Interview with Mr. Zhan Wei, Chairman of Ulupure, published in the authoritative journal ''Analytical Chemistry''

Specializing in Pure Water, Making Water Production More Economical

—An Interview with Mr. Zhan Wei, Chairman of Ulupure

Introduction

Ulupure, a well-known domestic manufacturer and supplier of ultrapure water equipment for laboratories and industries, adheres to the business philosophy of "professionalism, innovation, excellence, and service." For many years, it has provided ultrapure water system solutions for industries such as scientific research, biology, medicine, electronics, and chemicals, and has become a leading domestic manufacturer of laboratory ultrapure water equipment.

As a domestic brand, Ulupure has experienced rapid sales growth every year, becoming a leader in the domestic laboratory ultrapure water system industry. How did it stand out? What measures will they take in the face of the impact of the new economic environment and competition from foreign brands? With these questions in mind, we interviewed Mr. Zhan Wei, Chairman of Ulupure (Chengdu Ultrapure) Technology Co., Ltd., to discuss Ulupure's development and the current state of the domestic ultrapure water industry.

Editor: As a leader in the domestic laboratory ultrapure water field, how do you analyze the current state of the domestic laboratory ultrapure water industry? 

Mr. Zhan: According to recent surveys on the application of pure water equipment, universities and research institutes rank first, with 34% of respondents indicating its use in this field, followed by quality inspection systems at 22%. The chemical industry and environmental monitoring sectors also see widespread application of pure water equipment, each accounting for approximately 15%. The biopharmaceutical and medical disease control sectors each account for about 7% of the total. Following these are the steel metallurgy, animal husbandry (animal inspection and quarantine), and mineral geology sectors, each accounting for about 3%. Approximately 8.21% of respondents indicated that they use pure water equipment in other fields.

Currently, the high-end market for laboratory pure water in China is dominated by Millipore, a company with an oligopoly. Ulupure, as a leading domestic pure water brand and a challenger to this oligopoly, currently enjoys a high market share in the high-end market in China, with sales continuously increasing for several years. Last year, its sales volume was roughly equivalent to the combined sales of the next three market followers. Ulupure laboratory pure water systems are increasingly attracting attention and favor from users.

Editor: How does Ulupure cope with competition from domestic and international peers while continuously achieving record-breaking market share?

General Manager Zhan: From the perspective of the company's development strategy, our strategic business decision to "strengthen innovation awareness and increase R&D investment," and to provide our users with the best products and high-quality after-sales service, has always been our goal and a key factor in our success.

Ulupure strives for a win-win strategy for customers, partners, employees, and shareholders, and appropriately grasps and balances the subtle nuances of this balance through communication and meetings. Ulupure is one of the few companies in the domestic industry that implements employee stock ownership; most of the company's core personnel are shareholders, resulting in strong team execution and cohesion.

Editor: We understand that your company launched a new product last year that has received considerable attention since its market launch. Compared with similar products, what makes this product unique? Could you please elaborate?

General Manager Zhan: In July 2009, our company launched the "ULUP" laboratory-grade high-end water purifier, representing the latest level of domestically produced water purifiers. This product adheres to the company's development and design philosophy of "humanized design and standardized products." It features several domestically pioneering technologies, including flow monitoring for filter media replacement, RO pure water exceeding discharge standards, random database functionality, and human-machine dialogue control, comprehensively meeting the needs of ultrapure water and RO pure water usage. The pretreatment filter cartridge is the first to use a mixture of KDF copper-zinc alloy filter media and scale-inhibiting crystal filter media, making it more adaptable to the complex and ever-changing tap water quality in mainland China compared to imported brands, reducing users' consumable consumption and operating costs. The pure water pump, solenoid valve, and pipe fittings are all sourced from OEM suppliers in South Korea. Through component control, we ensure product reliability approaching that of international brands, while the price is only slightly higher than domestic brands.

Editor: Product sales are inseparable from marketing and sales strategies. Now that the instrument industry is more standardized and market competition is fiercer, what adjustments will Ulupure make in market expansion in 2010?

General Manager Zhan: This year, we will focus on helping our agents and distributors improve together. As approved by the board of directors at the beginning of the year, we have added one Channel Director in 2010, responsible for the market south of the Yangtze River, to help provincial agents transform from sales-oriented agents to service-oriented agents. In the future, Ulupure will transform from a manufacturing company to a service company.

Postscript: Ulupure (Chengdu Ultrapure Technology), as a leading domestic supplier of laboratory/industrial ultrapure water system solutions, adheres to the business philosophy of "professionalism, innovation, excellence, and service," focusing on providing ultrapure water system solutions for scientific research, biology, medicine, electronics, and chemical industries, creating long-term value and sustainable growth for our customers' businesses. According to a market survey report on laboratory pure water purifiers in China released in early 2007 by the China Association for Instrumentation and Testing (www.instrument.com), Ulupure's market share was second only to Millipore in the United States, ranking first among domestic laboratory brands.