1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

The project relies on Wangqing Xingmaiding Technology Co., Ltd. to conduct research and development and production of electronic terminal products. It will settle in the Green Power Technology Industrial Park, which can accommodate more than 20 enterprises. The industrial park plans to install photovoltaic panels on the rooftops of various buildings for photovoltaic power generation, fully using clean energy to promote regional clean energy use and energy structure upgrading and adjustment. Enterprises entering the park can use photovoltaic power generation.

1.1.2 Market prospect

(1) The competitive landscape and market share of the intelligent terminal industry

With the development of global technology, smart terminals have become a necessary tool for people and even various industries in their daily production activities. There are many types of segmented products in the smart terminal industry, and the competitive factions in China’s smart terminal industry can be divided into smartphones, wearable devices, smart home appliances, smart instruments and meters, smart security equipment, etc. based on product types. Among them, the main participants in the smartphone market are Apple, Huawei, Xiaomi, OPPO, etc; the main participants in the wearable device market are Huawei, Lifesense, Xiaomi, etc; The main participants in the smart home appliance market are Haier Smart Home, Xiaomi, Midea, TCL, etc.

At present, the listed companies of intelligent terminals in China are mainly distributed in the eastern and southern coastal areas, with a relatively small number of enterprises in the western region. Among them, there are a large number of listed companies in the intelligent terminal industry in Guangdong Province, distributed in various links such as chips, batteries, display screens, software systems, mobile intelligent terminals, and non mobile intelligent terminals.

Data shows that in the smart terminal market, the experience of multi device interconnection is rapidly updating. Some brands such as Huawei and Xiaomi, etc. focus on the interaction between mobile phones and smart devices, and the software ecosystem has become a new competitive advantage for mobile phone manufacturers to attract consumers. As of October, 2024, the monthly active user base of APP under Huawei, Xiaomi, and Vivo is leading.

(2) Market demand analysis of project products

The market prospect of functional IC chips is broad, mainly influenced by various factors such as technological progress, market demand, and policy support.

With the rapid development of emerging technologies such as 5G, AI and Internet of Things, etc., it has led to an increasing demand for functional IC chips. For example, the demand for high-performance and low-power chips in 5G communication base stations continues to rise, driving the market growth of functional IC chips.

At present, functional IC chips are widely used in various fields, including consumer electronics, automotive electronics, medical equipment, industrial control, etc. Especially in the fields of data centers, cloud computing, and artificial intelligence, the demand for high-performance, low-power, and highly integrated chips is particularly urgent. With the acceleration of digitalization and intelligence trends, the market demand for functional IC chips will continue to grow. At the same time, the government has introduced a series of policies aimed at encouraging and supporting the development of the chip industry. For example, the Chinese government has proposed the New-Generation Artificial Intelligence Development Plan, which clearly states the need to accelerate the research and industrialization process of chips. These policies provide a favorable external environment for the development of functional IC chips.

--The market prospect of Class C small appliances is broad, mainly driven by factors such as technological innovation, consumer upgrading, and emerging market demand.

Technological innovation is the key to promoting the sustainable development of the 3C industry. With the continuous development of technologies such as artificial intelligence, the Internet of Things, and 5G, 3C products are constantly upgrading and replacing, meeting consumers’ demands for higher performance and more convenient experiences. In addition, consumer upgrading and emerging market demand have also provided new growth points for the industry. With the increase of people’s income level and the change of consumption concept, consumers have put forward higher requirements for the quality, brand, and service of 3C products, which has driven the market demand for high-end 3C products. Meanwhile, the purchasing power of consumers in emerging markets such as Southeast Asia and Africa is gradually increasing, and the demand for 3C products continues to grow.

In recent years, the 3C industry has maintained a rapid growth trend worldwide. Data shows that the market size of China’s 3C industry in 2022 is approximately RMB 1905.5 billion, a year-on-year increase of 5.2%. Globally, it is expected that the 3C electronics market will have reached $1976.2 billion by 2026, with a compound annual growth rate of 5.8%. This growth is mainly due to the popularity of core products such as smartphones and tablets, as well as the continuous emergence of emerging technologies.

The fascia gun industry will show a trend of intelligent and portable development. The introduction of smart sensors, apps and other technologies will achieve more precise massage and relaxation effects, meeting consumers’ pursuit of high-quality life. At the same time, with the increasing demand for portability among consumers, fascia gun products will pay more attention to portable design, making it convenient for users to use anytime and anywhere.

In recent years, the market size of fascia guns has continued to expand, and the growth rate is remarkable. Data shows that by the end of 2024, it has reached approximately 3.98 billion yuan, and is expected to have exceeded 4.59 billion yuan by the end of 2025. This growth is mainly due to the deepening of public health awareness, the improvement of public health awareness, and the popularization of fitness activities. At the same time, the entry of well-known domestic and foreign brands has intensified market competition and promoted continuous product innovation, leading to an optimistic market outlook.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The Ministry of Industry and Information Technology and other departments have released the Action Plan for Stable Growth of Electronic Information Manufacturing Industry in 2023-2024, which proposes to promote technological breakthroughs in electronic materials, electronic specialized equipment, and electronic measuring instruments in key areas such as personal computing, new displays, VR/AR, 5G communication, and intelligent connected vehicles, research and establish an innovative public service platform for the electronic materials industry, and give full play to the public service functions of integrated circuit material production and application demonstration platform, national new material testing and evaluation platform, and electronic materials industry center. Under the influence of this policy, the development speed of optoelectronic materials will be further accelerated.

During the 14th Five-Year Plan, China will continue to regulate and support the development of the intelligent terminal industry. Some policies such as the Notice on Issuing the Modernization Plan for Market Supervision during the 14th Five-Year Plan and the Notice on the Development Plan for Digital Economy during the 14th Five-Year Plan emphasize the need to improve the recall system for defective products, guide the interconnection of intelligent terminal products, and promote the popularization of intelligent terminals.

(2) Location advantages

Wangqing County has obvious location advantages and developed transportation. Wangqing is located in the eastern part of Jilin Province and the northeastern part of Yanbian Korean Autonomous Prefecture. The entire area is 108 kilometers long from north to south and 152 kilometers long from east to west. Wangqing County is adjacent to Northeast Asia Economic and Trade Zone, adjacent to the open cities of Suifenhe, Hunchun, and Tumen in China, and faces eight ports including Suifenhe, Changlingzi, Shatuozi, Tumen, Sanhe, Nanping, and Shuangmufeng. The area is 9016 square kilometers, making it the second largest county-level county in the province.

Jilin Wangqing Economic Development Zone is located in the northeast of Yanbian Prefecture, at the intersection of Changchun-Jilin-Tumen Development and Opening Pilot Zone and Harbin-Mudanjiang-Suifenhe-Dongning Economic Belt in Heilongjiang Province. It is 77 kilometers away from the prefecture of Yanji, 55 kilometers away from Tumen Port, and 121 kilometers away from Hunchun Port.

(3) Investment service advantages

Wangqing Economic Development Zone has achieved significant results in attracting investment. Eight new projects have been launched, with a total amount of investment of up to 830 million yuan, injecting strong momentum into the local economic development. At the same time, 10 key investment and negotiation projects are actively being promoted, with an expected total amount of investment of 1.52 billion yuan, demonstrating the strong development momentum and huge investment potential of Wangqing Economic Development Zone.

Wangqing Economic Development Zone will continue to adhere to the investment promotion strategy of “paying equal attention to both visiting and inviting”, continuously expand investment channels, and strengthen cooperation and exchanges with domestic and foreign enterprises and institutions. At the same time, further optimize the business environment, improve service quality, and provide investors with more convenient, efficient, and high-quality services. Through continuous efforts, Wangqing Economic Development Zone will attract more high-quality enterprises and projects to settle down, promoting the local economy to achieve high-quality development.

(4) Advantages of the cooperative enterprise

Wangqing Xingmaiding Technology Co., Ltd. is a company specializing in Internet of Things technology services, integrated circuit design, integrated circuit manufacturing, and other businesses. It was established on May 6, 2024 and is located at 701-1-4 Jincheng Street, Wangqing County, Yanbian Prefecture, Jilin Province. Its main business is Internet of Things technology services; manufacturing of specialized equipment for semiconductor devices; integrated circuit design; integrated circuit manufacturing; mold manufacturing; manufacturing of other electronic devices; manufacturing of mobile communication devices; enterprise management consulting; manufacturing of computer software, hardware, and peripheral devices; electronic product sales; software development; import and export of goods.

1.2 Contents and scale of project construction

The project covers an area of 10000 square meters, with 6 new 3C small home appliance production lines and 1 functional IC production line. It mainly produces functional IC chips, auxiliary chips for electronic, automotive, and industrial fields, as well as mobile phone motherboards, watch motherboards, small home appliances, functional massage chairs, fascia guns, and other products.

1.3. Total investment of the project and capital raising

The total investment of the project is 120 million yuan, including the construction investment of 96 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 revenue will be 85 million yuan, its profit will be 27.9 million yuan, its investment payback period will be 5.3 years (after the tax, including the construction period of 1 year) and its return on investment will be 23%.

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

1.4.2 Social evaluation

The research and development production project of electronic terminals can drive the development of local manufacturing industry, increase employment opportunities, and enhance local economic vitality by constructing standardized factories, high-efficiency dust-free purification workshops, and automated production lines. After the completion of the project, it is expected to provide a large number of job opportunities, drive local residents’ employment, alleviate employment pressure, and improve residents’ income levels.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Jilin Wangqing Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Management Committee of Jilin Wangqing Economic Development Zone (Original Wangqing Centralized Industrial Zone)

Address: 435-2 Binhe North Street, Wangqing County

2.2 Unit overview

Jilin Wangqing Economic Development Zone is located in the northeast of Yanbian Prefecture, at the intersection of Changchun-Jilin-Tumen Development and Opening Pilot Zone and Harbin-Mudanjiang-Suifenhe-Dongning Economic Belt in Heilongjiang Province. It is 77 kilometers away from the prefecture of Yanji, 55 kilometers away from Tumen Port, and 121 kilometers away from Hunchun Port. The development zone was formerly known as Wangqing County Industrial Concentration Zone. It was approved by the provincial government in November, 2005, with a planned land area of 3.22 square kilometers. In 2016, the park entered the national development zone list. On December 23, 2022, it was upgraded to Jilin Wangqing Economic Development Zone with the approval of the provincial government.

At present, there are 153 enterprises settled in the park, including 12 industrial enterprises above designated size. In 2022, Wangqing Economic Development Zone achieved a total industrial output value of 1.68 billion yuan, added value of 602 million yuan, tax revenue of 149 million yuan, fixed assets investment of 872 million yuan, and total import and export of 112 million yuan. In 2022, it ranked 25th in the comprehensive ranking of 72 provincial-level development zones in the province, with comprehensive strength ranking in the middle and upper reaches.

Since its establishment, the development zone has adhered to the coordinated development of economy, resources, and ecology. After years of layout, it has initially formed an ecological agricultural product processing industry represented by Haoji Food Co., Ltd., Zhongnong Co., Ltd., and Beiyihe Co., Ltd.; the edible fungi processing industry represented by Fusen Biotechnology Co., Ltd. and Bei’er Technology Co., Ltd.; the pharmaceutical and healthcare industry represented by Zhengshengkang Biotechnology Co., Ltd., Likang Pharmaceutical Co., Ltd., and Huahui Biotechnology Co., Ltd.; the clean energy circular economy industry represented by Kaidi Electric Power Co., Ltd., Jingyu Biotechnology Co., Ltd., and Green Power Technology Co., Ltd. During the 14th Five-Year Plan period, it will focus on cultivating four leading industries: agricultural product processing industry, big health industry, clean energy industry, and advanced manufacturing industry.

2.3 Contact method

Contact person: Miao Yuqiang

Tel: +86-15143374377

Unit: Jilin Wangqing Economic Development Zone (Original Wangqing Centralized Industrial Zone)

E-mail: wqkfzs@163.com

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

Contact unit: Yanbian Bureau of Commerce

Contact person: Li Jingyu

Tel: +86-13596515933