---
title: "A Can Sells for 6.66 Billion! Think It's Just About Clinging to a Big Client?"
description: "Times always favor those who dare to imagine and act. How much is a can worth? The answer is 6.66 billion yuan. You surely know Red Bull, Want Want, JDB, Tsingtao Beer, and Daliyuan, but you may not have heard of the company quietly making big money behind the scenes—ORG Technology. While China's manufacturing profits average only 5%, ORG achieved annual revenue of 6.66 billion yuan in 2015 by producing metal packaging cans for these brands, with a gross margin of 38.23% in the first half of 2016, far exceeding international metal packaging companies like Crown and Ball."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-06-08"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/a-can-sells-for-6-66-billion-think-it-s-just-about-clinging-to-a-big-cli-83d803df/"
markdown: "https://xinjignxiao.com/en/articles/a-can-sells-for-6-66-billion-think-it-s-just-about-clinging-to-a-big-cli-83d803df.md"
original_source: "https://mp.weixin.qq.com/s/_CK0XfmWdBLoyAmQH98Yhg"
translation: "https://xinjignxiao.com/zh/articles/%E4%B8%80%E4%B8%AA%E6%98%93%E6%8B%89%E7%BD%90%E5%8D%96%E5%87%BA66-6%E4%BA%BF-%E4%BD%A0%E4%BB%A5%E4%B8%BA%E5%8F%AA%E6%98%AF%E6%8A%B1%E5%A4%A7%E8%85%BF%E5%82%8D%E5%A4%A7%E6%AC%BE%E8%BF%99%E4%B9%88%E7%AE%80%E5%8D%95-83d803df.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/a-can-sells-for-6-66-billion-think-it-s-just-about-clinging-to-a-big-cli-83d803df/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# A Can Sells for 6.66 Billion! Think It's Just About Clinging to a Big Client?

> Times always favor those who dare to imagine and act. How much is a can worth? The answer is 6.66 billion yuan. You surely know Red Bull, Want Want, JDB, Tsingtao Beer, and Daliyuan, but you may not have heard of the company quietly making big money behind the scenes—ORG Technology. While China's manufacturing profits average only 5%, ORG achieved annual revenue of 6.66 billion yuan in 2015 by producing metal packaging cans for these brands, with a gross margin of 38.23% in the first half of 2016, far exceeding international metal packaging companies like Crown and Ball.

Times always favor those who dare to imagine and act.

How much is a can worth?
The answer is 6.66 billion yuan.

You surely know Red Bull, Want Want, JDB, Tsingtao Beer, and Daliyuan, but you may not have heard of the company quietly making big money behind the scenes—ORG Technology.

While China's manufacturing profits average only 5%, ORG achieved annual revenue of 6.66 billion yuan in 2015 by producing metal packaging cans for these brands, with a gross margin of 38.23% in the first half of 2016, far exceeding international metal packaging companies like Crown and Ball.

— In China, there are over 1,700 companies involved in metal packaging, but fewer than ten can truly compete with multinational corporations.

Among them, ORG, which listed on the A-share market in 2012 with a market value of nearly 20 billion yuan, is it just because it "clung to" the big client Red Bull?

**Mother and Son United, Their Strength Cuts Metal**

Lei Jun once proposed the concept of an "ant market," which coincides with the famous long-tail theory—

In the internet age, due to cost and efficiency factors, when the storage, circulation, display, and channels for goods are broad enough, almost any product that previously seemed to have extremely low demand will be bought if it is sold. The combined market share of these low-demand, low-volume products can be comparable to or even larger than that of mainstream products.

For example, a towel or a power strip.

So, how did Zhou Yunjie discover the can market?

In 1994, 55-year-old retired Guan Yuxiang happened to travel to Hainan and found the local beverage industry booming, with coconut juice leading the way, and mango juice and coffee also popular. However, there were many beverage makers but no packaging makers, let alone can makers.

Build a can factory! The daring old lady immediately took her life savings of 300,000 yuan and returned to Hainan, establishing Hainan ORG Packaging Industrial Co., Ltd. in Wenchang, where she knew no one.

This was the predecessor of ORG. Besides 16 employees and a simple production line, her son Zhou Yunjie fought alongside her.

Initially, they could only cooperate with small factories. Fortunately, the next year, the "big client" Red Bull entered China and built a factory in Shenzhen.

Zhou Yunjie later recalled emotionally: "My mother, with a nearly humble attitude, won the cooperation opportunity with Red Bull. In nearly two months, my mother and I traveled between Hainan, Shenzhen, and Guangzhou 41 times."

But winning Red Bull was not just about effort and sentiment.

At that time, all domestic can seams used liquid coating technology, but Red Bull made a special request—powder coating. "At that time, we had only heard of this technology, never even seen it."

Many competitors with bigger names and louder reputations gave up. But Zhou Yunjie was persistent, searching everywhere, and finally found a willing partner in Singapore. Through technology purchase, introducing technical personnel and equipment, Zhou Yunjie successfully introduced powder coating technology to China.

It wasn't until five years later that other domestic companies began to master and apply this technology.

**Cling to Big Clients, Advance and Retreat Together, Build Alliances**

Feng Lun said that to run a business, you must learn to cling to big clients, go where the money is, and be with rich people.

Zhou Yunjie and his mother undoubtedly used this wisdom to the extreme.

In 1997, Red Bull moved north and built a factory in Beijing. ORG also chose a site just 800 meters away from Red Bull.

Everyone around opposed it, and a senior executive and a senior technician even left because of it. "They were unwilling to come to Beijing; they thought it was too risky because we needed to build a new factory and face competition from so many companies."

Facing doubts, Guan Yuxiang firmly chose to follow Red Bull. And Zhou Yunjie further upgraded his mother's strategy.

In 2003, when Red Bull built a factory in Hubei, ORG also entered Hubei, and the two companies built factories in the same industrial park.

"Initially, it was to reduce transportation costs, but later we found that being in the same park made it easy for the two companies to achieve synergy in management, production, and supply chain systems, which formed our strategic alliance idea."

When building the third factory in Guangzhou, Red Bull and ORG simply built the factory together, with offices, dormitories, and canteens all shared. Not only that, ORG also proposed building a beverage filling base, not only making cans but also providing filling services for clients. In short, the production lines of the two companies were linked together, further improving efficiency and reducing costs.

From following to symbiosis, it seems like a small step, but it actually represents Zhou Yunjie's redefinition of ORG's strategic positioning:

From a packaging product manufacturer to a complete packaging solution service provider.

Further, why did Red Bull choose ORG?

Not only because ORG's process technology and product quality met Red Bull's requirements, not only because ORG provided close service without abandoning, but more importantly, its strong integration capability in production lines and the entire supply chain system.

For example, in 2007, Zhou Yunjie decisively gave up investment in the printing field, entrusting all product printing to Baosteel Group. Baosteel also expanded from one printing line to now having five printing bases in China, becoming the largest domestic printing group for tinplate, the main material for can making.

Win-win, multi-win, is the real win.

ORG thus entered a fast development track.

**The International Journey of a Can**

You might ask, how does ORG integrate the supply chain? What is its core competitiveness?

Just like introducing powder coating technology to China at the beginning, Zhou Yunjie particularly emphasizes product technology innovation. Now ORG holds 16 patents.

What? A can has technical content?

So every profession has its own expertise. In fact, food safety largely depends on packaging products.

"Cans have existed since the 1930s. But they have evolved with society. For example, thickness: when I entered the industry 20 years ago, the typical can thickness was 0.21mm-0.23mm; currently, the common thickness is 0.19mm-0.20mm."

"ORG can now produce metal cans with thickness of 0.135mm-0.15mm, and has successfully developed cans below 0.12mm."

Thinner and lighter not only saves costs but also resources.

For example, ORG boldly innovated by combining iron cans with aluminum foil to package luncheon meat, which is easy to open and ensures airtight sealing and no breakage on impact. Another new technology allows ORG to save 30% of tinplate usage compared to peers.

Also, "For tomato paste cans, China's production is the world's largest, with huge exports. Our small packaging cans account for about 60% of domestic production." To seize this market, ORG built a factory in Nigeria, Africa, the region with the highest demand for tomato paste in the world.

It can be said that ORG is already at the forefront of the international metal packaging industry in technology.

In the era of the internet and consumption upgrade, the consumer group mainly composed of post-80s and post-90s has strong demand for fast, convenient, and healthy FMCG foods, including functional drinks. "The metal packaging industry still has huge growth space in the future."

Standardization, scale, and internationalization are ORG's winning formulas.

**What Does Sports Have to Do with Cans?**

In January 2017, at the NHL All-Star Charity Game, Zhou Yunjie faced off against Canadian celebrity Justin Bieber.

Is this just a billionaire boss playing around?

Wrong! In March this year, ORG led the NHL China Games and became the founding partner of the NHL in China. Canadian media called Zhou Yunjie "the man behind bringing the NHL to China."

Besides ice hockey, ORG also ventures into football and fencing, investing in Dongba Sports, which focuses on youth football training, and Beijing Ice World Sports Culture Company. In October 2016, it completed the acquisition of 59.95% of French football club AJ Auxerre for 7 million euros, and also invested in the Wang Haibin Fencing Club, named after the head coach of the Chinese men's foil team.

"Obviously, these are projects that can directly connect with community sports and campus sports in the future. These children will be the main consumers in the future, and their potential recognition of our clients will affect the influence of our clients' products in the future market."

Zhou Yunjie's intention is not just about sports.

ORG is a typical manufacturing enterprise, but also atypical. In Zhou Yunjie's view, ORG and FMCG companies are interdependent, and cooperation is above all.

For example, besides big clients like Red Bull, Want Want, JDB, and Tsingtao Beer, ORG vigorously supports new clients. In 2015, ORG reached a strategic cooperation with Beijing Yiqing Food. Beijing Yiqing is the brand owner of Beibingyang, which dominated the Beijing beverage market in the 1980s.

The strategic cooperation is signed for ten years. Although Beibingyang's order volume is currently small, Zhou Yunjie still gives priority and discounts in product application, pricing, and supply.

"It is a national brand carrying people's memories and emotions, meeting the psychological needs of some consumers."

Rather, he values the rise of local brands and local consumer forces.

What he wants to do with sports is also to connect with clients' products and provide more possibilities for client services.

"Foreign packaging design companies are also sports agencies, signing many sports and film stars. When they plan and design products for clients, they can directly choose who best represents the brand as a spokesperson," Zhou Yunjie said. "ORG aims to provide clients with overall comprehensive packaging solutions; that is our goal."

"In the past, we stood completely behind, at most offering ideas and funds. Now we try to move forward, even to walk ahead of clients. We must build the platform first."

**The Imagination Space of 10 Billion Entrances**

Is a Red Bull can an internet platform?

ORG now produces 10 billion beverage cans annually. According to traditional values, a can of Red Bull, Want Want milk, and JDB herbal tea sell for about 5.5 yuan, 5 yuan, and 3.5 yuan respectively. On average, for each metal packaging product produced, ORG receives about 0.815 yuan from beverage brands.

But packaging is just a carrier. In the future, everything may depend on packaging; it may even become a connector.

For entrepreneurs, what matters more is not winning in the present, but breaking traditional value foundations and game rules, breaking boundaries, and winning in the future.

Zhou Yunjie keenly sees the infinite extension of packaging value and tries to redefine the industry.

"10 billion cans are 10 billion entrances. You should know that ORG produces 15 million Red Bull cans a day. Imagine that each Red Bull can is a communication platform. We can put 15 million communication platforms on the market every day. Even if only 5% are used by clients and consumers, it is a huge internet entrance, and the traffic is very, very considerable."

This time, it was Zhou Yunjie who chose Red Bull.

Up to now, the QR code upgrade and switching on 21 production lines in Red Bull's four factories have been completed, and products are being launched successively. Zhou Yunjie hopes to achieve anti-counterfeiting, traceability, channel management, and interactive marketing for client products through "one can, one code."

"In the short term, it may not be obvious, but after a period of customer data accumulation, the QR code business will build a comprehensive and mature information data internet platform for us. I believe that the value that QR codes and ORG can bring to clients is far more than this."

From a single manufacturing enterprise to "manufacturing +" service industry, Zhou Yunjie is ambitious.

In the blink of an eye, he has reached the age when his mother Guan Yuxiang founded ORG. Times always favor those who dare to imagine and act, don't they?

**Source: Diqi Finance (ID: DIQI326)**

**New Distribution's "Seventh B-end E-commerce Study Tour" is now recruiting!**

Activity process:

> June 19-23 Suzhou · Shanghai · Hangzhou
> 19th: Check in at designated hotel in Suzhou;
> 20th: Visit Suzhou Maideline;
> 21st: Visit Shanghai Haiding;
> 22nd: Visit Hangzhou Wangcang;
> 23rd: Return or free time for sightseeing;

**Welcome distributors interested in transformation to join us to learn and conduct on-site inspections:**

**Organization format**

1. Company visit
2. Actual market case visit
3. On-site explanation
4. One-on-one communication

Participating distributors only need to pay a registration fee of 200 yuan.

Other expenses are self-covered.

Long press this QR code or click "Read Original" to register.

**Long press QR code to add WeChat for registration**

**Previous study tour group photos:**

**6th B-end E-commerce Study Tour group photo, from top to bottom: Zhongke Shangruan, Shuhai Supply Chain, Yunmei Shares, Yishang Logistics.**

**5th B-end E-commerce Study Tour group photo, from top to bottom: Huiwangxing, Beiquan, Tongying Tianxia, Quanshihui, Zhongke Shangruan.**

**4th B-end E-commerce Study Tour group photo, from top to bottom: Alibaba Retail Link, Qianmi Network.**

**3rd B-end E-commerce Study Tour group photo, from top to bottom: Yunbao Shangmeng, Weijie City Distribution, Wanshang Yizhan.**

**2nd B-end E-commerce Study Tour group photo, from top to bottom: Jinhuobao, Caiba, Yishang.**

**1st B-end E-commerce Study Tour group photo, from top to bottom: Piduoduo, Beiquan, Yishang.**

**Click "Read Original" to register**

-END-


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671