4. Backgroud
China Tobacco spends RMB 50 billion on packaging,
and RMB 192 billon on Surface Treatment
(pollutional) per year.
Source 《 Packaging Study of China
5. 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 Hazard
Source: Chinese police network - Cong An Nhan Dan
6. 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
7. Necessary Measure
How to end Counterfeit Cigarette ?
Treat it
at the
source
Low-
carbon
Package
Upgrade
the
Device
Upgrade
Brand
Image
9. 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
10. 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.
11. 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.
14. Superiority of GPA
Superiorities
Can’t be
recreated
More 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
15. 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
18. Cases of GPA
Comparison 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 》
19. Cases of GPA
Comparison before and
after the application
0亿
0亿
1000亿
Counterfeit
Cigarette
Revenue
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.
20. 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.
21. 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
Treat it at the source
Low-carbon Package
Upgrade the Device
Upgrade Brand Image
The technology features finished printing the logo or any other graphics before the paper formed.
The picture: our Proprietary Equipment is working with Papermaking Machine.
The Bases of Differentiation Competition.
High-speed Printing Machine is needed for the printing of Paper of Anti-counterfeit.
There are only 7 Paper Mills for cigarette packs in China that are capable of printing the Paper of Anti-counterfeit.
The ultrahigh requirement for the Printing Machine and the Crafts makes the Paper of Anti-counterfeit very difficult to be counterfeited.
The method to identify the Paper of Anti-counterfeit is very easy for smokers to handle.
The technology of Anti-counterfeit is constantly upgrading.
High-speed Printing Machine is necessary for the printing of Paper of Anti-counterfeit.
There are only 7 Paper Mills for cigarette packs in China that are capable of printing the Paper of Anti-counterfeit.
The ultrahigh requirement for the Printing Machine and the Crafts makes the Paper of Anti-counterfeit very difficult to be counterfeited.
The method to identify the Paper of Anti-counterfeit is very easy for smokers to handle.
The technology of Anti-counterfeit is constantly upgrading.
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.