Chairman Douglas Hsu’s Address at Chinese New Year Greeting Party

Lunar New Year party is a tradition of the Far Eastern Group for several decades.  The employees who followed Founder to Taiwan, used to visit him at home each year, and Founder would prepare meals to host them.  As the Group was growing with increasing affiliate companies, the Chinese New Year greeting gradually changed from home to each company, and finally developed into the Group’s Lunar New Year party.  Everyone joins the feast to make well wishes to each other.  While we are entering into the new era, this warm tradition has been kept till now.

Facing the New Economy, each business shall deal with different challenges.  But I believe, as long as we do not limit ourselves, actively seek innovative new thinking, we will ultimately achieve our goal.  Just as Far Eastern Department Stores’ Hsinyi A13 Branch, despite the many difficulties during preparation, they adjust, modify, now both merchandise brands and hard facilities are unique to combine the state-of-the-art technology software and nostalgic old street, weaving into the best shopping and amusement place for the whole family.

Not only Far Eastern Department Stores, in the first month of 2020, many companies have reported good news: The third-floor ballroom of Shangri-La’s Far Eastern Plaza Hotel, Taipei completed its renovation to present mega-sized LED screen, modern stereo acousto-optic effect, and blind-spot free fan-shaped space to create optimal festival experience.  To expand fleet scale, U-Ming Marine Transport entered into purchasing four 100,000 DWT bulk carriers.  After 26 working days, 260 rounds of bidding, Far EasTone Telecommunications acquired 80 MHz of 5G spectrum, opening up unlimited business opportunities……

Such remarkable performances should be contributed to our comprehensive industrial deployment, and also attributed to the wonderful team we have.  With joint efforts of each company, the Group registered consolidated revenues of NT$732.4 billion, up 2% from 2018, again a historical high.  Pre-tax income was NT$133.4 billion, up 7% year on year, also reaching new high.  Our total assets were NT$2.8 trillion, grew 8%, among which debt ratio was 47%, illustrating sound financial structure.  Cash position stood at NT$90.4 billion, ensuring future growth momentum.

The Group has been operating smoothly for 70 years.  The next 70 years are just about to begin.  But in fact, the first 3~5 years will decide on its future direction, and even its sustainability.  Along with the increasingly rapid and transparent flows of global information, the message happening anywhere will be transmitted immediately throughout the world.  If lack in strong leadership, the management fails to change with time, and we do not expedite on moving forward, we will perish.  In particular, most Group businesses operate in the traditional industries, must transform with time.  The book titled “LEAP” was given to you during last yearend annual strategy meeting, aims to encourage you only move with the trend and leap continuously, can one enlarge the gap with the followers, and remain competitive.  So please draw up future strategies for the next 3~5 years as early as possible.

Each industry needs to deal with different issues and scenarios, I cannot specify how each sector should react and proceed, but can only share with you the current important trends, and hope that you may quickly adapt to what I repeatedly mentioned about those six trends affecting business environment including Industry 4.0, Environmental Sustainability, Transparency & Traceability, Protectionism, Digital Revolution, and Energy Transition, as well as the important technologies such as Big Data, Artificial Intelligence, Cloud Computing, IoT, and etc.  Furthermore, each institution should understand its own position in the industry.  Even with advantage at current moment, must also remain alert, seize market needs, and continue to innovate to avoid being eliminated.  Of course, innovation is not that easy, must have strategy, be systematic, and internalize as part of corporate culture.  To engage in transformation, we should also examine whether the current organization structure and talent allocation comply with future needs and make timely adjustments.  Talent is particularly important.  Aside from recruiting new manpower, Far Eastern Group being a global conglomerate, we must elevate the globalization and bilingual ability of our staff to cultivate strong management team.  On the other hand, while being reputable enterprise, many Group companies still lack vivid brand images.  How to create corporate image and branding shall be a topic for our future endeavors.

Last but not least, thank you again for your long-term efforts.  Despite unpredictable environment, we hope that everyone should be brave and strong to achieve continuous growth in the New Economy era so as to initiate new chapter for the Group’s next 70 years!#