In addition to many sailors, the fleet of over 1,000 ships is said to have included craftsmen to repair the ships, cooks to prepare meals, vegetable seeds and soil for growing food, and farmers, as well as livestock and many women. It is said that these passengers were left on land at their destinations and started their lives there, being promised that one day the fleet would come back to pick them up. The story is reminiscent of Noah's Ark, as described in the Bible. Numerous ruins and other traces of their life in the world's port cities prove their presence in different parts of the world. But why were these great achievements not inscribed in history? In fact, the only book on the Zheng He fleet is 1421: The Year China Discovered the World, which is the result of the research and findings of Gavin Menzies, a British submarine lieutenant-commander.
This apparent oversight seems to be due to the Chinese cultural tradition of discarding or hiding all achievements of the previous dynasty as negative legacies when a dynasty changed. Another reason is that China's goal was to increase the number of countries paying tribute to China, not to directly dominate the rest of the world. Therefore, since they did not one-sidedly exploit the resources of those regions and enslave people, the fleet did not create economic value, and the enormous foundation and operating costs were the cause of the decline of the Ming Dynasty. The Chinese left behind in various parts of the world never saw the promised ships that were to take them home. They did not blend in with local society, and it seems that they kept waiting in isolation for the return ships to arrive. In the end, it seems that the lack of cultural exchange with the locals, the unwillingness to indigenize, and the absence of a culture that would preserve the history of such areas were the reasons why they were lost in the shadows of history. It is said that many Chinese companies have recently entered Africa and established “Little Chinas” in various places and are in a state of friction with the locals and are even experiencing boycotts in such countries, keeping their way of life different from that of the local people. It may be that the same thing as in the past is happening on a larger scale today.
On the other hand, 50 years later, during the Age of Exploration in Western Europe, colonial policies were established by subjugating the local people by force and leaving only those who would submit, which seems to be the opposite of the Chinese example.
I believe cross-cultural exchange is important in expanding the sphere of human activity, and that it is important for people of different cultures to recognize each other and freely and actively exchange opinions to create a better world. After World War II, the world experienced the Cold War and developed greatly during the period of globalism, with the United States at the top. As a result, excessive energy consumption has led to global warming that now threatens the survival of the human race. Although emissions from developed countries have been a primary cause of global warming, developing countries suffer from it the most. One may say that, in the 2020s, just like before World War II, a war for resources has begun, involving not only developed countries but also emerging countries, and interregional conflicts have started once again. It is often described as a fragmenting world, and we can say that the world is returning from globalism to nationalism.
Rigaku has group companies working in R&D, manufacturing, and sales worldwide, and the strengthening of the governance of these group companies is more important now than ever. However, there is a concern that simply strengthening the governance will result in the loss of the uniqueness of each company and will reduce the flexibility of R&D activities. Last year we reaffirmed our corporate philosophy and came up with the Mission Vision Value statement. I believe that the best way to create synergy and develop as a global company is for each of our group companies to act in line with the spirit of the Mission Vision and Values while taking advantage of their own uniqueness.
To achieve this, I think it is important to provide as many opportunities as possible for everyone working at global Rigaku to meet and have discussions in person. I hope this year we will create such opportunities as much as possible.
The fiscal budget for 2023 was approved by Rigaku Holdings' Board of Directors on December 6, 2022, with consolidated sales of 67 billion yen and consolidated EBITDA of
14.6 billion yen. This budget is restrained because of the uncertain social and economic environment, and new investments are being kept strictly under control. However, with the growing demand for development of new materials and new production technologies, I believe the number of customers worldwide who need Rigaku's products is still trending upwards. I am sure we can continue to find new customers. I think that the biggest challenge for the company's management this year will be to carefully monitor the performance of the company in fiscal year 2023, and to execute investments aggressively where conditions permit. Overall, we believe we can achieve a sustained CAGR (compound annual growth rate) of 14%.
I believe that the open exchange of human resources and information within Global One Rigaku is of utmost importance, and I hope for your understanding and cooperation.
Finally, I sincerely wish you and your families a happy and prosperous year ahead.
