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Recently, a high-end pharmaceutical and health food project with a total investment of 2 billion yuan by Kelun Pharmaceutical has officially settled in Longquan City. This marks the second major investment by Kelun Pharmaceutical in Longquan and represents the largest single investment project newly attracted to Longquan’s healthcare and pharmaceutical industry chain. Liu Sichuan, General Manager of Sichuan KELUN Pharmaceutical Co., Ltd., introduced the project, stating, “This project in Longquan is a representative of Kelun’s new production capabilities. Once fully operational, it is expected to generate an annual output value of over 4 billion yuan, injecting new momentum into the high-quality development of Lishui’s healthcare and pharmaceutical research and manufacturing industry.”
It is understood that in the first half of this year, Lishui City attracted 14 key projects in the traditional Chinese medicine (TCM) and healthcare sector, with a fixed asset investment of 5.323 billion yuan. Among these, two projects had investments exceeding 2 billion yuan, and nine were in the secondary industry. The accelerated breakthrough in attracting major projects is a result of Lishui’s precise efforts, leveraging multiple driving factors such as a favorable environment, abundant resources, and industry integration.
As the “Green Valley of Zhejiang”, Lishui boasts the largest area of traditional Chinese medicinal plant cultivation in the province, covering 321,300 mu. The city also ranks first in the province for the number of TCM resources and the variety of advantageous wild herbs. However, due to factors such as fragmented cultivation, scattered processing, and inefficient utilization, the resource advantages and core competitiveness have not been fully realized.
“Lishui has the foundation, potential, conditions, and determination to develop the TCM healthcare industry. We will adhere to an ecological priority and green development approach, leveraging the advantages of authentic medicinal materials and industrial foundation. By combining the ecological benefits of lush mountains and clear waters with the branding advantage of longevity towns, we will open up pathways to convert ecological products into value and accelerate the growth of the TCM healthcare industry rooted in ecological resources,” stated a leading official of the Lishui Municipal Committee.
Last year, Lishui released a three-year action plan for the development of the TCM healthcare industry. Boldly positioning itself in this emerging sector, Lishui is focusing on six areas: cultivation of specialty medicinal materials, plant extracts, health foods, TCM formulations, beauty products, and TCM health tourism. The city is implementing actions to cultivate four major specialty medicinal material bases, build five industrial parks, develop five renowned TCM health brands, foster five leading enterprises, and support five key initiatives, with the goal of nurturing and expanding a TCM healthcare industry cluster worth hundreds of billions of yuan.
Lishui city has established a city-level leadership group for the development of the TCM healthcare industry, enhancing departmental coordination and city-county linkage. By implementing a “chain leader system”, the city aims to guide the development of the entire industry chain, promoting the strategic layout of specialized industrial parks according to local conditions. The Health and Pharmaceutical Industrial Park at Lishui Economic and Technological Development Zone focuses on attracting enterprises involved in active pharmaceutical ingredients (APIs) and pharmaceutical R&D and manufacturing outsourcing, forming a comprehensive pharmaceutical formulation industry chain. Meanwhile, the Liandu District Beautiful Health Industrial Park is targeting the attraction of major projects in the beauty and health sectors, accelerating the dual construction of the Nice Ecological Comprehensive Park project and the Ecological Industrial Park project. The Qingyuan Biotech Industrial Park is optimizing its industrial layout in biotechnology, healthcare, and headquarters economy to create the largest biotech industry development cluster in southern Zhejiang and northern Fujian.
On the southern bank of the Ou River, at the foot of Daliang Mountain, the Big Health Life Science Corridor is extending into a “green oasis” of innovation in the mountainous region. New platforms, such as Origin Cell Science and Technology Museum, Pharmaceutical Machinery Industrial Park, Biopharmaceutical Accelerator, the “Zhejiang Eight Taste” Authentic Medicinal Material Base, and the Traditional Chinese Medicinal Material R&D Base, are being established. Additionally, the Zhejiang University-Lishui Life and Health Joint Innovation Center, China Pharmaceutical University TCM Innovation and Development Center, Zhejiang Province She Medicine Inheritance, Innovation, and Application Key Laboratory, and the province’s first municipal branch center for research on plant-based cosmetic ingredients are accelerating their establishment, further enhancing the quality and momentum of industrial development.
Outside of the city, in the core area of Zhangjiang Science City in Shanghai, the “Science and Technology Innovation Hub” is rapidly constructing a full-chain system for “R&D, incubation, and industrialization” in the health and pharmaceutical sectors. Ji Quanquan, Director of the Lishui “Dual Promotion and Dual Attraction” Working Group Office, told reporters that the city has specially set up a 1 billion yuan “Dual Promotion and Dual Attraction” fund to support the entire city's TCM healthcare industry investment promotion. Through modes such as fund-based investment attraction and flyover investment attraction, the fund provides strong support for attracting industry projects and talent.
Empowered by platform resources, Lishui City is accelerating the creation of an enterprise cluster development ecosystem. In the first half of this year, the operating revenue of Lishui’s above-scale industrial enterprises in the TCM healthcare industry increased by 12.1% year-on-year. Modern TCM enterprises like Wecome and CONBA are making strides towards innovation, while edible fungus polysaccharide health product companies such as FANGGE Pharmaceuticals, WuYangTang Medicine, and ZHEJIANG BIOSAN BIOTECH CO., LTD are continuing to grow.
Zhejiang Benefit Pharmaceutical Co., Ltd., the first pharmaceutical company in the province to research and produce TCM formula granules, has had its TCM formula granule laboratory recognized as a “Zhejiang Province Enterprise Research Institute”. According to Executive President Zhang Liyun, the company consumes over 1,000 tons of authentic Lishui medicinal materials annually and utilizes dynamic extraction, high-efficiency low-temperature concentration, and spray-drying technology to achieve standardized TCM production. Over 400 types of TCM formula granules that meet national and provincial standards have already been launched.
The cross-sector integration of the industrial chain is unlocking new possibilities for TCM innovation and development. Zhejiang Gaoluohui Imported Chocolate Co., Ltd., in collaboration with Lishui Shengshengtang Traditional Chinese Medicine Co., Ltd., has developed six TCM healthcare chocolate products under the brand “Li Jiu Wei” (Nine Flavors of Lishui), featuring ingredients such as Polygonatum, Ganoderma, and Ginseng. These products are gaining popularity in the high-end consumer market. Zhejiang Longquanshan Food Co., Ltd. has combined Ganoderma with coffee, selling each cup of Ganoderma coffee for over 30 yuan. Additionally, new forms of rural cultural tourism integrated with agriculture, such as Jiangnan Medicine Valley, Yuanshang Tian TCM Health Village, and the East China Medicinal Plant Garden Research Center, are emerging one after another, further expanding the scale of Lishui’s TCM healthcare industry.