3 years ago, Jiangshan Oupai was listed on the Shanghai Stock Exchange, being the first Chinese wood door company listed on the mainboard. Founded in 2006, this company specialized in manufacturing wood doors has expanded its activities to research and development, production, sale, and service. Over the past ten-some years, the company has more than 100 patents and software copyrights with its products sold to Europe, Africa, and the Americas.

Growth from adversity

Over the past three years, Jiangshan Oupai kept a high-momentum growth. Regarding the market data, in January 2020, Jiangshan Oupai issued its 2019 performance summary expecting a sale revenue of RMB 2.027 billion in 2019, with a year-over-year growth rate of 58%, a net profit attributed to the shareholders of its parent company of RMB 264 million, an increase of 72.98% from the previous year, a net profit after the non-recurring expense of RMB 232 million, an increase of 88.27% from the previous year.

Despite the largest wood door producer in the world, China has experienced a decline in the wood door retail. Due to consumption upgrading, real estate regulation and changing environmental protection policies, the industry is undergoing a reshuffle which means a hard time for many enterprises. In this background, as the first wood door company listed in the mainboard, Jiangshan Oupai grew rapidly and kept the confidence of investors, the root cause of which lies in the strong supports from its products, channels and supply chain.

Products as foundation and value as fuel

To keep a strong position in the capital market, a wood door company must stand on the high quality of products. In the current context that wood doors with oil-based coating are losing the market, the “solid wood doors with water-based coating” have become the sensational products in wood doors with water-based coating thanks to its high-cost effectiveness and low pollution. According to the R&D staffs in Jiangshan Oupai, the walnut wood was directly purchased from the Solomon Islands and processed with wood glue containing almost no formaldehyde. To avoid wood frames from cracking or deformed, the company has constructed a dedicated warehouse to ensure the correct wood moisture content. Being able to paint wood doors with the automatic system in a dust-free environment with constant temperature and constant humidity, the company is the first that has successfully launched mass production of water-based paint.

Also, the diversity of its marketing channels is an important pillar for Jiangshan Oupai’s market advantage. Regarding the construction segment, the company has targeted the increasing demand driven by decoration policies and set up a dedicated team that has started the cooperation with Evergrande, Vanke, Poly and other top 500 real property developers in China. Regarding the retail segment, the company has created a grid-based network that covers the whole Chinese mainland, providing strong sales and service capabilities with high mobility and high independence, which forms a natural advantage for its access to the new retail segment.

In addition, Jiangshan Oupai has developed a unique supply chain system around “sharing” and driven by “value”, a distinctive advantage that peer brands have not. It is reported that material suppliers, component providers, manufacturers and resellers around Jiangshan Oupai, do not serve Jiangshan Oupai, but serve their common users, thus forming partnerships based on market data and directed by user requirements. This approach ensures the balance of incomes among stakeholders along the chain. Coupled with the high maturity of the wood door industry in Jiangshan where Oupai is located, this model has helped Oupai connect the upstream and downstream companies efficiently and highlight its great capabilities in providing customized products and supplying goods of a large quantity at a high speed.

Motived by its goal of being the world-class wood door manufacturing and the top one wood door brand in China, Jiangshan Oupai has received many honors including China’s Leading Company in Wood Door Industry, the Top One Household Brand for Chinese House Buyers, Manufacturing Certificate of Zhejiang, the Top 10 Chinese Wood Door Brands Needing No Paint, the National High-tech Company and a Key Leading Company in Forestry. It seems that the company has secured the advantages in geography and partnership. Jiangshan city has become the largest wood door producer which accounts for 10% of wood doors in China, resulting in a reputation that greatly benefits local businesses. Based on its R&D capabilities, Jiangshan Oupai is able to meet the requirements from various market groups and has even established long-term strategic partnerships with real estate giants such as Evergrande, Vanke, Poly, COLI, and CIFI, which acts as a great engine for the long-term development of the company.