Looking back, continue iteration and revolution and scale the greatest height

Towards the future, adhere to Far East spirit and open up new strategic pattern

Fighting at present, initiate a new era and consolidate defense at full blast

On January 17, Far East Horizon’s 2022 year-end working conference of key positions was convened in Shanghai with “adhering to Far East spirit, carrying on self-iteration” as the theme, attended by over 350 managerial employees of various business and functional directions, to inherit and renew the Far East spirit and together seek the path of iteration for the Company.

At the conference, Executive Director and CFO Wang Mingzhe of Far East Horizon presented the budget implementation and performance analysis report for 2022, and Assistant President and General Manager of Strategy Center Xu Huibin delivered the strategic planning report.

Continuous Business Growth Demonstrates Model Advantages in Iteration

In the financial report, the Company’s Executive Director and CFO Wang Mingzhe pointed out that 2022 is a year of hard struggling amid difficulties; when “survival is success,” the Company withstood the pressure and overcame the extreme impact of the pandemic, and achieved uninterrupted operation, business growth, assets safety, infrastructure stability, continuous increase of profitability throughout the year, and further improvement of market standing. Today, Far East Horizon’s industry-leading asset size and profit level sufficiently demonstrates the Company’s market capability and manifests the advantages of its business model, system and mechanism.

△Executive Director and CFO Wang Mingzhe of Far East Horizon delivered the Budget Implementation and Performance Analysis Report

The report indicates that Far East Horizon’s current business map, asset layout and financial structure are all healthy, and each sector exudes the vigor of sustainable development. Its traditional business keeps growing while operating effectiveness is being developed, and remains the cornerstone of the Company’s profit scale, liquidity safety and capital return. New business is a natural extension of the Company’s strategy, and a key measure of future development that will boost the improvement of financial efficiency. In the aspect of industry, the Company’s competitive advantages have been continuously consolidated in the market: Horizon Construction Development expands the border of growth and promotes integrated development at home and abroad; Horizon Healthcare further wins over the trust of the government and society after being tested by the pandemic for three years. 

Development is the hard truth. Only with continuous profit growth can we cope with the repercussions of COVID-19. The conference report has clearly pointed out tasks in various directions for 2023—on the basis of safety and stability, ensuring continuous optimization of financial structure and effective growth of profitability. The Company requests every subject of budget to take value contribution as its own responsibility, break through the past inertia, and seek steady development under the new circumstances.

Adhering to Far East Spirit and Upholding the Strategy Resolutely for Continuous Survival and Development

The brilliant achievements of Far East Horizon are the embodiment of the Far East spirit. In the strategic report, Far East Horizon’s Assistant President and General Manager of Strategy Center Xu Huibin reviewed the eventful times in the course of the Company’s development—facing risks, difficulties and obstacles, the people of Far East Horizon have scrupulously abided by the original aspiration, persisted in renewal and innovation, maintained a rigorous and practical style, and faced up to difficulties courageously. The extraordinary achievements created by those ordinary people have turned a nearly bankrupt company into one full of vigor, from book loss to standing on the industry’s peak with assets totaling over 300 billion yuan, and now the new development stage of “globalization of resources and globalization of operation.” All this originates from the inspiration and encouragement of the Far East spirit.

△Far East Horizon’s Assistant President and General Manager of Strategy Center Xu Huibin presented the Environment and Strategy Review Report

The year 2022 is the first year of the Company’s new era based on past achievements. Standing at a brand-new starting point and the convergence of times, facing the unprecedented situation, the conference report points out that the Company must unswervingly inherit and carry forward the Far East spirit in order to survive and develop continuously. We should uphold our strategy resolutely, lay equal stress on value and efficiency, continuously promote operation iteration and management improvement, give full play to the characteristics of Far East Horizon, form a differential competitive edge through marketization, internationalization and specialization, improve operation efficiency with scientific and technological means, and enhance the team’s potential energy with the elite strategy, so that the Company can “survive” more robustly and safely.

Regarding the current operation situation, requests were made at the conference for all directions to inspect the environment with a revolutionary mindset, reinforce operation and perfect management. Traditional business should delve deeper into the industry and further deepen specialization, reinforce the synergistic effect, and foster new profit growth points. Inclusive finance should be benchmarked against the outside, and strive to explore and polish the inclusive business model of Far East Horizon. Fe Horizon Infrastructure should strengthen operation and reinforce management with focus on sectors including new infrastructure and new energy. Assets business should promote the establishment of new business models with a brand-new revolutionary mindset. Overseas business should be oriented towards Hong Kong’s future financial environment and China’s new economic situation, and explore a brand-new overseas financial business model based on rational thinking and reverence for the market. Grand Flight should reinforce post-investment management and withdraw, and improve brand influence. FE Fund should strengthen the construction of investment capability and enhance control and coordination. In the aspect of industry, Horizon Construction Development will continue to expand scale and improve efficiency, create an asset-efficient profitable organization, and steadily advance the overall international strategy. Horizon Healthcare will continue model innovation and tap the big health market, and take its operation achievements to the next level. Horizon Education will stick to the international and characteristic development strategy and strengthen the integration of domestic and overseas operations.

Far East Spirit—Source of Confidence

Continuous Iteration—Foundation for Success

In the afternoon of the same day, surrounding the conference report with focus on the theme, leaders from various companies reviewed the key work of the directions they are respectively in charge of.

The hardships arising from the unexpected change of situation, the shift of policy and the impact of COVID-19 in the past three years are still fresh in our mind. At the frontline, many of us managed to overcome difficulties and travelled non-stop day and night to pay visits to clients; at the middle and back ends, many were stationed at the Company and fought tirelessly to ensure smooth operation with no effort spared; in the industry sector, many went all out to meet tight deadlines so that projects can be delivered as scheduled... So, what is it that keeps the people of Far East Horizon working indefatigably and willingly? Why do they never give up or take a rest? To be frank, the ultimate driving force originates from the innermost belief and shared values. Due to the precious wealth of Far East spirit, the people of Far East Horizon hold firmly to the truth instead of following the crowd; our managerial personnel are able to take charge in setting an example and keep the flag fluttering in the wind; and the Company always keeps its promises and fulfils its missions. Far East Horizon has reached its performance budget goals for more than 20 consecutive years, and is now ushering in the new strategic stage with steady progress and striding forward under the guidance of the new strategic positioning— “Backed by Mainland, Based in Hong Kong, Influencing Southeast Asia.”

Long-term goals are achieved with steady progress, and achievements are made through continuous improvement. The attending leaders indicated that each business unit should take a self-inspection, promote innovation and iteration, go ahead steadily and surely and advance in classified manner, to ensure that each action is executed effectively and every asset is operated efficiently, and continue to build Far East Horizon’s unique business model.

CEO Kong Fanxing:

Promoting Collaborative Innovation and Making Timely Adjustments through Marketization, Internationalization and Specialization

Continuing Onward with Stable Operation, Improved Management and Strengthened Faith

At the end of the agenda, Vice Chairman of the Board of Directors, Executive Director and CEO of Far East Horizon Kong Fanxing made a summative speech.

Looking back on 2022, a year full of risks and challenges, CEO Kong first expressed sincere thanks to the people of Far East Horizon fighting at various battlefronts, regions and positions across China on behalf of Far East Horizon’s Board of Directors and managerial staff. According to CEO Kong, the fact that the Company managed to maintain steady business performance throughout the year is rather rare given the complexity of the current environment; over the past two decades, Far East Horizon has contributed to the nation and helped many enterprises to achieve development while creating a work platform and atmosphere for its staff, and this result is gratifying.

△Chairman of the Board of Directors, Executive Director and CEO of Far East Horizon Kong Fanxing made a speech

How about the future? No one has a sure answer. CEO Kong said frankly, the Company has enjoyed the dividend brought by rapid development in the past, and therefore must also accept the risks and challenges therefrom. Today, Far East Horizon is an enterprise with over 300 billion yuan of assets, more than 20000 employees and countless domestic and overseas investors, which makes us less flexible than before. Unwilling to fall down, we can only continue onward with heavy load and make timely adjustments along the way.

1. Forget past success, stop self-consolation, and live with dignity

CEO Kong reminded us to put behind all past difficulties, perspiration and even tears. Our achievement today is the inevitable result of a huge size. We should continue to absorb resources, expand market coverage, repay the government and nourish our employees. “Throughout the course of history, an enterprise can be strikingly insignificant, and we are merely passers-by.” We are lucky to stand here, and this represents a certain power. Just as the Far East spirit goes: as an enterprise, we abide by the law in operation; as individuals, we shall live with dignity.

2. Win greater space for strategic development with “Backed by Mainland, Based in Hong Kong, Influencing Southeast Asia”

As a model-driven enterprise, Far East Horizon scrupulously abides by the endogenous logic of enterprise and insists on serving real economy. It has indeed promoted certain industries and formed some rules, which are evidence that our path is worth following and the Company’s strategy has infinite possibilities. CEO Kong pointed out, the “new strategic positioning” of the Company is an important strategic adjustment made last year, which requires the people of Far East Horizon to continuously broaden their strategic thinking and strategic vision, and follow up in various business directions according to the pace of operation.

3. Take “stability” as the top priority of operation and conduct business of various directions in classified manner

As CEO Kong said, in 2023, the Company as a whole should take “stability” as the top priority. Traditional business should make steady progress and avoid rash advance by all means, with focus on improving the connotation of operation. Horizon Construction Development and Inclusive Finance should remain moderately proactive; Fe horizon Infrastructure, overseas business and equity investment should take opportunities while maintaining stability; Horizon Healthcare should systematically innovate business model and improve business pattern to exploit the long tail effect.

4. Give full play to Far East Horizon’s advantages of “marketization, internationalization and specialization”

 “Marketization, internationalization and specialization are an important foundation of Far East Horizon, and also crucial for our survival in the future market.” CEO Kong demanded that in urban public utility, we should break through the existing business pattern and work closely with other sectors, so as to gradually establish an innovative and differential network system, organize a wider range of resources, and actually enhance the synergic effect by “twisting steel wires to steel wire rope.”

5. Perfect management with unremitting efforts and enhance research to improve management system

A good company can’t do without good management. When it comes to this key issue that determines the survival of the Company, CEO Kong stated that a “rotten apple in the barrel” will cause a chain reaction in the Company, and that the managerial staff must manage the team and business well, maintain perceptive and sensitive to subordinate business units on behalf of the headquarters, constantly reflect on themselves, and rectify deviations in a timely manner. This year, the Strategy Center will take the lead in reinforcing systematic review, integrating the system with people, and researching into a management system with people as the core element.

Let’s charge at the toughest and aim at the farthest! Facing 2023, a year full of uncertainties, CEO Kong remarked: we should live up to our conscience, the society’s expectations for the people of Far East Horizon, the established reputation of Far East Horizon in the market, the honorable title of “Huangpu Military Academy” in financial leasing, the Company’s market-oriented mechanism inside and outside of China, and all clients, friends and family who have been supportive. When we conquer insurmountable difficulties, ascend to a dauting height, turn the impossible into possible, and gradually get acclimatized to, master and once again take the lead in the new market, then the people of Far East Horizon will create new history as the generation who initiates the new strategic stage of “globalization of resources and globalization of operation.”

After reminiscing about the eventful times over the past two decades, now we shall keep up high morale and begin a new journey. At the end of the conference, CEO Kong once again affectionally extended thanks to the colleagues fighting side by side, to rekindle their passion and enthusiasm towards life, and appealed to all people of Far East Horizon to act confidently, courageously and responsibly in the name of Far East Horizon, refuse to give up, and keep marching forward.