Understanding your customer base may seem like an obvious statement in the manufacturing world. Unfortunately, the statement is all too often ignored. When a cultural aspect is added into the equation, understanding cultural needs and requirements becomes even more of an imperative as ignoring it will ultimately doom a project. If, however, a company can blend the two, it will have a solid chance at substantial profit right along with a savvy investor.
Tiens Biotech Group Inc. USA., a nutritional products company, works to develop, manufacture and market dietary supplements and wellness products primarily in China, the Russian Federation, Ukraine, Vietnam and India. Its products are offered in powder, soft gel capsule, grain and tablet forms. The company is a subsidiary of the Tianshi International Group Inc., a Delaware registered company operating in China.
The company recently reported solid results for the first three months of 2009. Net income increased from $4.4 million in the same reporting period 2008 to $8.99 million 2009. Interestingly enough, export sales to Indonesia and Vietnam led revenues during this period. From a management perspective, this trend might be traced to Chinese domestic considerations where a price increase in the third quarter 2008 led to stockpiling of product by consumers. Additionally, export restrictions have recently been lifted regarding (unrelated to the company in anyway) food safety issues.
The company does appear to be in a solid position at the moment. Its cash on hand is approximately $44 million and has working capital of approximately $79 million. In a general way, the company tends to finance its operations from this pool of capital, although its current work to build a new 420,000sq/m plant and administrative complex may require some outside financing.