On July 10, FEHORIZON held its 2026 mid-year work conference for key positions in Shanghai. Kong Fanxing, Chairman of the Board of Directors, Executive Director, and Chief Executive Officer of Far East Horizon, attended the meeting and delivered an important speech. Wang Mingzhe, Executive Director and Chief Financial Officer, presented the Budget and Performance Analysis Report, while Xu Huibin, Vice President and General Manager of the Strategy Center, delivered the Environmental Analysis and Strategic Review Report. The conference was conducted through a main venue linked with multiple branch venues, bringing together nearly 270 management professionals from across the company to participate both in person and remotely.

The year 2026 marks the 25th anniversary of FEHORIZON's relocation south and the 15th anniversary of its public listing. At this significant juncture, with multiple development milestones converging, key leaders from all business areas gathered to review the first-half performance and discuss the company's long-term growth path.

Three Years of Deep Cultivation: A New Strategy Reshapes the Company's Operating Foundation

Xu Huibin, Vice President of FEHORIZON and General Manager of the Strategy Center, pointed out in the strategic report that in the face of operational pressures, the company anticipated major trends early and proactively pushed forward with comprehensive strategic adjustments. In the financial sector, the urban services regional footprint was optimized; the industrial services sector forged partnerships with the best players; and the industrial operations segment held its ground, finding clear directions for strategic breakthroughs.

After three years of dedicated exploration, the new strategy has fundamentally transformed the company's operating foundation, establishing a business ecosystem unique to FEHORIZON and entering a phase of value realization. At its core, this success is driven by four distinguishing characteristics of the strategy, which together form a defensible competitive advantage that is difficult to replicate—

l  Uniqueness: Rooted in Hong Kong with a global perspective, the company coordinates both domestic and international markets and resources, building an integrated internal synergy system. With a top-down view, it identifies real customer needs and delivers one-stop integrated solutions.

l  Scarcity: By integrating world-class resources across a broad spectrum, the company has developed unique competitive advantages and built a layered ecosystem network that acts as a magnet for scarce resources.

l  Urgency: With external industry rules being reshaped and past experience losing relevance, internal customer demands are urgent, requiring swift and decisive action, as the window of opportunity is extremely valuable.

l  Feasibility: The "Iron Triangle" independent operating mechanism enables efficient customer coverage; tangible physical spaces in Shanghai and Hong Kong serve as full-scale carriers of the company's intangible service value. With a clear path to execution, three years of transformation have yielded tangible results.

The conference report noted that while phased results have been achieved, the pace of adjustment varies across different business segments, and the road ahead remains challenging. In the second half of the year, swift adjustments and decisive action are required!

Solid Results Speak for Themselves: All Business Units Deliver Strong Performance on Strategic Track

Wang Mingzhe, Executive Director and Chief Financial Officer of FEHORIZON, pointed out in the Budget and Performance Analysis Report that in the first half of the year, all business segments have been operating on the strategic track, delivering solid performance with clear positive trends. Profitability continued to improve, financial resilience strengthened, equity buffers were reinforced, and resources from all sides kept flowing in. The achievement of mid-year targets is not just about the numbers—it validates the effectiveness of the underlying strategic direction, enabling the financial business to truly move beyond "conventional competition" and industrial operations to break through "traditional boundaries."

The report stressed that the overall strategy remains in motion, and achieving the goals requires nothing less than full commitment. Both the financial business restructuring and the industrial operations breakthrough represent "high-altitude efforts" at the strategic level, leaving no room for complacency throughout the year. Each business unit must not only stay anchored on long-term development directions, fully meet annual budget targets, and continuously improve earnings quality, but also deepen the strategic substance to build a solid foundation for the company's long-term growth.

Stay Grounded in Execution: All Hands Aligned and Driving Toward the Goal

In the afternoon, senior leaders delivered work reports aligned with the conference's key messages, reviewing the performance of their respective business areas in the first half of the year. There was broad recognition that the company's early strategic adjustments have been clearly directed, timely in action, and effective in execution. The leaders responsible for each area stated that it is essential to deeply grasp the core logic and four distinctive characteristics of the strategy, drive business with a holistic perspective, and steadily strengthen the company's long-term viability.

The first-half operating results have confirmed that the strategic path is well-suited to the current environment and represents an effective approach to navigating through cycles. Attending leaders agreed that there is no turning back—only a full-speed sprint forward. In the second half of the year, they will lead their teams with determination and solidarity, driven by proactive thinking and underpinned by a rigorous approach. They are committed to executing every step of the strategic journey with focus and discipline, and to achieving all annual operational targets.

President Kong Fanxing:

Innovative Models That Continuously Create Value for All Stakeholders

Stay Firm on Strategy, Build a Lasting and Effective Ecosystem for FEHORIZON

At the conclusion of the conference, Kong Fanxing, Chairman of the Board of Directors, Executive Director, and Chief Executive Officer of FEHORIZON, delivered a concluding speech. President Kong noted that the conference report was incisive and hit the core issues, and the leadership reviews were thorough and complete. The first-half results have delivered a reassuring report card. On behalf of the board and management, he extended sincere gratitude to all FEHORIZON employees working across the globe and across all business functions.

Looking back on 25 years since the move south—a quarter of a century through all kinds of weather—FEHORIZON has always been addressing one fundamental question: where is the company headed, and how does it sustain itself over the long term? Over these 25 years, we have grown from a team of a dozen people to a comprehensive group with nearly 20,000 employees and a diverse portfolio of businesses. Even through cyclical volatility and operational pressures, we have remained prudent in our development and have never suffered a disruptive setback. The smooth execution of this year's mid-year tasks fully confirms that the company's 3.0-era strategy remains well-aligned with the current environment.

1. Gain a Deep Understanding of the Environment and Anchor the Company's Growth in Sustained Value Creation

President Kong pointed out that as an economic organization, FEHORIZON's core mission is to become an outstanding enterprise that consistently creates value for all stakeholders, striving for long-term sustainability through the dedication of generations of FEHORIZON people. "We cannot build this company by following a textbook template," President Kong said. He urged FEHORIZON people to let go of a passive mindset, embrace critical thinking and healthy skepticism, question as they act, and find a development path that truly fits the company's unique context.

2. The New Business Ecosystem Represents a Model-Driven Transformation of Our Era

President Kong emphasized that as a model-driven enterprise, continuing to compete along old paths would be like spinning a cocoon around ourselves. Building a new business ecosystem is the way forward for the company's long-term survival. He stated frankly that the first-half operating performance is not just about numerical growth—it is positive validation of the logic behind the new business ecosystem, giving us confidence in its durability and effectiveness.

3. The New Strategy Has a Stable and Long-Term Horizon, Creating a Lifelong Career Stage for FEHORIZON People

President Kong noted that as an effective economic organization, the company's value to individuals is clear: it amplifies personal capabilities, reduces individual exposure to systemic risks, and provides efficient access to diverse social resources. We will provide a stable professional platform for FEHORIZON people who have vision, ability, and share the company's values—offering a solid foundation for the second half of their careers, enabling long-term mutual growth between individuals and the organization.

4. Stay Disciplined in Management and Operations – Leaders at All Levels Must Be Deeply Engaged and Professionally Proficient

President Kong pointed out that management must never be neglected. Every business unit must take full ownership of its responsibilities, and all leaders must be deeply involved in their areas of work, striving for mastery in their respective fields and leading with professional competence.

The road ahead is tough, and time waits for no one. In closing, President Kong encouraged all FEHORIZON people to stay fully committed, face the challenges of our changing times head-on, move forward in unity, push toward new heights, and build a stronger foundation for the company's long-term success.