1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Cold chain logistics refers to a systematic engineering process in which goods are kept in a specified low-temperature environment throughout production, storage, transportation, sales, and consumption to ensure the product quality and reduce losses.

The project relies on the resource advantages of agricultural products in Jilin City and the market advantages of Singapore Leader Environmental Technologies Ltd. to build agricultural product processing and cold chain logistics facilities, carry out cross-border food trade, and establish an international intelligent logistics management system.

1.1.2 Market prospect

1. Development status of the cold chain logistics industry

(1) Total amount of cold chain logistics

With the continuous growth of market demand, support from government policies, continuous improvement of cold chain infrastructure, and driven by technological progress and innovation, the total amount of cold chain logistics in China continues to grow. The total amount of cold chain logistics in China reached 8.90 trillion yuan in 2023, an increase of 40 billion yuan from 2022 and a year-on-year growth of 4.6%. The total amount of cold chain logistics in China increased to 9.26 trillion yuan by 2024.

Figure 1 The Total Amount of China’s Cold Chain Logistics from 2019 to 2024

(2) Scale of the cold chain logistics market

In recent years, the growing demand for people’s daily lives and the development of new formats such as imported cold chain products, fresh e-commerce, community group buying, live streaming e-commerce, and pre packaged meals have driven the continuous growth of China’s cold chain logistics market. The scale of China’s cold chain logistics market reached 517 billion yuan in 2023, a year-on-year increase of 5.2%. The scale of China’s cold chain logistics market reached 536.1 billion yuan by 2024, a year-on-year increase of 3.7%.

Figure 2 China’s Cold Chain Logistics Market Size from 2019 to 2024

(3) Cold chain logistics demand

Cold chain logistics connects the production and consumption ends of modern agriculture, food processing, pharmaceutical products, etc., and is an important support for extending the industrial chain, building the supply chain, and enhancing the value chain. In recent years, with the support of policies and the continuous development of downstream industries, the total demand for cold chain logistics in China has continued to expand. In 2023, the overall cold chain logistics market in China was under pressure and the demand was gradually stabilizing and recovering. The total demand for cold chain logistics was about 350 million tons, a year-on-year increase of 6.1%. The total demand for cold chain logistics in China reached 365 million tons by 2024.

Figure 3 The Cold Chain Logistics Demand in China from 2019 to 2024

(4) Number of refrigerating trucks in use

Thanks to the increasing demand for cold chain logistics and the promotion and application of new energy refrigerating truck technology, the number of refrigerating trucks in China has shown a steady growth trend. In 2023, the total number of refrigerating trucks in the national market reached 432,000, an increase of 49,700 from the previous year and a year-on-year increase of 12.9%. The number of refrigerating trucks in China reached 495,000 in 2024 and a year-on-year increase of 14.58%.

Figure 4 China’s Refrigerating Trucks in Use from 2019 to 2024

(5) Total capacity of cold storage

Cold storage can be regarded as the “base” of cold chain logistics. The construction and development of cold storage has become a top priority for the national backbone cold chain logistics base.The total amount of cold storage in China was about 228 million cubic meters in 2023, an increase of 18 million cubic meters from the previous year and an increase of 8.3% year-on-year. The total capacity of cold storage in China reached 253 million cubic meters in 2024 and an increase of 10.96% year-on-year.

Figure 5 China’s Storage Capacity from 2019 to 2024

(6) Top 100 cold chain logistics enterprises in China

In recent years, China’s cold chain logistics enterprises have accelerated their growth, with increasing market concentration. A number of leading enterprises have formed in the fields of cold chain warehousing, transportation, distribution, and equipment manufacturing, continuously extending supply chain service functions such as procurement, distribution, and information. Their resource integration capabilities and market competitiveness have significantly improved. From the perspective of enterprise ranking, the 2022 China Cold Chain logistics Top 100 Enterprises List shows that among the top 100 cold chain logistics enterprises in China, SF Express continues to top the list, Yunlychee ranks second, and JD logistics ranks third. Rongqing logistics, Shuanghui logistics, Zhengming Modern logistics, Chuansheng Supply Chain, Vanke logistics, Shanghai Guangming Lingxian logistics, and Nanjing Weigang Dairy Co., Ltd. ranked 4-10 on the list, respectively .

2. Development prospects

(1) The internationalized development trend of the cold chain logistics industry

With the deepening of global economic integration, the internationalization trend of the cold chain logistics industry is becoming increasingly evident. China’s cold chain logistics enterprises need to actively respond to international competition, expand international markets, and enhance the overall level of the industry.

1) International market demand growth

With the continuous improvement of global consumption level and the increasing international trade in food, medicine and other fields, the demand for cold chain logistics in the international market is constantly increasing. China’s cold chain logistics companies need to keep up with changes in international market demand, actively expand into international markets, and participate in international competition.

2) Strengthening international cooperation and exchanges

The international development of the cold chain logistics industry requires strengthening international cooperation and exchanges. China’s cold chain logistics enterprises need to actively cooperate with international advanced enterprises, introduce advanced technology and management experience, and improve the overall level of the industry. At the same time, we should actively participate in international cold chain logistics industry organizations, strengthen communication and cooperation with international peers, and jointly promote the healthy development of the cold chain logistics industry.

3) Enhancing international operational capabilities

Expanding into international markets requires companies to possess international operational capabilities. China’s cold chain logistics enterprises need to strengthen their own strength construction, improve service quality and management level to adapt to the competitive demands of the international market. At the same time, it is necessary to understand the laws, regulations, and cultural customs of the international market, strengthen risk prevention and response capabilities, and ensure the stable development of enterprises in the international market.

(2) The scale of the cold chain logistics market will continue to grow.

The report shows that with the improvement of people’s awareness of food safety and the increasing demand for online consumption, as well as the growing demand for convenient purchasing and fast delivery, the scale of the cold chain logistics market in China is steadily expanding. It is expected that the scale of China’s cold chain logistics market will have reached 868.6 billion yuan by 2025.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

The 14th Five-Year Plan for the Development of Modern logistics proposes to connect the main framework of the national comprehensive three-dimensional transportation network by 2025, complete the layout and construction of about 120 national logistics hubs and about 100 national backbone cold chain logistics bases, and basically form a backbone logistics infrastructure network with national logistics hubs as the core.

The Special Action Plan for High-quality Development of Commercial logistics (2021-2025) proposes to strengthen the planning of cold chain logistics, layout and construct a number of national backbone cold chain logistics bases, support the construction and renovation of large-scale agricultural product wholesale markets, import and export ports, and promote the application of new cold chain facilities and equipment such as mobile cold storage, constant temperature refrigerating trucks, and refrigerating containers. Improve the equipment of end of pipe cold chain facilities and enhance the network coverage level of urban and rural cold chain facilities. Encourage eligible enterprises to develop intelligent monitoring and traceability platforms for cold chain logistics, and establish a full process cold chain distribution system.

The Notice on Further Strengthening the Construction of Cold Chain Facilities for Agricultural Product Storage and Preservation proposes to further promote the construction of cold chain facilities for agricultural product storage and preservation, standardize process management, increase policy support, focus on supervision and management, optimize guidance services, and maximize policy benefits.

The Notice on Supporting the Construction of Pilot Cities for Modern Commercial and Trade Circulation System proposes to support the construction and transformation of regional cold chain logistics bases, enhance comprehensive capabilities such as refrigeration, processing, and distribution, connect production, sales, and distribution centers, and connect with national backbone cold chain logistics bases, production cold chain freshness preservation facilities, etc., to facilitate the transportation of industrial products to rural areas and agricultural products to urban areas.

The Guiding Opinions on Cultivating Traditional Advantageous Food Production Areas and Local Characteristic Food Industries propose to strengthen the construction of cold chain logistics facilities for agricultural products such as pre-cooling, storage, and preservation, and fill the gap of the “first kilometer” of food raw materials.

The Notice of the General Office of the People’s Government of Jilin Province on the Policy Measures to Support the High-quality Development of Cold Chain logistics proposes to support eligible regions to apply for the establishment of national and provincial backbone cold chain logistics bases and cold chain logistics distribution centers, and accelerate the filling of the basic, public, and public welfare logistics infrastructure gaps within the cold chain logistics bases. Support the operation entities of cold chain logistics bases or leading cold chain logistics enterprises to integrate and optimize cold chain stock resources, and lay out the construction of cold chain logistics networks for the “first kilometer” of production areas and the “last kilometer” of sales areas. Actively develop multi-modal cold chain logistics, postal express delivery, and air freight, and build a comprehensive three-dimensional cold chain logistics network of public, railway, water, and air transportation.

(2) Resource advantages

Jilin City is located in the “World Golden Corn Belt”, “World Golden Rice Belt”, and “World Golden Milk Source Belt”. It is a national commodity grain base and a major production and distribution area for high-quality rice, corn, and Changbai Mountain natural specialties in Northeast China. It has been named the “Hometown of Chinese Tribute Japonica Rice” by the National Grain Association. By 2023, the total number of beef cattle raised in the city has reached 956800, with a cumulative output of 287500. In the first half of the year, the number of live pigs raised reached 2.487 million, with a total of 1.2014 million pigs sold.

China-Singapore Jilin Food Zone is located at 43 degrees north latitude and is the core area of the world’s “Golden Corn Belt”, “Golden Rice Belt”, and the hometown of soybeans. It is rich in green specialty products such as perilla, ginseng, and fungi.

(3) Industrial advantages

There are more than 20 enterprises engaged in cold chain logistics of agricultural products in Jilin City, with more than 60 cold storage facilities and a total cold storage capacity of 314000 tons. The refrigeration facilities are mainly concentrated in large wholesale markets such as Northeast Asian agricultural product wholesale markets, fruit wholesale markets, and aquatic product wholesale markets, distributed in a point like pattern throughout the city. The city has over 500 refrigerated vehicles with a total carrying capacity of approximately 10000 tons. A group of large-scale water frozen food and dairy product production enterprises, represented by Chunguang Dairy, Guangze Dairy, Fengdi Food, Yuantai Food, etc., have achieved full low-temperature control in raw material acquisition, segmentation and processing, storage and transportation, and terminal sales; A group of commercial chain enterprises represented by Deli Fresh and Dafuyuan Supermarket have built their own fresh agricultural product distribution centers to provide unified distribution of fresh agricultural products for commercial retail stores (supermarkets); A group of large-scale agricultural product wholesale markets, represented by the Northeast Asian Agricultural Product Wholesale Market, have accelerated the construction of controlled atmosphere warehouses and refrigerated preservation warehouses, promoting the rapid rise of high-value agricultural product cold chain logistics represented by off-season and high-end imported fruits and vegetables.

(4) Talent advantages

There are a total of 9 universities stationed in Jilin City. There are nearly 100000 full-time students and about 30000 graduates from higher education institutions every year. There are about 61000 professional and technical talents and 496000 skilled talents in the city, including 144000 high skilled talents.

(5) Location and transportation advantages

Jilin City is located in the hub of  Northeast Asia and the core area of Changchun-Jilin-Tumen, adjacent to Yanbian access to the river to the east, Harbin, Changsha, and Shenyang to the west, Liaoning-Dandong Big Channel to the south, and Sanjiang Plain to the north. The road transportation is convenient, with distances of 64.5 kilometers from Longjia Airport, 117 kilometers from Changchun, 397 kilometers from Shenyang, 355 kilometers from Harbin, 780 kilometers from Dalian Port, and 1020 kilometers from Tianjin Port. It can connect with the Beijing-Tianjin-Hebei region, radiate to Northeast Asia, and has obvious geographical development advantages. The expressway forms a “radiating” road network, while the railway forms a cross-shaped support. It has intercity railways such as Changchun-Hunchun, Changchun-Tumen, Jilin-Shulan, and Shenyang-Jilin, as well as dedicated and connecting lines for railways such as Jiuzhan-Jiangmifeng, Jiuzhan-Qipan, and Jilin West Station-Hadawan. The railway in Jilin City sent 26.706 million tons of freight and received 28.17 million tons of freight.

China-Singapore Jilin Food Zone in Yongji County, Jilin City is located in Chaluhe Town, 50 kilometers west of Changchun City and 50 kilometers east of Jilin City. 25 kilometers away from Longjia Airport, 32 kilometers away from the entrance and exit of Changchun-Jilin Expressway, and 20 kilometers away from the railway station line. 400 kilometers away from Shenyang, 350 kilometers away from Harbin, 350 kilometers away from Hunchun, a 7-hour drive from Dalian Port, a 5-hour drive from Yingkou Port, and a 5-hour drive from Tumen Port.

1.2 Contents and scale of project construction

1.2. Cross-border cold chain logistics park

The cold chain logistics park covers an area of 47454 square meters, with a total construction area of 25132.46 square meters. It includes the logistics equipment area, cold storage, temporary storage room, office building, research and development facilities, scientific research personnel office area, visiting area, catering area, and dormitories, etc.

1.2.2 Production and processing of agricultural products and meat

Renting a 4000㎡ plant building in Phase II of the incubation park for production and processing of agricultural products and meat, constructing the food processing production line and packaging production supporting facilities.

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 500 million yuan, including the construction investment of 400 million yuan and current funds of 100 million yuan.

1.3.2 Capital raising

Self-raising 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 revenue will be 600 million yuan, its profit will be 90 million yuan, its investment payback period will be 8 years (after the tax, including the construction period of 2 years) and its return on investment will be 18%.

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

1.4.2 Social evaluation

After the completion of the project construction, it will provide cold chain services to international food trade enterprises, broaden the “export” path of agricultural and sideline products, form a supply chain industry cluster based on fresh agricultural products, and promote the modernization, informatization, and specialization of the cold chain logistics industry. Meanwhile, cold chain logistics plays an irreplaceable role in ensuring food safety, increasing the added value of agricultural products, and promoting consumption upgrading.

1.5 Cooperative way

Joint venture, cooperation or sole proprietorship, and other methods can be discussed face-to-face.

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed face-to-face.

1.7 Construction site of the project

China-Singapore Jilin Food Zone, Yongji County, Jilin City

1.8 Progress of the project

It is attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Jilin (China-Singapore) Food Zone

Address: Chaluhe Town, Yongji County, Jilin City

2.2 Overview

Jilin City is the second largest city in Jilin Province and the only city in China with the same name as the province. The total area is 27711.4 square kilometers, accounting for 14.8% of the province, of which the urban area is 3774.6 square kilometers. It currently governs one county in Yongji County, four county-level cities in Shulan City, Panshi City, Jiaohe City, and Huadian City, four urban areas in Chuanying District, Changyi District, Longtan District, and Fengman District, one national high-tech industrial development zone, one national economic and technological development zone, one provincial-level sports tourism economic development zone (high-quality development pilot zone for ice and snow economy), and one international cooperation zone (Jilin China-Singapore Food Zone). The registered residence population is 3.996 million, including more than 40 ethnic groups such as Han, Manchu, Korean, Hui and Mongolian.

China-Singapore Jilin Food Zone is located in Jilin City, Jilin Province. It is an important cooperation project between China and Singapore in the fields of agriculture and food safety. It is an important node for the development and opening up of the country’s long-term development plan, and an important platform for the integration and development of the primary, secondary, and tertiary industries in Jilin Province, expanding opening-up to the outside world, and strengthening international cooperation. The current planned area of China-Singapore Jilin Food Zone is 240 square kilometers, of which the core area - China-Singapore Food City has a planned area of 57 square kilometers. Key construction of six functional areas including food processing zone, international logistics zone, modern commercial and residential zone, scientific research service zone, leisure resort zone, and landscape green area; the planned new cooperation area outside the food zone covers an area of 1450 square kilometers, where modern agriculture experiments and demonstrations will be carried out. Based on the absence of designated disease areas, the zone will be connected with core industries to promote the integrated development of the primary, secondary, and tertiary industries.

2.3 Contact method

Postal code: 132000

Contact person: Meng Xinyun

Tel: +86-13019270177

E-mail: emma8631@163.com

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

Contact unit: Investment Promotion Service Center of Jilin Cooperation and Exchange Office

Contact person: Wang Yanchao

Tel: +86-15843218881