Report of Year 2002

Everybody, belated wishes for a happy Spring Festival!

Today, full of enthusiasm and passion, we continue our work in this new year after the happy Spring Festival.

In the past year, our company attained gratifying results through the consensus and synergy of all departments and the hardworking of the staff. I, on the behalf of the company, hereby extend my heartfelt thanks to all of you!

Our company recorded the output of RMB 50 million in 2001, with export sales well over RMB 10 million and taxes reaching RMB 3,747,000. Our company has been awarded as “Triple Superior Enterprises in Zhejiang Province”, “AAA Bank Credit Enterprise”, “Triple Start Enterprise” (the only manufacturer of Ruian with such award in the its industry), “Large Taxpayer”, etc.

Successfully passed the national test
Our 1200A Capsule Filling Machine has successfully passed the national detection, which shows the stable performance of the product; meanwhile, we made great efforts in the improvement of its appearance, configuration, etc., thus enhancing the grade of the product.

With our persistent efforts, we have made further progress in new 33 stamping machine development.

Besides, 250 DII and DIII (aluminum/plastic, aluminum/aluminum and aluminum/plastic/aluminum) Blister Packing Machine are enhanced and perfected further in performance, which tackles with such challenges as material feeding and tablet-absent detection, automatic checking and rejecting and color ribbon printing of aluminum/aluminum packaging and multiple drug packaging, keeping its leading position in China.

Furthermore, we make relatively rapid progress in development in new products. 220A high-speed Blister Packing Machine completed its development successfully in short time and now is in further improvement and perfection stage. Meanwhile, our nonporous coating machine, multi-directional motion mixer and late-model granule machine have gradually put into batch production.

Thanks to our persistent implementation of ISO 9000 international quality management standard, we have made remarkable progress in site management, process control and quality assurance, further strengthening the quality awareness of all of our staff.

Service so radical users
In the respect of after service, the overwhelming majority of our staff can share customers’ anxiety, travel day and night and running around for business. Many of them have over 300 days in business trip a year, with the longest trip reaching over 90 days. Most of commissioning personnel try their best to save expenses for our enterprise during business trips and accept tasks received without delay, no matter how far the trip is, how bad the conditions are and how long the duration is. Thanks to their excellent performance, our company sets up a good image and receives widespread good reputation. Many customers send us letters of recommendation and some even extend their thanks for our commissioning personnel especially by phoning me.

It is worth mentioning that Chen Xianmin, Huang Xuezhang and Yang Wenjing went home on the night of the 27th day of lunar December and Chen Ping went home on the night of the 28th day.

We have well prepared for the two national trade fairs of the past year, although there were so many model machines, at the premise of normal delivery. Much attention and efforts have been paid to in-plant commissioning and quality assurance. In particular, the appearances of product showed in the autumn trade fair have great improvement, which is highly acclaimed by customers and persons of the same occupation.

Sales personnel are diligent and full of sense of responsibility. They work hard and grasp every opportunity, making many contributions to our enterprise for occupying greater market share.

In short, many personnel perform excellently in the year of 2001. It is good news that we have some good examples with honest and helpful personality. Chen Qingxuan returned a picked mobile phone promptly. And another anonymous personnel phoned the owner of a lost purse immediately after finding the telephone number and declined the thank fee of several hundred yuan. Such valuable spirit and lofty moral trait are worth learning by everyone and carrying forward by our enterprise.

We will always remember those serious and responsible employees who make outstanding contributions to our enterprise. Apart from good results and performance, we also find out our shortcomings:

Interworking of Technical, Production and Quality Control Departments should be further improved; warehousing management is required to be further enhanced; since warehouse is the kernel of our enterprise, warehousemen and financial management personnel should all have corresponding expertise and high sense of responsibilities;
In-plant design personnel need to be more careful and cooperate with QC Department to strictly guarantee the ex-factory quality;

Nearly all commissioning personnel failed to carefully write down job logging. This year, this task must be well fulfilled for not only the requirements of ISO 9000, but demand of our actual management. Sales personnel should fulfill the task, too.

Some individual employees usually went out in work time and are undisciplined. I hope they could treasure their opportunities and make corrections.

Some employees split hairs in piecework, but some bear hardship without complaints even though they have relatively low salaries due to transfer of work and less popular work. For those hardworking employees without fussing about personal gains or losses, we will pay attention to them and have considered providing appropriate compensation to them. We need more such honest and willing to work employees.

Enterprise is a part of the society, with functions to create wealth for the society, including taxing, job placement and talent training and to provide every employee with a platform to develop their abilities and create value of life.

Must establish teamwork
Apart from employees’ personnel efforts, it is necessary to set up team spirit. The energy of one person is limited, but the mutual cooperation with everyone fulfilling their own responsibilities can lead the enterprise to a virtuous cycle and then gain optimum effects. This is the group effect formed by optimization grouping and scientific management.

Even just one link fails to coordinate well will waste all previous efforts and cause the market finally to be occupied by others. There are many lessons. For instance, the ancient China has four great inventions, but the Eight-Nation Alliance used guns with gunpowder invented by the ancient Chinese to invade China, because at that time they made progress and we lagged behind.

We took the lead in plate-type Blister Packing Machine in China, which is acknowledged in the society. However, if we fail to perform best, we will lose advantages finally.

In China, Film Coating Machine was first developed by the Ministry of Aviation Industry and we are the second developer. However, we paid major attention to Blister Packing Machine and less attention to Film Coating Machine, and late-comers surpass us and occupy the market. This is our previous fault and lesson and I should bear the liability. In order to save the passive situation, our company decides to allow Film Coating Machine and multi-directional motion mixer to be under the specialized responsibility of “Ruian Jiangnan Pharmaceutical Machinery Co., Ltd.” mainly led by Yang Song and to be leading products for production and sale, thus making joint efforts to expand the business of “Jiangnan”.

In the new year, challenges we are confronted with are the transfer of ISO 9000 to the new version 2000, the infrastructure construction of new plants in Shanghai and continuous development of new products oriented to international advanced level. All of these require large financial and human resources. Our investment now is for the basis of the further development in the future.

We plan to organize the first group of volunteers to Shanghai in this autumn and we hope everyone can actively apply. The spearhead should build up the entrepreneurship and our enterprise will do the best to create favorable working and living environment for them, enabling them living and working in peace and contentment there. From the long term view, this is a good development opportunity for everyone. And it is certainly that our major production base is also here, because Ruian is a key pharmaceutical machinery market and we need a group of personnel to stay here as guard our home front.

Along with China’s joining of “WTO” and the formation of our Shanghai office, we will meet new challenges and greater development space. We hope everyone to keep carry forward professional dedication, work hard and improve continually. I believe we will have better future as long as we work earnestly, steadily and carefully.

May we attain greater achievement in the new year and wish you health and happiness!

Jornen Machinery Co., Ltd.
Yang Yijun, General Manager
February 18, 2002