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LeEco, China`s new tech giant

LeEco, China`s new tech giant

When people talk about China’s tech scene, there are the obvious giants: Baidu, Alibaba, and Tencent. Then there are the big state-linked firms (the telecoms, Huawei, and ZTE), the internet players (Sina, Qihoo), and the hot mobile startups (Xiaomi, OnePlus). But there’s a Chinese company that often doesn’t get mentioned as one of the big names: LeEco formerly LeTv.

 

 

 

Just a couple of years ago it primarily operated a streaming video site. But as its popularity grew, Letv (over 50 million daily users & over 730 million active monthly users) has rebranded into LeEco and branched its business out aggressively in numerous directions: it now operates 7 Ecosystems. The company now makes smartTV`s as well as smart phones and smart bikes. And a whole range of other smart devices and electronics. It has a cloud computing division. It offers internet finance products. It’s working on a smart electric car. It now has a music division (Le Music), a film division (LeVision Pictures), and a sports division (LeSports). What was once just an internet video company has branched out into a multi-armed technology and entertainment company.

 

 

Le Holdings and Its Seven Business Ecosystems

 

Recently, LeEco has been taking a different tack: splashing cash to acquire a wide variety of companies. In late spring, LeEco spent almost US$500 million buying two Chinese real estate companies so that it could expand into that space. Just a few weeks ago, it bought US TV maker Vizio for US$2 billion. This week, it was confirmed that the company has nabbed a bigger chunk of Chinese smartphone maker Coolpad. It was also confirmed recently that LeEco is working on some sort of deal with Netflix (at the end of last year Letv marked another milestone in its globalization - Le Super TVs started to be sold in the US). At present, Le Eco has been officially established in the US, India, and Hong Kong and the "Beijing-Los Angeles-Silicon Valley" strategy has proved hugely successful from its conception.

 

 

There are genuine questions about some of LeEco’s funding habits, and whether or not the company can sustain its breakneck pace of expansion that it has been keeping up over the past several years. But with a market cap of more than US$13 billion, LeEco is already bigger than some of China’s most storied internet and tech companies.

 

 

LeEco is both polarizing and opaque: some think the company is one of China’s most innovative and exciting tech firms, however until some of LeEco’s bigger projects – like that smart electric car come to fruition it will be difficult to judge whether their expansion has been thought out.

 

 

LeEco is now a major player in China’s tech scene, with the ability to influence industry sectors ranging from streaming video to smartphones to autonomous vehicles. LeEco certainly hasn’t overtaken any of China’s true giants – it’s not yet on the level of a Tencent or an Alibaba. But increasingly, it can be argued that LeEco deserves a spot at the table, and a place in the conversation.

 

 

LeMall is ranked among the top three B2C e-commerce websites in China

 

 

 

Alibaba, the future is Aliyun

Alibaba, the future is Aliyun

At the start of the year Alibaba announced that they had crossed the RMB 3 trillion mark in gross merchandise volume (in excess of $450 billion USD). Founder and CEO Jack Ma has now announced that the company's dream is to reach 2 billion people around the world with his business and hit a transactional volume of $1 trillion. That would make them the equivalent of being the fifth largest country in the world by GDP.

 

 

Overview.

China's e-commerce market is dominated by Alibaba. Though the company operates through a unique combination of business models, Alibaba's core business resembles that of eBay. Alibaba acts as a middleman between buyers and sellers online and facilitates the sale of goods between the two parties through its extensive network of websites. The largest site, Taobao, operates as a fee-free marketplace where neither sellers nor buyers are charged a fee for completing transactions. Instead, the nearly 7 million active sellers on Taobao pay to rank higher on the site's internal search engine, generating advertising revenue for the company.

 

 

While the majority of sellers utilizing the Taobao website are smaller merchants, Alibaba also has a dedicated space for larger retailers: Tmall is the e-commerce site owned and operated by Alibaba that caters to well-known commercial brands that would normally operate on the high street. Even though Tmall has a fraction of the number of active sellers listed on Taobao, Alibaba is able to generate revenue from deposits, annual user fees and sales commissions charged to retailers utilizing the site.

 

 

In addition to its e-commerce sites, Alibaba has emerged as a player in the Chinese financial system. To combat customer concerns over the security and validity of transactions completed online, Alibaba created Alipay. As a secure payment system, Alipay protects buyers in the event sellers are unable or refuse to deliver goods sold. In addition to this platform, Alibaba also generates revenue from its newly launched micro-lending business arm that caters to individual borrowers.

 

 

The Alibaba Marketplaces

Alibaba's marketplaces are obviously their core revenue streams. As such, these will be the biggest drivers of growth. As of the most recent quarter, Alibaba had 423 million annual active buyers and 410 million monthly active users and transactional volume for the quarter was $115 billion - a 24% increase over the same quarter last year.

 

 

However the Chinese market is yet to be fully penetrated, by their own estimates they currently only reach about 55% of potential consumers. Furthermore it still does not have enough traction in international markets to claim the kind of long-term growth that they would require to become a truly global household name.

 

 

The future is Aliyun.

The next growth driver for the company is a brand that many do not recognise, but is nevertheless growing at a tremendous rate that may one day outdo its rivals: the cloud and specifically Aliyun Cloud. With data centers around the world having a first quarter of 2016 growth of 175% it is definitely a growing entity which Alibaba is well positioned to grow in part due to preferential government policy, regional focus and domain expertise. Aliyun certainly has the potential to become one of the growth drivers of Alibaba's future considering it currently accounts for less than 2% of its revenue.

 

 

Outlook.

The entire global market is potentially at their doorstep, not only for marketplace services, but also cloud capabilities. Not forgetting their other web and content properties like UCWeb with 400 million users, content distribution platform Youku Tudou (newly acquired) and web payment service Alipay, which has 400 million registered users and a transaction volume of $519 billion (as of 2015).

 

 

 

 

Goodbaby: baby boom

Goodbaby: baby boom

Established in 1989, Goodbaby Group is China's largest and the world's leading provider of infant and children's products such as strollers, car seats and child safety devices. Goodbaby is a professional production, manufacturing and design company with customers located in more than 70 countries and regions worldwide. According to a survey from Frost & Sullivan, in each sale of 1000 baby carriages in North America, Europe and China, 435 come from Goodbaby Group. In 2007, Goodbaby Group was listed as one of the `Top 50 Fastest-growing Companies in the World' by Boston Consultancy. Currently, the company owns four global R&D centers, 11 subsidiaries, has 35 branch offices and more than 13,000 employees worldwide.

 

 

Today they have over 3,200 stores in China, including multi-brand children's shoe stores, Mothercare shops and baby superstores, but this number is due to grow to 7,000 to 8,000 in the next few years in the wake of the relaxation of the One-Child-Policy.

 

 

The group has another listed company: Goodbaby International Holdings Ltd, which was floated on the Hong Kong stock market in 2010. It focuses on baby-care products design, production and sales, while Goodbaby China will sell those products in its network of shops.

 

 

Analysts believe China has more than 16 million to 17 million babies born each year adding that baby-related products had in recent years triggered a billion dollar market estimated $46.5 billion in 2016, involving both Chinese and Western players who needed to understand each market's specific needs.

 

 

To capture this opportunity Goodbaby launched a stroller called Pockit, able to be folded and carried onto passenger planes, which became an international best-seller. The group added two further brands it acquired in 2014: Germany's Cybex and US brand Evenflo. In particular to capture, the market for medium and high-end baby products.

 

 

Amongst Goodbaby`s leading competitors are:

Combi (Shanghai) 

Pigeon 

Procter & Gamble (China) Ltd. 

Zhejiang Beingmate Scientific Industrial Trading 

 

 

Hanergy Solar Group (2016 Update)

Hanergy Solar Group (2016 Update)

Beijing based Hanergy is China`s largest, privately owned, producer of renewable energy. The group operates in the hydropower, wind power and the solar power fields, whilst it`s focus has now shifted towards the latter, the company has become the largest thin film solar panel producer in the world and has a presence in Europe, North America and Asia-Pacific. The company was featured in the MIT Technology Review’s “50 Smartest Companies of 2014” ranking,  due to its almost 1000 patents, mostly related to photovoltaic innovation.

 

 

Currently Hanergy’s installed capacity for hydropower exceeds 6 GW, whilst the same figure for wind power stands at 131 MW according to the company’s reports. The company also has the world’s largest, privately built, power station, Jin’anqiao. Its Wind power plants are in Jiangsu and Ningxia provinces.

 

However, today, the core business and focus of the company is the development and production of photovoltaic panels. Hanergy has made striking progress in becoming a global leader in the field, considering it only started the development of its photovoltaic arm 5 years ago. Local media in Guangdong, province where Hanergy launched its solar panel operations, coined new term – “Hanergy speed”. The company claims its annual capacity for producing PV panels is now over 3 GW, which would translate to 4 billions kWh of electricity annually. The group has signed construction agreements for solar power plants with a 4 GW total capacity in Inner Mongolia, Ningxia, Jiangsu, Hainan, Shandong, Hebei and other provinces, as well as in several European countries.

 

Hanergy focuses on thin film photovoltaic solar panels. Production line start-up costs are relatively high whilst efficiency is lower than traditional silicon panels, but the lower production costs and consistently improving transformation rate should increase thin film panels commercial attractiveness. Over supply in the solar industry forced numerous companies out of business, some of which were rescued by Hanergy Solar Group (HNS), in which Hanergy Group acquired a controlling stake in February this year.

 

Hanergy Group and Hanergy Solar Group have been aggressively expanding in both the domestic and international markets. It recently signed a partnership with IKEA, where it will furbish its retail stores with solar panels in the UK and China. Furthermore, by acquiring MiaSole and Global Solar Energy in the US and Solibro in Germany it has significantly strengthened its R&D capacity The latter has been working on improving conversion efficiency of Copper Indium Gallium and Selenium (CIGS) panels since the acquisition, with highest efficiency rate of patented panels being 15.5% conversion, while the latest lab tests are reaching 19.6% conversion: meaning about a fifth of sun’s radiation is being converted into electricity. Moreover, Hanergy has signed an agreement with Aston Martin Racing, and will explore possibilities of solar technology application in motorsports.

 

 

However, despite all positive news, Hanergy’s future plans seem to be both risky and reliant on Governmental patronage. The group’s investments into wind and solar farms are only 30% - 40% funded by the Hanergy itself, the rest of the capital usually coming from local governments. If Hanergy fulfills its expansion plans, it will have a solar panel production capacity of around 6.6 GW, while globally added capacity was just less than 40 GW last year, with a quarter of it coming from China. It believes that its markets success is dependent on it`s development and delivery to customers of its latest CIGS panels and considering Hanergy does not currently figure among the top sellers globally, all will indeed depend upon the volume of its CIGS panels shipped to end users.

 

 

Hanergy launches full-solar-power vehicles with daily range of 80km (2016 Update)

 

 

Hanergy Board chairman & CEO Li Hejun launched 4 new fully solar powered vehicles. The new series of vehicles includes the Solar O, Solar L and Solar A and sports car 'Hanergy Solar R” each targeted at different groups of users.

 

 

With a solar energy conversion rate of 31.6%, Hanergy's gallium arsenide (GaAs) dual-junction solar cell was awarded with a World Record Certificate by the World Record Association at the launch event. Previously, on 5 January, the technology had been recognized by the US National Renewable Energy Laboratory (NREL) for its record efficiency.

 

 

The four new full-solar-power vehicles are integrated with flexible, highly efficient GaAs solar cells, maximizing the area covered (3.5-7.5m2). Through a series of precise control and managing systems (including a photoelectric conversion system, an energy storage system and an intelligent control system), the zero-emission vehicles use solar energy as the main driving force. With 5-6 hours of sunlight, the thin-film solar cells can generate 8-10kW-hr of power per day, allowing the vehicle to travel about 80km (equivalent to over 20,000km annually), and hence satisfying the requirements for city driving under normal circumstances.

 

 

Users can manage different travelling and weather modes in a real-time, mobile, networked and smart way, selecting charging modes in accordance with varied weather conditions through Apps on their mobiles. In everyday-use mode, the vehicles can charge themselves with solar energy while traveling, making 'zero charging' possible for medium- and short-distance journeys. So, unlike traditional electric vehicles, the full-solar-power vehicles hence no longer need to rely on charging posts, eliminating the concept of 'distance per charge'. For weak sunlight or long-distance travel, the lithium batteries in the vehicle can get power from charging posts, enabling them to travel a maximum of 350km per charge.  

 

 

Hanergy claims that the four new vehicles are the first full thin-film solar power vehicles that can be commercialized, breaking the bottleneck of poor practicality of previous solar-powered vehicles. The firm has also signed a framework agreement with Foton Motor to cooperate on developing clean energy buses.

 

China State Construction Engineering...

China State Construction Engineering Corporation

China State Construction Engineering Corporation Limited (CSCEC) is China’s largest construction and real estate conglomerate. It is a public company listed on the  Shanghai Stock Exchange and ranked 37th among Fortune Global 500 companies in 2015.

 

 

Specializing in building construction projects, real estate development and investment, infrastructure construction and investment, as well as design and surveying operations. The Company’s main business activities comprise construction of residential projects, undertaking of municipal public works, road works and building construction works; undertaking of airports, housing, roads, bridges, water supply, medical facilities, hotels and tourism, government projects and sports facilities and other projects; real estate development activities; construction of highway, railway, municipal, energy, petrochemical, water, environmental protection and telecommunication projects and other infrastructure works, as well as architectural design, urban planning, engineering investigation, municipal public work design business, among others. Established in both domestic and international markets, China Construction operates in more than 20 countries and regions around the world.

 

 

National Growth.

The Company continued to enhance its infrastructure investment, construction and operation standards through high-end integration, investment/financing and business model innovations, revolving around the three major national strategies: the “Belt and Road”, “Jing-Jin-Ji Integrated Development” and “Yantze River Economic Belt”. During 2015, the value of newly executed infrastructure contracts exceeded RMB300 billion for the first time and hit RMB 314.0 billion, up 26.7% YoY. The Company has devoted itself to creating a fully integrated investment platform for “new urbanization” construction initiatives focusing on ten selected tier-1 and 2 cities.

 

 

In international contracting, China Construction is the countries largest international contractor and also the first to launch international contracting in China. With the encouragement of the Chinese government and financing assistance from the Export-Import Bank of China, CSCEC has taken increasingly bold steps as a builder and investor of overseas projects. By the end of 2015, its total contract value for overseas business was US$80.7 billion and total turnover of US$52.4 billion. China Construction has so far completed over 5,600 projects in some 116 countries and regions around the world.

 

 

Major Earnings in 2015 were: total revenue of RMB 880.6 billion, up 10.1% YoY. Specifically, revenue from the housing construction business was RMB 588.3 billion, up 6.0% YoY; revenue of the infrastructure business was RMB 141.4 billion, up 19% YoY; and that of the real estate business was RMB 142.4 billion, up 15% YoY.

 

 

Recent International contracts in include:

  • US$ 2.89 billion Pakistani Karachi-Lahore Motorway
  • Egyptian New Capital (~US$ 2.7 billion)
  • St James Suites in New Zealand, with the contract value of NZD130 million.
  • Renovation Works of 67 Municipal Roads in Libreville of Gabon.
  • Nairobi BULK Water Supply Pipeline, with the contract value of approximately USD 70 million.
  • CSCEC Middle East has been award the management facility project in Kuwait Sabah Salim University City.
  • Eastern Technological University of Panama Project with the contract value of US$176 million.
  • Oran Shopping Mall Project in Algeria with the value of US$99 million.
  • Concrete Supply Contract for a Package of Projects of China-Kazakhstan Khorgos Border Cooperation Center.
  • Crude Oil Refinery Plant in Lagos, Nigeria, with daily processing capacity of 400,000 barrels.
  • Indonesia Jakartar, Twin Tower Project.
  • Municipal road construction project of Nkayi City of Bouneza, Republic of Congo.
  • Commercial apartment development: 99 Hudson Street, New Jersey.
  • 62km Road Project in Zambia, with the contract value of ZMW177 million.
  • Dubai high-rise hotel project with the contract value equaling to US$94.82 million.
  • 190km road project in the West Province of Zambia, with a contract value of USD 200 million.
  • National Stadium Project in Ethiopia. The total contract price is USD$ 120 million.

 

 

COFCO (China National Cereals, Oils...

COFCO (China National Cereals, Oils and Foodstuffs Corp).

Overview.

 

 

COFCO Corporation is a leading supplier of agri-products, diversified foodstuffs and services in China, integrating agri-trading, logistics, processing, production and sale links, and providing grain and oil products to one quarter of global population. At present, COFCO owns over 180 processing factories domestically with 2.3 million terminal points of sale covering 952 large and medium-size cities, and more than 100 thousands counties, towns and villages.

 

 

COFCO boasts a wide range of branded products and service portfolios, including Fortune edible oil, Great Wall wine, Le Conte chocolate, Tunhe tomato products, Joycome meat products, Xiangxue flour, The Cereal Way instant noodle, Lohas fruit juice, Joy City shopping mall, Yalong Bay resorts, China Tea products and COFCO-Aviva Life Insurance, etc

 

 

A Global Challenge.

 

 

COFCO has more than 10,000 employees in more than 70 nations and regions working in various overseas markets, mainly in Asia, Latin America and Europe. It plans to further improve its capability in maritime transportation and food processing, as well as the entire supply chain services in seed, pesticide and fertilizer businesses over the next five years.

 

 

Facing increased food security issues from factors such as extreme weather and dwindling farmland resources, COFCO is increasing becoming a global giant. The company is building grain and other agricultural product supply chains, particularly with countries in the Black Sea regions and South America, the world's two biggest grain-producing areas.

 

 

Last year, COFCO invested $1.5 billion for a 51 percent stake in the agribusiness operations of Hong Kong-based Noble Group, and reached an agreement with the Netherlands-based agricultural and commodity trading group Nidera BV to acquire 51 percent of its stock, which will see a fully integrated value chain created between the firms.

 

 

The acquisitions mean COFCO now holds more than $70 billion of assets and has a storage capacity of 15 million metric tons in more than 60 nations. Its total food processing capacity has reached 84 million metric tons and it is capable of shipping 44 million tons of agricultural products via various ports around the world.

 

 

Subsidiaries

 

 

COFCO Agri-Trading & Logistics

COFCO Tunhe

JOY CITY PPT

COFCO Engineering Technology

Mengniu Dairy

China Agri-Industries

COFCO Meat

China Tuhsu

Womai.com

Nidera

China Foods

CPMC

Financial Services Dept.

Huafu Group

Noble Agri

 

 

Outlook.

 

 

COFCO has committed to deploying resources and manpower along the Belt and Road Initiative routes over the next five years to help guarantee China's food supply at home and to its key markets overseas. Though the initiative is still in its early stages of development, it has strong implications for many nations along the routes that count on agriculture and international agribusiness cooperation. Many countries along the routes are key global grain producers, and COFCO will continue to seek investment and cooperation opportunities with them over the next five years.

Sina Corporation.

Sina Corporation.

Sina Corporation is an online media company targeting the global Chinese community. Founded in 1998 and headquartered in Shanghai, it is publicly traded in the US on NASDAQ where it IPO`d in 2000. It operates some of the most popular web portals and social media sites in China which feature targeted content. Users browse most content for free, and the company monetizes its readership by selling advertisements similar to traditional media formats. Historically, the company’s web portals have been the most important channel for reaching users, but its social media platform, Weibo, continues to gain in significance for the company following its launch in late 2009.

 

 

The company sells advertisements, which constitutes about 80% of its revenue, on its web portals (please click here to see it’s various portals) and social media properties. Sina operates multiple portal sites for audiences in different places (mainland China, Taiwan, Hong Kong, etc), featuring a wide range of content. The mix of content enables the company to offer advertising clients placement in specific areas of interest (sports or finance, luxury etc) to reach their target audience. The majority of Sina’s advertising business is brand advertising, which focuses on building a brand opposed to influencing an immediate purchasing decision.

 

Pricing for advertising can vary based on the portal property, as well as which channel (sports, auto, finance, news, entertainment, etc.) the advertiser chooses. Examples of pricing are shown below (taken from the 2014 advertising rate card

·         Homepage banner (top of page, 1000x90 pixels, all 5 slots): 450,000 RMB per    day (or 100 RMB per CPM/day)

·         Homepage banner (top of page, 1000x90 pixels, first slot in rotation): 430,000   RMB per day

·         Homepage button (near top of page, 240x350 pixels): 450,000 RMB per day

·         Fashion page button (marriage section, 300x200 pixels): 15,000 RMB per day

·         Homepage text links (near autos section): 180,000 RMB per day

·         Sina news page text link (near society news, right side): 12,000 RMB per day

Major revenue streams are from customers in the automotive, fast-moving consumer goods, Internet services, financial services, IT and telecommunication industries. The company suggested that its target customers are multinationals and large domestic companies looking to build their brand within China.

 

The company’s non-advertising business includes Mobile Value Added Services, Weibo Value Added Services, online games, and other fee-based services the company provides.

 

Current company information and investor news is available via its English homepage found here

China Railway Engineering Corporation...

China Railway Engineering Corporation.

China Railway Engineering Corporation (CREC) 中国中铁 is the second largest construction contractor in the world and occupies the 102th place on the Fortune Global 500 list. The Beijing-based SOE, together with its main rival, China Railway Construction Corporation, are of vital importance to the infrastructure expansion plans of China. The Group has 46 subsidiaries, including 28 wholly owned subsidiaries, 15 holding subsidiaries, 4 branch companies and 3 joint venture subsidiaries. CREC's construction teams are found in over 1,000 cities throughout China. In addition to the core business of construction, the company does surveying & design, installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities.

 

  

 

CREC has shown strong financial performance in recent years, as is shown in its financial results below (for its full annual report please click here). The company signed new contracts worth ¥929.6 ($149.2) billion dollars last year (2013), while existing contract revenue was ¥1.38 trillion ($222.3 billion).

 

 

2013

2012

Change %

Revenue

¥540.4($86.7) billion

¥465.6 ($74.7) billion

16.1%

Gross profit

¥40.3 ($6.5) billion

¥35.6 ($5.7) billion

13.4%

Net Profit

¥9.4 ($1.5) billion

¥7.4 ($1.2) billion

26.8%

 

 

Three sources constitute the majority of CREC’s revenue: railways, highways and municipal  construction. Last year the company built 4,843 kilometres of railways, 1,008 kilometres of new highways and 199 kilometres of light railway and subway lines. Notable projects include:

 

 

 

Railway lines

Highways

Municipal works

Nanjing - Hangzhou

Dali – Lijiang

Beijing Subway

Hangzhou - Ningbo

Fengjie – Wuxi

Shenzhen Subway

Tianjin - Qinhuangdao

Kunming – Bangkok

Shanghai Metro

Xiamen - Shenzhen

118 kilometres in Ethiopia

Guangzhou Subway

Addis-Ababa railway

Jiujiang Yangtze River

Shenyang 4th Ring Road

Tbilisi railway

Bristol Grieg cable bridge (Morocco)

Liuzhou Guangya Bridge

 

 

Other business areas in which CERC operates are: engineering equipment manufacturing, surveying, design, consulting, property development and natural resources mining, with the latter two showing the fastest growth.

 

 

Increasingly important, but often overlooked, is the China Railway Resources Group (CRRG), responsible for precious metals, ferrous and non-ferrous metals extraction, as well as logistics and surveying. With a strong focus on mineral extraction, specifically gold, copper, coal, cobalt, silver, nickel, zinc, lead and graphite, the Group has an active presence in Qinghai, Xinjiang, Inner Mongolia and Heilongjiang (where CRRC and Baoan Steel have signed an agreement to cooperate over a graphite mine). International operations in Congo, Australia, Laos and Venezuela (CREC began construction in 2009 of the Anaco-Tinaco railroad, an 800 million USD project to build a 471 km high speed railway line across the country).

China National Salt Industry Corporation...

China National Salt Industry Corporation.

China Salt is a state owned company that has a monopoly over the management and production of edible salt in China. It is one example of an SOE that the public is beginning to question the need for- is salt a matter of national security in 2014?

 

 

Employees: 60,000

Subsidiaries: 46 over 22 provinces

Total assets: 34.5 billion in value

Output: 12 million tons salt annually,

7.7 million tons salt chemical products annually

 

 

China has a long history of many dynasties using salt as a major source of government revenue, with it still representing over 5% of the total national tax by the founding of the PRC. Nowadays, salt brings in only a very small percentage of national tax, but the monopoly still costs consumers an average of an extra 10 yuan per year in excessive profits.

 

 

One reason for the state affiliation decades ago was for health reasons as iodine deficiency is a common problem among under-nourished populations. As salt can be iodized or non-iodized, the government wanted to ensure that all citizens were consuming salt with iodine to resolve this problem. However, this is no longer the case for the Chinese population and in fact China is joining the developed world now in having the opposite problem, with people consuming too much iodine, also leading to health complications. Now, Chinese consumers have no option to purchase salt with iodine as there is no private market.

 

 

CNSIC has a monopoly in China on table salt, with sub-enterprises encompassing production, packaging, and distribution. The company was founded in 1950 and falls under the administration of the State Council. Regulations in China prohibit salt from being sold across regional lines or from private citizens selling their own manufactured salt. This particular law led to the removal of all salt listings from Taobao’s marketplace in March 2013.

 

 

One negative outcome of the monopoly is in the food industry, in which there have been reports of food product manufacturers, such as soy sauce and other seasonings, illegally using industrial salt rather than table salt in their products to cut down on costs.

 

 

China’s rising global brands: how...

China’s rising global brands: how far can they go?

It’s no secret that a significant share of the goods we use in our lives are produced in China. On average 15 to 20 percent of imports come from the Middle Kingdom. Most people assume that, while these goods are manufactured or assembled in China, the designing and branding is actually done elsewhere. Now, however, a growing amount of “China’s” companies are offering their own products to foreign customers. Not many Chinese brands could be called truly global, but the trend is changing. Whether it is Haier’s mini-fridge aimed at American college students or a new Xiaomi smartphone, these Chinese branded consumer goods are appearing in our daily lives more and more often. What kind of Chinese companies operate outside their country? What are the differences among them? And most importantly, how will this trend continue to develop and what Chinese companies are successfully competing with their international peers in the global market?

 

Adopted in 1999, then revised in 2006 China’s Go Out Policy (走出去战略),, is boosting Chinese companies ambitions abroad. Despite being vaguely worded, the document still represents a State-level desire to use business ties to increase China’s global soft power. It mostly mentions investing, but another very important point of the document encourages businesses to familiarize European and American (sic) consumers with Chinese brands.

 

There have been 3 stages of Chinese companies’ expansion into foreign markets: in late 90’s and early 2000, after 2007 and since 2012. In the first case, companies such as Lenovo, Haier, ZTE and Huawei were looking for opportunities to expand their businesses abroad. In the second stage, money-loaded Chinese corporations rescued or swooped on tumbling foreign business during the Great Financial Crisis (GFC). Geely and Sany, for example, spent relatively little money on gaining valuable knowledge and IP.

 

Most recently businesses, such as Dalian Wanda group feel the danger of a slowdown in Chinese economy, especially in the property market, and are looking at ways to diversify or expand their portfolio of investments beyond China’s borders.

 

Here China Brain provides a selection of brief case studies of Chinese brands that are pursuing various paths to global success and offer a good starting point for those who are exploring this topic in detail.

 

White Goods

Haier

 

Haier is the largest white goods manufacturer in the world in terms of volume, and in 2008 it became world’s largest refrigerator manufacturer. Shandong-based SOE’s CEO Zhang RuiMin has been named as one of the most innovative entrepreneurs globally. The multinational’s success, and even its name, can be traced back to its joint venture with German refrigerator manufacturer Liebherr in 1980’s. The company has presence in all continents, and has acquired competitors in Italy, New Zealand and the US. Haier’s revenue in 2013 was over ¥62 billion ($9.98 billion), while its profits surpassed ¥2 billion ($321 million) mark. Its produces a wide range of goods including air conditioners, wine coolers, washing machines, computers and even mobile phones. Haier is and will remain a successful company due to  its strong presence in both developing and developed markets, multiple R&D centres in countries, such as in Germany, and ability to identify consumer needs, as it did in the US with compact refrigerators and electric wine coolers.

 

Midea Group

 

The Guangdong-based group is a private, white goods manufacturer, producing washing machines, air conditioners, kitchen appliances, and water heaters, as well as heat pump components. The group went public last year, though its subsidiary Midea Holdings, whose revenue in 2012 reached ¥68 billion ($10.95 billion), while its Net Profit was ¥4.3 billion ($692 million).  Although the group is the third largest home appliances manufacturer in the world, it still remains mostly focused on developing economies. It sends a quarter of its goods to the Philippines, India, and Brazil. Midea has international production bases in Vietnam and Belarus, and has made acquisitions in South America. It used to position itself as cheap goods producer, but recently has started heavily investing in R&D in preparation to expand into new markets.

 

Telecommunications

Huawei

 

Huawei became the largest telecommunications equipment maker in the world in 2012; it is also the third largest smartphone manufacturer globally. The company has R&D centres in more than 20 countries, and more than 40% of Huawei’s employees are engaged in R&D operations. In 2013, Huawei, despite slowing building telecommunication networks market growth, has managed to increase its revenue up to a record level of ¥239 billion ($38.47 billion), while the Net Profit was ¥21 billion ($3.31 billion).

 

Huawei has partnerships with most of the serious players in the telecommunication business. Just to name a few: BT, TeliaSonera, Vodafone, T-Mobile, Bell Canada and Motorola. In order to promote brand recognition, Huawei has been sponsoring cultural events (Jonas Brothers’ US tour), sports teams (Arsenal, Paris PSG, Dortmund Borrusia). The company has stated a revenue target of $70 billion for 2018. It is also expected to profit from growing 4G networks in China, and should see growing smartphone sales.

 

In the past Huawei has been accused of copyright infringement (though always denied it), but the most serious and ongoing issue for the company’s expansion in foreign markets is fear of its links with the CCP and PLA. U.S. Congress has even labelled Huawei as a “national security threat”, while Australia and Canada denied it the chance to build their communication networks due to espionage fears.

 

ZTE

 

ZTE is a Shenzhen-based telecommunications corporation and the 7th largest smartphone producer in the world. It is planning to ship 60 million smartphones in 2014, 40% of which will be supporting 4G technologies.

 

For 2013, ZTE posted profit of ¥1.36 billion ($219 million), but its revenues had fallen down to ¥75.2 billion ($12.11 billion). More than half of the sales came from outside China.

 

ZTE applies for lots of invention-related patents. In 2011 and 2012, it was the company, which applied for the biggest amount of patents in the world. The company is also expected to profit from growing 4G networks. In 2012, ZTE has posted heavy losses, and has therefore started focusing on projects with a higher profit margin.

 

ZTE’s expansion abroad was also met with some controversies, though the allegations were not as severe as in Huawei’s cases and were mostly related to bribery and corruption.

 

Construction/Urban Machinery.

Two Goliaths of this industry are Sany and Zoomlion, supplying everything from excavators and cranes to road sweepers and garbage trucks. The years of construction growth in China have been good to these companies in their domestic market.

 

                                     

 

In the case of Sany, only about 7% of its current sales are international, but this is expected to increase as the company targets international expansion. The company already has manufacturing plants in over 5 countries, including the US, Brazil and Germany, and has also set up a R&D centre in the US. It also recently acquired Putzmeister, a noted German pump manufacturer. It was the first time in history, when a Chinese corporation bought a German Mittelstand company.

 

Zoomlion has acquired Powermole, a construction equipment manufacturer in Britain; CIFA, an Italian concrete machinery manufacturer and M-Tec, a German dry mortar equipment producer. Zoomlion sells its production all over the world, but its crucial market remains China, which accounted for 87% of its total revenue (¥38.54 billion, $6.2 billion), while their recorded overseas sales only reached ¥2.79 billion ($449 million). However, both Sany’s and Zoomlion’s near future seems not as bright as before, since the latter’s financial results indicate a serious slowdown in the Chinese construction market. It is highly likely that both these companies will look for more growth in other emerging markets close to China.

 

Engineering

 

Some of the world’s largest engineering companies are Chinese and have already completed numerous overseas projects. One company aggressively expanding overseas is Beijing Capital Group, which focuses on water and wastewater projects. The company already has international projects in Malaysia, the Philippines, Iran, and also the UK.

CREC and COVEC

 

CREC was the largest construction company in the world in 2012and it has built numerous high-speed rail lines in China. Now it is looking to extend the network beyond China`s borders through its subsidiary, China Overseas Engineering Group (COVEC), notably to Thailand and Myanmar, such as the African Union building in Addis Ababa. COVEC has also built roads and had other projects in Africa and South East Asia. It tried to enter the European market but failed to finish a project in Poland.

 

Transportation

Geely

 

Geely has been aggressively expanding overseas in recent years. The company became a saviour of troubled Western automotive manufacturers by buying Volvo from Ford in 2010, and in 2012 acquiring The London Taxi Company, which was in administration. Both companies can expect a significant investment from Geely, especially Volvo, which will receive more than $11 billion. Although there were reported tensions between Swedish and Chinese executives, he Gothenburg-based company will introduce its first car model developed under the Chinese ownership this year , and in 2017 will start rolling out further models.

 

Geely’s plans with Black Cab are less ambitious, as it is a much more niche product. A factory in Britain is producing cars for the local market, while the plant near Shanghai is selling cars globally.

 

There are factories in CIS and ASEAN countries, assembling knockdown kits,but Geely does not own these factories and does not operate them.

 

Political turmoil in Egypt and Ukraine, both important export markets will cause serious losses for the Chinese group.

 

Besides these older establishments, Geely’s marque Emgrand has been officially launched in the UK, Italy and Brazil recently.

 

Chery

 

Chery’s cars are also assembled in more than 10 countries from knockdown kits, while selling its production in over 80 countries in the world. In Iran and Argentina, Chery owns production bases.

 

Chery has been living off the Chinese government’s subsidies in recent years. However, it has started a restructuring plan and will cancel unsuccessful marques.

 

It presented its first Qoros marque model, one of the few Chinese cars to receive a top, five-star safety rating in NCAP tests, which was born out of partnership with Israeli corporation. On top of that Chery has a joint venture with Jaguar-Land Rover. The company has recently announced its plant is undergoing test runs and production should be started at the end of the year.

 

Consumer Electronics

Lenovo

 

Even some insiders now hardly consider Lenovo as “Chinese” due to its multinational culture, embedded by the CEO’s global push. Lenovo is the second largest supplier of personal computers and the fifth largest producer of smartphones in the world. The corporation made the global headlines in 2005, after it acquired IBM’s personal computer branch. The company thinks its biggest, untapped potential lies in smartphones and tablets sales. Therefore it recently has announced a series of new tablets in order to challenge the industry’s hegemons – Samsung and Apple. The Chinese corporation has also strengthened itself, by buying Motorola Mobility from Google.

 

Property Management

Wanda Group

 

Wanda is the biggest property developer and operator in China. It owns shopping malls, cinemas, hotels and entertainment establishments. Recently, the company has started making large-scale acquisitions abroad. First, by buying American cinema theatres operator - AMC Theatres, the Dalian-based conglomerate became the largest cinema operator in the world. Later the Chinese company bought Sunseeker, a luxury yachts builder in Britain. The company reported ¥186.6 billion ($30.04 billion) revenue in 2013. It was the eighth year in a row with the corporation’s revenue growing by more than 30%. Wanda Group aims at growing the number of Chinese tourists abroad and is riding the trend of wealthy Chinese making investments into properties abroad. The company has already announced its plans to develop a five-star hotel and apartments in central London. A similar project in New York will be made public later this year, with 5-star hotels in in more than 10 cities around the globe. Hotels will be under Wanda’s own brand, a new field for the corporation, since it operates hotels under franchises.

Finance

UnionPay

 

UnionPay is the equivalent of Visa in China. Due to the fact, that it is almost the only bank card used in China, UnionPay recently overtook Visa as the world’s most used debit card by volume. Following an increasing amount of travelling Chinese shoppers, UnionPay is expanding its operations abroad. For example, in Taiwan it is treated as any other bankcard and can be used almost everywhere. In the UK or US, UnionPay can be used in a lot of ATMs and department stores. Since China has such a burgeoning middle class, who increasingly travel overseas and who spend big sums on consumer products while on the road, UnionPay can be expected to see its income from foreign countries grow.

 

Although Chinese banks and financial institutions are among the biggest in the world, their expansion abroad is quite slow and unambitious. Only recently ICBC received permission to acquire the US operations of Bank of East Asia Canada. However, there have been repeated announcements from Chinese bankers that they intend to expand abroad.

 

As it is clear, Chinese companies can and are successfully competing in foreign markets. Cheap acquisitions of troubled Western enterprises awarded Chinese companies with long-desired technical knowledge and access to markets. On top of that, highly skilled Chinese engineers, managers and designers are returning home from abroad, serving to increase Chinese companies’ understanding and competitiveness overseas. The government in Beijing will provide assistance. Chinese companies are moving up the value chain and developing more expensive consumer goods. With the help of all the above-mentioned reasons, SOEs and private companies will be able to increase their market share abroad.

 

Challenges, like increasing brand awareness abroad, improving quality of the production, finding ways to enter the market are serious. Not all are guaranteed success but every company needs to be aware and alert to the ambitions of Chinese companies in their sectors. China Brain will continue to explore this topic in detail. 

 

China National Nuclear Corporation ...

China National Nuclear Corporation (CNNC).

Looking to the Future.

 

 

China’s burgeoning nuclear industry’s relationship with the state places it in a unique position as it expands domestically and moves into the international market, and it will play a vital role in the country’s future development. The industry is led by two state-affiliated giants -China National Nuclear Corporation (CNNC) in the northeast and China General Nuclear (CGN, China Guangdong Nuclear until 2013) in the southeast. These two have been working together and independently to construct nuclear reactors across China, making it the country with the most reactors in development worldwide. In the past couple of years, they have begun moving abroad with major projects in development in the Middle East, Europe and beyond.

 

China is now taking significant steps to expand its nuclear industry domestically and internationally. While China still overwhelmingly runs on coal as its main source of energy, it is also the world’s leader in renewable energy production. Currently, nuclear energy only accounts for about 2% of total energy used in the country, with plans to double this figure by 2020. There are 21 nuclear reactors in China as of April 2014 and 28 under construction, the highest number around the world. This past fall, Beijing allowed CNNC to open on the Shanghai stock market in the hopes of raising further capital for expansion. CGN will list its IPO on the Hong Kong market, with a possibility of expanding to China’s mainland stock market in the future.

 

Both CNNC and CGN operate under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SACAS). The government has in recent months obliged them to work together increasingly in order to streamline China’s nuclear exports including adopting common third-generation nuclear technology. Below is a brief review of their recent international bids and projects:

 

Currently, China is competing with a Japanese-French joint venture in a bid for the building of Turkey’s second nuclear plant. South Korea and Canada have both been dropped from the short list for the 5,000-megawatt nuclear power plant, which is planned for the Black Sea province of Sinop. The French company GDF Suez is officially placing a joint bid with Japanese companies in what is expected to be a $22-25 billion dollar investment.

 

In March 2014 it was reported that China’s main nuclear power companies were lining up to bid for a $93 billion dollar contract in South Africa to build six reactors by 2030. The Energy Minister said that this could promote nuclear power development across the region. In February the Nuclear Energy Corp of South Africa signed a skills development and training agreement with CGN and SNPTC, funded up to 95% by China.

 

China is currently in talks with Pakistan concerning a potential deal for Beijing to sell Pakistan three large nuclear plants for around $13 billion. These talks follow China-Pakistan nuclear cooperation on a $9 billion dollar project of two nuclear plants in Karachi.

 

In October, CNG and CNNC announced they will hold 30-40% of a new nuclear development project, Britain’s Hinkley Point nuclear project - the first nuclear project that China will be involved in with a developed country. The Chinese companies are teaming up with France's EDF in a 16-billion pound ($25.69 billion) deal to construct two third-generation European Pressurised Reactors (EPRs) in southwest England. Thus far, China is only slated to play a financial role in the project.

 

There are several problems facing Chinese nuclear companies at the moment, prohibiting them from expanding to their full potential. One detriment to Chinese nuclear companies in their bids for international projects is the limit placed on their technology. The companies cannot export the most modern reactors being built domestically because foreign companies such as Westinghouse and Areva own the copyrights for those designs. However, analysts say China’s own local designs are catching up with third generation models ready for export this year.

 

Another issue the government faces is lack of public trust, which has led to protests in areas of planned projects domestically, resulting in delays or relocation of future nuclear reactors. Negative news seen globally about Chinese industries and lack of adequate government oversight could discourage foreign nations from pursuing projects with China’s nuclear developers. Britain’s Hinkley point project will have China as a minor stakeholder only, stating the public’s need to adjust to the idea of Chinese involvement. In fact ,China has never had a nuclear event exceed Level 2 on the International Nuclear Event Scale (INES)—a globally accepted scale used by the International Atomic Energy Agency for prompt and effective public communications. The US, by comparison, had a Level 5 accident in 1979. However, negative impressions left by food and environment scandals will take some time to overcome.

 

Finally, the nuclear industry in China also faces problems with its structure and policy. China does not have an atomic energy law, despite it being in discussion since the 1980s. It also follows fewer international structures than most nuclear industries globally. For example, both the US and India have expressed concern about China’s planned projects in Pakistan because reactors are being built without the approval of the 48-nation Nuclear Suppliers Group, a multinational body concerned with reducing nuclear proliferation by controlling the export and re-transfer of materials. Some within the State Council Research Office have stated that nuclear safety governance in China is too fragmented and that its regulatory body, the National Nuclear Safety Administration, does not have a sufficient level of independence.

 

On the other hand, the affiliation of Chinese nuclear companies with the state allows them to work together and bid on projects with the vast financial backing of Beijing. By working together and reducing competition, CNNC and CGN are likely to win more international project bids. They seem to be on their way with their first foray in to the European market, with their future share in projects likely to grow. Their affiliation with the state has benefitted the Chinese nuclear duo in the recent bid in Turkey, mentioned earlier. Because of the enormous financing that can be guaranteed by Beijing, they were able to beat out South Korea by not requiring state guarantees for the project from Turkey. The recent bid in Pakistan has seen a similar situation in which CNNC was able to offer Pakistan a loan of at least $6.5 billion to finance the project if China wins the bid. This certainly gives Chinese companies a huge advantage over those entirely private companies trying to compete for international projects. 

 

China`s largest State Owned Enterprises...

China`s largest State Owned Enterprises & web links.

China has over 100,000 State Owned Enterprises (SOE`s), mostly controlled at a local government level. The list below comprises the largest 117 supervised by SASAC. These are some of China`s largest and most influential companies, powering and supplying the headline growth rates not to mention the vtal role they play in povding Social Security for ther employees. The success or failures of this group will define the current re-balancing of the Chinese economy.   

           

 

1 China National Nuclear Corporation
2 China Nuclear Engineering Group Corporation
3 China Aerospace Science and Technology Corporation
4 China Aerospace Science and Industry Corporation
5 Aviation Industry Corporation of China
6 China State Shipbuilding Corporation
7 China Shipbuilding Industry Corporation
8 China North Industries Group Corporation
9 China South Industries Group Corporation
10 China Electronics Technology Group Corporation
11 China National Petroleum Corporation
12 China Petrochemical Corporation
13 China National Offshore Oil Corporation
14 State Grid Corporation of China
15 China Southern Power Grid Co., Ltd.
16 China Huaneng Group
17 China Datang Corporation
18 China Huadian Corporation
19 China Guodian Corporation
20 China Power Investment Corporation
21 China Three Gorges Corporation
22 Shenhua Group Corporation Limited
23 China Telecommunications Corporation
24 China United Network Communications Group Co., Ltd.
25 China Mobile Communications Corporation
26 China Electronics Corporation
27 China FAW Group Corporation
28 Dongfeng Motor Corporation
29 China First Heavy Industries
30 China National Erzhong Group Co.
31 Harbin Electric Corporation
32 Dongfang Electric Corporation
33 Anshan Iron and Steel Group Corporation
34 Baosteel Group Corporation
35 Wuhan Iron and Steel (Group) Corporation
36 Aluminum Corporation of China
37 China Ocean Shipping (Group) Company
38 China Shipping (Group) Company
39 China National Aviation Holding Company
40 China Eastern Air Holding Company
41 China Southern Air Holding Company
42 Sinochem Group
43 COFCO Limited
44 China Minmetals Corporation
45 China General Technology (Group) Holding, Limited
46 China State Construction Engineering Corporation
47 China Grain Reserves Corporation
48 State Development & Investment Corp.
49 China Merchants Group
50 China Resources
51 China National Travel Service (HK) Group Corporation [China Travel Service (Holdings) Hong Kong Limited]
52 State Nuclear Power Technology Corporation Ltd.
53 Commercial Aircraft Corporation of China, Ltd.
54 China Energy Conservation and Environmental Protection Group
55 China International Engineering Consulting Corporation
56 China Huafu Trade & Development Group Corp.
57 China Chengtong Holdings Group Ltd.
58 China National Coal Group Corp.
59 China Coal Technology & Engineering Group Corp.
60 China National Machinery Industry Corporation
61 China Academy of Machinery Science & Technology
62 Sinosteel Corporation
63 China Metallurgical Group Corporation
64 China Iron & Steel Research Institute Group
65 China National Chemical Corporation
66 China National Chemical Engineering Group Corporation
67 Sinolight Corporation
68 China National Arts & Crafts (Group) Corporation
69 China National Salt Industry Corporation
70 Huacheng Investment & Management Co., Ltd.
71 China Hengtian Group Co., Ltd.
72 China National Materials Group Corporation Ltd.
73 China National Building Materials Group Corporation
74 China Nonferrous Metal Mining (Group) Co., Ltd.
75 General Research Institute for Nonferrous Metals
76 Beijing General Research Institute of Mining & Metallurgy
77 China International Intellectech Corporation
78 China Academy of Building Research
79 China North Locomotive and Rolling Stock Industry (Group) Corporation
80 China South Locomotive & Rolling Stock Corporation Limited
81 China Railway Signal & Communication Corporation
82 China Railway Group Limited
83 China Railway Construction Corporation Limited
84 China Communications Construction Company Limited
85 Potevio Company Limited
86 China Academy of Telecommunication and Technology
87 China National Agricultural Development Group Co., Ltd.
88 Chinatex Corporation
89 Sinotrans & CSC Holdings Co., Ltd.
90 China National Silk Import & Export Corporation
91 China Forestry Group Corporation
92 China National Pharmaceutical Group Corporation
93 CITS Group Corporation
94 China Poly Group Corporation
95 Zhuhai ZhenRong Company
96 China Architecture Design & Research Group
97 China Metallurgical Geology Bureau
98 China National Administration of Coal Geology
99 Xinxing Cathay International Group Co., Ltd.
100 China Travelsky Holding Company
101 China National Aviation Fuel Group Corporation
102 China Aviation Supplies Holding Company
103 Power Construction Corporation of China
104 China Energy Engineering Group Co., Ltd
105 China National Gold Group Corporation
106 China National Cotton Reserves Corporation
107 China Printing (Group) Corporation
108 China Guangdong Nuclear Power Holding Corporation Ltd.
109 China Hualu Group Co., Ltd.
110 Alcatel-Lucent Shanghai Bell Co., Ltd.
111 IRICO Group Corporation
112 Wuhan Research Institute of Post and Telecommunications
113 OCT Group
114 Nam Kwong (Group) Company Limited
115 China XD Group
116 China Railway Materials Commercial Corp.
117 China Reform Holdings Corporation Ltd.

 

Dalian Wanda Group.

Dalian Wanda Group.
Dalian Wanda Group was founded in 1988 and operates in four major segments: commercial property, luxury hotels, culture & tourism, and department stores. The company has 300 billion yuan ($48 billion) in total assets, and 141.7 billion yuan ($22.7 billion) in annual revenue. As of 2013 2013, the group had in its portfolio 85 Wanda Plazas, 51 five-star and super five-star hotels, 1,247 movie screens, 75 department stores and 81 karaoke centers.
 
 
Wanda Group Chairman Wang Jianlin has emerged as the second wealthiest person in Greater China with a fortune of 150 billion yuan ($24.5 billion), according to the 2014 Hurun Global Rich List.
 
For the future, Wang has predicted that Wanda will have hotels in eight to ten cities across the world within the next decade. Wanda also intends to take its first tentative steps in India with a JV with Indian tycoon Anil Ambani’s Reliance Group to set up a  strategic long-term partnership.
 
A time line:
 
1989:
Dalian Wanda Group established.
1993:
Became China’s first cross-regional developer.
2000:
Wanda started building Changchun Wanda Plaza, its first commercial property project afrer deciding to also develop                        Commercia property. The plaza also formed a strategic partnership with the Wal-Mart.
2004:
Wanda developed its first third-generation Wanda Plaza, the Ningbo Zhengzhou Wanda Plaza, which is Wanda's first                      HOPSCA project.
2005:
Wanda combined its commercial and residential property business into one company – Wanda Commercial Properties                    Co Ltd
2006:
Wanda Group became the No. 1 commercial property developer in China.
2007:
Wanda Department Store inaugurated.
2008:
Group headquarters were moved from Dalian to Beijing CBD Wanda Plaza.
2010:
Guangzhou Baiyun Wanda Plaza opens
2011: 
Chu River & Han Street opens. The 50-billion-yuan funded Chu River & Han Street project of Wuhan Central Cultural                      District Phase I became operational. The project combines various functions, including tourism, business, commerce                   and residence, into one complex. Covering 18 square kilometers and with a total construction area of 3.4 million sq
2012:
Wanda established the first luxury hotel management company in China - Wanda Hotel and Resorts Co Ltd .Wanda Group acquired the entire stake of the world’s second biggest cinema chain AMC and inherited its debt with $2.6 billion. It is the largest acquisition made by a private Chinese company in the US and also the biggest overseas M&A in China.          
Establishes: Beijing Wanda Culture Industry Group. China’s largest cultural enterprise with a registered capital of 5                        billion yuan. Its total assets is 31 billion yuan ($5 billion) and total revenue is 20.8 billion yuan ($3.3 billion) in 2012. The                group operates in 10 arenas, including cinemas, film production, film industry parks, performing arts, film technology                       entertainment,  theme parks, karaoke venues, publications & media, art collecting, and cultural tourism
2013:
Wanda acquires a majority shareholding in UK luxury yacht manufacturer Sunseeker with GBP320 million and will                           develop a real estate project in Central London, which will include a five-star luxury hotel, with a total investment value of              GBP 700 million.
 

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