National Printing and Reproduction Demonstration Enterprise Review: 65 Applicants, Three Stages, Six Criteria

Under the General Administration's Measures for the Administration of National Printing and Reproduction Demonstration Enterprises, the Department of Printing and Distribution Management assembled a multidisciplinary expert review panel. Its members came from government management, industry associations, technical equipment, finance, tax and audit backgrounds. The panel reviewed applications from 65 enterprises put forward by 10 provincial press and publication bureaus.

National Printing and Reproduction Demonstration Enterprise Review: An Overview

I. How the Review Process Was Structured

The panel began by studying the Measures and confirming the core goal: to identify key printing enterprises or enterprise groups that can guide and radiate progress in transforming development models, adjusting industrial structure and raising industry quality, while holding national influence and demonstration value. The aim is to optimize industrial structure, cultivate strong enterprises, speed up independent innovation and technology progress, encourage energy saving and emission reduction, promote green printing and steer the whole industry toward transformation and upgrading.

After studying the Measures, the panel discussed and adopted the Measures for the Review of National Printing and Reproduction Demonstration Enterprises. This document governed the full review and helped keep the process scientific, impartial and fair.

The review had three stages: application qualification review, expert deliberation, and final review and determination.

Application materials review: the Printing and Reproduction Division of the Department of Printing and Distribution Management sorted and summarized each applicant's materials and checked eligibility. Any enterprise that had received administrative punishment from press and publication authorities in the previous three years was excluded.

Expert deliberation: reviewers read, discussed and assessed the applications. Taking current industry conditions into account, the panel adhered to the review criteria while giving comprehensive consideration to certain indicator requirements. Based on each enterprise's overall situation, the panel discussed and voted to decide which enterprises would be recommended.

Final review and determination: the leading group combined the materials-review findings with the expert voting results to set the final demonstration enterprise list.

II. Expert Deliberation Against the Criteria

When reviewing applications, experts first checked the mandatory conditions for national printing and reproduction demonstration enterprises and focused on compliance in six areas:

Scale and efficiency: whether key economic indicators rank among the top in the domestic industry; review of profitable reports for the last three financial audit years; separate assessment of total assets and sales revenue. A printing enterprise needs total assets above RMB 300 million (above RMB 100 million for a publication printing or digital printing enterprise) and annual sales revenue above RMB 500 million (above RMB 200 million for a publication printing or digital printing enterprise). For growth-oriented enterprises with potential, if total sales revenue over the past three years exceeds RMB 1 billion (above RMB 500 million for a publication printing or digital printing enterprise), average annual growth exceeds 20%, and annual taxes paid exceed RMB 10 million, the scale-and-efficiency conditions can also be met. Experts assessed quantitative indicators by enterprise type.

Technical equipment: whether key production equipment is at an advanced industry level, measured against the standards for advanced technical equipment and printing digitalization.

Innovation and R&D: R&D spending as a share of sales revenue; whether a national- or provincial-level enterprise technology center or R&D institution exists; whether the number of granted rights ranks among the top in the domestic industry; and whether there is substantive innovation and relatively mature results in new product expansion, industrial chain extension and business model exploration. Among applicants, 40 held granted rights, and 21 held 10 or more granted rights.

Management system: whether a sound modern property rights system and scientific management mechanism are in place; whether relevant management system certifications have been obtained; whether product quality testing meets standards; whether a network-based enterprise management information system has been built; and the state of work safety management.

Green and environmental protection: whether environmental management system and related green certifications have been obtained; whether raw and auxiliary materials, energy saving and emission reduction meet the required standards; and whether publication printing enterprises have passed national green environmental protection label certification. Among applicants, 46 passed quality and environmental management system certification.

Talent team: whether the enterprise meets the required ratios for staff with college degrees or above or intermediate or higher professional titles, and for technical personnel; and whether it has a strong management and technology R&D team.

After assessing compliance, experts discussed the proposed recommendations and reached consensus. First, the seriousness of the review conditions must be maintained: only by upholding the mandatory conditions in the Measures can correct guidance be formed and selected demonstration enterprises be more competitive and influential. Second, China's printing industry and its enterprises must be considered realistically; the criteria should be grasped comprehensively and accurately, with comprehensive consideration of some indicators, so that enterprises are judged objectively, fairly and impartially and backbone printing enterprises with national influence and demonstration value can be selected to guide industry transformation and upgrading.

Given the 65 applicant printing enterprises' different types, development features and growth stages, experts discussed how to apply the criteria overall, keep the review scientific, fair and impartial, and fulfill the purpose of building national printing and reproduction demonstration enterprises. They agreed on three relationships to handle well: 1. While considering enterprises comprehensively under the criteria, give weight to the demonstration value of enterprises that lead nationwide in green environmental protection, digital printing, innovation and R&D, and cultural creativity, and that have contributed outstandingly to industrial transformation and upgrading; 2. While covering packaging and decoration, commercial bills, digital printing and other printed products printing enterprises, give appropriate preference to publication printing enterprises; 3. While encouraging large state-owned printing enterprises to become demonstration enterprises, also recognize the demonstration value of enterprises under various economic ownership types.

After full discussion and assessment, experts cast secret ballots to determine the enterprises recommended in this review.

III. Features of the First Batch of National Printing Demonstration Enterprises

The first batch of demonstration enterprises showed real national demonstration value in standardized management, advanced technology, products, innovation and energy conservation, talent concentration and trustworthy operations. They offered experience that the wider industry can learn from in pursuing transformation and upgrading. Their main features were:

Overall enterprise strength rose, lifting industrial intensification. Among the first batch, the highest total assets reached RMB 4.2 billion, and even the lowest total assets were more than double the level required for demonstration enterprises. Seven enterprises had annual sales revenue above RMB 1 billion. Among China's limited number of listed printing enterprises, several, including Beijing Shengtong, were selected.

Demonstration enterprises played a leading role in adjusting industrial structure, advancing technological innovation, strengthening refined management, building integrity systems and talent teams, undertaking overseas printing and processing business, and improving market competitiveness. They also set examples in corporate culture and social responsibility, with overall strength markedly enhanced. Heshan Astros, for example, had total assets and annual sales revenue both above RMB 2 billion and held multiple management system certifications, ensuring compliance in production, environmental protection, occupational health and safety, and information security. Its 2011 export value reached RMB 2.58 billion.

At this year's Third National Printing Industry Vocational Skills Competition, the offset printing worker and print finishing worker winners both came from demonstration enterprises. This reflects, from one angle, the strength of skilled workers at demonstration enterprises and the results of talent team building and employee skill upgrading.

Pioneers in green printing and ecological civilization. Demonstration enterprises follow green development principles, using eco-friendly printing materials, energy-saving printing equipment, digital workflows, computer-to-plate technology, central ink supply systems, recycling and other technologies and processes. This improves resource conservation in enterprise development and raises the industry's circular and low-carbon development. They lead the industry in green printing and in driving ecological civilization. Dongguan Jinbei Printing uses the 4R environmental protection principle as its core concept and applies green measures throughout production and daily life. Visiting peers have praised it as 'the printing enterprise that implements green printing in the most systematic and comprehensive way we have seen.'

Leaders in integrating traditional printing with culture, science and technology and developing new cultural business formats. Many printing demonstration enterprises are exploring how traditional printers can transform and upgrade within cultural and creative industries. They drive technological, operational and management innovation and vigorously advance the Digital Printing and Printing Digitization Project, becoming leaders in the printing industry's push to develop China's new economic and cultural industries. Artron Group's model of traditional printing plus modern IT technology plus culture and art has explored a new development path for cultural and creative industries and turned it into an art service organization supplying high-quality printed artworks. Shanghai Quanhuantong Creative Design, driven by creativity, has transformed from a packaging enterprise into an integrated creative service provider, with average annual sales revenue growth of 62.52% over the past three years. Shenyang Meicheng Online has advanced enterprise informatization, standardization and automation, opened new printing fields, and achieved average sales revenue growth of 50.56% over the past three years.

Exemplars of reform, innovation, modern enterprise systems and transformation. The first batch of demonstration enterprises pursued reform and innovation, established modern enterprise systems, increased vitality, and continually improved product quality and management. They became models for the printing industry in exploring modern enterprise systems and achieving transformation and upgrading. Several old Xinhua-family state-owned enterprises, in particular, set examples for SOE transformation. Jiangsu Phoenix Xinhua Printing actively advanced reform and strengthened the core competitiveness of the new Xinhua and new SOE. Through self-developed process control software, it integrated and innovated Asia's fully linked inkjet POD system. Sales revenue rose year after year, with average growth of 83.9% over the past three years. Hunan Tianwen Xinhua Printing deepened reform, adjusted industrial structure and pushed technical upgrading; in 2011, sales revenue was more than 16 times its level at the beginning of integration.

IV. Main Shortcomings of Applicants Not Selected

Failure to meet quantitative mandatory conditions. Some fell short on scale-and-economy indicators, some on management system certification, and some on technological innovation holdings or other standards.

Omissions in application forms, with major enterprise conditions left out. Some enterprises did not provide audit reports, and in some cases the relationship between gross industrial output value and sales revenue in reported economic indicators did not follow economic logic.

Missing required supporting documents. Some enterprises did not provide proof of granted rights, and some did not provide documents for management certification.

In some application materials, the municipal and provincial press and publication authorities had not signed or stamped their opinions. During review, experts could not determine whether municipal verification and confirmation or provincial preliminary review had been completed.

V. Issues to Note in Future Applications

In 2012, national printing and reproduction demonstration enterprises were reviewed. Some relatively strong key enterprises above designated size did not apply this time and are focusing on strengthening various aspects of their operations. We believe more backbone printing enterprises or enterprise groups with national demonstration value will join the ranks of National Printing Demonstration Enterprises. Future applicants should note the following:

Strengthen guidance from local press and publication authorities. These authorities should guide the building of national printing demonstration enterprises in their jurisdictions. After an enterprise submits an application, they should carefully complete municipal verification and confirmation and provincial preliminary review.

Enterprises should fill in the application form item by item carefully, truthfully and without omission. In line with the Measures, situations not stated in the form should be explained under item 10, Other Content That Needs to Be Supplemented.

Submit audit reports and corresponding certification documents and supporting materials.

As key printing enterprises above designated size continue to make progress in transforming development models, adjusting industrial structure and raising industry quality, and as their overall strength rises substantially; and as the review, assessment and management mechanisms for national printing and reproduction demonstration enterprises improve further, their guiding and radiating effects will become clear. Backbone printing and reproduction enterprises will become more competitive, industrial division of labor will be rational and regional development coordinated, a relatively complete modern printing and reproduction industrial system will take shape, and the industry will contribute more to building China into a world printing power.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-361981.html