Construction Project of Great Health Industrial Park in Xiben Area, Linxiang District, Lincang

Project Name

临沧市临翔区昔本片区大健康产业园建设项目

Construction Project of Great Health Industrial Park in Xiben Area, Linxiang District, Lincang

Project

Industry

Biological Medicine and Great Health Industry

Project Site

Xiben Village, Fengxiang Sub-district, Linxiang District, Lincang City

Project Overview

Based on the ecological environment, the project highlights the health industry and focuses on leisure healthcare, medical healthcare, and vacation-based healthcare. With the aged group, and the tourism healthcare and medical healthcare seekers as the targeted consumers, this project will strive to build into a great heath industrial park that is sustainable, coordinated, ecological, scientific, and innovative and features high-end medical care, health preservation, intelligent community, sightseeing, R&D, and training.

Project Construction Content

Construction Scale: Rehabilitation and care center, wellness resort, medical education and training center, specialized medical center, smart life service center, smart diagnosis center, comprehensive service center, and supporting infrastructure.

Construction Duration: 3-5 years.

Land Area: 1,500 mu.

Supporting Conditions

1. Project Advantages and Opportunities:

Linxiang District is located in the southwest of Yunnan Province, 598 kilometers away from the provincial capital Kunming and 1,035 kilometers away from Kyaukpyu, Myanmar. It is a major link for Yunnan's five exit passageways and the main urban area of Lincang City. It lies at the junction of China, South Asia and Southeast Asia, and in the core area of the intersection of the East Asia Economic Circle, the ASEAN Economic Circle and the South Asia Economic Circle. It is the shortest land route from China to Myanmar.

Highways: Lincang Airport Expressway has been completed and opened to traffic, and Lincang-Yuxi Expressway, Lincang-Qingshuihe Expressway, Linxiang-Shuangjiang Expressway and Yunxian-Lincang Expressway, which are under construction, will form the "interconnecting" arteries of Lincang's two-hour economic circle.

Railways: Dali-Lincang Railway, Lincang-Pu'er Railway, Lincang-Qingshuihe Railway, and the Lincang Railway Station-main urban areas-airport modern urban track are under construction; four projects—Mangshi-Lincang Railway, Kunming (Yuxi)-Lincang High-speed Railway, Nansan-Qingshuihe-Yonghe Port Railway and Yunxian-Baoshan Railway—are under planning. Aviation: Lincang Utility Airport has been completed and put into operation. Shipping: The completion of the downstream Nuozhadu Hydropower Station has made large-scale shipping in the upper reaches of the Lancang River possible, and as a subsidiary project of the hydropower station, Lincang Port (Jinglin Bridge Wharf) will be built on the southeast side of Linxiang District.

2. Associated Industries:

Continuous improvement is taking place in the medical rescue system, disease prevention and control system, health supervision and law enforcement system, and health service capacity and standards. New rural cooperative medical care has achieved new results, delivering tangible benefits to all farmers in advance. Linxiang District has 198 medical institutions at all levels and of various types, 3,754 professional health technicians, and 3,857 hospital beds. It is home to 20 enterprises (pharmaceutical companies) engaging in the plant, process and intensive processing of Chinese herbal medicine, and four enterprises that produce biological medicine. Linxiang District produces characteristic biological medicines and preparations, such as Compound Yunnan Caulis Spatholobi Ointment, Pyrola Ointment, Pain-Killing Powder and Compound Fleece-Flower Root Ointment.

3. Early Preparations:

The project site is supported by a complete set of water, electricity, transportation and Internet facilities.

Investment Estimate and Fund Raising

Investment Estimate: RMB 3 billion.

Fund Raising: Bank loans, self-raised by enterprises, investment attraction, and other ways of financing.

Preferential Policies Applicable

The project can enjoy preferential policies such as the Opinions of the CPC Yunnan Provincial Committee and the People's Government of Yunnan Province on Promoting the Development of Key Industries (YF [2016] No. 11), Opinions of Yunnan Province on Measures to Ramp Up Investment Attraction in Key Industries (YZSWF [2016] No. 10), and Opinions of Linxiang District People's Government of Lincang District on Comprehensively Strengthening and Improving Investment Attraction (LXZF [2018] No. 45).

Market Prediction (Analysis)

The health industry is one of the fastest growing industries in the world. Compared with developed countries, China's health industry is still in its infant stage. In developed countries, the output of the health industry accounts for over 15% of GDP, while in China, it accounts for only 4%-5%. The potential for growth is huge. From an industrial structure point of view, industrial segmentation in the health industry is relatively comprehensive and balanced in developed countries, while in China, and it is disappointingly out of proportion. Except for medical care and medical supplies, other segments are still in the early stage of development, and their great potential is yet to be fully exploited. The health industry is set to prosperously develop at an unstoppable speed in the future.

Profit Model and Preliminary Benefit Analysis

Upon completion, the project will mainly serve medical personnel, patients in need of rehabilitation, holiday makers, educators and researchers. The main business is expected to generate an income of RMB 1.28 billion, and the investment payback period will be about six and a half years long.

Risk Analysis

Investment in the project will be mainly challenged by market risks and management risks. The market monitoring and customer guidance should be enhanced and the management system improved to reduce risks.

Cooperation Pattern

Joint venture, cooperation, sole proprietorship, or other patterns

Contact Information

Contact Authority: Linxiang District Investment Promotion Bureau, Lincang Municipality

Contact Person: Xu Desheng, Wang Jintao

Tel.: 0883-2166339, 18988321709

Fax.: 0883-2166339

E-mail: lxzshz2166339@163.com