Vland's New Year Speech 2022 from President Chen Gang

At the beginning of the new year, Vland would like to extend our best New Year wishes to friends from all walks of life who have always cared about and supported the development of Vland!

Since 2017, Vland has entered the VLAND3.0 era with “platform transformation and innovation driven development” as its strategic theme. In the new age of internet characterized by decentralization, de-intermediation and de-boundarization, Vland actively seeks changes and self-salvation. In this new era, cooperation is the norm, collaboration becomes easier, transaction costs are decreasing, and the building block-like innovation replaces the traditional wooden barrel theory. Innovation is of increasing significance, and the “winner-take-all” rule has spawned innovative cases of various forms in every field of business.

People are the subject of innovation, and innovative persons are exactly what we need, so how to link the elite and to activate individuals becomes particularly important. In the past five years, Vland has thoroughly transformed itself into a “platform + maker” organization, dividing the interior into three parts: front desk, middle desk and back office. The front desk is composed of makers directly facing the market, the middle desk refers to the production and research platforms that offer technology and products, and the back office consists of departments in the headquarter that provide functional services. Independent promotion channels for front desk, middle desk and back office are designed accordingly. This is a process of decentralization and also of delayering.

In the platform-based organization, resources are modularized and encouraged to flow, fully realizing their accretion and sharing. With five years of exploration, Vland’s three-tier maker system has matured, including individual maker (100+), project maker (14) and company maker (15). Individual makers are further present in three different forms: internal maker, internal shared maker and external cooperative maker. Typically replacing management with mechanism, maker system shows more respects to human nature and tends to activate individuals. Over the past five years of transformation towards “platform + maker”, Vland’s management costs have been drastically reduced while management efficiency greatly improved, with a two-percentage-point drop in the management expense rate. In addition, the maker system leads to the fuller use of internal resources and a more vital front desk. The number of individual makers with annual sales of over 10 million yuan has increased by 133%, and the total sales risen by 206%. Company maker numbers have gone up 67%, with a 6% rise in the proportion of performance. The feed enzyme business unit pioneers the promotion of the maker system. From 2017 to 2021, the unit has made outstanding performance and enjoyed a steady growth, with a 271% increase in monthly per capita sales and a 185% rise in per capita assessed profits. It is estimated that the feed enzyme business in 2021 will achieve greater growth compared to 2020.

In the VLAND3.0 era, technological innovation is central; more than 8% of the revenue has gone to R&D each year. The R&D investment accumulatively reached 290 million yuan during 2017-2020, accounting for 8.63% of the total turnover. In the past five years, Vland has established, on the basis of VLAND2.0, technology centers for probiotics, chemical veterinary medicine, biologics, nutrition & health, and marine aquatic products, finally forming an architecture of 8 technology centers and 2 special R&D laboratories that matches the business. A technical management system of “dual chiefs+ product manager” has been created. In order to break the technological boundaries and advance the sharing of technological resources, Vland, based on the 8 major technology centers and 2 laboratories, established a technical committee for resource sharing and interactive communication.

In the past five years, the technological innovation system of Vland has basically taken shape. Technological innovation has not only helped Vland expand its business, but has also served as the core growth engine for sustainable development.

What is past is prologue.

In the digital age, uncertainty is the norm, and nonlinearity is the mainstream. The underlying logic of business is undergoing fundamental changes, and cross-industry collaboration has become a daily business routine. New species are constantly emerging, and the traditional mode of thinking has been subverted. As a group with deep roots in innovation, Vland never resists to change. “Dancing with change” is what we have always adhered to.

In the middle of 2021, Vland officially launched the “ecological innovation” strategy and began to enter the VLAND4.0 era. The core strategy of ecological innovation is built on the platform-based innovation system, with an aim to break external boundaries, establish wider links and broader cooperation, moving towards a “dual circulation” development pattern and transforming itself from the wood to a rainforest.

In the VLAND4.0 era, Vland will make its efforts to establish an innovation ecosystem of “dual circulation”. Starting from the Qingdao Innovation Center, technological innovation centers will be then established in Shanghai, Wuxi and Tianjin to form an open innovation ecosystem. Committed to the positioning of an integrated innovation platform, Vland will actively link upstream scientific research institutions and establish extensive industry-university-research cooperation. From 2022, each technology center is required to establish close cooperation with at least 3 partners, so as to introduce more external cooperation projects, seek the commercialization of technological achievements, and avoid involution. In addition, we need to actively link downstream innovative companies, identify market needs and pain points, establish innovation alliances of various forms, cooperate on key projects, and promote the implementation of more cross-industry collaborative solutions.

In the era of VLAND4.0 featuring innovation ecosystem of “dual circulation”, we will extensively link the upstream and downstream, expand new applications, develop new industries, incubate new projects, and form a new development pattern to stabilize the stock and expand the increment.

2022 is the first year for the implementation of Vland’s ecological innovation strategy. It is also a year when our major investment project “Vland Industrial Park for Animal Health Care Products” is scheduled to put into operation. After the running, two core customer empowerment scenarios will be formed based on Vland Innovation Park and Vland Industrial Park for Animal Health Care Products. At the same time, we will adopt a more proactive market strategy to widely deliver values and empower end users through industry platforms such as exhibitions, forums, associations, etc. In 2022, we will establish and improve systematic solutions centering on animal health, plant health and aquatic creature health, and actively establish cooperation and interaction with core customers, so as to achieve win-win results.

The VLAND 4.0 era also indicates that Vland is going to enter the stage of eco-innovation when ecological thinking, a more open and active sense of cooperation, and active adaption to the “out of control” of ecological organizations are required to form the habits of self-organization, self-management and self-driving. In this era, Vlanders need to learn how to “trouble” others and also how to be “troubled” by others, adopt a positive attitude to all changes and face all failures and setbacks squarely.

In the VLAND3.0 era, Vland grew from a hopeful seed into a big tree, and then “the woods”.

In the VLAND 4.0 era, Vland is expected to grow from “the woods” into a “rainforest of symbiosis and sharing” through the implementation of eco-innovation strategy and the joint efforts from all Vlanders.

Though the road ahead is dangerous and difficult, we can only achieve our goals with constant efforts.

Happy New Year 2022!