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Luotong Mountain Health Wellness Industry Project of Tonghua City
2016/11/29     Source:

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Planning

Luotong Mountain is located in the northeast of Liuhe County, Tonghua City, Jilin Province. It borders two important tourist destinations - Changbai Mountain International Biosphere Reserve Protection Zone and Ji’an Koguryo World Cultural Heritage. It is about 200km to the provincial capital– Changchun in the north and 98km Tonghua City in the south, and 35km from Liuhe County. The total area is 6406km2. Luotong Mountain has a long history. There are many valuable historical and cultural resources left, including a large number of cultural relics and many beautiful and touching stories and legends about historical sites handed down, as well as diversified local traditional cultures.

Liuhe County is appraised as the “National Vitis Amurensis Base”, “National Grape Production Standardization Demonstration Zone”, “National Grape Processing Technology and R&D Sub-centers”, “China High Quality Vitis Amurensis Wine County” and “Provincial Featured Vitis Amurensis Wine Park”. Vinous flavor is overflowing. Luotong Mountain is located in the northeast of Liuhe County, Tonghua City, Jilin Province. It borders two important tourist destinations - Changbai Mountain International Biosphere Reserve Protection Zone and Ji’an Koguryo World Cultural Heritage. The altitude of Luotong Mountain is about 1265 meters. It has lush vegetations and the content of negative oxygen ions in air is high. Luotong Mountain has the typical northern karst land feature, perhaps the most typical karst land feature in the three northeast provinces of China.

The “12th Five-Year Tourism Plan” for Jilin Province shall focus on the development of natural sightseeing, leisure and entertainment and health caring and historic sites in “Tong, Ji and Bai” regions. In the “12th Five-Year Tourism Plan” for Tonghua City, Luotong Mountain Cultural Heritages are determined as high-quality tourism products. Good policy conditions have laid a foundation for its future development. “Tourism Development Plan” for Tonghua City and Liuhe County also include the construction of roads and infrastructure in Luotong Mountain and the construction of scenery spots into the important construction projects.

1.1.2 Market Overview

According to the investigation of United Nations World Health Organization, 20% of people in society are patient, 75% are sub-health and only 5% are healthy. Health and longevity have attracted the widespread attention of society. The capitals which are put into the health care are increasing. Health care services have become the new emerging mainstream industry which has attached the attentions of government. Due to the health care popularity, green consumption has become a trend. Whatever is disease prevention or curing or sub-health conditioning, health care services are favored by the people of different ages, different levels and different places. The individual customized health diagnosis and conditioning regimen have become widely accepted modes of health care.

In a busy city, air that we breathe in contains car exhaust. We face computer radiation all day long and even the quality of foods cannot be guaranteed. The basic living necessities of some people cannot be guaranteed, not to mention health. Heavy works drive people into exhaustion. The health conditions of people are very serious. People who are exhausted occupy more than 80% of the total population. Many people have the fluke mind of “I’m still young”. They work day and night. They ignore their health and many potential diseases are on their way. With the publicity of health problems, more and more people are concerned about their health problems. A growing number of people are willing to spend lots of money to keep healthy. More and more people realize that a healthy body is all that matters. Therefore, health care services have become hot investment projects for investors. The health care market is like an exhaustible gold mine.

Speaking of health, many people think it is that the elderly shall be noticed. In fact, compared with the old, more and more young people are the enthusiastic followers for “health caring”. The young people are willing to put more money in health investment that the older people. And, they are more easily to try new things. The entire Health Wellness Industry is gradually oriented to youth health care from elderly health care.

Health industry is a new rising industry in recent years. It is one of the most vibrant industries across the world. The investigation to China’s consumer market by “Fortune” Magazine (USA) concludes that: Chinese health industry in the next five years will be expanded 10 times larger, and the annual market share of Health Wellness Industry in China values 1.5 trillion Yuan. Therefore, in the city dominant region as today, the development of the health industry is of importance for the sustainable development of city and the sustainable improvement of competitiveness.

Through the combination of unique Liuhe local culture and beautiful natural environment and by the reliance on the natural and cultural resources, medicines and red wine, a modern health service health center integrated with disease diagnosis, health knowledge publicity, participation and sharing and health care conditioning shall be built to provide services, e.g. traditional Chinese medicine (drug) regimen, diet and health, psychological health, sports and health, scientific health caring, leisure and health in order to facilitate the healthy development of Health Wellness Industry. The market prospects of Health Wellness Industry are promising.

1.1.3 Advantageous Conditions of Project Construction

(1) Policy advantages

According to the “State Council’s Opinions on the Promotion of the Development of Health Wellness Industry” (G.F.[2013] No. 40) and the “State Council’s Opinions to Guide the Acceleration of the Development of Living Service Industry and Promotion of the Upgrading of Consumption Structure” (G.B.F. [2015] No. 85), the government pays attention to the development of service industries. It provides the policy advantage for the development of Health Wellness Industry in Tonghua City.

(2) Location advantage

Liuhe County is located in the southeast of Jilin Province. It covers an area of 3348 km2. 15 towns and 219 administrative villages are under its jurisdiction. It has a total population of 380,000. It is a beautiful mountain county with “seven hills, half of water, two fields, half of road and manor”. Liuhe District has obvious regional advantages. Sanyuanpu airport is about opening. Tonghua-Meihe Highway passes through Liuhe County from the north to the south. Tonghua-Meihe Highway, Hegang-Dalian Highway and Huinan-Baishan Highway are jointed at Liuhe County. Liuhe County will become an air traffic origin, highway center point, and land and port junction point in the southeast of Jilin Province.

(3) Advantages of natural resources

The forest resources in Tongluo Mountain mainly include secondary broad leaved forest and economic wild plants in 97 families, 301 genera and 478 kinds. There are animal species in 16 families and 33 kinds, where, the unique plant - elm trees and the rare animal - giant salamander are most famous. Wild animals mainly include: wolf, roe deer, badgers, foxes, wild boar, juvenile chicken, squirrel, hazel grouse, duck and snake etc..

There are a lot of caves in Luotong Mountain. Karst cave is like underground palace. There are caves within caves and caves are connected with caves. They are deep and long with mysterious feature. Stalactites on cave wall are accumulated. They are of different shapes. Tourists visit here for adventure or hunting for novelty.  These experiences are memorable. According to the verification of experts, Luotong Mountain is of typical northern karst land feature. It is considered to be the most typical karst land of the three northeast provinces of China.

(4) Advantages of cultural resources

Historically, Luotong Mountain is located in the traffic lane used for the communication between Koguryo and other northern ethnics. It belongs to the same series of the world’s cultural heritages, e.g. Ji’an Koguryo Emperor’s Tomb, Tombs, Huanren Wunv Mountain Relics. Its construction scale and preservation conditions are rare in China. It is of great significance for military defense and political and cultural communication. Therefore, Koguryo culture that Luotong Mountain Relics represent has the common cultural features with these of 100 Koguryo cultural relics which are discovered in Ji’an and Huanren of Liaoning Province. It more represents the characteristics of military defense and interethnic communication. Its core resource is Luotong Mountain City.

Luotong Mountain is one of 18 cultural sites under special protection in Jilin Province. This city structure was build after the capital of Koguryo was moved to Ji’an and before Fushun - “New City in the North” was built, which was AD 3 to AD 335 when it was in Wei and Jin dynasties. After the fall of Koguryo, Liao and Jin dynasties also used it. It has been 1700 years of history till now.

(5) Resources of wine culture

Liuhe County was appraised as the “National Vitis Amurensis Base”, “National Grape Production Standardization Demonstration Zone”, “National Grape Processing Technology and R&D Sub-centers”, “China High Quality Vitis Amurensis Wine County” and “Provincial Featured Vitis Amurensis Wine Park”. “Liuhe Mountain Grape” has been under the protection of national geographical logo. “Liuhe Mountain Grape” and “Liuhe Mountain Wine” are granted with the national geographical logo.

Liuhe County has a long history of brewing vitis amurensis wine. As early as AD 668, Emperor Gaozong of Tang sent a senior general to Luotong Area to conquer the north. Senior General Luotong stopped here, so this mountain is called as Luotong Mountain. It was late autumn. General Luotong saw grape covering all over the mountain, so he asked his soldiers to pick up grapes and store them in giant urns. With temperature rising, fermentation started. Aromatic flavor was radiated. Soldiers got an idea to filter out the juice. It smelled good and tasted even better. General Luotong drunk it and overjoyed and named it as “rose apple wine”. There is a poem saying “with three glasses of rose apple wine, drunk in the ancient city and forget missing home”. When archaeologists discovered ancient ruins in Luotong Mountain in 1993, they unearthed the debris of pottery containers in a cave and found carbonized mountain grapes. Experts verified that this is the place where the army hided grape wine, which was the oldest Liuhe Mountain wine.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

The total floor area of newly constructed and renovated buildings is 50000m2 and the currently used existing building area is about 5000 m2.

1.2.2 Content of Project Construction

The project location has the favorable conditions to develop cultural and health care industries and meet market demands. Through the reliance on culture, the concentration of medical health care and the close connection to health care and leisure holiday market, it is planned to construct a multi-functional and local cultural featured “national cultural and health care demonstration base” integrated with health care knowledge publicity, participation and sharing and health care conditioning.

The project is planned to develop Luotong Mountain comprehensively and strive to build it into a national leveled featured health care center through the combination of good natural and cultural resources in Luotong Mountain and Liuhe County’s local featured vitis amurensis wine industry. Meanwhile, the project will use Liuhe’s featured basalt as the main decorative materials.

The project is planned to rebuild and upgrade the existing infrastructure of Luotong Mountain in Liuhe County. It is planned to construct a four-star hotel type wellness center, 1 self-productive vitis amurensis wine chateau, 10 townhouses, 5 independent villas, 1 integrated activity center, and a number of basic supporting facilities. The estimated total construction area is about 50,000 m2. There are 500 hotel apartments and 50 health care villas.

1.2.3 Construction duration

2016—2020

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

80000

80

 

2

Interest incurred in construction period

5000

5

 

3

Working capital

15000

15

 

 

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

100000

100.00

 

1.3.2 Financing

Table 2: List of Financing                     Unit: RMB10,000

 

 

 

No.

Classification and origin of capital

Limit of capital

Proportion to the total investment (%)

1

Capital fund of project

52000

52

1.1

Construction investment

45000

45

1.2

Working capital

2000

2

1.3

Interest incurred during construction

5000

5

2

Capital raising

48000

48

2.1

Construction investment

35000

35

2.2

Working capital

13000

13

3

Total investment of project

100000

100.00

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

Table 3: List of Major Indexes for Forecast of Economic Benefits

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

104750

Normal year

2

Total profit

RMB10,000/a

23750

Normal year

3

FIRR of all investments

%

19

After income tax

4

FNPV (Ic=10%)

RMB10,000

41045

After income tax

5

Period for recovery of all investments (after tax)

a

5.5

Including 2 years of construction period

6

Rate of return on investment

%

14

After income tax

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

1.4.2 Social Evaluation

When the project is completed and operated, there will be about one thousand local job opportunities provided for Liuhe County. Meanwhile, the development of Luotong Mountain Tourist Attraction Area helps to further improve and integrate the tourism industry in Tonghua District. Luotong Mountain Tourist Attraction Area, Ji’an Border Sightseeing Area and Huinan Triangle Longwan Area are formed into a regional tourism industry chain. It will further enrich the tourism resources in Jilin Province.

1.5 Cooperative Ways

Cooperation, other methods can be discussed in person.

1.6 What to be Invested by Foreign Party

Capital investment.

1.7 Construction Site of the Project

Liuhe County National Luotong Mountain Scenic Area

1.8 The On-going Condition of Project

The cooperation proposal has been prepared.

2. Introduction to Partner

2.1 Basic Conditions

Name: Liuhe County National Luotong Mountain Scenic Area

Address: Liuhe County National Luotong Mountain Scenic Area

2.2 Overview

Luotong Mountain Scenic Area covers an area of 90,004 acres. It is about 35 km from the northeast of Liuhe County, Jilin Province. The highest elevation is 1090m. It is the most prestigious cultural relics and scenic tourist destination. Because General Luotong in Tang Dynasty stopped here to conquer the north, it is called as “Luotong Mountain”.

Luotong Mountain City is built by relying on the mountain. The perimeter of city is 7.5 km. The city wall is of earth and rock mixture structure. There are totally 5 gates in the east and west cities. There are turret bases in the northeast and northwest corners of west city. The terrain of the city is flat and open. There are famous historical sites, e.g. Yanbin Yard, Dianjiang Platform, barracks, watchtowers, reservoir, Sanqing Temple and Shenqing Zhuwen Gate.

Scenic area is divided into the north and south tourism spots. In the south tourism spot, there are natural landscapes, such as Changbo Lazi, Daoqie Lazi, Dishuihu, Tongtian Cave and Yixiantian etc.; in the north tourism spot, there are many scenic spots, such as Wohu Ridge, Yinma River, Suolong Spring, and Chuanxin Cave, etc.

Luotong Mountain City is located in the central part of main peak. It was built by the slaves of Koguryo between AD 248 and AD 291. Luotong Mountain City is an important strategic castle.

2.3 Contact Method

Contact Unit: Economic and Technical Cooperation Bureau of Jilin Province

Contact address: No. 999, Liuhe Street, Liuhe County, Jilin Province

Contact Person: Yang Zhenmin  0435-7213300  13944550505

       Chen Yuzhong 0435-7602881 13904455433

Fax: 0435-7330722

Zip Code: 135300

E-mail: jllhjhj@163.com

 

Contact Person of Project City (Prefecture):

Contact Unit: Economic and Technical Cooperation Bureau of Tonghua City

Contact Person: Sun Xiaodi

Tel:0435-3650957  13843515611

E-mail: th3650957@126.com

Website: http://www.tonghua.gov.cn/

 

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