To: Rui’an Industrial and Economic Committee
Under the leadership of General Manager Yang Yijun and guided by the quality policy of “Strict management for the Jiangnan image, demanding requirements for an international brand,” Jiangnan Packaging Machinery Co., Ltd. has forged ahead with a strong entrepreneurial and pioneering spirit. Thanks to the joint efforts of our staff, along with the invaluable support and guidance from government departments and higher authorities, our company achieved a gross industrial output value exceeding RMB 40 million between 1996 and 1998, generating over RMB 10 million in total taxes and profits during these three years. We project that our 1999 output will reach RMB 20 million, yielding RMB 6 million in taxes and profits. Over the years, our accumulated foreign exchange earnings from exports have reached RMB 15 million.
Despite operating in the foundational machinery industry and facing the dual challenges of the Southeast Asian economic downturn and a domestic market slump, we have achieved these remarkable results. The key factors contributing to our success are as follows:
I. Seizing Historical Opportunities
General Manager Yang Yijun began his entrepreneurial journey at the age of 23, working tirelessly to overcome numerous hardships and challenges. Ultimately, the implementation of the national reform and opening-up policy provided the historical opportunities necessary for the business to truly take flight.
II. Market-Driven Innovation
Through extensive market research, Mr. Yang identified and capitalized on key industry demands. With immense perseverance and strong willpower, he dedicated five years of hard work to develop a multifunctional Blister Packaging Machine successfully. This product secured several national patents and became a pioneer in China’s domestic market. It not only helped the country save a significant amount of foreign exchange but also allowed our company to occupy a commanding height in the industry.
III. Corporate Governance and Brand Building
In the early days, as joint-stock companies were not fully standardized, conflicts often arose between distributing dividends and reinvesting capital into the business. We addressed this by communicating earnestly and patiently with shareholders. Those whose visions diverged were allowed to exit freely, ensuring a unified goal and mindset within the company.
By consolidating our collective funds, we expanded our production scale. Internally, we enhanced management and product quality; externally, we elevated our after-sales service to ensure our equipment generated optimal benefits for our customers, thereby boosting our corporate reputation. In 1991, a well-known Shanghai-based enterprise offered to sell our superior products under its brand, arguing that our Wenzhou brand might negatively impact customer trust. However, Mr. Yang firmly stated, “No matter how difficult it is, we must create our own brand.” Today, to further elevate our management standards and product quality, our company has established a comprehensive quality assurance system in accordance with ISO9001 international standards.
IV. Driving Industry Standardization and Common Progress
Due to Rui’an’s strong foundation in machinery and rapid imitation capabilities, the number of blister packaging machine manufacturers in the region surged to over 20 within a few years. Rampant price-cutting led to a decline in product quality, creating a vicious cycle that threatened to damage Rui’an’s industrial reputation. To standardize the market, under the leadership of the municipal Drug Administration, Mr. Yang actively participated in the establishment of an industry guild. He has devoted earnest effort to formulating an industrial code of practice, aiming for the healthy and mutual progress of the entire local industry.
V. Cultivating a Pioneering Spirit and Technological R&D
All products eventually become obsolete, and markets will inevitably saturate. Market elimination is a cruel reality. To maintain an undefeated presence in fierce market competition, we must continually increase our technological investments and innovate with a pioneering spirit.
Consequently, we invested RMB 5.9 million in technology over the past three years. In addition to consistently recruiting college graduates, we established an internal technical school for our staff and founded the “Pharmaceutical and Packaging Machinery Research Institution.” By hiring dedicated professionals to focus on the R&D of high-tech products, our company successfully launches at least one to two new products annually. These innovations provide essential, advanced equipment for the “GMP” transformation of China’s pharmaceutical industry. Furthermore, our products have successfully penetrated the European market, generating substantial social and economic benefits.
June 28, 1999