CR’s 6S Management System

6S is the acronym for the six systems – strategic planning, performance assessment, internal audit, manager assessment, management reporting, and business planning. It is a management model created by CR itself, based on its diversified holding company structure, and it is CR’s core management system. With 6S, CR’s diversified management model is more scientific and organized, and the overall management structure is flatter. As a result, management can obtain and manage information more promptly and accurately, significantly enhancing the strategic management capability of head-office and facilitating the formation of a strategically oriented organization.

CR’s 5C Value-Based Financial Management System

The 5C system is a value-based financial management system. Its structure is mainly divided into the three key areas of capital, funds and asset management. It focuses on capital structure, cash generation, cash management, capital raising, and capital allocation. The inherent logic of the 5C system follows a circular path: During the value creation process, the company will first take into account the source of capital, the cost of capital, and structural proportions, in order to determine the company’s capital structure. Through business activities, capital is converted into competitive products or services, achieving cash generation, and creating the internal source of funds for continued growth. Cash management is done through interest payment, dividend payment, cash flow and centralized fund management. Using capital-raising arrangements in line with the asset structure, the external source of funds for continued growth is derived. Through capital allocation activities, the asset portfolio is dynamically adjusted to achieve continued growth in the company’s value. As such, the cycle of value creation is complete.