-tech industrial development zone, with a planned area of 16.22 square kilometers and a total population of 29,000. Located on the axis of the two major economic zones of Changchun and Shenyang, it is 100 kilometers away from Changchun in the north, 200 kilometers away from Shenyang in the south, and 500 kilometers away from Dalian Port. The National Highway 303 and the Siping-Meihekou, Liaoyuan-Xifeng and Liaoyuan-Changchun Railways run through the entire area, forming a comprehensive transportation system that extends in all directions with the Changchun-Liaoyuan, Yitong-Kaiyuan, Yingchengzi-Meihekou, and Jilin-Caoshi Expressways. As the core of Jilin Province’s southward opening gateway, it plays an important role in the construction of the central innovation and transformation core area of the province.

As the core of science and technology innovation, the engine of industrial upgrading, the window for attracting investment, and the leader of economic development, Liaoyuan High-tech Zone actively cultivates new driving forces for development, takes the path of characteristic development and differentiated development, promotes innovation and entrepreneurship, improves the supply quality, and opens up a new model of industrial cluster and chain industry coordinated development. It has been listed as a pilot for regional brand construction of national industrial clusters, a provincial-level demonstration base for mass entrepreneurship and innovation, a national demonstration base for entrepreneurship and innovation of small and micro enterprises, and a demonstration base for new industrialized industries.

2.3 Contact method

Postal code: 136299

Contact person: Song Yang

Tel: +86-437-3292088

Fax: +86-437-3292088

E-mail: jllyjk@163.com

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

Contact unit: Liaoyuan Municipal Bureau of Commerce

Contact person: Ai Jing

Tel: +86-18643787709

E-mail: lyjhjxmc@163.com