Nine Dragons Paper – 2009
The market waits for no one. – Cheung Yan, Chairwoman • What is the business model? • Why did Mrs. Cheung succeed? • What is her support structure? • Who owns the company? • What did go wrong? How it could have been avoided? • Will you do what Mrs. Cheung did? • How would have advised Mrs. Cheung?

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Nine Dragons Paper – 2009: Case Questions

1.

How does Mrs. Cheung think? What does she believe in when it comes to building her business? How would you summarize the company's financial status? How does it reflect the business development goals and strategies employed by Mrs. Cheung? Is NDP in trouble? How would your answer differ if you were an existing shareholder, a potential investor, or an analyst?

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How does Mrs. Cheung think? What does she believe in when it comes to building her business? – Mrs. Cheung believes in a rapid growth strategy in which she is building productive capacity, which she hopes and expects, to dominate her industry segment in years to come – Her strategy of vertical and horizontal integration is ‘old style’, most companies today choosing to focus on specific activities in an industry’s value chain which have the larger margins. And choosing not to own all links in the value chain – Mrs. Cheung’s approach is one which she believes will reduce all significant risks in the company’s ability to grow rapidly, not being dependent on China’s infrastructure or other business-based product and service providers for critical elements of NDP’s business – She believes that corporate productive capacity comes first; if that requires a longer-term horizon for investment, bearing greater debt burdens along the way – well that’s just part of being great

2. How would you summarize the company's financial status? How does it reflect the