中文
Investment Philosophy
Fronting numerous investment approaches and enormous opportunities ahead, the Group chooses to dedicate, develop and discover its field of expertise. By concentrating on industries interrelated to industrial and consumption upgrading, the Group embraces quality investments and enterprises over all stages.
Investment Principle:
Quality investment across all equity stages with an in-depth consideration throughout the industrial chain
  • Through and Dedicated Research: Devotion to long-term research and accumulation of knowledge. Keep up and stand on the top of the cutting-edge innovation and revolution of the target industries.
  • Coverage over diversified equity stages including: VC, PE, Pre-IPO, PIPE, M&A and etc.
  • Take initiative in the search of quality investments by seizing the opportunities uncovered from our through research and understanding of the industry. Arrange, centralize and utilize network and resources to promote horizontal and vertical mergers and acquisitions.
R&D Driven Manufacture (RDDM) Overview

China’s Economy is challenged by the sharp increase of leverage ratio across government and enterprises, the aging of population, and the decline of private sector’s profitability. Since 2010, over 3,000 enterprises have experienced a decline of returns on invested capital (ROIC), which dropped from 10.3% to 7.4%. China is obliged to promote the transition towards technology-intensive and R&D-driven industrial sectors in order to foster future productivity.


The improvement over production efficiency could ease the wage increase due to lack of labor forces. Meanwhile, economizing the resource of production will lessen the related cost and thus give rise to the return on assets. As technology progresses, the nation’s manufactures would move up along the value chains towards the more advanced and intelligence-intensive manufacturing stages. This kind of endogenous growth from industrial upgrading ensures the sustainability of the increased return on capital.


During 2015, China’s State Council unveiled its first 10-year national plan for the transformation of China’s manufacturing industry, the “Made in China 2025”. The plan explicated the direction and upcoming supportive policies to advance manufacturing restructure. Hence, we have determined to concentrate on R&D-driven and efficiency-centered sectors, including industrial robots, sensors, semiconductor devices, optical-communication devices, as well as the upstream and downstream fields, such as cloud computing, information security software, and artificial intelligence.

Modern Consumer Services (MCS) Overview
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With the climb of income level and the acceleration of urbanization, service sectors start to account for a greater portion of the national GDP. The development of modern consumer services is becoming a significant driven-force of the growth of GDP and the upgrading progression of the China’s economic structure.


Modern service industry mainly consisted of four sub-categories: circulation services, productive services, consumer services, and public services. Since the 50s, developed countries, such the U.S., have gone through rapid grow and restructure within the service sector. From 1970 to 2005, OECD nations had experienced variation in the relative proportion of the value-added of each service sub-category over the total value-added of the entire services industry: circulation services dropped from 34.23% to 25.35%, while productive services increased from 23.93% to 29.01% and consumer services surged from 17.59% to 21.32%.


Consumer service industry will benefit from the overall growth of the service industry and bonus from the restructure within the industry. To comply with such trends, we would pay close attention to education, tourism and healthcare sectors.

Synthesized Deliberation
  • ENVIRONMENT
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    Prioritize projects with superior investment environment. Elements under assessment include but not limited to geographical locations, economic policies, political settings, laws and regulations, social dynamics and etc.
  • INDUSTRY
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    Concentrate on industries fostered by industrial and consumption upgrading such as innovative R&D-driven manufacturing, consumer services and other sunrise industries with huge growth potential.
  • STAGE
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    Exam each potential investment with the consideration of industry characteristics to select those with clear business models and sustainable cash flows.
  • OVERALL
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    Comprehensively evaluate market conditions, industry, management, competitive advantages and etc. specific to each investment.
Decision-Making

Post-Investment
  • COORDINATION
    Upon completion of the investment processes, project teams will coordinate and handover relevant work to the appointed post-investment personnel.
  • VOTING RIGHTS AND INFLUENCE
    The Group will appoint representatives to attend shareholder meetings of the portfolio companies. The representatives shall exam the topics of discussion and exercise the Group’s voting rights as instructed. All voting rights must be performed by strictly obeying the investment committee’s voting decisions, which must be agreed upon by the committee through synthetized deliberation and equal votes.
  • EXIT STRATEGIES
    Design and exercise exit strategies based on the development status of each portfolio company and the market condition at the moment. Exit strategies include IPO, share repurchase, M&A or etc.
  • CONTINUOUS MONITORING
    Project teams will collect financial and operational updates related to the investment projects on a regular basis; the teams are also responsible for composing quarterly, semi-annual, and annual analysis reports which must contain potential risks and risk control proposals. The project teams are required to notify the management team of the Group immediately, had any significant adverse financial or operational situation appears.
  • VALUE-ADDED SERVICES
    Portfolio managers are supposed to follow up with the portfolio companies shall the companies demand any value-added services. Portfolio managers are responsible for reserving related resources, promoting the integration of industries within the enterprises, assisting re-financing, M&A, reorganization and etc. as requested by the portfolio companies.
  • ARCHIVES MANAGEMENT
    Project teams must keep track and document updates of their portfolio companies (including interviews, financial and operational statistics and analysis, value-added services and etc.). All records must be handed over to and archived the risk control department.