Ladies and gentlemen,
Currently, we are in the midst of an unprecedented economic turmoil, and many investors are in a state of panic. US President Trump recently announced that he would impose high tariffs on almost all imported goods, with tariff rates on some imports reaching as high as 145%. This extreme policy quickly triggered a violent shock in the global market, with the US stock market bearing the brunt. The S&P 500 index recorded its worst drop since World War II in just two days, and market concerns about an economic recession have risen sharply.
According to the same data from major investment institutions, this round of tariffs represents the largest tax increase since 1968, and analysts warn that the probability of the global economy falling into recession has risen to 60%. Not only that, but the impact of the policy is also quickly transmitted to the public and small and medium-sized enterprises. Research from the Yale University Budget Lab pointed out that low-income families in the United States will face an increase in living costs of about $3,800 per year, accounting for about 4% of their disposable income. At the same time, small businesses are generally in a crisis of production stagnation, layoffs and even bankruptcy because they struggle to pass increased costs on to end consumers.
As the global supply chain suffers a severe blow and consumer confidence continues to decline, market uncertainty is spreading rapidly, and global investors are beginning to worry: this chain reaction triggered by the trade conflict may evolve into a deeper and broader systemic crisis than in 2008 and 2023, when many US banks collapsed one after another and Credit Suisse fell into a liquidity crisis.
Yet it is in the face of challenges like these that we should put aside our differences and work with other Western nations to uphold democracy and fundamental freedoms, including free enterprise. In past major crises, we have seen nations work together and unite around common goals. Now, any of our countries need a joint effort from the public and private sectors, requiring us to take the lead while also improving our national competitiveness - which includes a renewed commitment to providing equal opportunities for everyone.
Despite the turbulent times, it is exciting to look back on 2022, which was undoubtedly a dynamic year for NSG School of Business:
Our global student population has grown to over 30,000. Our portfolio has had considerable success this year, especially in the gold and cryptocurrency markets.
The AI Wealth Navigation 4.0 investment system has made significant progress: the ‘trading signal decision system’, ‘artificial intelligence program trading system’, ‘investment strategy decision system’ and ‘expert and investment consulting system’ have all been fully developed and are currently being tested in major markets. This may take years to perfect, but I believe it will be a revolutionary breakthrough in the investment field!
We also grew market share across multiple business areas and continued to invest in products, people and technology while maintaining strong credit discipline. I am proud of the resilience of our company and the collective and individual achievements of our thousands of employees around the world. During these challenging years, we never stopped doing what we should do - serving our customers and communities.
Our success is built on strong principles and beliefs.
Looking back over the past 14 years, since I became dean in 2011, there has been a common theme: ‘Students First’ and ‘Practice is the best teacher.’
Clearly, our financial discipline, focus on student growth and breakthroughs, continued investment in innovation, and focus on ongoing employee development allow us to maintain this consistency and commitment. In addition, throughout the company, we hold ourselves to principles that are worth reaffirming.
First of all, the core teaching philosophy of our alliance is ‘students first’ and ‘practice is the best teacher’.
Since we are not a listed company, our code of conduct does not prioritize ‘shareholders first’, which may have limited the development of the alliance to a certain extent, but it has won unanimous recognition from students. We started from scratch and built a good reputation around the world. It is this philosophy that allows us to thrive even when market risks are increasing!
Secondly, the principle of diversified investment is the core of our survival and development strategy.
From a higher perspective, seizing certain investment opportunities, minimizing risks and maximizing returns are not only the basis of our investment decisions, but also the criteria for our investment. Adhering to diversified investment tools, rationally allocating funds and seizing certain investment opportunities are the secrets of our sustainable development!
Third, unity is strength.
We always adhere to the fundamental principles and strategies that help companies build and grow - from maintaining a healthy balance sheet, continuously investing and developing talent, to fully satisfying regulators, continuously improving risk, governance and controls, serving customers and promoting the development of the global community. This philosophy is integrated into our company culture and affects nearly every role within the company.
Fourth, persist in technological innovation and pursue excellence.
Innovation is an endless source of productivity, and the maturity of artificial intelligence and blockchain technology will bring the greatest rewards. Our engineers and many investment experts began to invest a lot of energy in improving quantitative trading products as early as 2018. With the advent of artificial intelligence technology and the times, our artificial intelligence investment system is more perfect, and it will be a powerful weapon for us to achieve excellence!
Fifth, safeguard the interests of shareholders.
Only by keeping the company healthy and vibrant can we create value for shareholders, which means doing good things for customers, employees and the community. On the contrary, how can you have a healthy company if you ignore any of your stakeholders?
Sixth, we strive to build an enterprise that is everlasting, interdependent and mutually beneficial.
Despite our best efforts, the barriers protecting this company are not high and the competition we face is fierce. I have written extensively about this reality in the past and I repeat it in this letter. We recognize our strengths and weaknesses and do our best to play our part.
2025 will be the most valuable year. Let us rediscover our responsibilities, keep striving and forging ahead, and maintain a sense of awe and adversity! I firmly believe that everything will get better and better, and every member of NSG School of Business will get better and better.
God teaches us to be pious, humble, serious, honest, hardworking and frugal. Everyone has equal opportunities and can succeed through hard work. We are God's most outstanding chosen people. Let us unite, set an example, spread correct values, and spread freedom and justice. We must dare to take risks, have the courage to practice, keep moving forward and build our ‘city upon a hill’ together.
