Wei Qifang, CFO and CIO of Yangtze Pharma and General Manager of ZTCC Tech, poses for a photo in Beijing on March 19, 2023. (PHOTO PROVIDED TO CHINA DAILY)
The CFO Salon, a prominent platform for C-suite executives to share business insights, held another sharing session on March 19 at Tims Coffee in Beijing.
Wei Qifang, CFO and CIO of Yangtze Pharma and General Manager of ZTCC Tech, shared his insights on digital empowerment in business based on his 10-year experience as an investment banker before going back to industry.
Wei also highlighted the essential qualities to become successful chief financial officers, saying CFOs shgould enrich their knowledge and improve their capabilities amid the challenges and opportunities emerging in the digital age.
Experience in ZTE Corporation
Before becoming an investment banker, Wei worked at ZTE Corporation for a long time. During the SARS epidemic in 2003, Wei wore a mask and went to Africa on business, responsible for bank financing and project financing.
In 2005, Wei went to study in Canada and returned to China three months later. At that time, ZTE had just completed its IPO in Hong Kong, and Wei came back as the first head of ZTE's risk control department, responsible for the company's global risk control work.
Investment bankers must demonstrate dedication and passion in their work, providing exceptional service to clients while paying meticulous attention to detail. Rigorous logical thinking, solid financial knowledge, and extensive market experience are all necessary for maximizing client interests
In his early 20s, Wei followed ZTE's CFO Wei Zaisheng, to visit many world-renowned consortia and investment banks such as Blackstone and Carlyle.
"Reading a thousand books is never better than traveling a thousand miles, and traveling a thousand miles is never better than being guided by a good teacher,” Wei said. “Knowledge from books is always shallow, seeing is better than knowing, experiencing is better than learning.”
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These experiences helped him broaden his horizons and laid a solid foundation for his later work in domestic investment banks and industries.
During his time at ZTE, Wei already had in-depth contact with investment banks. In 2007, Huawei and ZTE bid for Marconi Telecom in the United Kingdom. Goldman Sachs and Bear Stearns worked for ZTE and Wei was deeply involved as the head of ZTE's risk control department.
Six months later, Ericsson acquired Marconi Telecom at a premium. This experience gave Wei a deeper understanding of investment banking while he realized that investment banking requires a higher level of strategy and international vision.
Ten years of investment banking experience
“Sharp tools make good work” and opportunities are always reserved for those who are prepared. After Wei set his mind to enter investment banking, he passed the exams of International Business Master, Chinese Lawyer, CPA and CFA between 1998 and 2007.
He completed his MBA degree education in Poitiers University, France, to be fully prepared for entering investment banking. From 2007 to 2017, Wei joined the investment banking department of GUOSEN Securities and has been a sponsor representative for 10 years since then.
In 2009, Wei was responsible for the sponsorship business of the first batch of GEM listed companies when the first batch of GEM companies went public. At the beginning, the business was very smooth, and there were successful IPO or refinancing, M&A cases in the first five years.
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In the later years, some projects were withdrawn and some IPOs were rejected. Wei gradually came to understand the meaning of "seeing through the cycle and being fearful" in investment banking. Through his insight into the cyclical changes of the capital market and the ups and downs of listed companies in the past ten years, Wei came to admire those industrialists who stick to long-termism.
GUOSEN's business mainly focused on the small and medium-sized boards, but due to his work experience in ZTE, Wei helped GUOSEN Securities make many big projects. For example, Gemdale refinancing (4.1 billion yuan or $600 million), GF Securities refinancing (12.6 billion yuan), BOE refinancing (45.7 billion yuan).
Besides, Wei also led his team to complete IPO projects such as KSTAR and Comix. During the projects, Wei was working on the front line and accumulated rich practical experience. During his ten years in investment banking, Wei completed more than ten projects in total.
Wei Qifang, CFO and CIO of Yangtze Pharma and General Manager of ZTCC Tech, shares his insights during a CFO Salon session in Beijing on March 19, 2023. (PHOTO PROVIDED TO CHINA DAILY)
During his work in investment banking, Wei also worked as a lecturer in SZSE to teach practical experience in investment banking. In seven years, Wei trained more than 20,000 prospective directors, independent directors, executives of prospective listed companies and entrepreneurs.
His lectures were in-depth and practical, and were well received at the exchange. Later, Wei combined training with the Internet and created his own WeChat public account and TikTok account, which gradually gained 750,000 followers. In the process, Wei discovered the charm of the internet, which had a leverage effect and could expand the audience.
At the same time, Wei had been working in investment banking for ten years. He thought that domestic paperwork-type investment banking work "can be seen to the end" and it was difficult to have innovation and breakthrough. So, Wei quit investment banking in 2017 and started his own entrepreneurial journey.
Back to industry
“It is when you are using what you have learned from books that you wish you had read more books than you have.” Wei has always been curious about new things. As the saying goes "Curiosity drives the world", so what kind of impact would the advent of digital era have on traditional financial accounting?
With such a question, Wei enrolled in the PhD program in accounting at the School of Economics and Management of Wuhan University in 2018. After fortunately passing the exam and studying under Professor Xie Huobao for his PhD, he began to pursue professional refinement between academics and practical work.
After leaving the investment bank, Wei entered the digital field to do SaaS startup. The startup process was very hard, and Wei spent a lot of energy polishing the product to the extreme.
Prioritizing client interests and displaying social responsibility are crucial for building a company's image and trust
However, he later found out that it was not a one-man battle, and the success of the venture required the synergy of all departments in product, operation, sales, and human resources. After getting the investment, they could have a perfect product, but the biggest problem was that the company's cash flows were difficult to achieve balance.
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The epidemic broke out in early 2020, when digitization was reshaping the world and the supply chains were changing China. Wei followed the trend and set up ZTCC Tech together with ZTC Holdings and Eternal Asia.
In 2022, invited by Yangtze River Pharmaceutical Group, Wei entered the biomedical field as a financial adviser to Yangtze River Pharmaceutical Group. In the past year, Wei learned a lot of new knowledge about innovative drugs, traditional Chinese medicine, vaccines, and gene therapy.
He gained a deeper understanding of the biomedical track, filling in the boundaries of his knowledge of the emerging industries in the science and technology board. In his own words, this year was "the most fulfilling and heavy year in the last decade".
The charm of the biomedical track was that it could withstand risks in times of economic recession and had an amplifying effect in times of economic boom. It was the "golden track that never ends" and "a veritable long slope of shallow snow", which was extremely attractive to long-term investors.
Driven by the corporate vision of "seeking progress and protecting all living beings" and the mission of achieving a "China's top and the world’s first-class" enterprise in the health industry, in the future, Wei hopes to work together with Yangtze River Pharmaceutical Group, contributing his light and heat to the internationalization, digitalization and capitalization of Yangtze River Pharmaceutical Group.
Four essential qualities of an investment banker
Wei outlined the crucial attributes an investment banker must possess:
Mastery: Investment bankers must demonstrate dedication and passion in their work, providing exceptional service to clients while paying meticulous attention to detail. Rigorous logical thinking, solid financial knowledge, and extensive market experience are all necessary for maximizing client interests.
Insight: The ability to perceive market trends and opportunities is critical for investment bankers. They should excel in market analysis, accurately grasp trends, and seize opportunities. A deep understanding of the market allows for targeted advice and services to help clients navigate complex financial environments.
Eloquence: Investment bankers need excellent communication and negotiation skills to effectively interact with clients, colleagues, and other market participants. This ability is vital for advancing projects, signing contracts, and maintaining client relationships.
Writing prowess: Wei emphasized the importance of clear and concise writing skills for investment bankers. High-quality output and outstanding expression in every task are essential components of this skill.
Four management ideas for CFOs
As a CFO, Wei shared his experiences in company management and development, focusing on long-termism, altruism, lifelong learning, and humanistic values:
Long-termism: Companies should maintain a long-term perspective for sustainable development and genuine value creation for clients.
Altruism: Prioritizing client interests and displaying social responsibility are crucial for building a company's image and trust.
Lifelong learning: Continuously enriching one's knowledge and improving business capabilities is necessary for adapting to ever-changing markets.
Humanistic values: Business transactions should consider a company's humanistic care and social value, enabling the creation of shared value for society.
Digital empowerment and the global landscape
Wei also expressed optimism about the future of digital empowerment in businesses, highlighting the following aspects:
Development of information technology: The rapid advancement of digital technologies, including the internet, big data, AI, and blockchain, has brought significant changes to industries worldwide. These technologies facilitate information dissemination, resource allocation, and economic globalization.
Restructuring of economic activities: Digital empowerment allows businesses and individuals to access global market information more easily, optimize resource allocation, and restructure the global industrial chain. Digital technology enables precise marketing, personalized customization, and intelligent production, ultimately enhancing market competitiveness.
