10 July 2009
Success story of domestic sale by Hong Kong Company – Trauson (Jiangsu) Medical Instrument Co Ltd
Interview with Qian Fuqing, Board Chairman, Trauson (Jiangsu) Medical Instrument Co Ltd
1. Corporate profile
Trauson (Hong Kong) Development Co Ltd has invested in two operations in Changzhou, Jiangsu, namely Orthmed Medical Instrument Co Ltd and Trauson (Jiangsu) Medical Instrument Co Ltd, both of which specialise in producing orthopaedic implants. While Orthmed products are primarily for export to foreign markets, Trauson products are geared towards the domestic market.
Company chairman Mr Qian Fuqing.
Founded in 1986, Orthmed Medical Instrument Co Ltd specialises in the research, design, manufacturing and sales of orthopaedic implants and surgical instruments. It is a wholly Hong Kong-owned enterprise with a registered capital of US$5.3 million. Located in the Xinbei district of Changzhou, Orthmed occupies a total area of 40,000 sqm. On 18 June 2006, the company became the first approved supplier of Stryker Orthopaedics in China.
Trauson (Jiangsu) Medical Instrument Co Ltd is situated in Niutang Town of Changzhou. It began as Wujin No. 3 Medical Equipment Factory in June 1986 and became a shareholding enterprise in 2003. In 2005, the enterprise was acquired by Trauson (Hong Kong) Development Co Ltd and became a wholly Hong Kong-owned enterprise with the new name, Trauson (Jiangsu) Medical Instrument Co Ltd. Since then, it has taken the lead in China's orthopaedic instruments industry. In 2007, Trauson was named a Famous Chinese Brand, making the company the first one in the orthopaedic industry to receive such a designation. Furthermore, the company was recognised as a state-level high-tech enterprise in June 2008.
The offices of Trauson (Jiangsu) Medical Instrument Co Ltd. A Swiss chamber of commerce visiting Trauson (Jiangsu) Medical Instrument Co Ltd.
2. Business development
Setting its sights on export sales and international market development, Orthmed works closely with internationally renowned professional companies and constantly strives to promote international sales. For instance, the company has signed a 5-year agreement with an internationally renowned medical institution. Thanks to reliable quality assurance on its products, longer term sales orders are secured and the company is able to keep its current sales volume at a steady growth rate of 40%.
As for the domestic market, Trauson (Jiangsu) Medical Instrument Co Ltd has developed a stable network of 300 distributors across the mainland. According to company sales policy, each distributor must achieve a 30% gain in annual sales volume. In order to ensure steady growth, the company supplies 10% new products to the distributors every year. Trauson further establishes its name by maintaining close ties with academic organisations, sponsoring and organising learning courses on all kinds of injury and the spinal column, as well as establishing continuing education courses for clinical orthopaedic doctors. With a good name in the industry, Trauson's business has experienced nothing but growth; new distributors are being pulled in like a magnet.
Manufacturing equipment Manufacturing equipment
Relying on the support of strong professional groups in fields such as biomechanics, clinical medicine and materials research, the two companies have been granted 35 China patents in product R&D, new technologies and core technologies. Product categories include cranial surgery, maxillofacial surgery, upper limbs, lower limbs, surgery, traumatic limb fracture, spinal column injury and orthopaedics; totalling over 2000 specific models and all with CE and FDA approval. The service network currently spans over 30 provinces and municipalities in China and 16 countries around the world.
3. Dual tax incentives
According to relevant regulations, both Orthmed and Trauson are eligible for two-year income tax exemption and three-year VAT (value-added tax) reduction by half.
Plaque of recognition for Trauson products.
In addition, Mr Qian pointed out that their R&D team is comprised of authoritative figures in the industry, "While a good management team brings magic to success, an authoritative R&D team is key to maintaining positive development."
The current economic crisis also brought forth opportunities for Trauson. The company is actively pursuing mergers and acquisitions and plans to be listed in Hong Kong in the near future. Mr Qian believes that now is the golden opportunity to buy stocks, because one can make better judgments of a given enterprise by assessing its resilience and core values in a market like this.
from special correspondent Tang Juan, Jiangsu