What is the Business Partnership Mechanism?

▶ The Business Partnership Mechanism is:

•      Neither equity incentives

•      Nor traditional resource integration

•      Nor simple profit-sharing

It is a collaborative synergy framework built on:

•      Decentralization

•      Altruism philosophy

•      Long-tail effect principles

This mechanism aligns capital providers, technologists, and intellectual contributors through:

✓ Co-creation of value

✓ Shared risk-taking

✓ Mutual benefit realization

All stakeholders obtain their desired value within the partnership structure, fueling collective ambition as the driving force.

▶ Core Principles:

1.    Must be growth-driven (incremental value sharing)

2.    Implemented through three key tools:

o     Profit-sharing without control dilution

o     Multi-tier partnership structure

o     Dynamic equity mechanism

3.    Transforms individual entrepreneurship into collective endeavor

▶ China Stone's 32-Character Partnership Manifesto:

◆ Shared vision, altruistic momentum

◆ Joint creation, growth-based sharing

◆ Mutual empowerment, autonomous synergy

◆ Value accounting, dynamic participation
 
 
How Can the Business Partnership Mechanism and Industrial Ecosystem Development Help Enterprises Solve Problems?

▶ The Business Partnership Mechanism Enables Seven Critical Transformations for Enterprises:

1.    From relying solely on the boss to building a high-performance team

2.    From independent operations to collaborative alliances

3.    From fragmented individual capabilities to synergistic multiplication (1+1+1=111 effect)

4.    From employees becoming co-owners

5.    From professional managers (employees) turning into entrepreneurs

6.    From a profit-sharing community to a mission-driven community and ultimately a shared-destiny collective

7.    From being passive passengers to becoming self-driven achievers
 
▶ Through the Business Partnership Mechanism, enterprises can:

• Build an industrial ecosystem to enhance competitive advantage

• ntegrate critical resources across the value chain

• Evolve their business model from:

✓ Selling products → Managing customer ecosystems

✓ Pursuing scale → Leveraging data assets

✓ Operating a company → Orchestrating an industrial ecosystem
 
◇ Upstream Supply Chain: Transition from short-term supplier transactions to a long-term capital appreciation and shared-value partnership model, creating an integrated supply-side platform.

◇ Downstream Distribution: Shift from short-term agent relationships to a demand-side integration platform based on long-term capital growth and profit-sharing partnerships.

◇ Competitors: Evolve from low-level competition to coopetition (collaborative competition) that shares incremental industry opportunities.

◇ Capital Resources: Move from speculative capital games to an industrial value-creation partnership model, aligning investment with long-term ecosystem growth.

◇ Government Relations: Upgrade from basic policy support to mutually beneficial collaboration grounded in regional economic development logic.

◇ Service Providers: Transform from fee-for-service engagements to mission-aligned partnerships that capture long-term opportunity value.
 
Chinastone solutions

1.    Shared-Destiny Community (Tier-1 Partners) Business Partnership Mechanism Framework

Mission-Aligned Community (Tier-2 Partners) Business Partnership Mechanism Framework

Interest-Sharing Community (Tier-3 Partners) Business Partnership Mechanism Framework
   
2.    Industrial Chain Localized Business Partnership Model Design

Supplier Business Partnership Model Design

Channel Business Partnership Model Design

Competitor Business Partnership Model Design
 
3.    "Five-Pronged" Initiative for Local Government Industrial Clusters via Business Partnership Mechanism