Anzhou-A Beautiful Technology City in China

INVESTMENT GUIDE OF ANZHOU INDUSTRIAL ZONE

Part 1: Anzhou Profile

• Introduction

Anzhou District, Mianyang, formerly Anxian County, has a history of more than 1,600 years, first built in the 3rd year of Yonghe Era in the East Jin Dynasty, and in March 2016, Anxian County was repealed and Anzhou District, Mianyang was established, with the approval of the State Council. It is located at the south foot of Longmen Mountains, with an area of 1,181.14km2, including 10 towns and townships, 117 villages and 34 communities, with the total population of 456,000. 

It features the good ecological environment, suitable for living and entreprenureship. It is in the subtropical humid monsoon climate zone, with the warm and humid weather, sufficient rainfalls, four distinct seasons and abundant sunshine. Anzhou, as a new group of the Science and Technology of Mianyang, is accelerating the construction of Hexi Downtown Area, Hedong New Area and Industrial Park Area, an interactive urban development structure of “1 City with 3 Areas”, provided with complete public service facilities, including the schools, hospitals, cultural palace, libraries, etc; and the construction of industrial towns, trading downs and modern agricultural base towns in 10 towns/townships according to the actual conditions. 

It boasts of rich resources and beautiful landscapes. There are lofty mountains, rolling hills, fertile plains and the Anchang River flowing slowly along, as well as rich resources and produces, to allow people here to live a comfortable and wealthy life. There are 29 kinds of mineral resources, 948 fauna species, and 814 flora species, including 77 first and second grade protected animals as the giant panda, golden monkey and others, gingko, dove tress and other national 1st grade rare and endangered plants and more than 100 Chinese medicinal plants as Eucommia, Radix Linderae, etc. There are National Geologic Park for Siliceous Sponge Reef, Qianfo Mountain National Nature Reserve, Luofu Mountain Hot Spring Resort and other famous scenic spots and resorts. 

It is a place with rich historical heritage and outstanding figures. It is the hometown of Li Tiaoyuan, an outstanding scholar in the Qing Dynasty, Sha Ting, a famous modern writer, and Chen Kaimao and Cai Chaoxing, famed as the Huang Jiguang Type combat heroes, and it is the site where the 4th Front Army of the Red Army fought fiercely for more than 70 days at Qianfo Mountain. 

Part 2:Location and Traffic

• Location Overview

Anzhou lies in the middle of the Western Economic Golden Triangle consisting of Chengdu, Chongqing and Xi’an, 100km to Chengdu, 200km to Chongqing and 550km to Xi’an, close to Baoji-Chengdu Railway, Chengdu-Mianyang-Leshan Intercity Railway, Chengdu-Xi’an High-speed Railway, Chengdu-Lanzhou Railway and Mianyang Nanjiao Airport, and connected with Beijing-Kunming Expressway, Mianyang-Chongqing Expressway, Chengdu-Mianyang Expressway (double line), integrated into the 1-hour economic circle of Chengdu and 3-hour economic circle of Chongqing. 

Expressway

• Airport

It is 20km from Anzhou to Mianyang Nanjiao Airport, with 31 air routes to major cities in China, i.e. Beijing, Shanghai, Shenzhen, Lijiang, Nanjing, Hangzhou, Shijiazhuang, Lhasa, Urumqi, Zhengzhou, Harbin, Guangzhou, Guiyang, Xi’an, Haihou, Lanzhou, Hefei, Xichang, Jinan, Dali, Nanning, Sanya, Xining, Shenyang, Kunming, Xiamen, Changsha, Qingdao, Fuzhou and Wuhan.

• Expressway

It is close to 4 high grade highways, i.e. Beijing-Kunming Expressway, Mianyang-Chongqing Expressway, ChengduMianyang Expressway (double line), and No. 108 Sate Highway, and only 10km to Mianyang South and Jinjialin Entry/Exit of Beijing-Kunming Expressway, and High-tech Zone Entry/Exit of Chengdu-Mianyang Expressway (double line) (the double Entry/Exit at Baolin Town).

• Railway

It is close to Baoji-Chengdu Railway, Chengdu-MianyangLeshan Intercity Railway, Chengdu-Xi’an High-speed Railway and Chengdu-Lanzhou Railway, only 10km to the planned new freight station, with the passenger station and the freight station on Chengdu-Lanzhou Railway, and only 90km to Chengdu International Railway Terminal, the starting station of Chengdu-Europe Railway Express and Central Asia Freight Train, integrated in the International Route of “Belt and Road Initiative”.

Part 3: Platforms

• Park profile

Sichuan Mianyang Anzhou Industrial Park is located in the beautiful waterfront Anzhou, Is the provincial industrial development zone, Sichuan Province, "51025" key industrial park, Sichuan Province, intellectual property pilot park, was incorporated into Mianyang National Science and Technology City,  the integration development planning and construction.  December 2015 Mianyang municipal government approved the establishment of Sichuan Mianyang Automobile Industrial Park, and the implementation of the Industrial Park, "two brands, a set of troops," to build the second largest automobile industry base in Sichuan.

At present, the scale of the park enterprises to reach more than 130 households, cars and parts, fine chemical two leading industries and bio-medicine, electronic information, new materials, three traditional advantages of intensive agglomeration cluster development.

• Planing

Mianyan Anzhou Industrial Park, Sichuan operates with the development mode of “1 Park with multiple zones and 1 zone with 1 major industry”. The core area mainly consists of the Automobile Industrial Zone, Electronic and IT Zone, Biomedical Industrial Zone and Civil-Military Integration Industrial Zone, and it is supported with Kaijiang Centralized Industrial Development Zone focusing on the fine chemical industry, New Material Industrial Zone focusing on environmental protection materials, Logistic Industrial Zone for modern logistics and Anzhou District Entrepreneur & Startup Company Service Center for incubating technology-driven small and medium-sized enterprises. Mianyang Automobile Industrial Park has been approved through breaking the existing administrative territories, with a planned area of 50km2, for developing the conventional vehicles, intelligent IOT automobiles, new energy automobiles, special automobiles, autoparts, automobile services, automobile culture, etc, focusing both the development of passenger and commercial vehicles, and traditional and new energy vehicles, to become the wisdom automobile industrial park featuring energy saving, environment protection, safety and intelligence in West China.

• Prospect

Adhere to the "strong industrial zone", accelerate the construction of "2+2+1" advanced manufacturing industry system, and strive to rebuild an Anzhou industry in five years. We will implement the projects of strengthening the chain, extending the chain, supplementing the chain, and building the chain. We will focus on both stock expansion and incremental attraction, promote the production and effectiveness of major projects such as Weima automobile and Zhongnan high tech, and strive to cultivate the 40billion level new energy and intelligent connected automobile industry and the 15billion level smart home industry. We will implement the industrial foundation reconstruction project, prospectively layout the digital economy industry, and vigorously promote the extension of characteristic industries such as medicine, food and new materials to the middle and high-end of the industrial chain and value chain. We will deepen the implementation of the enterprise echelon cultivation plan, support the listing of Ailian technology, aichuang technology, Yinhe chemical, huayida chemical, Maxwell, xinyimei biotechnology and other enterprises, and form a modern industrial cluster of "indomitable" large enterprises and "overwhelming" small and medium-sized enterprises. Strengthen the status of the park as the "main battlefield" of industrial development, accelerate the adjustment of the expansion of Anzhou high tech Zone, expand new space for industrial development, strive to break through 80billion yuan of main business income in 2025, and actively strive to become a national high-tech zone.

Part 4: Industrial Development

• Automobile Industrial

The automobile industry is one of the traditional advantageous industries and leading industries elaborately fostered by Mianyang CCP Committee and Mianyang Government during the new industrialization process, and it has developed the unique advantages of preferable policy support, solid industrial foundation, fast growth of new energy vehicles and abundant technical resources after years of good efforts, Mianyang Automobile Industrial Park approved by Mianyang Government is mainly arranged in Anzhou Industrial Park, with the planned area of 50km2 for the automobile industry .

Now the Park has brought together 3 vehicel manufacturers, namely Brilliance Auto South Base (Huarui Auto and Huaxiang Machinery, Sichuan Yema Mianyang and Sinotruck Mianyang, available to manufacture Jinbei ZS S30 and S35 and Tjatse, Yema T70 and T80 and other passenger vehicle types; and Jinbei Hercules and West Cowboy, Sinotruck special vehicle and other commercial vehicles, becoming the important vehicle manufacture base for heavy duty truck, light truck, pickup, SUV, new energy vehicle, etc. in Sichuan. As for auto parts, there are more than 50 manufacturers above the designated size, e.g. Xinchen Engine, Sanli, Bohong Haosheng, Fulin Precision Machining, etc., chiefly manufacturing BMW N20 engine and Prince engine, covering engine assembly, steering assembly, transmission shaft assembly, camshaft, gear and flywheel, power battery and materials, motor, charging device, etc., having become the partner of major vehicle manufacturers and key component manufacturers in China, and gradually entering the autopart supply system in Europe and US. 

In respect of new energy vehicles, Sichuan Yema Mianyang has obtained the proper strength in vehicle design, manufacture and commercial operation, with battery electric passenger vehicle E70 notified by MIIT and put into manufacture; Brilliance Auto South Base has completed the plan for new energy electric vehicles, with Hercules new energy pickup entering the prototype building stage; and Sinotruck Mianyang is capable of batch production and sales of LNG heavy duty trucks. Changhong Battery, Haote Group, Tianjin Lishen, Saien Technology, Yingzhi New Energy and other autopart and facility manufacturers witness the fast development.

• Fine Chemical Industry

The fine chemical industry is a pillar industry with strong strength in Anzhou, and Kaijiang Industrial Centralized Development Zone is the only dedicated chemical industrial park of Mianyang, with the environmental assessment of the regulatory detailed planning (regional environmental assessment) approved by Sichuan Department of Environment Protection. The Park has attracted many companies to built the facilities, e.g. Yinhe Chemical, the leader in chromic salt development and manufacture, with the largest and only one “National Level Enterprise Technical Center” of the chromic salt industry in China, and Aostar Phosphorus Chemical, Chuanlin Chemical and other companies with strong strength in research and manufacture of chromium chemical, phosphor chemical, green fine chemical products, new chemical materials, etc. in Sichuan and other areas, aiming to build a chemical industry with the output value of over RMB10 billion. 

• Biomedical Industry

The biomedical industry is a traditional advantageous industry in Anzhou, due to its exceptional natural resources. It is famed as “the Land of Konjac”, “the Land of Fructus Corni”, and “the Land of Mankshood”, producing the traditional “Genuine medicinal materials” of fructus corni, monkshood, coptis, Rhizoma paridis and so on, with high medicinal content and premium quality, and the area of artificial planting herbal medicines reaches over 160,000 mu. It is also a traditional commodity grain and cole seed production base, and its deep processing of konjac stands at the leading position in China. Currently, Anzhou is building the TCM formula granule production base, konjac industrialization base and green cole seed oil production base of the Southwestern Region, led by Gooddoctor Pharmaceutical Group, Jointown Pharmaceutical, Sinopharm, Moli Technology, Dachen Grain & Oil and other leading companies with “Chinese Famous Brands”.

• Electronic and IT Industry 

Based on Mianyang Science and Technology City and Changhong Electronic Devices Co. Ltd., Anzhou has brought together Derun Electronics, Dehong Electric Appliance, Haitian Electronic and other electronic and IT companies; and also newly introduced Sichuan Ailian Technology, Shenzhen Tongyue Technology, Shenzhen Xintianyuan Electronic and other high-tech electronic and IT companies, with the products covering the IOT module, internet module, communication module, sensor and application module, Beidou navigation module, wireless application assembly and onboard GPS, LCD module, quartz-crystal resonator, etc. It shall focus on development of automobile electronics, intelligent furniture IOT and other industries in the following years, to build the important electronic and IT manufacture base of Mianyang. 

• Material Industry

After years of development and the industrial transformation and upgrading in recent years, Anzhou has built the new material industrial chain chiefly with civil-military integration companies, covering new dry process cement, environmental water based paint, grapheme waterborne paint, solar energy electronic paste, modified plastic, etc., and gathered China United Cement, Maxewell, Langdi New Material and other companies with strong strength, to build the ecological new material production base. 

• Cultural Tourism Industry

Anzhou boasts for rich tourism resources, e.g. National Geologic Park for Siliceous Sponge Reef, the only one of its kind in China; Feiming Monastery built in the Tang Dynasty; Baishui Lake Scenic Area (Provincial Level), famed as “Pearl in Southwest China”; Chinese Spring Sacrifice – Jushui Bridge Walk Festival; Around Mountain and Lake International Bicycle Open Tournament, China Boat Fishing Open Tournament and other folklore and sports activities. It was included in the list of “National Demonstration Area for Total Area Tourism” in 2016. Luofu Mountain Hot Spring contains various trace elements and compounds with medical and healthcare functions to human body, rare in China and the first class in the world, and the water quality comparable with that of the world famed Vichy Hot Spring in France. Luofu Mountain Hot Spring Scenic Area (Provincial Level), with “Hot spring tourism” as the core brand, has developed into a famous scenic spot in Sichuan. Qianfo Mountain National Nature Reserve features the diversified forest communities, varied rare and endangered animal species and distinct hues in different seasons, with erect azure mountains, rugged cliffs and luxuriant vegetations, forming the typical subalpine landscapes characteristically of azaleas in spring, waterfall in summer, maple leaves in autumn and ice and snow in winter. 

Part 5: Investment Environment

• Abundant technical and talent reserves

Mianyang is an important base of military industry, scientific research and manufacture, with 18 national research academies and institutes as Chinese Academy of Engineering Physics, China Aerodynamics Research and Development Center, China Gas Turbine Establishment and so on, 15 universities as Southwest University of Science and Technology, 26 national key laboratories, 32 national engineering research centers,104 national level enterprise technical centers, 28 academicians of Chinese Academy of Sciences and Chinese Academy of Engineering, and more than 237,000 professional and technical staff. 

• Complete production and living facilities 

In the Park, a 18,000㎡ Entrepreneur and Startup Company Service Center has been built, with the complete facilities and beautiful environment, serving as the incubation platform for technology-driven medium and small enterprises; and there are the Autopart Industrial Zone and SMEs Startup Zone, as the incubation platform for SMEs; As well as 1 million square meters of the "online transactions, the main business, supplemented by supporting services coexistence" of the new e-commerce industrial park.24 standard factories of different specification, with the total area of 68,000㎡; and the Comfortable Life Service Center, with 1,044 suites, nearly 170,000㎡ in total, to provide the excellent and comfortable working and living environment for the companies and employees. 

• Complete production factors

Land: The park has a strong land supply capacity.The published land transfer price is RMB180/㎡ (RMB120,00/mu) in Anzhou Industrial Park, and the industrial land is subject to the lowest price, and also provided with the basic conditions of “7 connects and 1 leveling”.

Power supply: There are (2) 220kV substations, (8) 110kV substations, (8) 35kV substations and (1) 10kV substation, with the total MTA of 907,000kVA, in which there are (2) 110kV substations dedicated for the Park, with the daily power supply of 2.88m kWh, and the industrial power price is RMB0.55-0.6/kWh.

Water supply: The Park is located in the area with various water systems and excellent water quality, including Anchang River, Ganghezi River, Chaping River, Baixi River, etc, with the ground water volume of 1.347 billion m3, underground water volume of 319 million m3, inward water diversion of 5 million m3 and passing-by water volume of 122 million m3. The nearest municipal water supply station (55L/s) is 1.5km to the Park, with the daily water supply capacity of 14,000T.

Gas supply: There are 4 gas companies, with the daily supply capacity of 400,000m3 (and the daily consumption is 180,000m3). The nearest gas supply station is 1.0km to the Park, with the daily supply capacity of 100,000m3.

According to the regulations of Mianyang Government, the minimum salary in Anzhou is RMB1,380/month, and the minimum hourly pay rate for non-full time workers is RMB14.4. 

• Strong government support

State level: All policies for Western Development Program, and 4 policies of “First try, first pilot” of Zhongguancun National Independent Innovation Demonstration Zone.4 policies of “First try, first pilot” in Zhongguancun . The individual income tax for equity awards of technical and management staff can be paid by installments in 5 years; Limited partnership venture capitals investing in unlisted medium and small technology companies for over 2 years shall be given the preferential treatment in enterprise income tax; Transfer of non-exclusive license of use rights for over 5 years shall be given the preferential treatment in income tax as per technical transfer; The individual income tax payable for share increase provide by medium and small technology companies to individual shareholders can be paid by installments in 5 years. Provincial level: In addition to the preferential policies for provincial level development zones, Sichuan Government also issued 10 support policies for Mianyang Science and Technology City. 10 policies of Sichuan Government for supporting the accelerated development of Mianyang Science and Technology City: 

• 5. Establish the special fund for scientific and technological talent development. In 20132017, RMB50 million provincial financial allotment shall be provided to establish Mianyang Special Fund for Scientific and Technological Talent Development, used for supporting the early stage technology companies, leading technical innovation teams, introduction of high-level talents, training and innovations of university talents, etc. in Science and Technology City; 

• 6. Independently determine the land tax rates. The applicable tax rate for arable land occupation in Science and Technology City shall be determined by Mianyang Government independently and reported to Provincial Department of Finance and Provincial Local Taxation Bureau for filing. The applicable tax rate for urban land use shall be determined by Mianyang Government independently and reported to Provincial Government for approval before implementation. 

• 7. Conduct the pilot project for equity incentive and rewards for commercialization of research results. For transfer and transaction of service inventions from universities, research academies and institutes and state-owned companies and organizations, 60% - 95% of the resulting income shall be owned by the research staff (including those also acting as the leaders) and teams participating in the research and development; and, for the award given in the form of shares, contribution percentage or other equity rights for his/her service research results, the individual income tax shall not be levied temporarily when the individual obtains the shares or contribution percentage. When any leading technical talent establishes the facility of his/her company in the Science and Technology City, his/her intellectual property rights and other intangible assets can be converted to technical shares as per the rate of 50%—70%.

• 8. Enhance the policy support for companies of encouraged industries: Before December 31, 2020, for any company registered in the Science and Technology City, with any of the industry listed in Catalogue of Encouraged Industries in West China as the main business, and the main business income of the year covering more than 70% of its total income, the enterprise income tax can be paid at the rate of 15% with the application of the company and after the successful review of the applicable taxation bureau. 

• 9. Enhance the support for establishment of financial institutions in the Science and Technology City: Authorize Mianyang Government to approve the relevant matters for establishment of small amount loan companies and other quasi financial institutions, according to the uniform regulatory policies of Sichuan and the filing management mode. Support China Development Bank, Export-Import Bank of China and other external commercial banks and financial institutions (securities, insurance, etc.) to establish branches and subsidiaries in the Science and Technology City; and support financial institutions in the Science and Technology City to expand credit input.  

• 10: Give priority for supporting multi-channel financing of the Science and Technology City and companies: Support Mianyang to apply for issuing local government bonds, used for construction and development of the Science and Technology City; support technology companies in the Science and Technology City to SME private placement bonds and debt financing instruments in inter-bank market; establish dedicated venture capital funds and support technical innovations. Give priority for handling the filing for tutoring of pre-listing companies in the Science and Technology City, arranging the acceptance and reporting of those completing the tutoring, and handling the documents for recommendation or feedback to CSRC. Award any company submitting IPO application to CSRC, any listed company performing re-financing or any SME listed at NEEQ (National Equities Exchange and Quotations). 

Municipal level: Mianyang has issued 23 measures to support innovation and entreprenureship, and 33 “Fountain Program” support policies, And the establishment of special funds, to support innovation and entreprenureship, talent development, research result commercialization and industrial development. 

District level: Anzhou District has issued Measures Anzhou District for Management and Use of Dedicated Industrial Development Fund, Measures of Anzhou District for Awarding Business Development and Capital Introduction and other support policies. The more preferable support policies shall also be given to domestic and foreign famous companies, high-tech companies and foreign funded companies employing more local labors, in a case by case manner.