‘A will­ing­ness to pur­sue ex­cel­lence leads to ac­tion’

China Daily (Hong Kong) - - BUSINESS | HK - By DUAN TING in Hong Kong tingduan@chi­nadai­lyhk.com Con­tact the writer at tingduan@chi­nadai­lyhk.com

Fo r Ja n g h o G r o u p Founder and Chair­man Liu Zai­wang, there are two de­ci­sions he con­sid­ers the most im­por­tant in his life — mar­ry­ing his wife and ac­quir­ing fit­ting-out ser­vices com­pany S u n d a r t Ho l d i n g s L t d i n 2012.

Af­ter es­tab­lish­ing cur­tain wall con­struc­tion com­pany Jangho Group in 1999, Liu says he was at­tracted to the rep­u­ta­tion of Sun­dart, which has pro­vided fit­ting-out works for res­i­den­tial prop­erty and ho­tel projects in Hong Kong since 1996 and ex­panded to Ma­cao in 2005.

“There were no sales peo­ple in Sun­dart and all of their projects were in­vited by cus­tomers through pub­lic praise. The dec­o­ra­tion team in Sun­dart is of a high stan­dard.”

Hav i n g a l r e a d y w o r k e d with Sun­dart in 2006 on the City of Dreams pro­jec t in Ma­cao, Liu says that is when he knew Sun­dart was the lead­ing platform he was look­ing to ac­quire.

It was also the worldlead­ing sys­tem, governance and pro­fes­sion­al­ism of in­fra­struc­ture and real es­tate in Hong Kong that at­tracted Liu, adding that the city’s ex­pen­sive prop­erty prices makes it essen­tial for ex­cel­lent in­te­rior dec­o­ra­tions.

Healthy re­turn

Sun­dart is the largest fit­ting-out con­trac­tor in Hong Kong and Ma­cao based on its 2014 rev­enue, with 6.1 per­cent and 15.5 per­cent of the mar­ket share, re­spec­tively. But Liu says this can only keep grow­ing.

He says Jangho Group gives strate­gic ad­vice and bank guar­an­tee re­sources to sup­port Sun­dart. The re­main­ing op­er­a­tion is un­der the man­age­ment of cur­rent Chief E x e c u t i v e O ff i c e r N g Ta k - kwan.

Be­tween the 2012 ac­qui­si­tion and the com­pany be­ing listed in Hong Kong last year, Liu says Sun­dar t ’s an­nual profit has shot up nearly five­fold — from HK$80 mil­lion to HK$380 mil­lion.

The net profit for the first half of 2016 was HK$246 mil­lion, with a year-on-year in­crease of 27.4 per­cent and a gross mar­gin of 18.4 per­cent.

De­spite the plum­met­ing for­tunes of Ma­cao’s gam­ing sec­tor and the slow­down of the Hong Kong econ­omy, Liu says Sun­dart’s busi­ness is not cor­rel­a­tively af­fected as when the econ­omy dips, clients usu­ally seek re-dec­o­ra­tion to strengthen com­pet­i­tive­ness.

Sun­dart Chief Fi­nan­cial Of­fi­cer Jim Xie Jianyu says that, as the big gest player in terms of marke t share, the com­pany has com­pet­i­tive bar­gain­ing power dur­ing an eco­nomic down­turn. This in­cludes ne­go­ti­at­ing dis­counts with sup­pli­ers and pro­vid­ing op­ti­mized plans when clients slash bud­gets.

Up un­til June 30 this year, Sun­dart had a to­tal of 30 fit­ting-out projects (21 in Hong Kong and nine in Ma­cao) on the go, with each in­di­vid­ual con­tract worth more than HK$50 mil­lion. The to­tal value of these projects hit HK$6.79 bil­lion, with the re­main­ing works to be com­pleted at HK$3.82 bil­lion.

Start­ing one’s own busi­ness can put self-ini­tia­tive into full play, and is as dif­fi­cult as rid­ing a tiger and (you) can­not eas­ily dis­mount, es­pe­cially in the be­gin­ning.”

Group vision

Aside from ex­ist­ing mar­kets, Liu says the com­pany wants to du­pli­cate its ex­ist­ing pro­fes­sional busi­ness model and ex­pe­ri­ence to ex­pand to broader mar­kets, in­clud­ing the Chi­nese main­land.

He also aims to de­velop Sun­dart into a grow­ing bluechip stock, adding that the cur­rent div­i­dend pay­out ra­tio of the com­pany is rel­a­tively high and they will con­tinue dis­tribut­ing a div­i­dend twice a year.

In­clud­ing its wholly-owned sub­sidiary Sun­dart, Jangho has five brands — Jangho, G a n g Yu a n , S t e v e L e u n g

For Jangho Group Founder and Chair­man Liu Zai­wang, en­ter­ing the cur­tain wall in­dus­try and building it into an em­pire from the ground up was a mix­ture of good luck and hard work.

Born in Yueyang, Hu­nan prov­ince, Liu told China Daily his foray into the in­dustr y came by chance af­ter he gave up his univer­sity stud­ies to start his own busi­ness.

In 1990, he was ac­cepted into North­east­ern Univer­sity and ma­jored in min­ing. He re­calls that he chose to study min­ing as the gov­ern­ment of­fered a tu­ition De­sign­ers and Vision. These ex­tend to more than 20 coun­tries and re­gions around the world.

The rev­enue of over­seas busi­ness ac­counts for 40 per­cent of Jangho’s to­tal profit, and Liu says they are en­deav­or­ing to build a com­pre­hen­sive in­dus­trial chain cov­er­ing cur­tain wall, in­te­rior dec­ora- sub­sidy for the ma­jor, and his fam­ily was too poor to af­ford his ter­tiar y ed­u­ca­tion.

He says while it was dif­fi­cult to gain en­try into univer­sity, he made the de­ci­sion in his third year to quit and en­ter en­trepreneur­ship.

Liu says many peo­ple at that time were in­spired by the late Chi­nese leader Deng Xiaop­ing’s South China tour in 1992, and flocked to pri­vate busi­ness af­ter­ward. He sensed that China would cer­tainly open up grad­u­ally, and trans­form into a mar­ke­to­ri­ented econ­omy.

Af­ter drop­ping out of univer­sity, Liu tried his hand at var­i­ous busi­nesses but it was in the cur­tain wall busi­ness tion and oph­thal­mol­ogy treat­ment, as well as re­lated busi­nesses, to en­hance cul­ti­va­tion


where he struck gold.

“Start­ing one’s own busi­ness can put self-ini­tia­tive into full play and is as dif­fi­cult as rid­ing a tiger and (you) can­not eas­ily dis­mount, es­pe­cially in the be­gin­ning.”

He re­calls the time when Jangho Group’s busi­ness was greatly im­pacted by the global mar­kets dur­ing the 2008 fi­nan­cial cri­sis, at a time when the group was ex­pand­ing its busi­ness glob­ally at a fast pace.

Liu says once you de­cide to start a busi­ness af­ter care­ful con­sid­er­a­tion, you should never give up and be per­sis­tent in mov­ing for­ward.

When asked about the key fac­tors of how he de­vel­oped of the group ex­ter­nally and in­ter­nally.

Liu says Jangho has in­vested in an Aus­tralian med­i­cal com­pany this year, be­com­ing its largest (non-con­trol­ling) share­holder. It will in­vest in more health­care in­dustr y projects, fo­cus­ing on spe­cial­ized hos­pi­tal and pri­mar y health, such as clin­ics and Jangho into an in­dustr ylead­ing com­pany in such a short time, Liu says he re­lies on gump­tion, an en­ter­pris­ing spirit to pur­sue ex­cel­lence and never to be sat­is­fied.

“Your will­ing­ness to pur­sue ex­cel­lence leads to your ac­tion, and your ac­tion leads to re­sults.”

B u t m o s t i m p o r t a n t l y, ex­cel­lent work can­not be achieved by one per­son and good busi­ness re­quires an out­stand­ing team to work closely and with syn­ergy, Liu says.

He em­pha­sizes that team­work is im­por­tant and man­age­ment should re­ply on team mem­bers, and ev­ery em­ployee should al­ways com­mu­nity hos­pi­tals.

“The group aims to not only pro­vide a so­phis­ti­cated liv­ing en­vi­ron­ment, but also the phys­i­cal health of hu­mans to so­ci­ety. And, in fu­ture, the group will fo­cus on de­vel­op­ment in both en­vi­ron­men­tal and health­care fields, and through both A- and H-share plat­forms.” keep a learn­ing alti­tude to learn from peers, the ad­vanced and even com­peti­tors. He said ex­cel­lent work can­not be done by only one per­son and a good busi­ness re­quires an ex­cel­lent team to work closely and syn­er­gis­ti­cally.

Liu says char­ity is ver y im­por­tant for him, and he do­nated 500,000 yuan ($72,400) to his alma mater North­east­ern Univer­sity in 1998. Dur­ing the univer­sity’s 90 th an­niver­sary, his fam­ily made a 50-mil­lion yuan do­na­tion to help build the Jangho Ar­chi­tec­tural In­sti­tute. He says he also sup­ports in­fra­struc­ture con­struc­tion and ed­u­ca­tion in his home­town.

Liu says they are also work­ing on an in­no­va­tive O2O (on­line-to-off­line) platform that ap­plies a B2B (busi­nessto-busi­ness) model to im­prove their ex­po­sure to more in­di­vid­ual cus­tomers through ex­ist­ing clients.

year-on-year in­crease in Sun­dart’s net profit for the first half of 2016


Liu Zai­wang, founder-chair­man of Jangho Group Liu Zai­wang, founder and chair­man of cur­tain wall so­lu­tion provider Jangho Group, re­veals that the group is work­ing on an in­no­va­tive O2O (on­line-to-off­line) platform that ap­plies a B2B (busi­ness-to-busi­ness) model to im­prove their ex­po­sure to more in­di­vid­ual cus­tomers through ex­ist­ing clients.

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