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F r o m c l a s s r o o m to b o a r d r o o m C r ea ti ng a c u l tu r e f o r hi g h-i m p a c t entr ep r eneu r s hi p : K ey ex tr a c ts f r o m a new EY r ep o r t

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M- c o m m er c e s tr a teg i es a nd “ m u s t- ha v es ” i n C hi na

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过去几十年所发生的数字革命，改变了我们做

事的方式。新技术带来新的可能性、新机遇，

锐意进取的企业家们也能用新的思维方式，以

及前所未有的速度开拓全球业务。

As a result of the digital revolution of the last few decades, the way we do many things has changed: New technologies have brought with them new possibilities, new opportunities, and allowed enterprising entrepreneurs with new ways of thinking to create global businesses with unprecedented speed.

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W el c o m e to the s i x th i s s u e o f On the Beam, the EY G r ea ter C hi na j o u r na l a i m ed a t s u m m a r i z i ng the l a tes t i ns i g hts a nd s tr a teg i c thi nk i ng o n d ev el o p m ents i n

G r ea ter C hi na a nd the f a s t- c ha ng i ng b u s i nes s env i r o nm ent.

Y o u m a y b e r ea d i ng thi s a t y o u r d es k , w hi l e w a i ti ng f o r a m eeti ng o r a t the b ea c h o n o u r d i g i ta l f o r m a t – b u t o ne thi ng I c a n a l m o s t b e c er ta i n o f , a m o b i l e d ev i c e tha t l i nk s y o u to the w o r l d i s no t f a r f r o m y o u r s i d e. I t i s a c l i c hé to s a y w e a r e l i v i ng i n a n er a u ni m a g i na b l e f o r tho s e j u s t a g ener a ti o n a g o , b u t s o m eti m es i t d o es need to b e r em em b er ed .

As a r es u l t o f the d i g i ta l r ev o l u ti o n o f the l a s t f ew d ec a d es , the w a y w e d o m a ny thi ng s ha s c ha ng ed . N ew tec hno l o g i es ha v e b r o u g ht w i th them new p o s s i b i l i ti es , new o p p o r tu ni ti es a nd a l l o w ed enter p r i s i ng entr ep r eneu r s w i th new w a y s o f thi nk i ng to c r ea te g l o b a l b u s i nes s es w i th u np r ec ed ented s p eed . Mo b i l e-i nter c o nnec ted nes s i s the new r ea l i ty , a nd i t’ s o nl y j u s t g etti ng s ta r ted .

EY ’ s Op er a ti ng Mo d el Ef f ec ti v enes s G r o u p s p o k e w i th c o m p a ni es i n m a i nl a nd C hi na i n a r a ng e o f i nd u s tr i es a b o u t thei r d i g i ta l a nd m o b i l e s tr a teg i es . T he tea m ha s a na l y z ed thei r f eed b a c k i n M- c o m m er c e s tr a teg i es a nd “ m u s t- ha v es ” i n m a i nl a nd C hi na a nd o u tl i nes s o m e u s ef u l a nd s u g g es ti o ns .

Ou r r ep o r t s tem m i ng f r o m thi s y ea r ’ s G 2 0 Y o u ng Entr ep r eneu r s ’ Al l i a nc e S u m m i t o u tl i nes s i x r ec o m m end a ti o ns f o r c r ea ti ng a hi g h- i m p a c t c u l tu r e tha t f o s ter s entr ep r eneu r i a l s u c c es s . T hi s r ep o r t a l s o i nc o r p o r a tes r ec ent EY r es ea r c h o u tl i ni ng the u r g ent need f o r g o v er nm ent a nd enter p r i s e a c ti o n to p u s h entr ep r eneu r s hi p to the to p o f the j o b - c r ea ti o n p o l i c y a g end a .

I tha nk y o u f o r the c o nti nu ed s u p p o r t o f o u r c l i ents a nd b u s i nes s p a r tner s a nd I ho p e tha t y o u enj o y thi s i s s u e.

A lb ert N g C ha i r m a n, C hi na Ma na g i ng P a r tner , G r ea ter C hi na

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M- commerce strategies and “ must- haves” in China

事 影响 业

F rom classroom to b oardroom Creating a culture for high-impact entrepreneurship: K ey extracts from a new EY report

0 8

I s s u e 6 | 2 0 1 6 I ns i d e. . .

W orld in numb ers6

Managing Editor Al b er t N g

Editorial team And r ew Ma l c o l m

C l a u d i a C hu W i nni e W Y C heu ng

D esign And y Y eu ng L ea ne C ha n

Ed i to r ’ s no te: On the Beam i s p u b l i s hed ex c l u s i v el y f o r c l i ents o f EY . I f y o u w o u l d l i k e to

r ec ei v e c o p i es o f o u r p u b l i c a ti o n o r w i s h to s u g g es t to p i c s o f i nter es t to b e c o v er ed i n the f u tu r e i s s u es ,

p l ea s e w r i te to : T he ed i to r , On The Beam, EY a t EY o ntheb ea m @ hk . ey . c o m

EY o ntheb ea m @ hk . ey . c o m

P r i nted b y Y i D u n P r i nti ng L td 务

A vailab le on- the- goD o w nl o a d o u r m o b i l e

a p p l i c a ti o n v i a the i T u ne s to r e o r the Ma r k etp l a c e.

S ea r c h f o r On the Beam u nd er “ C hi na ” .

2 0

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Strategy leads the w ay in overseas mergers and acq uisitions

5 8

入 境

China’ s health care: G etting w ell soon

8 0 行业 An outline of the significant policy and regulatory adjustments in China’ s auto industry

6 8收入确认

业将 ? ?The new revenue recognition standard: N ew challenges or opportunities for companies?

E Y | A ssurance | Tax 税务 | Transactions 务 | A dvisory

A b ou t E Y EY i s a g l o b a l l ea d er i n a s s u r a nc e, ta x , tr a ns a c ti o n a nd a d v i s o r y s er v i c es . T he insights and quality services we deliver help build trust and confidence in the c a p i ta l m a r k ets a nd i n ec o no m i es the w o r l d o v er . W e d ev el o p o u ts ta nd i ng l ea d er s w ho tea m to d el i v er o n o u r p r o m i s es to a l l o f o u r s ta k eho l d er s . I n s o d o i ng , w e p l a y a c r i ti c a l r o l e i n b u i l d i ng a b etter w o r k i ng w o r l d f o r o u r p eo p l e, f o r o u r c l i ents a nd f o r o u r c o m m u ni ti es .

EY r ef er s to the g l o b a l o r g a ni z a ti o n, a nd m a y r ef er to o ne o r m o r e, o f the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, d o es no t p r o v i d e s er v i c es to c l i ents . F o r m o r e i nf o r m a ti o n a b o u t o u r o r g a ni z a ti o n, p l ea s e v i s i t ey . c o m .

w w w . ey . c o m / c hi na

T hi s m a ter i a l ha s b een p r ep a r ed f o r g ener a l i nf o r m a ti o na l p u r p o s es o nl y a nd i s no t i ntend ed to b e r el i ed u p o n a s a c c o u nti ng , ta x , o r o ther p r o f es s i o na l a d v i c e. P l ea s e r ef er to y o u r advisors for specific advice.

关

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和 务 资 和 信 和信

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Ernst & Young Global LimitedErnst & Young Global Limited务

w w w . ey . c o m

© 2016 Ernst & Young, China. All Rights Reserved. © 2 0 1 6 AP AC no . 0 3 0 0 2 3 7 9 ED N o ne

信息 制 税务 业

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A b rief note on cultural and creative industries in Taiw an

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F rom government- led projects to pub lic- private partnerships Infrastructure construction financing: The current situation and the prospects

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统 业 业 理 者

业 | Q u e stions f amily b u sine ss le ad e rs sh ou ld b e ask ing

6 8 %8 7 % 6 4 % 6 4 %3

确 管理 ? W hat can w e do to help ensure a smooth succession?

业 业 ? H ow can b randling ourselves as a family b usiness improve performance?

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Clearly define who has the r es p o ns i b i l i ty f o r s u c c es s

Bu i l d i ng c o hes i o n

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W o r k s tea d i l y to p r ep a r e the nex t g ener a ti o n f o r l ea d er s hi p

D i f f er enti a te y o u r s el f i n the m a r k et

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Av er a g e nu m b er o f y ea r s f a m i l y m em b er s m u s t w o r k o u ts i d e the b u s i nes s b ef o r e j o i ni ng .

业

s a y thei r f a m i l y s tr o ng l y identifies with the c o m p a ny — i t i s p a r t o f w ho they a r e.

s a y i t hel p s them d i f f er enti a te them s el v es f r o m thei r c o m p eti to r s .

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s a y i t i m p r o v es the r ep u ta ti o n o f the c o m p a ny w i th c u s to m er s .

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An ex p l o s i o n i n m o b i l e hea l th tec hno l o g i es i s em p o w er i ng p a ti ents w i th m o r e tr a ns p a r ent i nf o r m a ti o n a nd m o r e c o ntr o l o v er thei r hea l th. S m a r tp ho ne a p p s a nd w i r el es s l y c o nnec ted m ed i c a l d ev i c es a r e c r ea ti ng r ea l - ti m e d a ta a nd ena b l i ng r ea l - ti m e i nter v enti o ns . S o c i a l m ed i a s i tes a r e a l s o p l a y i ng a n i nc r ea s i ng l y i m p o r ta nt r o l e, c o nnec ti ng p a ti ents a nd p r o v i d er s a nd a l l o w i ng them to i nter a c t a nd l ea r n f r o m ea c h o ther i n new w a y s .

The emerging field of wearable and implantable sensors promises to integrate mobile health technologies even more seamless into o u r ev er y d a y l i v es . T hes e tec hno l o g i es a r e tr a ns f o r m i ng “ hea l th c a r e” ( d el i v er ed p r i m a r i l y i n ho s p i ta l s a nd c l i ni c s ) i nto “ hea l th” ( m a na g ed w her ev er the p a ti ent i s ) .

将 息息 关 | H e alth care w ill b e come more conne cte d to d aily lif e th rou gh th e grow th of mob ile and social h e alth solu tions

资 信T e ch nologyCapital Confidence Barometer

认

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s ee c y b er s ec u r i ty as a significant r i s k d u r i ng the d ea l p r o c es s .

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o f a v a i l a b l e c a p i ta l w i l l b e a l l o c a ted to g r o w th s tr a teg i es .

业 将

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o f c o m p a ni es ex p ec t to a c ti v el y p u r s u e a c q u i s i ti o ns i n the nex t 1 2 m o nths .

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o f ex ec u ti v es a r e p o s i ti v e i n thei r ec o no m i c o u tl o o k .

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业 业 ? S o u r c e: EY p u b l i c a ti o n – S ta y i ng p o w er : ho w d o f a m i l y b u s i nes s c r ea te l a s ti ng s u c c es s ? G l o b a l s u r v ey o f the w o r l d ’ s l a r g es t f a m i l y b u s i nes s es

5 6 % 9 0 %1 3 % 7 0 %

? How do we reduce unhealthy conflict?

制

G o thr o u g h the p r o c es s o f c r ea ti ng a c o d e o f c o nd u c t, a m i s s i o n s ta tem ent o r a f a m i l y c o ns ti tu ti o n to u nc o v er a ny hi d d en i s s u es

沟通 业

C o m m u ni c a te r eg u l a r l y w i th f a m i l y m em b er s a b o u t w ha t’ s g o i ng o n i n the b u s i nes s

ha v e a m i s s i o n s ta tem ent. ha v e a f a m i l y c o ns ti tu ti o n. ha v e r eg u l a r f a m i l y m eeti ng s to d i s c u s s f a m i l y i s s u es .

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ha v e r eg u l a r f a m i l y o r s ha r eho l d er m eeti ng s to d i s c u s s b u s i nes s i s s u es .

资 业 2 0 1 5 S o u r c e: EY p u b l i c a ti o n – Health reimagined, Extract from Megatrends 2015, Making sense of a world in motion

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• Global mobile health and fitness sensor market will grow at 40% CAGR between 2013 and 2018.

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S o u r c e: EY p u b l i c a ti o n – Technology Capital Confidence Barometer (13th Edition, December 2015)

认 行

s ee the s i z e o f thei r d ea l p i p el i ne a s s ta b l e o r g r o w i ng .

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o f c o m p a ni es i ntend to p u r s u e a c q u i s i ti o ns o u ts i d e thei r o w n s ec to r .

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s a y d i g i ta l d i s r u p ti o n i s d r i v i ng thei r a c q u i s i ti o n s tr a teg y .

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从教室到董事会 创造高影响力的企业家文化： 安永最新报告主要内容摘录

From classroom to boardroom Creating a culture for high-impact entrepreneurship: Key extracts from a new EY report

在青年失业率奇高的全球经济环境中，各国政府都

在寻求可持续发展的方案，以应对这个主要劳动

力市场的问题和青年失业率的社会挑战。具有持续影响力

的解决方案首先需要可支撑自身。政策制定者需要促进其

所在经济体的商业生态环境发展，长期有效地刺激经济增

长和就业。企业家精神是创造就业机会和创新的重要催化

剂。“高影响力”创业公司可以带来巨大的经济效益，这

在它们对创造就业机会、创新或客户利益、财富创造和社

会影响的贡献中得到充分体现。

9

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响 业 http : / / w w w . ey . c o m /Publication/vwLUAssets/ey-from-classroom-to-b o a r d r o o m / $ F I L E/ ey - f r o m - c l a s s r o o m - to - b o a r d r o o m . p d f

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In a global economic environment characterized by disproportionally high youth unemployment, governments are searching for answers to this major labor market and

social challenge. Any solutions with lasting impact need to be self-sustaining. Policymakers need to boost the business ecosystems in their economies to effectively stimulate economic growth and employment over the long term. Entrepreneurship is a significant catalyst for job creation and innovation. “High impact” entrepreneurial companies bring disproportionately large economic benefits, reflected in their contribution to job creation, innovation or customer benefits, wealth creation and societal impact.

EY’s new report, From classroom to boardroom: Creating a culture for high impact entrepreneurship focuses on the role of culture in driving high-impact entrepreneurship in G20 countries. The report provides six actionable recommendations for governments and a clear, time-bound path for achieving support for young entrepreneurs. Our report was released alongside this year’s G20 Young Entrepreneurs’ Alliance (YEA) Summit in Turkey. It drills down on the one driver that is omnipresent yet difficult to quantify or capture: entrepreneurial culture.

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Culture is one of the five pillars in the EY model of an entrepreneurial ecosystem — alongside access to funding, education, coordinated support, regulation and taxation. O ur previous research on the entrepreneurial ecosystem confirms the importance of culture in supporting high-impact entrepreneurship. F or example, in our G20 Entrepreneurship Barometer released in 2 0 1 3 w e surveyed 1 , 5 0 0 entrepreneurs w ho identified a supportive culture as having access to funding, mentorship and innovation.

W i th hi g h y o u th u nem p l o y m ent p er s i s ti ng i n s o m e G 2 0 c o u ntr i es a nd w i th ev er - p r es ent d em a nd s f o r i nno v a ti o n, s u s ta i na b i l i ty a nd s o c i a l i nc l u s i o n, g o v er nm ents a c r o s s the G 2 0 a r e i nc r ea s i ng l y f o c u s ed o n c ha nnel i ng s u p p o r t to hi g h- i m p a c t entr ep r eneu r s hi p a m o ng y o u th. T he c ha l l eng e then f o r p o l i c y m a k er s i s to u nc o v er b es t- i n- c l a s s p o l i c i es to f o s ter r ea l i m p r o v em ent i n entr ep r eneu r i a l c u l tu r e i n thei r r es p ec ti v e ec o no m i es .

T her ef o r e i n o u r v i ew , ed u c a ti o n p o l i c y i s a m a j o r c ha nnel f o r g o v er nm ents to d r i v e c ha ng es to entr ep r eneu r i a l c u l tu r e. I n p i v o ti ng ed u c a ti o n to f o c u s o n the to o l s a nd s k i l l s nec es s a r y f o r entr ep r eneu r s hi p , p o l i c i es c a n s u p p o r t a c u l tu r e s u p p o r ti v e o f entr ep r eneu r s hi p o v er a p er s o n’ s l i f eti m e.

Any ed u c a ti o n p o l i c y i ni ti a ti v e f o c u s ed o n c u l tu r e need s to i nv o l v e i nd u s tr y a nd entr ep r eneu r s . At EY, we firmly believe the solution l i es i n the “ P o w er o f T hr ee, ” w her e g o v er nm ent, b u s i nes s a nd entr ep r eneu r s j o i n f o r c es to c r ea te new o p p o r tu ni ti es f o r y o u ng entr ep r eneu r s a nd d r i v e l a s ti ng c ha ng e. W e p r o p o s e s o m e a c ti o n p o i nts her e f o r g o v er nm ents , o n ex p er i enti a l a nd v o c a ti o na l ed u c a ti o n, m ento r s hi p a nd m o b i l i ty . T hes e i ni ti a ti v es c a n p r o v i d e c o m p r ehens i v e l ea r ni ng o p p o r tu ni ti es f o r y o u ng entr ep r eneu r s a nd r ea l l y d r i v e ho m e a s u p p o r ti v e c u l tu r e thr o u g h ex p er i enc e.

Of c o u r s e, c ha ng e to ed u c a ti o n a nd c u l tu r e w i l l ta k e ti m e. T hi s i s a l l the m o r e r ea s o n to s ta r t enc o u r a g i ng the g o v er nm ent, enter p r i s es a nd entr ep r eneu r s to d r i v e i nv es tm ent i n y o u ng entr ep r eneu r s a nd c r ea te a s hi f t i n c u l tu r e.

H igh - impact e ntre pre ne u rsh ip is a policy priority

F o r p o l i c y m a k er s , hi g h- i m p a c t entr ep r eneu r s hi p i s a d r i v er to p r o m o te j o b a nd w ea l th c r ea ti o n, i nno v a ti o n a nd p o s i ti v e s o c i eta l impact. High-impact firms drive the l i o n’ s s ha r e o f j o b c r ea ti o n among start-up firms, with a recent g l o b a l s tu d y s ho w i ng tha t the to p 1% of firms contribute 44% of total r ev enu e a nd 4 0 % o f to ta l j o b s . Entr ep r eneu r s hi p c a n a l s o p r o v i d e an important link between R&D a nd ec o no m i c g r o w th thr o u g h i ts r o l e i n k no w l ed g e tr a ns f er a nd c o m m er c i a l i z a ti o n.

“ H igh - impact” policy solu tions are sy ste mic

H a v i ng s et a c l ea r o b j ec ti v e o f hi g h- i m p a c t entr ep r eneu r s hi p , g o v er nm ents s ho u l d b e f o c u s ed o n ef f ec ti v e p o l i c y s o l u ti o ns . N ew i nter v enti o ns c a nno t b e c o ns i d er ed i n a v a c u u m . J u s t a s a n entr ep r eneu r ex i s ts i n a netw o r k o f p eer s , m ento r s , i nv es to r s , c o m p eti to r s a nd p o l i c y m a k er s , entr ep r eneu r s hi p p o l i c i es a r e p a r t o f the ec o s y s tem .

T h e “ P ow e r of T h re e ” f or h igh -impact e ntre pre ne u rsh ip

N o o ne c a n g o i t a l o ne w hen i t c o m es to hi g h- i m p a c t entr ep r eneu r s hi p . T he “ P o w er o f T hr ee” i s c r i ti c a l f o r ef f ec ti ng p o s i ti v e c ha ng e. W i th a l l el em ents o f the ec o s y s tem c l o s el y i nter l i nk ed , f o s ter i ng a n ef f ec ti v e entr ep r eneu r i a l ec o s y s tem i s c l ea r l y a j o i nt ef f o r t b etw een g o v er nm ent, entr ep r eneu r s a nd enter p r i s es . W o r k i ng to g ether , thes e thr ee a c to r s c a n s u p p o r t a thr i v i ng entr ep r eneu r i a l ec o s y s tem , a nd p r o v i d e d i f f er ent s tr eng ths a nd c a p a b i l i ti es to d r i v e r es u l ts .

C u ltu re can su pe rch arge h igh -impact e ntre pre ne u rsh ip

T he d ev el o p m ent o f a s tr o ng entr ep r eneu r s hi p c u l tu r e s ta nd s o u t a s o ne p i l l a r i n the ec o s y s tem . T hi s ha s eno r m o u s p o tenti a l to s tr eng then s u p p o r t f o r entrepreneurial activity. Unlike ta x p o l i c i es , g o v er nm ent g r a nts o r ed u c a ti o n r ef o r m , the ex p l i c i t l ev er s f o r c r ea ti ng a p o s i ti v e “ entr ep r eneu r s hi p c u l tu r e” a r e

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not well-defined. As a result, it presents a significant opportunity f o r p o l i c y m a k er s . Entr ep r eneu r s hi p c u l tu r e i s i nter tw i ned w i th entr ep r eneu r i a l a tti tu d es a nd ed u c a ti o n, a nd the i ni ti a l c ha l l eng e i s to tr u l y u nd er s ta nd i ts r o l e a nd significance in entrepreneurial a c ti v i ty i n o r d er to d es i g n p o l i c y i ni ti a ti v es tha t hel p s u p p o r t i t. W i th the r i g ht s u p p o r t, g o v er nm ents c a n hel p i nd i v i d u a l s a d o p t a n “ entr ep r eneu r i a l m i nd s et” i n w hi c h they s tr i v e to b e j o b c r ea to r s r a ther tha n j o b s eek er s a nd d r i v e entr ep r eneu r i a l a c ti v i ty hi g her . T he p r es enc e o f s tr o ng r o l e m o d el s , r es p ec t f o r entr ep r eneu r s a nd s o c i a l to l er a nc e o f b u s i nes s r i s k a nd f a i l u r e a r e i m p o r ta nt i n s p u r r i ng a s u p p o r ti v e c u l tu r e.

S u pportiv e e ntre pre ne u rsh ip cu ltu re is also a critical cataly st f or an inclu siv e and su stainab le e conomic grow th

C u l tu r e a l s o ha s a n i m p o r ta nt s o c i a l i m p a c t i n s tr eng theni ng the entr ep r eneu r i a l ec o s y s tem . C r ea ti ng “ d ec ent w o r k ” f o r y o u th i s a n i m p o r ta nt o b j ec ti v e f o r a ny j o b c r ea ti o n p r o g r a m . T he c o nnec ti o n b etw een g o o d j o b s a nd s o c i a l c o hes i o n i s c l ea r , w i th u nr es t i n s o m e ec o no m i es i n r ec ent y ea r s hi g hl i g hti ng the i m p o r ta nc e o f em p l o y m ent o p p o r tu ni ti es tha t ena b l e y o u th to r ea c h thei r f u l l potential. IFC research also finds tha t q u a l i ty p r i v a te s ec to r j o b s hel p c o ntr i b u te to the c r ea ti o n of global public benefits such as r es p ec t f o r r i g hts , i nc r ea s ed l ev el s

o f tr u s t, hu m a n c a p i ta l , g end er eq u a l i ty , p o v er ty r ed u c ti o n a nd p ea c e. T he m ea ni ng o f “ g o o d ” o r “ d ec ent” j o b s v a r i es d ep end i ng o n the ec o no m y o r l ev el o f d ev el o p m ent o f a c o u ntr y . W ha tev er the c o ntex t, the p r o m o ti o n o f entr ep r eneu r s hi p c u l tu r e i s c entr a l to the c r ea ti o n o f thes e o p p o r tu ni ti es . Entr ep r eneu r s c a n g a i n s a ti s f a c ti o n f r o m d ev el o p i ng a n i nd ep end ent b u s i nes s , c r ea ti ng v a l u e f o r c u s to m er s a nd g ener a ti ng thei r o w n w ea l th. T he EY G20 Entrepreneurship Barometer s ho w s tha t a s u p p o r ti v e c u l tu r e i s o ne tha t provides a level playing field for all entr ep r eneu r s . T he c u l tu r e s ho u l d b e i nc l u s i v e to y o u ng p eo p l e — f o r example, in accessing finance. In tho s e c o u ntr i es w her e the c u l tu r e i s s u p p o r ti v e, y o u ng entr ep r eneu r s ha v e s i m i l a r a c c es s to f u nd i ng a s m o r e ex p er i enc ed entr ep r eneu r s .

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Create a G 2 0 multilateral entrepreneurs start- up visa ( now ) Mu l ti l a ter a l v i s a s , o r r eg i o na l v i s a p r o g r a m s , a r e c r u c i a l to i m p r o v e l a b o r m o b i l i ty , c o nd u c t b u s i nes s i nter na ti o na l l y a nd tr a ns f er p o s i ti v e entr ep r eneu r i a l c u l tu r e a nd no r m s thr o u g ho u t the G 2 0 .

Encourage international netw ork ing ( now ) N ew a nd y o u ng entr ep r eneu r s need the o p p o r tu ni ty to p a r ti c i p a te i n i nter na ti o na l netw o r k i ng a nd c o l l a b o r a ti o n w i th o ther entr ep r eneu r s to ex c ha ng e k no w l ed g e, m ento r ea c h o ther a nd s tr eng then the entr ep r eneu r s hi p c u l tu r e. Y o u ng entr ep r eneu r s need to b e ex p o s ed to i nter na ti o na l m a r k ets , thr o u g h tr a d e m i s s i o ns , to d r i v e thei r c o m m er c i a l ed u c a ti o n, netw o r k a nd a l s o s u p p o r t c u l tu r a l ex c ha ng e. An ex c ha ng e p r o g r a m a nd a c c es s to ta i l o r ed tr a d e m i s s i o ns w o u l d b e p o w er f u l i ni ti a ti v es .

Start teaching entrepreneurship early ( near term) G o v er nm ents need to s u p p o r t entr ep r eneu r s hi p ed u c a ti o n f r o m the el em enta r y s c ho o l l ev el to eng end er a n “ entr ep r eneu r i a l m i nd s et” a nd ex p a nd the entr ep r eneu r i a l c u l tu r e. T hi s c o m es thr o u g h ex p er i enti a l l ea r ni ng a nd entr ep r eneu r s hi p tr a i ni ng i n s c ho o l s a nd ex tr a c u r r i c u l a r p r o g r a m s . An i m p o r ta nt c o m p l em ent w i l l a l s o b e i nf o r m a l l ea r ni ng o p p o r tu ni ti es f o r y o u th, i nc l u d i ng w o r k s ho p s a nd o ther ex p er i enti a l l ea r ni ng a nd o nl i ne to o l s .

1 2 3Six specific recommendations for creating a culture for high-impact entrepreneurship

T o “ mak e ” h igh - impact e ntre pre ne u rsh ip, gov e rnme nts ne e d to d riv e a su pportiv e cu ltu re th rou gh e d u cation

By f o c u s i ng ed u c a ti o n p o l i c y o n r el ev a nt to o l s f o r entr ep r eneu r s hi p , g o v er nm ents c a n f o s ter a c u l tu r e s u p p o r ti v e o f entr ep r eneu r s hi p , f r o m el em enta r y s ta g es o f l ea r ni ng thr o u g h to a d u l tho o d .

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F oster these programs through the education system w ith a pivot tow ard vocational education and industry partnerships ( near term) Ed u c a ti o n i ni ti a ti v es to f o s ter s k i l l s l ea r ned i n el em enta r y a nd p r i m a r y s c ho o l y ea r s a r e c r i ti c a l a t the s ec o nd a r y a nd ter ti a r y l ev el s to d eep en s tu d ents ’ “ entr ep r eneu r i a l m i nd s et” a nd c o nv er t thi s thi nk i ng i nto c o m m er c i a l a b i l i ti es a nd p r a c ti c e.

F ocus on “ q uality” entrepreneurship and “ q uality” employment ( medium term) G o v er nm ents c a n u s e c u l tu r e a s a k ey d r i v er to s u p p o r t g r o w th i n hi g h- i m p a c t entr ep r eneu r s , no t “ l i f es ty l e” entr ep r eneu r s . T hi s i nc l u d es ta r g eted g r a nts , c el eb r a ti o n o f s u c c es s es a nd ena b l em ent o f netw o r k s to s u p p o r t k no w l ed g e tr a ns f er a nd r i s k ta k i ng .

Estab lish longitudinal programs to link culture and education through to impact ( long term) Entr ep r eneu r i a l ed u c a ti o n p r o g r a m s need a s o u nd ev i d enc e b a s e, l i nk i ng ed u c a ti o n a nd c u l tu r e thr o u g h to i m p a c t, i nc l u d i ng i nno v a ti o n a nd j o b c r ea ti o n. I ni ti a ti v es tha t enc o u r a g e k no w l ed g e- s ha r i ng a nd c o m m u ni ty d ev el o p m ent a r e a l s o i m p o r ta nt to r ep l i c a te l ea r ni ng s , s c a l e p r o g r a m s a nd p r o v i d e l o ng i tu d i na l d a ta o n p r o g r a m s .

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S u p p o r ti ng the g r o w th o f hi g h- i m p a c t entr ep r eneu r s hi p i s c r i ti c a l to g ener a ti ng g a i ns i n i nc o m e, em p l o y m ent, p r o d u c ti v i ty a nd c o m p eti ti v enes s g a i ns . At the s a m e ti m e, a p o s i ti v e entr ep r eneu r s hi p c u l tu r e i s need ed to a d v a nc e the development and scaling of high-impact firms. For G20 governments, education i s the k ey c o nd u i t f o r s tr eng theni ng c u l tu r e. L a s ti ng c ha ng e i n ed u c a ti o n s y s tem s , a nd r ea l c ha ng e i n c u l tu r e, ta k es ti m e. As a r es u l t, g o v er nm ents need to m a k e a l o ng - ter m c o m m i tm ent to r ef o r m thei r ed u c a ti o n s y s tem s to s u p p o r t c u l tu r e a nd s ta r t to i m p l em ent new p o l i c i es . I n the nea r ter m , new v i s a s to ena b l e m o b i l i ty a nd i nter na ti o na l netw o r k i ng i ni ti a ti v es c a n b u i l d b r i d g es a c r o s s the G 2 0 a nd d r i v e p o s i ti v e c ha ng e i n a n entr ep r eneu r s hi p c u l tu r e thr o u g h p eer - to -p eer , a nd ex p er i enti a l , l ea r ni ng . I n the m ed i u m ter m , entr ep r eneu r s hi p need s to b e em b ed d ed i n f o r m a l ed u c a ti o n s y s tem s , f r o m p r i m a r y thr o u g h to ter ti a r y , w i th i nd u s tr y a c r u c i a l p a r tner i n the p r o c es s . T hi s s ho u l d b e p a r t o f a b r o a d er ec o no m i c d ev el o p m ent p l a n f o c u s ed o n “ q u a l i ty ” entr ep r eneu r s hi p . I n the l o ng ter m , m ea s u r i ng c u l tu r e i n ed u c a ti o n, a nd l i nk i ng i t thr o u g h to i m p a c t, w i l l hel p to define effective policies and refine initiatives.

Read the full report From classroom to boardroom: Creating a culture for high impact entrepreneurship at http://www.ey.com/Publication/vwLUAssets/ey-from-c l a s s r o o m - to - b o a r d r o o m / $ F I L E/ ey - f r o m - c l a s s r o o m - to - b o a r d r o o m . p d f

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What does eCommerce mean to you? Most would generally associate the term with using the internet for trading and generating profit, and fundamentally

they would be correct. But this definition is far too broad to be of any use in developing an understanding of an eCommerce strategy customized to your business.

eC o m m er c e’ s c ha r a c ter i s ti c s a r e a s d eep a nd a s d i v er s e a s tho s e o f the p hy s i c a l m a r k etp l a c e. I ts c ha nnel s ec to r s m i r r o r tho s e o f tr a d i ti o na l C o m m er c e: B2 C , B2 B, E2 E, B2 B2 B a nd s o o n. L i k e tr a d i ti o na l c o m m er c e, ea c h e- c ha nnel ha s a d i f f er ent set of rules of engagement and operating procedures that define its parameters a nd g o v er ns ho w s u c c es s i s a c hi ev ed .

I f ther e i s a g ener a l l y u nd er s to o d m ea ni ng f o r eC o m m er c e, i t l i k el y c enter s a r o u nd the B2 C v a r i ety . T hi s i s w ha t m o s t p u b l i c a ti o ns w r i te a b o u t a f ter a l l . However in both mainland China and the US, B2B far outstrips B2C in terms of sales revenue. Based on data from Forrester Research and iResearch, mainland China had US$1.2t in B2B purchases in 2013, more than double the B2B sales in the US (US$559b) and triple the B2C sales in mainland China during the same p er i o d . H o w ev er to o o f ten eC o m m er c e, a s a b u s i nes s ter m , i s b a nd i ed a b o u t a s a generic catch-all that fundamentally signifies everything, and therefore nothing a t a l l . F o r d ec i s i o n m a k er s l o o k i ng to b u i l d a n ef f ec ti v e eC o m m er c e s tr a teg y , i t’ s w o r th ta k i ng the ti m e to u nd er s ta nd the o p p o r tu ni ti es a nd c ha l l eng es i ts c ha nnel s ec to r s p r es ent.

2 0 1 3 eCommerce

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As a l r ea d y m enti o ned , m u c h ha s b een w r i tten a b o u t B2 C eC o m m er c e. T o d a te thi s c ha nnel p r i m a r i l y f o c u s es o n “ c l i c k a nd r ec ei v e” m o d el s tha t c a n ei ther s u p p l em ent ex i s ti ng b r i c k s a nd m o r ta r o u tl ets ( S u ni ng , Ba i l i a n) , p r o v i d e a n enti r el y o nl i ne r eta i l c ha nnel ( Y i ha o d i a n, J i ng d o ng ) , o r b e a n i nter na l d i r ec t s a l es p l a tf o r m ( H ei l a nho m e. c o m ) . S i m i l a r l y , C 2 C ( T a o b a o ) tr a ns a c ti o ns a l s o f a l l u nd er thi s p r ev a i l i ng “ c l i c k a nd r ec ei v e” m o d el .

T her e ha v e b een s o m e i nno v a ti o ns r eg a r d i ng thi s “ c l i c k a nd r ec ei v e” m o d el , a nd i t i s m o v i ng to w a r d s a “ c l i c k a nd c o l l ec t” d el i v er y f u nc ti o n. Al tho u g h “ c l i c k a nd c o l l ec t” ha s b een a r o u nd f o r q u i te s o m e ti m e i n m o r e m a tu r e m a r k ets ( S ea r s d i d i t o v er a d ec a d e a g o ) , the r ec ent i nno v a ti o n ha s b een to s et u p m i c r o - d i s tr i b u ti o n c enter s thr o u g ho u t m a j o r m etr o p o l i ta n a r ea s . F o r i ns ta nc e, l ev er a g i ng a l o c a l c o nv eni enc e s to r e netw o r k to d el i v er hy p er m a r k et p r o d u c ts s er v i c ed f r o m a l a r g er c entr a l w a r eho u s e. T hi s i s j u s t o ne w a y tha t tr a d i ti o na l r eta i l outlets are becoming more flexible and a d a p ti ng to B2 C eC o m m er c e d y na m i c s w her e the c o r e d i f f er enti a to r s a r e c o s t, c o nv eni enc e a nd c ho i c e. I nv es tm ent i n d i s tr i b u ti o n c ha nnel s a nd the i nf r a s tr u c tu r e a nd p hy s i c a l w a r eho u s i ng r eq u i r ed i s the new b r i c k s a nd m o r ta r f o r thi s m o d el .

B2B

C o m p a r ed to B2 C , B2 B d o es n’ t g et a l o t o f p u b l i c i ty o r m ed i a c o v er a g e. H o w ev er , B2 B d o es g et a m a j o r s l i c e o f the eC o m m er c e r ev enu e p i e. Ba s ed o n d a ta p r o v i d ed b y the C hi na E- C o m m er c e Research Center (CECRC), B2B gross m er c ha nd i s e v o l u m e i n m a i nl a nd C hi na in 2013 totaled US$1.2t and grew 22% to US$1.6t in 2014. And iResearch is f o r ec a s ti ng B2 B v o l u m e to b a l l o o n to US$2.7t (RMB16.7t) in 2017.

N o t s u r p r i s i ng l y , B2 B eC o m m er c e c o m p a ni es a r e thr i v i ng : r ev enu e g r ew 24% in 2014. According to the CECRC, Al i b a b a c o nti nu es to l ea d the p a c k w i th nea r l y 4 0 % m a r k et s ha r e, f o l l o w ed b y S ha ng ha i G a ng l i a n E- C o m m er c e H o l d i ng s C o . , L td . , a v er ti c a l B2 B s er v i c e p r o v i d er f o c u s i ng o n the i r o n a nd s teel s ec to r , w i th 1 8 . 5 % . Bu t d o thes e e- m a r k etp l a c e p l a tf o r m s r ea l l y eq u a te to B2 B eC o m m er c e?

2 0 1 3 US$1.3t

2 0 1 7 US$2.7t

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Y o u d o n’ t need a d eep u nd er s ta nd i ng o f B2 B eC o m m er c e to u nd er s ta nd tha t u s i ng a n e- d i s tr i b u ti o n o r s a l es c ha nnel l i k e Al i b a b a ’ s m a y no t b e tr a d i ti o na l B2 B eC o m m er c e. Bu s i nes s – to – b u s i nes s ty p i c a l l y r ep r es ents a d i r ec t c ha nnel b etw een tw o enter p r i s es . H a v i ng a n i nter m ed i a r y l i k e Al i b a b a ( H C 3 6 0 ) b r o k er i ng the ex c ha ng e a nd s i tti ng i n the m i d d l e i s c l o s er to B2 B2 B. Onc e y o u r ea l i z e tha t the m a j o r i ty o f a c ti v i ty i n thes e ‘ i nter m ed i a r i es ’ i s f r o m s m a l l -to m ed i u m - s i z ed l o c a l enter p r i s es , i t b eg i ns to b ec o m e c l ea r ho w thes e r el a ti v el y new c ha nnel s a r e b ei ng u s ed , a nd s o m ew her e ther ei n c o u l d l a y the essential first question in developing a f o c u s ed , ta i l o r ed B2 B eC o m m er c e s tr a teg y .

C aptiv e mod e l or d istrib u tion f ocu se d ?

I f y o u r g o a l i s j u s t to p - l i ne g r o w th a nd m a r k et p enetr a ti o n w i th l i ttl e r eg a r d to c u s to m er s er v i c e, b r a nd p o s i ti o ni ng o r p o s s i b l e p r o d u c t c o m m o d i ti z a ti o n, then g etti ng l i s ted a s a v end o r o n ev er y l a r g e o nl i ne o u tl et c a n b e a v i a b l e s tr a teg y . F u r ther m o r e, w hi l e m o s t d ev el o p i ng m a r k ets a r e a d a p ti ng q u i c k l y to the m o d er n ec o no m y , ther e a r e s ti l l m a ny i ns ta nc es w her e l a r g e enter p r i s es l a c k the d es i r e o r I T k no w l ed g e a nd s k i l l s et to d ev el o p a p r o f es s i o na l i nter na ti o na l w eb s i te w i th o nl i ne o r d er m a na g em ent, let alone implement a robust ERP p l a tf o r m . F o r tho s e i nd i v i d u a l

2 9

c o m p a ni es , o u ts o u r c i ng the f o r m er a nd l ev er a g i ng a g l o b a l l y r ec o g ni z ed p l a tf o r m m a k es s ens e a nd i s i n g o o d p a r t a r ea s o n f o r Al i b a b a ’ s c o nti nu ed s u c c es s .

Bu t w ha t i f y o u d o ha v e thi s i nter na l I T c a p a b i l i ty ? W ha t i f y o u a r e f o r w a r d thi nk i ng a b o u t the nex t l ev el o f s er v i c e d i f f er enti a ti o n a nd b r a nd p o s i ti o ni ng ? I n es s enc e, w ha t i f y o u w a nt B2 B eC o m m er c e to m ea n m o r e to y o u tha n j u s t g etti ng a l i s ti ng o n a g l o b a l c a ta l o g u e? T hi s c o u l d m ea n tha t y o u a r e r ea d y to d i s c u s s y o u r o w n c a p ti v e p l a tf o r m , s i m i l a r to a B2 C i nter na l d i r ec t s a l es c ha nnel . T o d o thi s , y o u r f o c u s w o u l d need to s hi f t f r o m b l i nd ex p a ns i o n to lean efficiency, towards improving v i s i b i l i ty , c u tti ng o u t i nter m ed i a r i es , r ed u c i ng i nv ento r y , u p s el l i ng new p r o d u c ts , k no w i ng w ha t y o u r c u s to m er a nd m a r k et s eg m ent w a nts a nd need s b ef o r e they d o , a nd i n tu r n c r ea ti ng the s ti c k y s er v i c es to s tr a teg i c a l l y s tr eng then c u s to m er l o y a l ty a nd g r o w s a l es w hi l e o p ti m i z i ng o p er a ti ng c o s ts .

T hi s c a p ti v e m o d el i s v er y m u c h a l i g ned w i th the na ti o na l s tr a teg i es o f “ I nter net P l u s ” a nd “ Ma d e i n C hi na 2 0 2 5 ” , a d v o c a ted b y C hi na ’ s

P r em i er L i K eq i a ng . T he k ey a i m i s to i nteg r a te i nf o r m a ti o n tec hno l o g y w i th m a nu f a c tu r i ng i n o r d er to ena b l e ‘ i ntel l i g ent m a nu f a c tu r i ng ’ w hi l e s ti m u l a ti ng k no w l ed g e- i ntens i v e i nd u s tr i es . Mo b i l e i nter net, c l o u d c o m p u ti ng , Bi g D a ta , the I nter net o f T hi ng s a nd eC o m m er c e a r e a l l i nteg r a l p a r ts o f the “ I nter net P l u s ” a c ti o n p l a n. I t i s c l ea r tha t the i nf o r m a ti o ni z a ti o n o f tr a d i ti o na l i nd u s tr i es ha s b ec o m e a na ti o na l s tr a teg y . As c l ea r l y ex hi b i ted i n the l a s t 3 0 y ea r s o f g r o w th, i t w i l l b e the first movers that benefit the most from the d a w ni ng o f the new d i g i ta l a g e i n m a i nl a nd C hi na .

E2E and B2B

J u s t l i k e eC o m m er c e, E2 E c a n m ea n m u l ti p l e thi ng s to m a ny p eo p l e. Bu t w ha t w e a r e ta l k i ng a b o u t her e i s end - to - end , enter p r i s e- to - enter p r i s e information flow that transmits i nv ento r y l o c a ti o ns , s to c k i ng d a ta , a nd u p - to - the- s ec o nd s a l es . Ad d p r ed i c ti v e a na l y ti c s to thi s tr a ns p a r ent m a r r y i ng o f d em a nd to s u p p l y a nd y o u s u c c es s f u l l y m i ti g a te the b u l l w hi p ef f ec t. Of c o u r s e thi s l ev el o f ti g ht i nter p l a y w o u l d o nl y m a k e s ens e, o r ev en b e d es i r a b l e, w i th y o u r l a r g es t c u s to m er s o r s u p p l i er s .

Issues facing E2 E eCommerce

Enter p r i s eK no w w ho y o u w a nt to b e

i n the d i g i ta l w o r l d

Data analytics to find m o r e o p p o r tu ni ti es

Channel conflict for s a l es a nd m a r k eti ng

K no w y o u r c u s to m er i n the d i g i ta l w o r l d

S u p p l i er s Enter p r i s e c u s to m er s

Any w her e a nd a ny ti m e c o m m u ni c a ti o n

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An E2 E eC o m m er c e s tr a teg y w o u l d ta p i nto the v a s t a r r a y o f d i g i ta l s a l es a nd m a r k eti ng , s u p p l y c ha i n a nd b a c k office tools and solutions that are the v a ng u a r d o f b es t- i n- c l a s s o p er a ti ng efficiency today.

T hen w ha t a r e the a r ea s y o u s ho u l d c o ns i d er w hen thi nk i ng a b o u t E2 E eC o m m er c e?

1 . K now your k ey customer Bef o r e d es i g ni ng a c a p ti v e E2 E p l a tf o r m , a p r i m a r y c o ns i d er a ti o n i s to g et a b etter u nd er s ta nd i ng o f ho w y o u r k ey c u s to m er s a r e eng a g i ng w i th the d i g i ta l w o r l d . Of c o u r s e y o u a r e p r o b a b l y a l r ea d y f a m i l i a r w i th thei r p u r c ha s i ng habits offline, but what about in the d i g i ta l w o r l d ? W ha t i nf o r m a ti o n d o y o u r c u s to m er s l o o k f o r o nl i ne a nd w her e d o they l o o k f o r i t? I t i s a l s o i m p o r ta nt to thi nk a b o u t the ty p es o f c u s to m er y o u p l a n to eng a g e w i th ( OEMs o r end c u s to m er s ) a nd the u s er ex p er i enc e, s el l i ng p r o c es s ( w hi c h s eg m ents c a n b e d o ne o nl i ne? ) , a nd a ny v a l u e- a d d ed s er v i c es ( e. g . , l end i ng s er v i c es f r o m third-party financial institutions) to be p r o v i d ed .

2. Beware of channel conflict E2 E tr a ns a c ti o ns ex i s t i n a m u l ti -channel world. Channel conflict is a m a j o r c o nc er n w i th E2 E eC o m m er c e b ei ng new to m o s t enter p r i s es s ti l l

d i s tr i b u ti ng a m a j o r i ty o f thei r p r o d u c ts v i a d i r ec t s a l es , r eg i o na l o r i nd u s tr y d i s tr i b u to r s , o v er s ea s a g enc i es o r ev en thr o u g h a thi r d - p a r ty B2 B p l a tf o r m . T hi s c a n l ea d to d i r ec t c a nni b a l i z a ti o n o f s a l es a nd r es o u r c es w i th s ep a r a te channels creating conflict and internal competition and inefficiencies. This hi g hl y d i s r u p ti v e i s s u e c a n b e m i ti g a ted thr o u g h a r ea s o ned o r g a ni z a ti o n s tr u c tu r e, c l ea r s a l es s tr a teg y a nd hi g hl y tr a ns p a r ent p r i c i ng p o l i c y a c r o s s a l l s a l es c ha nnel s .

3 . Mob ile relevancy W hen d ev el o p i ng a n E2 E eC o m m er c e a p p r o a c h, enter p r i s es s ho u l d c o ns i d er the r el ev a nc y o f m o b i l e w eb a nd a p p s . I d ea l l y , a l l o nl i ne s a l e p r o c es s es a r e also configured for the mobile platform, s u c h a s i ni ti a l c o nta c t, c o ntr a c t neg o ti a ti o n a nd o r d er p l a c em ent. T y p i c a l l y , enter p r i s es em p l o y i ng m o b i l e E2 E eC o m m er c e a r e a b l e to i m p r o v e the efficiency of transactions to a l a r g e d eg r ee. N o t o nl y d o es m o b i l e s er v e to ena b l e c u s to m er s to ea s i l y and efficiently place orders, but it also empowers the field sales team b y p r o v i d i ng i m m ed i a te a c c es s to a c u s to m er ’ s k ey m etr i c s l i k e l ea d - ti m e, i nv ento r y a nd d em a nd .

4 . B ig data Bi g d a ta a na l y ti c s i s o ne o f the p r i m a r y g a m e- c ha ng i ng el em ents ena b l ed

thr o u g h E2 E eC o m m er c e. One c l ea r a d v a nta g e o f a n E2 E eC o m m er c e s y s tem o v er a thi r d - p a r ty B2 B p l a tf o r m i s tha t enter p r i s es a r e a b l e to a na l y z e the d a ta g ener a ted b y thei r o w n E2 E p l a tf o r m . Bi g d a ta a na l y ti c s c a n b e hel p f u l i n c u s to m er a c q u i s i ti o n a nd r etenti o n b y , a m o ng o ther thi ng s , i d enti f y i ng c u s to m er b eha v i o r , p r o v i d i ng c u s to m i z ed p r o d u c ts , i m p r o v i ng the r etu r n o n m a r k eti ng i nv es tm ent, a nd o p ti m i z i ng p r i c i ng p o l i c i es . F u r ther m o r e, i f p r ed i c ti v e m o d el i ng i s a p p l i ed to the d a ta , i t c a n hel p to p u t a n end to a c ho p p y , l u m p y d em a nd c u r v e.

F orw ard look ing

A m a s s i v e a m o u nt o f d a ta i s g ener a ted ea c h d a y o n m o b i l e d ev i c es , s o f tw a r e logs, sensors and RFID readers etc. Ba s ed o n T he I nter net o f T hi ng s a nd Bi g D a ta a na l y ti c s , a l l o f thi s i nf o r m a ti o n w i l l a c t a s a g a m e c ha ng er , tr a ns f o r m i ng b u s i nes s m o d el s a nd r ec a s ti ng to m o r r o w ’ s b u s i nes s l a nd s c a p e. T o d a y ’ s tr a d i ti o na l a nd no n- tr a d i ti o na l c o m p a ni es ha v e the o p p o r tu ni ty to i nv es t i n a tr a ns f o r m a ti v e B2 B eC o m m er c e s tr a teg y , a k ey ena b l er a nd f o u nd a ti o n f o r a s u c c es s f u l d i g i ta l b u s i nes s m o d el .

C o m p a ni es tha t i m p l em ent thi s w el l w i l l b e a b l e to enha nc e the a g i l i ty o f thei r value chain from R&D and material a c q u i s i ti o n to p r o d u c ti o n a nd s a l es . T hey w i l l m a k e f a s ter a nd m o r e a c c u r a te p r ed i c ti v e d ec i s i o ns b a s ed o n c l ea r d a ta , a nd ex tend thei r b u s i nes s r ea c h a nd c u s to m er b a s e, w hi l e s tr eng theni ng i nter na l a nd ex ter na l r el a ti o ns hi p s .

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K yle H ill Senior Manager, A dvisory ServicesK y l e ha s o v er 1 5 y ea r s c o ns u l ti ng a nd i nd u s tr y ex p er i enc e i n s u p p l y c ha i n a nd p r o c u r em ent o p er a ti o ns , i nc l u d i ng ta k i ng the role of Procurement Officer in USAF and his 1 0 - y ea r s ti nt i n C hi na w i th d eep ex p er i enc e w i th Em er s o n, L i nc o l n El ec tr i c , AO S m i th a nd PRTM. Kyle’s functional expertise has been a p p l i ed a c r o s s v a r i o u s i nd u s tr i es , i nc l u d i ng electronics, telecom, diversified industrials a nd p ha r m a c eu ti c a l s . H e ho l d s a n MI T Certification in Value Chain Management and APICS CPIM Certified.

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B enson N g Partner, A dvisory Services, G reater ChinaBens o n i s a s ea s o ned b u s i nes s c o ns u l ti ng p r o f es s i o na l w i th m o r e 1 7 y ea r s o f g l o b a l ex p er i enc e i n s tr a teg y , s a l es ef f ec ti v enes s , d i g i ta l , p eo p l e a nd o r g a ni z a ti o n a nd c o m p l ex p r o g r a m m a na g em ent.H e ha s a d v i s ed tec hno l o g y , c o m m u ni c a ti o ns , m ed i a a nd enter ta i nm ent a nd m u l ti na ti o na l c o m p a ni es i n G r ea ter C hi na , J a p a n, S o u th Ea s t As i a , Eu r o p e a nd T he Mi d d l e Ea s t.

A uthors 者

W i th d i g i ta l i z a ti o n, b u s i nes s w i l l b e m o r e c u s to m er - f o c u s ed a nd s u p p l y c ha i ns m o r e v i s i b l e. Af ter s a l es s u p p o r t w i l l b e c l o s er tha n ev er p o s s i b l e, b u i l d i ng s tr o ng er c u s to m er r el a ti o ns hi p s . C u s to m i z ed p r o d u c ts w i l l b e m o r e p r ev a l ent a nd c o s t ef f ec ti v e.

C o m p a ni es w ho r es i s t m o v i ng f o r w a r d with the digital age may find themselves f a l l i ng b ehi nd thei r c o m p eti to r s .H o w ev er , i nv es ti ng ha s ti l y i n I T s o l u ti o ns w i tho u t a c l ea r eC o m m er c e s tr a teg y o r d i g i ta l v a l u e c a p tu r e c a p a b i l i ty c o u l d ea s i l y end i n a m es s y q u a g m i r e. T her e need s to b e a tho u g htf u l a nd m etho d i c a l a p p r o a c h w i th d i g i ta l d a ta .

In general, five phases are proposed for a s u c c es s f u l d i g i ta l tr a ns f o r m a ti o n.

1 . D igital strategy: D evelop a digital strategy and b usiness model

• D ev el o p a d i g i ta l v i s i o n a nd consider the expected ROI and current process flow i m p r o v em ent

• Ens u r e s eni o r m a na g em ent c o m m i t to the d i g i ta l tr a ns f o r m a ti o n

2 . D igital performance management

• Es ta b l i s h d i g i ta l p er f o r m a nc e m a na g em ent m ec ha ni s m a nd m o ni to r d i g i ta l v a l u es

• Es ta b l i s h o p er a ti ng m o d el s f o r r ea l i z a ti o n o f d i g i ta l v a l u es

• D eter m i ne r ea l i s ti c a nd quantifiable KPI settings

3 . O rganiz ational transformation: Implement organiz ational change to meet the needs of the digital strategy

• Ob ta i n c r o s s - d i v i s i o na l c o l l a b o r a ti o n w i thi n the c o m p a ny a nd es ta b l i s h the r o l es s eni o r m a na g em ent to b u s i nes s p r a c ti ti o ner s need to p er f o r m

• C l a r i f y the o r g a ni z a ti o na l c ha ng es need ed f o r d i g i ta l tr a ns f o r m a ti o n.

• Understand the impact that d i g i ta l tr a ns f o r m a ti o n w i l l ha v e o n the enti r e o r g a ni z a ti o n

4 . D igital processes

• Reframe the corporate o p er a ti o na l a nd m a na g er i a l process flow around the digital s tr a teg y

• P r o m o te a d a ta a na l y ti c s - l ed d ec i s i o n- m a k i ng m ec ha ni s m a nd the u s e o f d i g i ta l to o l s

• Ma na g e the d i g i ta l p r o c es s c a r ef u l l y a nd ens u r e d i g i ta l p r o c es s c o ntr o l a nd c o m p l i a nc e

5 . R oad map for digital transformation and digital capab ility

• Recruit the right people with the r i g ht c a p a b i l i ti es

• I nv es ti g a te w hi c h d i g i ta l c a p a b i l i ti es a r e need ed to i m p l em ent the d i g i ta l tr a ns f o r m a ti o n

• Ens u r e the c o l l ec ti o n a nd a na l y s i s o f hi g h q u a l i ty d a ta EY

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风向

中国移动电子商务战略及

其必需具备的战略M-commerce strategies and “must-haves” in China

精通数字化规律是制胜中国大陆市场的关键因素之一。而在中

国大陆市场，当前的选择就是智能手机，这使得投身移动商

务大潮成为大势所趋，成为全渠道营销模式的关键动因。当今时代，

成功移动商务的定义不仅仅局限于利润率，还包括在线客户流量、浏

览量等因素，以及将这些因素转化为实际销售的效果和速度。

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Mastering the digital game is one of the keys to success in mainland China. The screen of choice in the mainland is now the smartphone, and this makes involvement in

mobile commerce (m-commerce) imperative and a key driver of omni-channel orchestration. Nowadays, success is defined not only by profit margins but also by online customer traffic, views and likes, and the effectiveness and pace at which these can be converted into actual sales.

3 9

EY ’ s Op er a ti ng Mo d el Ef f ec ti v enes s g r o u p i nter v i ew ed 2 5 companies in the mainland and investigated the strategic m&e-c o m m er c e r o a d m a p f o r the r eta i l , a p p a r el , l u x u r y , s u p er - a nd hy p er - m a r k et a nd r es ta u r a nt i nd u s tr i es .

Es ta b l i s hi ng a n e- c o m m er c e c ha nnel i s c ha l l eng i ng a nd the m a r g i ns r em a i n l o w ; ther ef o r e, r ep l a c i ng the o p er a ti ng model with an unified omni-channel is an imperative for m o s t c o m p a ni es o p er a ti ng i n m a i nl a nd C hi na . Onl i ne s to r es c o ns ti tu te u p to 6 % o f to ta l r ev enu e i n As i a a nd c o m p a ni es i n the m a i nl a nd a r e m a s s i v el y r ed es i g ni ng thei r f u tu r e o p er a ti ng m o d el . H o w ev er , o f the c o m p a ni es i nter v i ew ed , 3 0 % ha d c l o s ed a nd r eo p ened a n o nl i ne s ho p d u e to thei r l a c k o f ex p er i enc e.

I n the g r a p h b el o w , w e ha v e c o l l a ted the c o m p a ni es ’ r es p o ns es o n thei r p er c ep ti o n o f thei r o nl i ne s u c c es s .

The following graph uses a five-point Likert-scale to get an idea o f thei r k ey o b j ec ti v es . T he a v er a g e i m p r es s i o n o f ea c h s ec to r i s s ho w n, w her e 1 s ta nd s f o r “ no t i m p o r ta nt” a nd 5 f o r “ v er y i m p o r ta nt” . ‘ Ex p a nd c u s to m er r ea c h’ , ‘ C u s to m er eng a g em ent’ a nd ‘ I nc r ea s e v i s i b i l i ty a nd i nter net p r es enc e’ s eem to b e o f ten to p - r a nk ed a s the m a i n r ea s o ns to s ta r t a n o nl i ne s a l es c ha nnel .

E- c o m m er c e i n thes e i nd u s tr i es c a n b e d i v i d ed i nto f o u r g r o u p s :

1 . Early movers r ef er s to the thi r d p a r ty p l a tf o r m s s u c h a s Al i b a b a o r J D . c o m , d ep i c ted i n the u p p er r i g ht q u a d r a nt i n the g r a p h b el o w , a nd f u r ther d es c r i b ed u nd er 1 .

2 . F ast movers refers to the industries, i . e. s c a l a b l e r eta i l er s a nd a p p a r el c o m p a ni es , i n the u p p er l ef t q u a d r a nt i n the g r a p h b el o w , a nd f u r ther d es c r i b ed u nd er 2 .

3 . Slow movers refers to the industries, i . e. s u p er - / hy p er -m a r k ets a nd l a r g e r eta i l er s , i n the l o w er r i g ht q u a d r a nt b el o w , a nd f u r ther d es c r i b ed u nd er 3 .

4 . Innovative movers refers to the industries, i . e. f o o d c ha i ns a nd l u x u r y b r a nd s , i n the l o w er l ef t q u a d r a nt i n the g r a p h b el o w , a nd f u r ther d es c r i b ed u nd er 4 .

I n the f o l l o w i ng g r a p hs , the v er ti c a l a x i s d es c r i b es the o nl i ne m a r k et s ha r e a nd the ho r i z o nta l a x i s d es c r i b es the c u s to m er b a s e. T he i nd u s tr i es ha v e b een p l o tted i n the g r a p h b a s ed o n the i nter v i ew r es u l ts .

D egree of success

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T he q u a d r a nts o n the l ef t c o ns i s t o f i nd u s tr i es tha t a r e m a i nl y o n thi r d p a r ty p l a tf o r m s , a nd s m a l l er . T he i nd u s tr i es o n the r i g ht c o ns i s t o f i nd u s tr i es tha t ha v e thei r o w n p l a tf o r m s , a nd the c o m p a ni es i n thes e i nd u s tr i es a r e l a r g er .

I n thes e f o u r g r o u p s , hy b r i d v er s i o ns ex i s t d ep end i ng o n thei r p r o d u c t m i x . N ev er thel es s , ev er y o r g a ni z a ti o na l d ec i s i o n i m p a c ts thei r o p er a ti ng m o d el .

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H i g h

1 > > Early movers’ strategy: Maximize traffic and explore new mark ets

T he p l a tf o r m g i a nts w er e the ea r l y m o v er s i n the C hi nes e e- c o m m er c e m a r k et. T hey no w a r e u s ed l i k e s ea r c h eng i nes a nd p r o v i d e c o nv eni enc e, l o w - p r i c ed c o m m o d i ti es a nd f a s t d el i v er y s er v i c es .

T hei r c u r r ent c ha l l eng es a r e to i nc r ea s e g l o b a l a nd r u r a l c o v er a g e i n m a i nl a nd C hi na , a c q u i r e new i nno v a ti o ns f a s ter tha n thei r c o m p eti to r s , i nteg r a te thei r a c q u i r ed b u s i nes s es quickly and multiply online customer traffic.

K ey c ha ng es i n the o p er a ti ng m o d el :

• W hi l e m o s t c o m p a ni es tr a ns f o r m f r o m “ b r i c k s a nd m o r ta r ” to “ c l i c k a nd enter , ” ea r l y m o v er s a r e ev o l v i ng the o ther w a y a r o u nd - they a r e p a r tner i ng w i th l o c a l l o g i s ti c s p r o v i d er s a nd m er c ha nts i n l o w er - ti er c i ti es f o r l a s t- m i l e d el i v er y to r u r a l c u s to m er s .

• T hey m a i nl y p r o v i d e s u p p o r t s er v i c es to thei r m er c ha nts in marketing and promotion, e-fulfillment, inventory m a na g em ent ( e. g . , r ep l eni s hm ent p l a nni ng ) a nd a f ter - s a l es s er v i c es to thei r m er c ha nts . I n ex c ha ng e, they c ha r g e a f ee f o r m er c ha nt r eg i s tr a ti o ns a nd p r o m o ti o na l s p a c e, a nd ea r n a b u y - s el l c o m m i s s i o n.

4 1

2 > > F ast movers’ strategy: Create a b rand- presence on a third-party platform and attract traffic

F a s t m o v er s a r e the s m a l l er r eta i l er s a nd a p p a r el c o m p a ni es tha t s el l p r o d u c ts thr o u g h p l a tf o r m s c r ea ted b y the p l a tf o r m giants and which may also divert customer traffic to their own o nl i ne s ho p a nd p hy s i c a l s to r es , i f a ny .

F a s t m o v er s i n m a i nl a nd C hi na a r e tr a ns f o r m i ng thei r b u s i nes s m o d el s i nto a r o b u s t e- c o m m er c e s tr a teg y . T he c ha l l eng e i s tha t k ey p a r ts o f the v a l u e c ha i n, the c l i ent- f a c i ng “ f r o nt office,” the brand communication and the customer service, a r e m a na g ed b y a thi r d p a r ty . As a r es u l t, c o m p a ni es a r e r eq u i r ed to i ns ta l l a c o ntr o l m ec ha ni s m o n the to u c h p o i nts w i th c u s to m er s .

K ey c ha ng es i n the o p er a ti ng m o d el :

• Br a nd m a na g em ent i s a k ey v a l u e d r i v er f o r c o m p a ni es . Using third-party platforms is not sustainable as they l i m i t the b a r g a i ni ng p o w er o f m er c ha nts . I t i s i m p o r ta nt to b a l a nc e c l o s e c o l l a b o r a ti o n a nd r el a ti o ns hi p b u i l d i ng w i th s tr i c t g u i d a nc e a nd m o ni to r i ng o n thes e thi r d - p a r ty p l a tf o r m s .

• P r o c es s es a nd p r o c ed u r es i n s to r es ha v e to b e r enew ed to cater to e-fulfillment needs since store employees are not tr a i ned to s u p p o r t o nl i ne p u r c ha s es .

• I nv ento r y p r ev i o u s l y s to r ed i n d i s tr i b u ti o n c enter s ( D C s ) , p a r ti c u l a r l y i n f r ee- tr a d e z o nes , i s u r g ed to b e i m p o r ted and stored in the flagship store or local shops in order to fulfill the timely delivery promised to the customer.

• T hi r d - p a r ty p a y m ent m o d el s ha v e to b e a l i g ned w i th i nter na l c u s to m er p a y m ent p o l i c i es .

• L o g i s ti c s i s m o s tl y ta k en c a r e o f b y the m er c ha nt’ s c u r r ent l o g i s ti c s a r r a ng em ents a nd b y thi r d - p a r ty l o g i s ti c s ( 3 P L ) p r o v i d er s tha t c o v er the l o w er - ti er c i ti es .

3 > > Slow movers’ strategy: A ctivate existing clients through online-to-offline (O2O) collaboration with ecosystem- complementary partners

T hi s g r o u p c o ns i s ts o f tr a d i ti o na l l a r g e r eta i l er s , i ns ti tu ti o ns , s er v i c e p r o v i d er s a nd s u p er - a nd hy p er - m a r k ets .

T hey ha v e w eb s i tes p r es enti ng thei r p r o d u c ts a nd s er v i c es a s they g r a d u a l l y b u i l d new d el i v er y o p ti o ns .

T he D C s a nd l o g i s ti c s netw o r k a r e i n p l a c e a nd , s o m eti m es , they a l s o s el l thei r c o m p a ny - b r a nd ed p r o d u c ts .

S l o w m o v er s i n m a i nl a nd C hi na a r e r enew i ng thei r e- c o m m er c e s tr a teg i es ; i nc r ea s i ng thei r c a p a b i l i ti es i n m a r k eti ng , I T a nd l o g i s ti c s ; a nd u p g r a d i ng thei r ex i s ti ng e- c o m m er c e p l a tf o r m s .

T he nex t s tep i s to p r o v i d e thei r o nl i ne s ho p w i th m o r e d el i v er y o p ti o ns s u c h a s ho m e d el i v er y , s to r e a nd D C p i c k u p .

K ey c ha ng es i n the o p er a ti ng m o d el :

• In order to increase customer traffic and influence b u y i ng b eha v i o r , l a r g e c o m p a ni es l o o k f o r ec o s y s tem -c o m p l em enta r y c o l l a b o r a ti o n p a r tner s to i nc r ea s e thei r p r o d u c t p o r tf o l i o . T hey f o r m a l l i a nc es w i th l a r g e m er c ha nts , i nteg r a te thei r s y s tem s a nd b u i l d c o ns i s tenc y a c r o s s the d i f f er ent s a l es c ha nnel s .

• T hey f o c u s o n thei r c u s to m er d a ta b a s e a nd b u i l d i nter na l c a p a b i l i ti es f o r d a ta a na l y ti c s to p r ed i c t c u s to m er b eha v i o r a nd p er s o na l i z e thei r o m ni - c ha nnel .

• Unlike in the case of smaller retailers, brand management i s o f ten o u ts o u r c ed .

• T hei r s u p p l y c ha i n m a i nl y c o ns i s ts o f i n- ho u s e a c ti v i ti es . T hey a l r ea d y ha v e m u l ti p l e D C s o r w a r eho u s es i n l a r g e c i ti es , b u t ther e i s a need to i nv es t i n l o g i s ti c s c a p a b i l i ti es f o r d em a nd i n l o w er - ti er c i ti es .

• T hey ha v e m o r e b a r g a i ni ng p o w er o n thi r d - p a r ty p l a tf o r m s tha t p r o v i d e o p ti o ns f r o m c o ns i g ned s to c k to s el f - r u n D C s . D ec entr a l i z ed w a r eho u s i ng i s p o p u l a r i n c i ti es w her e i nv ento r y hu b s a r e m u l ti p l y i ng . I n l o w er - ti er c i ti es , r eg i o na l D C s a r e c o m b i ned w i th 3 P L p r o v i d er s to c o v er the enti r e C hi nes e m a r k et.

• T hey o f ten ha v e a hy b r i d m o d el ( i . e. , p hy s i c a l s to r e, o nl i ne s to r e a nd thi r d - p a r ty p l a tf o r m ) a s they ha v e no t y et c ha ng ed the o r i g i na l w a y o f w o r k i ng b ec a u s e o f u nc er ta i nty i n o nl i ne g r o w th s o they s tr i v e to m a i nta i n hi g h s to c k l ev el s i n c i ti es .

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4 > > Innovative movers’ strategy: N avigate memb ers through O 2 O experience

T hi s g r o u p c o ns i s ts o f l u x u r y b r a nd s a nd f o o d c ha i ns , a nd the c u s to m er ex p er i enc e i s the m a i n f o c u s .

T hey s eem to u s e “ tr i a l a nd er r o r ” to c r ea te a “ b u z z ” d er i v ed from an “innovative” move; and a flawless online-offline ex p er i enc e i s a n i m p o r ta nt p a r t o f enti c i ng a c u s to m er to m a k e a n i m p u l s i v e b u y . F o r ex a m p l e, s o m e b r a nd s c o l l a b o r a te w i th u nex p ec ted p a r tner s i n the v a l u e c ha i n to c o m p l ete thei r c u s to m er - c entr i c ec o s y s tem .

K ey c ha ng es i n the o p er a ti ng m o d el :

F ood ch ains

• Restaurants with a home-delivery services have innovative w a y s o f a ttr a c ti ng c u s to m er s to c r ea te a “ ta l k o f the to w n” ex p er i enc e a nd , i n m o s t c a s es , thi s ha s l ed to i nc r ea s ed tu r no v er . I f the d el i v er y ha p p ens i n- ho u s e, G P S s y s tem s a r e u s ed to i ns tr u c t the d el i v er y p er s o n w her e to c o l l ec t the i tem s w hi l e they a r e o n the d el i v er y r o u te; thi s r eq u i r es hi g hl y a d v a nc ed i nv ento r y m a na g em ent a nd p l a nni ng .

L u x u ry b rand s

• An o nl i ne s a l e i s ty p i c a l l y ha nd l ed thr o u g h s o c i a l m ed i a eng a g em ent o r s o c i a l c o m m er c e. Ma ny b r a nd s ha v e a l r ea d y s ta r ted to s tu d y a nd i m p l em ent W eC ha t f ea tu r es o n thei r e- c o m m er c e w eb s i tes . I n o r d er to l ev er a g e the full benefits of Chinese media platforms, companies s ho u l d f o l l o w tw o s tep s : l i s ten a c ti v el y ( w ha t i s b ei ng s a i d a b o u t the b r a nd a nd p r o d u c ts ) a nd eng a g e the c o ns u m er ( p u b l i s hi ng a nd f a n i nter a c ti o n) .

• Ma ny m a y a l r ea d y b e s el l i ng o nl i ne thr o u g h “ d a i g o u ” , o r o v er s ea s p u r c ha s er s . F i r s tl y , a b r a nd s ho u l d c hec k ho w m a ny o f i ts p r o d u c ts a r e a l r ea d y a v a i l a b l e thr o u g h d a i g o u e- c o m m er c e p l a tf o r m s i n m a i nl a nd C hi na .

• C r o s s - b o r d er c o m m er c e i s p o tenti a l l y i nter es ti ng f o r l u x u r y b r a nd s . Mo d el s s u c h a s “ d i r ec t p u r c ha s e i m p o r t a nd b o nd ed i m p o r t” ha v e to b e s tu d i ed c a r ef u l l y .

• D u e to the i nter net o v er s i g ht s y s tem s , a nd the hi c c u p s i n C hi nes e tel ec o m i nf r a s tr u c tu r e, the o nl i ne s ho p p i ng ex p er i enc e o f c u s to m er s ha s to b e m o ni to r ed c l o s el y .

• Legal action is an important way of fighting counterfeiting. H o w ev er , b ei ng a c ti v e i n the m a r k et a nd o f f er i ng c l ea n a nd r el i a b l e s ho p p i ng c ha nnel s i s a n i nter es ti ng a l ter na ti v e.

E- commerce companies’ must- haves

I n s u m m a r y , c o m p a ni es i n m a i nl a nd C hi na m u s t c o ns i d er the f o l l o w i ng i f w i s hi ng to i nc r ea s e m a r k et s ha r e:

• D igital organiz ation: T he e- c o m m er c e s tr a teg y ha s to b e em b ed d ed i n the enti r e o r g a ni z a ti o n, d es i g ned l o c a l l y , a p p r o v ed g l o b a l l y a nd ex ec u ted b y d ed i c a ted c r o s s -f u nc ti o na l e- c o m m er c e tea m s .

• L imited distrib ution channels: G l o b a l c o m p a ni es w i th ex i s ti ng d i s tr i b u ti o n c ha nnel s ha v e to c o ntr o l a nd l i m i t the nu m b er o f d i s tr i b u to r s tha t p r es ent thei r p r o d u c ts o nl i ne. D i f f er ent p r i c i ng s tr a teg i es c a n l ea d to c ha nnel c a nni b a l i z a ti o n.

• Unified commerce experience: T he c u s to m er need s to ha v e a c o ns i s tent ex p er i enc e thr o u g h the b u y i ng p r o c es s . This requires the full integration of the back office and c l o s e c o l l a b o r a ti o n w i th the o u ts o u r c i ng p a r tner s .

• “ B uz z ” – call for action: C o m p a ni es tha t a r e a b l e to i nno v a te c r ea te a “ ta l k o f the to w n, ” p l a y o n em o ti o ns a nd g ener a te b r a nd a w a r enes s .

▪• Control merchandiz ing and pricing: T hes e f a c to r s a r e s een a s the m o s t i m p o r ta nt o n a thi r d - p a r ty p l a tf o r m .

• O ne view of truth in inventory availab ility: T he s to c k i n the city for ad hoc e-fulfillment needs to be balanced with the s to c k o u ts i d e the c i ty , i n p a r ti c u l a r , i n b o nd ed w a r eho u s es i n f r ee- tr a d e z o nes .

• O nline selection: I tem s s o l d o nl i ne s ho u l d i n p r i nc i p l e b e s ta nd a r d o r b e ex c l u s i v el y s o l d o nl i ne f o r “ b u z z ” p u r p o s es . C u s to m er d a ta f r o m thi r d - p a r ty p l a tf o r m s c a n b e r etr i ev ed a nd a na l y z ed to p er s o na l i z e y o u r a p p r o a c h.

• IT and e- mark eting capab ilities: S ev enty - thr ee p er c ent o f the c o m p a ni es i nter v i ew ed s a y tha t thes e c a p a b i l i ti es s ho u l d b e d ev el o p ed i n- ho u s e. EY

43

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43

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艾瓦德

亚太税务中心运营能效优化服务主管合伙人

主要服务领域为生命科学、高科技和消费品的运营模式优化。

Edvard有着超过20年的工作经验，共为超过130个运营能效优化服务

项目担任过业务领导、项目经理或项目领导角色。他可以对区域性或

全球性的供应链管理结构的建立提供咨询意见，例如：亚洲集中采购

项目和中国及亚洲销售渠道围绕不同总部基地的重组项目。

Edvard Rinck Lead Partner, APAC Tax Center Operating Model Effectiveness (OME) Industry focus on operating models with life sciences, high tech and consumer goods.Edvard, with his 20 years’ professional experience, has worked on more than 130 OME engagements as workstream leader, project manager and engagement leader. He now advises on the establishment of regional and global supply chain management structures, e.g., Asia-centered procurement projects and the structuring of Chinese and Asian distribution networks in key locations.

马家駉

业绩改善–供应链与运营管理咨询服务合伙人

有着超过20年的商业及公共领域的专业服务经验。他主要向香港及中

国大陆的零售、物流、物业管理及政府组织提供供应链、运营、电子

商务、IT战略以及系统执行方面的咨询服务。

Michael KK Ma Partner, Advisory Performance Improvement Supply Chain & LogisticsMichael has over 20 years’ professional experience in the commercial and public sectors. He now specializes in providing supply chain, eCommerce, IT strategy and system implementation consulting services to retail, logistics, property development and government organizations in Hong Kong and mainland China.

张莉莉

运营能效优化服务高级经理

主要服务领域为零售及奢侈品品牌在中国的电子商务策略及运营模式

优化。

拥有超过十年的国际战略、管理策略、全球改组（并购、分离及整

合）、运营模式设计、方案执行、品牌及业务拓展、销售增长等领域

的经验，在亚洲和欧洲管理许多项目，特别是在中国大陆、台湾以及

新加坡。

Lilly Cheung Senior Manager, APAC Operating Model EffectivenessIndustry focus on digital strategy and eCommerce operating models for retail and luxury brands in China.Ten years’ professional experience focused on defining strategy, managing complex global business transformations (M&A, carve-outs and integrations), designing operating models, implementing brand and business development strategies, driving sales, and leading projects across Europe and Asia, in particular mainland China, Taiwan and Singapore.

Authors 作者介绍

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Patrice Nordey VELVET创始人和首席执行官

Patrice Nordey驰骋电子商务领域、从事数码产品业务已有15年之

久，业务遍布欧洲和北亚。

作为上海VELVET的创始人和首席执行官，他向跨国公司提供在中国

进行数字营销和传播，以及有关社交媒体和电子商务活动的意见。

Patrice Nordey Founder & CEO, VELVETPatrice Nordey, a digital veteran, has over 15 years of e-business experience across Europe and northeast Asia.As founder and CEO of the Shanghai-based company VELVET, he advises international companies on digital marketing and communications, social media and e-commerce in China.

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O n a glob al b uying spree: w ave after w ave of overseas M& A s b y Chinese corporations

Ov er the l a s t 1 0 y ea r s , C hi nes e d i r ec t f o r ei g n i nv es tm ent ha s g r o w n c o ns i d er a b l y . T o d a y , C hi na i s the w o r l d ’ s thi r d l a r g es t i nv es to r . An i nc r ea s i ng nu m b er o f C hi nes e c o m p a ni es a r e tr a ns i ti o ni ng f r o m g l o b a l m a nu f a c tu r er s i nto g l o b a l i nv es to r s a nd overseas merger and acquisition activity (M&As) by Chinese companies is increasing. And i t’ s u ns to p p a b l e.

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Source: Statistics Department, Ministry of Commerce. Data in 2006 and prior to it does not include financial i nv es tm ent. D a ta o n 2 0 1 5 a r e f o r ec a s t b y EY I ntel l ec tu a l Ma na g em ent C enter .

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In the next five years, benefiting from the reforms and ec o no m i c tr a ns f o r m a ti o n o f the c o u ntr y , C hi nes e c o m p a ni es are expected to continue their overseas M&A activities. I nc r ea s i ng l y , C hi nes e c a p i ta l i s a f o r c e to b e r ec k o ned w i th i n the w o r l d m a r k et. C hi nes e c a p i ta l ha s d ev el o p ed a nd i s m a tu r i ng , a nd i t i s no w s eek i ng i nv es tm ent o p p o r tu ni ti es .

H o w ev er , w e ha v e f o u nd tha t a b o u t 7 0 % 1 of the M&A deals w er e no t s u c c es s f u l a s they d i d no t g i v e the ex p ec ted v a l u e. In pursuing overseas M&As, Chinese enterprises’ a rationale a nd ex ec u ti o n p l a n ha v e no t b een i n l i ne w i th thei r v i s i o ns . F o r ex a m p l e, s o m e enter p r i s es w er e ea g er to ex p a nd a nd b eg a n M&A activities in areas they were not familiar with. Some enter ed a d ea l w i tho u t a r ea s o na b l e a s s es s m ent o f thei r o w n r es o u r c es a nd a b i l i ti es a nd f o u nd them s el v es s ho r t o f the nec es s a r y c o r e r es o u r c es a nd ex ec u ti o n p o w er to c o m p l ete the o v er s ea s d ea l s . S o m e d i d no t ha v e a n o r d er l y ex ec u ti o n p l a n a nd s o thei r “ g o i ng o v er s ea s ” s tr a teg i es w er e no t g i v en the r eq u i r ed s u p p o r t.

T o a d d r es s thes e c ha l l eng es a nd s u c c es s f u l l y c o m p l ete a n overseas M&A deal, we believe that Chinese enterprises should formulate an M&A strategy in line with their overall strategy a nd o ne tha t’ s p r o v ed to b e ef f ec ti v e. T hey s ho u l d ha v e a p l a n b ef o r e they m a k e a m o v e.

Plan b efore action – Strategy leads the w ay in overseas M& A s

An overseas M&A includes five major steps: Formulation of an o v er s ea s i nv es tm ent s tr a teg y , s c r een a nd l o c k i n a n i nv es tm ent target, transaction and execution, post-M&A integration a nd p o s t- i nv es tm ent m a na g em ent a nd i nv es tm ent p o r tf o l i o a s s es s m ent.

A sound overseas M&A strategy should guide the company when launching an overseas M&A, enhance its ability to capture o p p o r tu ni ti es i n the i nter na ti o na l ec o no m i c env i r o nm ent, r es p o nd to c ha l l eng es a nd hel p a v o i d d ev i a ti o ns f r o m the es ta b l i s hed s tr a teg i c l i ne a nd f a i l u r e a s a r es u l t.

To formulate an overseas M&A strategy, a company first need s to r ev i ew i ts v i s i o n a nd o v er a l l s tr a teg i c o b j ec ti v e; thi s is done to ascertain the objective of its overseas M&A activity. S ec o nd , i t m u s t a na l y z e the ta r g eted r eg i o n a nd i nd u s tr y a nd the i nv es tm ent i n ter m s o f m a r k et a ttr a c ti o n a nd i nv es tm ent f ea s i b i l i ty . T hi s i s to i d enti f y the k ey r eg i o n a nd i nd u s tr y f o r i ts i nv es tm ent i n l i g ht o f the c o m p a ny ’ s o w n s tr a teg y a nd r es o u r c e a l l o c a ti o n. T hi r d , the c o m p a ny s ho u l d l o o k a t the i nter na l r es o u r c es o f the c o m p a ny a nd a s s es s the r es o u r c es available for overseas M&As, and analyze the potential synergies of an overseas M&A target. Having formulated an overseas M&A strategy, the company should also lay down a d eta i l ed ex ec u ti o n r o a d m a p , b u i l d the s u p p o r ti ng p l a tf o r m , a nd enha nc e i ts o w n i nter na l a b i l i ti es to ens u r e they c a n s u p p o r t the implementation of its overseas M&A strategy.

The essay here discusses only the formulation of an overseas M& A strategy

• P r i nc i p l e f o r s c r eeni ng i nv es ti ng ta r g ets

• L o ng - a nd s ho r t- l i s t o f i nv es tm ent ta r g ets

• I ni ti a l c o nta c ts w i th i nv es tm ent ta r g ets

• I d enti f y c ha l l eng es to m a na g em ent i nteg r a ti o n

• S p ec i f y m a j o r a r ea s o f i nteg r a ti o n a nd m etho d s

• Mo ni to r a nd o p ti m i z e i nteg r a ti o n p l a n

• C o m p a ny v i s i o n a nd s tr a teg i c o b j ec ti v e

• An o v er s ea s i nv es tm ent s tr a teg y p l a n

• I d enti f y k ey s tep s i n a s s es s i ng the i nv es tm ent p o r tf o l i o

• F i na l i z e ex ec u ti o n m etho d s f o r a s s es s i ng i nv es tm ent p o r tf o l i o s

• T r a ns a c ti o n d o c u m enta ti o n• D eta i l ed d u e d i l i g enc e• Risk analysis• Valuation• D ea l neg o ti a ti o ns• S ettl em ent

Ov e rse as inv e sting strate gy

S cre e n and lock in on an inv e stme nt targe t

T ransaction and e x e cu tion

P ost- acq u isition inte gration

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5P ost- inv e stme nt manage me nt and inv e stme nt portf olio asse ssme nt

1 S o u r c e: EY Ana l y s i s

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T he f o l l o w i ng i s a c a s e s tu d y i l l u s tr a ti ng the f o r m u l a ti o n o f an effective overseas M&A strategy.

A l a r g e, l i s ted eng i neer i ng c o r p o r a ti o n ( “ the C o m p a ny ” ) w a s u nd er p r es s u r e d u e to i ts i nv es to r s ’ ex p ec ta ti o ns a nd i ts c o m p eti to r s . T o r es o l v e thes e s tr es s es , the C o r p o r a ti o n r ev i ew ed the s i tu a ti o n a nd d ec i d ed to d i v er s i f y thr o u g h pursuing overseas M&As.

R e v ie w and asse ss th e corporate strate gy and v ision A c o m p a ny c a n a s c er ta i n i ts d ev el o p m ent o b j ec ti v e a nd d i r ec ti o n thr o u g h r ev i ew i ng i ts v i s i o n a nd s tr a teg y .

During the early stages of the formulation of its M&A s tr a teg y , the C o m p a ny i nv i ted c o ns u l ta nts to a s s i s t i t i n s c r u ti ni z i ng i ts s tr a teg i c d ev el o p m ent o b j ec ti v e. T hr ee k ey d i r ec ti o ns w er e es ta b l i s hed : to s tr eng then the i nd u s tr y c ha i n, d ev el o p a nd i nv es t i n i nno v a ti v e b u s i nes s es a nd b r ea k i nto new m a r k ets .

P lan an M & A strate gy Ar m ed w i th a f u l l u nd er s ta nd i ng o f ex ter na l m a r k ets , a s c er ta i n the ta r g eted i nd u s tr y a nd r eg i o na l m a r k et b a s ed o n m a r k et a ttr a c ti o n a nd m a tc hi ng i nter na l r es o u r c es . Differentiate overseas M&A markets into the categories of k ey f o c u s es , to - b e- d ev el o p ed , m a i ntena nc e a nd tem p o r a r y o f f - c o ns i d er a ti o n.

A naly ze e x te rnal mark e ts and asce rtain k e y inv e sting re gion and ind u stry A c o m p a ny c a n s tu d y g l o b a l i nf r a s tr u c tu r e c o ns tr u c ti o n i nd u s tr i es , es p ec i a l l y the s ta g e o f d ev el o p m ent o f the ni c he i nd u s tr y to w hi c h the c o m p a ny b el o ng s , i nc l u d i ng i nd u s tr y s c a l e, g r o w th p r o s p ec ts , d ev el o p m ent tr end s , d r i v er s , i nd u s tr y c o m p eti ti o n a nd d i f f er enc es a nd s i m i l a r i ti es i n d o w ns tr ea m c o ns u m er d em a nd i n the ta r g eted i nd u s tr y i n d i f f er ent r eg i o ns a nd c o u ntr i es :

• Industry scale, grow th prospective and the overall trend of the industry development: Ba s ed o n the s tu d y o f l ev el s of assets, income and profits of the niche industry of the c o m p a ny , a nd the p r o j ec ted g r o w th r a tes o f thes e i nd i c es i n the nex t f ew y ea r s , a c o m p a ny c a n a s s es s the g r o w th p o tenti a l a nd ex p ec ted r etu r ns o f the ni c he i nd u s tr y a nd o ther ni c he i nd u s tr i es o n the s a m e i nd u s tr y c ha i n in the specified country market. And evaluate the future d i r ec ti o n o f g r o w th o f the i nd u s tr y a nd c a p tu r e p o tenti a l o p p o r tu ni ti es b a s ed o n the ty p i c a l c ha r a c ter i s ti c s o f i nd u s tr y g r o w th c y c l e.

• D ifferences and similarities of dow nstream consumers’ demand in the targeted industry in different regions and countries: D u e to c u l tu r a l d i f f er enc es a nd the d i f f er ent ex tents o f i nd u s tr i a l d ev el o p m ent, c o u ntr i es d i f f er i n

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• C o m p eti ti v enes s f o r i nv es ti ng i n the r eg i o n/ i nd u s tr y

• Risks for investing in the region/i nd u s tr y

• W hether the r eg i o n/ i nd u s tr y ha s b een i nv es ted i n o r d ev el o p ed b ef o r e

• W hether ther e a r e s y ner g i es b etw een the EP C b u s i nes s a nd the i nd u s tr y a nd r eg i o n

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• W hether i nter na l s ta f f ha v e the i nv es tm ent ex p er i enc e i n the r el ev a nt i nd u s tr y / r eg i o n

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5 5

their final consumers’ demands. Through the analysis o f thes e d i f f er enc es , a j u d g m ent c a n b e m a d e o n the p r o d u c t, s er v i c es a nd s o l u ti o ns o f the c o m p a ny a s to thei r c o m p a ti b i l i ty w i th the c o ns u m er d em a nd i n the ta r g eted c o u ntr y a nd w hether thes e d i f f er enc es c a n b e o v er c o m e thr o u g h a c q u i s i ti o ns o r a d j u s tm ents i n s er v i c es .

• Competition w ithin the industry: T hr o u g h a na l y z i ng the c o m p eti ti o n i n the i nd u s tr y , i d enti f y the o v er a l l c o m p eti ti v enes s o f the i nd u s tr y . F o r m a c o nc l u s i o n o n the f u tu r e d ev el o p m ent s u s ta i na b i l i ty a nd the p o s i ti o ni ng o f the i nv es ted c o m p a ny . Mea nw hi l e, g a i n a n u nd er s ta nd i ng o f the i nd u s tr y ’ s m a j o r c o m p eti to r s i n ter m s o f i nc o m e scale, profitability, company backgrounds/nature, product o r s er v i c e c ha r a c ter i s ti c s ( f o r ex a m p l e p r o d u c t g r a d e, p r i c i ng , a nd s c o p e o f s er v i c e) . As s es s the r el a ti v e s tr eng ths a nd w ea k nes s es o f r el ev a nt p l a y er s i n ter m s o f p r o d u c ti o n/s er v i c e a b i l i ti es , ex tents o f r eg i o na l / i nd u s tr y c o v er a g e, c ha nnel s , a nd s a l es f o r c e f o r m a ti o n. T hi s w i l l p r o v i d e r ef er enc es f o r m a r k et entr y a nd s c r eeni ng o f ta r g eted c o m p a ni es .

A sse ss inte rnal ab ilitie s and analy ze re sou rce ad v antage s and pote ntial sy ne rgie s T hen c o m e the a na l y s i s o f the w i l l i ng nes s a nd s tr a teg i c i ntenti o ns o f m a na g em ent, a c o m p r ehens i v e ev a l u a ti o n o f the supporting resources for overseas M&As, including industry investment, management experience, and the financial capabilities for overseas M&As. After that an analysis of the p o tenti a l s y ner g i es b etw een the i nd u s tr y / r eg i o n a nd the o v er s ea s s tr a teg y o f the C o m p a ny ’ s c o r r es p o nd i ng b u s i nes s es .

H a v i ng d o ne the i nter na l a nd ex ter na l c o ns o l i d a ted a na l y s i s a nd a l i g ned i t w i th the C o m p a ny ’ s o w n s tr a teg y , the g r o w th p o tenti a l o f c o r e c a p a b i l i ti es , ho w r el ev a nt the b u s i nes s was to the Company’s, the Company finally identified three types of potential M&A target: one, specialized engineering m a na g em ent c o m p a ni es , w hi c h c a n i nc r ea s e the C o m p a ny ’ s p enetr a ti o n i nto the f r o nt- end i nd u s tr y c ha i n a nd s tr eng then i ts eng i neer i ng k no w - ho w o r ex ec u ti o n m a na g em ent p o w er f o r o v er s ea s p r o j ec ts . T w o , m a tu r e o v er s ea s l i c ens ed o p er a ti o n c o m p a ni es , w hi c h c a n hel p the C o m p a ny g a i n r a p i d l y a b i l i ti es f o r o p er a ti ng p r o j ec ts a nd enter i nto the l i c ens ed m a r k et. T hr ee, c o m p a ni es s i m i l a r to the C o m p a ny i n q u a s i - d ev el o p ed

Conclusion

T he i nc r ea s i ng l y s tr o ng d es i r e o f C hi nes e enter p r i s es to “ g o o v er s ea s ” w i l l l ea d to a new r o u nd o f C hi nes e c a p i ta l s eek i ng i nv es tm ent a b r o a d . I f C hi nes e enter p r i s es f o r m u l a te a s tr o ng p l a n b ef o r e ta k i ng a c ti o n a nd ha v e strategy-led investment and M&A tactics, their journey a r o u nd the w o r l d w i l l b e a s s u r ed a nd p r o tec ted . T hes e enterprises will steer clear of hidden reefs, and find safe p a s s a g e a r o u nd the w o r l d .

m a r k ets , w hi c h c a n hel p the C o m p a ny o b ta i n r el ev a nt r es o u r c es to b r ea k thr o u g h m a r k et b a r r i er s .

A n M & A imple me ntation road map and th e b u ild ing of su pport platf ormsH a v i ng f o r m u l a ted a d eta i l ed r o a d m a p to s er v e a s a guidance for the M&A, the Company built a platform to support the implementation of their M&A strategy. The roadmap broke down the M&A objective into different s ta g es tha t o u tl i ned the c o r r es p o nd i ng m a np o w er p l a n, r i s k c o ntr o l p l a n a nd the nec es s a r y k no w l ed g e s u p p o r t. At the same time, a diversified financing platform provided sufficient funding to the Company during the M&A p r o c es s . I n a d d i ti o n, the C o m p a ny r el i ed o n a n ex p er i enc ed third-party consultant to provide assurance for the M&A process, such as investment studies, identification of o p p o r tu ni ti es , d ec i s i o n- m a k i ng , p r o p o s ed neg o ti a ti o ns a nd o p er a ti o n m a na g em ent to s u p p o r t the i m p l em enta ti o n o f the overseas M&A strategy and maximize overseas M&A benefits.

Guided by the established M&A strategy, the Company achieved one breakthrough after another in overseas M&A d ea l s a nd s u c c es s f u l l y a c q u i r ed m a ny o v er s ea s c o m p a ni es . T he C o m p a ny w a s a b l e to d i v er s i f y i ts b u s i nes s es , o b ta i n new ea r ni ng g r o w th p o i nts , a c hi ev e i nno v a ti o n i n i ts b u s i nes s m o d el , ex p a nd i ts i nd u s tr y c ha i n a nd w i n the f a v o r o f c a p i ta l m a r k ets .

EY

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务 管

投资 务 管

2 0 管理 和 业管理

1 2 业 事

职 项 业

划 和 理

收 和资 项目 项目

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Y ew - Poh Mak China N orth TA S L eader G reater China Corporate F inance Strategy L eader Y ew - P o h ha s o v er 2 0 y ea r s o f m a na g em ent c o ns u l ti ng a nd c o r p o r a te m a na g em ent ex p er i enc e i n As i a , w i th the l a s t 1 2 years in China. Specializing in M&A strategy development, due d i l i g enc e a nd p o s t- m er g er i nteg r a ti o n, Y ew - P o h ha s l ed a nd p a r ti c i p a ted i n o v er 5 0 0 a c q u i s i ti o ns a nd d i v es ti tu r es , w o r k i ng extensively with multinationals, PE firms, Chinese state-owned enter p r i s es a nd l a r g e As i a n c o ng l o m er a tes .

A uthors 者

投资 务

1 2 和 事管理 和 务

投 资

投资 投资 行 入 业务 和

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J erry B ao Partner, Corporate F inance StrategyJ er r y ha s o v er 1 2 y ea r s o f ex p er i enc e i n m a na g em ent c o ns u l ta nc y a nd tr a ns a c ti o n c o ns u l ta nc y i n As i a a nd C hi na . He specializes in investment and financing strategies, M&A strategies, overseas M&A investment, investment feasibility a na l y s i s a nd m a r k et entr y . H e ha s l ed o r b een i nv o l v ed i n o v er 50 domestic and overseas investment or financing strategy a nd m a r k et entr y p r o j ec ts a c r o s s v a r i o u s i nd u s tr i es i nc l u d i ng infrastructure, consumer goods, life sciences, financial and r el a ted s er v i c es , e- c o m m er c e a nd a u to a nd a u to p a r ts .

5 7业

The b etter the q uestion. The b etter the answ er. The b etter the w orld w ork s.

?C an compliance h e lp y ou compe te ?

务 管

业务

EY’s global financial services team can help you navigate regulation and create competitive advantage.

ey.com/financial #BetterQuestions

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58

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59

风向

中国的医疗

渐入佳境China’s health care Getting well soon

中国大陆的医疗市场是全球增长最快的市场之一。

尽管监管变革与不断变化的环境给市场参与者带

来独特的挑战，但同时也带来机遇。并购以及形成战略

联盟可以使得医疗企业抓住先机并且获得市场份额；对

于这样一个巨大而动态的市场，不能被动等待。

6 0

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制

管 将

系 关 制 业

系统

将 关

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目

业 目 收入 4 0 %收入 项

目 制 2 0 1 5将 制

业 制 业 和

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制 业 通 业 行

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2 0 1 0 2 0 1 4 1 6 . 9 %CAGR 2 0 1 4 3 7 3 3 1

2 0 1 8 6 4 , 1 6 9 1

2

• 2 0 5 0 将 6 02 0 1 0 2 4 %

将 目 2 . 6 和3

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者

2 0 1 1 - 2 0 1 8 1 0

BMI

7 0 0 0

6 0 0 0

5 0 0 0

4 0 0 0

3 0 0 0

2 0 0 0

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1 , 9 8 8

CAGR: 16.9% CAGR: 14.5%

3 , 7 3 3

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6 1

投资者 投资

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The health care market in mainland China is amongst the fastest growing in the World. Although regulatory changes and an ever-

evolving landscape present unique challenges to market players, these also bring about opportunities. Mergers and acquisitions (M&A) and forming strategic alliances could allow healthcare players to seize the initiative and gain market share, in a market which is too large and dynamic to remain passive in.

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D e mograph ic sh if t and re gu latory ch ange s w ill d riv e h e alth care spe nd ing

Health care spending in mainland China grew at a CAGR of 16.9% from 2010 to 2014, reaching RMB3,733.1 billion in 2014, and is forecast to grow to RMB6,416.9 billion1 b y y ea r 2 0 1 8 a nd b ec o m e the s ec o nd l a r g es t2 m a r k et i n the W o r l d .

H ealth care spending in China 2 0 1 0 - 2 0 1 8 ( R MB b illion)

S o u r c e: BMI r es ea r c h

7 0 0 0

6 0 0 0

5 0 0 0

4 0 0 0

3 0 0 0

2 0 0 0

1 0 0 0

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1 , 9 8 8

CAGR: 16.9% CAGR: 14.5%

3 , 7 3 3

6 , 4 1 6

T hi s g r o w th w i l l l a r g el y b e d r i v en b y :

D emographic shift• Ag i ng p o p u l a ti o n: Ab o u t o ne- thi r d o f the p o p u l a ti o n i s

ex p ec ted to b e a b o v e 6 0 y ea r s o l d b y 2 0 5 0 , c o m p a r ed to 2 4 % i n y ea r 2 0 1 0 . Al o ng w i th a n a g i ng p o p u l a ti o n, c hr o ni c d i s ea s es a r e a l s o b ec o m i ng i nc r ea s i ng l y c o m m o n, w i th 2 6 0 m i l l i o n C hi nes e c u r r entl y s u f f er i ng f r o m c a nc er , d i a b etes a nd o ther c hr o ni c d i s ea s es 3 .

• Urbanisation and rise of the middle income: the u r b a ni z a ti o n r a te i s ex p ec ted to r ea c h a p p r o x i m a tel y 6 0 % i n 2 0 2 0 , c o m p a r ed to 5 2 . 6 % i n y ea r 2 0 1 2 4 . D i s p o s a b l e i nc o m e ha s i nc r ea s ed b y 1 0 . 1 % i n 2 0 1 4 f r o m 2 0 1 3 4 , a nd thi s i s ex p ec ted to c o nti nu e r i s i ng w i th ec o no m i c growth and urbanization. Growing affluence amongst the p o p u l a ti o n ha s i nc r ea s ed hea l th c o ns c i o u s nes s a nd thi s w i l l d r i v e w i l l i ng nes s to s p end .

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H ealth care reformsOne o f the m a i n o b j ec ti v es o f the o ng o i ng hea l th c a r e r ef o r m s i s to ex tend the r ea c h a nd l o w er the c o s ts o f hea l th c a r e s er v i c es . Mea s u r es i nc l u d e the ex p a ns i o n o f the s ta te i ns u r a nc e to the enti r e p o p u l a ti o n b y 2 0 1 5 , i nc r ea s ed g o v er nm ent s p end i ng thr o u g h the b u i l d i ng o f tho u s a nd s o f c o m m u ni ty hea l thc a r e c entr es , r ev a m p i ng o f the d r u g p r i c i ng s y s tem , enc o u r a g i ng i nno v a ti o n b y l o c a l c o m p a ni es a nd o p eni ng u p o f the ho s p i ta l s ec to r to p r i v a te a nd f o r ei g n i nv es tm ents .

I n a d d i ti o n, the g o v er nm ent i s a l s o c o ntr o l l i ng p r i c es o f p r em i u m m ed i c a l d ev i c es , w hi l e a t the s a m e ti m e p r o m o ti ng i nno v a ti o n a nd i m p r o v i ng the q u a l i ty o f m ed tec h p r o d u c ts m a nu f a c tu r ed i n m a i nl a nd C hi na . T he g o v er nm ent i s a l s o o p eni ng u p the ho s p i ta l s eg m ent to p r i v a te a nd f o r ei g n i nv es to r s .

W hi l e the d em o g r a p hi c s hi f t a nd r eg u l a to r y c ha ng es w i l l d r i v e significant growth in health care spending, these will also bring about significant changes to the competitive dynamics in the hea l th c a r e s ec to r a nd w a r r a nt tha t m a r k et p l a y er s a d a p t to thes e c ha ng es i n o r d er to s ei z e m a r k et o p p o r tu ni ti es .

P h armace u tical se ctor

Pricing of drugs: Al tho u g h the g o v er nm ent ha s a nno u nc ed d r u g p r i c i ng w i l l b e g ea r ed to w a r d s a m a r k et- d r i v en p r i c i ng system, the benefits might be seen more in essential drugs p r o d u c ed b y l o c a l p ha r m a c eu ti c a l c o m p a ni es , w her e p r i c e c ei l i ng s p r ev i o u s l y s et b y the g o v er nm ent ha d c a p p ed profit margins and, in some cases, resulted in cessation of p r o d u c ti o n. F u r ther c ha ng es to the p r o v i nc i a l b i d d i ng s y s tem to m a k e i t m o r e tr a ns p a r ent a nd to p l a c e m o r e em p ha s i s o n the ther a p eu ti c ef f ec t o f the d r u g s , a s w el l a s i m p end i ng c entr a l i z ed p r o c u r em ent a nd neg o ti a ti o n f u nc ti o n f r o m ho s p i ta l s , w i l l hel p k eep d r u g p r i c es i n c hec k a nd c o u l d p u t p r es s u r e o n d r u g s w hi c h c u r r entl y enj o y p r i c e p r em i u m s .

Commercial model: Until recently, drug sales made up a p p r o x i m a tel y 4 0 % o f ho s p i ta l s ’ i nc o m e, a nd a l s o p r o v i d ed a significant source of income for doctors. One of the initiatives u nd er the hea l th c a r e r ef o r m s i s to a l ter thi s i nc enti v e s c hem e a nd to r ea c h a z er o d r u g s a l es m a r k u p b y ho s p i ta l s b y y ea r 2 0 1 5 . T hi s w o u l d r em o v e the p o w er o f p r es c r i p ti o n f r o m ho s p i ta l s a nd d o c to r s . Al o ng w i th i nv es ti g a ti o ns i nto s a l es p r a c ti c es o f p ha r m a c eu ti c a l c o m p a ni es b y the g o v er nm ent, thi s w o u l d a l s o w a r r a nt a c ha ng e i n the w a y p ha r m a c eu ti c a l c o m p a ni es eng a g e ho s p i ta l s a nd d o c to r s to m a r k et thei r d r u g s a nd to a d j u s t thei r c ha nnel o f p r o m o ti o n.

More competitive Chinese companies: T he C hi nes e g o v er nm ent ha s b een a d v o c a ti ng f o r b i g g er C hi nes e p ha r m a c eu ti c a l c o m p a ni es w hi c h a r e a b l e to p r o d u c e hi g her q u a l i ty p r o d u c ts , b y enc o u r a g i ng i nd u s tr y c o ns o l i d a ti o n i nv o l v i ng s ta te- o w ned c o m p a ni es , p r o v i d i ng f u nd i ng to l o c a l c o m p a ni es f o r i nno v a ti o n a nd a c c el er a ti ng the a p p r o v a l o f p r o d u c ts i nv o l v i ng l o c a l i ntel l ec tu a l p r o p er ty . As a r es u l t, C hi nes e p ha r m a c eu ti c a l c o m p a ni es w i l l i nc r ea s i ng l y c o m p ete i n the p a tented d r u g s s eg m ent ( c u r r entl y d o m i na ted b y MN C s ) , and also in the branded generics segment as MNCs find it increasingly difficult to support their high-cost sales practices w i th the er o s i o n to d r u g p r i c es .

Implications for pharmaceutical companies: Am i d s t the c ha ng es , p ha r m a c eu ti c a l c o m p a ni es w i l l need to r ethi nk thei r s tr a teg i es i n ter m s o f w ha t p r o d u c t s eg m ents a nd m a r k ets they need to f o c u s o n to l ev er a g e o n thei r ex i s ti ng s tr eng ths w hi l e c a p i ta l i z i ng o n m a r k et o p p o r tu ni ti es .

F o r MN C s , the c o m m er c i a l m o d el o f r el y i ng o n o f f - p a tent o r i g i na to r d r u g s b a s ed o n s a l es f o r c e r ea c h to ho s p i ta l s w i l l no t b e s u s ta i na b l e, g i v en p r i c e er o s i o n a nd em p ha s i s o n c o m p l i a nc e. T her e w i l l b e a need to ex p a nd the d i s tr i b u ti o n o f o f f - p a tent o r i g i na to r d r u g s to a b r o a d er m a r k et b ey o nd c i ty ho s p i ta l s i n v i ew o f the ex p a nd i ng s o c i a l i ns u r a nc e c o v er a g e, a s w el l a s to b o o s t s a l es f o r c e p r o d u c ti v i ty to p r o tec t m a r g i ns .

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S o u r c e: Ep s i c o m , EY Ana l y s i s

5 0 0

4 5 0

4 0 0

3 5 0

3 0 0

2 5 0

1 5 0

1 0 0

5 0

02 0 1 0 2 0 1 4 2 0 1 8

1 7 6 . 6

CAGR: 13.1% CAGR: 20%

2 5 5 . 6

4 4 1 . 7

China’ s medical device mark et siz e 2 0 1 1 - 2 0 1 7 ( R MB b illion)

I n a d d i ti o n, MN C s w i l l ha v e to a d o p t a m o r e a g g r es s i v e s hi f t to w a r d s p a tent d r u g s , g i v en the d em a nd f o r hi g her q u a l i ty m ed i c a l s er v i c es a nd d r u g s i n m a i nl a nd C hi na o r m o v e i nto the generics drugs business. However, it may be difficult for MN C s to v entu r e i nto b o th the i nno v a ti v e d r u g s o r g ener i c s d r u g s s eg m ent o n thei r o w n, a s the C hi nes e g o v er nm ent i s p u s hi ng to d ev el o p l o c a l p ha r m a c eu ti c a l s c o m p a ni es i n thes e tw o s eg m ents . T hi s w i l l d r i v e MN C s to s eek o u t p a r tner s hi p s w i th l o c a l p l a y er s , ei ther v i a a c q u i s i ti o ns o r thr o u g h s tr a teg i c a l l i a nc es , w hi c h c a n a l s o b e a n a v enu e to ex tend thei r s a l es r ea c h to the b r o a d er m a r k et.

F o r l o c a l p ha r m a c eu ti c a l c o m p a ni es , the d r i v e to r ed u c e d r u g p r i c es w i l l c r ea te eno r m o u s o p p o r tu ni ti es f o r g r o w th i n the g ener i c s d r u g s s eg m ent w hi c h l o c a l c o m p a ni es c u r r entl y d o m i na te. H o w ev er , thi s w i l l a l s o r es u l t i n m a r k et c o ns o l i d a ti o n v i a m er g er a nd a c q u i s i ti o ns a s the g o v er nm ent p u s hes f o r l o c a l p ha r m a c eu ti c a l c ha m p i o ns . I n a d d i ti o n, the d em a nd f o r hi g h end i nno v a ti v e p r o d u c ts w i l l p r o m p t l o c a l c o m p a ni es to s eek a c q u i s i ti o n o p p o r tu ni ti es o v er s ea s .

M e d ical d e v ice s

Ov er the p a s t 1 0 y ea r s , the C hi nes e m ed i c a l d ev i c e m a r k et ha s ex p er i enc ed r a p i d g r o w th, f u el l ed b y g o v er nm ent i nv es tm ent i n hea l th c a r e. T he C hi nes e m ed i c a l d ev i c e m a r k et w a s estimated to be RMB255.6 billion in 20145 a nd the f o u r th largest in the world, and projected to grow at a CAGR of 20% to b ec o m e the s ec o nd l a r g es t i n the w o r l d b y 2 0 1 7 .

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T he C hi nes e g o v er nm ent ha s r o l l ed o u t v a r i o u s m ea s u r es a i m ed a t r ed u c i ng c o s ts , a nd thes e i nc r ea s ed p r i c e p r es s u r e f o r m a r k et p l a y er s , p a r ti c u l a r l y MN C s w hi c h m a r k et hi g her -p r i c ed p r o d u c ts . S u c h m ea s u r es i nc l u d ed i nc r ea s i ng p r o v i nc i a l c entr a l i z ed tend er i ng f o r hi g h v a l u e m ed i c a l c o ns u m a b l es a nd p r i c e m a r k - u p r es tr i c ti o ns b y d i s tr i b u to r s .

W i th hi g her d em a nd f o r p r em i u m p r o d u c ts a nd s er v i c es d r i v en by an expanding middle class and affluent population, local p l a y er s a r e i nc r ea s i ng l y s hi f ti ng i nto the p r em i u m m a r k et, ei ther v i a s tr a teg i c a l l i a nc es o r thr o u g h o u tb o u nd a c q u i s i ti o ns . On the o ther ha nd , w i th p r i c i ng p r es s u r e i n the p r em i u m m a r k et a nd w i th g r o w th o p p o r tu ni ti es i n the m i d m a r k et s eg m ent b r o u g ht a b o u t b y hi g her i nv es tm ents b y the g o v er nm ent a nd u r b a ni z a ti o n, MN C s a r e i nc r ea s i ng thei r f o c u s o n the m i d m a r k et s eg m ent, i n s o m e c a s es v i a a c q u i s i ti o ns .

H ospitals

I n a d d i ti o n, the g o v er nm ent ha s o p ened u p the ho s p i ta l m a r k et f o r p r i v a te i nv es to r s to i nv es t i n p r ev i o u s l y s ta te- o w ned ho s p i ta l s a nd a l s o to a l l o w f o r ei g n i nv es tm ents i n s p ec i a l i s t o r p r em i u m ho s p i ta l s . T he g o v er nm ent r o l l ed o u t a p i l o t tes t i n Au g u s t 2 0 1 4 to a l l o w w ho l l y f o r ei g n- o w ned ho s p i ta l s to o p er a te i n s ev en c i ti es a nd p r o v i nc es i nc l u d i ng Bei j i ng , T i a nj i n, S ha ng ha i , J i a ng s u , G u a ng d o ng , H a i na n a nd F u j i a n. P r ev i o u s l y , f o r ei g n o w ner s hi p i n ho s p i ta l s ha d b een c a p p ed a t 7 0 % .

This has generated significant investment activities in this segment by private equity firms. During the last 12 months, ther e ha v e b een m o r e tha n 1 1 m a j o r m er g er s i n m a i nl a nd China, with the total deal value amounting to over US$1.6 b i l l i o n6 . At the s a m e ti m e, ther e ha s b een i nc r ea s i ng i nter es t b y C hi nes e c o m p a ni es i n i nv es ti ng i n ho s p i ta l s o v er s ea s .

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1 BMI China Pharmaceutical and Healthcare Report Q1 2015

2 T he Ec o no m i s t G r o u p

3 W o r k p l a n f o r c hr o ni c d i s ea s es i n C hi na ( 2 0 1 2 - 2 0 1 5 ) , N a ti o na l H ea l th a nd F a m i l y P l a nni ng C o m m i s s i o n

4 N a ti o na l Bu r ea u o f S ta ti s ti c s

5 “ 2 0 1 4 C hi nes e m ed i c a l d ev i c e m a r k et r ep o r t” , C hi na Pharmaceutical Resource Society, 10 March 2015

6 Mer g er m a r k et

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B ernard N g H ealthcare Transactions L eaderBer na r d ha s o v er 1 8 y ea r s o f p r o f es s i o na l s er v i c e ex p er i enc e, w i th o v er 1 1 y ea r s o f experience in cross-border M&A transactions i n As i a . H e s p ec i a l i z es i n p r o v i d i ng transaction support advice to clients in M&A a nd s tr a teg i c p a r tner s hi p s , i nc l u d i ng d u e d i l i g enc e, s a l e a nd p u r c ha s e a g r eem ent neg o ti a ti o n, r a ti o na l i z a ti o n o f tr a ns a c ti o n s tr u c tu r e a nd p o s t- d ea l s u p p o r t. Ber na r d ’ s k ey f o c u s i s i n the L i f e S c i enc e s ec to r a nd he ha s a d v i s ed a w i d e s p ec tr u m o f c l i ents including multinationals, PE firms and C hi nes e enter p r i s es .

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K enneth K F L ee Partner, H ealthcare TransactionsK enneth ha s nea r l y 2 0 y ea r s o f ex p er i enc e i n p r o v i d i ng tr a ns a c ti o n s er v i c es i n G r ea ter C hi na . H e s p ec i a l i z es i n m er g er s a nd a c q u i s i ti o ns , a nd a s s i s ts c l i ents f r o m d ea l o r i g i na ti o n thr o u g h i nteg r a ti o n. H e has extensive experience in financial due d i l i g enc e f o r a d i v er s e r a ng e o f i nd u s tr i es , w hi c h i nc l u d es l i f e s c i enc es ( p ha r m a , m ed i c a l d ev i c es , c o ns u m er hea l th c a r e a nd b i o - tec h) , a g r i c u l tu r a l a nd f o o d , c o ns u m er p r o d u c ts a nd f a s t m o v i ng c o ns u m er g o o d s , i nd u s tr i a l p r o d u c ts a nd o ther s .

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K evin J H W ang Partner, H ealthcare Commercial and O perationsK ev i n ha s m o r e tha n 1 3 y ea r s o f m a na g em ent c o ns u l ti ng a nd c o r p o r a te p er f o r m a nc e i m p r o v em ent ex p er i enc e i n mainland China and the US. He focuses o n s tr a teg y , c o r p o r a te p er f o r m a nc e i m p r o v em ent a nd r es tr u c tu r i ng a nd tu r na r o u nd m a na g em ent. Ba s ed i n Shanghai, Kevin has a specific focus on the l i f e s c i enc es , i nd u s tr i a l g o o d s a nd c o ns u m er g o o d s a nd r eta i l s ec to r s , w o r k i ng ex tens i v el y w i th m u l ti na ti o na l s , C hi nes e s ta te- o w ned a nd p r i v a te enter p r i s es .

A uthors 者

C onclu sion

As the C hi nes e hea l th c a r e m a r k et enter s a p er i o d o f c ha ng e, the u nc er ta i nti es a nd c ha l l eng es b r o u g ht a b o u t b y the c ha ng es a l s o p r es ent o p p o r tu ni ti es f o r p l a y er s i n the p ha r m a c eu ti c a l , m ed i c a l d ev i c e a nd ho s p i ta l s eg m ents . One o f the s tr a teg i es f o r m a r k et p l a y er s w i l l b e the f o r m a ti o n o f p a r tner s hi p s thr o u g h j o i nt- v entu r es o r a c q u i s i ti o ns to ex tend i nto new g r o w th m a r k ets o r to s tr eng then ex i s ti ng c o r e m a r k ets to o v er c o m e c ha l l eng es b r o u g ht o n b y the c ha ng es . Similar to the global healthcare market, where robust M&A a c ti v i ti es a r e ex p ec ted to c a r r y o n i ts m o m entu m f r o m 2 0 1 4 , the s tr a teg i c need to k eep p a c e w i th the d y na m i c l a nd s c a p e will drive healthcare M&A in China. EY

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风向

实施新收入确认准则：企业将面临挑战? 抑或是机遇?

The new revenue recognition standard: New challenges or opportunities for companies?

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In May 2014, the International Accounting Standards Board (IASB) and Federal Accounting Standards Board (FASB)

jointly issued a comprehensive new revenue recognition standard, IFRS 15 Revenue from Contracts with Customers, which will supersede nearly all the existing revenue recognition requirements under IFRS and US GAAP. Meanwhile, the Accounting Department of China’s Ministry of Finance has also said in its Work Highlights 2015 that they will continue with the revision of Chinese Accounting Standards for Business Enterprises (CAS) and carry this out using the Roadmap for Continuing Convergence of the CAS with the IFRS. This work includes the launching of amended revenue recognition standards based on the new standard, IFRS 15. The new revenue recognition standard will likely affect an entity’s financial statements, business processes and internal controls over its financial reporting. Without a doubt, this will bring significant changes to companies.

Recently, the EY Financial Accounting Ad v i s o r y S er v i c es hel d a s er i es o f f o r u m s i n Bei j i ng , S ha ng ha i , S henz hen a nd Hong Kong for over 200 senior financial ex ec u ti v es i n the tec hno l o g i c a l , m ed i a a nd tel ec o m i nd u s tr i es . T he f o r u m s f o c u s ed o n the i m p l em enta ti o n o f the new r ev enu e r ec o g ni ti o n s ta nd a r d b u t a l s o c o nd u c ted i nf o r m a ti v e r es ea r c h o n thi s s u b j ec t. T ho s e w ho w er e i nter v i ew ed g ener a l l y f el t tha t the c ha ng es i n s ta nd a r d s w i l l p o s e a c ha l l eng e to the current support provided for financial m a na g em ent b y the ex i s ti ng p o l i c i es a nd p r o c ed u r es , i nter na l c o ntr o l s , a nd i nf o r m a ti o n s y s tem s . T hi s i s c o ns i s tent with our on-field experience following the a nno u nc em ent o f the new s ta nd a r d – tha t the new r ev enu e r ec o g ni ti o n s ta nd a r d w i l l i m p a c t c o m p a ni es . W ha t i s w o r th p o i nti ng o u t i s tha t 7 8 % o f the i nter v i ew ed c o m p a ni es s ta ted tha t they w o u l d c o ns i d er u s i ng the i m p l em enta ti o n o f the new r ev enu e r ec o g ni ti o n s ta nd a r d a s a n o p p o r tu ni ty to r ev i ew a nd enha nc e the c o m p a ny ’ s c u r r ent b u s i nes s m o d el s ,

7 5

c o ntr a c t m a na g em ent a nd i nter na l c o ntr o l s , s o a s to a c hi ev e a m o r e efficient operation. It will be a significant u nd er ta k i ng to ef f ec ti v el y m a na g e s u c h a m a j o r c ha ng e a nd the i m p l em enta ti o n c ha l l eng es a r e no t to b e u nd er es ti m a ted . T he g r ea tes t c ha l l eng es a nd r es i s ta nc e a c o m p a ny m a y enc o u nter w i l l b e i n d a ta c o l l ec ti o n to s u p p o r t the new r ev enu e r ec o g ni ti o n r eq u i r em ents , m a na g i ng a nd c o m m u ni c a ti ng w i th s ta k eho l d er s , a nd o b ta i ni ng r es o u r c es f o r p u tti ng thi s new p r o j ec t i n p l a c e. Ad o p ti ng a p r o v en i m p l em enta ti o n m etho d w i l l b e a k ey s u c c es s f a c to r f o r a c o m p a ny to l ev er a g e thi s o p p o r tu ni ty o f c ha ng e.

D u e to the c o m p l ex i ty a nd w i d e- r a ng i ng ef f ec ts o f the new r ev enu e r ec o g ni ti o n s ta nd a r d , the F AS B a nd I AS B d ec i d ed o n 9 a nd 2 2 J u l y 2 0 1 5 , r es p ec ti v el y , to p o s tp o ne the ef f ec ti v e d a te o f the new s ta nd a r d f o r o ne y ea r 1 . T hi s p o s tp o nem ent w i l l g i v e c o m p a ni es a d d i ti o na l ti m e to c o ns i d er thei r i m p l em enta ti o n a p p r o a c h.

1 Under US GAAP, the standard will be effective for public entities for annual reporting p er i o d s b eg i nni ng a f ter 1 5 D ec em b er 2 0 1 7 a nd i nter i m p er i o d s ther ei n. N o np u b l i c enti ti es w i l l b e r eq u i r ed to a d o p t the s ta nd a r d f o r a nnu a l r ep o r ti ng p er i o d s b eg i nni ng a f ter 1 5 D ec em b er 2 0 1 8 , a nd i nter i m p er i o d s w i thi n a nnu a l r ep o r ti ng p er i o d s b eg i nni ng after 15 December 2019. Under IFRS, the standard will be effective for annual reporting p er i o d s b eg i nni ng o n o r a f ter 1 J a nu a r y 2 0 1 8 , w i th ea r l y a d o p ti o n p er m i tted .

OrganizationalImpacts

Training and communication

Controlenvironment

Tax accountingand methods

Sector issues

Project management

Investor relations

Employee incentives

Management information

Processes and systems

Sales and other commercial operations

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Control environment

I n l i g ht o f the i nc r ea s ed nu m b er o f es ti m a tes a nd

j u d g m ents r eq u i r ed to b e m a d e u nd er the new s ta nd a r d , c o m p a ni es need to r ev i ew thei r c u r r ent r ev enu e r el a ted p o l i c i es , p r o c es s es a nd the c o ntr o l env i r o nm ent i n o r d er to ens u r e c o m p l i a nc e. F o r ex a m p l e, a n enti ty ’ s p a s t business practices may influence i ts d eter m i na ti o n o f w hen a n arrangement meets the definition o f a c o ntr a c t w i th a c u s to m er . An enti ty tha t ha s a n es ta b l i s hed p r a c ti c e o f s ta ti ng p er f o r m a nc e b a s ed o n v er b a l a g r eem ents w i th i ts c u s to m er s m a y d eter m i ne tha t s u c h v er b a l a g r eem ents m eet the definition of a contract. Companies s ho u l d d es i g n the r el a ted c o ntr o l s to ens u r e the c o m p l etenes s o f the c o ntr a c t p o p u l a ti o n.

T o i l l u s tr a te thi s i n a no ther w a y , u nd er the new r ev enu e r ec o g ni ti o n standard, depending on specific f a c ts a nd c i r c u m s ta nc es , s o m e contract modifications can be tr ea ted a s s ep a r a te s ta nd - a l o ne c o ntr a c ts , w hi l e o ther s c a n b e c o m b i ned w i th the o r i g i na l c o ntr a c t. I f the tr ea tm ent i s to c o m b i ne i t w i th the o r i g i na l c o ntr a c t, thi s m a y r es u l t i n a d ec r ea s e i n r ev enu e i n the c u r r ent p er i o d f o r i nc o m e a l r ea d y r ec o g ni z ed i n the p r i o r a c c o u nti ng p er i o d s . T hu s , the income target for the current fiscal y ea r m a y b e d i r ec tl y i m p a c ted . T o a v o i d o r r ed u c e s u c h o c c u r r enc es ,

Investor relations

I nv es to r r el a ti o ns a r e i m p o r ta nt a nd i t i s v i ta l a

c o m p a ny c o m m u ni c a tes c l ea r l y a nd ti m el y to the ex ter na l w o r l d the i m p a c t the new r ev enu e r ec o g ni ti o n s ta nd a r d has on its financial statements. This is es p ec i a l l y s o w hen i ts r ev enu e p a tter n i s a l ter ed b y the new s ta nd a r d .

F o r ex a m p l e, m ed i a a nd enter ta i nm ent c o m p a ni es tha t enter i nto l i c ens i ng a r r a ng em ents w i l l ha v e to c a r ef u l l y ev a l u a te w hether w ha t they a r e p r o v i d i ng to the c u s to m er i s the r i g ht to u s e o r the r i g ht to a c c es s a n I P ( e. g . l i c ens e) . I f i t i s d eter m i ned tha t the c o m p a ni es ha v e p r o v i d ed a r i g ht- to -u s e, then r ev enu e w o u l d ha v e to b e r ec o g ni z ed i n f u l l w hen the r i g ht- to - u s e ha s b een g r a nted a nd thi s w i l l r es u l t i n a hi g hl y v o l a ti l e r ev enu e p a tter n. T hi s i s i n c o ntr a s t to the c u r r ent a c c o u nti ng standard which recognizes a stable flow o f r ev enu e o v er the p er i o d i n w hi c h the c o m p a ni es ha v e p r o v i d ed the c u s to m er the r i g ht to u s e the I P .

Information systems

T he new r ev enu e r ec o g ni ti o n s ta nd a r d

r eq u i r es s tr o ng s u p p o r t f r o m i nf o r m a ti o n s y s tem s , i nc l u d i ng c o ntr a c t c ha ng e m a na g em ent, m a i nta i ni ng s ta nd - a l o ne s el l i ng p r i c es a nd r ev enu e r ec o g ni ti o n f o l l o w i ng the c o m p l eti o n o f p er f o r m a nc e o b l i g a ti o ns . I n a d d i ti o n, i nf o r m a ti o n s y s tem s c a n u ni f o r m l y p r o c es s tr a ns a c ti o ns , w hi c h r ed u c es

By referencing our recent examples, we have identified three areas of major impact on companies and summarized them f o r r ef er enc e.

1

2

3

the c o m p a ny m a y need to enha nc e i ts ex i s ti ng c o ntr a c t m a na g em ent s y s tem a nd ti g hten i ts c o ntr o l o v er c o ntr a c t modification.

T he r ev i ew a nd enha nc em ent o f the r el a ted p r o c es s es a nd c o ntr o l s r eq u i r ed b y the new r ev enu e r ec o g ni ti o n s ta nd a r d g i v e c o m p a ni es a n o p p o r tu ni ty to o p ti m i z e thei r ex i s ti ng b u s i nes s p r a c ti c es a nd i d enti f y c o ntr o l s tha t a r e no l o ng er s u i ta b l e o r r ep eti ti v e, ther eb y i nc r ea s i ng operating efficiency.

I n a no ther ex a m p l e, u nd er m o s t a r r a ng em ents , the m o b i l e p ho ne p r o v i d ed i n a m o b i l e c o m m u ni c a ti o n s er v i c e c o ntr a c t b u nd l ed w i th m o b i l e p ho ne s a l es s ho u l d b e tr ea ted a s a n i nd ep end ent p er f o r m a nc e o b l i g a ti o n. T her ef o r e, c o ntr a r y to the c o m m o n p r a c ti c e u nd er the c u r r ent s ta nd a r d s , o p er a to r s no w need to r ec o g ni z e a p o r ti o n o f the c o ntr a c ted r ev enu e ea r l i er , tha t i s , o p er a to r s w i l l r ec o g ni z e the r ev enu e c o r r es p o nd i ng to the p er f o r m a nc e o b l i g a ti o n a t the ti m e w hen they p r o v i d ed the m o b i l e p ho ne to thei r c u s to m er s ( u s u a l l y w hen a s er v i c e c o ntr a c t b eg i ns ) .

T ho s e r es p o ns i b l e f o r i nv es to r r el a ti o ns w i l l need to u nd er s ta nd the s ta nd a r d a nd b e a b l e to a r ti c u l a te the c ha ng es i n a c o m p a ny ’ s r ev enu e r es u l ti ng f r o m the implementation of IFRS 15. In addition, b o th the p l a nni ng a nd i nv es to r r el a ti o ns f u nc ti o ns need to b eg i n f o c u s i ng o n f o r ec a s ti ng u nd er the s ta nd a r d to a c c u r a tel y c o m m u ni c a te w i th k ey s ta k eho l d er s w ha t the ex p ec ted k ey p er f o r m a nc e i nd i c a to r s a r e.

7 7

the r i s k o f c l er i c a l er r o r a s s o c i a ted w i thi n m a nu a l p r o c es s i ng .

T o i l l u s tr a te w i th a n ex a m p l e, i n the five-step model, a company needs to a l l o c a te the c o ntr a c t p r i c e to the c o r r es p o nd i ng p er f o r m a nc e o b l i g a ti o ns ; the s ta nd - a l o ne s el l i ng p r i c e, ther ef o r e, w i l l i m p a c t d i r ec tl y the r ev enu e r ec o g ni z ed b y the c o m p a ny d u r i ng a c er ta i n p er i o d o f ti m e. As a r es u l t, the c o m p a ny need s to ta k e i nto c o ns i d er a ti o n a l l the i nf o r m a ti o n tha t i t c a n r ea s o na b l y o b ta i n i n o r d er to a r r i v e a t a s ta nd - a l o ne s el l i ng p r i c e f o r i ts p er f o r m a nc e o b l i g a ti o ns . T hi s r eq u i r es the c o m p a ny to b u i l d a d a ta b a s e i n i ts i nf o r m a ti o n s y s tem to m a na g e s ta nd - a l o ne s el l i ng p r i c es a nd to r eg u l a r l y u p d a te p r i c e d a ta . Mea nw hi l e, b a s ed o n hi s to r i c a l s el l i ng p r i c e d a ta , the i nf o r m a ti o n s y s tem c a n a s s i s t the c o m p a ny w i th the a s s es s m ent o f the s ta nd - a l o ne s el l i ng p r i c es f o r d i f f er ent ty p es o f c u s to m er s i n d i f f er ent r eg i o ns , a nd g i v e the c o m p a ny f o r ew a r ni ng w hen price fluctuations exceed a certain r a ng e. T hi s w i l l i m p r o v e p r i c i ng a c c u r a c y f o r the c o m p a ny a nd c o u l d also increase its profitability.

T o a c hi ev e thi s o b j ec ti v e, a c o m p a ny g ener a l l y need s to c u s to m i z e i ts ex i s ti ng i nf o r m a ti o n s y s tem . T hi s i s to ens u r e the u nd er l y i ng l o g i c i s c o ns i s tent w i th the new s ta nd a r d . T he i nf o r m a ti o n s y s tem s ho u l d a l s o s a ti s f y the d i s c l o s u r e r eq u i r em ents o f the new s ta nd a r d to ens u r e d a ta a v a i l a b i l i ty .

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Immediate actions to b e tak en

Ad o p ti ng the new s ta nd a r d f o r the m ea s u r em ent a nd r ec o g ni ti o n o f r ev enu e m a y s eem d a u nti ng . H o w ev er , i t c a n useful if a comprehensive methodology, such as EY’s five-p ha s e m o d el a s i l l u s tr a ted , i s a p p l i ed w hen i m p l em enti ng the c ha ng e. D o i ng s o w i l l hel p y o u to a d o p t the s ta nd a r d i n a n organized and efficient manner, and in a way that reduces risk a nd the p o s s i b i l i ty o f c o s tl y er r o r s a nd d el a y s .

Undeniably, applying the new revenue recognition standard w i l l b e a c ha l l eng e f o r c o m p a ni es . On the o ther ha nd , i t i s a g r ea t o p p o r tu ni ty f o r c o m p a ni es to i nc r ea s e o p er a ti ng efficiency by reviewing their existing revenue models, c o ntr a c t m a na g em ent, p r i c i ng a nd d i s c o u nt m o d el s . As l o ng a s c o m p a ni es c a n p l a n a nd a c t ea r l y , they s ho u l d b e a b l e to a c hi ev e a s u c c es s f u l a nd s ea m l es s tr a ns i ti o n.

C o m p a ni es s ho u l d c o ns i d er the f o l l o w i ng a c ti o ns no w :

• Understand the magnitude of the changes to your entity from both financial statement and business perspectives

• Es ta b l i s h a p r o j ec t m a na g em ent tea m a nd p r o j ec t p l a n f o r the a d o p ti o n o f the s ta nd a r d

• D eter m i ne the tr a ns i ti o n m etho d to u s e w hen i m p l em enti ng the s ta nd a r d

• D eter m i ne the tr a i ni ng r eq u i r em ents f o r the i nd i v i d u a l s r es p o ns i b l e f o r the k ey j u d g m ents a nd es ti m a tes

• I d enti f y the k ey r ev enu e s tr ea m s , c o m m o n tr a ns a c ti o ns a nd p o tenti a l i m p l em enta ti o n i s s u es

• Es ta b l i s h a p r o c es s f o r g a ther i ng the nec es s a r y d a ta

• Understand how others in your sector are implementing the s ta nd a r d EY

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D iagnostic

Identification of a c c o u nti ng , r ep o r ti ng a nd ta x d i f f er enc es a nd c o ns eq u enc es o n b u s i nes s p r o c es s es a nd I T s y s tem s

S et u p p r o j ec t i nf r a s tr u c tu r e a nd m a na g em ent, i nc l u d i ng r o a d m a p a nd c ha ng e m a na g em ent s tr a teg y

I d enti f y s o l u ti o ns , p r ep a r e i m p l em enta ti o n p l a n a nd d ev el o p s o l u ti o ns a c r o s s w o r k s tr ea m s

Ad d r es s d ef er r ed i tem s a nd tr a ns i ti o n to o p er a ti o na l m o d el

Ap p r o v a l a nd r o l l o u t o f s o l u ti o ns a c r o s s w o r k s tr ea m s

D esign and planning Solution development Implementation Post Implementation

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务 务 管

务 和

行业

业

务 管理 管 理

资

L aw rence L au Partner G reater China L eader, F inancial A ccounting A dvisory ServicesL a w r enc e ha s o v er 2 0 y ea r s o f ex p er i enc e i n s er v i ng c l i ents a c r o s s v a r i o u s i nd u s tr i es in mainland China and the Hong Kong SAR. H e i s l ea d i ng a tea m to a s s i s t d o m es ti c enter p r i s es a nd MN C s i n G r ea ter C hi na to a c hi ev e b es t- i n- c l a s s a c c o u nti ng a nd r ep o r ti ng , a nd m eet r eg u l a to r y , g o v er na nc e and financing-related needs.

务 务 管

和 业 务

务

业 资

务 工

Maggie Sun Partner China N orth L eader, F inancial A ccounting A dvisory ServicesMa g g i e ha s ex tens i v e ex p er i enc e s er v i ng m u l ti na ti o na l a nd d o m es ti c c o m p a ni es w i th financial accounting advisory. She is also serving China based US and other overseas i ni ti a l p u b l i c o f f er i ng c o m p a ni es . S he ha s o v er 1 0 y ea r s o f to ta l b u s i nes s ex p er i enc e i n N ew Y o r k C i ty .

务 务 理

务

和 务

务 通 控

制 业 资

A aron L au Senior Manager F inancial A ccounting A dvisory ServicesAa r o n ha s o v er ei g ht y ea r s o f o v er s ea s a nd l o c a l a d v i s o r y a nd a u d i t ex p er i enc e. He is familiar with IFRS, HK FRS, US G AAP a nd S a r b a nes - Ox l ey i nter na l c o ntr o l requirements. He is also experienced in US i ni ti a l p u b l i c o f f er i ng s f o r C hi nes e c o m p a ni es .

A uthors 者

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中国汽车行业政策 法规重大调整简介

An outline of the significant policy and regulatory adjustments in China’s auto industry

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Mainland China has been the world’s top auto-making and sales

market for six straight years. The market potential and prospects for development have caught the world’s attention; however, China’s auto industry is currently in a period of rapid adjustment and development. This article outlines some of the significant adjustments in the policy and regulatory environment of China’s auto industry from the second half of 2014.

C onstraints on f ore ign inv e stors in comple te v e h icle manu f actu ring

I n the new v er s i o n o f the G u i d a nc e C a ta l o g u e o f I nd u s tr i es f o r F o r ei g n I nv es tm ent, p r o m u l g a ted o n 1 0 Ap r i l 2015, “Complete Vehicle, Special-purpose Vehicle, and Motorcycle Ma nu f a c tu r i ng ” i s p l a c ed i n the restricted catalogue for the first time, a nd the C hi nes e s i d e i s r eq u i r ed to ha v e a t l ea s t a 5 0 % s ha r eho l d i ng . I n the 2 0 0 7 r ev i s ed C a ta l o g u e, f o r ei g n- i nv es ted c o m p l ete v ehi c l e m a nu f a c tu r i ng ( the r a ti o o f f o r ei g n i nv es tm ent w a s a m a x i m u m o f 5 0 % ) i s c a teg o r i z ed a s a n i tem u nd er enc o u r a g em ent. I n the 2 0 1 1 r ev i s ed C a ta l o g u e, f o r ei g n- i nv es ted c o m p l ete v ehi c l e m a nu f a c tu r i ng w a s d el eted f r o m the c a teg o r y o f i tem s

u nd er enc o u r a g em ent. S u c h a c ha ng e i nd i c a tes tha t i n 2 0 0 7 the S ta te w a s s ti l l enc o u r a g i ng a u to m a nu f a c tu r er s to f o r m j o i nt v entu r es w i th f o r ei g n i nv es to r s , b u t i n 2 0 1 1 the p o s i ti o n o f the S ta te w a s neu tr a l ; no w , ho w ev er , the a tti tu d e o f the S ta te i s o ne o f s tr i c t r es tr i c ti o ns .

Bullish outlook for new-energy cars

T he c o r r es p o nd i ng S ta te p o l i c y s u b s i d i es a nd the u nv ei l i ng o f l o c a l p o l i c i es ha v e p r o v i d ed b etter c o nd i ti o ns f o r l a u nc hi ng new - ener g y c a r s . Bei j i ng , S ha ng ha i , T i a nj i n, S henz hen, W u ha n, X i a n a nd o ther p l a c es ha v e a l l u nv ei l ed p o l i c i es to p r o m o te new - ener g y v ehi c l es .

8 3

the v ehi c l e p u r c ha s e ta x b etw een 1 S ep tem b er 2 0 1 4 a nd 3 1 D ec em b er 2 0 1 7 . On 2 2 Ap r i l 2 0 1 5 , the Mi ni s tr y o f F i na nc e a nd thr ee o ther g o v er nm ent b o d i es i s s u ed j o i ntl y the “ N o ti c e o n F i na nc i a l S u p p o r t P o l i c i es f o r the Promotion of Use of New-energy Cars in 2016 to 2020”, which confirmed the c o nti nu a ti o n o f the s u b s i d y p o l i c y f o r the p r o m o ti o n o f new - ener g y c a r s b etw een 2 0 1 6 a nd 2 0 2 0 . On 2 J u ne 2 0 1 5 , the N a ti o na l D ev el o p m ent a nd Reform Commission and the Ministry of I nd u s tr y a nd I nf o r m a ti o n T ec hno l o g y issued jointly the “Administrative Rules f o r N ew l y Es ta b l i s hed Enter p r i s es T ha t Ma nu f a c tu r e P u r el y El ec tr i c i ty -powered Passenger Vehicles”, which c a m e i nto ef f ec t o n 1 0 J u l y 2 0 1 5 .

Under this rule, the total investment and p r o d u c ti o n s c a l e o f the r el ev a nt new l y es ta b l i s hed enter p r i s es a r e no t s u b j ec t to the m i ni m u m r eq u i r em ents o f the “ Au to I nd u s tr y D ev el o p m ent P o l i c y ” ; thes e enter p r i s es , ho w ev er , m u s t no t m a k e v ehi c l es p o w er ed b y i nter na l c o m b u s ti o n eng i nes .

A comple te re v amp of th e au to d istrib u tion sy ste m

On 3 1 J u l y 2 0 1 4 , the S ta te Ad m i ni s tr a ti o n o f I nd u s tr y a nd C o m m er c e i s s u ed the “ Anno u nc em ent on Ceasing the Work of Record-filing for General Auto Dealerships a nd Au tho r i z ed D ea l er s hi p s b y Au to Br a nd s . ” P u r s u a nt to the

Ap a r t f r o m s u b s i d i es f o r v ehi c l e p u r c ha s e ex p ens es a nd c o nc es s i o ns i n l i c ens i ng a nd tr a v el r es tr i c ti o ns , l o c a l g o v er nm ents ha v e p r o v i d ed , to v a r i o u s ex tents , p o l i c y c o nc es s i o ns a nd s u p p o r t i n a r ea s s u c h a s c ha r g i ng f a c i l i ti es a nd r el a ted c o ns tr u c ti o n, d es i g n a nd c a r p a r k i ng p l a nni ng i n new to w ns , a nd traffic and transport fees.

On 5 Au g u s t 2 0 1 4 , the Mi ni s tr y o f F i na nc e, the S ta te Ad m i ni s tr a ti o n o f T a x a ti o n a nd the Mi ni s tr y o f I nd u s tr y and Information Technology officially i s s u ed the “ Anno u nc em ent to W a i v e Vehicle Purchase Tax on New-energy C a r s ” . Ac c o r d i ng to the a nno u nc em ent, three kinds of vehicles (all qualified as new - ener g y c a r s ) w er e ex em p t f r o m

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事务

投资

业务 业

务

L i X ing Partner, Chen & Co. L aw F irmL i X i ng s p ec i a l i z es i n a nti - m o no p o l y l a w , f o r ei g n i nv es tm ent a nd c o r p o r a te l eg a l s er v i c es . S he ha s p r o v i d ed l eg a l s er v i c es f o r m a ny w el l - k no w n a u to m o b i l e c o m p a ni es .

A uthors 者

a nno u nc em ent, a s o f 1 Oc to b er 2 0 1 4 , the practice of record filing for general a u to d ea l er s hi p s a nd a u tho r i z ed d ea l er s hi p s b y a u to b r a nd s s to p p ed . T hi s r eg u l a ti o n w a s to p r o v i d e p o l i c y s u p p o r t f o r d ea l er s o f p a r a l l el a u to i m p o r ts to eng a g e i n o p er a ti o ns l eg a l l y a nd f a i r l y .

I n a d d i ti o n, ther e ha s b een w o r d tha t the Mi ni s tr y o f C o m m er c e i s s eek i ng o p i ni o ns f r o m p a r ti es a nd s ec to r s o n r ev i s i ng the c u r r ent “ I m p l em enta ti o n Metho d s f o r Ma na g i ng Au to Br a nd S a l es ” , the o b j ec ti v e b ei ng to c ha ng e the c u r r ent d ea l er s hi p s y s tem o f a u to b r a nd s i n m a i nl a nd C hi na . T he new r eg u l a ti o n w i l l a l l o w d ea l er s to d ea l i n v a r i o u s b r a nd s .

E normou s opportu nitie s f or paralle l importe rs

T o w a r d the end o f Au g u s t 2 0 1 4 , the S ha ng ha i Mu ni c i p a l G o v er nm ent released on its official website the “ K ey T a s k P l a nni ng f o r D ev el o p i ng the S ha ng ha i I nter na ti o na l T r a d e C enter 2 0 1 4 - 1 5 ” . I t p u t f o r w a r d a p i l o t p o l i c y o f enc o u r a g i ng the C hi na ( S ha ng ha i ) P i l o t F r ee T r a d e Z o ne to ex p er i m ent w i th i nteg r a ted d i s p l a y a nd tr a d i ng p l a tf o r m s a nd r ep a i r c enter s f o r d i s p l a y i ng a nd ex p er i enc i ng “ p a r a l l el i m p o r ted c a r s . ”

On 6 N o v em b er 2 0 1 4 , the S ta te C o u nc i l u nv ei l ed the “ S ta te C o u nc i l G ener a l Office Opinions on Strengthening

I m p o r ts ” , w hi c h m a k es i t c l ea r tha t i m p o r t m a na g em ent s ho u l d b e f u r ther o p ti m i z ed , i nc l u d i ng r ev i s i ng the r el ev a nt r eg u l a ti o ns o n a u to b r a nd s a l es a nd a l l o w i ng the C hi na ( S ha ng ha i ) Pilot Free Trade Zone to be the first o ne to s ta r t a p i l o t p a r a l l el a u to i m p o r t p r o g r a m .

On 7 J a nu a r y 2 0 1 5 , the S ha ng ha i Mu ni c i p a l C o m m i s s i o n o f C o m m er c e, the Ma na g em ent C o m m i ttee o f the F r ee T r a d e Z o ne, the S ha ng ha i C u s to m s Au tho r i ti es , the S ha ng ha i I ns p ec ti o n a nd Q u a r a nti ne Bu r ea u a nd the S ha ng ha i Ad m i ni s tr a ti o n f o r I nd u s tr y a nd C o m m er c e i s s u ed j o i ntl y the “ N o ti c e f o r the C hi na ( S ha ng ha i ) P i l o t F r ee T r a d e Z o ne to L a u nc h the P i l o t P a r a l l el Au to I m p o r t P r o g r a m ” . T he no ti c e s p el l s o u t the c o nd i ti o ns a nd p r o c ed u r es f o r a p p l i c a nt enter p r i s es f o r s u c h a p r o g r a m . T he u s e o f the F r ee T r a d e Z o ne w i l l r em o v e the l eg a l g r ey a r ea s i n the s a l e o f p a r a l l el - i m p o r ted c a r s a nd f u l l y l eg a l i z e i t.

A stand ard - b ase d d e v e lopme nt of th e au to re pair ind u stry

On 1 7 F eb r u a r y 2 0 1 5 , the Mi ni s tr y o f T r a ns p o r t i s s u ed the “ Ad m i ni s tr a ti v e Metho d s f o r Op en I nf o r m a ti o n o n Auto Repair Technologies (Draft for C o m m ents ) ” to s eek f o r p u b l i c o p i ni o ns . T he D r a f t c o m p r ehens i v el y l a y s d o w n r eg u l a ti o ns tha t i m p o s e a n o b l i g a ti o n o n a u to - m a k er s to s ha r e thei r a u to r ep a i r tec hno l o g i es . I f i m p l em ented , i t w i l l

have a significant impact on the reform a nd d ev el o p m ent o f the a u to m a ti v e a f ter m a r k et.

On 2 6 Au g u s t 2 0 1 5 , the Mi ni s tr y o f T r a ns p o r t p u b l i s hed the “ D ec i s i o n o n Revising the (Administrative Rules on Automotive Vehicle Repair)”, which was i m p l em ented o n 8 Au g u s t 2 0 1 5 . T he r u l es m a nd a te tha t the d es i g na ti o n o f 4 S s er v i c e s ho p s f o r m a i ntena nc e a nd the r ep l a c em ent p o l i c y o f o nl y u s i ng o r i g i na l m a nu f a c tu r er p a r ts a r e no w d eem ed i r r eg u l a r i ti es . T hi s c ha ng e m a y have a significant impact on auto 4S s ho p s a nd m a y ha v e a k no c k - o n ef f ec t o n the a u to r ep a i r i nd u s tr y . EY

8 5业

The b etter the q uestion. The b etter the answ er. The b etter the w orld w ork s.

业将 ?

W h e n cars d riv e th e mse lv e s, w h at w ill b e th e impact on insu rance ?

务

业务

EY’s global financial services team tackles the big complex issues to help transform your b usiness.

ey.com/financial #BetterQuestions

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浅谈台湾 文化创意产业A brief note on cultural and creative industries in Taiwan

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8 8

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H o w ev er , the r ea l i ty i s tha t T a i w a n’ s c u l tu r a l a nd c r ea ti v e i nd u s tr i es s ti l l f a c e v a r i o u s s tr u c tu r a l i s s u es . T hes e i s s u es i nc l u d e the c u r r ent a nd f a r - f r o m - p er f ec t m ec ha ni s m s f o r d ev el o p m ent a nd then need to es ta b l i s h s u p p o r ti ng l a w s a nd regulations. The existing financing and a s s es s m ent s y s tem s a r e a l s o f a r f r o m sufficient, and these industries find i t ha r d to o b ta i n d ev el o p m ent f u nd s . T her e i s s ti l l r o o m f o r g r o w th i n the d o m es ti c a nd i nter na ti o na l m a r k ets , b u t the i nd u s tr i es s u f f er f r o m a l a c k o f b a s i c r es ea r c h. T her e a r e s ti l l g a p s i n the d ev el o p m ent m ec ha ni s m s a nd industry chain waiting to be filled or a r ea s w a i ti ng to b e i m p r o v ed . I nd u s tr y need s to b e m a d e m o r e c u l tu r ed a nd c r ea ti v e, a nd c u l tu r e a nd c r ea ti o n need to b e i nd u s tr i a l i z ed – ther e i s a need to s tr eng then the p r o c es s ei ther w a y . T hi s es s a y a p p r o a c hes the i s s u e from a specific angle – it looks at and i ntr o d u c es r ea d er s to f u nd r a i s i ng a nd the p r o m o ti o n o f r el ev a nt l a w s a nd r eg u l a ti o ns .

Creativity backed by finance

W hen a s s es s i ng the c r ea ti v e v a l u e o f an industry, banks often find it hard to m a k e c r ed i t r a ti ng a s s es s m ents b ec a u s e i t i s no t ea s y to r a te a nd ev a l u a te “ c r ea ti v i ty ” . Mo s t c o m p a ni es d o no t

have fixed assets that can be used a s c o l l a ter a l ; a nd i t i s ha r d to m a k e a r ea s o na b l e ev a l u a ti o n o n the c r ea ted “ i nta ng i b l e a s s ets ” . I f a c o m p a ny i s no t backed by specific financial data or s u i ta b l e c r ed i t- enha nc i ng m ec ha ni s m s ( s u c h a s g u a r a ntees p r o v i d ed b y personnel or assets), it may find it difficult to raise funding. Moreover, most c o m p a ni es i n T a i w a n’ s c r ea ti v e i nd u s tr y a r e m i c r o - c r ea to r s o r s m a l l - to m ed i u m -s i z ed enter p r i s es a nd they o f ten ha v e a r el a ti v el y u r g ent need to a c c es s financing.

T o a s s i s t w i th the d ev el o p m ent o f the c u l tu r a l a nd c r ea ti v e i nd u s tr i es i nto b ei ng T a i w a n’ s nex t el ec tr o ni c s i nd u s tr y , the g o v er nm ent ha s u nv ei l ed the C r ea ti v e I nd u s tr y S p ec i a l F i na nc i a l S u p p o r t P r o j ec t i n the ho p e tha t the abundant capital in the financial m a r k ets c a n nu r tu r e thes e i nd u s tr i es . I n a c c o r d a nc e w i th C l a u s e 1 9 o f the L a w o n the D ev el o p m ent o f C u l tu r a l a nd C r ea ti v e I nd u s tr i es , c o ns i d er a b l e a c hi ev em ents ha v e b een m a d e i n building financing and credit guarantee m ec ha ni s m s to hel p c u l tu r a l a nd c r ea ti v e p r o j ec ts o b ta i n l o a ns a t c o nc es s i o na r y ter m s .

T hen ther e a r e the F u nd - r a i s i ng P l a tf o r m f o r C r ea ti v e Enter p r i s es a nd the S p ec i a l C r ea ti v e F i na nc i ng

Currently, the cultural and creative industries are a key focus of the

economic development of many economies around the world. However, if the Taiwanese government also wants to promote these industries, it should first learn from these economies and consider their experience when drafting laws, policies, and the principles and practices to be adopted in Taiwan. On that basis, the government will then be able to formulate a set of policies that contribute to the development of the cultural and creative industries.

8 9

Conclusion

S i nc e T a i w a n’ s d o m es ti c m a r k et i s no t l a r g e, to enj o y a n ec o no m y o f s c a l e a nd to ex p a nd thes e i nd u s tr i es m u s t ex p o r t thei r p r o d u c t. T her ef o r e, i n a d d i ti o n to the m a k i ng o f s p ec i a l c u l tu r a l l a w s a nd the a d m i ni s tr a ti v e ef f o r ts o f the r el a ted a u tho r i ti es , the i nd u s tr i es need to i nc r ea s e thei r o w n m a r k eti ng ef f o r ts . T he l i s ti ng a nd tr a d i ng o f H i M Mu s i c a nd the P i l i I nter na ti o na l Mu l ti m ed i a o n the T a i p ei Ex c ha ng e w a s a m i l es to ne i n the d ev el o p m ent o f the c u l tu r a l a nd c r ea ti v e i nd u s tr i es i n T a i w a n. T he p o tenti a l f o r g r o w th o f thes e i nd u s tr i es i s a ttr a c ti ng the a ttenti o n o f a w i d e r a ng e o f s ec to r s a nd b u s i nes s es . W hen T a i w a n has a significant number of flagship c u l tu r a l a nd c r ea ti v e enter p r i s es w i th commercial elements and sufficient o p er a ti ng s c a l e, thi s w i l l s i g ni f y the c u l tu r a l a nd c r ea ti v e i nd u s tr i es a r e i n the p r o c es s o f ta k i ng o f f .

I nf o r m a ti o n D i s c l o s u r e Z o ne, w hi c h w er e l a u nc hed a nd w ent l i v e i n Au g u s t 2 0 1 3 a nd J a nu a r y 2 0 1 4 r es p ec ti v el y . At p r es ent, 1 2 c u l tu r a l a nd c r ea ti v e c o m p a ni es , i nc l u d i ng C hi - S hi h I nter na ti o na l Enter ta i nm ent, C hi c hi n Ar t C er a m i c s C o m p a ny , a nd ARCH88 Technology, have been listed f o r f u nd r a i s i ng . T he P l a tf o r m a nd the Z o ne w i l l ex p a nd the f u nd - r a i s i ng c ha nnel s f o r c r ea ti v e i nd u s tr i es a nd s o o p p o r tu ni ti es f o r m i c r o - to m ed i u m -s i z ed c o m p a ni es to g et f u nd i ng w i l l increase significantly. Also, in January 2014, the Platform Center reclassified i nto “ c u l tu r a l a nd c r ea ti v e s to c k s ” 1 8 kinds of stock previously classified as el ec tr o ni c , i nf o r m a ti o n s er v i c e, tr a d e o r d ep a r tm ent s to r es . T he P l a tf o r m f o r Em er g i ng S to c k s ha s a l s o o p ened a new C u l tu r a l a nd C r ea ti v e C a teg o r y i n the ho p e tha t the c l u s ter i ng ef f ec ts o f ni c he enter p r i s es a nd i nd u s tr i es m a y a ttr a c t i nv es to r s .

The mak ing and preparation of limited partnership law

T r a d i ti o na l c o m p a ni es a r e d es i g ned f o r s u s ta i na b l e o p er a ti o ns . T he r es p o ns i b i l i ty o f the c o m p a ny o p er a to r s is critical. However, they lack flexibility i n c o m p a ny f o r m a ti o n, o p er a ti o ns a nd s ha r eho l d er s ’ r i g hts a nd d u ti es ; a nd they have difficulties answering to the need s o f c u l tu r a l o r c r ea ti v e w o r k er s . T he L i m i ted P a r tner s hi p L a w c a ter s m a i nl y to p u r e i nv es to r s o n the o ne ha nd , a nd c r ea ti v e a nd tec hno l o g i c a l brain workers on the other. Under thi s l a w , ther e c a n b e a c o m m er c i a l organizational structure more flexible tha n tha t o f c o nv enti o na l c o m p a ni es .

The Limited Partnership Law defines a partnership as a profit-making i nc o r p o r a ted p er s o n w hi c h c o ns i s ts o f m o r e tha n o ne “ c o m m o n p a r tner ” w ho i s r eq u i r ed to b ea r j o i nt r es p o ns i b i l i ty f o r the d eb ts o f the l i m i ted p a r tner s hi p , a nd m o r e tha n o ne “ l i m i ted p a r tner ” w ho s e

r es p o ns i b i l i ty to the l i m i ted p a r tner s hi p i s l i m i ted to the c a p i ta l he o r s he c o ntr i b u tes . T he c o m m o n p a r tner i s the a c tu a l o p er a to r a s w el l a s the f a c e o f the l i m i ted p a r tner s hi p to the o u ts i d e w o r l d . T he l i m i ted p a r tner i s , i n p r i nc i p l e, a p u r e i nv es to r a nd d o es no t p a r ti c i p a te i n o p er a ti o ns . N o r c a n he o r s he r ep r es ent the p a r tner s hi p to the o u ts i d e w o r l d . F o r m o s t o f the o p er a ti o n o f a l i m i ted p a r tner s hi p , p a r tner s a r e f r ee to s ti p u l a te the r i g hts a nd o b l i g a ti o ns b etw een them i n the f o r m o f c o ntr a c ts w hi c h c a r r y the s a m e s ta tu s a nd v a l i d i ty a s the Mem o r a nd u m o f As s o c i a ti o n o f a c o m p a ny . S o m e v entu r es i nc l u d e a n “ ex i t r eq u i r em ent” a f ter a c er ta i n l eng th o f ti m e, f o r ex a m p l e a n i nv es tm ent b y p a r tner s to d ev el o p a new p r o d u c t o r a s p ec i a l d ed i c a ted new i nv es tm ent. T hes e p a r tner s hi p s w i l l d i s s o l v e a f ter some time and upon the fulfillment of the o b j ec ti v e.

I f a g r o u p o f c r ea to r s w a nt to tel l a s to r y a nd r a i s e f u nd s to s ho o t a film, the director, screenwriter or the filmmaker will act as the common p a r tner s , w her ea s the i nv es to r w i l l b e the l i m i ted p a r tner . T hey c a n f o r m a l i m i ted p a r tner s hi p a nd s i g n a c o ntr a c t setting out terms on film distribution, p r o d u c ti o n a nd a l l o c a ti o n o f p r o c eed s ; and the surplus allocation is flexible. T he p u r e i nv es to r i s r es p o ns i b l e o nl y to the ex tent o f hi s o r her c o ntr i b u ted f u nd i ng , a nd hi s o r her a l l o c a ted i nter es t w i l l b e s et o u t i n the c o ntr a c t; b u t he o r she will not be involved in filmmaking o r s ho o ti ng d ec i s i o ns . F u nd i ng m u s t b e i n the f o r m o f c a s h o r p r o p er ty ; c r ed i t o r a l a b o r c o ntr i b u ti o n a s i nv es tm ent a r e a l s o a l l o w ed , g i v i ng f u l l p l a y to l a b o r c o s t. S i nc e a l i m i ted p a r tner s hi p i s a l eg a l enti ty , i t i s m o r e c o nv eni ent f o r the ex er c i s e o f r i g hts a nd o b l i g a ti o ns a nd a c tu a l o p er a ti o ns . F u r ther m o r e, a ttem p ts c a n b e m a d e to d o v eta i l w i th i nter na ti o na l p r a c ti c es s o a s to a ttr a c t i nter na ti o na l c a p i ta l .

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Charlie H sieh Senior Manager, A ssuranceC ha r l i e ha s c o ns i d er a b l e p r o f es s i o na l ex p er i enc e i n p r o v i d i ng a s s u r a nc e a nd advisory services to the financial services, tec hno l o g y a nd c o ns u m er g o o d s i nd u s tr i es . H e s p ec i a l i z es i n a c c o u nti ng , a u d i t a nd c o m p l i a nc e f o r m u l ti na ti o na l enter p r i s es .

A uthors 者

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从政府主导到公私合营 基础设施建设融资的现况与前景

From government-led projects to public-private partnershipsInfrastructure construction financing: The current situation and prospects

91

风向

随着中国大陆经济发展和城镇化建设的逐步推进，基础设施

建设在数量与规模上均显著增长。而建设成本高、回收期

长的特性制约着基础设施的融资与建设，与当前日益增长的基建

需求相互冲突。以财政收入支撑和银行贷款为主要手段的传统融

资方式在新的环境中相对乏力。这一方面基于当前地方政府财政

压力较大的现实，另一方面也根源于日趋饱和的土地转让收入，

政府资金来源的枷锁为政府主导下的基础设施建设提出了挑战。

9 2

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9 4

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Faced with this difficulty, diversified financing is finding its way into i nf r a s tr u c tu r e c o ns tr u c ti o n. N ew ty p es of financing, which take the form of bond financing, trusts and public-private p a r tner s hi p s ( P P P ) , ha v e b ec o m e a major direction for the future financing of infrastructure construction. Under the g u i d a nc e o f the s p i r i t o f the “ Al l o w i ng P r i v a te C a p i ta l to P a r ti c i p a te i n I nv es tm ent a nd Op er a ti o ns o f Urban Infrastructure Construction thr o u g h F r a nc hi s i ng ” o f the T hi r d P l ena r y S es s i o n o f the 1 8 th C hi nes e C o m m u ni s t P a r ty , the S ta te C o u nc i l a nd the Mi ni s tr y o f F i na nc e b eg a n to w a r d the end o f 2 0 1 3 to enc o u r a g e a nd p r o m o te i nno v a ti v e m o d el s f o r u r b a n i nf r a s tr u c tu r e c o ns tr u c ti o n a nd l a u nc hed a nd i s s u ed g u i d a nc e d o c u m ents s u c h a s “ Op i ni o ns o n S tr eng theni ng the D eb t Ma na g em ent o f L o c a l G o v er nm ents a nd N o ti c e o n I s s u es Surrounding the Promotion and Use of P P P ” , ther eb y u s her i ng i n a nd d r i v i ng , a t a p o l i c y l ev el , g o v er nm ent- p r i v a te c a p i ta l c o l l a b o r a ti o n a s a n i m p o r ta nt na ti o na l s tr a teg y .

T her e a r e m a ny a d v a nta g es i f p r i v a te c a p i ta l c ho o s es to g o i nto i nf r a s tr u c tu r e

As the economic development and urbanization of

mainland China progresses, infrastructure construction has increased significantly both in quantity and scale. But the high construction costs and long payback periods that are typical of infrastructure projects constrain financing and development and hamper the increasing demand for infrastructure. Traditional financing, which relies chiefly on fiscal revenue and bank loans, is becoming less effective in the new environment. On the one hand, this is a result of the greater financial pressure currently experienced by local governments; on the other hand, land transfers, and the income along with them, are nearing their limit. The constraints on governments as a source of funding for infrastructure construction are posing a challenge to us.

c o ns tr u c ti o n a nd c o l l a b o r a te w i th g o v er nm ents . F i r s t, the i ntr o d u c ti o n o f p r i v a te c a p i ta l i nto i nf r a s tr u c tu r e c o ns tr u c ti o n w i l l d r i v e r ea s o na b l e r es o u r c e a l l o c a ti o ns ; f u r ther m o r e, the p a r ti c i p a ti o n o f m a r k et s ec to r s i n the c o ns tr u c ti o n p r o c es s w i l l improve efficiency and quality. For the g o v er nm ent, c o l l a b o r a ti ng w i th p r i v a te c a p i ta l w i d ens the s o u r c e o f f u nd i ng a nd lightens its financial burden. For private c a p i ta l , i nv es ti ng i n i nf r a s tr u c tu r e construction diversifies investment and increases the social influence of the c o m p a ny . Bu t m o r e i m p o r ta ntl y , i n the P P P m o d el , r i s k s a r e s ha r ed r ea s o na b l y ; i t i s a w i n- w i n f o r b o th p a r ti es .

In infrastructure financing, the nature o f a p r o j ec t a nd the a m o u nt o f f u tu r e cash flows largely determine the design of the financing model. Under the P P P m o d el , p r o j ec ts a r e d i v i d ed i nto o p er a ti ng a nd no n- o p er a ti ng p r o j ec ts ( q u a s i - a s w el l a s no n- o p er a ti ng ) . Op er a ti ng p r o j ec ts r ef er to tho s e tha t, a f ter the c o ns tr u c ti o n i s c o m p l eted , g o i nto o p er a ti o n a nd p r o d u c e r etu r ns tha t p a y b a c k the c o s t. N o n- o p er a ti ng p r o j ec ts ( q u a s i - a s w el l a s no n-o p er a ti ng ) a r e tho s e tha t c a nno t o r

9 5

c a n o nl y b r i ng i n v er y l i m i ted f u tu r e r ev enu e, a nd w ho s e v a l u e ther ef o r e i s p r i m a r i l y a s o c i a l o ne. Bo th ty p es a r e s i m i l a r i n o p er a ti o n, b u t the d i f f er ent future cash flows lead to differences in financing warranty, bank assessment a nd the i nv es tm ent i n the p r i v a te s ec to r , which lead to differences in specific a r r a ng em ents .

P P P , i n the w i d er s ens e, i nc l u d es m o r e financing models, for example, build, o p er a te a nd tr a ns f er ( BOT ) ; b u i l d , o w n a nd o p er a te ( BOO) ; b u i l d , o w n, o p er a te a nd tr a ns f er ( BOOT ) ; a nd o p er a ti o ns and maintenance (O&M). The main d i f f er enc e l i es i n the r i s k a l l o c a ti o n m ec ha ni s m b etw een r ev enu es a nd r i s k s . D i f f er ent m o d el s ha v e d i f f er ent f ea tu r es . F a c to r s s u c h a s i nv es tm ent s c a l e, f u tu r e r ev enu es , c a p i ta l p a y b a c k p er i o d s , the l i f e c y c l e o f the p r o j ec t o r p r o d u c t a nd env i r o nm enta l s ta b i l i ty a l l need to b e ta k en i nto c o ns i d er a ti o n.

L i ne 4 o f the Bei j i ng m a s s tr a ns i t r a i l w a y was China’s first underground transport l i ne to u s e the P P P m o d el i n p r o j ec t financing. Therefore we use it as a case i n o u r a na l y s i s .

T he to ta l p r o j ec t i nv es tm ent o f L i ne 4 was RMB15.3 billion. In the project i nv es tm ent c o ns tr u c ti o n p l a n, the p r o j ec t w a s d i v i d ed i nto P a r ts A a nd B: Part A (RMB10.7 billion) consisted o f the c i v i l eng i neer i ng , the p r o j ec t investment and financing of which was ta k en u p b y a c o m p a ny i nc o r p o r a ted i nd ep end entl y f o r tha t p r o j ec t. P a r t B (RMB4.6 billion) included the c o r r es p o nd i ng f a c i l i ti es s u c h a s v ehi c l es , c o m m u ni c a ti o n s i g na l s a nd a u to m a ti c

entr y a nd ex i t g a tes . T hi s p a r t w a s d ea l t w i th thr o u g h a f r a nc hi s ed c o m p a ny f o r m ed thr o u g h a m a r k eti z ed w a y – the Beijing MTR Corporation, which i nv es ted i n a nd o p er a tes the p r o j ec t u nd er a f r a nc hi s e. T he tw o c o r p o r a te enti ti es a nd the d i r ec t c o ntr o l o f the g o v er nm ent a nd the a u tho r i z a ti o n a g r eem ent i t s i g ned w i th the f r a nc hi s ed c o m p a ny c o ns ti tu te a f u l l tr a ns a c ti o n f r a m ew o r k , a s i l l u s tr a ted b y the following diagram▪:

L ea s i ng o f P a r t A to

Beijing MTR Corporation L i m i ted u nd er c a p i ta l

l ea s i ng s c hem es

P r i v a te c a p i ta l

P a r t A P a r t B

The project company

Bei j i ng L i ne 4 I nv es tm ent

C o m p a ny L i m i ted

The franchised operating company

Beijing MTR C o r p o r a ti o n

Ou ts o u r c ed c o ns tr u c ti o n

Ou ts o u r c ed c o ns tr u c ti o n

G o es to L i ne 4

C o m p a ny

Mu l ti - c ha nnel financing

L o a ns

• F r a nc hi s ed o p er a ti o n a u tho r i z a ti o n

• Regulated by the government• S u b s i d i es ( w hen i nc o m e

b ec o m es l o w er )

G o v er nm ent

F i na nc i a l i ns ti tu ti o ns

G o v er nm ent- f u nd ed i nv es tm ent

Reclaim upon expiry o f the f r a nc hi s ed

o p er a ti o n

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Ac c o r d i ng to thi s f r a m ew o r k , the financing entity is divided into two p a r ts , b u t i nteg r a ted i nto a n o r g a ni c b o d y u nd er d i r ec t g o v er nm ent c o ntr o l a nd a f r a nc hi s ed o p er a ti o n c o ntr a c t. T he p r o j ec t c o m p a ny i s f u nd ed m a i nl y b y g o v er nm ent a p p r o p r i a ti o ns , a nd w hen need ed i t c a n r a i s e f u nd s f r o m financial institutions, but for which it need s r ev i ew s , a p p r o v a l s , c er ti f y i ng d o c u m ents ( s u c h a s p r o j ec t p r o p o s a l s a nd f ea s i b i l i ty s tu d i es ) a nd r el ev a nt a s s es s m ents . I n c o m p a r i s o n, the f r a nc hi s ed o p er a ti o n c o m p a ny ha s more financing leeway as it relies m a i nl y o n p r i v a te c a p i ta l i nv es tm ent, w hi c h c a n ta k e the f o r m o f eq u i ty or bond financing. Note that when f o r ei g n c a p i ta l i s i nv o l v ed i n f o r m i ng a f r a nc hi s ed o p er a ti o n c o m p a ny , i nv es to r s o n the C hi nes e s i d e a r e r eq u i r ed to o w n a t l ea s t a 5 1 % s ha r eho l d i ng . T he Bei j i ng MTR Corporation is a case in point. Ap a r t f r o m p r i v a te c a p i ta l i nv es tm ent, a f r a nc hi s ed o p er a ti o ns c o m p a ny c a n a l s o use the future operating cash flows of thei r c o ns tr u c ti o n p r o j ec t a s c o l l a ter a l for multi-channel financing in the c a p i ta l m a r k et to m eet the c o ns tr u c ti o n f u nd i ng d em a nd .

Ev en tho u g h the P P P m o d el c a n a v o i d o r s p r ea d the r i s k s to a c er ta i n ex tent, the financing process may still carry r i s k s , w hi c h g o v er nm ents a nd p r i v a te i nv es to r s s ho u l d p a y a ttenti o n. F o r g o v er nm ents a nd p r i v a te i nv es to r s , the c o ntr a c t s i g ni ng , the es ta b l i s hm ent o f ter m s a nd c o nd i ti o ns , a nd the uncertainties of the future cash flows a r e r i s k s f a c i ng b o th s i d es . T he P P P o f the Beijing MTR Line 4 Project set up 23 s c hed u l ed c o m p l eti o n c hec k s , a nd the f r a nc hi s ed o p er a ti o n c o m p a ny b o r e the r i s k o f a ny u nc o m p l eted c o ns tr u c ti o n tha t r i s k i s tr a ns f er r ed f r o m the g o v er nm ent. W hi l e the f r a nc hi s ed o p er a ti o n c o m p a ny , u nd er the P P P

model, transfers the passenger flow and ticket price fluctuation risks back to the g o v er nm ent. D u r i ng the f r a nc hi s e, i f o n the b a s i s o f ti c k eti ng r ev enu e a nd actual passenger flow, the average ti c k et p r i c e p er p a s s eng er a r r i v ed a t b y the f r a nc hi s ed c o m p a ny , f a l l s s ho r t o f the c a l c u l a ted ti c k et p r i c e l ev el s et b y the f r a nc hi s e a g r eem ent, the c i ty g o v er nm ent w i l l p a y the s ho r tf a l l to the f r a nc hi s ed c o m p a ny . I f the r ev enu e f r o m the a v er a g e ti c k et p r i c e p er p a s s eng er i s hi g her tha n the c a l c u l a ted ti c k et p r i c e r ev enu e, the f r a nc hi s e c o m p a ny w i l l r etu r n 7 0 % o f the s u r p l u s to the m u ni c i p a l g o v er nm ent. At p r es ent, the g o v er nm ent i s u s i ng thi s s u b s i d y mechanism mainly on the Beijing MTR C o r p o r a ti o n, a nd s u b s i d i z i ng i t ea c h year by about RMB700 million. Risk s ha r i ng i s a c entr a l el em ent i n the f r a m ew o r k d es i g n o f the P P P m o d el . Risk-sharing design needs to take into consideration the project financing a nd a c tu a l o p er a ti ng c o nd i ti o ns a nd c o m b i ne thes e c o ns i d er a ti o ns i nto the d es i g n.

In light of the financing advantage of the P P P m o d el , the c entr a l g o v er nm ent ha s i s s u ed a nu m b er o f g u i d a nc e d o c u m ents o n P P P i n r ec ent y ea r s i n o r d er to d r i v e the o r d er l y d ev el o p m ent o f P P P p r o j ec ts . L o c a l g o v er nm ents ha v e a l s o l a u nc hed a l a r g e nu m b er o f p r o j ec ts i n c o l l a b o r a ti o n w i th p r i v a te c a p i ta l . H o w ev er , ev en w i th s u c h f a v o r a b l e s u p p o r t, the P P P m o d el i s s ti l l a t i n the i ni ti a l s ta g es i n m a i nl a nd C hi na . T her ef o r e, o n the o ne ha nd , w hi l e g o v er nm ents a nd enter p r i s es w i l l c o nti nu e to ex p l o r e a nd i m p r o v e p r o j ec t ex ec u ti o n; o n the o ther ha nd , w e s ho u l d no te the ex p er i enc es o f f o r ei g n d ev el o p ed c o u ntr i es s o w e c a n r ea l l y ta p i nto the a d v a nta g es a nd f u nc ti o ns o f P P P p r o j ec ts .

Source: Finance & Account, April 2013

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朱亚明

财务交易咨询合伙人

大中华区基础设施行业交易咨询主管合伙人

朱亚明先生拥有超过15年在美国和中国从事

财务交易实务及咨询的经验，其主要专注于

能源、资源和政府及公共服务行业。他领导

了很多建模项目，包括战略计划模型、收购

模型、项目融资模型、股票期权模型、勘探

及生产模型。他在基础设施的项目融资方面

也有非常丰富的经验。

Alex Zhu Partner, Transaction Advisory Services Greater China Infrastructure Transaction Advisory Services LeaderAlex has over 15 years of experience in transaction-related advisory in the United States and China, mainly in energy, resources, government and public service sectors. He has led various modeling projects, including strategic planning, acquisition, project finance, stock options, exploration and production models. He also has extensive experience in the financing of infrastructure projects.

麦耀波

财务交易咨询华北区主管合伙人

投资战略咨询服务大中华区主管合伙人

麦耀波先生在亚洲有超过20年的管理咨询和

企业管理经验，其中近12年专注于中国市场

的发展。麦先生专业从事并购战略开发、尽职

调查以及合并后各项整合，尤其在企业海外并

购战略规划及实施方面有丰富的经验和深刻的

理解。他领导并参与上五百个收购和资产剥离

项目。他所参与的各类项目都与跨国公司、亚

洲私募股权投资公司，中国国有企业和大型企

业集团的广泛密切合作。

Yew-Poh Mak China North TAS Leader Greater China Corporate Finance Strategy Leader Yew-Poh has over 20 years of management consulting and corporate management experience in Asia, with the last 12 years in China. Specializing in M&A strategy development, due diligence and post-merger integration, Yew-Poh has led and participated in over 500 acquisitions and divestitures, working extensively with multinationals, PE firms, Chinese state-owned enterprises and large Asian conglomerates.

沈岩

审计服务合伙人

沈岩女士拥有超过14年的审计工作经验，为

包括工程承包、房地产、工业制造、汽车零

部件、通信、广告及航空等行业的上市公司

及跨国企业提供审计服务，尤其在基础设施

建筑领域拥有丰富的经验，负责协调许多主

要的跨国公司及中国大型企业审计项目。精

通中国企业会计准则、国际财务报告准则以

及香港财务报告准则。协助多家中国公司的

境内、境外的上市工作，并担任多家中国及

香港上市公司的年报审计合伙人。具有海外

工作经验，在安永洛杉矶工作了18个月。

Linda Shen Partner, Assurance ServicesLinda has coordinated and provided auditing services for many listed companies, multinationals and large Chinese enterprises in the construction, aviation and infrastructure construction industries. Linda, in her 14 years’ involvement at all levels of auditing practice has become very familiar with Chinese and international accounting standards, and corporate internal control and auditing. Linda also worked in our Los Angeles Office for 18 months.

Authors 作者介绍

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