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Hexun.com, Special interview with Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food (Asia) Limited

2009-09-30

Introduction of Mr. Mark Han Jia-Hwan
Mr. Mark Han Jia-Hwan graduated from National Chengchi University, majoring in Enterprise Management. In 1981, he gained MBA from the University of Chicago. Though he is the son of Mr. HAN Haoran the founder of DaChan Great Wall Group, Mark Han cautiously and steadily strode as a manager and enterprise leader. He successively worked in Hong Kong Headquarters of Merchant Banking Group of Citibank, DaChan Company and DaChan General Company, and was promoted to be General Manager of DaChan General Company in 1992. In 1993, Mark Han was selected to be “Top 10 Excellent Young Men in Taiwan” for his great contributions to the food industry.

Mark Han’s classmates at the IMBA Department of Tsinghua SEM appraised Mark Han as:
He is the President and CEO of DaChan Great Wall Group, the listed food company that takes the 2nd place in Taiwan and that has more than 20 companies in Taiwan, mainland China, Philippines, Vietnam, Malaysia, Indonesia and other Asia-Pacific regions;  
He is the mentor teaching students in MBA class of Tsinghua SEM, passes on the truth and dispels the ignorance for his students. Whenever he gives a lesson, there is always the packed classroom. Whenever he is the guest lecturer, there is always the auditorium overflowing with people.
He is going to lead his giant business aircraft carrier in the way of restructuring to take the concept of life science and technology as the future core competitive advantage of his company;

 He plans to write books to talk about his understanding and describe his prospect of company development.

We hardly imagine that all these goals can be achieved by Mark Han himself. Meanwhile, we can hardly imagine that he performs so easily and well switching from the status to be a shrewd businessman to the status to be a sincere teacher.
 
[Business] A poultry association is collection information to initiate AD and CVD investigations against the U.S

Hexun News: In September 2009, Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food (Asia) Limited, was invited to attend Hexun’s high-end talk show “Conversation with Leaders” and shared his thoughts with net friends. Here is the real-time record of the interview: 
Host: On Sep. 27, the Ministry of Commerce initiated anti-dumping (AD) and countervailing (CVD) investigations against the chicken meat from the U.S? What impact do you think that the investigation will impose on China’s chicken meat industry?
Mark Han: Recently, a poultry association is collecting information to initiate AD and CVD investigations against the U.S. I have heard recently, the Ministry of Commerce is studying to initiate AD and CVD investigations and how to trade more fairly. The U.S. will basically allow no meat from any country to enter its market. The U.S. government protects its meat industries too much. If the meat is sold with a higher price, the government is able to dump the rest of the meat to other countries. This is dumping. We now encounter such unfair treatment, so the poultry association initiates the dual investigation asking the U.S. government to correct its mistake. China’s chicken meat can be exported to Japan and the Europe though these two countries are fussy about chicken meat. When we try to send chicken meat to the U.S., we are unfairly treated.

[Strategy] DaChan’s plan is to handle the integrated grain business and lengthen the industrial chain
 
Host: As for animal protein, your company is a global life science company with its core business of animal protein. How did you come up with the idea at the very beginning? 
   
Mark Han: The grain is closely related to life. Hence, as a company dealing with life science, we cannot be limited to the business of chicken, but the life and health of human beings. At the same time, our company is positioned to be a WTO company. Now, the whole world is an open market, so what will DaChan do to compete with others? We are a company dedicated to the integration of food chain business, and we know clearly the three positions of our company, which has helped to regulate our business. The positioning also includes our attitude. Since we position ourselves as a company dealing with life science, we may start our business from a higher position to let everyone live a healthier and better life. In our business, chicken meat plays a very important role. With the traceable information, the chicken meat business will be much more complete.  

Host: DaChan’s industrial chain is very unique. At beginning, Uni-President and Chef Kang started from the low end of the industrial chain, and DaChan set its goal to deal with an industrial chain. Is this so?

Mark Han: Let me tell you a story. Our company has more than 50 years of history. It was set up by my father in 1949 in Taiwan. At that time, there were two groups of mainlanders in Taiwan. One was mainlanders from Shanghai, and the other one was mainlanders from Shandong. In my opinion, mainlanders from Shanghai were very smart. They did textile and manufacturing business previously, and then did business of textile and retail in Taiwan. They started their business this way. In contrast, the northerners were stubborn, and they did business of food, oil and oil mill. Our company started from an oil mill, and gradually grew up and boosted the development of the entire industry. 
Host: In your opinion, what’s the advantage and disadvantage to do the businesses respectively relating to the industrial chain and the terminal end of the industrial chain?
Mark Han: We plan to do the integrated business of grain. There should be good foods and good materials, and we will do the business all the way and stick to the grain. Uni-President, Chef Kang and other food companies directly enter the terminal end of consumers, and this is no difference with what we have been doing. What we both care about are consumers. We do the business like playing go to lengthen the industrial chain. No matter how long the industrial chain is, finally we must directly face consumers. This is the key point of our development.
 [Experience] Only through devotion to your own business can you survive in financial crisis
 
Host: Can DaChan’s vision and originality be considered as devotion?   
 
 Mark Han: Being devoted to your own business will make you possess a lot of resources. But being devoted does not mean you do not need to observe others, but always look at yourself. Being devoted also needs to learn about many new trends and different approaches.
       
Host: In July this year, DaChan entered into three year chicken meat supply contract with KFC of YUM Group. So, DaChan will be much stronger to fight back against and perform steadily in the financial crisis. What kind of effects did the financial crisis bring to DaChan?
Mark Han: This is an interesting phenomenon in meat, egg and milk industries. We are the largest supplier to YUM, and pay special attention and give top priority to these fast-food chain stores and VIP clients. They prose a high stand and ask for high quality of products. When there is economic fluctuation, the food industry will show its unmatched advantage. Also, thanks to the fashion and diversity of foods, when there is an economic increase, we will grow faster and do much better in this aspect. We perform very well in traditional businesses because we hope that consumers can know that these businesses are closely related to their life. And this is a business that we are devoted to with great effort.
Host: You may have noticed that in financial crisis, there is shutdown of privately-run enterprises and medium- and small-sized enterprises. In your opinion, what’s the reason for their fragile life? And what makes them so vulnerable to be beaten by the financial crisis?
Mark Han: It is partly because of the devotion I talked about just now. If I were not devoted to my business, I might have invested 30% or 40% of my money in the investment in securities and real estates. And I may make some money during the golden period, but I may suffer a lot when it is a bad time. But I am not the most devoted person in the business, for I have been greatly affected by many other factors. In my opinion, the devotion is a very important factor.

 
 
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