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7/16/2014
ShenQian Package Interview Transcript

Exclusive Interview by Packaging Update – July edition

Q: What are the main operating areas of ShenQian Package? How about its business operations in these areas in terms of market share?
Currently, ShenQian Package has five major business segments, i.e. labels, plastic caps, PE shrink films, PET preforms and beverage filling lines. PE shrink films, PET preforms and beverage filling lines are three new areas of business. The Company now has 24 capping lines, 15 printing and 2 filling lones and has gradually formed a complete industry chain of labeling - capping - blowing – filling, thus improving the Company's comprehensive competitiveness. In terms of market share, our PE shrink film segment performs the best, followed by the cap one. We are currently working to build a new form of food packaging industry chain structure that integrates packaging and beverage filling. We hope that such industry chain may increase our market share!

Q: What are ShenQian's advantages in food and beverage packaging? How does the Company maintain these advantages?
First, we have the state-of-the-art equipment, which is highly automated to improve precision and accuracy while reducing human error. Second, the Company implements the "one facility" industrial model and all the five business segments are centralized in one facility, offering a great deal of flexibility in allocating personnel at each production line and enabling the transfer of staff in the shortest possible time; meanwhile, the "one facility" industrial model is under the management of a group of leaders, striking a good balance when it comes to allocating corporate resources and also greatly reducing the operating costs. Third, our machinery efficiency is very high.

Q: In terms of capping, what is the most critical technology in the entire production process?
With the continuous development of science and technology, industry has become increasingly automated. In other words, industry has grown more and more dependent on mechanical devices and the quality of equipment has a large bearing on the quality of products manufactured. For us, the most critical factor in the capping process are the machines. At present, our 24 capping lines are all made by Sacmi. In fact, equipment is a very critical factor in labeling, blowing and filling, in addition to capping. This is the reason why we keep introducing new technologies and machinery.

Q: As things stand now, both cooperation and competition coexist. Many things can't be done without cooperation, and companies are no exception. What are the Company's primary considerations when choosing partners?
We are a private enterprise providing brand packaging services. As for our partners, we will focus on the strengths and development of  trademarks to help our  Make partners perform well and grow big. We have many partners at present, such as Pepsi, Tingyi, Uni-President, Nestle, etc. These brands are doing well in the drinking water industry and still have room and a tendency to grow. On the other hand, as for our machines suppliers, we are more concerned about the level of sophistication, quality and performance of edevices, because from a perspective of a private enterprise, our ultimate goal of introducing equipment is to improve our overall benefits. The cutting-edge technology, operational stability and production cycle of equipment among other factors, are all indicators we consider. Take SACMI for example, we started cooperation in 2008 and our 24 capping lines are all composed by SACMI's machinery. First, SACMI's capping machine performs the best in compression molding and is in a leading position in the industry; second, SACMI's capping unit also performs very well in terms of stability and meets our need for productivity, so we have been using SACMI's emanufactures over the years. We firmly believe that through cooperation with high-quality brands, we will go farther and farther in the food and beverage packaging industry.

Q: Corporate culture, corporate positioning and funding and R & D activities will have a great impact on the development of a company. Then, in which of these aspects do you think ShenQian performs best? Which of these aspects has the biggest impact on your Company?
Corporate culture is the heart of a company. Corporate positioning may change as the market changes, while the culture of a company will never change. The tenet ShenQian adheres to in building its culture is "integrity makes a brand, pioneering lays the foundation for future success", that is to say, we need to put integrity in the first place, which is highly consistent with our business philosophy - "stay alive by providing high quality, deliver efficiency through management and seek development by building a good reputation" In addition, ShenQian's corporate spirit - "constantly negate ourselves, always strive for excellence" is the driving force behind our continuous development, prompting us to constantly scale new heights. In conclusion, we believe that with an excellent corporate culture as our guide, we are destined for a bright future!

Q: Can you tell us about the Company's plan for the next five years?
ShenQian has been committed to building a food packaging industry that integrates packaging and beverage filling. Of the five business segments of labels, plastic caps, PE shrink films, PET preforms and beverage filling lines, our PE shrink film segment has gained the top spot in the domestic market, and we will keep up the good work; our capping segment currently ranks among the top three and we hope to make it to the top spot within the next few years; we plan to appropriately expand our filling line segment according to market demand. In fact, generally speaking, we have to tap into our strengths to boost the Company's competitiveness in the next few years. We believe we can do it!

<< Packaging Update – July edition >>      ShenQian Package PHOTOGALLERY

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