The launch site has an approximate investment of 4 billion yuan ($560 million) and is located off the coast of Wenchang City. It includes a launch area, a TT&C (telemetry, tracking and command) building, multiple rocket assembly buildings, spacecraft testing and integration facilities, fuel storage facilities, and other structures.

It is positioned at a latitude of 20 degrees north, benefitting from the advantages of a low latitude, which increases rocket payload capacities and reduces launch costs.

Compared to inland launch sites, coastal launch sites are more convenient and safer as large rockets can be transported to the site by ship, which is very important for commercial launch services. A new, purpose-built port is being planned by the Hainan provincial government.