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Town of Pecan in Changbai Mountain China Construcof Tonghua Citytion Project
2016/11/29     Source:

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

The town of pecan in northern China covers an area of 1000 mu in total. Build a big market for pecan (special local product) in northern China; build a characteristic industrial park of Changbai Mountain, and the park includes 10 high-tech pharmaceutical enterprises (there are organic anti-cancer drugs such as quinone conde, and nuclear quinone element, drugs to treat coronary heart disease, such as xinkang etc., pesticides, and antibacterial drug bacterial etc.); build 100 processing enterprises (all kinds of food factory, health care products factory, and handicraft factory).

1.1.2 Essentiality of Project Construction

Huinan County has a long history, the birthplace of “culture of Huifa River basin”. There have been history to pick and initially process pecan since ancient times. At the beginning of Qing dynasty, pecan tribute produced in Huifa River basin were respectfully presented to the ancestor, Kangxi, which was called as “long live son of Huifa”. Country Party Committee of Huinai put forward the call of “try to achieve construction of the first door of Changbai Mountain to promote in depth” in the 4th session of the fourteenth plenary meeting, relying on pecan of Changbai Mountain to drive series development of industrial concentration district in Changbai Mountain, build the industry of “the town of pecan in northern China pecan”, promote the development of culture industry in Changbai Mountain, and bring rare policy opportunities and historical development opportunities for the project.

1.1.3 Wide prospect of pecan products in the market

Walnut is the king of the four major nuts, which has a long cultivation history in China, and distributed throughout the country. Because of its rich nutritional value, medicinal value, agricultural value, crafts and industrial value, it’s very popular in the market, and the price has risen in successive years. The reason why the prices of walnuts are rising year after year is related to five major factors: first, demand is expanded in domestic consumption market. With the development of economy, more and more consumers recognize the edible and medicinal value of walnut, and the consumption proportion goes up. Secondly, it’s the rise of walnut processing industry, which requires a lot of walnut kernel as raw material. Walnut meat can be made into food, can be processed into fuel, also can be added to other foods. The extensive use makes the walnut consumption and demand dramatically increased. Thirdly, the walnut are widely applied in medicine, nutrition and health products. As economic income level improved, and awareness to walnut nutrition and health care, and medical value deepened, there will be more and more demand for walnut products in the future. Fourthly, research and utilization are constantly made on the by-product of walnut, develop the comprehensive utilization of walnut resources, deepen processing of walnut resource, and improve the utilization and use value. Fifthly, the  demand is increasing in the international market. Because the walnut has rich nutrition and good flavor, it’s very popular in the international market. Main exporter of walnuts in our country are Britain, Germany, Switzerland, Syria, Singapore, Kuwait and other countries. The export volume is tend to rise year by year. However, the development of walnut industry is at initial stage in China, especially in northeast, and there are many areas in blank. It’s a great chance for us to seize business opportunity and occupy the seize market. Once the market opens, the prospect of walnut industry is very wide. Combined with demand in the international and domestic market, it can be concluded that potential to develop walnut production is large, market capacity is large, and the product will be in short supply.

At present in the deep processing of pecan, the main processing products are pecan oil, pecan nutrition powder, pecan milk beverage, and pecan leisure pot food etc. Among them, the pecan oil is listed as one of the three largest vegetable oil which has higher demand in the domestic and international market in recent years, and high nutritional value. It can be used as senior lubricating oil and raw oil in the industry; it’s the ideal senior edible cooking oil in people’s daily life after refining and purifying. Therefore, if pecan meat is processed into pecan oil and series products of pecan oil, it will surely have broad market prospects and considerable economic benefits. At present, the retail price of refined pecan oil is 20 to 30 Yuan / 250 ml in the market; in addition, demand that people have on solid beverage is considerable in the domestic market. Pecan powder product has such features as rich nutrition, diversified variety, easy to eat and carry, good and inexpensive etc. Its prospects will be impressive. The sales price of pecan nutrition powder is about 10 to 15 Yuan/500 g on the market at current; pecan milk is called as the new generation of green nutritional beverage, which is still one of the mainstreams for development in beverage industry at home and abroad. The sales price of “pecan milk” beverage is 2.40 to 2.80 Yuan/bottle or 3.00 to 3.60 Yuan/can on the market currently, and the price is 6.00 to 12.00 Yuan in high-grade restaurant. Pecans ranked the top of the four major nuts with its rich nutrition and unique flavor, and has always been popular with the people around the world. Pecans are delicious, easy to digest and absorb, and edible directly. The whole fruit of the pecan and pecan meat isolated from pecan shell can be used as finished products to put into the market or export, and it has significant economic benefits.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy conditions

County Party Committee of Huinan put forward a development strategy to build up “the first door in Changbai Mountain” in the 3rd session of the fourteenth plenary meeting. It rapidly raised the climax to develop characteristic industry of Changbai Mountain throughout the county. Special Product Development and Service Center of Huinan County confirmed the pecan of Changbai Mountain as the pillar industry of Huinan County to put focus on, and strive to acquire the reputation of “the town of pecan in Changbai Mountain, China” named by the Gardening and Specialty Bureau of Jilin Province. Pecan production and processing enterprises who settled down in Huinan could enjoy preferential policies of local investment promotion and capital introduction.

(2) Resource conditions

Pecan (scientific name is walnut) abound in Changbai Mountain has rich storage and broad development prospect. The total output of wild pecan produced in Changbai Mountain regions is more than 200000 tons every year, accounting for 21.8% of the total national output. The pecan is taken as leading industry to develop in Huinan, which will drive the development of medicine, food, health care products, handicraft and other industry concentration district. Walnut element, walnut ketone, walnut quinone, kaempferol, quercetin and other natural drugs can be extracted from the green peel of pecan and the bark, which could effectively treat cancer and coronary heart disease (CHD), and generate organic pesticide and bactericide etc. Pecan meat can extract unsaturated fatty acids omega 3, and produce children Congcong mother liquor and brain health care products for elderly. Various food can be made with pecan meat, such as walnut cakes, walnut powder, and walnut milk (“seven pecans”beverage) etc. Pecans can also be used as hand pieces, and it’s better than the walnut in the south whatever from the material or the development prospects. All kinds of beautiful arts and crafts can be made by walnut skin sliced to enrich culture industry in Changbai Mountain.

1.2 Content and Scale of Project Construction

1.2.1 Construction Content

The construction project of “the town of pecan in the northern China" t consists of three parts, which are to build a big market for pecan (special local product) in northern China; build a characteristic industrial park of Changbai Mountain, and build 100 processing enterprises (all kinds of food factory, health care products factory, and handicraft factory). It shall mainly complete the construction of infrastructure and standard factory building, logistics base and so on.

1.2.2 Construction Scale

The town of pecan in the northern China covers an area of 1000 mu in total. Large market of pecan in the northern China covers an area of 200 mu with construction area of 100000 square meters; 10 pharmaceutical enterprises cover an area of 200 mu with construction area of 100000 square meters; 100 processing enterprises cover an area of 600 mu with construction area of 300000 square meters.

1.3 Total Investment of the Project and Capital Raising

1.3.1 Total Investment of the Project

 Table 1:   Summary Table of Total Investment of the Project   Unit: RMB10,000

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

67507

61.37

 

2

Interest incurred in construction period

2508

2.28

 

3

Working capital

39985

36.35

 

 

Total investment of the project (1+2+3)

110000

100.00

 

Note: "RMB10,000" in the Table shall be RMB.

1.3.2 Capital Raising

Self-raised by the enterprise

1.4 Economic Benefit and Social Benefit Prediction

1.4.1 Economic Benefit Prediction

Taking an example of comprehensive development of industrial real estate, after the completion of the project, it shall predict the recycling investment through leasing, selling workshop shops, providing property service and other methods.

Table 2:   List of Major Indexes for Forecast of Economic Benefits

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

35000

Normal year

2

Total profit

RMB10,000/a

15000

Normal year

3

FIRR of all investments

%

12.8

After income tax

4

FNPV (Ic=10%)

RMB10,000

34602

After income tax

5

Period for recovery of all investments (after tax)

a

7.3

Exclude construction period

6

Rate of return on investment

%

12

Before normal annual tax

 

Note: "RMB10,000" in the Table shall be RMB.

 

1.4.2 Social Benefit Evaluation

After the completion of the project, it’s beneficial to give full play to the advantages of local resources, promote the development of local industry and economy. As the largest trading market of pecan (special local product) in the northeast, “the large market of pecan (special local product) in the northern China” has annual specialty trading volume of more than 1 billion Yuan, and the net income expected is over 50 million Yuan; each medicine high-tech enterprise has net income of more than 20 million Yuan; each processing enterprise has net income of more than 3 million Yuan. It brings taxes to the local government, and promotes the development of local employment.

1.5 Cooperative Ways of the Project

Sole proprietorship, joint venture or other methods can be discussed in person.

1.6 What to be Invested by Foreign Party

Capital, equipment

1.7 Construction Site of the Project

Chaoyang Town, Huinan County.

1.8 The On-going Condition of Project

Feasible research report is being formulated.

2 Introduction to Partner

2.1 Basic Conditions

Name of unit: Economic and Technical Cooperation Bureau of Huinan County, Jilin Province

Legal address: Development Zone of Huinan County, Jilin Province

Legal Representative: Xu Xiaowei

2.2 Overview

Bureau of economic and technical cooperation of Huinan County, Jilin Province, set up on January 13, 2011, has been the comprehensive department of the county's investment work, bearing the dual functions of external communication and internal coordination. Its main functions are: drawing up the county's investment policy and organizing the implementation of it; formulating the county's investment plan and organizing the development zones, towns and departments to implement the plan; carrying out project negotiation work actively that provide policy guidance for the introduction of the projects and services for the whole process of the settling of the project in Huinan. At the same time, the bureau should organize and coordinate the relevant departments to audit project funds that provide scientific and accurate basis for the implementation of preferential policies and incentives.

2.3 Contact Method

Contact Person of Huinan County Economic and Technical Cooperation Bureau:

Li Wanqiang  

Tel: 0435-8239508

Fax: 0435-8261319                 

E-mail: hnjh2071@163.com

 

Contact Person of Project City (Prefecture):

Contact Unit: Tonghua Economic and Technical Cooperation Bureau

Contact Person: Sun Xiaodi

Tel: 0435-3650957 13843515611 

E-mail:th3650957@126.com

 

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