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.