Zhuhai Investment Overview 2017

“Pearl” of the DeltaCity and Special Economic Zone• Critical location• Dynamic industrial base• Investment incentives• Skilled labor force• Efficient government services• Livable and attractive

• 2013: #1 China Sustainability Index (McKinsey & Co.)

• 2013: #1 Most Livable City in China (China Academy of Social Sciences)

• #1 Westerner’s Favorite City in China (Globe Magazine)• Top 10 in

• City Competitiveness• Air Quality• China’s Most Beautiful Cities• Scientific Urban Development Index• Excellent Quality of Life• Transparency of Municipal Government

• 2015: China Eco-City Report• #1 Landscaping Leisure City• Top 3 Environmentally Friendly &

Resource Efficient• #5 Integrated Innovation

The Pearl River Delta

The Pearl River Delta: 110 m people, 7,000 sq km

Population

(2012) Area Specialties Dongguan 8,290,000 17,573 km² Manufacturing: Electronics, communications

Foshan 7,200,000 3,849 km2 Manufacturing: household electrical appliances, furniture, lighting, plastics, ceramics,ore

Jiangmen 1,820,000

Guangzhou 15,000,000 7,434 km2 Manufacturing, Canton Fair

Macau 624,000 31.3 km2 Tourism, Gambling, Special Administrative Region

Shenzhen 15,000,000 1,991 km2 Manufacturing, High Tech, Electronics

Zhongshan 3,120,000 Agricultural, furtniture, electric household appliances, lighting fixtures, electrical acoustic

Zhuhai 1,562,530 1,724 km2 Hi-tech, petroleum processing, biomedicine, general aviation, additives, chemicals, tourism

PRD: Largest Mega-City in the World

Prefecture level city3 county-level divisions: Doumen, Jinwan, Xiangzhou (includes Hengqin)

3 Special economic districts: Hengqin New Area (National Level)Wanshan Marine Development Experimental ZoneZhuhai National Hi-Tech Industrial Development District

3 High-end Sectors and 1 Signature Industry• Advanced Manufacturing (Energy-saving, environmental protection,

smart home appliances, off-shore engineering equipment manufacturing, general aviation, transit equipment, advanced printing equipment, environmentally-friendly consumables, yacht manufacturing)

• High Technology (Computer software, IC (integrated circuit) design, smart power grid, IoT (Internet of Things), biomedicine, new materials, 3D printing, mobile internet.)

• High-end Services (Leisure tourism, high-end holiday services, banking services, conventions and exhibitions, cultural and creative, high-end logistics, science and technological service industries)

• Marine Economy and Eco-Agriculture (Green energy, ocean sports, aqua/ecotourism)• Zhuhai Yacht project• Wanshan Saltwater Fishing project – international saltwater fishing

resort• Guangdong-HK-Macau Consumer Yacht Center

Gaolan Port• Only deep water port on the west

bank of the PRD

• State-level economic zone

• Green Energy Base

• Chemical engineering

• Energy and Power

• Ocean Engineering Equipment

• Yacht Manufacturing

• Modern Port Logistics

• One of 7 ports in Zhuhai

• 17 Fortune 500 companies include:

BP, Shell, Lubrizol, Hutchison-Whampoa, CNOOC, CPDC, Sinopec, Shenhua Group, China Resources, Sany Group

Foreign Trade Zone Zhuhai Macau Crossborder Industrial Zone

• Imported goods are duty- and VAT exempt until import into China. Products imported and reassembled for export are duty and VAT exempt, preserving cash flow and lowering final costs.

• Imported equipment, parts, building materials, office supplies for own use are duty and VAT exempt

• No time limit on bonded warehouse (outside of zone, limit of 3 months)

• Streamlined import/export procedures: “one declaration, one inspection, one examination”

• Foreign –currency accounts allowed

• Foreign financial and insurance branch offices allowed

• The only bonded warehouse in Zhuhai

• Aviation: SAFT (aviation batteries), AVIC bonded warehouse, distribution center, logistics center for parts/components, Xiangyi Pilot Training Center (13,000 pilots trained/year), MTU Aircraft engine maintenance (400 sets of aircraft engines/year)

• 15 minutes to Zhuhai Airport, 8 km to Macau Intl Airport

• Biomedical: • HoKai Tumor Diagnostics 佳医疗 , • Jafron Biomedical

Hengqin New Area• Adjacent to Macau• 106.5 square km of land, 3x size of

Macau• Hengqin-Macau border open all

day, 24/7, as of December 2014 • 7 industries: Tourism and

Recreation, cultural and creative, high technology, technological research and development, commercial and trade services, banking services, traditional Chinese medicine and health care

• New Convention and Exhibition Center, Chimelong Ocean Kingdom, U-Macau Campus (‘14)

• Feverish development, population predicted to rise to 200,000 by 2020, one third Macau residents.

• Housing prices much less expensive than Macau

Zhuhai Biomedical Industry OverviewGuandong Province• Largest market in China for pharmaceuticals• 20% of pharmaceutical sales in China• Total sales revenue 200 billion RMB (2011)• National level biomedical demonstration zone• 3rd in province, after Guangzhou and Shenzhen

Zhuhai Market Environment• One of Zhuhai’s 6 strongest industries/10% of production value• Complete industrial chain• Strong legislative power/high level of openness• Home to several industrial backbones, including Lianbang

Pharma, Livzon Pharma, Hokai Medical, Baolite Electric, Changyi Bejian, etc.

Zhuhai Health Sector Companies

Pharmaceutical Manufacturing ： 33

Medical Instrument Manufacturing: 140

Health Care Food Manufacturing ： 15

Cosmetic Production ： 70

Pharmaceuticals Wholesalers ： 71

Pharmaceuticals Retailers ： 973

Medical Institutions ： 694

Operators of Medical Instruments ： 364

Management of Health Care Food ： 1186

General AviationZhuhai Airshow

• Biannual since 1996• Over 400,000 visitors, and 700 exhibitors from 40 different countries in 2014• November 15-20, 2016• JV with AERO Friedrichshafen to host airshows on alternate years

Jinwan Aviation Park Center for aircraft production, maintenance and logistics• 99 square km, the largest general aviation base located in South China• Critical location: marine, land and air hub• 4 specialty areas

• aviation manufacturing• general aviation and business jet operations• aviation and aerospace exhibitions• warehousing and logistics of bonded goods

Jinwan-based aviation companies• CAIGA (China Aviation Industry General Aircraft Co., Ltd)• CAAC (Civil Aviation Administration of China) Flight Inspection Centre, to provide flight inspection service for civil airports in south

China• MTU Aerospace• Cirrus Design• Zhuhai Helicopters, an affiliate of China Southern Airlines, offers on- and offshore helicopter services serving both Chinese and

Western oil companies in their expanding oil operations in the South China Sea • NetJets (Berkshire Hathaway)

Zhuhai-based aviation related service providers and research institutes

Xiangyi Pilot Training Center (JV between Canada’s CAE International Holdings, the world’s largest manufacturer of civil flight simulators and second largest provider of civil flight training services, and China Southern Airlines, one of the top three civil aviation companies in China

• largest JV flight training center in China• trains about 13,000 pilots per year• aviation technologies R & D

Zhuhai Business Aviation Center• broadcasts weather and flight information• maintenance and repair services for private jets

AVIC International• JV with Interfast Inc, a leading Toronto-based global aerospace and industrial fastener distributor• Acquisition of Align Aerospace, California-based distributor of aerospace parts• Large facility under construction in FTZ to supply specialized aerospace fasteners, hardware and hardware and offer services,

such as engineering support, to domestic and international aerospace firms• Research into drone technology and aircraft engine manufacture in cooperation with the Zhuhai campus of Tsinghua University

2010 opening of Chinese airspace restrictions -> • General aviation expected to grow 19% between 2011 and 2020 (US Commerce Dept.)

• 2010 – 2014: Private air traffic 500% increase!

Challenges • Huge demand for training and qualification of air personnel• Need to construct additional public airports• Infrastructure for air traffic supervision must be extended and improved• Need to develop resources and pipeline to meet growing demand for aircraft fuel

Yacht & Ship Building

Gaolan Port Pingsha Yacht Center

• Established 2002, rapid growth

• 18 Yacht building firms (2012*)• 13 operational, 2 under construction, 3 planned construction

• 7 Chinese, 11 foreign

• 32 Yacht accessory firms

• Ocean Engineering Equipment Materials Center• 2012 Yacht Industry 1,385,000,000 yuan ， 19%

increase, over 300 workers

• Selene Yachts (Taiwan), 杰腾公司 ($8 million),Sunbird (珠海太阳鸟游艇制造有限公司 ),珠海江龙船舶有限公司 ,珠海佳航游艇有限公司：由澳大利亚 McConaghy Boats ($6 million), Ferretti (Speedo) Asian HQ in Hengqin,珠海先歌游艇制造有限公司：由 IAG ($25 million)

• Recreational, fiberglass, ultra-luxury, sailboats, commercial

Zhuhai International Boat ShowZhuhai International Convention & Exhibition Centre9/29-10/1/2015

ChemicalsGaolan Port Economic Zone • largest deep-sea port in the Western Delta• 3.5 million ton liquefied natural gas (LNG) re-gasification

Purified Terephthalic Acid (PTA) used to manufacture polyethylene terephthalate (PET) for the production of textiles, bottles, packaging and film products

• China National Offshore Oil Corporation (CNOOC)• natural gas drilling platform in the South China Sea • natural gas receiving terminal inside Gaolan Port• producing naphtha and mixed aromatics utilizing natural gas and condensates as feedstock• Operated a PTA production plant in Zhuhai since 1997, which was expanded in 2015 to be one of BP’s

largest and most advanced PTA production centers in the world; annual capacity of 2.95 million tonnes

• BP (85%) Zhuhai Port Group (15%) JV – 3 plants – total capacity in Zhuhai 2.95 mtpa – state of the art, energy/waste conservation

• China Resources PET bottle chip factory• Huarun Chemical 600,000 TPA polyester production site , currently under construction, largest of its kind in

Southern China upon completion• Abundance of natural gas -> paraxylene (PX) is extracted for further processing into PTA and PET ->

Opportunities for upstream/downstream processing

Polyurethane extensively used in insulation materials such as coatings, curing agents and foam

• Wanhua Chemical, Lingu Chemicals Co. toluene diisocyanate (TDI) production bases• in negotiations or further projects for TDI and methylene diphenyl diisocyanate (MDI)• Wanhua Chemicals Co. PU coatings production base• crosslinks to the marine and yacht building industries

Lubricants supplies aviation, railway, automotive industries

• Shell – base oils• Shell Lubricants Plant – produces lithium, lithium calcium and lithium complex based, highly durable

lubricants, recently enlarged to a capacity of 30,000 tonnes per year, largets plant of Shell lubricants worldwide

• Lubrizol – additive agents – more than 400,000 tonnes/year• Opportunities in mixing, canning, packaging, instrument manufacture, inspection, lab testing

Synthetic Resin / Other• China now leading producer in the world of synthetic resin, , supply still not meeting demand• Gaolan Port is also a preferred location for synthetic resin producers – abundant supply of LPG and LPG-propylene processing factories• Eternal Specialty Chemical, JV between the Taiwanese Eternal Chemical and BASF, production base for synthetic resins

• largest high-performance coatings joint venture in Asia in terms of capacity and sales volume

• Other specialized coating suppliers such as Cardolite, cashew nutshell liquid (CNSL), a renewable natural resource

Left: Overview of Gaolan Port Economic Zone; Upper Right: Huarun Chemical site, the largest polyester production site in Southern China; Lower Right: BP’s PTA production plant.

“Print Consumables Capital of the World”

• Highest technical level and largest, complex industry chain of printer consumables in the world

• More than 250 printer consumables manufacturers, including Print-Rite, Ninestar, MMC and others

• Zhuhai’s contribution to world market: • more than 90% of ribbons• 70% of compatible inkjet cartridges• 30% of toner cartridges

• Remax World Expo: Annual Trade Show• 453 exhibitors from 25 countries• 13,000 visitors coming from more than 85 countries

• Innovation in 3D Printing, advanced materials printing, long lasting ink, other new technologies

Leisure, Tourism and RecreationAttractions

• Excellent air quality• Accessible location• Reputation for beauty

Events• Zhuhai Air Show• Zhuhai International Circuit• Tennis Center

• WTA Elite Trophy• Beishan Music Festival• Zhuhai Marathon• Zhuhai International Comic & Animation

Festival and Animation Industry Expo DestinationsHengqin Convention & Exhibition CentreZhuhai Ocean Spring Resort (海泉湾度假城 , 金湾区)

• 5-star hotel, theme park, modern theater, golfing, fishing

Zhuhai International Circuit RacetrackChimelong Ocean Kingdom – 5 world recordsChimelong Circus HotelIsland Resort Areas

• Dong’Ao Island (东澳岛)• “Kingdom of plants”, 80% vegetation• Surfing, scuba diving, sailing• ClubMed

• Miaowan Island • Gree Real Estate & Wanshan Marine

Development Zone agreementHot SpringsNew Yuanming Palace

Education

• 12 years free education for all students• “3 in 1” Industry, Education, Research • 15 secondary vocational schools• 20 Universities: 127,000 college student• Zhongshan University, Zhuhai Campus

• Yale China Teaching Fellows• Longest classroom building in world

• 20,000 student, 179 classrooms• Jinan University, Zhuhai Campus• Beijing Normal University, Zhuhai Campus• Beijing University Education and Science Park, Zhuhai Campus• Harbin Institute of Technology, Tech Innovation Branch• Jilin University Software College• Zunyi Medical College, Zhuhai Campus• Guangdong College for Technical Personnel, Zhuhai Campus• Macau University, Zhuhai Branch• United International College (HK, Beijing)• Bryant University (Rhode Island): US Bachelors Degree in China• Tsinghua (Zhuhai) Science Park

• Smart Grid R & D, PostDoc Center• Zhuhai Art College（ ZAC）• Zhuhai City Polytechnic（ ZCP、 ZHCP）• Institute of International Business and Economics, Zhuhai

Sustainability• Beautiful environment, surrounded by hills and seas

• High environmental standards for green space, air quality

• Bike share program

• Community parks

• Policies to promote environmental protection

• Energy efficiency goals: Reduction of Energy Consumption per GDP per year:

-3.89%, actual reduction 2014:-4.12%

• Electricity consumption 2014:12.173 KWH, +3.6% compared to 2013

• Measures for reductions: - efficiency increase in electric machinery- pilot project Gaolan “circular economy” (provincial level) - “Low carbon” and new energy pilot city projects (EC Link with EU)- Green buildings- Efficiency increase in traffic: e-mobility- Energy reduction in public institution and buildings-Pilot projects for energy efficient products, e.g. LED usage

• Implementation Plan for Promotion & Application of New-Energy Vehicles• 500 buses, 400 taxies, 60 special-purpose motor vehicles,

540 private cars• charging service network with various charging stations,

parking lots and residential area charging machines will be built to meet the needs.

• Policies in favor of purchase, operation and support

Devorah WorchChief Representative, N. AmericaZhuhai Commercial Service601 West 5th St., Suite 650Los Angeles CA 90071

WeChat: Devorah17devorah@zhuhaicommerce.org #investzhuhai

Questions? Comments?Thank you! 谢谢 !