Finland 2017 "Nordic - Asian Forest & Paper" International Forum speech

Dear MinisterKai Mykkanen、General Manager Hu Qiyin、The head of the Finnish Paper Industry Association、The President of the China paper industry association、Ladies and Gentlemen：

Good morning/afternoon，everyone! I am very honored to be here to meet all of you in Helsinki，and thank General Manager Hu Qiyin for inviting me to attend the event and providing me with the opportunity to communicate and study with you.

Entity enterprises are at the crossroads in the face of the new situation and the new normal., The question,selecting the entity or the Internet, is not so absolute as to select "go left or right ",but this also really plagued all the business now. This is particularly evident in China.

"Internet +" has been included in China's national strategic planning. This means that more industries will embrace the Internet. In this comprehensive industrial upgrading war, how can companies use the Internet and take mobile Internet as a tool to increase productivity and create more value? This is the answer we all seek together. Then I will talk about the following points contacting with my own practice.

In ancient China, there were four great inventions:Papermaking, Compass, Gunpowder and Printing. Among them, there are two things related to papermaking: Papermaking and Printing. In Finland,the application of paper abound everywhere, such asplain paper, newsprint, tissue, specialty paper and more.People have got benefits. Thanks to Finland.

Currently, many Chinese Internet platform and tools have penetrated into people's daily life. Taobao, Alipay, Dropping Express, sharing bicycles and so on have greatly facilitated people's lives. Traditional stores + Internet formed Taobao, Traditional bank + Internet formed Alipay, traditional transport + Internetformed dropping express and sharing bicycles. While changing the way that people lived, the Internet is also urging many traditional enterprises to innovate and upgrade. Why do papermaking companies also need Internet transformation? Maybe a lot of corporate bosses would say that we've done enough to keep our products in research and development, qualityand market expansion. What can the Internet do?

I think there are plenty of entrepreneurs with this idea. Of course, these are also true. But there are other aspects of the problem that cannot be avoided.

With the continuous development of information technology, people who were born in the 80s and 90s gradually become the main consumer in the market as well, and those people fully accept the use of the network and consumption on the network. When it comes to the Internet transformation, some people may think that it is about disrupting their traditional businesses. In fact, we should be aware that the Internet is an auxiliary tool for the development of traditional enterprises, and it is a new direction to expand the market. In the 21st century, the development and function of e-commerce in global consumption are not to be ignored. All walks of life should be made to change the inherent product promotion, sales and production model.

For a long time, the traditional paper business model has been the B2C model initiated by the factory, which has the product firstly and then has consumption. Companies are based manufacturing as the core, while the Internet thinking is to break the previous traditional thinking model. C2B model initiated by the consumeris the first to have orders and needs, and then providing products. Companies are based service as the core. This kind of order model not only can meet the demand of consumer personality, but also can greatly save social costs and operating costs. Companies can create more value for the downstream enterprises to realize their own value. Shandong chenming paper industry group is a good example. Before 2015 this company is a tradition of afforestation, pulp, paper-based industry, but its fate has already changed to achieve a larger consumer groupsthrough Taobao and other online sales channels.Its brand of household paper "Star Love" Lynx flagship store officially opened, Chenming life paper sales model changes from a single life of offline to online and offline double channel sales. Its electrostatic paper products are also now being sold online.

This is a friendly beginning with the Internet "intimate contact", and this also is the traditional papermaking enterprise application of the Internet the most simple way - that is, put your products in Internet marketing.

Currently, Internet applications are mostly in marketing, after-sales service and procurement. The development potential of the industrial Internet is huge, and our enterprises should try to apply Internet technology to improve the overall competitive ability of enterprises. In the papermaking enterprises, for example, the process of production and operationalso can improve production efficiency and maintain trade fair and convenientthrough the use of information and network technology. In centralized procurement, each demand side has a different price for the same purchase price, because the information between traditional enterprises is not smooth. Also, the collection and payment process of the period is complicated, and there is a certain credit risk. The payment was simplified and quickly completed by third-party payment on the line.The product quickly reaches the user, because logistics uses the Internet.

On May 14, One Belt And One Road international cooperation peak BBS was held in Beijing and presented the world with the great results of the One Belt And One Road initiative. By the "Silk Road Economic Zone" and "the 21st century Maritime Silk Road" composed of " The Belt and Road" is ushering in the rapid development period, and is benefiting more and more countries and regions. Countries such as South Asia, southeast Asia, Europe, Russia and other countries have formed a cooperative situation in which all countries are co-operating, building and sharing. Under this opportunity, Finland actively participates in the " The Belt And The Road" initiative. Northern Europe is one of the world's most important pulp and pulp production sites. Last year, Finnish pulp producers signed a five-and-a-half year shipping contract with COSCO Shipping, which regularly docked in Finland regularly and loaded with pulp. The Chinese and Finnish economies had great potential for cooperation.

Kitchen network technology companies came into being following the Internet trend, and achieved the successful transformation from traditional industry to the Internet in 2012."The Chinese kitchen equipment net" was born, and hutch technology entered the new business age of industrialization and Internet integration. On January 21,2015,the kitchen technology successfully listed in the Shanghai Stock Exchange, and the development of hutch science and technology was brought to a new level. With several years of practice experience, hutch league science and technology have developed as the Internet, finance, agriculture, industry, media, trade as one of the high-tech industry groups. In 2015, Kitchen network technology companies developed"happy fast state" APP,which conquered the kitchen household O2O purchasing cleaning services installation and maintenance problems, integrated the Internet industry installation and maintenance, realized the online fusion and made convenient kitchen household after-sales easy.

At present, with the help of “The Belt And The Road” opportunities and strong resources complementary, the kitchen network, with the experience of the Internet industry, is honored to build an international platform for Internet cooperation with F&P Group. “The Belt And The Road” is the road of the overseas Chinese export trade, China's Internet companies can also take this output Chinese products、technology、innovation、standard and culture to overseas. We create the role of the Internet platform is to achieve resource sharing of products, technology, capital and business model, to promote the upgrading of the paper industry, to provide the opportunity of industry transformation and expansion, and to accelerate the efficiency, quality, innovation, cooperation and marketing capability of China's relatively backward manufacturing industry by using Internet power.

Today, under the background of globalization, Chinese Internet companies which has a strong scientific and technological innovation ability are also  beginning to assume the responsibility of building international connectivity bridges ,to make contributions to " The Belt And The Road ",and to provide the Chinese enterprises from all walks to go overseas with help. We hope that the best entrepreneurs in the industry will give us support and encouragement, expand the international communication through the Internet platform, and create win-win results for all of us.

3、What will we do together?

We hope to work with F&P group to create a platform for international cooperation in papermaking industry on the Internet. (mutual business, mutual sharing and mutual benefit)

F&P has many years of experience in papermaking industry, while our company has rich experience in the operation of Internet platform. If we can combine the advantages of both sides, we will establish the Internet communication and service platform between enterprises and customers in the paper industry. It is essentially a bridge between the Finnish professional institutions and the global market, especially with the Chinese market. The use of the Internet as a tool in traditional industries such as papermaking can solve practical problems that are not or are not easily solved in traditional industries. It also can spread the industry brand through the fastest means and relatively professional circles.

Platform function:

* Enterprise publicity, brand, value and cultural transmission

* Products online sales

* International communication channels

* Technical demonstration and technical cooperation

* Paper-making equipment and accessories online purchasing

* Paper-making equipment and accessories O2O procurement consulting (paper doctor) installation and maintenance

* Sales statistics and trend analysis

* Docking in China's top trade platform

BaoHua Zheng

20170602