1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The new energy vehicle industry has become an important part of China's automotive industry, and in line with the strategic requirements of high-efficiency and energy-saving development. New energy vehicles will continue to maintain a high-speed development trend in the future. Due to their unique advantages such as corrosion resistance and easy processing, automotive aluminum plates and aluminum foils make vehicles better adapt to the needs of lightweight and energy efficiency, and become an important part of new energy vehicles.

1.1.2 Market prospect

In recent years, the automotive industry has maintained a rapid and stable development trend, with explosive growth in the variety and production of new energy vehicles. According to the new energy vehicle industry development plan, by 2025, new energy vehicle sales will reach 20% of the total new vehicle sales. The proportion of aluminum materials used in the new energy vehicle industry continues to rise, and there is a broad market space and development prospects.

The explosive growth in production, sales and export of new energy vehicles has rapidly boosted the demand for aluminum rolled materials. According to the Economic Operation of the Automotive industry in December 2023 released by the China Association of Automobile Manufacturers, the cumulative sales of automobiles in 2023 were 30.094 million, a year-on-year increase of 12%, of which the sales of new energy vehicles were 9.495 million, a year-on-year increase of 37.9%. In 2023, 1.203 million new energy vehicles were exported, with a year-on-year growth of 77.6%. In the first 10 months of 2024, the cumulative sales of new energy vehicles in China reached 8.692 million, a year-on-year increase of 38.3%. Among them, the sales volume of new energy commercial vehicles was 405000, an increase of 32.5%. In addition, the annual production and sales of new energy vehicles in China exceeded 10 million for the first time in less than 11 months.

According to the New Energy Vehicle Industry Development Plan 2021-2035) issued by the General Office of the State Council, by 2025, China's new energy vehicle sales will reach about 20% of the total new vehicle sales. The demand for new energy vehicles continues to rise.

In order to comply with the "dual carbon" development strategy, lightweight and efficient energy consumption of automobiles have become important trends. Due to their light weight, low cost and simple recycling, aluminum materials are increasingly widely used in the automotive industry, and the market penetration rate is increasing rapidly.

Relevant data show that the national monthly production of aluminum materials in China in December 2023 increased compared with the same period last year. In December 2023, the national production of aluminum materials was 5.946 million tons, a year-on-year increase of 14.0%. From January to December 2023, the national production of aluminum materials was 63.034 million tons, a year-on-year increase of 5.7%.

According to the Assessment Report on the Aluminum Consumption in China's Automotive Industry (2016-2030) released by the Aluminum Association of China, China's new energy vehicle production is expected to reach 11.6 million in 2030, with a compound annual growth rate of 21.40%, and it is worth noting that the production of battery electric vehicles (BEVs) is expected to increase by 23% in the same period, from 770000 in 2018 to 9.2 million in 2030. The report predicts that the rapid development of the industry is likely to drive strong growth in the aluminum market, with the proportion of aluminum used in China's new energy vehicle industry expected to rise from the current 3.8% of total aluminum consumption to 29.4% by 2030.

According to the economic operation of the automotive industry in 2024, the current production and sales of new energy vehicles have far exceeded the expected value, and the development prospect is optimistic, which provides a broad market space and development prospect for aluminum materials widely used in new energy vehicles.

1.1.3 Technical analysis

It can cooperate with Zhongwang Group, Mingtai Aluminum, Lizhong Group, Midas Aluminum and other brands, through the introduction of advanced aluminum processing equipment and production process, to build high-end aluminum rolled material production lines, control the material pressing and molding process, improve the processing accuracy, and make it better adapt to the needs of new energy vehicles.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Opinions of Jilin Provincial People's Government on the Implementation of the "Step up" Project of the Automotive industry Cluster proposes to take the Changchun automobile cluster as the lead, promote regional coordination and linkage, accelerate the coordinated development and comprehensive improvement of the "trinity" of vehicle, parts and aftermarket, to build a trillion-level, world-class automobile advanced manufacturing cluster, and to build a strong automobile province and a strong manufacturing province.

The New Energy Vehicle Industry Development Plan (2021-2035) points out that it is necessary to improve the public service capacity of the new energy vehicle industry, and to enhance the measurement, testing, performance evaluation and certification capabilities of the vehicle and key components. At the same time, it is necessary to improve the safety standards and regulations of new energy vehicles, parts, maintenance testing, charging and battery swap, and to strengthen the supervision and management of production safety and the safety recall management of new energy vehicles.

(2) Industrial advantages

Jilin Province is a major province in China's automotive industry, and the core of its automotive industry is located in Changchun, the capital of the province, where FAW Group, the first vehicle manufacturer in New China, is located, and Volkswagen, Audi, Toyota, and other well-known automobile manufacturers have joint ventures with FAW Group here. At the time of profound changes in the global automotive industry, FAW Group and Changchun are accelerating the transformation, the construction of "Changchun International Automobile City" has become a consensus between the two, and the goal is to build a world-class automobile and parts research and development, manufacturing and after-market service base, and to create a trillion-level automotive industry.

(3) Location advantages

As an important node city in Northeast China, Changchun has superior geographical location and transportation conditions, undertakes the important mission of regional economic development and strategic layout, and is an important transportation hub in the country. Changchun has well-developed transportation networks such as railroads, highways and airways, connecting major cities in the country, and providing convenient transportation conditions for the economic development of Changchun. Changchun's transportation advantages make it an important logistics center in Northeast China, and also provide important support for it to become a central city in Northeast China.

Changchun has a well-developed three-dimensional transportation network. The Beijing-Harbin Highway and Beijing-Harbin Expressway from Beijing to Harbin via Shenyang and Changchun constitute the cross-shaped highway transportation system of Xinglong Comprehensive Bonded Zone; the Beijing-Harbin Railway from Beijing to Harbin connects the north and south, and the Changchun-Jilin-Tumen Railway from Arxan in Inner Mongolia to Tumen connects east and west. Harbin-Dalian high-speed railway from Harbin to Dalian integrates Changchun and Dalian into the one-hour economic circle; through the airport road, it takes 10 minutes to Changchun Longjia International Airport, and it can reach both domestic and international destinations through 70 domestic and 16 international routes; it is only 4 to 6 hours' drive away from seaports such as Dalian, Dandong and Yingkou, and has comprehensive transportation advantages of railroads, highways and airways.

(4) Talent advantages

Changchun City is a well-known high-intelligence intensive area in China. More than a dozen key universities such as Jilin University, Northeast Normal University and Changchun University of Science and Technology are located in Changchun City. Moreover, it has the Changchun Branch of Chinese Academy of Sciences, Changchun Institute of Optics, Fine Mechanics and Physics, Changchun Institute of Applied Chemistry and other national and provincial (ministerial) scientific research institutions, as well as design institutes, computing and testing centers and a number of national key open laboratories in Changchun. Changchun City has sufficient human resources and price advantages. Jilin University, Northeast Normal University, Changchun University of Traditional Chinese Medicine, Changchun Institute of Optics, Fine Mechanics and Physics, Changchun Institute of Applied Chemistry and other universities and scientific research institutions can provide senior management personnel and technicians for the implementation of the project.

1.2 Contents and scale of project construction

1.2.1 Construction scale

The product scale of the project is tentatively set at 5000 tons/year.

1.2.2 Contents of project construction

Standardized workshops and supporting facilities are mainly built in the project to produce aluminum plates and aluminum foils for new energy vehicles, and the project covers an area of 25000 square meters.

1.3. Total investment of the project and capital raising

The total investment of the project is 100 million yuan, including the construction investment of 80 million yuan.

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 58.6 million yuan, its profit will be 19.9 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its investment profit rate will be 20%.

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

1.4.2 Social evaluation

Energy conservation and emission reduction: the wide application of aluminum plates and aluminum foils for new energy vehicles helps to reduce the weight of vehicles, thereby reducing fuel consumption and carbon emissions. The density of aluminum alloy is about one-third of that of steel, and the use of aluminum alloy materials can significantly reduce the weight of automobiles. For every 100 kg of weight reduction in fuel vehicles, fuel consumption can be reduced by 6% to 8%, and for new energy vehicles, mileage can be increased by 6% to 8%. In addition, aluminum alloy has good recyclability, which helps to recycle resources and reduces the impact on the environment.

Environmental protection: aluminum alloy materials have less impact on the environment during production and use. The surface of aluminum alloy is prone to form a dense oxide film, which has good corrosion resistance, and reduces the frequency of maintenance and replacement, thus reducing the impact on the environment. In addition, the aluminum alloy materials are easy to recycle and reuse, meeting the requirements of sustainable development.

Improving vehicle performance: the use of aluminum alloy materials can improve the power performance and safety of automobiles. The lightweight characteristics of aluminum alloy materials can reduce the overall weight of the vehicle, thereby improving acceleration performance, shortening the braking distance, and reducing fuel consumption and emissions. At the same time, the strength and corrosion resistance of aluminum alloy also help to extend the service life of vehicles.

Promoting industrial upgrading: the rapid development of the new energy vehicle industry has promoted the upgrading and transformation of the aluminum industry. With the increasing demand for lightweight materials in new energy vehicles, the aluminum industry continues to carry out technological innovation and product upgrading, improving the overall production efficiency and product quality, and promoting the optimization and development of the entire industrial chain.

In summary, the social benefits of aluminum plates and aluminum foils for new energy vehicles are significant, which not only help to save energy and reduce emissions, improve vehicle performance, but also promote industrial upgrading and sustainable development.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation.

1.6 What to be invested by the foreign party

Funds and other ways can be interviewed.

1.7 Construction site of the project

Kuancheng District

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of the unit

Name: People's Government of Kuancheng District, Changchun City

Address: No. 3366 North Renmin Street, Changchun City

2.2 Unit Overview

Kuancheng District is located in the north of Changchun City and is one of the five main districts in Changchun. Jilin Provincial Party Committee and Provincial Government are located in the district, with a jurisdiction area of about 166 square kilometers, a population of 669000. It has jurisdiction over 10 sub-districts, 1 town and a provincial-level development zone. As an important industrial bearing place and logistics agglomeration area in Changchun, it has a superior industrial foundation and resource endowment, with strong industrial foundation and advantages. Relying on the urban spatial structure and industrial development foundation of Kuancheng District, the development strategy layout of "one core leading", "two districts integration" and "five industries linkage" is constructed.

Kuancheng District gives full play to its location advantages, adheres to the guidance of building a modern core area in the north of Changchun, and promotes the integrated development of the main urban area and the development zone. Focusing on the advantages of location and land resources, the linkage development of the "five industries" of advanced equipment manufacturing, modern service, agricultural and sideline products processing, circular economy and cultural tourism is promoted. Advanced equipment manufacturing industry: highlighting the development of rail transit equipment manufacturing industry and automotive parts processing industry. Rail transit equipment manufacturing industry: led by "two vehicle manufacturers": CRRC Changchun Railway Vehicles Co., Ltd. and FAW Group, to build a highly competitive rail equipment industrial base and automotive parts industry cluster with leading technology, complete supporting facilities and complete chain; modern service industry: highlighting the development of production and living logistics industry and modern commercial and trade industry. Vigorously introducing new service formats such as commodity wholesale, chain operation, warehousing and distribution, high-end business, cultural creativity, and financial services, and building a core area of modern commercial and trade service industry; agricultural and sideline products processing industry: giving full play to the advantages of Kuancheng's proximity to the main producing areas and trading markets of agricultural and sideline products, focusing on cultivating and developing leisure food and green organic food, and building a leading modern agricultural industrialization base in the province; circular economy industry: relying on the national-level resource recycling base, with the recycling of scrapped automobile resources as the core, to develop a composite renewable resource recycling industry chain, and a resource recycling industrial park integrating recycling, dismantling, processing and utilization of renewable resources, to build a resource recycling center based in Changchun and radiating the whole province; cultural tourism industry: focusing on promoting the protection and utilization of historical and cultural blocks and the development of green corridors along the Yitong River. Efforts are made to introduce cultural and creative industries, leisure culture and commercial tourism industries. Promoting the construction of infrastructure and landscape facilities on the west bank of the North Yitong River, and building the green ecological development belt of the Yitong River into a new waterfront area.

During the "14th Five-Year Plan" period, Kuancheng District, as an important carrying place for the "six returns" of FAW and CRRC Changchun Railway Vehicles, shoulders the important mission of upgrading industry and gathering projects in the city.

2.3 Contact method

Contact unit: Kuancheng District Bureau of Commerce

Postal code: 130000

Contact person: Ma Xinyu

Tel: +86-431-89990274

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

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com