Competitive Advantages
Quality is an integral component of our comprehensive system
of checks and balances. Our competitive strengths reflect the
Group's commitment to maintain our position as one of the largest
producers of peanut products in the PRC.
(i) Quality peanut products manufacturer
We are committed to delivering quality peanut products to our
customers consistently. Our stringent quality control and procedures
have helped ensure the quality of our products. In April 2000
and May 2004, the manufacture and sale of our peanut products
was certified as ISO 9002: 1994 and ISO 9001:2000 quality assurance
standards compliant respectively.
We were also awarded the HACCP food safety system certification
in 2002.
(ii) Strong brand name
Our "Dongbao" brand was awarded the status of "Famous
Brand Product" at the 2001 China International Agricultural
Expo and is one of the more recognisable brands of peanut products
in Japan, Korea and the PRC. In addition, five of our peanut products
were certified as "AA" Grade Green Food by the China
Green Food Development Centre and as organic food by the China
Organic Food Certification Centre.
(iii) Strong emphasis on product development
Currently, our Group has more than 20 types of peanut products
to meet the varying needs and changing tastes of our customers.
To stay ahead of competition, we have developed the relevant expertise
and in-depth knowledge to help us keep abreast of the latest changes
in the industry, in addition to the latest trend in consumer preferences.
(iv) Strategic location
We are strategically located in China's agriculturally rich Shandong
province where our Group's primary raw material, peanuts, are
abundant and of high quality. Our close proximity to our sources
of raw materials ensures that delivery cost for our raw materials
is minimized and being a manufacturer of food products, this close
proximity ensures the freshness of our raw materials.
(v) Experienced management team
We have an experienced management team which is familiar with
our business and understands our customers' needs and requirements.
We are led by our founder and Executive Chairman, Mr. Liou Fangyou,
who has more than 11 years of experience in the food production
industry and supported by our Executive Directors who are actively
involved in our day-to-day operations.
(vi) Competitive cost structure
Our strategic location in the agriculturally rich Rushan City,
Shandong, PRC, has provided us with a cost advantage over our
local and foreign competitors. We are able to benefit from the
lower transportation costs as a result of our proximity to our
sources of raw materials and also lower wages costs due to the
lower cost of living in Rushan City.
(vii) Familiarity with the PRC business environment and the
peanut production industry
Our management team consists of mainly PRC nationals who are familiar
with the conditions and operating environments in the PRC. Coupled
with their understanding of local conditions, our Executive Directors
also have an in-depth knowledge of the customers' requirements
and market demand in the peanut product industry in the PRC.
(viii) Status as an export-oriented company
The majority of our peanut products are exported to overseas countries
including Japan, Korea, Russia, Canada and Europe. As a result
of our status as an export-oriented company, both our PRC subsidiaries,
Hualong and Longxiang, enjoy preferential tax treatment. Such
preferential tax treatment gives us a competitive edge over our
domestic competitors.