President’s Remarks

Legend, Beyond Dream

 


Without long-term strategy, short-term achievement is
impossible;
without full-scale consideration, simple action is
impracticable.
Winners in wars are those who can judge and take
advantage of the situation.
People who are proficient in wars are those who can
make use of good situations and trends and who are
good at planning according to situations.

 One significant factor why Norland could keep stable development is the scientificity and practicability designed by strategic senior level. The Company has developed 3 five-year plans since 2008 and they are fully implemented.

The First Five-Year Plan

Aiming at determining the development direction of Company’s major business and planning to enter into international market, thus realize balance development of domestic and overseas markets. During the implementation of the first five-year plan, Norland not only completed domestic business distribution, but also entered into international market in 2011, and its American Subsidiary went public on NASDAQ. The “Wuqing Detox” product within the major business has achieved international promotion and is sold well at home and abroad for a long time. The enterprise strengthens development basis and engages in international medical business sector, which determines the development direction of direct selling sector and international medical sector, realizes deep distribution of direct selling and health medical sectors and obtained outstanding achievements.  

The Second Five-Year Plan

Aiming at forming health industry ecosystem with Norland characteristics, establishing unique business development mode and achieve leap-forward development. During the implementation of the second five-year plan, the enterprise gradually established coordinated development mode of four business sectors, which are “Direct Selling Member”, “Benyuan Shenghuohui”, “North Huigo Mall” and “UK International Medical Cosmetology”, and obtained great performance in actual practice. Currently, Norland stands in the last 2 years of the second five-year plan and global business is faced with the opportunity of order and coordinated development.  In terms of direct selling business, Norland established 6 regions and Jiangsu and Henan Subsidiaries have opened and started operation. Subsidiaries in Heilongjiang, Zhejiang, Shandong, Liaoning, Guangdong, Fujian, Sichuan and Yunnan will open in succession and provide seamless connection and service for businesses such as direct selling member, stores, medical cosmetology and physical store of Huigo Mall. In overseas, Norland has expanded its business to 43 countries and regions and established subsidiaries in U.S, Canada, Korea, Russian, Kazakhstan, Taiwan, Hong Kong, Brazil and Venezuela; set up national agency or full regional agency business in countries and regions such as South Africa, Laos, Italy and Macao. Therefore, domestic market centered by Beijing and the mutual connection, communication and interaction business pattern of international market centered by New York, U.S. are formed.

Currently, as direct selling member business is thriving, stores of Benyuan Shenghuohui are opening nationwide, which realizes benign development of direct selling “Net among stores, stores among net”; 2nd phase project of Industry Park has fully started with capacity of over RMB 10 billion Yuan, which completely satisfies market demand for core products; on March 2016, “North Huigo Mall” goes into operation successfully, making it a true “favorable platform focus on green life” that “serves millions of families” and a great platform that attract and accept clients for direct selling business; on May 20, 2016, with its 7-year experience on overseas operation of international medical business, Norland completes the establishment of UK International Medical Cosmetology. Beijing Flagship Hospital has opened and the construction plan of 300 chain hospitals and ten thousand medical cosmetology service centers is implementing progressively nationwide. We start an new era of medical cosmetology business with world most advanced medical technology, most advanced medical equipment, most advanced medical service standard, most advanced hospital management system and world leading expert team.

By now, Norland has gradually formed brand-new business mode of interconnection and intercommunication of “direct selling member business, store business, mall business and medical cosmetology business” and “industry ecosystem” with Norland features, that is “direct selling +” full industry chain ecosystem.

By the end of the second five-year plan in 2018, low, middle and high target of Norland direct selling business will reach 2 billion, 4 billion and 6 billion Yuan respectively. Plus with store, mall and medical cosmetology business, the overall performance of Norland will exceed 10 billion Yuan, achieving new leap-forward development and market multiplication.

The Third Five-Year Plan

Aiming at building larger industry cluster, building full industry chain ecosystem with more extensive range, integrating premium assets, going public and making a difference in capital market. In short, on the basis of strengthening and expanding the four business plates of direct selling business, store business, mall business and medical cosmetology business, we will engage in charity and education business and enter into “financial and insurance” business to make Norland more powerful with larger capacity. We will try to make “North Huigo Mall” and “UK Medical Cosmetology” go public as soon as possible so as to equip Norland with a stronger engine and promote Norland to develop more rapidly and stably. According to the overall operation condition of the Enterprise, the package listing of the Mall and Medical Cosmetology may be realized in advance in the last two years of the second five-year plan.

Our final strategic plan is: The market value of North Continent Industry Group shall reach RMB 100 Billion Yuan by the end of the third five-year plan. We must achieve this objective and it will definitely be realized. 

Envision Future

Issue of trend:

In terms of direct selling industry: direct selling has being increasing by 20% ~ 30% each year for over 20 years since direct selling entered into China, and has entered in new gold decade of “Internet + Directing Selling”. Under such big trend, the target of performance of direct selling reaching RMB 6 billion Yuan in 2018 shall not be a problem as long as we keep steady development. In terms of big healthcare industry: developing big healthcare industry has become national policy. We could share great dividends brought by macroscopic national favorable policies if we develop this business. Besides, annual growth rate of big healthcare industry is about 57.3 and by 2019, total medical cosmetology consumption amount of China will reach RMB 1 trillion Yuan, making China the second medical cosmetology demand country in the world. A few years later Chinese medical cosmetology market capacity will reach RMB trillions of Yuan or even tens of trillions of Yuan, which is of great potential. We will establish more than 300 UK international medical cosmetology chain hospitals and tens of thousands of medical cosmetology service centers nationwide. Plus with huge fund invested by Zhonghai Group and Zhongjin Group to promote the development of UK international medical cosmetology business, the business and performance of this part will be considerable. In terms of e-commerce industry: currently there are more than 361 million Internet users in China; overall trading volume of Chinese e-commerce market in 2015 has reached 15 trillion Yuan, increasing by over 23.8% annually. We will expand North Huigo Mall vigorously and there will be nearly one thousand products by the end of this year. North Huigo Mall will provide people with “Family necessary, essential and usable” high quality and inexpensive product and benefit millions of families. The business and profit space of this part is great. In terms of financial insurance industry: from 2010 to 2016, the growth rate of Chinese financial industry has reached 12.9%. Chinese financial insurance industry will become one of the 3 world’s biggest financial insurance markets by 2020. In the future, Norland will engage in financial insurance business and provide investment and insurance service for employees and business partners, making people free form learning worries, life worries, career worries and health worries. 

Issue of mode:

We have being developing direct selling industry vigorously for a long time and obtained direct selling license awarded by Ministry of Commerce in 2015. Since then, direct selling business enters into a healthier stage with rapid development. Meanwhile, we promote store marketing business of Benyuan Shenghuohui, big medical cosmetology business and Internet + mall business and have gradually formed the business mode of  “Direct selling +”. We must adhere to our own unique mode and as long as we stick to such mode and development direction, each plate will value more than 10 billion Yuan in the near future. Adding then all together, Northland will be a enterprise valuing more than 100 billion Yuan.

Issue of dynamics and winning trend:

Without long-term strategy, short-term achievement is impossible; without full-scale consideration, simple action is impracticable. Winners in wars are those who can judge and take advantage of the situation. People who are proficient in wars are those who can make use of good situations and trends and who are good at planning according to situations. Since we analyze overall situation and grasp overall business development situation, we hold the initiative of rapid development. We should take actions according to the situations and be energetic and enthusiastic. In terms of direct selling business in 2016, our members and sales volume are multiplied; in 2016, flagship stores, franchise stores and service stations of Benyuan Shenghuohua increased largely and sales volume is further increased. Also, profitability is further enhanced; in 2016, the Company promotes the construction of subsidiaries greatly and the subsidiaries in Jiangsu and Henan opened successfully. Subsidiaries in Heilongjiang, Zhejiang, Shandong, Liaoning, Guangdong, Yunnan, Sichuan and Fujian will open and start operation this year, providing seamless connection service for businesses such as direct selling member, stores, medical cosmetology and physical store of Huigo Mall in national core provinces. In terms of UK medical cosmetology business, starting from May 20 to now, there are 40 signed medical cosmetology chain hospitals that worth 6 million Yuan. Beijing flagship hospital and opened. Flagship hospitals in Shanghai, Nanjing, Guangzhou, Shenzhen and Chongqing have started to site selection and decoration and they will open in the near future. In terms of international market, currently we possess Korean UK international medical cosmetology hospital and now we are building French and American international medical cosmetology hospitals to make resources of domestic and overseas medical cosmetology such as experts, techniques and management get best integration and effective application, which could meet the demands of various domestic and overseas clients. People can see from the information above that each business plate of Norland has formed excellent dynamics and development situation.

The implementation of strategy cannot live without the effort of all employees, members, store operators, medical cosmetology operator and partners, and care as well as support from media and all walks of the society. As long as we 100% trust the strategy and decision of the Enterprise, 100% execute each policy of the Enterprise and 100% implement target and action plan, we will be able to transform the advantages and dynamics above into winning situation and realize “the great dream of becoming a enterprising worth 100 billion Yuan as soon as possible”. This is the dream of all Norland staff, all direct selling members, all store operators, all members of Huigo Mall and all UK medical cosmetology operators and partners. As long as we dedicate our heart and soul to the same cause and stay together, we are bound to create more legends in this time of national peace and order. As long as we treat with sincere heart and spare no effort, we will be able to realize sharing and win-win, and we will keep surpassing dreams and create more brilliance.