A New Star in Emerging Stock Market Interview with Ching Chan Optical Tech. President ALEX WU

Taiwanese emerging stock market has recently welcomed a newcomer- Ching Chan Optical Technology. The stocks of Ching Chan have been officially traded for NT$70 per share under the electronic machinery category since April 6. Ching Chan was originally a vibratory feeding bowl manufacturer, and has been always considered as  a leading optical fastener sorting machine supplier. In 2014, it expanded the business to fastener formers and has been gradually gaining its presence in this sector in the global fastener market. Its combined revenue in 2015 was NT$0.72 billion, up 31% from NT$0.547 billion in 2014. The profit was NT$0.129 billion and the EPS was NT$5.27. Despite the global market recession and the fact that Taiwanese machinery industry revealed little growth or even decline in 2015, Ching Chan still keeps high growth, and has become a new star in the emerging stock market.

What’s President Wu’s Business Philosophy?
When we stepped into President Wu’s office, instead of stating the business territory, he first shared with us a cup of good tea, and showed us the speech script that he was going to present in a school, which illustrated how his business was started. He also mentioned that a self-built library in his hometown (Beigang) would be inaugurated soon and his biography would be likely to be published this autumn. Many people may think that with such careers, this president should be very old with grey hair and may not believe this president, who doesn’t follow rules at all times, is only under 50. When being asked about why he would like to publish his biography in the meridian of his life, Wu said, “To make contributions.”
In fact, President Wu was awarded the Model of Entrepreneurs in 2015. More than that, Ching Chan’s sorting machines were also awarded the 16th and 21st Taiwan SMEs Innovation Awards from MOEA, and the 1st place of the top 25 best products in the U.S. fastener market.

Enjoying the Success When He was Young
In 1992 President Wu and his brother co-invested NT$ 0.4 million in the establishment of “Chuan Tien Enterprise,” which specialized in design and manufacture of vibratory feeding machines. At that time, Wu was only 27 or 28. He even earned more than NT$10 million in sales of machines before the age of 30. However, such success made him lost in the importance of quality, and that resulted in problems happening to his after sales, and turned out to be his first tumble in business.
However, such failure became the turning point of his business. With the support from relatives and friends, Wu moved to Tainan and restarted his business. On Sep. 21, 1994, Ching Chan Machinery, specialist of sorting and assembly machines, was established. Wu began to enjoy the steady growth when his customer bought 4 sets of automated assembly machines in 1999. CCM’s 1st generation of optical sorting machine was developed in 2000.

Evaluating Risks Before Investments
“I’ve made lots of investments and Ching Chan is the only successful investment I’ve ever made,” said Wu. This is true as a business can only sustain when the capital invested is not wasted. Wu likes massaging to relax himself and he once established a SPA salon with extra delicacies and karaoke service to entertain customers. It took Wu one year to establish this salon; however, only 3 months after the operation the salon was closed. This seemed to be a failure to him, but that did not affect him. How did he get over it? Wu added, “In my analysis at that time, if the annual income of the salon was less than expected and if the income from store rental could exceed the annual costs, why not do it?” This is why President Wu never feels afraid of making investments and experiencing failure. Although there may be failure, sometimes there will be also unexpected income if the failure can be correctly analyzed. The spa salon is a very good example, and letting the store has helped generate regular income for President Wu.

President Wu:
Now is Just the 1st Year of Ching Chan
Quality is the top issue, and automation rules everything. When he travelled in India, Wu saw a Hindu temple whose lights, audio, and statues were automated. He was addicted to automated factories, and predicted that in the future machines will replace humans in China and Taiwan. Wu said, “There should be a “Terry Guo” in every industry.” Taiwanese fastener industry can create another miracle through a more macroscopic perspective and a totally different way of thinking.  
There is always good news from Ching Chan every year. Its main products include fastener optical sorting machines, screw formers, process monitoring equipment, 100%-inspection service, etc. Ching Chan has well-established business approaches in China and Taiwan and sales networks in major industrial countries around the world. The prices of its patented products are very competitive. It has begun the sales of CCM screw/nut sorting machines since 2004. Within only 11 years, the screw optical sorting machines were sold to global leading fastener suppliers from more than 30 countries and the total sales were over 2,000 sets (50% to China, 15% to Taiwan, and 35% to other countries). 
Ching Chan has operations in Taiwan (Kaohsiung/Taichung/Taoyuan) and China (Kunshan/Dongguan/Chongqing/Jinan/Ningbo). A year after its new 13,222 sq m. Taiwan HQ was inaugurated in Jan. 2015, the news of trading in the emerging stock market was soon announced. It also plans to trade over the counter or in the stock market in the future, showing its huge ambition. Wu said, “Now is the 1st year of Ching Chan! Opening the public offering is to consolidate the base of future business and recruit more top-level talents.”  Ching Chan’s vertical integration strategy from vibratory bowls, sorting machines, to formers is generating some positive effects. We expect to see the final result of Ching Chan’s blueprint that may change the fastener industry, as it will definitely overwhelm the market.