Dear Friends of Sanpower Group,

Greetings to you all!

As the Chinese New Year is approaching, on behalf of 100,000 employees from Sanpower Group, I’d like to extend my best wishes to all of you. We wish you and your family a very happy Chinese New Year.

2016, the Year of Implementation for Sanpower Group, has witnessed our tremendous achievements as we further defined our grand strategy that is pillared by the synergetic developments of the three major sectors, namely, Broad Consumption, Broad Health and Broad Finance.

Regarding Broad Consumption, we have become the strategic partner and major shareholder of Wangfujing Group; our successful implementation of Brookstone in China is taking the lead to transform the domestic conventional consumer electronics industry to be more unique, novel and innovative; the opening of the first stores of Hamleys and House of Fraser created an unprecedented sensation to the Brick & Mortar retail business in China; and we also presented a world class lightshow in the Sanpower International Plaza in Xinjiekou Nanjing after we finished the renovation.

For Broad Health, Natali entered the Chinese market and the first B2C-modeled telemedicine pilot project was officially launched in Changzhou. The number of subscribers of An Kang Tong has exceeded 4 million, earning it the prestige of the largest home-based senior care company in China. Moreover, we acquired China Cord Blood Corporation (NYSE：CO) from the U.S. and Cordlife Group (SGX：P8A) from Singapore and then became the largest cord blood bank company worldwide. At the beginning of 2017, we acquired Provenge, the only cellular immunotherapy medicine in the world for prostate cancer treatment, which puts us in the leading position in the global precision medicine industry.

For our Broad Finance, we acquired Pengyuan Credit Rating, one of China’s leading Chinese credit rating companies, obtained a full service license for our third party payment company, Tianxia Pay, and established Liberty China through a joint venture with Liberty Mutual Group U.S. Tianxia Financial Service was founded aiming to be the most competitive private financial holdings company in China.

Over the past year, all of our overseas enterprises successfully began operations in China. This achievement wouldn’t have been possible without the trust between our domestic and overseas businesses. Trust is the precondition for all the work we do. Only those that are narrow-minded and lack wisdom will staunchly subscribe to the philosophy of “seeing is believing”, meaning one is not willing to do anything without immediate and tangible results. This stubbornness only reveals their rigid thinking and lack of self-confidence. By contrast, those with true wisdom, kindness and confidence are able to trust, love, and actively listen to others. As Sanpower continues to blossom into a global enterprise, we should also work to trust our colleagues and our friends. We’ve brought together talents from all around the world, wherever their talent lies. Only trust can gather strength; only trust can make us successful.

At Sanpower, there are no faraway or isolated lands. As long as we have love, we will be one village. Sanpower’s development could not have been achieved without the concerted efforts of our employees at home and abroad, especially the care, support and assistance from our clients, partners and friends from various industries. We are truly grateful for your efforts and appreciate all of your contributions. We firmly believe that with you as our continued companion, together we will all realize the prosperous future of Sanpower Group.

Once again, we wish you a happy Chinese New Year! Thank you!

YUAN Yafei

Chairman of Sanpower Group

Jan 29th, 2017