Mr. Li Jinyuan Reviewed The Past and Look Forward to The Future

Kuala Lumpur, 2005 Jan 23

Mr. LiIn the awarding conference of 2004 Tiens (Malaysia) International Annual Convention, Mr. Li Jinyuan, President and Board Chairman of Tiens Group, delivered an impassioned speech reviewing the development and achievements of Tiens Group in the past 9 years and looking forward to the bright future of Tiens Group



His speech is as follows:

Hello, everyone!

First of all, on behalf of the staff of Tiens Group and business partners from all over the world, I wish to express our warmest greetings and gratitude to the Government and people of Malaysia. We thank you for your strong support on Tiens. Thank you for your assistance and co-operation, the 2004 Tiens International Annual Convention is now successfully held in Malaysia. At the same time, on behalf of our Tiens staff, I welcome our distinguished guests from all over the globe and friends and partners who care and support the Tiens business! My warmest welcome and greetings also go to members of the media who are here to cover this event.

Today, the 2004 Tiens International Annual Convention is auspiciously held to provide an opportunity for Tiens partners from all continents to meet again. I am indeed very happy and proud to see Tiens partners who despite their language and cultural differences, but are committed to one common cause—the Tiens business come together as one big family, a globalized family, and a family which carrying the common aspiration and vision of all mankind. With this convention, I pay my tribute and expectations to you and hope that you can convey this aspiration about our future undertaking to your colleagues, customers, and friends of Tiens, and to every corner of the world.

I have always stressed that no matter where Tiens goes, its dreams and mission have originated from China. The long history and time-honored culture of the Chinese people have been an important part of the development of human civilization. For thousands of years, the hardworking and wisdom of the Chinese people have resulted in a unique culture of health preservation, which comprises a set of systematic and scientific rules on healthcare and symbolizes the very essence of the 5- thousand year old Chinese culture. To carry this vision through, I urged you to discover and promote this valuable cultural heritage of China and to enable more consumers to share this common wealth of mankind which is the foundation of Tiens Group when it was founded in 1995. Since our inception, we have a very focused goal, that is to help influence the Chinese culture of health preservation and to develop the healthcare industry, pursuing health, wealth, peace and development with all mankind. In this premise, we have made research and development and production of quality healthcare products as our core business. In addition, we have constantly strived for vertical integration of our business activities so as to develop a diversified conglomerate closely integrated with the global economic trend. In terms of business model, we have choose direct selling as our marketing platform to propagate the Chinese cultural philosophy and the Tiens best business practices to all people of the world. We are fully aware of the intense competition in the world’s direct selling industry. However, what has enabled Tiens to establish its strong identity and competitive edge in the global direct selling business are due to its rich cultural intension, the aspiration and dedication to repay the world with what it has obtained from the world.

Indeed in order to develop and grow further, we must not forget the past. The nine years from 1995 to 2004 have been truly remarkable for Tiens. We have transformed ourselves from nothing to a multinational conglomerate; increased our production from a single production line to over a dozen production bases and expanded our presence to five continents and scores of regional markets. Our workforce has increased to a highly qualified international team of over 4500 from the handful of pioneering staff. Our business scope has expanded from a limited and negligible base to a steady global consumer base of some 9 million spanning more than 180 nations and regions. The road of development of Tiens is a journey of glory for a group of pioneers. In addition, Tiens was successfully listed on the NASDAQ in the United States in 2003. In 2004, we laid the foundation for the Tiens Yihai Healthcare Industrial Park in Shanghai. All these achievements are the fruits of labor by all Tiens people. Tiens people have indeed come a long way and we shall continue our journey with greater pride, blessings and determination. The challenges and setbacks encountered by Tiens people have molded a distinct Tiens Identity. It is this Tiens Identity which has powered the Group to grow twice faster than the industry average. The 90 Chinese flags which are raised simultaneously in various parts of the world on every Monday morning bear testimony to this unique identity. This identity has enabled Tiens to become a common business for some 9 million people in the world.

Once I was asked what gives Tiens the motive force. I answered that it is faith and innovation that give us unexhausted motive force. The 21st century is a new era of globalization. Tiens partners are growing in tandem with times and are innovative in creating unique business development theories and model. In 2004 we defined our global development strategic direction by developing a totally new corporate development model based on the platform of network information technology, integrated global logistics, information flow and human resources flow to build an electronic direct selling network and a platform for international capital flow. The Six-Network Interaction and New Replacement Theory advocated by the Group represent the management theoretical innovations created by Tiens. Guided by this new theory, Tiens Group is bringing its corporate concept, corporate culture and quality products and services to every corner of the world in an even faster pace. The Six-Network Interaction and New Replacement Theory mark a quantum leap and new development in the theoretical development of the direct selling industry.

Propelled by this theoretical innovation, Tiens Group achieved sterling performance in 2004. The Group’s global sales revenue for the year recorded a hefty increase and the Tiens global information integration project comprising the ERP, CRM and PORTAL systems was commissioned during the year. The Tiens Yihai Healthcare Industrial Park in Shanghai costing US$ 500 million took off in the same year while the Tiens Corporate Image project in the Greater Chinese region was launched in a big way. Apart from this, numerous branch companies and franchise stores carrying the Tiens brand has began operating successfully throughout the world. Objectively, in terms of the scale and speed of the construction of sales networks, Tiens is undoubtedly one of the market leaders. In terms of speed and intensity of capital expansion, Tiens has demonstrated its potentials and determination.

In addition, the Direct Selling Law of China is expected to be officially introduced in 2005. As the first Chinese enterprise to have successfully established its foothold in the overseas market, Tiens will have an opportunity to once again be a market leader in a more matured and wider market. The year 2005 will also mark a new beginning for Tiens capital expansion. The Group will undertake a series of capital expansion measures including listing on the main board of the American stock exchange, multi-point and synchronized entry into the world’s capital market, the import of strategic investments, and improvement of its financing system. All these measures are aimed to promote closer dialogue and interaction between Tiens and the international capital market. At this juncture, we wish to reaffirm the significance of today’s Tiens International Annual Convention as it marks an important milestone in the corporate history of the group.

Over the past year, the management model of Tiens shifted from centralized management to group management and gradually moved from group management to regional management by improving and fine-tuning our independent settlement system. This is a major experiment in the internal management of the group. In future, we shall further improve our management on this basis to further fine tune the settlement procedures and system and enhance our logistics, financial computerization, procedures management and optimization of human resources to provide a strong backup for the Group’s healthy and rapid development.

As I have repeatedly mentioned to you, the Company will strive to achieve listing in multiple nations. Efforts in this respect are being actively carried out. In September 2003, Tiens was successfully listed on the NASDAQ in the United States and our goal of obtaining listing on the American Stock Exchange (AMEX) in early 2005 is soon becoming a reality. In future, we shall intensify our efforts to achieve our strategic goal of being listed on the stock exchanges in Europe, Southeast Asia, North America, South America, and other major bourses in the world in order to create and enhance a development model tied to regional interest. Tiens shall strive to share our growth and development with every Tiens people through innovations in our management system.

The excellent cultural of health preservation of the Chinese people and the enterprising passion of Tiens will help mankind to realize their perpetual dream for health and wealth. There is ample room for all and Tiens partners will certainly play an important role in this. We shall always uphold our corporate philosophy of serving society by restoring health to mankind and become part of the economic globalization process. As long as we are totally committed and work in unity, we shall achieve our goal of Tiens entry into the Fortune 500 in the world.

Ladies and Gentlemen, distinguished guests, the significance in holding 2004 Tiens (Malaysia) International Annual Convention in is profound. When we reviewed our past and look forward to the future, we have great confidence and passion towards our cause. Let’s wish each other healthy and wealthy and prosper together in peace and harmony. We hope that Tiens people will carry on our glorious tradition and achieve greater heights of excellence.

Lastly, I once again thank staff of Tiens and those who have helped us in one way or the other in organizing this convention and I wish the friendship between Malaysia and China flourishing. Thank you very much.


Submitted by: Yan Dong from Tiens International Media Group
Jan. 22, 2005