A new age has begun, and enterprise development face a new environment and new changes. We must break new ground on the basis of new business and a new team.

On January 26, the eve of the Spring Festival, Vice Chairman of the Board, Executive Director and CEO of Far East Horizon Kong Fanxing and Executive Director and CFO of the Company Wang Mingzhe went to Hong Kong together with other relevant persons in charge of human resources, investor relations and legal affairs to conduct a research. During President Kong’s first overseas employee research, in-depth exchanges were unfolded between the Company leaders and its employees in Hong Kong one by one.

 

Globalization of resources: Hong Kong’s financial position is irreplaceable

 

Located at 66/F International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong, the Hong Kong office of Far East Horizon enjoys an uninterrupted view of the flourishing and modern Victoria Harbour. Numerous multinational enterprises and large financial institutions gather here, forming the urban landscape of Hong Kong as an international business, trade and finance center.

 

 

△Vice Chairman of the Board, Executive Director and CEO of Far East Horizon Kong Fanxing speaking

 

At the beginning of the research, President Kong shared his view with the colleagues present: Hong Kong is a universally acknowledge international finance center; Far East Horizon’s listing in Hong Kong in 2011 is aimed at realizing “globalization of resources and localization of operations.” We organize resources facing the world to guarantee and support local operations on the mainland. Currently, speaking from the long-term trend, under the “one country, two systems” framework, we believe that Hong Kong’s role as the financial link between mainland economy and global economy is unique and irreplaceable.

 

 

△Executive Director and CFO of the Company Wang Mingzhe speaking

Overseas financing has remained an important module in the Company’s diversified financing layout. In the past two years, against the backdrop of the COVID-19 pandemic, Far East Horizon has managed to keep its overseas financing scale steady and rising, enriched its overseas funding patterns with convertible bonds and green loans, and further improved the recognition of Company in the capital market.

  

President Kong also emphasized that the globalization of resources is not just about financing; a more important mission of Far East Horizon is to show the world’s fund holders our capacity, method and philosophy of operation, including our business model and vitality.

 

Globalization of operation: pursing distinctive vitality of overseas business

On October 18, 2019, Far East Horizon conducted the largest reform of organizational structure since its relocation to Shanghai, and the Overseas Business Department emerged as a new type of business at this historic moment. It’s been over two years since its establishment, and most of the employees at the site were from the Overseas Business Department. They had an in-depth exchange of views on the ideas and development of this business with the Company’s leaders.

 

When talking about the original intention of establishing the Overseas Business Department, President Kong said assertively: as a Hong Kong-listed company, Far East Horizon has already achieved globalization of resources, and the gradual realization of asset globalization is an inevitable path. In addition to traditional funding, the Company now owns overseas business, and is estimated to have more subsidiaries spun-off for listing in Hong Kong in the future. Our operating activities will have more diversified categories and richer connotations.  

 

The establishment of the Overseas Business Department is not an abrupt decision made two years ago, but based on sufficient consideration and argumentation with a strategic research conducted five years or even earlier. The birth of the Overseas Business Department marks the official start of the Company’s third phase—“globalization of resources and operations.”

 

Many colleagues were concerned about the future development planning of overseas business, and President Kong pointed out that the overseas business of Far East Horizon was breaking the ice. It is a new task is to integrate the changing Chinese economy, the changing internal operation mechanism of Chinese economy and the new niche of Hong Kong’s changing financial institutions at all levels under new circumstances with the unique characteristics of Far East Horizon. The direction established for the Company’s overseas business is alternative investment management. By the end of 2021, it has obtained Type 4 and Type 9 licenses from the Securities and Futures Commission (SFC), and possibly more licenses to receive in the future. Based on a comprehensive consideration of the management mechanism of monitoring, the management mechanism of license, and our own operation mechanism, we will gradually establish a set of business operation methods and form a distinctive mode of operation.

With the internationalization of domestic enterprises and China’s industry, our services should also “go global.” By eliminating the barriers between China and abroad, between CNY and USD, between stock and bond, and even between B end and C end, eventually, we hope Far East Horizon can become a distinctive “industry private bank” specializing in providing systematic services for industry customers. In ten years, we expect the Company’s alternative investment management in Hong Kong to be one of a kind—not the largest, but full of vitality.

 

Regarding how to form the unique characteristics of Far East Horizon’s overseas business, President Kong summed up the following points:

 (1) Marketization: unswervingly follow the direction of market operations according to the market principles without the limitation of systems and mechanisms.

 (2) New specialization: specialize in an area following the professional logic, meanwhile updating the financial services of Far East Horizon on the basis of its features.

 (3) Innovation: step into uncharted territory rationally, rather than seeking to be different.

 (4) Competition: place the Overseas Business Department in a strategic position amid the comprehensive financial services of Far East Horizon, to compete with other new financial services and form its own characteristics while Far East Horizon is only a background factor.

Considerations should be made for the long term from a comprehensive perspective. The overseas business should develop steadily and surely, and avoid “overspeed and overload.” This a progressive process with particles of sand accumulated to form a towering pile. The Company will enhance the allocation of human resources to risk management and legal affairs, complement finance with scientific and technological development, support its staff to reinforce information sharing, extend knowledge boundary and broaden business vision, and create a good system and structure of its future-oriented overseas business at the beginning.

 

Secret of success—“forward-looking” perspective and “maximum” guarantee

 

How can the people of Far East Horizon maintain a competitive edge in the fiercely competed financial market of Hong Kong? Taking the precious opportunity of this investigation, new employees asked President Kong for the “secret of success” one after another.

“Forward-looking” perspective: finance-industry integration

Looking back on the Company’s history of entrepreneurship, President Kong expressed, 20 years ago we first proposed the idea of integrating finance with industry according to industrial division in the finance industry, which was rather ahead of the time. With the development of China’s industry and enterprises, we gradually figured out a basic approach to financial services.

Nowdays, with the mainland economy facing adjustment and both finance and industry under adjustment, Far East Horizon’s unique service mode has gradually gained recognition from domestic economic and business circles. Since the outbreak of COVID-19, the Company’s strategic foundation in the financial service industry has once again showed unique vitality. Thus, in both 2020 and 2021, Far East Horizon has realized sustainable growth, asset security, steady operation and expectable profitability.

With an important role to play in the global economy, Chinese mainland can be replaced by no one. In the future international division of labor system, Hong Kong has to be backed by the mainland China economy. Far East Horizon always keeps abreast of the environment, with a basic prediction about its changing trend and evolution tendency. We are optimistic strategically, but serious and prudent tactically. In the future, we will take full advantage of the exceptional geographical advantage of Hong Kong, and kick off the globalization strategy of Far East Horizon as a Hong Kong-listed company.

 

“Maximum” guarantee: compliance is maximum security

Some new employees were impressed that the Company took the initiative to strengthen the supervision of non-license business according to the regulations for existing licenses despite the relative freedom in certain areas of Hong Kong’s financial market. In response, President Kong emphasized that compliance is the bottom line of operation, and this is the basic idea that Far East Horizon has strictly abided by over the years. President Kong explained as follows:

 (1) Compliance is the maximum security, and violation is the greatest risk. In addition to legal compliance, it also includes a grasp of the risk prevention mechanism and a meticulous pursuit of the operational process.

 (2) A scientific judgement should be made of the compliance level. Under the premise of never touching the red line, leave some space for discussion to guarantee the Company’s security while promoting its business development.

 

The Spring Festival was around the corner, but many colleagues in Hong Kong still could not be reunited with their family at home due to the pandemic. Some of them said, “Recently, my parents in mainland China received a condolence payment from the Company for the Spring Festival. They said the Company was fulfilling my filial duty on my behalf. Hearing this, my heart was filled with warmth. A million thanks to the Company.” Also, President Kong extended sincere thanks to the colleagues in Hong Kong for their resolution and sacrifice, and wished the staff of Far East Horizon success in work, good health and a happy Chinese New Year in advance.