New investment group enters a new era, takes a big step toward ¥1 trillion market capitalization
We have been implementing our "World Innovation Center" project (provisional name, hereafter "WIC") in Shenzhen, China. This project is number one in Asia, and we have now officially submitted our development application to the authorities in the city's Futian District. It is with deep gratitude for your widespread support that we announce our safe arrival at this major turning point since our founding.
About the urban renewal through the remodel and upgrade of Chegongmiao with WIC project as its core, the local Chinese authorities have accelerated development on this with surprising speed. In his speech to commemorate the 40th anniversary of the establishment of the Shenzhen Special Economic Zone in October 2020, President Xi Jinping said that because the Greater Bay Area comprised of Hong Kong, Macao, and Guangdong Province with Shenzhen at its center is a megalopolis with global influence in the high tech industry, reforms started in Shenzhen and it shoulder the responsibility of pioneering the reform and creating effective models that can be replicated and promoted on other regions. There seems to be no hotter spot in Chinese urban development than Shenzhen.
Once the Chinese government decides to do something, it immediately sees it through according to plan. The WIC is also riding on that wave. Negotiations with Chinese authorities are reaching a crucial stage. But even though we are a foreign company, local authorities have given us neither special nor unfair treatment, and have demonstrated fair judgment based on relevant rules and regulations. This historic development project is vital for Sino-Japanese economic relations, and our employees in Tokyo and China have renewed resolve to make the WIC into a springboard for Miyakoshi Holdings to become a preeminent investment group.
Chinese and Japanese urban development processes have several differences in laws and regulations, so we have been striving for appropriate disclosures. At this stage, we expect to begin more intensive negotiations with authorities to receive approval and authorization as a developing and operating entity, and then prepare to formulate and announce our revenue model.
Now let me also talk a bit about the future. When I updated my message on March 8th this year, I announced for the first time that we would reach a market capitalization value of ¥500 billion by 2026, and surpass ¥1 trillion in at least 10 years. This announcement got quite the response. The plan I had cooked up depended on building a foundation of success in the Shenzhen project. Of course, this project and others were always shadowed by the country risk related to intensifying friction between the China and the US. Even so, innovations that cross national and industrial borders have universal value, and this ideal brings a lot of vitality to business. Over 40 years of Chinese business experience have given us unique know-how and inroads into Chinese markets that I hope we can use as weapons to expand our investment territory from Shenzhen into Japan, Asia, and the world. If we can take full advantage of this growth opportunity, I am confident that we can become such a competitive comprehensive investment group that ¥1 trillion will be nothing more than a checkpoint for us.
Market capitalization value is not the goal, but the result. What is more important is how we use and return the profits we earn as a listed company and a public institution. If we don't carry out our mission as members of society to bring about lasting benefits, then our company is not worthy of respect. In March, I said that our company's purpose is "to light the flame of perpetual innovation" because I wanted us to continue being a company where open innovation leads to the development of revolutionary technologies, and where we can support high quality company growth.
"Divine opportunity is no match for geographic advantage, and geographic advantage is no match for human unity." As these famous words of Mencius suggest, our big business model depends on outstanding people. We are a "hinge joint" organization that triggers innovation. What we need is people who completely sympathize with the Miyakoshi Group's thorough results-oriented approach. We need influential people of unsurpassed skill. My door is always open to such people, and I eagerly await the day I might come to meet them.
May 21, 2021
Kunimasa Miyakoshi,
Representative Director Chairman & CEO
Miyakoshi Holdings, Inc.