Tianshi Today

Report on the Welcome Banquet for
The Second (2006) Tiens Global Strategic Alliance Conference &
Tiens Group Signing Ceremony with Strategic Partners

On Mar. 14, it is full of sunshine. An important conference of Tiens Group was held as scheduled on the bank of Swan Lake, Wuqing, Tianjin. At six thirty p.m., the presider declared the beginning of Welcome Banquet for the Second (2006) Tiens Global Strategic Alliance Conference & Tiens Group Signing Ceremony with Strategic Partners.

The present senior leaders of Tiens Group included: Mr. Li Jinyuan, Board Chairman and CEO of Tiens Group, Mr. Yan Yupeng, Vice President of Tiens Group and General Manager of Tiens Global Marketing Center, Mr. Liang Hongxin, Vice President of Tiens Group and General Manager of Tiens Global Logistics Center, Mr. Han Fusen, Vice President of Tiens Group and General Manager of Tiens Research and Development Center, and Mr. Wang Chun, Vice President of Tiens Group and Tiens Engineering Command Center.

Mr. Li Jinyuan, Board Chairman and CEO of Tiens Group, first delivered a toast speech. In heated applause, Mr. Li Jinyuan strode on the stage, and extended his sincere gratitude for the honored guests from world-famous and nation-famous enterprises. Mr. Li Jinyuan said in his speech:

“I am glad standing here. Tiens Group remembers old friends and welcomes new friends. We are forever friends in the way of development. Today, friends from all over the world and various provinces and cities all over the country are leaders of enterprises. I sincerely thank you for your coming. Wish you success, happiness and all the best. Cheers for our friendship!”

During the following free time, Mr. Li Jinyuan with the crystal cup full of friendship talked agreeably with guests abroad and at home, and the guests also expressed their blessings for Mr. Li Jinyuan and good wishes for Tiens Group. Other vice presidents of Tiens Group showed their welcome for present guests.

Finally, the Welcome Banquet of the Second (2006) Tiens Global Strategic Alliance Conference & Tiens Group Signing Ceremony with Strategic Partners came to an end in melodious music, joyful communication and happy cheers.

2nd Day (March 15, 2006)

At 9 o’clock a.m. on Mar. 15, 2006, with the guests being seated, the Second (2006) Tiens Global Strategic Alliance Conference & Tiens Group Signing Ceremony with Strategic Partners opened its prelude in grand music. Those who participated the conference included governmental leaders, manufacturer representatives from all over the world and various provinces and cities all over the country, and friends from the media except the senior leaders of Tiens Group.

The video of Tiens Today was first played, which exhibited the development of Tiens Group, expounded its strength and running scale, and perfectly annotated its corporate culture.

Independent innovation is the backbone and footstone of enterprises. Tiens Group’s growing into an international company attracting the attention of the world and having rapid development with its proprietary brand has its origin in Tiens Group’s innovation of its brand, business pattern and marketing. Mr. Li Jinyuan, Board Chairman and CEO of Tiens Group, had much to say about this. In his speech, he explained the reason of Tiens success in the changing economic environment, and showed his sincere welcome for the present representatives from enterprises and firm confidence in their cooperation. He said, “On behalf of Tiens Group, I’d like to express my gratitude for leaders, partners, media friends who support Tiens Group. We thank new friends, and remember old friends. We are forever friends of cooperation”, which shows Mr. Li’s friendship for them. Then, President Li Jinyuan delivered a theme speech on Tiens Group’s strategic development.

President Li’s speech aroused heated applause. The present leaders and guests in succession stepped on the stage to express their blessings for Mr. Li Jinyuan and good wishes for Tiens Group. Mr. Zhang Fenglou, Director of China Healthcare Association mentioned in his speech, “Chinese national brands are going overseas, and Tiens Group has achieved a striking success on this aspect. China Healthcare Association will support enterprises such as Tiens Group to enter the world market.” Mr. Wang Shupei, Secretary of the Communist Party Wuqing District Committee of Tianjin, also showed that Tiens Group is the pride of Wuqing, and Wuqing would support the development of Tiens Group. Mr. Zhang Yuanlong, Vice Director of the Standing Committee of the Tianjin Municipal People’s Congress and Chairman of Tianjin Federation of Industry and Commerce, said that, “Tiens Group with a unique way of marketing and philosophy of common prosperity has introduced Chinese products to the world, and invested RMB 430 million in the welfare cause. The enterprises present at the conference have the best choice to cooperate with Tiens Group and can make a rapid progress to achieve splendor in future.”

In the enthusiastic atmosphere, the present enterprise representatives stepped on the stage to express their excited feeling. Cril Jamot, Internatioanl Marketing Director of Parfurm D’ Image, said, “Tiens is a door to Chinese companies for foreign enterprises. Tiens has a great power of marketing and reliable management system, and it is a reliable partner. During the days of cooperation, I have had a better understanding of Tiens, which is an international enterprise without sectarian bias.” He said in a humorous way, “it is said that China will go to the moon in a few years. If possible, Tiens will open its supermarket in the moon soon.” From the words, we can see the foreign enterprises’ confidence in Tiens’ future development.

Domestic representatives thought that Tiens Group’s corporate concept of “bringing health to mankind while benefiting the society; repaying the nation with industrial development” would promote a good cooperation with other enterprises. Mr. Sun Tianxue, Manager of Penglai Huakang Health Product Co. Ltd., said, “Tiens has creatively developed the Six-interactive Networks theory on the foundation of 5000-year health preservation culture, and driven the development of many mid and small companies. Penglai Huakang Health Product Co. Ltd has realized its rapid development since its cooperation with Tiens Group. Tiens Group belongs to the country and the world. We will cooperate with Tiens forever, and serve Tiens forever.”

After all the speeches, a grand signing ceremony was held, and nine world-famous and nation-famous enterprises signed agreements with Tiens Group.

It is a pioneering work for Tiens Group to gather the manufacturers from all over the world. Tiens will convoke such conferences to provide a platform for all and introduce more products as well. Tiens Group avails of the opportunity to introduce more products with high quality and promote the opening of supermarkets. Tiens Group hopes the meeting with representatives in the next year.

Report on Press Happy Hour

At one thirty p.m. on Mar. 15, 2006, Press Happy Hour for the Second (2006) Tiens Global Strategic Alliance Conference & Tiens Group Signing Ceremony with Strategic Partners was held. Tiens Board Chairman & CEO Li Jinyuan, Tiens Vice President Yan Yupeng, Tiens Vice President Yang Shukun, Tiens Vice President Han Fusen and other Tiens leaders attended the meeting. The present cooperative manufacturers included representatives from Shanxi Rui Fu Lai Co., Penglai Huakang Health Product Co., Ltd., Capsugel Ltd of the United States, Parfurm D’ Image of France, and so on. Xinhua News Agency, Chinese People’s Broadcasting Station, CCTV, People’s Daily, Guangming Daily, The Economic Observer, Workers’ Daily, China Economic Times, China Securities Journal, China Enterprise News, China Business News, China Consumer Journal, China Quality Daily, China Food Newspaper, China Industry & Commerce News, the magazine of China’s Quality Long March, People’s Daily Online and other famous websites and media also attended it. At the beginning, Mr. Han Fusen, Tiens Vice President & General Manager of Tiens Research and Development Center, simply introduced the cooperation between Parfurm D’ Image of France and Tiens Group. After the introduction, reporters from the media began to raise questions, and President Li answered the questions with determination and enthusiasm.

Reporter from the Economic Observer firstly asked: why did Capsugel Ltd choose Tiens Group to cooperate with?

Representative from Capsugel Ltd answered: firstly, both sides share the same idea on quality; secondly, the two companies are both multinational corporations, so we will have more cooperation space and opportunities in future; thirdly, we has offered a special new product with patent technique for this cooperation with Tiens. This kind of product can develop the efficacy of wellness food better. At present, only a Japanese company and Capsugel Ltd possess this kind of technique in the whole world. So, Capsugel Ltd can offer the best material, the best product, the best technique now, and the security of the product is top-ranking. As for the reason of choosing Tiens, it was because of Tiens’ great power of influence.

Reporter from Workers’ Daily asked: how many kinds of OEM products does Tiens have?
Tiens Vice President Han Fusen answered: the OEM products of Tiens accounts for 80%, which are all high-class products with the best quality from the best manufacturers in the world. It reveals the product development idea of Tiens Group.

Reporter from China Business News asked: why did Capsugel Ltd choose the brand of Tiens and what can it bring to Capsugel Ltd?
Representative from Capsugel Ltd answered: Capsugel Ltd has four divisions, which are Division of Pharmaceuticals for Human Use, Division of Animal Pharmaceuticals, Division of Consumer Goods, and Division of Capsule respectively. Cooperating with Tiens Group is because of Tiens’ running scale and great impact in the world. In future, Capsugel Ltd will develop more products and run business in China. So, Capsugel Ltd will have more chances to cooperate with Tiens Group.

Reporter from the Economic Observer asked: how will Tiens Group consider the problem of cost during the cooperation with French enterprises, and how can Tiens control its cost?
Tiens Chairman &CEO Li Jinyuan answered: Tiens’ independent innovation in the world is to create self-owned brand relying on sales, to put other brands into our own sales channels. We have developed from the original pattern of face-to-face sales to the present marketing support of over 50,000 monopoly stores. Many large manufacturers have seen this advantage and choose to join in Tiens sales channels by “marrying” their products to Tiens, which is very favorable for Tiens. Although the management cost of France enterprises is expensive, its high and new technology is greatly ensure the quality of products, which can be helpful for us to provide high-quality products and to meet the requirement more deeply. This can not only promote the combination of sales and operation, but also enhance Tiens’ global reputation and core values.
What’s more, Tiens Group will broaden its product line, which mainly included wellness products, and expand the product line of daily chemical products. We will introduce daily consumer products, bedding products, and kitchen utensils into the product system of Tiens. In addition, products with the advantage of Chinese silk, such as women’s underclothes and silk stockings, will also be added to the structure of Tiens products to be shared by the people in the whole world. We have also considered some famous Chinese brand of children wear, and have chosen three of them to be the members of our strategic alliance.

Reporter from China Reform Daily asked: Tiens has started the strategic transfer from independent research and development to sale, is Tiens planning to develop towards this direction? What’s more, what is Tiens’ attitude to the direct selling law?
Tiens Chairman & CEO Li Jinyuan answered: Tiens can adapt well to each country’s economy, laws, culture, and so on. Market is the forepart, and production and research is the end side. The forepart should drive the end side, so the core values of sales can be shown. It would be limited if we only depend on Tiens’ own research and development team. Although we have new industrial parks, it still cannot meet all requirements of Tiens in the future. Now, some enterprises have only the ability of research and development, but cannot change it into products. However, Tiens Group with its sales innovation and innovative brand can turn products into goods through its smooth sales channels in the globe.
The direct selling law is Chinese government’s commitment to the whole world, so we will take a welcome attitude to it and execute it out and out. The Chinese market is huge, which can only be explored by the people with foresight.

Reporter from Chinese People’s Broadcasting Station asked: how can the direct selling supermarket be interactive? Moreover, would you please explain the theory of Six-network Interaction and New Replacement Theory?
Tiens Chairman &CEO Li Jinyuan answered: the resource integration in the Six-network Interaction is interactive, transpositional, and multinational. As for the principle of the Six-network Interaction, International Logistics Network is a distribution & supplement system; International Education Network is the front of market; marketing system is a kind of human resource integration in the globe; information network is an important communication tool in the society; International Capital Flow Network is the foundation of the impetus; and International Travel Network is a kind of innovation, which arranges and combines the traveling resource. Product is the core of the replacement. Replacing the high-quality products of each country and distributing products by the International Logistics Network is the powerful support of our supermarket. Now we are thinking to add two or three new networks into the Six-network Interaction. Direct selling supermarket is a new concept, which is paid use of monopoly stores with the support of Tiens’ logistics. Mangy famous international banks want to cooperate with Tiens, and Tiens will choose one from them, which can ensure the credibility of TIens supermarkets. In the supermarket, the diversification of products is necessary. At least 8,000 kinds of products will be developed or introduced this year, and 20,000 next year. These products must be of high quality and must be able to cover many fields. OEM, ODM and OBM will very important to the operation of the supermarket.

Reporter from Guangming Daily asked: what’s the situation of students in Tiens College? Aiming at the education problem, has Tiens College prepared any program?
Tiens Chairman &CEO Li Jinyuan answered: Tiens started from Aug. 1995. In 1996, it began to repay the society with a part of its development capital, and began to set up primary schools and middle schools in poor areas, and to dig wells for local people. In Sep. 1996, we broke earth for Tiens College, and the general investment has been 3.7 hundred million. Earning money is not our purpose of founding Tiens College, which began to recruit students facing to the whole society with quite low fees as a private college. Teachers of Tiens College are very excellent, so the level of students can be greatly improved. Most of graduates can take up good occupations, and have both ability and moral integrity. Till now, Tiens Group has provided all money to support the college, which has embodied Tiens’ gratitude to the motherland and repayment to the society. In future, Tiens will increase the investment in the college to build it into an internationalized university.

In the meeting, there were also other reporters asking some questions, which were answered by Tiens Chairman Li Jinyuan. The Press Happy Hour was satisfactorily finished in a harmonious atmosphere.

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