1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

General Aviation refers to civil aviation activities using civil aircraft other than public air transportation. It includes flight operations in industries such as industry, agriculture, forestry, fishery, and construction, as well as flight activities in fields such as medical and health, emergency rescue, meteorological exploration, ocean monitoring, scientific experiments, education and training, culture, and sports. General Aviation is characterized by its flexibility, speed, and high efficiency.

This project is located in Wangfu Industrial Park, Qianguo County. It is of great significance to economic development and industrial upgrading. It can promote the development of the industrial chain, create jobs, attract investment, drive technological innovation, meet diverse service needs, make effective use of resources, and achieve sustainable development.

1.1.2 Market prospect

(1) Status analysis of general aviation industry

According to Article 145 of the Civil Aviation Law of the People's Republic of China (2018 Revised Edition), General Aviation involves various civil aviation activities using civil aircraft other than public air transportation. These activities include flight operations in industry, agriculture, forestry, fishery, and construction, as well as flight missions in fields such as medical and health, emergency rescue, meteorological exploration, ocean monitoring, scientific experiments, education and training, culture, and sports.

Looking at the general aviation industry chain, the upstream mainly involves the supply of raw materials and core components. Besides basic materials like metals and fuels, core raw materials also include the provision of key components such as engines and wings, as well as the supply of various software and hardware, providing resources and technical support for the manufacturing of general aviation aircraft. The mid-stream includes the manufacturing of complete aircraft and general aviation operations, covering the construction of general aviation airports, services, personnel training, and aircraft maintenance. The downstream has a wide range of applications. As a production tool or consumer product, general aviation serves various industries of the national economy. Its main applications include five categories: business charters, short-haul flights, aviation operations, flight training, and recreational sports.

The history of General Aviation in China can be traced back to 1912. At that time, Feng Ru, a pioneer in the aviation field, conducted a flight demonstration with a self-made aircraft in Yantang, Guangzhou, marking the beginning of China's aviation industry. In June 1931, the Zhejiang Provincial Bureau of Water Conservancy rented a Messerschmitt M18-D aircraft from the German Lufthansa Airlines and carried out aerial photography on the Puyang River, a tributary of the Qiantang River, marking the first attempt at commercial General Aviation activities in China.

In recent years, the integration of the Chinese General Aviation market with the international market has deepened, and the domestic market has entered a new era of industrial development. In March 2024, the release of the "Implementation Plan for the Innovative Application of General Aviation Equipment (2024-2030)" aims to drive the low-altitude economy to reach a market scale of one trillion yuan by 2030.

From 2019 to 2023, the number of traditional general aviation enterprises in China has been increasing continuously. According to data released by the State Council Information Office, by the end of 2023, the number of general aviation enterprises in China reached 689, an increase of 28 compared to the end of 2022.

During the period from 2019 to 2023, the number of registered general aviation aircraft in China showed an overall upward trend. According to data released by the State Council Information Office, by 2023, the number of registered general aviation aircraft in China was 3,173.

During the period from 2019 to 2023, the general aviation operation volume in China showed an overall growth trend. According to data released by the State Council Information Office, in 2023, the annual operation flight hours of general aviation aircraft in China reached 1.357 million hours.

According to data released by CITIC Offshore Helicopter Co., Ltd., in 2023, the company's general aviation operation volume was approximately 50,000 hours, and the corresponding business revenue was 1.93 billion yuan. It is preliminarily estimated that the market size of China's general aviation operation market in 2023 was approximately 52.4 billion yuan.

In summary, the General Aviation industry in China has achieved remarkable development in recent years. Not only has there been an increase in quantity, but also a positive upward trend in market size and operation volume. With the implementation of the "Implementation Plan for the Innovative Application of General Aviation Equipment (2024-2030)", it is expected that in the next few years, the General Aviation industry in China will have a broader development space and more business opportunities. Looking to the future, the General Aviation industry is expected to become an important force in promoting the high-quality development of China's economy and providing more diversified and convenient aviation services to society.

(2) Analysis of the prospect of the general aviation industry

Driven by a series of policy plans at the central and local levels to promote the development of the General Aviation industry, the industry has shown a good overall development trend in the past five years and has huge development potential. Looking to the future, the General Aviation industry in China will present the following three development trends:

Technological innovation leading development: With the continuous development of technologies such as artificial intelligence, the Internet of Things, and big data, the General Aviation industry will witness more technological innovations and industrial upgrades. These new technologies will boost the performance, efficiency, and safety of general aviation aircraft, injecting new impetus into the development of the industry.

Sustained expansion of market demand: With the acceleration of urbanization and the improvement of people's living standards, the demand for the General Aviation industry will continue to expand. Especially in fields such as agriculture, emergency rescue, and cultural tourism, the application of general aviation aircraft will become more widespread, providing a broad market space for the development of the industry.

Continuous optimization of the policy environment: The Chinese government attaches great importance to the development of General Aviation and the low-altitude economy and has introduced a series of policies and measures to provide strong policy support for the development of the industry. In the future, the policy environment will continue to be optimized, creating a more favorable environment for the development of the general aviation industry.

According to data released by the Civil Aviation Administration of China, the average annual growth rate of the market size of the low-altitude economy industry in China from 2024 to 2030 is 22%. The General Aviation industry is one of the main forms of the low-altitude economy. As a whole, it will benefit from the national low-altitude economic development strategy. Conservatively estimated, the average annual growth rate of the market size of China's general aviation operation market from 2024 to 2029 is 8%, and the market size is expected to reach 83.2 billion yuan by 2029.

With the continuous increase in consumers' demand for transportation, logistics and distribution, and aerial sightseeing, the General Aviation industry will face more development opportunities. Especially with the improvement of people's living standards and the transformation of consumption concepts, consumers' demand for high-quality, convenient, and safe General Aviation services will be more exuberant.

The development of the General Aviation industry requires the collaborative cooperation of all parties in the industrial chain. In the future, upstream and downstream enterprises in the industrial chain will cooperate more closely to jointly promote technological innovation and industrial upgrading, injecting new vitality into the development of the industry.

1.1.3 Advantageous conditions of project construction

(1) Policy advantage

The Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration jointly issued the "Implementation Plan for the Innovative Application of General Aviation Equipment (2024-2030)", proposing that by 2027, China's general aviation equipment supply capacity and industrial innovation capacity will be significantly enhanced, a modern general aviation basic support system will be basically established, an efficiently integrated industrial ecosystem will be initially formed, and a general aviation public service equipment system will be basically improved. By 2030, general aviation equipment will be fully integrated into all fields of people's production and life, becoming a powerful driving force for the growth of the low-altitude economy, with a market scale of one trillion yuan.

Jilin Province has issued the "General Airport Layout Plan of Jilin Province (2016-2030)", proposing that by 2030, all county-level administrative units in the province will be able to enjoy general aviation services. Based on the regional development positioning, resource endowment, and industrial base of the eastern, central, and western parts of the province, it will build general airport clusters in the central, eastern, and western regions that complement the functions of transportation and general airports and provide joint support, and create a short-haul transportation route network in the Changchun-Jilin-Tumen region.

(2) Location advantage

Qianguo County is located at the junction of Jilin, Heilongjiang, and Inner Mongolia, and is an important transportation hub and logistics center connecting the three northeastern provinces and 8 cities and 14 counties in Inner Mongolia Autonomous Region. The Changchun-Baicheng Railway runs through the whole county from north to south. Ulanhot-Tumen, Mingshui-Shenyang, and Kaifang national and provincial trunk highways intersect with rural roads, providing direct access to cities such as Changchun, Baicheng, Dalian, Qiqihar, and Ulanhot.

(3) Talent advantage

Songyuan City is a blue-collar training base in the province. In addition, more than 30 well-known domestic and provincial universities, such as Jilin University, Changchun University of Technology, Northeast Normal University, Jilin Agricultural University, Changchun University of Science and Technology, Changchun University, and Changchun Institute of Technology, produce a large number of professional and management talents every year, providing a large amount of fresh blood for this project.

1.2 Contents and scale of project construction

The project is planned to cover an area of 500,000m². The General Aviation Industrial Park is planned into three functional areas.

(1) Aviation manufacturing area: General aircraft and aircraft parts manufacturing will be conducted. In the early stage, by vigorously introducing well-known domestic and foreign aircraft models, as well as industries such as aircraft engine manufacturing, aircraft parts manufacturing, and airborne equipment, and aircraft final assembly, a complete industrial chain will be formed. Gradually, it will be built into a general aviation manufacturing industry cluster integrating aircraft final assembly, parts manufacturing, and system research and development, forming a 100-billion-yuan-scale industry, injecting new impetus into the industrial structure adjustment of Songyuan City and even Jilin Province.

(2) General aviation service area: Main construction contents contain an aviation club, an FBO (Fixed-Base Operator) base, a flight test center, a general aviation airport, and ancillary facilities, including pilot training, aircraft flight tests, entertainment experience flights, air tourism, geological exploration, aircraft sales and leasing, as well as flight support, aircraft maintenance, trusteeship, refueling, and other comprehensive supporting services for general aviation operations, private flights, and business flights. Domestic and international general aviation culture, exhibition, and academic exchange activities will also be widely carried out.

(3) Comprehensive support area: Main construction contents contain an aviation resort hotel, executive apartments, high-end member apartments, a community hospital, and a comprehensive supermarket, thus providing corresponding commercial, medical, residential, entertainment, and other comprehensive supporting services for the park.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 2 billion yuan, including the construction investment of 1.6 billion yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project is completed, its annual sales revenue will be 1.25786 billion yuan, its profit will be 377.36 million yuan, its investment payback period will be 7.3 years (after the tax, including the construction period of 2 years), and its return on investment will be 18.87%.

1.4.2 Social evaluation

General aviation has a significant driving effect on the industry, with an input-output ratio of 1:10 and an employment-driving ratio of 1:12. This project will make full use of various financial tools and capital market channels to promote the infrastructure construction and personnel training of the general aviation industry, introduce leading general aviation technologies at home and abroad, and cultivate the growth of high-quality general aviation enterprises. In addition, it will accelerate the coordinated development of the entire general aviation industry chain, and promote the development of the general aviation industry in Songyuan City, Jilin Province, and even the whole of China. 

1.5 Cooperative way

Joint venture, other methods can be discussed in person

1.6 What to be invested by the foreign party

Capital, other methods can be discussed in person

1.7 Construction site of the project

Wangfu Industrial Park of Qianguo County

1.8 Progress of the project

The project plan has been prepare.

2. Introduction to the Partner

2.1 Basic information

Name: Investment Attraction Service Center of Qianguo County

Address: No. 995, Wulan Avenue, Qianguo County, Songyuan City

2.2 Overview

Qianguo County, subordinate to Songyuan City, Jilin Province, is located in the northwest of Jilin Province and the south of the Songnen Plain. It is the only Mongolian autonomous county in Jilin Province, covering an area of 6,980 square kilometers with a total population of 600,000. The county seat is in the same city as Songyuan City. Five central-directly-affiliated enterprises are located within its territory, including PetroChina Northeast Oil and Gas Branch, Sinopec Northeast Oil and Gas Branch, Changshan Chemical Co., Ltd. of Sinochem Group, Changshan Thermal Power Plant of China Datang Corporation, and Changchun Oil and Gas Transportation Branch of PetroChina Pipeline.

It has an excellent ecological environment. Qianguo County is home to Chagan Lake, one of the top ten freshwater lakes in China. The Songhua River and the Nen River flow through the county for 75 kilometers. The wetland area is 770,000 mu, and the forest land area is 976,000 mu, with a forest coverage rate of 11.4%. Qianguo County has the typical regional characteristics of grassland-lake-wetland in western Jilin Province. It is one of the top 100 counties for afforestation in China and an ecological construction demonstration county in Jilin Province.

The county is rich in mineral resources. Qianguo County is extremely rich in mineral resources. The proven oil reserves are 320 million tons, the natural gas reserves are 100 billion cubic meters, and the reserves of oil shale, bentonite, and purple sand pottery are quite considerable.

It has a prominent agricultural advantage. Qianguo County is located in the heart of the golden corn belt. The Qianguo Irrigation District, one of the large-scale irrigation areas in China, is within its territory. It is a national commodity grain base county, a national agricultural standardization demonstration county, and a national rice standardization production demonstration area. The county's cultivated land area is 4.83 million mu, and its grain output has always ranked among the top ten major grain-producing counties in China. The county has a long-standing history of animal husbandry production with unique natural conditions. It produces 120,000 tons of high-quality forage annually and is a national-level grassland construction base county.

2.3 Contact method

2.3.1 Contact method of project cooperator:

Contact unit: Investment Attraction Service Center of Qianguo County 

Contact person: Li Xiaochun  

Tel: +86-13351556769  +86-438-5098098

E-mail: zsjxmk2209905@163.com

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

Contact unit: Investment Attraction Service Center of Bureau of Commerce of Songyuan City

Contact person: Yu Lili

Tel: +86-18004388787