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The Success Story of Pointrole

 
TRANSFORMING FROM A SMALL PLAYER INTO A BIG ONE

Sucess Comes From Where You Are: 

The city of Wuhan is embedded in the beautiful landscape of southern China, crowned as “A Jewel of the Earth”. This can be easily transferred to the toner industry: the city is home to more than 10 well-known toner factories, supplying one-third of the toner in the whole country, and attracting both OEMs and aftermarket consumables makers with its resellers or distributors.

Wuhan Pointrole Technology Co., Ltd (Pointrole) is one of the best-known successful enterprises in Wuhan that has be- come one of the “jewels” in the region.

Pointrole was set up in 2003 as Wuhan Pointrole Information Technology Co., Ltd. with fewer than 10 employees. by 2014, the company had grown enough to find a place in the first group of successfully launched “New Third board” or NEEQ. What is the journey like from a small company to one playing an influential role in the industry? 

DAre to DreAm Big, PrePAre for the JoUrNeY

Pointrole began as a small company only selling toner pow- der. Mr. Wang Linan, the chairman of the company wished in the ‘90s that he had a team of researchers to develop its own high-quality products to change the market that was filled with poor quality goods. In September 2003, they purchased a state-owned enterprise.

Remembering the past of Pointrole, Mr. Wang gets emotion- al. He says those were tough days when there was only one production line with 80 tons production capacity, less than 10 employees, no intellectual property, no technology, out-dat- ed equipment, and unstable product quality, all leading to lots of returned purchased items.

This continued until 2005, when Pointrole developed its own R&D department, purchased research equipment, hired high tech re- search personnel, and struck alliances with research institutes from several universities, to develop new quality products. It was only then that the market started to open up for the company.

From then on, the growth came naturally. In 2010, Pintrole was awarded the title of “New high-tech enterprise at the State level.” In 2011, Pointrole partnered with Marubeni from Japan to set up bao- hong—a company for the production of color toner. In 2012, bao Ling was founded as a subsidiary of Pointrole, to focus on toner resin, an important component of making quality toner products. In 2013, Pointrole restructured and Pointrole Technology Company Limited was founded. In 2014, Pointrole entered the “new third board.”

Over these ten years of development Pointrole has changed: it has become bigger and better. The company currently

POINTROLE

resides in a local industry park, with its facilities spanning 19,630 square meters and including three toner production lines from Toshiba, Japan, one Alpine toner production line from Germa- ny, and three self-developed toner production lines. It has 30 plus technologies with national patents and six leading technol- ogy patents at the international level, and more than 100 ma- tured products on the market. These products are applied to a variety of laser printer models, copiers, and multi-functional de- vices, and distributed to 28 countries/regions around the globe.

Mr. Wang proudly remarks, “Pointrole is no longer the small company of 10 employees. We are stepping up to the plate to make the company a much better place”.

BecomiNg A PUBlic trADeD comPANY iS JUSt the BegiNNiNg of the JoUrNeY
Pointrole has made a tremendous effort to become one of the first group of companies in Hanyan region to enter the “new third board”. It is a honor for a small company to have grown so much so fast. As noted by Mr. Wang, there are various rea- sons for companies to go public: some want to get more for- malized; some want to grow faster; some want to raise capital; some want to add one more card to its profile. For Pointrole, going public is just the start of a long journey.

“Our future,” says Mr. Wang, “is to focus on toner produc- tion by adding more advanced equipment and more innova- tion to play a leading role in the industry, providing the best quality products and be the top sellers in the marketplace; as well as to grow upstream in the industry by building a stable raw material production base, and also to grow downstream by improving brand-building and e-commerce development, and diversifying the product lines.”

Now that it has become part of the fast-changing capital market, Pintrole hasn’t loosened up its structural priorities. One is to actively push for an equity-based incentive plan, envisag- ing executives and core staff becoming shareholders; and the other is to introduce new investors and form strategic partner- ships. by issuing new stock, the company has successfully raised $20 million thus far to secure funding for its further development.

Faced with capital market fluctuations, Pintrole feels it is the company’s R&D and product performance where its true val- ue lies. According to Mr. Wang, the company will continue to focus on realizing its full potential, aiming to create a compre- hensive industry chain, utilizings strategic alliances to improve its competitiveness and profitability, and generate a good re- turn for investors. 

emBrAce comPetitioN, AvoiD SlUggiShNeSS

In today’s toner market in China, there are numerous produc- tion facilities, many of them small-scaled, with intense compe- tition. “In such a market environment,” Mr. Wang says, “one should never dare to let down their guard, and,” he adds, “al- though we have the strong technical development capacity that gives us a competitive advantage, we risk losing market share and facing a decline in our profits if we cannot keep up with new innovative products, scale up production capacity, promote our products effectively and create more sales chan- nels in this fierce market competition.

Pointrole has already 80 kinds of toner products on the market that can apply to 10 different brands of laser printers, digital copier, and analog copier. The company has also been ISO9001-2000 certified. Quality is the key, and only survival kit the business can’t afford to lose.

The most representative products of Pointrole are the AR se- ries and LJ series, which represent the company’s printer toner and copier toner products. The LJ series toner is mainly used in brother and Lenovo printers, while the AR series is used in Ricoh, Sharp, Toshiba copiers as well as other brands.

baotelong, for its part, produces polyester resin, with a stable performance and environmentally friendly product, awarded gobal certification such as REACH, MSDS, ROHS, and AMES, and sold across the globe.

BUilDiNg AN iNDUStrY chAiN, SettiNg the BAr high

To build an industry chain of consumables is an ultimate goal for many enterprises, as seen recently with the mergers and acquisitions in the printing consumables industry.

In the toner and associated fields, demand in China is grow- ing at an annual rate of 20%, which means a robust growth po- tential. These are the market fundamentals in which Pointrole operates, and with its new third board listing, it now has the financial means to build an industry chain in the printing field.

It is a chaos in the printing consumables market in China, due to its lack of standardized management, overall poor product quality and low-pricing practices that are ruining the market order and affecting the industry’s healthy devel- opment. Pointrole hopes more consumables will be made in China, with stronger collaboration between research and de- velopment institutions and domestic enterprises, to produce unique China featured toner products, and to avoid blind market competition. Pointrole’s own recent technical innova- tion—“high-speed, low carbon green powder”—is favored by customers both at home and abroad. High-speed toner has been a priority R&D area for Pointrole in recent years.

When talking about Pointrole’s long-term development tar- get, Mr. Wang says that within the next 3-5 years, Pointrole is to become the largest toner manufacturing base in central China, and to form a toner manufacturing industry chain. In upstream development, the priorities are stabilizing raw mate- rial suppliers cooperation and collaborating on a toner resin production base. In downstream, our goals are to manufac- ture brand products, design finished toner consumables pro- duction lines by using our strong technical capacity, via 1+N model to streamline toner productions among the small and medium toner factories, to adopt a one-stop solution by im- plementing purchasing management, R&D management, production management, quality control management, sale and distribution management, and to reach our target of 8,000 tons production per year.

Over the last 10 years, we have taken a big step from being a small company to becoming a large corporation. In the next 10 years, Pointole’s aim is to build an industry chain of toner manu- facturing. Going public is just the beginning of the long success- ful journey we will hopefully witness in the years to come. 

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