1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The project is located in Luxiang Town, Shuangyang District, Changchun City. Shuangyang has a long history of deer breeding spanning over 300 years. Historical records indicate that deer were presented as tributes to the imperial court during the Emperor Kangxi era of the Qing Dynasty, with systematic breeding of sika deer beginning around 1725 during the Emperor Yongzheng era. Today, Luxiang Town’s deer antler prices serve as a national benchmark. Leveraging its robust sika deer breeding industry, the project aims to establish an integrated development demonstration zone encompassing three key sectors: deer product processing, cultural tourism, and health & wellness.

1.1.2 Market prospect

(1) Current status of Sika deer breeding

Northeast China, particularly Jilin and Liaoning provinces, is a traditional hub for sika deer breeding. Jilin Province, the origin and largest production base of sika deer in China, boasts advanced breeding techniques, large-scale operations, and a mature industrial system. For instance, Luxiang Town in Shuangyang District, known as the “No. 1 Sika Deer Village in China,” hosts numerous breeders and cooperatives.

As of the end of 2023, the number of raised sika deer in Jilin Province reached 852000, accounting for more than half of the national total and ranking first in the country. As one of the top ten agricultural clusters in Jilin Province, the sika deer is an important characteristic agricultural resource. With its resource advantages, the sika deer industry has continuously grown into an emerging growth point in Jilin Province’s animal husbandry economy.

China is a major resource and breeding country for sika deer, as well as the first consumer of deer products, with a huge market demand. Jilin Province has a long history of breeding sika deer, profound cultural heritage, good industrial development foundation, and obvious characteristic advantages. Jilin sika deer has medicinal, meat, health, and ornamental value. It has excellent characteristics such as stable genetic performance, high yield, high quality, strong disease resistance, and tolerance to roughage. It has important breeding and development values.

However, with the continuous growth of market demand, the sika deer breeding industry is also facing new challenges. For example, how to improve breeding efficiency and product quality while ensuring the health of the sika deer population has become a focus of attention in the industry. Therefore, Jilin Province has begun to explore intelligent and ecological breeding models in order to achieve sustainable development of the spotted deer industry.

Introducing the concept of precision agriculture, real-time monitoring and analysis of the growth environment and health status of sika deer can be achieved through big data and IoT technology, thus realizing refined management. This can not only improve the survival rate and production efficiency of sika deer, but also provide consumers with safer and higher quality deer products.

In addition, Jilin Province is actively expanding the market channels for sika deer products, promoting them to a broader market through e-commerce platforms and domestic and international exhibitions. At the same time, the government is also introducing relevant policies to encourage and support technological innovation and brand building in the Sika deer industry, in order to enhance the competitiveness of the entire industry.

In summary, while maintaining its traditional advantages, Jilin Province’s sika deer breeding industry is constantly exploring new development paths through technological innovation and market expansion. In the future, with further technological maturity and market expansion, the sika deer industry is expected to become an important pillar of the agricultural economy in Jilin Province and even the whole country.

(2) Market prospect analysis of the sika deer industry

With the increasing demand for sika deer products in the market and the continuous improvement of breeding technology, the scale of sika deer breeding is gradually expanding. There are numerous deer farms in the country, mainly operated by individual farmers, as well as many large-scale breeding enterprises and cooperatives.

Some local governments actively promote the development of the sika deer breeding industry, encouraging farmers to expand their breeding scale and build standardized breeding bases through policy support, financial support, and other means. For example, Tongjing Township in Dejiang County has continuously expanded the scale of sika deer breeding through the introduction of deer breeding and the construction of breeding bases.

The traditional courtyard style farming still exists, which is a small-scale farming model mainly carried out by households as a unit, with relatively simple management, but relatively low production efficiency and economic benefits.

The large-scale breeding model has gradually become mainstream, and breeding enterprises and cooperatives have built modern breeding bases, adopting scientific breeding management techniques and standardized production processes to improve breeding efficiency and product quality. For example, Zhanguo Livestock Farmers’ Professional Cooperative in Halazhigou Township, Huzhu County has built a large-scale sika deer breeding farm and introduced advanced breeding technology and equipment.

There are also some places that have explored characteristic breeding models, such as the breeding model combined with rural tourism. Tourists can visit the sika deer breeding farm to understand the living habits and breeding process of sika deer, which increases the added value of breeding.

The integration of sika deer farming and processing industry is constantly deepening. Farmers and enterprises not only focus on the breeding of sika deer, but also actively carry out the processing of deer products, extend the industrial chain, and improve product added value. Deer product processing includes the processing of deer antler, deer blood, deer meat and other products, and various health products, medicines and foods have been developed. The integration with the cultural and tourism industry is becoming increasingly close. Some places combine the breeding of spotted deer with rural tourism, ecological sightseeing, etc., to create spotted deer themed tourist attractions and experience projects, attracting tourists to visit and experience.

In summary, the sika deer breeding industry is developing towards diversification, scale, and standardization. The government's policy guidance and financial support provide strong guarantees for the growth of the industry, while technological progress and innovative models inject new vitality into the sika deer breeding industry. In the future, with further integration and upgrading of industries, the sika deer breeding industry is expected to become an important force in promoting local economic development, creating more economic and cultural value for society.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In June, 2022, the Opinions on Accelerating the Development of the Sika Deer Industry was issued, leveraging its unique resource advantages to formulate a series of high-value measures for breeding high-quality sika deer breeds, standardized scale breeding, and deep processing, continuously improving the quality and level of the sika deer industry cluster, and empowering the development of the sika deer industry. The Opinions points out that our province strives to develop the breeding of one million sika deer within five years, with more than 100 sika deer farms reaching 1000, the annual output of sika deer antler reaching 1000 tons, and the output value of the entire industry chain reaching 100 billion yuan. Sika deer deep-processing enterprises have made great efforts to improve processing capabilities, research and develop new products, and cultivate famous brands. They vigorously implement the strategy of developing the entire sika deer industry chain and fully utilizing products, promote the transformation of primary processing such as fur, bone, and blood to deep processing, vigorously develop functional foods and health foods, extend the industrial chain, and enhance product added values.

(2) Resource advantages

As of the end of 2023, the total development of spotted deer in Shuangyang District, Changchun City reached 370000 heads, with more than 13000 deer farmers and nearly 1500 deer farms, including farms with a breeding capacity of over 1000 heads. The annual output of deer antler was more than 740 tons, and that of the by-products of deer was 7000 tons. The output value of the entire deer industry chain exceeded 12 billion yuan. By the first half of this year, the output value of deer in Dongfeng County has reached 8.16 billion yuan, the breeding volume of sika deer has reached 254000, and the production of deer antler has exceeded 411 tons.

(3) Location and transportation advantages

Luxiang Town is located in the southeast of Changchun City and the west of Shuangyang District, with a superior geographical location and convenient transportation. Luxiang Town has developed transportation, with the Changshuang Expressway running through it. It is located within the half-hour economic circle of Changchun and is an important node of the sika deer-themed tourism hotline in the southeast of Changchun. Modern transportation networks such as Changchun One-hour Economic Circle Ring Expressway and Changchun-Yanji Expressway intersect, and convenient transportation and vast geographical space lays a solid foundation for future development.

1.2 Contents and scale of project construction

The project is located within the jurisdiction of Luxiang Town and around Hongqi Reservoir, covering an area of 1424.26 hectares with a planned total investment of 2.6 billion yuan. It is mainly divided into three major sections: deer products, cultural tourism, and health and wellness. The construction content includes the deer culture exhibition center, comprehensive hospital, international school, deer product research and development center, deer product trading center, cultural health and wellness community, leisure vacation community, deer ecological wetland park, etc.

1.3 Total investment of the project and capital raising

The total investment of the project is 2.6 billion yuan, including the construction investment of 2.08 billion 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 1.42077 billion yuan, its profit will be 426.23 million yuan, its investment payback period will be 8.1 years (after the tax, including the construction period of 2 years) and its return on investment will be 16.39%.

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

1.4.2 Social evaluation

After the completion of the project, it will be conducive to forming a complete industrial chain, promoting industrial upgrading, driving downstream industrial development, and at the same time, promoting local employment, playing a good role in promoting local social development, and also promoting the progress of pillar industries in Changchun City.

1.5 Cooperative way

Sole proprietorship of the investor

1.6 What to be invested by the foreign party

Funds, equipment or technology

1.7 Construction site of the project

Zhenqu Village, Luxiang Town, Shuangyang District, Changchun City, Jilin Province

1.8 Progress of the project

The project cooperation plan has been prepared.

2. Introduction to the Partner

2.1 Basic information

Name: Jilin Construction Group Co., Ltd.

Address: Caijia Village, Luxiang Town, Shuangyang District, Changchun City, Jilin Province

2.2 Overview

Jilin Construction Group Co., Ltd. (formerly known as Jilin Jiangcheng Road and Bridge Engineering Co., Ltd.), founded in 2002, is located in Changchun City, Jilin Province. It is an enterprise mainly engaged in civil engineering and construction industry. The registered capital of the enterprise is 1269 million RMB, and the paid-in capital is 1269 million RMB.

Luxiang Township, Shuangyang District is a provincial-level characteristic industrial town for spotted deer, and also the core area for the development of Jilin Province’s deer industry modern agricultural industrial park. In recent years, Shuangyang District has comprehensively polished its golden signboard as the “Hometown of Chinese Sika Deer”, fully amplified the advantages of deer, made full use of deer culture, fully promoted urban-rural integration development, and helped the construction of sika deer characteristic industrial towns achieve new and greater breakthroughs.

Build platforms and formulate policies around the deer industry. In order to provide a platform and carrier support for the development of the deer industry, Shuangyang District has established Lugang Group, a state-owned sole proprietorship company for the development of the deer industry. Currently, the group has six branches with sales of 100010 thousand yuan; fully implement the construction of a national level deer industry modern agricultural industrial park. Currently, there are 208 new deer industry operators and 9 deer industry deep processing enterprises in the park; established the first Sika Deer Industry Research Institute in Jilin Province and China Shuangyang Sika Deer Industry Technology Innovation Strategic Alliance. In order to provide financial and policy support for the development of the deer industry, Shuangyang District has introduced a policy of benefiting the people through breeding land. For courtyard deer farmers, no reclamation plan will be implemented for breeding land under 5 acres, and no reclamation deposit will be collected. At the same time, it will continue to strengthen cooperation between government and banks, innovate and implement “live deer loans” and other measures to assist enterprises. As of now, it has granted 120 million yuan in credit to 762 deer farmers in the town and disbursed more than 70 million yuan in loans.

Gather popularity and promote development around the deer industry. In order to form a unique brand for the town, Luxiang Town vigorously implements the Deer Culture Injection and Expression Project, fully integrating deer culture with town culture, shamanism culture, health culture, etc., and digging deep into cultural heritage. Zhao’s Deer Antler Cooking and Frying Techniques and Deer God Dance have been listed as provincial and municipal intangible cultural heritage. At the same time, high standard planning and implementation of brand festivals such as China Shuangyang Sika Deer Festival and the Deer Picking Culture Festival have been carried out, and the most professional and largest-scale Sika Deer Museum in China has been built with high standards, effectively enhancing brand influence. In order to improve the reputation of modern towns, Luxiang Town adheres to overall planning and construction, and has successively implemented a series of infrastructure construction projects such as boutique streets, road and bridge renovations, rainwater and sewage pipe networks, square expansion, as well as the construction of villages along the line, greening, beautification, and lighting enhancement. The landscapes of Luxiang Street, Pangutun, and others have been revitalized. At the same time, the construction of supporting service facilities such as deer product warehousing, processing, logistics, freezing, and trade has been further strengthened, as well as the comprehensive management of the town. The leisure and livable functions of the town have been more perfect, with an annual reception of over one million tourist arrivals.

Attract enterprises and build projects around the deer industry. In order to provide strong industrial support for the construction of the town, Luxiang has always grasped the main line of deer industry in the process of town creation, and has successively cultivated and introduced a number of key projects and leading enterprises with fast implementation, strong driving ability, and good industrial prospects. Enterprises such as Zhenyu Shilu Deer Co., Ltd. and Changsheng Deer Co., Ltd. continue to develop and grow, while projects such as Yunchuang Industrial Park, Pangutun Deer Culture and Art Village, Jinheng Meihua Deer Industrial Park Phase II, and Luye Biotechnology Co., Ltd.’s integrated production and sales of 10000 sika deer are rapidly advancing. At present, the total number of deer in the town is 185000, with more than 520 deer product distributors and an annual fresh velvet trading volume of over 1000 tons. The total output value of the deer industry has reached 6.8 billion yuan. Luxiang Sika Deer Characteristic Town has become the largest deer product trading and distribution base in China and a leading area for the development of China’s sika deer industry.

2.3 Contact method:

2.3.1 Contact person of the partner:

Contact person: Zhang Shouxin

Tel: +86-18243151874

E-mail: 59433967@qq.com

Postal code: 130600

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