GPA case of China Tobacco

The World’s First Ever GPA Solution

SHENZHEN KAILICHENG INDUSTRIAL DEVELOPMENT CO., LTD

End the fakes, Mantain the monopoly

Take the way of Eco-friendly

Backgroud1

Problems and Challenges2

Solution3

Core Competence4

Customer Case5

Content

Backgroud

China Tobacco spends RMB 50 billion on packaging, and RMB 192 billon on Surface Treatment (pollutional) per year.

Source 《 Packaging Study of China Tobacco 》

Problems of Tobacco Industry

Special Action in 2011 for Crackdown of Counterfeit Cigarette•Tracked down 434 million packs•Tracked down 206 producing dens•Cracked 2512 cases of fakes•Tracked down 594 machines of fakes producing•Tracked down 4.3 billion fake labels

Fakes Flooded Fake Cigarette Cases of over RMB 100 Million in Xiamen, China.

• Swallow at lease tens of billions of Revenue every year

• Violate the benifit of Tobacoo Companies

• Fakes are harmful to healt

Fakes HazardSource: Chinese police network - Cong An Nhan Dan

Challenges

What did cause the Rampant corruption of Fakes? Anti-counterfeit in “Packaging” is unrealized at the Source.

• Surface Technics• Easy to make copy

• Printing • Hardest to identify

• Holograms• Difficile Ture

• QR Code• Multiple Copy

Necessary Measure

How to end Counterfeit Cigarette ?

Treat it at the source

Low-carbon

Package

Upgrade the

Device

Upgrade Brand Image

World’s first ever

Solutions

Graphic Paper of Anti-counterfeiting 8 YEARS A LARGE DEVELOPING GROUP HUNDREDS OF

MILLIONS COST

Solutions

Anti-counterfeit At the Source: Papermaking and Choosing the Materials

Huge Investment on Equipment and Difficulty in Printing

Overcome the Defects of Printing and Surface Treatment

Solution---Proprietary Equipment

The World’s First Printing Machine, whose speed surpass 1000m/min.

1, Applicable to any Papermaking Machine of the world.2, Clear Graphics. 3, Multiple Color Printing on Multiple Paper Cores.

Solution---Water-based Ink

Developed the World's First Ever Paper Pulp Printing Ink by Ourselves

Entirely Environmental Friendly. "Never" diffuse in paper pulp which contains 85% of water.

This water-based ink can be added with all kinds of anti-counterfeit identification materials.

Solution---GPA

Difficulty in Production has

surpassed CNY’S

Solution——Patent

Superiority of GPA

Superiorities Can’t be recreate

dMore Green

Easy to use

Low Cost

4

• Reduce the cost in Anti-counterfeit• Increase the

Revenue

• Work with Huge Paper Mill

• Stop Anti-counterfeit at the Source

• Recyclable• Low-

carbon

• Verify by tearing apart the paper

• Quick and Easy

Core Competences

Only 7 Paper Mills in china are

able to produce

Inimitable for the

Printing Machine

and crafts

Quick and Easy to

verify its authenticity

Technology is

constantly upgrading

Huge Papermaking Mchine is necessary

5 Core Competence

More ApplicationsGreen Recyclable

The Green Passport to the world

More Applications

Cases of GPAComparison before and after the application

Polluting Emission COST

• Before using the GPA, China Tobacco spent 0.15 in CNY on each cigarette pack according to the sales data of 127 billion packs and 19.1 billion Yuan in cost of Anti-counterfeit in 2014.

• After using the GPA, China Tobacco only spends 0.03 in CNY on each cigarette pack according to the Contract Price of 2600 in CNY for each ton of the GPA.

• China Tobacco saves the cost of Anti-counterfeit on Packaging by one order of magnitude.

• China Tobacco saves 15.3 billion in CNY on Anti-counterfeit of Packaging.

Data Sources 《 Market Report on China Cigarette Packages 》

Cases of GPAComparison before and after the application

0亿

0亿

1000亿

Counterfeit

CigaretteRevenu

e

400亿

Datas above are according to the Counterfeit Cigarette's market share only 10% of Genuine Cigarette's and 10 in CNY for each pack.

Cases of GPA

15.3 Billion Cost on Anti-counterfeit

+40 Billion Revenue

+10 Billion Recycle

=165.3 Billion

+ 100 Billion Reductive Sales of Counterfeit Cigarettes

GPA saves cost for our nation per year: (In CNY)

Huge profits that the project brings ：• China Tobacco use 1.5 million tons of Packaging Paper per year• 500 in CNY of profit for each ton• 1,500,000*500=750,000,000 in CNY• China Tobacco creats the extra profit of 750 million in CNY.

Corporation Vision

As the Greenish Tint of China Dream,the vision of "Wild China" emerges at the right time with the theory of Ecological Civilization.KLC-Company pushes for sustainable beautiful China by Green Development, Recycle Development, Low-carbon Development.

"To build a beautiful green development China" from the People's Daily

As the Greenish Tint of China Dream,the vision of "Wild China" emerges at the right time with the theory of Ecological Civilization.KLC-Company pushes for sustainable beautiful China by Green Development, Recycle Development, Low-carbon Development.

"To build a beautiful green development China" from the People's Daily

Business Consulting: Tenac Zhao

C: +86-18200713803E-mail: [email protected]

深圳市凯力诚实业发展有限公司SHENZHEN KAILICHENG INDUSTRIAL DEVELOPMENT CO., LTD