Key projects > Medicine and Health

Medicine and Health

Changbai Mountain Ganoderma Lucidum Medicinal Herbs Products Development Project of Tonghua City

2019-04-24 13:47:00    

1. Introduction to Project

1.1 Background of Project

1.1.1 Product Introduction

Ganoderma tsugae belongs to Ganoderma family and Ganoderma genus, also known as Ganodera tsugae Murr and wood ganoderma lucidum. It mainly grown in the cutting root and rotten wood of fir, larch, Korean pine and spruce of Korean pine broad-leaved mixed forest and needle mixed forest altitude of 700-1400m. It is an extremely rare precious herb, mainly distributed in China's cold temperate zone (produced in Changbai Mountain area).

The project is planned to be built in Tonghua National High-Tech Industrial Development Zone. The project cultivates and develops ganoderma lucidum by using the resources of ganoderma lucidum, which are the specialties of Changbai Mountain in Tonghua City, to provide raw materials for pharmaceutical companies. The project will mainly construct ganoderma lucidum R & D center, display and trading center, product processing center, logistics and distribution center, warehouse and ancillary facilities. The completion of project will help the development of Tonghua Chinese medicine industry.

1.1.2 Market Prospect

Chinese herbal medicine health foods are the quintessence of the Chinese nation, heritages of Chinese Millennium health culture, which growing in a natural environment, are preferred by Chinese consumers. Chinese herbal medicines are real agricultural products. Their functions are also well known. It does not need a lot of publicity, promotion or definition. Therefore, Chinese herbal health care products have greater advantages than the general health care products

Ganoderma tsugae not only has the symbol of auspicious, rich, goodliness, longevity, but also with unique effect to benefit the five internal organs (heart, liver, spleen, lung and kidney), supporting the healthy energy, regulating human metabolism and enhancing the body's immune function. Thus, it is easier to be accepted and loved by consumers.

Ganoderma tsugae is rich in nutrients and contains essential amino acids, nucleosides, trace elements, vitamins and bioactive polysaccharides, triterpenoids and alkaloids, and is also a good source of dietary fiber necessary for human health. Ganoderma tsugae has curative effect on hepatitis, arthritis, diabetes, hypertension, hyperlipidemia, neurasthenia and other diseases, but also has a significant effect on the three major lethal human diseases of coronary heart disease, cancer and stroke.

Polysaccharides of ganoderma tsugae mainly consists of the physiologically active monosaccharide polymers and β-D-glucan and other components, with the effect of anti-tumor, enhancing immunity, anti-virus, scavenging free radicals, anti-aging, anti-thrombosis, anticoagulant and so on, which is the main effective components of supporting the healthy energy.

Triterpenoids is another active ingredient isolated from ganoderma tsugae. Ganoderma triterpenoids can rapidly increase the immunity, which reflecting on the function of lymphocyte proliferation, promoting the phagocytic ability and lethality of macrophages, NK cells, T cells, and directly and indirectly killing tumor cells. Triterpenoids also has the effect of liver detoxification, anti-oxidation, anti-bacterial and anti-inflammatory, anti-HIV and herpes virus, inhibition of liver tumor cells and so on, is the main material basis of the efficacy of detoxification.

Alkaloids in ganoderma tsugae has the effect on improving coronary blood flow, reducing myocardial oxygen consumption, enhancing anti-hypoxia capacity of cardiac muscle and body and lowering cholesterol. It has a significant effect on curing coronary heart diseases, hypertension, hyperlipidemia, hepatitis, muscle weakness other diseases.

Nucleosides are indispensable and important substances that make up DNA and RNA. They are extremely important material bases for biological inheritance and information transmission. Adenosine, uridine, adenine, uracil and other active ingredients of nucleosides in ganoderma tsugae are the material basis of ganoderma tsugae’s anti-mutation function. Amino acids is the basic unit of to constitute protein, is an essential nutrient components of organisms, especially essential amino acids, which can’t be synthesized from the human body but intake in vitro. Ganoderma tsugae fruiting body contains 18 kinds of amino acids. The essential amino acids content in the human is 40% higher than body other edible mushrooms. Especially the low content of methionine in edible mushrooms, the average content of ganoderma tsugae is much higher than other edible fungi. Ganoderma tsugae fruiting body contains Mn, Cr, Cu, Fe, Ca, Mg, Zn, Se, Ge and other trace elements. Its content of human-beneficial selenium, germanium, zinc, iron, calcium, magnesium and other trace elements is high. It is reported that ganoderma tsugae also contains boron. It can be said that the ganoderma tsugae is a treasure house of trace elements. Trace elements are important substance to maintain the body's normal physiological function, while trace elements and other active substances have synergies, of which organic germanium is an anti-cancer substance, which works polysaccharide of ganoderma tsugae in the inhibition of tumor, can significantly increase the polysaccharide anti-tumor effect.

Ganoderma tsugae also contains high content of vitamins, including VitC, VitE and carotene, with significant effect of antioxidant and anti-aging activity.

The price of ganoderma tsugae is about 60-200 yuan per kilogram. Ganoderma tsugae is a rare and precious herbal. It grows on fir, larch, Korean pine, spruce stump and decaying trees in Korean pine broad leaved mixed forest, and coniferous mixed forest. The price is mainly determined by varieties, quality, origin place and wildness. Generally, it is about 60-100 yuan per kilogram for bag-material-planted ganoderma tsugae, about 80-100 yuan per kilogram for basswood tree ganoderma tsugae, about 800-1,000 yuan per kilogram for imitated wild ganoderma tsugae,and about 4,000 yuan per kilogram for authentic wild ganoderma tsugae.

With the growing cultivation of ganoderma tsugae cultivation technology, the production costs of Ganoderma are gradually reducing. Ganoderma tsugae become affordable health products for ordinary people. More people validated and spread the efficacy of ganoderma tsugae for market cultivation, which quickly released consumer demand and made it a dark horse in the health care products market, with board market prospect.

 1.1.3 Favorable Conditions for Project Construction and Necessity

1Policy Advantage

In 2016, the Guiding Opinions of the General Office of the State Council on Promoting the Healthy Development of the Pharmaceutical Industry put forward that we need to optimize the application environment, strengthen the support of factors, adjust the industrial structure, strictly supervise the industries, deepen the opening-up cooperation to stimulate the vitality of innovation in the pharmaceutical industry and lower the output of pharmaceutical products from R&D to going public. Our goals include speeding up the reform of institutional mechanisms in the fields of examination, approval, production, distribution and use of pharmaceutical products, promoting the intellectualization, service and ecology of the pharmaceutical industry, realizing the rapid development of the industry and the transition to medium and high end, and continuously satisfying the needs of the masses Multi-level, diverse health needs of people.

Jilin Provincial Government has issued the Opinions on Promoting the Development of Pharmaceutical and Health Industry. Over 50% of new adding special fund of the development of pharmaceutical and health industry will be used to support the development of the pharmaceutical and health industry in Tonghua High and New Technology Industrial Development Zone for over 5 years.

2Industrial Advantage

Tonhua private economy is vibrant, with distinctive industrial characteristics. It formed the three pillar industries of medicine, foodstuff and tourism as well as three advantageous industries of metallurgy, building materials and equipment manufacturing.Tonhua Pharmaceutical Industry Cluster was awarded as "China Top 100 Industrial Clusters" and was the first "China Medical City", "The "Wine City" and the important "steel city" in the northeast China. Tonhua National High-tech Zone is one of only two hi-tech zones named by medicine in China. The number of large-scale pharmaceutical enterprises in the city has grown to 108 and the total output value of the pharmaceutical industry has reached 110.96 billion Yuan, accounting for 55% of the total volume of the province. The number of pharmaceutical companies, the number of listed pharmaceutical companies, the number of state-level pharmaceutical technology centers and the number of sales staff in pharmaceutical companies in Tonhua ranked first in the prefecture-level cities in the country.

3Location Advantage

Tonhua's unique geographical location leads to huge open space. It is located in the center of Northeast Asia economic circle and the core area of the Yale River international economic cooperation zone. It faces North Korea across the Yale River and has a border length of 203.5 kilometers. It is the important connecting belt of promoting the strategy important of "One Belt, One Road" and realizing the connection of land and sea in the east end of China. It is an important transportation hub of the major thoroughfare in the northeast of China and an important window opening to the south of Jilin Province. It has one national highway and one national railway port. Three highways from Tonhua City to Shenyang City, Dandong City, Changchun City and the railway from Tonhua City to Dandong City were opened to traffic. Tonhua Airport has been accessed. Expressway from Tonhua City and JIngyu City is opened to traffic within the year. Highway from Tonhua City to Jian City begins the construction. High-speed Rail form Kiamusze City to Tonhua City to Shenyang City, Sipping City to Tonhua City to Baihe City will start the construction in 2017. Thus a regional transportation hub of "entering and leaving the sea, connecting the hinterland and reaching the international community" is formed.

1.2 Construction Contents and Scale of Project

New ganoderma tsugae R & D Center, display trading center, product processing center, logistics and distribution center, warehouse, and ancillary facilities, cover a total area of 100 acres.

1.3 Total Investments and Funds Raising of Project

1.3.1 Total Investments of Project

Total investments of project is 350 million yuanincluding construction assets investment of 270million yuan.

Table 1 Summary List of Total Investments of Project     Unit: RMB 10,000 Yuan

Serial No.

Name of Expense

Investment Amount

Percentage to Total Investment



Construction Investment





Interest Incurred in Construction Period





Working Capital





Total Investments of Project1+2+3




1.3.2 Funds Raising of Project

The company raises funds by itself.

1.4 Financial Analysis and Social Evaluation

1.4.1 Major Financial Indicators

After the completion of the project, the annual sales income will be 303 million yuan and the profit will be 100 million yuan. The payback period of investment is 5.5 years (after tax, including construction period of 2 years) and the profit rate of investment is 28%.

Table 2 List of Major Indicators for Financial Benefits Forecast

Serial No.






Operating Income

10,000 Yuan/a


Normal Year


Total Profits

10,000 Yuan/a


Normal Year


Financial Internal Rate of Return of all Investments



After income tax


Financial Net Present ValueIc=10%

10,000 Yuan


After income tax



Payback period of All Investments



Including construction period of two years



Profit Margin of Investment



After income tax


Note: the "10,000 Yuan" in the table refers to RMB.

1.4.2 Social Evaluation

The construction of this project is of great significance to exerting the advantages of local resources, enhancing the vitality of local economy and promoting the coordinated development of local society and economy. The construction of ganoderma tsugae industrial base and the development of intensive processing ganoderma tsugae products are of less investment and quick payback, and can absorb personnel at different levels, provide broad employment opportunities to laid off workers for enterprises.

The construction of the project will effectively promote the development of local transportation and industries and effectively promote the development of local economy and regional economy.

1.5 Cooperative Way of Project

Joint venture cooperationother ways will be negotiated face to face.

1.6 Foreign Investment Way

Capital, other ways will be negotiated face to face.

1.7 Construction Site of Project

State Pharmaceutical High-tech Industrial Development Zone of Tonghua City

1.8 Project Progress

The project planning paper has been completed.

2.  Introduction to Partner

2.1 Basic Condition

Name: National Pharmaceutical High-tech Industrial Development Zone      Management Committee of Tonghua City

AddressJingkaihuan Road No.1566, Tonghua City, Jilin Province

2.2 Overview

Pharmaceutical Hi-tech Industrial Development Zone of Tonghua City (hereinafter referred to Tonhua Medical High-tech Zone), formerly known as Tonhua Economic Development Zone in Jilin Province, was founded in July 2005. In August 2011, approved by Jilin Provincial People's Government, Jilin Tonhua Economic Development Zone was integrated with Tonhua Pharmaceutical High-tech Industrial Development Zone and changed its name to Tonhua Pharmaceutical High-tech Industrial Development Zone. In December 2013, the State Council approved the promotion as a state-level high-tech medical district. Tonhua Pharmaceutical High-tech Zone approved planning area is12.7082 square kilometers, with administrative division area of 57.3 square kilometers, long-term planning area of 57 square kilometers and the administrative division area of 107 square kilometers.

There are 43 existing pharmaceutical companies in Tonhua Pharmaceutical High-tech Zone, Wantong pharmacy group co., Xiuzheng pharmacy group co. and other five pharmaceutical companies have developed into a group. Tonhua Dongbao, Tonhua Jinma Pharmaceutical company are listed companies. Nine pharmaceutical companies have been re-recognized as national level high-tech enterprises. Nine enterprises are enterprise technology centers of provincial-level certification, three of which are recognized as state-level technology centers.In 2010, the large-scale pharmaceutical industry in the pharmaceutical hi-tech zone achieved a total output value of 22.96 billion Yuan, with taxes of 398 million Yuan and a profit of 1.21 billion Yuan. The GDP of high-tech zones will reach 70 billion Yuan by 2015. With the implementation of Tonghua's "big traffic" strategy, "Six Road, One Port and One Harbor" projects such as Tonghua City to Shenyang City Expressway, Tonghua City to Dandong City Expressway, Tonghua City to Changchun City Expressway, Tonghua City to Jian City Expressway, Meihekou to Shenyang Expressway and Tonghua City to Dandong City Railway, Tonhua Airport and Tonhua Dry Port have been built one after another, Tonghua City will be directly integrate into the "2-hour economic circle" of the Bohai Rim. In particular the implementation of the "Yantan Economic Belt" in the Yale River Economic Cooperation Zone in Liaoning and Jilin provinces, which will make Tonhua an important contact zone pilot zone of coastal economic zone of Liaoning Province, economic district of Shenyang City and development and opening up zone of Changjitu(Changchun City, Jilin City and Tumenjiang City). Thus, Tonhua Pharmaceutical High-tech Zone has a very strong second-mover advantage.

3. Contact Methods

Contact Person of State Pharmaceutical High-tech Industrial Development Zone of Tonghua City: Wang Long





Contact Methods of Project City (Prefecture)

Contact Unit Economic and Technological Cooperation Bureau of Tonghua City

Contact PersonLiu Daoguang

Telephone0435-3650996  18904359157