Channel-first Strategy Focuses On Health and Medical Care Needs Of The Elderly

Qisda Corporation will launch the second phase of its value transformation project this year to accelerate value upgrade and achieve the goal of pursuing more than half of the profit from the High Value-Added Business. Peter Chen, chairman of Qisda said that the new layout of personnel has allowed himself to focus more on formulating future visions and strategies. At the same time, the newly appointed president will bring into play his capabilities on operations management to further demonstrate the benefits from the integration of the Grand Fleet, taking Qisda’s operational performance to the next level.

Chairman Peter Chen further stated that the Company will concentrate on four areas: information technology, health care, smart solutions and 5G Network Business to seek opportunities to increase added value. Among these areas, based on the “channel-first” strategy, the Medical Business has recently invested in Heyue Life and Concord Medical, emphasizing the future demand of health and medical care for the elderly.

Accelerating value upgrade with new personnel layout coming into effect in April

As a means to carry out the long-term operational development and layout for the next phase, the chairman will relieve himself of his duties as president and become a part-time CEO. Chairman Peter Chen will continue to formulate medium- and long-term sustainability strategies to accelerate the second phase of the vision of pursuing more than half of profits from the High Value-Added Business. Meanwhile, the new president will be Joe Huang, president of the IT Product Business Unit and Commercial and Industrial Product Business Unit. This change will take effect as of April 1, 2022. The new president will be responsible for strategy execution and operations management.

Joe Huang has extensive experience and has performed remarkably within the supply chain, factory, branding, expatriate and business management in BenQ Group. During his time serving as leader of the IT Product Business Unit, he achieved excellent results in high-value product portfolios, revenues, and the doubling of shipment volume. In the past few years, he led the Business Group to invest in and manage new Combined Fleet partners, including Data Image, Topview Optronics, and Action Star. Moreover, the EPS of Data Image reached a record high of NTD4.58, with ROE reaching 19%; the EPS of Topview Optronics also reached NTD4.46, with ROE of approximately 12%.

Qisda initiated its first phase of value transformation in 2014 and its revenue has doubled from over 100 billion to over 220 billion in 2021. The operating profit has grown five times to more than 7 billion and the gross profit margin also increased from 10% to 14%. In the past year, Qisda’s EPS reached NTD4.42, a record high in the last 10 years and is expected to distribute cash dividends of NTD2.50 per share to its stockholders, with dividend yield of 8%. The proportion of revenue generated from High Value-Added Business reached 41%. This year will be the first year of initiating the second phase of value transformation and under the challenges of inflation and rising interest rates, the acceleration of “value upgrade” is even more pressing.

“Channel-first” strategy: Health Care Business enters pharmacy and medical management field

In the first phase of Qisda’s value transformation, a “Grand Fleet” approach was taken to enter new business fields with high added value. Prior to investment, evaluation is conducted based on the “channel-first” strategy. With future demand of long-term health and medical care, the Group has recently invested in Heyue Life, officially entering the pharmacy market. As well as this, the Group also made a recent investment in Concord Medical, entering the specialty hospital channel and professional medical management field.

According to demographic statistics and projections of the National Development Council, Taiwan became an aging society in 2018 and will become a super-aging society by 2025, meaning one person out of five will be over the age of 65.

While New Best Hearing Aids invested in by Qisda, coupled with professional services provided by audiologists have been well received by elderly people, professional medical care services are also provided by pharmacists in pharmacies. In addition, Qisda’s investment in Heyue aimed not only to provide extensive health and medical care to elderly people, but the Group will also introduce the power of technology that allows virtual-real integration to best combine professional and care services.

Furthermore, many community clinics and regional specialty hospitals have been enhanced as the demand for medical care for senior citizens increases across Taiwan. In recent years, Qisda has also been developing in the direction of “small but comprehensive,” emphasizing on health examinations, respiratory care, urology, rehabilitation, and dialysis. With many years of experience serving as a professional medical management consultant, Concord Medical provides regional and specialty hospitals with a full range of management services and supply of medical equipment consumables. In the future, Qisda will continue to explore related fields and provide professional medical care services for the senior market to complete the layout of our medical care fleet.