"This experience cultivated our sense of developing our major businesses - a painstaking, yet necessary, process."

After in-depth analysis, Poly Group decided in 2000 to choose international trade, real estate and culture as its major business focuses. It has been an arduous process for the group to turn itself from a conglomerate covering more than 10 industries into a more concentrated operation.

Eighteen small companies under the group were integrated into five major subsidiaries. "There has been a lot of pain because many of those who led the small companies had to relinquish their posts, and some quit because of the changes in the company," Chen said.

Poly Group is clearly one of the country's most influential State-owned enterprises, but Chen, firmly defends it against claims that it is just another pampered company that could not have got where it is without government help.

"Outsiders always think Poly Group's rapid growth has been the result of government support. The truth is that Poly Group's development has coincided with the country's reform and opening-up," Chen said.

Poly Group was founded in February 1992 on the basis of its predecessor, Poly Technologies, which was set up in January 1984.

The group's first major focus was on international trade and business, undertaken by Poly Technologies Inc. It later became the exclusive agent for luxury brands including Ferrari and Mercedes-Benz, giving Poly Group a strong backbone to develop its international trading businesses.

In March 1999, Poly Group was transferred from the supervision of the People's Liberation Army to the Central Large State-owned Enterprises Administration Committee, becoming an SOE.