Moderator (Fu Weigang): Thank you for this opportunity to communicate with entrepreneurs, I'm Fu Weigang from Shanghai and the Institute of Financial Law. The theme of this forum is "double cycle" new pattern, shaping the core value of enterprises. I would like to invite each of you to introduce the core value of your business.
Ma Yuan: I am Ma Yuan from the Internet and Innovation Center of Bank of Communications, and I would like to introduce us. First of all, for the Bank of Communications, doing investment is not only to empower enterprises with equity investment, or to empower enterprises with other packages of financial services, such as loans and financing. Second, in addition to pure investment, we also have strong research capabilities, and the accuracy rate of investing in companies is still relatively high. The reason is that we use qualitative and quantitative methods to rigorously evaluate enterprises from different perspectives, both macro and micro, and consider the whole set of enterprise values. Colleagues, we have also formed a whole set of system in investment, for example, in the first two years in the C-end of the consumer Internet, we seize the opportunity in the field of O2O, the core assets of BAT, independent track unicorns and other areas, two years later, we transformed to the enterprise service 2B investment, forming a top-to-bottom, from the level of SaaS to the data center, and then to the virtualization level of the excellent enterprise rights and responsibilities and investment. Above, thank you!
Han Gang: My name is Han Gang, from Cedar Holdings Group. Cedar Holdings was founded in 1997, headquartered in Guangzhou, is a Fortune 500 company. After more than 20 years of development, Cedar Holdings has become a private enterprise group with a sound internationalization network in the field of commodities in China. According to the presenter, let's talk about the core value in one or two sentences. Cedar's commodity supply chain network provides important services for Chinese manufacturing enterprises in terms of raw materials and market protection, and also plays an active role in solving necklace projects and introducing core technologies.
Wang Hongliang: I am Wang Hongliang from Hehe Asset Management (Shanghai) Co., Ltd. and our parent company is Hehe Futures Co. Ltd. Our parent company is Hehe Futures Limited. Hehe Futures was founded in 1993 and is headquartered in Taiyuan, Shanxi Province. Hehe Futures has certain advantages in terms of national qualification. Since the introduction of the new regulations on capital management, the state requires financial institutions to set up risk subsidiaries and establish capital management sub-companies, which in fact favors the development of Hehe Futures. At present, of the 150 futures companies in the country, only 85 have 100% risk subsidiaries, 25 operate independently as asset management subsidiaries, 17 have the qualification of fund sales, 2 companies have the qualification of full license, and 1 is currently listed on the A-share market. Therefore, with the advantage of veteran financial institutions, Hefei Futures has a very prominent advantage in the future futures market and products. Hutchison Capital Management is headquartered in Shanghai, and since its establishment, we have made a lot of custody products, as well as some industrial products. In the future, we will focus on launching more standardized products, expanding the company's scale and deepening its competitiveness in the market. When it comes to the value of the company, we believe that "cooperation **** win", from the customers, employees, enterprises, social level are cooperation can be **** win.
Liu Xi Yuan: I'm Liu Xi Yuan from Zojirushi Technology, first of all, I would like to introduce Zojirushi. Softwood is a technology company, through independent research and development of the core flexible technology to produce fully flexible displays and fully flexible sensors, as well as a full range of new generation of human-computer interaction products, including folding screen phones and other smart devices. Recently, the folding screen phone is very hot, in fact, the world's first folding screen phone is the production of Zojirushi, from the screen to the hinge to the operating system are Zojirushi own design.
In 2012, three Stanford PhDs returned to China to found Zojirushi, and set up offices in Shenzhen, Hong Kong, and San Francisco. 2014, we released the world's first thinnest, colorful, fully-flexible screen with a thickness of only 0.01 mm. Before this, the so-called flexible electronic technology, are still just theoretical knowledge in textbooks, and ZoYu will make it a reality.In 2018, the full-flexible screen large-scale mass production line established by ZoYu was officially put into production, which symbolizes that ZoYu technology has really established the world's first full-flexible screen large-scale mass production line with independent intellectual property rights. In October of the same year, Flexyu released the world's first folding screen phone FlexPai. on September 22nd of this year, we released the second generation of the folding screen FlexPai 2. At the same time, Flexyu has also established partnerships with more than 500 companies around the world, including Airbus, Louis Vuitton, and so on.
When it comes to the core competitiveness of Zojirushi, it can be said that it is independent innovation. In the public's perception, South Korean companies have been occupying the flexible display or the entire display field of technology route advantage. However, since 2012, Softube has opened up an independent technology route alongside Samsung - the ultra-low temperature non-silicon process integration technology route, referred to as ULT-NSSP, which is also our core competitive advantage.
Moderator (Fu Weigang): Thank you very much for your introductions. I did my homework before hosting the roundtable and realized that Softube is the pioneer and leader in the global flexible technology segment. As a leader, what do you think are the challenges that the company is encountering in pioneering no man's land?
Liu Xi Yuan: The challenges are different at each stage, and can be roughly divided into three stages. The first stage is the process from 0 to 1, in this process there is no reference, our founder Dr. Liu Zihong in review of this process, often described this is very much like holding a flashlight digging tunnels, there is no light in front of us, but we feel that the light is in front of us, and with the faith of the micro-light little by little groping to open up the road ahead. 2014 R & D and the production of the world's thinnest colorful full-flexible screen, proving that
The second stage is the process of realizing large-scale mass production of fully flexible screens, from 1 to N. The process of mass production of fully flexible screens is a very important part of the development of a new generation of flexible screens. A flexible display line of mass production of basic investment to 30 to 40 billion, Softwood did not have the funds, how to achieve mass production? At that time, we through various channels to get the support of some investment institutions, groping for stones to cross the river like this money into the production line. Because there is no reference, you have to organize your own team to do it, you need to have enough professionals and funds, enough support in all aspects, each aspect has a huge workload. Our founder once described that there were more than 3,000 procurement meetings just to open this production line, each averaging three or four hours, and the time and workload spent behind this was huge, but without this process, there would be no way to use these resources to realize something new. In the end, we successfully realized the world's first all-flexible display large-scale mass production line lit up and put into production in 2018.
The third stage is the process of commercialization. The biggest difficulty faced by many innovative technology companies in China is skepticism. As we move from R&D to mass production to commercialization, this journey needs to follow the historical pattern of things. Including our cooperation with Airbus, from the beginning of the establishment of a strategic partnership in 2017 to the further advancement of this year, it took nearly four years, this process is relatively long. This is actually the same as Tesla, which 10 years ago people probably wouldn't have thought that there would be such a company as Tesla, but to this day, Tesla has broken out into its own. It is really difficult to quickly introduce brand new products and technologies into the market, so we hope that you can give more support and understanding to innovative companies.
Moderator (Fu Weigang): Mr. Liu talked about the challenges that Zojirushi encountered, from 0 to 1, from N to N+. We participate in various forums will also find that the venue form has changed. Previously, the background plate is plastic spray, and now it is indeed an electronic display. With the advancement of technology, the carrier of the display is constantly changing. 20 years ago, the largest consumption of display carriers was the television, and now many people think it is the cell phone. You think that with the progress of technology, what changes will occur in the display?
Liu Xi Yuan: This is a particularly good question, but also a lot of investors, the media often ask the question of Softwood. First of all, we see the trend of technological development: personal computers in the eighties brought about an increase in work efficiency; later the Internet brought about interconnectivity; and then to the mobile Internet, communication between people through cell phones can be realized anytime, anywhere; now and in the future will be the Internet of everything, that is, the era of intelligent IOT. There are three very important infrastructures in this era, the first is AI, there are more and more links between things and people, and the amount of data and computation is very huge, which requires very powerful AI algorithms with very strong computational power to process the data. The second is 5G, we must have high-speed pathways to allow all information to interact quickly, without delay. The third is interaction, the real Internet of Everything is the interconnection of all items, even flower pots, water cups, toothbrushes, etc. can become the carrier of human-computer interaction. Such interaction needs to break through the two-dimensional physical limitations of the interactive interface and media, which is why we can not interact with all the equipment, and based on flexible electronics technology, fully flexible display, can break through the physical space limitations attached to any surface, so that the Internet of Everything is really possible.
Today, we will introduce a few cases, so that we can more intuitively understand where the fully flexible screen can be applied. The first example is the cooperation between Zojirushi and Louis Vuitton (Louis Vuitton). This cooperation originated from LV's future plans at that time. LV makes luxury clothing, bags and accessories, and after seeing Zojirushi's fully flexible screen, they conceived the idea that all of LV's clothes, bags and other merchandise could be screened on the surface of the "future canvas" in the future. So LV and Zojirushi hand in hand to create the world's first flexible screen handbags, and in the United States, held in New York, Louis Vuitton 2020 early spring women's fashion show on the first public appearance. This flexible screen bag can be completely interconnected with the phone, the bag can control the phone by touch, the phone can control the bag, in the process, the information interaction is very smooth. There just talked about Airbus, the reason why they chose Zojirushi have three reasons, one is the natural advantage of the full flexible screen thin and light can be used as an aircraft accessory, not only can reduce the weight of the display equipment itself on the aircraft, but also further reduce the weight of structural components used to fix the display; second is the application of flexible screen on the aircraft at the same time as reducing the weight of the aircraft, can effectively reduce fuel consumption, reduce carbon emissions, the aircraft can save nearly one million dollars a year. An airplane can save nearly a million dollars a year in fuel costs, which is a very big benefit to the aviation industry; Third, the all-flexible screen will not be broken, avoiding the hard screen is fragile, the risk of accidentally injuring passengers, improving the safety of air travel. In addition, in the smart home, the application of flexible screen is also very extensive. Today's stereo can only listen to music, while the future of the stereo surface can be attached to the flexible screen, able to synchronize the display of text, pictures and video and other information, to enjoy an immersive visual experience. We believe that in the future, all objects will be interconnected, and the data and information brought about by the Internet of Everything will be able to interact, which will bring more convenience and more possibilities to everyone's daily life.
Moderator (Fu Weigang): Thank you, Mr. Liu, for painting a picture of the ubiquitous future of flexible screens. Next, I would like to ask Mr. Wang from Hehe Capital Management, we said that the parent company of Hehe Asset is Hehe Futures, why did they set up a Hehe Capital Management company? I see that the company's main business is fixed income+, can you introduce it?
Wang Hongliang: Fixed income + is a product that Hehe Capital Management will launch next year, we will launch fixed income + next year, on the one hand, it is a response to the newly launched new regulations on asset management, to promote the policy of standardization and netting products; on the other hand, it is also to improve investor's returns through the secondary market and the use of some strategies.
Since 2016, Hutchison Capital Management has been mainly doing instrumentalized products, specifically, mainly focusing on bank notes. As we all know, China is currently the world's second largest economy, so in the trade and economic part of the trade, in the exchange of companies and companies, goods and goods can not avoid the application of bills, so the application of bills is very extensive. 2020, from January to November, I saw on the Internet, the current accumulation of commercial paper has accounted for roughly 17 trillion, and this year all the bills should be more than 30 trillion -- so the domestic market for notes is huge. We are focused on the note industry, with a focus on fixed income + products. In terms of system and policy, after the national implementation of the bills law in 2004, plus the implementation of the transaction management measures in 2016, our bills business has been standardized; after the electronicization of bills in 2016, through technological innovation, the bill exchange business has become more transparent and flexible. Bills brought convenience and realizability to enterprises in terms of capital flow, which was one of the key reasons for our push at that time. For Hutchison, we have many years of experience in notes and very strong trade relationships. For investors, we are a good choice from the perspectives of risk safety and return. The above is our current product structure.
Moderator (Fu Weigang): Just now, when Mr. Wang talked about your company, he talked about the new regulation on asset management. We said that the custody industry, the financial industry itself is a financial risk industry, so almost every year there are new regulations out. Every year the risk is different, this year, many do fixed income, especially do debt are discussing a problem, that is, the financial industry permanent coal debt evasion. What does a capital management company or a Hutchison company think about debt evasion or the debt market?
Moderator (Fu Weigang): thank you Mr. Wang. Next, Mr. Han just introduced Cedar Holdings has a lot of supply chain resources at home and abroad, do you think that in the context of the double cycle, how can commodity futures and bulk commodities serve domestic users? For example, some time ago, there was a blackout in many cities. Some people said it was due to the lack of coal, and we may encounter similar things in the future. How can Cedars Group serve the domestic? Thank you!
Han Gang: China is facing two major crises this year, one is the crisis brought about by the epidemic challenge; the second is the crisis of trade friction between China and the United States, including the traditional trade friction, technological friction and so on, especially the U.S. in the high-tech aspects of the restriction of suppression of us. The epidemic crisis and the crisis of trade friction between China and the United States have finally led to a ****same problem, that is, the supply chain problem. In fact, whether it is the supply chain disruption caused by the epidemic or the supply chain disruption by the trade friction between China and the United States, supply chain security has become a hot issue in the society, and it has also risen to be a national strategic issue. How to protect the supply chain, how to provide supply chain services for enterprises, this is Cedar can, and is engaged in the cause.
After 20 years of accumulation, Cedar has established the most sound internationalized marketing network of China's commodity industry in the world, with subsidiaries, offices and branches in more than 30 countries, and institutions in major developed countries and important developing countries around the world, which play an important role in solving China's supply chain problems in three aspects.
First, to protect raw materials for Chinese manufacturing enterprises. Just now the host talked about, coal is one of the important raw materials, this year the southern coal supply is relatively tight, in fact, not only coal, the supply of iron ore is also very tight. After more than a decade, iron ore has once again turned into a crazy stone, the price has risen sharply, these iron ore significantly pushed up the manufacturing cost of steel enterprises, how to suppress these high prices? There are actually many ways. For example, so far this year, we have used our internationalized network to directly import large quantities of pig iron from Brazil, Japan, Russia and other parts of the world to hedge against the high price of iron ore, to increase revenue and reduce costs for steel mills. It is difficult to capture these opportunities and solve these resource bottlenecks without a mature network to access first-hand sources. This is the first point, is our contribution to the Chinese manufacturing enterprises in the protection of raw materials, through the protection of raw materials, to ensure the stability of the supply chain of Chinese manufacturing enterprises.
The second is to protect the market. China's manufacturing is second to none, and it is the number one country in manufacturing. In the context of trade friction and epidemics, how do we retain foreign markets, especially high-end foreign markets? Our overseas network plays an important role. For example, two days ago, I had annual cooperation talks with CITIC Special Steel for next year. By the way, CITIC Special Steel is China's largest special steel enterprise, the world's largest special steel enterprises, the annual production of 14 to 15 million tons of special steel, this steel is not ordinary steel, the price is three to five times higher than the ordinary steel, some 10 times more expensive, the scale of its gold content, the value of the volume is very high. CITIC special steel to do high-end steel, shipped to Europe, the United States and other high-end markets, need a lot of local technical services, after-sales service, need people. Since the epidemic, Chinese people can't get out and foreigners can't get in. At this time, our overseas network plays an important role - the overseas network are all local employees who can provide very timely service to local customers on behalf of CITIC Special Steel. As a result, we have a very good working relationship with the enterprises, and we play an important role in securing the market for Chinese enterprises.
Third, the introduction of core technology to prevent the chain breakage caused by foreign technology monopoly. Due to the friction between China and the United States in terms of technology, after the United States restricted us for no reason, we can also highlight the value of the network in terms of the introduction of technology. We took the lead in introducing Germany's green HPPO technology (propylene oxide) for Cedar Group's listed chemical company, which became the first transfer of this technology within the global scope of the German side; we also communicated with some enterprises in the UK and France, coordinated the negotiations, and introduced some neck-breaking technologies in the field of new materials, and I will not talk about the specific projects here. I won't talk about the specific projects here. In the future, China will face more and more technological friction, we believe that through the two-pronged approach of domestic R & D and direct introduction from overseas, we can obtain technology to protect the domestic industrial chain and supply chain.
In short, the role and value of the globalized supply chain that we have is getting bigger and bigger. Just now you asked what contribution Cedar has made to the double cycle, I think Cedar's mature supply chain network all over the world has made a small contribution to our country's manufacturing industry in terms of securing the supply chain, raw materials, markets, and the introduction of core technologies.
Moderator (Fu Weigang): Thank you for Mr. Han's introduction, and thank you for Cedar's support to China's manufacturing enterprises in the raw materials, supply chain, and technology war. Despite the external world, especially the trade friction between China and the United States, China's opening door to the outside world is getting wider and wider, and there must be a lot of enterprises like Cedar to go out and establish their own network in the world. As a more mature representative of going out, can Cedar provide some advice to companies that still want to go out now?
Han Gang: It should be said that our country's manufacturing industry is very strong. Supply chain, Cedar has done some work, there is a certain reference. First of all, as an internationalized enterprise, it is very important to focus on the construction of international supply chain system. Cedar's internationalization network was not built overnight, after 20 years of accumulation, we have built it up bit by bit by establishment, preparation, merger and acquisition and other forms, which is full of hardships, market ups and downs, and the maintenance of the network is also faced with a variety of challenges. However, the senior management of the Group attaches great importance to network construction, focusing on this aspect of perseverance and focus and long-term accumulation, and finally formed a globalized network advantage.
Secondly, the construction of supply chain network facilities is an unswerving construction process, which emphasizes investment and development. For example, we have a special terminal yard for steel scrap in the United States, a long-term rented chemical warehouse at the terminal in Belgium, and a steel processing center in France. Now the supply chain can not simply do trade distribution, more processing value-added combined together, in the basic input construction efforts and determination.
Again, to maintain the supply chain, we must pay attention to the operation of the long-term relationship with customers. Market prices are fluctuating, sometimes China's prices are high, sometimes low, we can not be exported on the price of low, high, not exported. In fact, we need to maintain international market share and have long-term agreements with key customers in the international market. Take the example of CITIC Special Steel that I just cited, what kind of customers do we face in long-term cooperation? We through the European automotive supporting Tier 1, Tier 2 enterprises, directly facing and serving the German Mercedes-Benz, BMW, Volkswagen, France, Renault and other first-tier enterprises ...... These enterprises require you to long-term cooperation, the entry threshold is very high, the need for a large number of localized services, but get in and then you can do a long-term stable.
Finally, I think it is very important that the construction of a mature internationalized network can not be completed only by the Chinese themselves. In terms of the group, it needs to be internationalized in layout, but in the process of operation, it has to be localized. The executives of our internationalized network are all nationals - Brazilians in Brazil, Americans in the US, Belgians in Belgium, Britons in the UK, and Germans in Germany. We determine the general direction policy from the level of the company's board of directors and the group's strategic direction, but in the process of implementation, we have to localize and operate locally, so that the network of overseas companies can take root and grow. Based on the country's double-cycle policy, we have to make the overseas network become a living chess like playing Go in order to develop sustainably and contribute to the international and domestic double-cycle.
Moderator (Fu Weigang): Thank you for sharing with Mr. Han, I see Mr. Liu of Zuoyu Technology nodded frequently, and Mr. Wang shared the same idea. Mr. Ma is always researching the Internet, before talking about Dingtone grocery shopping, similar to a lot of such companies to the new crown epidemic to solve a lot of problems, you think in the double cycle pattern, China's Internet-related industries have no big as?
Ma Yuan: Internet companies to do fresh food is not a very new topic, box horse, small elephant and other early exploration. First of all, a whole set of exploration in the fresh food industry is actually the process of reshaping the supply chain. The original vegetables from the vegetable farmers through different agents to the vegetable market, and finally to the people on the table. For quite a long time, the vegetable farmers have been swallowed up by the transformation of supermarkets. The third wave of Internet exploration is actually the process of reshaping the supply chain. In a whole set of ecology, if vegetable farmers actively transform, will also find their own position. The double cycle involves several concepts, one is to promote domestic demand, the second is to promote supply efficiency. When we talked about Internet+, for example, + e-commerce, + games, + education, + medical care, etc. were all explored by Internet enterprises in the 2C end of the service. E-commerce for the whole society has a lot of benefits, and there are still a lot of ways to go in the future. On the supply side, Internet companies have not explored 2B particularly much, because the 2B brand is not particularly loud. As early as 2007, 2008, Wang Xing talked about the second half of the Internet to talk about the transformation of 2B to 2C, when the Internet did a lot of 2B things, the most typical 2B is the public cloud, including Ali Cloud, Tencent Cloud and so on. Public cloud empowers industries including party and government agencies, hospitals, financial institutions, manufacturing industries, their data can be placed on the public cloud, imported to store data, and then use data analysis, and finally provide business decisions. This is the 2B side of the exploration and contribution.
Is there any Internet company that puts hard technology in its innovation business? In this regard, we have heard even less. I have been studying the industry for many years, and the earliest I saw was Baidu's research and development of OE and AI, and I saw Tencent's research institute hire some famous experts to explore in the field of AI. For example, they do AGV robots, drone delivery, as well as Meituan unmanned delivery vehicles, these are closely related to the core business, Baidu and the core business of the drop itself is also these.
Employment can also promote consumption, like the active data of the drop of more than 1 million, Meituan active professional riders are also more than 1 million, which is conducive to promoting employment and driving economic development.
Ma Yuan: This is a very good question, and it fits very well with the current topic of anti-monopoly in community group purchasing. Antitrust is not a new term, nor is it a Chinese term. In the United States, in order to encourage innovation, encourage a more fair and favorable competitive environment, antitrust policies are particularly numerous. China actually also has anti-trust policies, more than a decade ago, Focus Media and Sina rumored merger, and then was called off for anti-trust reasons. 2015 to 2017 period, we see a lot of mergers and acquisitions, found that the Internet companies to compete with each other to burn money is not as good as shaking hands, draw the line, and their own peace and security.
The recent antitrust measures, I think, include two aspects, on the one hand, for mergers and acquisitions, and on the other hand, for some special market competition behavior. Policy on mergers and acquisitions behavior has changed the most, if only fines, I feel that the regulation can also promote, increase more Internet companies to support the logic of encouragement. For mergers and acquisitions, the United States has more stringent measures.
In turn, the long-term view, the enterprise value embodied in where, that is, the supply side and the demand side of the relationship whether to change, the most critical is the enterprise supply can solve the demand side of the pain points. If these two have not changed in fact okay, the competitive landscape has not changed, just some short-term market behavior, such as big data to kill, subsidies, etc., long-term factors also depend on the fundamentals of the node.
Moderator (Fu Weigang): Antitrust has always been there. Whether a company has value depends on its value to users or the market. Thank you! This concludes our module, thanks to our four guests.