Source: The New Silk Road Review

Sanpower Group is a multi-national conglomerate whose core business engagements are within the information technology and modern service industries. The Group benefits from the synergy among its three industry sectors of New Healthcare, New Consumption, and New Finance. The Group owns a number of listed companies, including Hiteker, Nanjing Cenbest, IDT International, Jinpeng Yuankang, Fujitsu Electronics as well as key global private enterprises such as Hisap, Funtalk Telecommunications, Hirealty, Guangzhou Jinpeng, Tianxia Financial Service, China Newsweek, An Kang Tong, Mecox Lane, Lashou.com, House of Fraser (UK), Brookstone (US), and Natali (Israel). The Group has controlling stakes in more than 100 subsidiaries and has a 100,000-strong global workforce, including 40,000 from our non-Chinese enterprises. With total assets in excess of RMB 120 billion and annual gross sales amounting to RMB 130 billion, the Group is on the list of “China’s Top 500 Enterprises” for thirteen consecutive years (132nd) and is ranked 19th in “China’s Top 500 Private Enterprises” and 10th in “China’s Top 100 Private Service Enterprises” by All-China Federation of Industry and Commerce (ACFIC). In recent years, Sanpower has been seizing opportunities under “globalization”and the “new normal”, and driving along the fast track of the Belt and Road Initiative. On the one hand, the Group has been acquiring and merging leading international companies to occupy the high ground for future development. On the other hand, it has been actively engaging in cultural exchanges to facilitate its global development, and has explored a new way for Chinese private companies to join in the activities around the Belt and Road Initiative.

Committed to both “bringing in” and “going global” to take the high ground in industry development

Yuan Yafei, Chairman of Sanpower Group, believes that China is at a critical time of economic transformation. “Going global”to merge and acquire outstanding foreign companies and “bringing in” their leading operation model and management system is the best way for domestic companies to overtake international rivals and accomplish quick transformation and upgrade. In this regard, he created a brand new idea of “defining future with future”- using the best that the modern world can offer to pave the way for China’s future development. And M&A of this purpose helps to lay foundation for our own future. Based on this idea, all “going global” activities by Sanpower have one thing in common: there have been no acquisitions of foreign properties or mineral resources, but only acquisitions of leading brands, management systems and business models.

The broad health industry is one of Sanpower’s focuses in recent years. When the Group started to build footprints in the elderly care industry in 2008, it picked An Kang Tong, the then largest home-based elderly care company in China, as the first target, and acquired it in 2012. Founded in 1998, An Kang Tong was facing challenges of transformation and upgrade after over 10 years of development. In 2014, as one of its “going global” activities, Sanpower acquired Natali, a leading health service provider in Israel,a Belt and Road country. As the largest healthcare service and home-based elderly care service provider in Israel, Natali serves half of the senior population in the country, providing services including 24*7 remote ECG monitoring and diagnosis, emergency calls and emergency treatment, security and aid services, and nursing services. And its telemedicineand emergency medical services have a local market share of over 50%.

Afterthe acquisition, Sanpower brought Natali’s leading technology and management expertise on home-based elderly care and telemedicine to China, which allows the elderly in China to access world-leading services, which is also in line with the national policy of the supply-side reform. Chairman Yuan noted that, before Natali entered the Chinese market, An Kang Tong had less than 100 thousand clients in spite of 10 years’ development. After the introduction, the number of An Kang Tong’s clients has grown exponentially over the past two years. As of March this year, An Kang Tong has over 4.7 million clients with its business reaching to nearly 20 provinces and cities in China. It is estimated that, by the end of this year, the number of clients will exceed 10 million.

At the same time, Natali’s telemedicine technology is being introduced into China as well. In March, 2016, during her visit to Israel, Vice Premiere of China Ms.Liu Yandong, together with Israeli Prime Minister Netanyahu, witnessed the launch of the China-Israel Remote ECG Healthcare Cooperation Project, which was signed by Municipal Government of Changzhou and Natali. By the end of last year, the Changzhou Remote ECG Center was launched. Leveraging Natali’s experience and technology in remote healthcare services and resources of Wujin People’s Hospital, the center provides patients with remote ECG monitoring and medical services that combine real-time ECG monitoring at home, online real-time diagnosis and offline quick treatment, and emergency aid and home nursing services utizing its smart cloud platform and high-tech smart devices, which greatly reduced the morbidity and mortality rate of patients. This is the first remote healthcare B2C pilot project championed by NHFPC. On March20^th2017,during Prime Minister Netanyahu’s visit to China, Natali singed a cooperation framework agreement with Gulou District of Xuzhou Cityon telemedicine and senior care project, which will bring Natali’s remote ECG medical system and smart senior care service system to Xuzhou.

And as for Natali, the Israeli senior care service and remote healthcare market has been relatively saturated. The acquisition by a Chinese company not only opens up Chinese market, but also accelerates Natali’s global expansion. This acquisition benefits both the Chinese and the Israeli side as expected.

In 2014, Nanjing Cenbest, a listed subsidiary of Sanpower Group, acquired House of Fraser (HOF), a time-honored British department store. In December, 2016, HOF opened its first Chinese flagship store in Nanjing, bringing 20 house brands and many unique buyers’ system brands, and “differentiated” fashion to Chinese consumers. At the same time, HOF British stores starts to offer more Chinese products such as silk, brocade, porcelain crafts, and Chinese style household products. With these Chinese elements added, HOF becomes a distinctive British department store.

In 2014, Nanjing Cenbest, a listed subsidiary of Sanpower Group, acquired House of Fraser, a time-honored British department store. The photo above is the picture of the flagship store on Oxford Street of House of Fraser.

As Yuan Yafei said, “Sanpower, through its engagement in the Belt and Road Initiative and expanding global footprints, not only brings foreign quality brands, advanced technology and services into China to facilitate the supply-side structural reform, but also drives ‘Intelligent Manufacturing in China’ and ‘Chinese Brands’ to go global.”

Committed to focusing on both cultural and business exchanges to accelerate the progress of going global

Economy is highly relevant to culture. President Xi once strategically pointed out that “It’s difficult for a business to sustain development without the support of culture.” By proactively joining the Belt and Road Initiative, Sanpower not only strengthens business cooperation with related countries, but also attaches great importance to the cultural exchanges with B&R countries. The Group identifies culture as a priority, and considers cultural exchanges as an important force that can build trust with people in the destination countries of investments, demonstrate the soft power of Chinese companies, and drive business exchanges and cooperation.

After the acquisition of HOF, Sanpower gradually built connections with the UK in culture and charity, and achieved great results. 2015 saw the launch of China-UK Year of Cultural Exchange. In October 2015, during President Xi’s state visit to the UK, a memorandum of understanding (MOU) was signed for the United for Wildlife(UfW), co-sponsored by Chairman Yuan Yafei and The Duke of Cambridge, Prince William. The fund was created in March in an agreement made by Mr. Yuan and Prince William in Yuannan during the Prince’s first visit to China. And Sanpower facilitated the launch of this international project with great commitment. This cooperation is an important milestone for both parties, as it is not only the first international cooperation on wildlife conservation between the British Royal Family and a Chinese enterprise, but also the first wildlife conservation fund that Prince William co-sponsored with a Chinese entrepreneur.

      

In October, 2015, Yuan Yafei (rear left), Chairman of Sanpower Group, co-sponsored the Wildlife Conservation Fund with Prince William (rear right). The photo above is a picture of Yue lei (front left), Senior Vice President of Sanpower Group, and Nick Booth (front right), the Chief Executive of the Royal Foundation signing a MOU on behalf of the two parties.

The launch of this fund and its early achievements in Africa have attracted attentions on Sanpower Group from the UK society and international environment protection organizations, won great acclaim, and improved British employees’ recognition and sense of achievement for the Group. As a key participant and facilitator of the Fund, Mr. Yue was highly recognized by Prince William and the Royal Foundation for his strong commitment and efficient implementation during dialogues and negotiations. In March 2016, he was appointed by Prince William as the first Chinese ambassador of UfW to make further contribution to the conservation of wildlife with Chinese strength and plans.

Kenya is the strategic stronghold in Africa for the Belt and Road Initiative. Although Sanpower has not built business presence in the country, its conservation activities have seen results. The UfW co-sponsored by Sanpower Group and the British Royal Family has set up two wildlife observation posts in Africa in the first phase of the project, with one in Kenya, and the other in Botswana. During the next phase, Sanpower will expand its activities in southern Africa by building two more wildlife posts.

Yuan Yafei noted that accomodating to local culture through such activities is an important way for Sanpower Group to win more overseas recognition. Under the guidance of the Belt and Road Initiative, more and more Chinese companies are “going global” to participate in global competition and explore foreign markets. In addition to business cooperation, blend in local communities, improve brand image and the recognition of companies among local residents through cultural exchanges, international public benefit activities and other “soft power” have become mature and smart ways for new private companies to “go global”. These may also assure a steady and good development after the companies built their global presence.

During this “golden decade” of China-UK relations, people-to-people exchanges between the two nations are expanding through more channels, on more levels and to a wider scope. Sanpower has been an active participant, facilitator and contributor in this process. During the “Nanjing Week” of the 2016 London Design Festival 2016, as the ambassador of “Nanjing Week”, Chairman Yuan led the Group in organizing and participating in multiple public welfare events and cultural exchanges.

During “Nanjing Week” of the 2016 London Design Festival, Sanpower Group organized and participated in multiple cultural exchanges. The photo above is a picture of Chinese and British actors/actresses performing a new Kunqu opera The Peony Pavilion in the Flagship store of House of Fraser at Oxford Street, which was one of the “Tang Xianzu Meets Shakespeare” activities in the “Nanjing Week”.

It is also worth noting that, during the “Nanjing Week”, on September 23^rd, 2016, in another cooperation with the British Royal Family, Sanpower Group co-hosted a Tale of Two Pagoda event with Historic Royal Palaces to sponsor the maintenance and restoration project for a Chinese style Pagodas in the Royal Botanic Gardens, Kew.

In September, 2016, Sanpower hosted a Tale of Two Pagodas event to sponsor the restoration of a Chinese style Pagoda in the Kew garden. The photo above is a picture of Master Da Chu, abbot of Nanjing Jianchu Temple blessing the Pagoda in Kew Garden.

The event was attended by Ms. Hu Pinghua, wife of Liu Xiaoming, the Chinese Ambassador to Britain. In her remarks, she said that Sanpower’s support for the restoration of the Pagoda “will contribute to the people-to-peole and culture exchanges between China and the UK, and add another highlight to the Golden Era of bilateral relationship”.

Yue Lei, Senior Vice President of Sanpower Group commented that the event was aimed at protecting overseas Chinese historical and cultural buildings, developing and expanding Chinese culture in Britain, and promoting close cooperation between China and Britain in fields of culture and business. He also said that China was facilitating the progress of the Belt and Road Initiative, which is a double-core strategy of developing trade and culture. Relationships among countries not only need tangible support in trade cooperation, but also require intangible assistance in cultural exchange. In the process of “going global”, Sanpower attached great importance to cultural and people-to-people cooperation with the local communities, which yield great results.

The key to sound relations between two countries lies in the affinity between their people, which is built upon mutual understanding. Just as President Xi pointed out in his remarks, “promoting ‘mutual understanding’ among people is an important task in and a critical basis for the Belt and Road Initiative.” And the mutual understanding, respect for culture, and vigorous people-to-people exchanges are vital basis for President Xi’s visions.

Committed to pursuing synergy between M&A and productivity to continuously explore the Belt and Road market

Sanpower has a strategic vision of striving to become a sustainable world class conglomerate with Chinese characteristics. To achieve this vision, Sanpower will press ahead in global development, and has identified two fronts. One is industry M&A in developed nations in Europe and North America, and the other is building footprints and strengthening capacity cooperation through investment around B&R countries, which are mostly developing countries with great space and potential for development in many areas and are highly attractive to foreign investments.

Since 2014, Sanpower Group has been engaging in a series of overseas M&A activities, and actively exploring cooperation and communication in multiple dimensions, at multiple levels and in multiple areas to have more partners along the Belt and Road. As of now, the Group has built connections with Singapore, India, the Czech Republic, Slovenia, Egypt and nearly 40 other B&R countries. Officials from the embassies of these countries in China have visited Sanpower, and Sanpower has also paid return visits to explore opportunities for mutual beneficial partnerships. The Provincial Government of Jiangsu and Municipal Government of Nanjing have also identified Sanpower as a role model for companies in the Belt and Road Initiative, and have organized multiple seminars related to the Belt and Road Initiative at Sanpower Group.

The sound of camel bell is still reverberating after thousands of years, as a new chapter to the cooperation along the Silk Road has been written. Three years since the Belt and Road Initiative was announced, Sanpower Group has been taking advantage of the momentum of the Initiative, and made impressive achievements. Yuan Yafei said that Sanpower will continue accelerating its “going global” efforts, especially in expanding business presence in B&R countries, integrating global resources, enhancing capacity cooperation to bring benefits to people of all B&R countries with advanced technology and high quality products.