In 2014, Sanpower Group actively adapted to the new economic normal, conformed to the new changes in the development stage, fully accelerated the pace of international development, showing a new situation and normal of diverse advancements, overseas M&As, industrial collaboration, and management transition.

Presently, Sanpower Group's total assets have exceeded 70 billion and its gross annual sales have reached 800 million yuan, with 80,000 employees worldwide, of which 20,000 are expatriate staff.

Presently, Sanpower Group is on the list of “China’s Top 500 Enterprises” for the eleventh consecutive year (188th) and ranks 27th in “China’s Top 500 Private Enterprises” and 9th in “China’s Top 100 Private Enterprises of Service Industry” by All-China Federation of Industry and Commerce (ACFIC).

"In the face of China's economic development in the new normal, how should private enterprises rise to the challenges and seize the opportunity to achieve better development? First, the concept of enterprise development must be changed; second, one should reflect on the development of the enterprise by standing in the height of the country; third, the core competitiveness of enterprises must be enhanced by "going out and bringing in". Yuan Yafei so concluded.

The concept of enterprise development must be changed

"The concept of enterprise development must be changed!" Yuan Yafei said firmly.

First, the enterprise's profiting model that relies on capital gains must be changed. "This view is what I had always insisted from the 18th CPC National Congress. Therefore, in the previous three years of the18th CPC National Congress,Sanpower Group didn't bid for even a single patch of land, and has bought a variety of promising manufacturing businesses including SOUTEC Mobile Phone Factory, Hiteker DVD, Foshan Cable Factory, Hainan Cable Factory, etc., which has accumulated a lot of capital for the the M&As and expansion of the enterprise during the recent years." Yuan Yafei said.

Second, the Internet thinking will change the world, to which all businesses must adapt. Yuan Yafei said that the essence the Internet thinking is "to use information symmetry as a tool to realise value arising from information asymmetry." Information symmetry has no value in itself; rather, the future survival of all enterprises lies exactly in how to spot the information asymmetry from a mass of data that arise from information explosion so as to provide customers with value.

Sanpower Group's acquisition of Lashou.com is also based on this consideration.

Reflect on the development of the enterprise by standing in the height of the country

"To reflect on the developing plan of the enterprise by having the mind in solving the problems of the country is in fact the enterprise's largest business opportunities. For example, population ageing, uneven regional development, et.c,, are not only the drawbacks to China's economic development, but also means a huge market potential, as well as an enormous business opportunity. " Yuan Yafei, who has been in the business for many years, so perceived.

"Three years ago we bought the largest homecare service company in Shanghai – An Kang Tong, and bought Israel's largest telemedicine and homecare services company Natali in 2014. We shall introduce the world's most advanced aged-care service technologies and models so as to provide the vast majority of of China's older users with specialised services. " Under the leadership of Yuan Yafei, Sanpower Group always walk in the forefront of the times.

"On the other hand,  to grasp the hot spots of the reform is also the key in the enterprise's development." Yuan Yafei said, as regards healthcare reform, the State Council is piloting the restructuring of public hospitals. Sanpower Group has seized this opportunity to take the first move, and participated in the restructuring of Xuzhou Third People's Hospital, thereby officially entering the healthcare industry. "This is the industry with immense growth potential in China. "

One must be strong to forge iron

Yuan Yafei  defined Sanpower Group's main business as " modern service industry characterised by informatisation", while retail is the most central part of them.

In recent years, the development of China's e-commerce has exerted an enormous impact on thee domestic traditional retail. "This is because China's retail itself is extensive, without any value, – the essence of business is whether to give customers value."

Last April, Nanjing Cenbest, a subsidiary to Sanpower Group, bought 89% share of the 165-year-old British department store House of Fraser (HOF for short). HOF has extensive experience in the department store industry and supply chain resources, as well as a mature business model in in-house brands and buyers mode. "To go out and bring in by international M&As is an important means for Sanpower Group to quickly enhance its core competitiveness." Yuan Yafei said with a smile.

Yuan Yafei said that China's department store has long been essentially the leasing model with point deduction management, in which the suppliers paid the admission fee and marked up the price of products before they offered any discount. Therefore, they could not provide real value to consumers. Nanjing Cenbest must learn from HOF's management experience if it hopes to realise the transition from joint operation leasing to merchandising services.