Business Update: Strategic Changes to Strengthen Tianjin Operations

Since 2019, our business in China has experienced a significant and ongoing decline. This has led to an imbalance between our staffing levels and revenue, as well as underused production capacity. The higher tariffs on Chinese exports to the United States starting in 2025 has not helped particularly as US sales make up 15% of our business so creating greater challenges by increasing costs combined with reducing demand locally.

Whilst these challenges are beyond our control it is important that we respond to ensure our continued operations in Tianjin.  The local Tianjin management team has carefully reviewed the situation and made several important organisational changes including merging departments and outsourcing some activities:

• Private label business development will now be managed by Hunter Zhang and integrated into the PD Department. 
• Customer Service functions related to demand forecasting, order management, and BOM data will be merged with the Planning Department to create the new SIOP Department, managed by Rena Bao.
  • Material Handling will move from the Production Department to the Logistics Department under Larry Lv.
     

    We appreciate everyone’s support across the group to fully support these changes so that we can work together to maintain smooth company operations.

    Thank you for your understanding and cooperation.

    Bruno Lebourdais

    COO