Yizumi Thrives with Profound Accumulation: An Interview with Yizumi Deputy General Manager

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Journalist: Hello, Mr. Li! Could you introduce the current development status of Yizumi?
Li Donghai: Now Yizumi is in a stage of rapid development. 2011 was a year of surprise, as our sales increased over 30% in the market downturn. There were other milestones in last year's development.
First, Yizumi was transformed into a company limited by shares, and we are preparing for IPO (Initial Public Offerings).
Second, we began the phase one construction of Wusha Industrial Park, our third production base in China. When it starts operation, our three domestic manufacturing bases will the meet the demand of annual capacity exceeding 2 billion RMB.
Third, Yizumi purchased the intellectual property of America HPM Corporation and set up North America R&D Center, which was an important step in Yizumi's globalization.

Journalist: What about the sales for Yizumi's Injection Molding Machine Division in 2011? Did it achieve the goal?
Li Donghai: As the largest division of our company, the Injection Molding Machine Division reached the goal set at the beginning of 2011, that is, a 30% sales growth, sales of small & medium machines and servo machines respectively taking up 87% and 65% of our turnover. We aimed to "Focus on servo machines and develop small& medium machines into the best buy". Meanwhile, we intended to develop VIP client resources: 1 Fortune Global 500, 9 listed companies, 5 China's Top Brand Enterprises and 10 provincial top brand enterprises. Also, we proposed to acquire a share in the market segment of medical supplies industry.

Journalist: As we know, domestic and international circumstances were not so favorable in 2011. Capital, cost and RMB exchange rate imposed more pressure on many companies. The whole injection molding machine industry suffered from depression and performance of companies sharply declined. How did Yizumi retain the revenue growth under such adverse circumstances?
Li Donghai: It is not the first time that Yizumi's revenue has risen in a falling market. During the financial crisis 2009, Yizumi still obtained a 25% growth. Years of rapid growth benefited from Yizumi's increasing overall competitiveness which is embodied in the following facts:
First, the initial members of our team are technical elites in injection molding machine industry. They are experienced and skillful at technology research, product innovation and control of product quality, which lays a solid foundation of Yizumi's development. Then we can put more efforts in building and promoting our brand and national sales network
Yizumi is a fast growing company that needs a wealth of talent. We have set up reasonable mechanisms of personnel training, assessment and promotion. Now most of our medium-level managers are promoted from the primary level. In recent years, our company recruits a number of university graduates as management trainees annually. Through two years of training, they have been playing an important part in different posts.
Apart from "bring in" and outside training for personnel, we pay more attention to training in work, encourage everyone to analyze the root cause of a problem or phenomenon and lead everyone to change. Now not only our turnover but also every department, employee and job has to accept quantitative management. Every employee himself, without being told, should know what to improve.
For clients, we emphasize customer experience and any meeting with customers before, during and after sale. We hope to leave a pleasant impression on our clients. Every step in marketing is value-added.
Extensive sales network. By the end of 2010, Yizumi had established a nation-wide sales network covering the northeastern, northern, central, eastern, southern, and southwestern regions of China. Our products are not merely sold in South China now. With the operation of Yizumi East China Headquarters, we can provide better service and technical support for customers in East and North China and widely promote our brand. On the other hand, Yizumi has a number of overseas offices and service centers with business spreading over dozens of countries and regions. Our overseas sales revenue continues growing.
Paying attention to product quality. Yizumi always takes product quality as the life of company. Moreover, apart from a sound product quality security system, the backbones of Yizumi's leaders are former technicians. They instruct and influence staff members whose jobs are related to product quality by their words and deeds. In this way, sense of quality is deeply rooted in the hearts of employees. The system, sense and supervision of leaders ensure the stability of our product quality. Meantime, Yizumi invests heavily in purchasing advanced machining equipment to guarantee high quality of product. For stable quality, many critical parts of our products are self-made.
In-depth development of special markets. Yizumi focuses on not only the sales of general-purpose injection mold machines, but also the intensive market development. Against the opinion that developing special sub-markets is unnecessary, Yizumi adjusts part of the organizational structure and resources distribution, and sets up another technology and production sections that engage in the R&D and production of special model of injection molding machines, changing the sector's current awkward situation that neither the general machine nor the special machine is professional because R&D, manufacture and sale of both models are mixed together. Yizumi's goal is to set up two relatively independent operating systems. In the market of general machines, we try to develop small & medium machines into the best and worthy buy, and large machines into energy-saving sophisticated equipment. Meanwhile, we strive to improve our strength in the sub-markets, topping domestic counterparts even taking a lead in the world. Last year, we successfully gained a share in some sub markets of medical supplies industry and got clients such as Jiangxi Kelun Pharmaceuticals, Zhejiang Tianrui Pharmaceutical Co., Ltd., Wuhan Shuanghe Pharmaceutical Co., Ltd., and Weigao Holding Company Limited.

Journalist: What do you think about the market change this year? What are the possible opportunities and how does Yizumi take them?
Li Donghai: I'm not so positive about the circumstances this year. Uncertain factors in domestic and overseas markets are increasing. Appreciation of RMB further squeezes profits on exports. Still there are opportunities for the injection molding machine market.
First, implementation of the national policy of energy conservation and emission reduction and the urgent demand for energy saving. Meantime, the price of materials and cost of labor force are going up fast. So energy-saving, automatic, efficient and precision injection molding machines will be the trend. Some local governments index the enterprise's electricity consumption to taxes, which will also expand the market of energy-saving injection molding machines. Yizumi will give full scope to its advantage.
Second, stricter customer requirements of the machine quality and service.
Third, growing individual demands of customers, especially those for high-speed and precision injection molding.
Yizumi's rivals in sub-markets have poor strength of cost control, manufacture and brand marketing.

Journalist: Last but not least, could you tell us this year's sales target of Injection Molding Machine Division?
Li Donghai: In recent years, Yizumi's strategic plan has been closely following the changes of market.
Five years ago, Yizumi began to develop the energy conservation technology and has compressively promoted energy-saving servo-pump injection molding machines since 2010. This new type of machine rapidly took up 65% of the sales volume in 2011. At the same time, Yizumi carried out new research on the energy conservation of the heating part of barrel unit. The newly-developed technology was promoted in a small range in 2011 and more widely in 2012.
Quality and service have been part of Yizumi's core competitiveness. We plan to follow the example of "HFO" created by Hass Automation Inc. and set up Yizumi YFO System. At that time, Yizumi will provide greatly improved service and a new service pattern for the industry.
Yizumi has been advocating meeting the customers' individual demands with the most reasonable price, in the shortest time and to the greatest extend possible. So this year we will adjust part of the organizational structure and specially set up marketing department and engineering department. In this way, we can offer professional, accurate and timely service to customers, which is a real market-oriented operation pattern.
In 2010, we established relatively independent systems targeted at developing special sub-markets. We also successfully launched 48 & 72-cavity PET preform injection molding systems and got into the sub-markets of medical supplies industry.