Work Summary -Year 1996 to Year 1999

Ruian Industrial and Economic Committee:

Jiangnan Packaging Machinery Co., Ltd., under the guidance of the quality policy of “strict management for Jiangnan image and demanding requirements for international brand” by Yang Yijun, the General Manager, works hard with entrepreneurship and blazes a new trail in pioneering spirit. With the joint effort of the staff and meanwhile the concern and support of the government department and superior officers, our company achieved a gross industrial output value of over RMB 40 million during 1996 to 1998, with taxes and profits totaling more than RMB 10 million in these three years. It is predicted that the output in 1999 will be RMB 20 million, with taxes and profits of RMB 6 million. Over the years, the foreign exchange earnings through exports have accumulated to RMB 15 million.

Through we are in machinery industry, a basic industry, and are confronted with the economic downturn in Southeast Asia and China’s market slump, we did create such a brilliant achievement. Factors contributed to this are as follows:

I. Fall on opportunities:
Yang Yijun started his business from 23 years old and kept working hard to conquer difficulties and get through hardship. Yet he finally started to encounter opportunities since the policy of reform and opening up implemented.

II. Grasp opportunities:
Yang Yijun carried out market research and grasped opportunities. He worked hard for 5 years and finally successfully developed multifunctional Blister Packing Machine with strong will and superior perseverance. The product got several national patents, being the pioneers in the field of China, helping China to save a large amount of foreign exchange and occupying the market commanding height.

III. Start and manage the business:
At that time, with joint-stock companies failing to be standardized, dividend and continuous input constituted the major contradiction. It is necessary to persuade others earnestly and kindly and for those shareholders hard to be companion, to let them freely choose their future development, thus seeking for a uniform goal and thinking within the company.

Strengthen the collective funds to expand the production scale. Improve management and quality in the internal and enhance after service for customers, thus ensuring equipment to create optimum benefits for customers and then gaining more popularity for the enterprise and its products. In 1991, a famous enterprise based on Shanghai recommended our company to sell our favorable products in their brand because Wenzhou, the city we are based, would impact our good products and make customers feel trustless. “We need to create our own brand, no matter how hard,” said Yang Yijun.

In order to further improve the management level and product quality, our company now has established a quality assurance system according to ISO9001 international standard.

IV. Common progress:
Thanks to the better foundation in machinery and strong imitation ability of Ruian, the number of manufacturers in Blister Packing Machine has increased to more than 20 over several years. Price-cutting competition reduces product quality, thus forming a vicious circle and further destroying the reputation of Ruian. In order to standardize the market, with the leadership of the municipal Drug Administration, Yang Yiqun has actively participated in the organization of the guild and made his earnest efforts for the management of industrial code of practice in the pursuit of common progress.

V. Pioneering spirit:
Any products will be outdated and markets will be saturate. Elimination is a cruel fact. Only increasing input in technologies and continuous renovation with pioneering spirit can evidence our undefeated presence in the fierce market competition.

Therefore, we have kept input RMB 5,900,000 in technologies for the three years. Apart from a continuous effort in employing college graduates, we have also set up a technical school for the staff and established “Pharmaceutical and Packaging Machinery Research Institution” with hired professionals to specialize in the R&D of high-tech products. Our company launches at least 1-2 new products every year, providing advanced necessary equipment for the “GMP” transformation in China’s pharmaceutical industry. Besides, our products have shared the European market, creating certain social benefits and favorable economic benefits.

Jornen Machinery Co., Ltd.

June 28, 1999