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THE coastal province of Jiangsu in East China has been a trendsetter in reform of the country’s state-owned enterprises （SOEs）， by drawing on experiences from countries around the world， including the model of Singapore’s Temasek Holdings Pte Ltd. Such efforts are epitomized in Jiangsu Soho Holdings Group Co.， Ltd.， whose reforms since 1984 have led to successful results after initial pangs， manifest in its increasing clout at home and abroad， and its efficient management.
Streamlining Management Structure by Regrouping
Soho Holdings was born out of the merger and regrouping of six large SOEs– Jiangsu Silk Group， Jiangsu National Defense Industrial Assets Management Corporation， Jiangsu Soho International Group Corporation， Jiangsu Textile Group， Jiangsu Petrochemical Assets Management Corporation， and Jiangsu Holly Group – four of which had been fl ag bearers in their respective industries. In its early years， this newlyformed conglomerate was beleaguered by scores of internal problems like more than 160 subsidiaries with overlapping businesses， therefore competing with each other in a confused manner. Moreover， along with their own branches， they constituted a multiple-tiered convoluted management pyramid which severely affected effi ciency. With different corporate cultures and positioning， these companies could barely pool together their resources and advantages to develop core competitiveness.
To change this situation， Jiangsu Soho Holdings Group clarifi ed its development path in 2011 – as an investment holding group – and increased its registered capital from RMB 263.68 million to RMB 2 billion. The extra funds came from its profits and savings over past years. In addition， it pinpointed related core businesses for its major companies.
This overhaul， however， did not resolve the problem of the parent， subsidiary and sub-subsidiary companies holding shares in each other. In some cases， several companies in the group had invested in the same project. This led to an overly complicated shareholding structure within the group which impeded management. Soho Holdings therefore introduced the “four basic rules”： ensuring the independence of publicly listed companies in the group， reducing instances of cross shareholding， regu-lating share transfers， and laying down guidelines for connected transactions. In this way the group established overall control of investment and was therefore able to make more rational decisions concerning stock rights. The streamlined corporate structure of Soho Holdings resulting from this reform laid a solid foundation for the group’s specialized intensive administration， and accelerated the transformation of its subsidiaries， reinforcing the overall strength of the conglomerate. This immediately resulted in Soho Holdings’ international businesses maintaining stable growth， while its domestic businesses made remarkable advances： its projects in the cultural industry stanched the red to make profits， and investment and real estate emerged as new profit-makers， in addition to the conventional trade sector.
The regrouping has continued from 2011 to date. Over these years Soho Holdings has integrated internal resources， improved management efficiency， reorganized business relationships between its subsidiary companies， strengthened risk control， and diversified its businesses. Subsidiaries were required to redefine their positions and orientations in the market， optimize their core businesses and make institutional innovations. The group hence established four priority businesses： investment， trade， culture， and real estate.
At present， Soho Holdings has 132 companies under its umbrella， with eight as its mainstays： Jiangsu Soho International Group Corp.， Jiangsu Textile Group， Jiangsu Holly Group， Jiangsu Soho Investment Group Co.， （Ltd.）， Holly Futures Co.， （Ltd.）， Jiangsu Soho Construction Group Co.， （Ltd.）， Jiangsu Tianhong Automobile Group， and Soho Media Co.， （Ltd.）. The headquarters， Soho Investment and Holly Futures， are mainly engaged in investment businesses； while Soho International， Textile Group， Holly Group and Tianhong Automobile are in the trade sector； Soho Construction deals with real estate； and Soho Media and Artall， a company in the Holly Group， ply the cultural industry.
Although the total number of its subsidiary companies has fallen， Soho Holdings’ profits are steadily climbing， a testimony to the success of its regrouping， which is credited with the overall development strategies of the group and optimal use of internal resources following market rules.
Improving Core Competitiveness through Deepened Reforms
Last year， the world economy remained in the doldrums， while the Chinese economy continued to grapple with restructuring and industrial upgrading， an intricate task which further complicated growth prospects. Against this grim backdrop， Soho Holdings notched a sales volume of RMB 20.4 billion， up two percent year-on-year， with gross profits of RMB 580 million， ticking up 2.3 percent from 2012. Though its imports and exports shrank 6.44 percent， to RMB 2.27 billion， the group largely met the targets set by the Jiangsu Stateowned Assets Supervision and Administration Commission. By the end of 2013， its gross assets reached RMB 23.5 billion and net assets RMB 8.4 billion. The market has solid confidence in Soho Holdings： last year the market-value growth of Jiangsu Holly Corporation， a publicly listed company， outpaced that of the Shanghai （securities） Composite Index. In the first two months of 2014， Soho Holdings sustained its strong momentum in both international and domestic businesses. Its imports and exports gained 5.37 percent over the same period last year， to hit US $340 million， with the growth in imports soaring by 94 percent. Domestic trade stood at RMB 1.558 billion， up 36.82 percent over the same period last year.
The outstanding performance of Soho Holdings is attributed to the joint efforts of all staff members of the company， in particular the diligence and foresight of its leadership. Chair of the Board Wang Zhengxi is a senior financial specialist， who has held such government positions as deputy chief of the provincial government financial authority and executive vice-mayor of Huai’an City. He is known by those working around him for his strategic vision and ability to handle intricate issues. Soho Holdings President Zhou Yong is a postdoctoral researcher entitled to special government allowances from the State Council， and is a leading figure in China’s financial futures industry. Other members of the group’s top management， such as Shen Xiangyuan， Yu Yimin， Qian Yiping， Zou Yunxiang and Li Jiexiang， are all well established in their respective careers ranging from international trade， domestic trade， financial investment， real estate， and the cultural industry.
Wang Zhengxi acknowledges local government policy support， the team effort of his colleagues， better internal management and resource integration， for the company’s consolidated competitiveness and risk resistance of its core businesses in a changing market.
According to Mr. Wang， Soho Holdings is poised to carry out deeper reforms and innovations to improve growth quality and efficiency while sus- taining stable development. It will do so in light of the province’s economic planning. By deepening reforms， he means the cementing of corporate consolidation and core competitiveness， to foster a unified corporate culture within the group and to ensure all subsidiaries are truly and fully incorporated. These changes， he says， are critical for the healthy long-term development of the group.
Towards this goal， Soho Holdings has to further improve its corporate organization， management and operation systems， and balance conventional businesses and new innovative businesses on the basis of intensive analysis of market trends. It must also clarify its future development orientations to fit into economic restructuring and industrial upgrading， as the central government has required of state-owned enterprises. To improve general competitiveness， the group will first of all build a high-caliber management team to upgrade and strengthen its businesses. To establish standard management， it will ensure the parent company and its branches take on their appropriate share of liabilities， powers and accountability， while giving full play to its functionary arms like the Trade Management Committee， Finance Management Committee， Investment Decision-making Committee， and Infor- mationization Committee. To stimulate corporate vitality， Soho Holdings will refine its administrative rules concerning recruitment， appointment， staff evaluation and payment， to foster a unified， fair and effective personnel management environment in which the talented and hardworking are duly rewarded and underperformers penalized. It is also imperative to build bonds between employees of different subsidiary companies by instilling a unified corporate culture and identity among them.
As a state-owned company， Soho Holdings is obligated to serve the goals set out by the central and provincial governments： Public sector of the economy should be cemented and developed unswervingly with the state-owned economy playing the leading role； efforts should be made to enhance the stateowned economy’s vitality and to make it hold greater sway and exert increasing clout. With an acute sense of the crisis， the group has wasted no time in moving in this direction.
While following market rules， Soho Holdings performs its duties as a stateowned enterprise in the country’s economic and social development. Being committed to reform， innovation and industrial upgrading， it also steers investment into public services， strategic industries， environmental protection，science and technology， and other priority sectors outlined by the provincial government. While contributing to local development， it also sharpens its competitive edge and expands its influence， while moving towards sustainable growth in the process.
Soho Holdings will continue to beef up its four core businesses of investment， trade， the cultural industry and real estate， while enhancing size， performance and profitability as well. Equal emphasis will be placed on capital management and the real economy.
The group will enhance decisionmaking under a modern corporate system， fortify its ability to maintain and increase assets value， perform its social responsibilities， and explore scientific approaches to management that bring together all subsidiary companies and their staff members under one mission， bringing out the best in them. Meanwhile， Soho Holdings will guard against corruption， and work out sound regulations and mechanisms in this regard. This includes the supervisory， discipline inspection and auditing bodies of the group， a complete set of financial regulations， accountability system and the reporting system for major issues. Every level of management is obliged to be vigilant about corruption and other illegality， and the top leadership oversees the issue in general.
Team building is another central task. By implementing effective evaluations and hinging payments on performance， the group stokes worker enthusiasm and nurtures a strong sense of responsibility. In this way it makes the best of employee expertise and strengths.
Booming Businesses
The development of Soho Holdings features several highlights. Gathering the advantages of its expertise and immense capital strength， Soho Holdings endeavors to foster and develop projects with potential for listing on the stock market， such as in the medicine， biomaterial， finance and hi-tech industries. Its headquarters and subsidiaries have made equity investments in 25 projects. The investments in stock rights and fixed assets are valued at RMB 717 million. Equity investment in Huatai Securities and Hongbaoli Co.， （Ltd.） represents the successful achievements Soho Holdings has made in the investment field.
In the finance industry， Soho Holdings owns stock rights in such fields as futures， security companies， banking， insurance， re-guarantees， trusts， and private equity. It is notable that the resources drawn by Holly Futures and the listed Holly Corporation have become the pillar of Soho Holdings’ business in finance and investment. Over the last 15 years， Holly Futures has grown into a large-scale financial enterprise with about 700 personnel. Its net assets are over RMB one billion， with annual trading volume surpassing RMB four trillion. It is a leading futures company in Jiangsu Province， with its operational indicators topping the province， rank- ing at the nation’s forefront. Its number of sales offices ranks second in China， while its net asset size is in the lead. On the basis of futures trading， the company has ventured into some new areas including assets management and overseas business. Moreover， shareholding reform and prelisting work have been completed. In the last 12 years， the enterprise has been recognized for its remarkable contribution to the Nanjing New & High Technology Industry Development Zone. It is the only one in Jiangsu Province that has been appraised as a grade-A， class-A futures company five times in a row. In addition， the company has been conferred several honors by Jiangsu Province， including Youth Excellence Unit， May Day Labor Award， Role Model in Ethical and Cultural Progress， Outstanding Leaders of State-owned Enterprises， and Excellent Grassroots Organization of the Communist Party. With its growing influence and rising brand reputation， Holly Futures was elected by a huge majority as a member of the China Futures Association and a rotating chair of the Jiangsu Futures Association. In addition， it was credited as one of the best members by four futures exchanges in China. In the period of the 12th Five-year Plan （2011-2015）， Holly Futures has been striving to buttress its leading position in the financial field， while setting itself ambitious goals by venturing into new areas and expanding its business in assets management， consultation services， overseas business， and M&A （mergers and acquisitions）. Facing a grim foreign trade environment， Soho Holdings and its subsidiaries have made every effort to resolve related difficulties. New sample centers are built and the existing centers expanded. More professionals are recruited and specialized equipment acquired， helping to improve R&D and design capabilities. What’s more， a system of quick response and value-added service has been set up. The company has fully analyzed global demand， and entered emerging markets in South America， Eastern Europe， West Asia and Southeast Asia. A group of quality clients have been attracted. New products that can meet market requirements with high added value have become the highlight of the company’s export business. Soho Holdings’ energy company exports reached US $25 million in the year of its establishment. Foreign trade companies under Soho Holdings have brought out their innovative spirit to create new economic growth points. Soho Holdings has set up an office in Cambodia， expected to become the company’s order receiving center in Southeast Asia. The acquisition of French Mossalgue SAS， in 2013， has enabled Holly Creations to form a complete industrial chain in fishing tackle， while expanding the global market base through Rive， a Mossalgue brand.
Soho Holdings has not only witnessed remarkable achievements in foreign trade， but also has been striving to develop domestic trade. Domestic sale volumes in 2013 surpassed RMB 10 billion for the first time. The year 2013 saw the startup of the restructured and upgraded Tianhong Automobile Group. With improved management， strengthened marketing capability and judicious market judgments， Tianhong Automobile’s sales volumes in 2013 reached RMB 2.7 billion， an increase of 22 percent yearon-year. Meanwhile， its insurance， used cars and automobile financing businesses have been developing rapidly. The Tianhong Automobile Group stands at 79th in the rankings of the top 100 Chinese auto dealers， rated by the China Automobile Dealers Association. Other subsidiaries in the fields of toys， fishing tackle and telecommunication products are also booming in domestic sales. The domestic trade revenue of Soho Holdings’ affiliated textile import and export company is expected to reach RMB one billion in 2014.
On top of that， Soho Holdings’ hightech companies keep rising. In 2014， Soho-Yiming Pharmaceuticals Co.， Ltd.， plans to manufacture 250 kg of polypeptide products that will bring in a revenue of RMB 70 million， hitting a record high. The white filature silk produced by Fu’an Cocoon & Silk Company enjoys fame for its high quality and great brand influence. The company’s sales in 2013 stood at RMB 260 million. In the meantime， the company has made a breakthrough in the marketing of silk fibroin wound dressings. A new textile research center was established by Shuyi Textile Co.， Ltd.， aimed at developing non-cotton and blended products， increasing added value， reducing costs and cementing its market position. Yuanda， another subsidiary， has been actively bidding for national key engineering projects and promoting geosynthetic technology， new bullet- and explosive-proof materials， as well as applying new technologies to engineering projects. The company has undertaken three national priority projects. In 2014， Yuanda plans to manufacture seven new shield tunneling machines and repair nine old ones， which will generate revenues of RMB 250 million. Other technology companies have also made fruitful achievements. The Jiangsu Soho Silk Biotechnology Research Institution， jointly established by Soho Holdings and Jiangsu Silk Association， is endeavoring to become a provincial postdoctoral innovative practice base， stimulating the innovation-driven development of the silk industry. The sericulture department of Soho Holdings is now involved in four science and technology projects， with another two still at the application and preparation stage. Moreover， the affiliated textile research institution has successfully developed two new products， while applications for two science and technology projects， one invention and one patent are under review. Real estate is another thriving business of Soho Holdings. The company bases this business on product development and sales， while improving its management， reducing costs and enhancing efficiency. The first stage of the Artall Shangyi Washington Project has passed inspection， with construction of the Artall Yizhen Project completed. The two projects have been well received in the market， owing to the hi-tech energysaving techniques applied in the construction. Faced with fierce competition， the company has innovated its sales model and cut down sales costs so as to increase the projects’ profits. When it comes to sustainable development， the subsidiaries of Soho Holdings have maintained good statistics for projects in different places.
In addition， the development of Soho Holding’s cultural industry has reached a new stage. Based on a favorable platform， the three featured sectors of cultural and artwork business， publishing and media， and cultural property transactions are booming. With regard to cultural and artwork business， Artall Cultural Industry Co.， Ltd.， has enhanced its profitability through integration with its advantageous businesses covering exhibition organization， arts-and-crafts business， gold and jewelry transactions， art in- vestments， international brand agency， international trade， and interior decor. Artall has completed nearly 10 exhibition projects， including the renovation of the Nanjing Museum and the Imperial Examination Museum of China. In 2014， Artall’s sales in cultural and art services， works of art and gold products will reach RMB one billion. The company has also actively promoted its “Cultural Exchange Square” project. In implementing its strategy of taking the company onto the global stage， the company has set up a culture and art exchange center and an office in the U.S. Overseas affiliations provide an economy and trade service platform for Jiangsu’s advantageous cultural resources， and also serve to promote Soho’s brands and expand the export volume of its cultural products.
In the field of publishing and media， Soho Media Co.， Ltd.， now owns eight ISSNs （International Standard Serial Numbers） with one for a newspaper， seven for periodicals. The company is one of the five major media groups supported by the province. In cultural property transactions， business and revenues have experienced growth on a large scale. As the only provincial-level cultural property exchange， Jiangsu Culture Assets and Equity Exchange will provide more resources and create more favorable conditions for Soho Holdings to boost its business in the cultural industry.
Streamlining Management Structure by Regrouping
Soho Holdings was born out of the merger and regrouping of six large SOEs– Jiangsu Silk Group， Jiangsu National Defense Industrial Assets Management Corporation， Jiangsu Soho International Group Corporation， Jiangsu Textile Group， Jiangsu Petrochemical Assets Management Corporation， and Jiangsu Holly Group – four of which had been fl ag bearers in their respective industries. In its early years， this newlyformed conglomerate was beleaguered by scores of internal problems like more than 160 subsidiaries with overlapping businesses， therefore competing with each other in a confused manner. Moreover， along with their own branches， they constituted a multiple-tiered convoluted management pyramid which severely affected effi ciency. With different corporate cultures and positioning， these companies could barely pool together their resources and advantages to develop core competitiveness.
To change this situation， Jiangsu Soho Holdings Group clarifi ed its development path in 2011 – as an investment holding group – and increased its registered capital from RMB 263.68 million to RMB 2 billion. The extra funds came from its profits and savings over past years. In addition， it pinpointed related core businesses for its major companies.
This overhaul， however， did not resolve the problem of the parent， subsidiary and sub-subsidiary companies holding shares in each other. In some cases， several companies in the group had invested in the same project. This led to an overly complicated shareholding structure within the group which impeded management. Soho Holdings therefore introduced the “four basic rules”： ensuring the independence of publicly listed companies in the group， reducing instances of cross shareholding， regu-lating share transfers， and laying down guidelines for connected transactions. In this way the group established overall control of investment and was therefore able to make more rational decisions concerning stock rights. The streamlined corporate structure of Soho Holdings resulting from this reform laid a solid foundation for the group’s specialized intensive administration， and accelerated the transformation of its subsidiaries， reinforcing the overall strength of the conglomerate. This immediately resulted in Soho Holdings’ international businesses maintaining stable growth， while its domestic businesses made remarkable advances： its projects in the cultural industry stanched the red to make profits， and investment and real estate emerged as new profit-makers， in addition to the conventional trade sector.
The regrouping has continued from 2011 to date. Over these years Soho Holdings has integrated internal resources， improved management efficiency， reorganized business relationships between its subsidiary companies， strengthened risk control， and diversified its businesses. Subsidiaries were required to redefine their positions and orientations in the market， optimize their core businesses and make institutional innovations. The group hence established four priority businesses： investment， trade， culture， and real estate.
At present， Soho Holdings has 132 companies under its umbrella， with eight as its mainstays： Jiangsu Soho International Group Corp.， Jiangsu Textile Group， Jiangsu Holly Group， Jiangsu Soho Investment Group Co.， （Ltd.）， Holly Futures Co.， （Ltd.）， Jiangsu Soho Construction Group Co.， （Ltd.）， Jiangsu Tianhong Automobile Group， and Soho Media Co.， （Ltd.）. The headquarters， Soho Investment and Holly Futures， are mainly engaged in investment businesses； while Soho International， Textile Group， Holly Group and Tianhong Automobile are in the trade sector； Soho Construction deals with real estate； and Soho Media and Artall， a company in the Holly Group， ply the cultural industry.
Although the total number of its subsidiary companies has fallen， Soho Holdings’ profits are steadily climbing， a testimony to the success of its regrouping， which is credited with the overall development strategies of the group and optimal use of internal resources following market rules.
Improving Core Competitiveness through Deepened Reforms
Last year， the world economy remained in the doldrums， while the Chinese economy continued to grapple with restructuring and industrial upgrading， an intricate task which further complicated growth prospects. Against this grim backdrop， Soho Holdings notched a sales volume of RMB 20.4 billion， up two percent year-on-year， with gross profits of RMB 580 million， ticking up 2.3 percent from 2012. Though its imports and exports shrank 6.44 percent， to RMB 2.27 billion， the group largely met the targets set by the Jiangsu Stateowned Assets Supervision and Administration Commission. By the end of 2013， its gross assets reached RMB 23.5 billion and net assets RMB 8.4 billion. The market has solid confidence in Soho Holdings： last year the market-value growth of Jiangsu Holly Corporation， a publicly listed company， outpaced that of the Shanghai （securities） Composite Index. In the first two months of 2014， Soho Holdings sustained its strong momentum in both international and domestic businesses. Its imports and exports gained 5.37 percent over the same period last year， to hit US $340 million， with the growth in imports soaring by 94 percent. Domestic trade stood at RMB 1.558 billion， up 36.82 percent over the same period last year.
The outstanding performance of Soho Holdings is attributed to the joint efforts of all staff members of the company， in particular the diligence and foresight of its leadership. Chair of the Board Wang Zhengxi is a senior financial specialist， who has held such government positions as deputy chief of the provincial government financial authority and executive vice-mayor of Huai’an City. He is known by those working around him for his strategic vision and ability to handle intricate issues. Soho Holdings President Zhou Yong is a postdoctoral researcher entitled to special government allowances from the State Council， and is a leading figure in China’s financial futures industry. Other members of the group’s top management， such as Shen Xiangyuan， Yu Yimin， Qian Yiping， Zou Yunxiang and Li Jiexiang， are all well established in their respective careers ranging from international trade， domestic trade， financial investment， real estate， and the cultural industry.
Wang Zhengxi acknowledges local government policy support， the team effort of his colleagues， better internal management and resource integration， for the company’s consolidated competitiveness and risk resistance of its core businesses in a changing market.
According to Mr. Wang， Soho Holdings is poised to carry out deeper reforms and innovations to improve growth quality and efficiency while sus- taining stable development. It will do so in light of the province’s economic planning. By deepening reforms， he means the cementing of corporate consolidation and core competitiveness， to foster a unified corporate culture within the group and to ensure all subsidiaries are truly and fully incorporated. These changes， he says， are critical for the healthy long-term development of the group.
Towards this goal， Soho Holdings has to further improve its corporate organization， management and operation systems， and balance conventional businesses and new innovative businesses on the basis of intensive analysis of market trends. It must also clarify its future development orientations to fit into economic restructuring and industrial upgrading， as the central government has required of state-owned enterprises. To improve general competitiveness， the group will first of all build a high-caliber management team to upgrade and strengthen its businesses. To establish standard management， it will ensure the parent company and its branches take on their appropriate share of liabilities， powers and accountability， while giving full play to its functionary arms like the Trade Management Committee， Finance Management Committee， Investment Decision-making Committee， and Infor- mationization Committee. To stimulate corporate vitality， Soho Holdings will refine its administrative rules concerning recruitment， appointment， staff evaluation and payment， to foster a unified， fair and effective personnel management environment in which the talented and hardworking are duly rewarded and underperformers penalized. It is also imperative to build bonds between employees of different subsidiary companies by instilling a unified corporate culture and identity among them.
As a state-owned company， Soho Holdings is obligated to serve the goals set out by the central and provincial governments： Public sector of the economy should be cemented and developed unswervingly with the state-owned economy playing the leading role； efforts should be made to enhance the stateowned economy’s vitality and to make it hold greater sway and exert increasing clout. With an acute sense of the crisis， the group has wasted no time in moving in this direction.
While following market rules， Soho Holdings performs its duties as a stateowned enterprise in the country’s economic and social development. Being committed to reform， innovation and industrial upgrading， it also steers investment into public services， strategic industries， environmental protection，science and technology， and other priority sectors outlined by the provincial government. While contributing to local development， it also sharpens its competitive edge and expands its influence， while moving towards sustainable growth in the process.
Soho Holdings will continue to beef up its four core businesses of investment， trade， the cultural industry and real estate， while enhancing size， performance and profitability as well. Equal emphasis will be placed on capital management and the real economy.
The group will enhance decisionmaking under a modern corporate system， fortify its ability to maintain and increase assets value， perform its social responsibilities， and explore scientific approaches to management that bring together all subsidiary companies and their staff members under one mission， bringing out the best in them. Meanwhile， Soho Holdings will guard against corruption， and work out sound regulations and mechanisms in this regard. This includes the supervisory， discipline inspection and auditing bodies of the group， a complete set of financial regulations， accountability system and the reporting system for major issues. Every level of management is obliged to be vigilant about corruption and other illegality， and the top leadership oversees the issue in general.
Team building is another central task. By implementing effective evaluations and hinging payments on performance， the group stokes worker enthusiasm and nurtures a strong sense of responsibility. In this way it makes the best of employee expertise and strengths.
Booming Businesses
The development of Soho Holdings features several highlights. Gathering the advantages of its expertise and immense capital strength， Soho Holdings endeavors to foster and develop projects with potential for listing on the stock market， such as in the medicine， biomaterial， finance and hi-tech industries. Its headquarters and subsidiaries have made equity investments in 25 projects. The investments in stock rights and fixed assets are valued at RMB 717 million. Equity investment in Huatai Securities and Hongbaoli Co.， （Ltd.） represents the successful achievements Soho Holdings has made in the investment field.
In the finance industry， Soho Holdings owns stock rights in such fields as futures， security companies， banking， insurance， re-guarantees， trusts， and private equity. It is notable that the resources drawn by Holly Futures and the listed Holly Corporation have become the pillar of Soho Holdings’ business in finance and investment. Over the last 15 years， Holly Futures has grown into a large-scale financial enterprise with about 700 personnel. Its net assets are over RMB one billion， with annual trading volume surpassing RMB four trillion. It is a leading futures company in Jiangsu Province， with its operational indicators topping the province， rank- ing at the nation’s forefront. Its number of sales offices ranks second in China， while its net asset size is in the lead. On the basis of futures trading， the company has ventured into some new areas including assets management and overseas business. Moreover， shareholding reform and prelisting work have been completed. In the last 12 years， the enterprise has been recognized for its remarkable contribution to the Nanjing New & High Technology Industry Development Zone. It is the only one in Jiangsu Province that has been appraised as a grade-A， class-A futures company five times in a row. In addition， the company has been conferred several honors by Jiangsu Province， including Youth Excellence Unit， May Day Labor Award， Role Model in Ethical and Cultural Progress， Outstanding Leaders of State-owned Enterprises， and Excellent Grassroots Organization of the Communist Party. With its growing influence and rising brand reputation， Holly Futures was elected by a huge majority as a member of the China Futures Association and a rotating chair of the Jiangsu Futures Association. In addition， it was credited as one of the best members by four futures exchanges in China. In the period of the 12th Five-year Plan （2011-2015）， Holly Futures has been striving to buttress its leading position in the financial field， while setting itself ambitious goals by venturing into new areas and expanding its business in assets management， consultation services， overseas business， and M&A （mergers and acquisitions）. Facing a grim foreign trade environment， Soho Holdings and its subsidiaries have made every effort to resolve related difficulties. New sample centers are built and the existing centers expanded. More professionals are recruited and specialized equipment acquired， helping to improve R&D and design capabilities. What’s more， a system of quick response and value-added service has been set up. The company has fully analyzed global demand， and entered emerging markets in South America， Eastern Europe， West Asia and Southeast Asia. A group of quality clients have been attracted. New products that can meet market requirements with high added value have become the highlight of the company’s export business. Soho Holdings’ energy company exports reached US $25 million in the year of its establishment. Foreign trade companies under Soho Holdings have brought out their innovative spirit to create new economic growth points. Soho Holdings has set up an office in Cambodia， expected to become the company’s order receiving center in Southeast Asia. The acquisition of French Mossalgue SAS， in 2013， has enabled Holly Creations to form a complete industrial chain in fishing tackle， while expanding the global market base through Rive， a Mossalgue brand.
Soho Holdings has not only witnessed remarkable achievements in foreign trade， but also has been striving to develop domestic trade. Domestic sale volumes in 2013 surpassed RMB 10 billion for the first time. The year 2013 saw the startup of the restructured and upgraded Tianhong Automobile Group. With improved management， strengthened marketing capability and judicious market judgments， Tianhong Automobile’s sales volumes in 2013 reached RMB 2.7 billion， an increase of 22 percent yearon-year. Meanwhile， its insurance， used cars and automobile financing businesses have been developing rapidly. The Tianhong Automobile Group stands at 79th in the rankings of the top 100 Chinese auto dealers， rated by the China Automobile Dealers Association. Other subsidiaries in the fields of toys， fishing tackle and telecommunication products are also booming in domestic sales. The domestic trade revenue of Soho Holdings’ affiliated textile import and export company is expected to reach RMB one billion in 2014.
On top of that， Soho Holdings’ hightech companies keep rising. In 2014， Soho-Yiming Pharmaceuticals Co.， Ltd.， plans to manufacture 250 kg of polypeptide products that will bring in a revenue of RMB 70 million， hitting a record high. The white filature silk produced by Fu’an Cocoon & Silk Company enjoys fame for its high quality and great brand influence. The company’s sales in 2013 stood at RMB 260 million. In the meantime， the company has made a breakthrough in the marketing of silk fibroin wound dressings. A new textile research center was established by Shuyi Textile Co.， Ltd.， aimed at developing non-cotton and blended products， increasing added value， reducing costs and cementing its market position. Yuanda， another subsidiary， has been actively bidding for national key engineering projects and promoting geosynthetic technology， new bullet- and explosive-proof materials， as well as applying new technologies to engineering projects. The company has undertaken three national priority projects. In 2014， Yuanda plans to manufacture seven new shield tunneling machines and repair nine old ones， which will generate revenues of RMB 250 million. Other technology companies have also made fruitful achievements. The Jiangsu Soho Silk Biotechnology Research Institution， jointly established by Soho Holdings and Jiangsu Silk Association， is endeavoring to become a provincial postdoctoral innovative practice base， stimulating the innovation-driven development of the silk industry. The sericulture department of Soho Holdings is now involved in four science and technology projects， with another two still at the application and preparation stage. Moreover， the affiliated textile research institution has successfully developed two new products， while applications for two science and technology projects， one invention and one patent are under review. Real estate is another thriving business of Soho Holdings. The company bases this business on product development and sales， while improving its management， reducing costs and enhancing efficiency. The first stage of the Artall Shangyi Washington Project has passed inspection， with construction of the Artall Yizhen Project completed. The two projects have been well received in the market， owing to the hi-tech energysaving techniques applied in the construction. Faced with fierce competition， the company has innovated its sales model and cut down sales costs so as to increase the projects’ profits. When it comes to sustainable development， the subsidiaries of Soho Holdings have maintained good statistics for projects in different places.
In addition， the development of Soho Holding’s cultural industry has reached a new stage. Based on a favorable platform， the three featured sectors of cultural and artwork business， publishing and media， and cultural property transactions are booming. With regard to cultural and artwork business， Artall Cultural Industry Co.， Ltd.， has enhanced its profitability through integration with its advantageous businesses covering exhibition organization， arts-and-crafts business， gold and jewelry transactions， art in- vestments， international brand agency， international trade， and interior decor. Artall has completed nearly 10 exhibition projects， including the renovation of the Nanjing Museum and the Imperial Examination Museum of China. In 2014， Artall’s sales in cultural and art services， works of art and gold products will reach RMB one billion. The company has also actively promoted its “Cultural Exchange Square” project. In implementing its strategy of taking the company onto the global stage， the company has set up a culture and art exchange center and an office in the U.S. Overseas affiliations provide an economy and trade service platform for Jiangsu’s advantageous cultural resources， and also serve to promote Soho’s brands and expand the export volume of its cultural products.
In the field of publishing and media， Soho Media Co.， Ltd.， now owns eight ISSNs （International Standard Serial Numbers） with one for a newspaper， seven for periodicals. The company is one of the five major media groups supported by the province. In cultural property transactions， business and revenues have experienced growth on a large scale. As the only provincial-level cultural property exchange， Jiangsu Culture Assets and Equity Exchange will provide more resources and create more favorable conditions for Soho Holdings to boost its business in the cultural industry.