1. Introduction to the Project

1.1 Project background

1.1.1 Introduction to the Project

In recent years, with the increasing number of elderly people, empty-nest elderly people, and disabled elderly people in China, there is an urgent need to provide comprehensive, continuous, and suitable medical services for the elderly. The new elder-care service model of “integrated elder-care services with medical care” that combines medical rehabilitation and health-care with elder-care has effectively solved the problems of elder-care and medical treatment. It has not only provided the elderly with “something to support them”, but also enabled them to “have access to medical care”.

The project is located in Changchun Kuancheng Economic Development Zone, aiming to build a comprehensive elderly medical care and elder-care service facility, to focus on providing comprehensive medical, rehabilitation, nursing, and elder-care support for the elderly population, and develop customized nursing plans based on their individual demands. By adopting advanced intelligent management system, it guarantees the welfare of the elderly while providing convenient channels for their family members to visit and communicate with them.

1.1.2 Market prospect

（1）Development status of the elderly medical care and elder-care market

The medical care and elder-care industry aims to provide comprehensive services for the elderly, including medical treatment, rehabilitation, nursing, life care, and spiritual comfort, etc. This industry is not only an important component of the elder-care industry, but also a key link in guaranteeing the quality of life for the elderly.

The medical care and elder-care industry offers a wide range of products, including but not limited to health-care drugs, medical devices, rehabilitation devices, daily necessities, and home services, etc. These products are characterized by strong pertinence and practicability, aiming to meet the diverse health needs of the elderly.

With the progress of technology, new technologies such as intelligent health monitoring devices, remote medical services, and health management software, etc. are increasingly being applied in the medical care and elder-care industry, which has improved the intelligence level of the services.

From the perspective of classification, the medical care and elder-care industry can be divided into multiple sub-sectors, including health-care, daily necessities, home services, real estates (providing apartments for the elderly, etc.), insurance (providing endowment insurance, etc.), and finance (providing savings, wealth management, and other financial services), etc.

The medical care and elder-care industry chain integrates the operation management from upstream medical equipment, food and drug, elder-care finance, facility equipment, and information solutions, to midstream elderly life care, medical care, and rehabilitation health services, and ultimately serves the downstream elderly people, their family members, and social groups concerned with the health and welfare of the elderly.

As of the end of 2022, the size of elderly health service market in China has exceeded 3 trillion yuan, showing a continuous growth trend. However, by the end of 2023, the elderly population aged 60 and above in China has reached 297 million, accounting for 21.1% of the total population. Meanwhile, the market size of integrated elder-care services with medical care in China has reached 1.5222 trillion yuan by 2023, with a compound growth of 20.65% compared to that in 2018. In addition, by 2023, the size of comprehensive health market in China has grown to 7.7127 trillion yuan, of which the size of health and elder-care market has reached 3.1357 trillion yuan, accounting for over 40%.

The increase in the number and proportion of elderly population, and the improvement of health awareness among the elderly, are the main factors driving the market growth. In addition, the continuous promotion of government policies and the application of new technologies have provided strong support for market growth.

（2）Prospect analysis of the elderly medical care and elder-care industry

It is expected that by 2029, the market size of elderly health service industry in China will reach 3.5 trillion yuan, with an average annual growth rate of 15%. This prediction is based on factors such as the deepened degree of aging, the improved health awareness among the elderly, and the continuous promotion by policies, etc.

In the field of elder-care services, the application of cutting-edge technologies such as artificial intelligence and big data will become increasingly widespread. For example, smart wearable devices can monitor the health status of the elderly in real time, while remote medical services can provide more convenient medical consultation and treatment services for the elderly.

With the increasing requirement for quality of life among the elderly, their demands for elder-care services also become more diverse and personalized. This change will encourage the elder-care service industry to continue to make innovation and expansion, and to be committed to providing more diversified services with higher standards.

With the continuous growth of the elder-care service industry, it has become an inevitable trend to integrate the industry chain. Some companies with strong strength and market influence will integrate upstream and downstream resources of the industrial chain through mergers and acquisitions, cooperation, and other means, and build a complete industrial chain system.

Chinese government will continue to implement a series of supportive policies to promote the sustained and healthy development of the elder-care service industry. These policies will involve multiple aspects such as tax incentives, housing support, and funding subsidies, providing strong policy support for the development of the industry.

To sum up, the medical care and elder-care industry has a broad development prospect and an enormous market potential.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In the National Health Commission’s Opinions on Accelerating the Development of Rehabilitation Medical Work, 24 development opinions were put proposed, including increasing medical institutions and supply of beds; Encouraging the public to run medical institutions to participate in the construction of chain rehabilitation medical centers; Encouraging primary and secondary hospitals to transform into rehabilitation medical care; Promoting the joint service of public and private hospitals, as well as tertiary hospitals and grassroots by establishing medical treatment alliance; Encouraging the grassroots communities to carry out home-based rehabilitation projects; taking measures for vigorously developing rehabilitation medical informatization and related smart industries.

The Outline of the Healthy China 2030 Plan emphasized that, we should place the people’s health in strategic position of priority development, “integrate health in all policies”, tilt social resources towards the health field, and shift from “focus on medical care” to “focus on health”.

(2) Location advantages

Kuancheng District has obvious location advantages, with the Changchun-Harbin, Changchun-Dalian, Changchun-Tumen, and Changchun-Baicheng Railways, and Changchun-Jilin, Harbin-Dalian, Changchun-Hunchun, and Changchun-Baicheng-Ulanhot High-speed Railways, etc., and national highways 102 and 302, as well as the Beijing-Harbin and Changchun-Songyuan Expressways passing through the district; Changchun Rapid Rail Transit Line 1, Line 3, Line 4, and Line 8 departing within the district; Changchun Railway Station, Changchun Highway Passenger Transport Center Station, and Changchun Kaixuan Road Passenger Transport Center located within the district; main streets in the urban area such as the North Renmin Street, North Yatai Street, Taipei Street, Changxin Street, Xinfa Road, Kaixuan Road, Qingnian Road, Western Expressway, Northern Expressway, North Ring Road, and North Fourth Ring Road, etc. all passing through the Kuancheng District.

(3) Talent advantages

Changchun has 15 State Key Laboratories, 83 independent research institutions in Changchun, including the Changchun Institute of Optics, Fine Mechanics and Physics, Chinese Academy of Sciences; the Changchun Institute of Applied Chemistry, Chinese Academy of Sciences; and the Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, etc., as well as 49 colleges and universities, including Jilin University and Northeast Normal University, etc. As the main urban area of Changchun City, Kuancheng District has 51 colleges and universities and primary and middle schools such as Jilin Engineering Normal University, Changchun College of Electronic Technology, City College, and the century-old Tianjin Road Primary School, etc., which can provide senior management and technical personnel for the implementation of the project, as well as high-quality educational resources for the employees’ children.

1.2 Contents and scale of project construction

It is estimated to cover an area of about 30,000 square meters. The main construction includes office buildings, elder-care centers, medical assistance stations, senior activity rooms, senior rehabilitation rooms, and other ancillary facilities.

1.3 Total investment of the project and capital raising

The total investment of the project is 220 million yuan, including the construction investment of 176 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 252.87 million yuan, its profit will be 75.86 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 construction of the project guarantees that the elderly can also experience spiritual pleasure and satisfaction while enjoying medical services. It achieves overall improvement of social comprehensive benefits and value, and is conducive to the organic integration and coordinated development between the elder-care and medical industries. Meanwhile, the implementation of the project can also drive the local employment and is conducive to the stable economic and social development. Therefore, the project has won a good reputation and high praise in the society.

1.5 Cooperative way

Joint venture, cooperation

1.6 What to be invested by the foreign party

Funds, equipment, and technology

1.7 Construction site of the project

Changchun Kuancheng Economic Development Zone

1.8 Progress of the project

The project cooperation plan has been prepared

2. Introduction to the Partner

2.1 Basic information

Name: Changchun Kuancheng Economic Development Zone Management Committee

Address: No. 7388 Kaixuan Road, North of Kuancheng District, Changchun City, Jilin Province

2.2 Overview

Changchun Kuancheng Economic Development Zone (formerly known as Changchun Changjiang Road Economic Development Zone) was established in 1998 with the approval of the Changchun Municipal Party Committee and Government. It was promoted to a provincial-level development zone in 2001, covering an area of 115.16 square kilometers. The zone has a population of about 220,000, and over 10,000 market entities of various types. And its total economic output accounts for more than 60% of that in Kuancheng District. After more than 20 years of development, its comprehensive development level has risen to the forefront of provincial-level development zones, gradually developing from a single commercial economic development zone to a comprehensive development zone dominated by rail passenger cars, industrial manufacturing, modern logistics, and commercial service industries, and with co-existence of multiple industries.

Changchun Kuancheng Economic Development Zone is located in the northern part of Changchun City. It faces the Beihu Science and Technology Development Zone of Changchun New Area across the river in the east, adjacent to the City Center in the south, adjacent to the Lvyuan District in the west, and connected to Nongan County, Changchun in the north. It is about 13 kilometers away from the city center and about 30 kilometers away from Changchun Longjia International Airport. It is located at the core node of the Harbin-Daqing first-level axis given priority development by the national plan for revitalization of Northeast China, and is a key area for Kuancheng District to build a modern core area in the north. It has completed the “three-horizontal and four-vertical” main road network system, of which the Beijing-Harbin Railway, Changchun-Baicheng Railway, Beijing-Harbin Expressway, Hunchun–UlanHot Expressway, Ring Expressway, National Highway 102, and National Highway 302 converge here. There is complete infrastructure in the zone, including complete water supply, electricity supply, gas supply, heating, communication and other functional supporting facilities, as well as public service functions such as schools, hospitals, and parks, etc. There are superior ecological resources such as Yitong River, Jingshui River, and Chuanhu Lake, etc.

The development blueprint in the “14^th Five-year Plan” for Changchun Kuancheng Economic Development Zone has planned the spatial layout of “one city, two belts, four cores, and five districts”, adopting the development model of “one district with multiple parks”. Centering on the goal of building a demonstration zone for integrated development of industry and city in northern Changchun, it will focus on building a world-class rail equipment manufacturing and repair center and an ecological sightseeing and leisure center in the suburbs of the city. It has determined the development pattern with rail transit as the leading industry, supplemented by pan-transportation industry and professional logistics, and with specialty food processing, resource recycling, new materials, clean energy, biomedicine, urban agriculture, and automobile after-market services as characteristic industries.

In addition to provincial and municipal preferential policies, the projects located in Changchun Kuancheng Economic Development Zone can also enjoy policy support from Kuancheng District. For industrial projects, investment subsidies will be provided based on the industry category and paid-in investment situation; After the project reaches its production capacity, financial support will be provided based on the output value and tax situation; For major projects, special policies will be given based on “one discussion for one case”.

2.3 Contact method:

2.3.1 Contact method of cooperator of the project

Contact person: An Peiwen

Tel: +86-431-89991958+86-13578763399

E-mail: 184479431@qq.com

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

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com