“This iteration is revolutionary—

essentially an iteration of business logic.”

On July 12, Fehorizon’s 2023 mid-year working conference of key positions was convened at Far East Horizon Plaza in Shanghai, attended by nearly 350 managerial employees of various business and functional directions. Together, the attendees reviewed the past course of development, examined the current market situation, and discussed the direction of future development.

This conference was also convened in the form of “main venue + branch venues through livestreaming.” Executive Director and CFO of Fehorizon Wang Mingzhe presented the budget and performance analysis report for the first half of 2023, and Assistant President of Fehorizonand General Manager of Strategy Center Xu Huibin reported on environmental analysis and strategic review.

Review of the Past:

Seeking Changes while Preserving Stability; Forging Ahead on the Whole

In 2023, Fehorizon has entered the third stage of its global development. Facing environmental changes and market differentiation, the entire company remains in “wartime” status and actively adapts to the environment—prioritizing stability, grasping opportunities and seeking changes while preserving stability.

▲Executive Director and CFO Wang Mingzhe presented the Budget and Performance Analysis Report

In the report, the Company’s Executive Director and CFO Wang Mingzhe indicated that in the first half of 2023, Fehorizon has kept forging ahead on the whole with its Forbes ranking increased substantially and S&P rating recovered. Its traditional business maintains stable and continues to act as the “cornerstone.” The mode of its new business is optimized, while strategic coordination and support effect gradually becomes clear. CDHORIZON is successfully carved out and listed, with value improvement realized. Horizon Healthcare has reached an economic scale with development potentials and initiated preparation for capitalization.

It is pointed out it the report: in the second half of 2023, the overall goal and general strategy of the Company remain unchanged, and all business directions shall still strive to reach the objectives of asset security, flow robustness, efficiency guarantee and connotation enhancement, so as to take the first step steadily and soundly at the new strategy stage.

Vision of the Future:

Abiding by the Strategy and Changing with the Times

Looking back at the past, we believe that Fehorizon has chosen the right path without stepping on the red line or letting down the times. Assistant President of Fehorizon and General Manager of Strategy Center Xu Huibin emphasized in the report that persisting in value creation and model innovation and adhering to the “finance + industry” strategy is the foundation for the survival and development of Fehorizon over the past two decades. The development of all business of Fehorizon relies on deep insight into the industry; financial service and industry operation share the same vein and are interconnected. Based on the basic logic of industrial division, Fehorizon has formed a specialized and integrated business model. Especially in the first half of this year, CDHORIZON has risen to the challenge and become the first equipment operation service provider listed in Hong Kong, which effectively proves the correctness of the “finance + industry” strategy. 

▲Assistant President of Fehorizon and General Manager of Strategy Center Xu Huibin presented the Environmental Analysis and Strategic Review Report

The times requires us to discern the overall long-term economic trend, and more importantly, to make a difference in the era of existing assets with crises and opportunities side by side. Therefore, under the premise of scrupulously abiding by the strategy, we must change with the times. But how? The direction for upgrade is proposed systematically in the report——

Consolidating “Internationalization, Marketization and Specialization”

Since this year, internationalization, marketization and specialization has become the key issues of Fehorizon. To highlight the Company’s internationalism, we must rely on the strategic positioning of “Backed by Mainland, Based in Hong Kong, Influencing Southeast Asia,” combine “bringing in” and “going out,” and expand our operation while meeting client needs. To give play to marketization, on the outside, we should satisfy the customization requirements of clients with marketized operation of high efficiency; on the inside, we should guarantee organizational vitality through resource allocation with a marketized mechanism. To keep a foothold of specialization, we must rely on the specialized competency accumulated through industrial division of labor and engage in deep interaction with the industry. With the combination of “internationalization, marketization and specialization,” Fehorizon will develop the ability of large-span and multi-industry resource combination, and ultimately constitute its competitive advantage through service integration.

Exploring the Means of “Dual Services”

At the new stage of globalization, Fehorizon has come up with the important idea of “serving enterprises and entrepreneurs.” Through years of model iteration, Fehorizon has been able to provide corporate clients with integrated services covering finance and industry throughout the entire life cycle of enterprises. On its basis, it will create a value-added service center for corporate clients innovatively, give play to its “internationalization, marketization and specialization” advantages, integrate internal and external resources, establish an interactive mechanism, and offer differentiated, characteristic and caring services for entrepreneurs cooperating with Fehorizon in the four core directions including asset security, intergenerational inheritance, wealth management and healthcare, so as to integrate “serving enterprises” with “serving entrepreneurs” for a win-win situation.

Deepening Business Formation to Penetrate “Four Layers”

Close in line with the characteristics of economic operation of the new era, Fehorizon should deepen its business formation to penetrate “four layers” and drive the coordinated services and integrated operation of business at all layers with public utilities playing a vanguard role, so as to realize “serving urban upgrade and industrial upgrade” together.

With focus on specific key work, the report says: at the operation level, in traditional business we should combine “internationalization, marketization and specialization” advantages with “dual services,” reinforce market capacity and upgrade service mode. In terms of inclusive finance, we should continue to improve operation potentials and polish Fehorizon’s characteristic inclusive business mode. In the aspect of assets business, we should create a professional private equity management institution and enhance the systematic management level. In infrastructure investment, we should strengthen basic management, and continue to explore new directions. Regarding cross-border business, we should speed up model exploration and internal & external coordination surrounding the main thread of business, meanwhile giving play to the role of the Company as a bridgehead to accelerate the construction of capacity for satisfying the needs of corporate clients. As for equity investment, we should promote the upgrade of investment logic and the optimization of investment management system in the new era.

CDHORIZON should step by step promote its transformation into an integrated service provider, continue to optimize operation efficiency, and construct an operation system facing global development. Horizon Healthcare should find an operation mode with its own characteristics in the new environment, establish a “fleet-style” management mode, and absorb more resources by virtue of capital. Horizon Education should keep improving the connotations of school running, and consolidate the characteristics of international school running. At the management level, the report has also put forward requirements in five aspects including enhancing security management, strengthening group management and control, improving functional management, increasing technological application, and forging an elite team.

In the afternoon of the same day, surrounding the report, the Company’s managerial personnel reported on their work with focus on their respective areas of responsibility. The attending leaders indicated that due to the Company’s forward-looking judgment, overall arrangement in advance, strategic upgrade and adjustment of decision-making one year ago, a favorable trend has been observed since the first half of 2023. In the second half of 2023, under the strategic guidance of “internationalization, marketization and specialization,” “dual services” and “four layers,” we should understand the situation clearly, get rid of inertia, keep the mind open and transform the thinking pattern to promote service upgrade and capability upgrade. Through multi-dimensional development within an effective clientele, in-depth interaction surrounding diversified client needs and comparative advantages created on the basis of differentiation, we should carry out iteration and upgrade constantly to race against time and the rapidly changing environment, and keep fighting for the future development of the Company.

At the end of the conference, a summary speech was made by Chairman, Executive Director and CEO Kong Fanxing.

▲Chairman, Executive Director and CEO Kong Fanxing made a speech

CEO Kong first mentioned that, unlike all previous mid-year working conferences, this conference’s significance for the Company is no less than the decision to move to the south twenty years ago. Looking back at 2022, last June can be regarded as the key time point as the Company deliberated on what course to follow. In the face of a constantly changing and unpredictable environment, we often think: Why do we exist? How should we go forward?

All in all, Fehorizon is a model-driven enterprise with a service-oriented type of business featuring finance. Only when we prove our own value by creating value for the society can we be able to exist and survive, hence the need for iteration and upgrade of the essential business logic. The good news is, through this round of efforts, our idea has demonstrated initial effect in the first half of 2023, which adds to our confidence in upholding strategic upgrade.

Serving Urban and Industrial Upgrade by Combining “Dual Services” with “Internationalization, Marketization and Specialization” 

CEO Kong stressed that with the beginning of a new era, we should believe that “internationalization, marketization and specialization” is a particularly important comparative advantage of Fehorizon. In the industrial direction, we should first comb through the industry atlas to find effective clients with future vitality, and then combine “dual services” and “internationalization, marketization and specialization” for interaction. In the urban direction, we should form a comprehensive layout, and construct a “3+1” structure by integrating public utilities, assets business and infrastructure investment with cross-border business, and serve various aspects of urban upgrade with “dual services” and “internationalization, marketization and specialization”, so as to promote the improvement of urban operation and management level.

Following Strategic Upgrade with Iteration of Cognition and Knowledge

Most importantly, this round of iteration is the iteration of cognition and knowledge. The core task for the second half of 2023 is to insist on model innovation of strategic upgrade. Managerial personnel at all levels must understand this mode, lead and drive the team to comply with model upgrade, and enhance cognitive competence and operation ability. Everyone requires constant iteration of cognitive competence, knowledge structure and vision.

Cherishing Employee Value—Unshirkable Responsibility of Managers

The vision of Fehorizon is “striving for excellence,” and to create value for all aspects of the society is a very important point, i.e., creating value for the people fighting together. CEO Kong pointed out that it is an unshirkable responsibility of managerial staff—especially those in charge of various departments—to strive for excellence and cherish employee value. Managerial staff need to deem value creation for employees as their honor and mission, as it is an honor as well as a responsibility and concerns individual dignity.  

In the end, CEO Kong thanked the attending managerial personal and all people of Fehorizon in all directions including finance and industry. Looking into the future journey, CEO Kong urged people to redouble their efforts to weather through this most difficult year successfully, jointly practice the success of this revolutionary upgrade of strategy, and create even more remarkable differential advantages for the long-term and stable development of the Company.