1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Laser medical devices refer to a kind of medical devices developed based on the principle of laser technology, which use the characteristics such as laser monochromaticity, directionality, high brightness and high coherence to diagnose and treat diseases in the medical field. Laser medical devices are characterized by high precision, non-invasive nature and rapid treatment, which greatly improves the medical effect and the quality of life of patients.

1.1.2 Market prospect

1. Development status of the laser medical device industry

According to the different application objects and efficacy of lasers in medical treatment, laser medical devices can be divided into several categories. Among them, typical laser medical devices include laser surgical instruments, laser beauty instruments, laser treatment instruments, etc. At present, domestic laser medical device enterprises have increased investment in active research and development, and the localization rate of laser medical devices has increased significantly. As shown by data, the number of domestic laser medical device registration certificates increased from 100 to 148, and the localization rate of laser medical devices increased from 57.5% to 68.8% from 2019 to 2022. In 2023, the number of H1 domestic laser medical devices registration certificates reached 160, and the localization rate of laser medical equipment reached 70.8%. Among them, there were 27 certificates in Wuhan, accounting for 16.88%, ranking first.

Table 1 Number of H1 Domestic Laser Medical Device Registration Certificates From 2019 to 2023

With the technical advancement of laser devices, new application fields of laser medical are constantly expanding, and laser devices in the original application scenarios are also constantly upgrading. In 2023, medical cosmetology was still the main application field of laser medical devices, with a demand of 795,200 sets, accounting for more than 98%, and the market output of laser medical devices was about 559,600 sets. From 2019 to 2022, the proportion of laser medical devices in the overall laser industry decreased from 6% to 4.8%, and the market size showed a fluctuating trend. In 2023, the market size of China's laser medical device industry was about 4.26 billion yuan.

Table 2 Market size of China's laser medical device industry From 2019 to 2023

2. Analysis on enterprise pattern and key enterprises in the laser medical device industry

(1) Enterprise pattern

Among the competitive echelons of China's laser medical device enterprises, the first echelon is the foreign-funded enterprises that have been deeply cultivated in the Chinese market for a long time, including Cynosure, Candela, South Korea's Wontech, etc. In addition, judging from the competitiveness of domestic brands, King Laser, Miracle Laser, Han's Laser, etc. have continuously improved the product value from brand building and market development in recent years, and their competitiveness in China is strong; second, enterprises with strong product competitiveness, including Potent Medical, Yage Optic and Electronic, Guangtai Medical, Gigaa Optronics, Create, etc.; enterprises with strong regional competitiveness are some small and medium-sized private enterprises.

Table 3 Competitive echelons of China’s laser medical device market

(2) Key enterprises

Miracle Laser Systems, Inc. is the first listed company of laser and other optoelectronic medical equipment in China. It is mainly engaged in R&D, production, agency and sales of laser and other optoelectronic medical devices, and at the same time provides customers with product spare parts and maintenance services. According to statistics, in 2023, the revenue of Miracle Laser’s light therapy equipment increased by 1.79% year-on-year to 171 million yuan; the revenue of spare parts and maintenance services increased by 19.05% year-on-year to 50 million yuan; and the revenue of laser surgery equipment and other products increased by 35.29% year-on-year to 46 million yuan.

Han's Laser Technology Industry Group Co., Ltd. provides a complete set of laser processing solutions and related supporting facilities for domestic and foreign customers. The main products include laser marking machine series (such as: ultraviolet laser marking machine UV-2E, UV-3S and fiber laser marking machine H20/HM20), laser welding machine series (such as: PB25CE and PB25), laser cutting machine series (such as S035-50 and FS02-20), laser demonstration series, PCB laser drilling machine series and other series of more than 200 kinds of industrial laser equipment and its supporting products. They are widely used in IT manufacturing, electronic circuits, instruments, printed circuits, computer manufacturing, mobile communications, home appliances, kitchen and bathroom, auto parts, precision instruments, building materials, hardware tools, clothing and accessories, urban lighting, jewelry, craft gifts, food and pharmaceutical packaging, and other industries. As shown by data, the operating revenue of Han's Laser increased by 9.51% year-on-year to 2.656 billion yuan in the first quarter of 2024.

3. Market prospect of China's laser medical device industry

With the improvement of market rules and regulations, the medical laser device industry will continue to maintain a good momentum of rapid and healthy development, and the next 20 years will be the “golden age” of rapid development of China's laser medical device industry. It is estimated that the market size of China's laser medical devices will have reached 10.62 billion yuan by 2030.

1.1.3 Technical analysis

The laser medical device consists of a sequentially connected power control system, a first laser and a laser synthesizer, and also includes a second laser. The second laser is connected in parallel with the first laser, and the laser emitted by the first laser and the laser emitted by the second laser are synthesized into a composite laser beam through the laser synthesizer.

The laser medical device combines short-wavelength laser pulses emitted by the first laser with long-wavelength laser pulses emitted by the second laser to form composite laser pulses. This can increase the energy of plasma blasting and improve the efficiency of stone crushing; and the first laser and the second laser are controlled by the power control module, and a single laser output or the composite output of the two lasers can be realized. When performing surgical treatment, there is no need to change the treatment equipment, and the switching or composite output of the two lasers can be realized only by controlling the power control module, which can facilitate the doctor to carry out treatment and increase the efficiency of surgery.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

As proposed in the “14th Five-year Plan” for the Development of the Medical Equipment Industry, the goal by 2035 in the medical field is to establish evaluation standards for the laser medical system and improve the ecological environment of medical lasers and the entire laser industry; for major medical applications, master core components and key technologies of lasers and industrialize them, form a complete industrial chain and international competitiveness, and have world-leading independent intellectual property rights.

It is proposed in the Notice of the General Office of the People's Government of Jilin Province on the Implementation Plan for Building a New Track for the Biomedicine and High-end Medical Device Industry in Jilin Province to focus on the development of key laser devices, laser treatment intelligent systems, high peak power laser treatment equipment, and medium wave ultraviolet light therapy equipment.

It is proposed in the 14th Five-year Plan for the Development of Electronic Information Industry in Jilin Province proposes to carry out the R&D and industrialization of optical crystals for lasers, promote the R&D and manufacturing of high-end laser chips, accelerate the industrialization of advanced laser technology achievements, and develop new lasers for applications in industrial, medical, display and other fields. Rely on key technologies of the laser industry as owned by universities and institutes, strengthen laser processing equipment and laser communication equipment, and accelerate R&D and industrialization of laser anti-counterfeiting, laser detection, laser medical care, laser cutting and welding, laser additive manufacturing equipment, etc.

(2) Resource advantages

Land resources. The cultivated area of Taobei District is 2.6 million mu, including 800,000 mu of paddy field and 1.8 million mu of dry land, of which most are fertile soils such as chernozem and meadow soil. The area of the forest land is 343,000 mu, and the forest coverage rate is 9.26%. The total area of grassland is 260,000 mu, rich in high-quality forage grass. Other land resources are sufficient.

Water resources. The average annual precipitation in Taobei District is about 349.9 mm. The total amount of groundwater resources is 478 million cubic meters, and the total amount of groundwater exploitation is 508 million cubic meters. The Taoer River, the largest tributary on the right bank of the Nenjiang River, flows through 6 townships (towns) and 1 farm in the area, with a total length of about 159.6 kilometers and a drainage area of about 2,053 square kilometers.

Wind energy resources. The total amount of wind energy that can be developed is 22.8 million kW. The grid-connected installed capacity of wind power reached 3.84 million kW, accounting for 67% of the province (5.77 million kW). According to the development plan prepared by the Provincial Electric Power Survey and Design Institute, the developable wind power area is 5,060 square kilometers. The centralized installed capacity that can be planned exceeds 16 million kW, and the distributed installed capacity that can be planned exceeds 10 million kW in the future. Among them, the grid-connected installed capacity of wind power in Taobei District is 350,000 kW, the developable wind power area is 215.2 square kilometers, and the planned installed capacity is 700,000 kW.

Light energy resources. There is sufficient sunshine in the territory, with high solar radiation energy. The average annual total solar radiation is about 5300 megajoules per square meters, and the annual sunshine time is more than 2900 hours, with 1500-1700 hours available. It is an area with “rich resources”, and is suitable for the construction of large-scale photovoltaic power stations. At present, 5 photovoltaic power stations have been built, and 86.5 MW of grid-connected power generation has been realized, including 10 MW for Huaneng, 15 MW for Zhongjin Jiangding, 15 MW for Huaru Photovoltaic Forage Project, 20 MW for Top 100 Photovoltaic Poverty Alleviation Power Stations, and 26.5 MW for Village-level Photovoltaic Poverty Alleviation Power Stations.

(3) Industrial advantages

There are 15 pharmaceutical production enterprises, 3 medical device production enterprises, 12 pharmaceutical wholesale enterprises, 9 retail chain headquarters enterprises, and 2 cosmetics production enterprises within the jurisdiction of Baicheng City. There are 765 pharmaceutical retail enterprises, 315 chain stores, 980 medical device business enterprises, and 746 cosmetics business and use organizations.

(4) Talent advantages

There are many colleges and universities such as Baicheng Normal College, Baicheng Medical College and Baicheng Vocational and Technical College in Baicheng City, which is actively introducing Baicheng Industrial Vocational and Technical College. After the completion of the college, it is planned to recruit more than 2,000 undergraduates from the province and the country every year, reaching 10,000 people in 4-5 years. At that time, it, together with Baicheng Normal University and Baicheng Medical College, will form a “university town” with nearly 50,000 teachers and students, which can provide professional and technical talents for the project.

(5) Location advantages

Located in the junction of Horqin Grassland and Songnen Plain, Baicheng City is the only way which must be passed for entry from the western part of Heilongjiang and the eastern part of Inner Mongolia Autonomous Region. It is one of the major hub cities of the fourth Eurasian Continental Bridge planned by the United Nations Development Program, and is also an important carrier area of the national Changchun-Jilin-Tumen strategy of "March Westward", a radiation-driven area of the Harbin-Changchun urban agglomeration, and an important node city of China-Mongolia-Russia Economic Corridor of the "Belt and Road" strategy. There are 4 trunk railways, namely, Changchun-Baicheng, Siping-Qiqihar, Baicheng-Aershan and Tongliao-Ranghulu, and Changchun-Baicheng Express Railway reaches Changchun, the provincial capital, in 2 hours and 38 minutes at the fastest; National Highway G302 Huichun-Aershan Line, National Highway G231 Nenjiang-Shuangliao line and 13 provincial highways such as Provincial Highway S211 Zhatu line connect the whole territory, and Hunchun-Ulanhot, Shuangliao-Nenjiang and Tieli-Horqin Expressways are intersected; Daan Port along the Nenjiang River can be directly connected to the Burley Quay in Russia, and is the only waterway for direct trade between the province and the Russian Far East; Baicheng Chang'an Airport has opened the routes to Beijing, Shanghai, Tianjin, Shijiazhuang, Qingdao, Dalian, etc., building an efficient, convenient and optimized transportation network.

Taobei District is located in the east of Baicheng City, with convenient transportation and accessible highways and railways. There are Hunwu and Nendan expressways passing through the area; it is 1.5 kilometers away from the railway station and 20 kilometers away from Baicheng Chang'an Airport, with direct flight to Beijing, Tianjin and other places.

1.2 Contents and scale of project construction

1.2.1 Construction scale

After the completion of the project, there will be an annual output of 10,000 red and blue light therapy instruments, 15,000 dual-pulse lasers and 10,000 diode-pumped lasers.

1.2.2 Construction content

The project covers an area of 40,000 square meters, with the production line equipment purchased, and production workshops, raw material warehouses, finished product warehouses, office buildings and other facilities constructed.

1.3 Total investment of the project and capital raising

1.3.1Total investment of the project

The total investment of the project is 300 million yuan, including the construction investment of 240 million yuan, and the current funds of 60 million yuan.

1.3.2 Capital raising

Self-raised by the enterprise

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 330 million yuan, its profit will be 50 million yuan, its investment payback period will be 8 years (after the tax, including the construction period of 2 years), and its investment profit rate will be 16.67%.

Note: "10 thousand yuan" in the table is in RMB.

1.4.2 Social evaluation

With the advancement of China's medical reform, the upgrading of residents' consumption and the improvement of quality of life, the domestic medical market has a stronger demand for high-quality laser medical devices. The construction of the project will help accelerate the localization process of laser medical devices in China, reduce medical costs, improve the diagnosis and treatment level of domestic medical institutions, and meet the diverse needs of more patients.

1.5 Cooperative way

Joint venture, cooperation and sole proprietorship, other methods can be discussed in person.

1.6 What to be invested by the foreign party

Funds, other methods can be discussed in person.

1.7 Construction site of the project

Taobei District, Baicheng City.

1.8 Progress of the project

Attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Taobei District Project Service Center

Address: 14 Youth South Street, Taobei District, Baicheng City

2.2 Overview

Taobei District is located in the northwest of Jilin Province, at the west end of the Songnen Plain, between 122°19"-123°10" east longitude and 45°2'4"-45°55'2" north latitude. It is located on the alluvial fan of Taoer River in the Songnen Plain at the junction of Jilin Province, Heilongjiang Province and Inner Mongolia Autonomous Region, connected to Da'an City and Zhentai County in the east and northeast, and bounded by Taoer River in Taonan City in the west, south and northwest, and adjacent to the Horqin Right Wing Front Banner of Inner Mongolia Autonomous Region in the north. Taobei District covers an area of 2,576.4 square kilometers, and has jurisdiction over 148 administrative villages in 12 townships, 41 communities in 7 sub-district offices, 1 farm, 1 economic development zone and 1 boutique animal husbandry development zone.

Jilin Taobei Economic Development Zone was established on October 10, 2010, and located in the northeast of Baicheng City, with an area of 447.86 hectares, and was promoted to a provincial-level development zone in 2021. In order to give full play to comparative advantages, the Taobei District Party Committee and the District Government have established the “two-wheel drive” development strategy of the Taobei Economic Development Zone, which takes industrialization and urbanization as the driving force for development and promotes the urbanization process with the development of emerging industries, and plans three functional sectors of "new industrial park, modern trade and logistics park, and ecological commercial and residential park". It has formulated an industrial development plan focusing on the development of machinery manufacturing and processing, intensive processing of agricultural and sideline products, biomedical and chemical industries, emerging materials and modern service industries. Based on the principle of “one district with multiple parks, and dislocation development”, it has planned “one demonstration park” - a national-level clean energy consumption demonstration park; “three industrial bases” - precision forging industry base, wear-resistant material production base in northern China, and small and medium-sized enterprise business incubation base; “six industrial parks” - Sino-Canadian Oatmeal International Industrial Park, Dadongyang Science and Technology Industrial Park, Biochemical Circular Economy Industrial Park, Medical Device Science and Technology Industrial Park, Modern Trade and Logistics Park, and Smart Ecological Commercial and Residential Park.

In accordance with the principles of "high starting point, high-standard planning, high-quality construction, high-efficiency management" and rolling development, the five-phase development plan of the new industrial park has been formulated. The development area of the first and second phases has reached 10 square kilometers, reaching the provincial-level development zone standard of “seven connections and one leveling”, and the carrying capacity of the project has reached more than 20 billion yuan. At the end of Phase V development, the development area will reach 33 square kilometers, accounting for more than 50% of the area of the Taobei Economic Development Zone.

Based on the principle of “focusing on, favoring, supporting and stabilizing business”, Taobei Economic Development Zone strives to build an investment platform with “the optimal policy, the best environment, the highest efficiency, and the lowest cost”, and strives to build the most competitive development zone in western Jilin.

2.3 Contact method

Postal code: 137000

Contact Person: Chu Jianghua and Zhai Jiayu

Tel: +86-436-3247740

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

Contact person: Xu Zengchun

Tel: +86-436-3203010  +86-13894682986

Fax: +86-436-3224565

E-mail: bcjhj07@126.com