Current China Printing Market and Technologies Haixiang Shen President of China Printing (Group) Corporation Sept 12th, 2005.

Current China Printing Market and Technologies

Haixiang Shen

President of China Printing (Group) CorporationSept 12th, 2005

Current China Printing Market and Technologies

• Survey on CTP Technologies Conducted by Printing Manager CTP Issue

& Digital Printing Magazine, July, 2005

• Survey on Digital Printing Equipment and Technology Conducted by Digital Printing Magazine, Sept., 2005

• Survey on TOP 100 Chinese Printing Enterprises Conducted by Printing Manager Magazine, July, 2005

• Survey on Commercial Web Press Conducted by Printing Manager Magazine, April. '05

More surveys on Chinese Printing Industry could be found in Annual Report by KeyinPrint Media

1.CTP in China CTP System installation in China through the five

surveys from 2001 to 2004

6186

143

226

346

050

100150200250300350

1.CTP in China

Marketing share by different companies in China

Creo28%

Agfa24%

Heidelberg10%

Others24%

DS14%

Comany Cero AgFa DS Heidelberg Other

CTP Installation 97 82 50 35 82

Total : 346

Marketing share of newspaper and commercial CTP respectively

Commercial CTP78%

Newspaper CTP22%

Commercial CTP Newspaper CTP

1.CTP in China

Comparison between commercial and newspaper CTP in the five surveys

4120

63

23

117

26

186

40

243

69

0

50

100

150

200

250

Commerci al CTP

Newspaper CTP

1.CTP in China

Marketing share of different technologies

Thermal CTP,193, 61%

Visible CTP,103, 33%

CDI, 5, 2%

CTcP, 5, 2% Others, 6,2%

1.CTP in China

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

Key Elements influencing ChinesePrinters Purchasing CTP Systems

62.50%56.30%

18.80%

37.50%

62.50%

3.10%

46.90%

0%

10%

20%

30%

40%

50%

60%

70%

1.CTP in China

Chinese Printers' CTP SystemsPurchasing Plans

Within 6 months,4.40%

6-12 months, 21.70%

12-24 months,47.90%

24-36 months, 13%

above 36 months,13%

1.CTP in China

Chinese Printers CTP Plates 'Choices

VisuablePlates,31.80%

Thermal,69.20%

1.CTP in China

Chinese Printers CTP Plates Choices

Fuji Starlight,30% KPG, 34%

AGFA, 36%

1.CTP in China

2. The Status of Digital Printing in China Digital Printing Installation from 2002 to Sept.2005

53

105

250

463

0

100

200

300

400

500

2002 2003 2004 2005Sets

Total: 871 sets installed

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

Number Of New Digital Print EnterprisesIncreases Over the Years

0%

5%

10%

15%

20%

25%

1994 1995 1998 1999 2000 2001 2002 2003 2004

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

2. The Status of Digital Printing in China

Digital Printing in ChinaGeographic Allocation

others25%

North east20%

East25%

South east30%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

2. The Status of Digital Printing in China

62.50%

23.20%

66.10%

28.60%

51.80%57.10%

44.60%

0%

10%

20%

30%

40%

50%

60%

70%

commercial documents

construction drawings and files

advertisement

variable data print

print on demand

Personalized printothers

Major Applications of Digital Printing Equipmentin China

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

The Utilization Rate of Installed Digital Printing Equipment

about 80%,38.1%About 50%,

38.1%

underloaded<30%, 12.5%

Overloaded7.1%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

2. The Status of Digital Printing in China

Intention to Open Multiple Shops

no13%

yes39%

depends48%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

2. The Status of Digital Printing in China

92% Indicate Confidence in the Future of

Digital Printing in China

Strongconfidence,

34.60%

Noconfidence,

7.70%Normal , 0

Moderateconfidence ,

57.70%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

2. The Status of Digital Printing in China

2.2.1 Four major trends of digital print in China

a. Franchise become ones of the most important business modes for Chinese digital print players

b. Generating new profits by providing value-added services to customers

c. Quick response and network services based on digital, network, and database technologies becoming one of the core competitive advantages for digital print enterprises.

d. Digital print more and more integrated with traditional print, becoming another value-added service of the traditional printing industry.

2.2.Outlook to the Future Development of Digital Print in China

2.2.2 Five Hot Business Areas of the Future Digital Print

in China

a. Commerce

b. Direct mail

c. Personalised products

d. Customized packaging and exhibition goods

e. Publication on demand

18

10 10

12

6

11

02

4

6

8

10

12

14

16

18

20

Sets

Before 2000 2000 2001 20002 2003 2004 Year

Commercial Web Press Installation in China

3.Web Press in China

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

Sales Revenue Distribution of TOP 100 PrintingEnterprises In China (USD)

0.15-0.2Billion,26%,

0.2-0.3 Billion,27%,0.3-0.5 Billion,24%

0.5-1billion,18%

USD 1 billion above5%

4.TOP 100 Chinese Printing Enterprises in China

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

4.TOP 100 Chinese Printing Enterprises in China

The Profits Contributions Between TOP 100 PrintingEnterprises and Other Companies

In China

TOP 100 ChinesePrinting Enterprises,

15%

Other PrintingCompanies, 85%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

4.TOP 100 Chinese Printing Enterprises in China

TOP 100 Printing Enterprises by SectorIn China

Others6%

PackagingPrinting

Companies,63%

Book PrintingCompanies,

31%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

4.TOP 100 Chinese Printing Enterprises in China

TOP 100 Printing Enterpises CategoriesIn China

Private2%

Foreign InvestedEnterprises

62%

State OwnedCompany

18%

Stock HoldingCompany

18%

Survey conducted by KeyinPrint Media ChinaSurvey conducted by KeyinPrint Media ChinaFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cnFor more detailed info., pls. browse www.keyin.cn or send email to shen@keyin.cn

Current China Printing Market and Technologies

• High-end imagesetter relying on import and mid- and low-end ones already self-supplied;

• PS plates production line and plates self-manufactured;

• CTP plates production lines established, eg. Fujifilm, Agfa, and KPG, established factories in China; Several Chinese companies conducted researches on the production of CTP plates already, and limited plates sold out;

The Current Development of Printing Technologies in China

• CTP equipment relying on import, but some local companies conducted researching work;

• Digital printing equipment mainly relying on import, and some of software, RIP. MIS and ERP, etc. self-developed;

• High-end Printing equipment, post-printing equipment and packaging printing equipment mostly relying on import and mid- and low-end equipment already self-supplied;

Outlook to the Future Development of Chinese Printing Industry

• Chinese printing industry yearly average growth rate 15%

• Chinese packing printing Industry yearly average growth rate more than 15%

• CTP systems installation and the CTP plates yearly average growth rate 30%

• The production value of digital printing yearly average growth rate 30%

Seven major business areas of KeyinPrint Media

• Publishing Periodicals• Publishing Books• Conferences and Trade Fairs• Network Publishing: www.Keyin.cn• Consultation and Research• Industry-Related Activities• National Technical Committee 170 on Printing Of Standa

rdization Administration of China• Training

KeyinPrint Media China

All in Print China, 2006Date: June 14-17, 2006Place: SNIEC, Shanghai, P.R.ChinaExhibitors: around 600;Visitors: about 60,000Exhibiting Areas: 80,000sqm

Thank

• For more Information, Pls. Browse www.Keyin.cn,

• or send email to Shen@Keyin.cn