Recently, China Post Group Corporation Limited (China Post Group) has issued the Development Plan during the 14th Five-Year Plan period (2021-2025) and Long-Range Objectives through the Year 2035 (hereinafter referred to as the Plan), which summarized the fulfillment of the objectives and tasks of China Post during the 13th Five-Year Plan period, and evaluated the development environment it would face in the next period. To comprehensively implement the national outline of the 14th Five-Year Plan, the Plan has made clear China Post’s guidelines, development principles and strategic orientation during the coming period, put forward China Post’s overall objectives of taking high-quality development as the main theme, reform and innovation as the fundamental driving force, and building an industry-leading conglomerate featuring innovation, coordinated development, efficient management, and announced the long-range objectives of building China Post into a world-class enterprise with global competitiveness by 2035.
The Plan noted, during the 13th Five-Year Plan period, China Post carried out the new development philosophy, earnestly sped up reform and innovation, pushed forward transformation and upgrading, maintained a stable and orderly development pace, and eventually accomplished the main objectives of the 13th Five-Year Plan. As a result, China Post’s scale merit has advanced to a new height, with the average annual growth rate of revenue reaching 8.75%. China Post ranked 74th on the 2021 Fortune Global 500 list, gaining 31 places from 2016. Its annual growth rate of profit reached 8.71%, higher than the average level of centrally administered state-owned enterprises(SOE).
The Plan emphasized that the 14th Five-Year Plan (2021-2025) would still be an important period of strategic opportunities for China Post, but both opportunities and challenges would undergo new changes. Generally speaking, what remains unchanged are the new requirements and missions brought by the new stage of development, the new opportunities and space brought by the national strategies and industrial upgrading, and the new challenges and problems brought by the industrial momentum and competitive market. As its advantages remain outstanding, China Post still has a lot to achieve in the next five years. Therefore, China Post must fully grasp the business opportunities brought by the new policies, deeply analyze their influence, and effectively solve the problems that hinder the development. It must raise the awareness of opportunities and risks, understand and master the law of development, fully tap into the advantages of the post, and strive to explore new opportunities and break new ground.
During the 14th Five-Year Plan period, China Post will adhere to six principles, namely, upholding and strengthening the leadership of the Communist Party of China (CPC), making innovations in various fields, deepening reform in an all-round way, fostering high-standard market system, implementing deeply coordinated development, and fulfilling the responsibilities of an SOE.
During the 14th Five-Year Plan period, China Post’s strategic orientation is to focus on high quality development, work with unswerving commitment to uphold the leadership of the CPC and establish a modern enterprise system, carry out reforms in institutional aspect, development pattern and operation model, activate the four key elements such as talent, technology, data and capital, press ahead with transformations towards platformization, digitalization, centralization, specialization and internationalization, and improve the innovation capability, development quality, the business structure, the brand image, the core competence, and the scientific management.
During the 14th Five-Year Plan period, the overall objectives of China Post will be building “an industry-leading conglomerate that features innovation, coordinated development and efficient management”. It will develop into the “national team” with prominent core responsibilities and businesses as well as remarkable functions to effectively support the economic and social development, and give full play to the role as “the main force” of a centrally administered SOE in building a new development paradigm. To this end, China Post will focus on enriching universal postal service, improve the quality and productivity of the parcel, express and logistics business, transform financial services, explore the breakthrough of rural e-commerce mode, bring into play the advantages of synergy of “one China Post”, striving to increase of its revenue to one trillion RMB (about 157.1 billion USD) and its profit to one hundred billion RMB (about 15.71 billion USD), establish the strategic framework of the "four girders and eight pillars (four girders—universal services, financial services, delivery services and rural ecommerce; eight pillars—Party building, transformation, technology empowerment, flat management, platform, synergy, vitality and work style)", and comprehensively enhance the corporate competence in competitiveness, innovation, control, influence, and risk resistance.
By 2035, China Post will have accomplished the building of a world-class enterprise with global competitiveness, implementing the new development philosophy, developing diversified businesses in an integrated way, and gaining a significant increase in size and quality of development. The universal postal service will have been upgraded with a higher level of equal accessibility. A global service system of parcel, express and logistics will have been formed, with the business scale ranking among the leading postal operators in the world. A first-class retail bank will have been built, with customers' trust, distinctive features, safe and sound operations, innovation drive and excellent value. A leading comprehensive insurance group will have been established with the unique characteristics of China Post. A rural e-commerce ecosystem will have been built as an important channel in implementing the national strategies of rural revitalization. Efficient resource allocation, industry-leading technology, compliance and trustworthiness paragon, corporate governance system and modernized governance capacity will have been achieved.
The Plan laid out a total of 82 major tasks in the following 9 aspects, which are: cultivating new advantages of development through innovation-driven development strategy, establishing a high-standard market system through in-depth reform, modernizing governance capacity through improved corporate governance, advancing high-quality development to a new level through accelerated business transformation, developing an ecosystem of the four flows of commodity, logistics, information and capital through strengthened synergy, fulfilling the missions and responsibilities of China Post as an SOE in the new era, giving play to the unique advantages of SOEs through reinforced Party leadership and Party building, optimizing resource allocation, and ensuring the implementation of the Plan.