What kind of pressure has he experienced in the past four years? How does he define the difference with Wang Shi? Why does he think the partnership mechanism is not necessarily suitable for central enterprises? How should CR's pharmaceutical and real estate businesses develop in the future?
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On March 8, during the panel discussion at the first session of the 13th CPPCC National Committee, a reporter from China Entrepreneur magazine interviewed Fu Yuning, chairman of China Resources Group. As a scholar entrepreneur, Fu Yuning has been at the helm of China Resources for 4 years. During this period, challenges and disturbances continued. CR Pharma developed rapidly and was listed on the main board of Hong Kong Stock Exchange in 2016; China Resources Beer has been rumored for many times to plan to buy shares in a large scale Tsingtao Beer ； China Resources Group withdrew from the equity dispute of Vanke and bid farewell to its position as the largest shareholder.
At present, China Resources Group is a "Big Mac" in size, with 7 strategic business units, 16 primary profit centers, more than 2000 physical enterprises and more than 450000 employees. As the helmsman of a trillion yuan central enterprise, Fu Yuning should be good at understanding the market and participating in market competition like a professional manager; They should also obey the call of the organization at any time like a cadre.
What kind of pressure has he experienced in the past four years? How does he define the difference with Wang Shi? Why does he think the partnership mechanism is not necessarily suitable for central enterprises? How should CR's pharmaceutical and real estate businesses develop in the future? In this interview, he gave specific answers.
Chinese Entrepreneur: When you became the chairman of China Resources Group in 2014, you sighed that "you are facing unprecedented pressure". Why? What's your current status?
Fu Yuning: The team and the market have been greatly impacted before, which requires us to use our performance to convince everyone. The transformation and development of China Resources in recent years are very healthy, and innovative business forms, new technology applications and new business models have achieved results.
China Entrepreneur: As the chairman of China Resources Group, you also serve as the chairman of China Resources Pharmaceuticals. China Resources has many sectors. This is the only business sector where you serve as the chairman of the board of directors in the company. Does it mean that China Resources attaches special importance to the pharmaceutical sector?
Fu Yuning: I attach great importance to all businesses of China Resources, because this (segment) involves cooperation with the Beijing Municipal Government. After I went to China Resources, I complied with the requirements of the Beijing Municipal Government at that time and needed the chairman to serve concurrently.
China Entrepreneur: Take the pharmaceutical industry as an example, will the integration of CR Pharma continue? For example, pharmaceutical integration China Resources Sanjiu , health care products are integrated into Dong'e donkey hide gelatin 。 Is it still going on step by step in this way?
Fu Yuning: There are also health products in Sanjiu. They have different positions. We won't compete. Don't imagine that we will engage in inter-bank lending. We won't because it does different businesses.
Chinese Entrepreneur: What do you think of the development of China Resources Land at present? Now the real estate industry is considered as a sunset industry?
Fu Yuning: China Resources Land is also very good now, maintaining the top ten.
The saying "sunset industry" is wrong. China's urbanization is still a long way off. China Resources Land will transform into the field of urban construction and operation. It will not only build residential and commercial real estate, but also some construction investment, sports venues, including regional management and operation, community management. These businesses are to give play to the advantages of China Resources Land, At the same time, actively participate in the process of China's urbanization.
Chinese Entrepreneur: Recently, many committee members mentioned a book called Principles. Have you read this book? There is a paragraph in the book to the effect that two people who are similar in principle and the same can get along more happily. Is there a difference in the principle between you and Wang Shi's unhappiness?
Fu Yuning: I think the more important thing is the values. Vanke has nothing to do with me now, and I don't want to talk about it anymore.
Chinese Entrepreneur: Now the domestic financial regulation is becoming stricter while emphasizing new openness?
Fu Yuning: The tightening of financial supervision is mainly aimed at financial chaos, to limit non-standard financial transactions, and to guide financial resources to support industrial development. These are favorable adjustments for the country now and in the long run, and are all necessary. The healthy development of the financial market is fundamental to the industrial and economic development itself. Therefore, it is not contradictory to the opening up and development of finance.
Chinese Entrepreneur: Xiao Yaqing, director of the State owned Assets Supervision and Administration Commission, said that the reform of state-owned enterprises should further work on vitality, control, influence and competitiveness. Take China Resources as an example, how can you improve the competitiveness of central enterprises?
Fu Yuning: The competitiveness and vitality of central enterprises are reflected not only in our industry, but also in our staff and managers. We hope that the mechanism can be more market-oriented and can more effectively mobilize our staff, including our managers' enthusiasm, protect their entrepreneurship, and set up necessary fault-tolerant mechanisms, The commercial activity itself is a colorful activity.
In this process, while creating value and achieving commercial success, there must be mistakes and deviations. We must have both a mechanism to encourage good performance and a fault-tolerant mechanism to tolerate deviation.
Chinese Entrepreneur: A popular incentive mechanism is the partner mechanism. Is it possible that this mechanism will be introduced into the central enterprises?
Fu Yuning: This partnership system may not be suitable for all central enterprises. Many central enterprises are not suitable. The partnership system is suitable for companies with high intelligence and human resources, such as consulting industry, accounting firms, China Resources and many of our central enterprises do not do this, and a large number of central enterprises are not suitable.
Chinese Entrepreneur: But many real estate companies are trying to do this now. In fact, the effect seems to be good.
Fu Yuning: This so-called partnership system depends on the institutional arrangement of shareholders and managers. Becoming a partner is an arrangement. It can also be solved through other equity incentive mechanisms or market linkage incentive mechanisms. This is not the only way.
Chinese Entrepreneur: How is China Resources' mixed ownership reform going at present?
Fu Yuning: At present, China Resources is also carrying out mixed ownership reform, which is actually to increase cooperation in equity. For example, we recently became a shareholder of Fenjiu (in February 2018, China Resources invested 5.2 billion yuan in Fenjiu, opening the national liquor industry layout). This is our cooperation with local state-owned enterprises, becoming the second largest shareholder of this company.
Chinese Entrepreneurs: What risks do you think should be paid attention to when participating in the construction of the Belt and Road?
Fu Yuning: About the Belt and Road Initiative: the economic environment is changing, especially the impact of trade protectionism on investment will increase, so it is necessary to pay attention to country risks in the Belt and Road Initiative.
Chinese Entrepreneurs: What are your goals for China Resources in 2018?
Fu Yuning: I hope that the performance can be first-class and the salary incentive system is not backward.
Chinese Entrepreneur: What kind of standard is this first-class?
Fu Yuning: We hope to compare our performance with the best enterprises in the world, as well as our salary and mechanism.
Editor in charge: Chen Jing
