【正文】 CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。CEMS173。xLines44Recent trends: Declining overall volumes of foreign bank loans? The withdrawal of many foreign banks from lending to Chinese borrowers due to perceptions of increased risks and regulatory restrictions? The loss of market to Chinese banks as the market continues to follow a “de173。xLines43Financial Institutions under the People’s Bank of ChinaSource: PBOC, . Harner and Company presentation173。x42E.Bankingpresentation173。chains will develop? percentage of pharmaceutical distribution will increase (to 40%?)Tomorrow1) Traditional Chinese Medicinepresentation173。 10 larger domestic research based drug manufactures backed by government? Others merge, close or play niche roles in TCM1)? Foreign percentage will further increase (to 70%?)? 40 173。foreign JV39。CEMS173。prescription? pharmaceutical’s 60% of total health care costs? imported drugs enjoy often higher prices than domestic? but domestic counterfeits are much cheaper? all drug prices are controlled by the state on a provincial/municipal levelStatus? state subsidy173。xLines40Price pressure in china39。s in China4,600 Domestic manufacturesMarket growth: 15% .Sales capita: 1215 US$Market by 2023: 60 bn US$40 45%presentation173。control173。and173。CEMS173。 5%0%10%20%30%China Japan EuropeSource: Interviews, EIU, RB173。xLines38In fact the consumer prices of foreign imported drugs are usually 90% to 100% higher than the manufacturing price mainly due to an inefficient distribution systemDrugpriceponents Distribution margins in % of turnover1000100[price index]200110 120150165193+17% VATManufacturer priceCustomsClearing charges drug inspectionDistributionHospital markupVAT25%10 173。US%presentation173。xLines37China39。x36D.Pharmaceuticalspresentation173。xLines35There are two strategic options for OIE in the apparel business: “Service oriented manufacturer” or “Fullservice regional agent”Strategic options in apparel business“Fullservice regional agent”“Serviceoriented manufacturer”Customer focus? Foreign retailers (esp. vertical chains)? Chinese retailers (private label)? Big retailers with own buying offices? Lowmedium advanced agents? Regional coverage of supplier countries for production in Asia? National coverage (. Several production plants in different labor cost areas of China)Supplier country coverage? All apparel product categories and qualities? Focus on one / few product categories and / or qualities Product categoriesServices / petences? Supply chain partner with core petences in fabric sourcing (worldwide), factory sourcing1) and quality control? Additional innovative services in –Design (own collection)–Product development (flexible and quick prototyping through own production capacity)–Fabric research development? Core petences:–Production–Quality assurance? Additional services: –Product development (pattern making, prototyping)–Fabric sourcing1 21): No own production sitespresentation173。xLines34The apparel business will need to improve its profitability considerably to offset the loss of the quota businessAdjustment of reported profit of apparel business based on “Economic profit”[US$ m]Reported profit FY2023Elimination of nonsustainable profitsCurrency gains Profits protected by quota“Sustainable” profitCost of equity“Sustainable”Economic profitIIValue of apparel business is declining!Source： OIE, Roland Berger Strategy ConsultantsIRequirement to improve profitabilitypresentation173。xLines33Taking into account the uping market liberalization, OIE will lose rapidly its petitive advantage based on governmental protectionAssessment of petitivenessBusiness Market share development Profitability / cost position Governmental protection Business modelsMatch of core petence and success factorsOverall assessmentApparel exportPhar. ExportTextile exportLogistics forwarding (sea)Logistics forwarding (air)High Medium LowSource: Roland Berger Strategy Consultants presentation173。xLines32Apparel export is still the most important business of OIE in terms of sales and profit contributionSource： OIE, Roland Berger Strategy Consultants1) Including Holding, Minhang, Baihe, Gaonan, apparel business of Rongheng, Pudong2) Jiada + Jingmao 3)Including Holding, Rongheng Sales structure by business 2023[US$ m]Operating profit structure by business 2023[US$ m]Apparel1) exportLogistics2) forwardingPharmaceutical exportTextile3) export Others Total%%%%%Apparel1) exportLogistics2) forwardingPharmaceutical exportTextile3) export Others Total%Example presentation173。owned trading panies into a very unfavorable situationFree quotaCheaper quotaMarket price quotaProfit contribution from subsidized quota: US$ 20mExamplepresentation173。owned trading panies haven’t established enough petitiveness for a free market petition? The deregulation is the absolute trend and state173。xLines31The advantage of stateowned trading panies in getting cheaper quota will gradually disappearAdvantage of stateowned trading paniesExample Quota structure of a stateowned pany Impacts? The state173。xLines30The impact of the WTO agreement differs strongly between the different market participantsTextile Manufacturers? More exports to China? Increasing investments in China? Few petitive advantages (capital intensive)Apparel Manufacturers? Strong increase in exports to Europe, US and Japan? More license agreements with European, US and Japanese brand and non brand apparel manufacturers and retail firms (labor intensive)State Tradin