2017-投资界电子周刊No0553-英文版_13页_509kb

PEdaily E-Magazine Issue No. 553 Summary

Preface

• PEdaily E-Magazine is a weekly publication originally known as Zero2ipo e-Weekly, first published in 2006.
• It is tailored for professionals in the private equity (PE) and venture capital (VC) sectors, offering in-depth investment and financing news, industry insights, data analysis, and expert opinions.
• The platform, pedaily.cn, leverages over 10 years of research resources from the Zero2IPO Group to deliver timely, accurate, and comprehensive market reports.
• It invites all stakeholders, including investors, entrepreneurs, analysts, and lawyers, to contribute their perspectives and witness the development of China's PE/VC industry.

Core Content

1. September 2012 IPO Activity

• 12 Chinese companies completed IPOs in September 2012, raising a total of US$1.08B or US$90M on average.
• This marked a new low in IPO proceeds for the past three years.
• IPO activity declined compared to August 2012, with a 20% quarterly drop in the number of IPOs and 52% year-on-year decline.
• The financing amount also dropped by 6.1% sequentially and 67.8% year-on-year.
• Only one IPO occurred in overseas markets, with CMGE listing on NASDAQ on September 25.

2. Hot News Highlights

a. Air China Travel Service Receives Capital Injection

• Legend Capital, a venture capital firm under Legend Holdings, invested hundreds of millions of yuan in Air China Travel Service Ltd..
• The investment is driven by the high potential of the outbound travel market.
• The company is one of the largest providers of outbound travel products in China.

b. Tianjin Huamai Gas Equipment Completes Pre-IPO Funding

• Tianjin Huamai Gas Equipment Co., Ltd., a leading high-tech enterprise, completed its last round of fundraising before IPO.
• The investor was Shanghai Grand Yangtze Capital, managing Guohongkaiyuan Fund.
• The funds will be used for new product R&D and market expansion.
• Founded in 2004, the company specializes in air source gas transmission equipment, LNG-vehicle fueling systems, and environmentally friendly denitrification.

c. Richlink Capital Invests in Chongqing Banghao Seed Industry

• Richlink Capital injected RMB20M into Banghao Seed Industry through its affiliated funds on September 19.
• The investment is based on the rapid growth potential of the seed industry, which is tied to national strategy.
• The seed industry is expected to undergo frequent integration and restructuring in the coming years.

d. Legend Holdings Acquires Wuling Wine and Renames It as Legend Wine

• Legend Holdings acquired Hunan Wuling Wine for RMB400M.
• The acquisition entity, Legend Wine Holdings Co., Ltd., was renamed Fenglian Wine Holdings Co., Ltd. after the National Day holiday.
• It is now a secondary subsidiary of Legend Holdings, alongside Lenovo Group.
• Zhao Linghuan, a member of Legend Holdings' Executive Committee, serves as Chairman of Fenglian Wine.

e. Kangsii.com Secures Angel Investment

• Kangsii.com received several million yuan in angel investment from three institutional investors, including Zhenfund.
• The funds were mainly used for product R&D, with a smaller portion allocated to publicity and promotion.
• The company's product, "Period", is a mobile phone software offering female calendar services based on menstrual cycle needs.
• The company has seen rapid user growth, reaching 1.5 million in August and 3 million in September.
• Chai Ke, the founder, predicts initial earnings by the end of the year.

f. China Molybdenum Debuts on SSE

• China Molybdenum Co., Ltd. listed on the Shanghai Stock Exchange (SSE) on September 9, 2012.
• The company issued 200 million shares at RMB3 per share, with a PE ratio of 30.18.
• The funds raised will be used for clean and high-efficiency resource utilization projects with an annual disposal capacity of 42,000 tons of low-grade complex scheelite.
• Shanghai Liuhe Capital had previously acquired 9.7 million shares (0.20% holding) in 2010.

g. Elefirst Science & Tech Debuts on ChiNext

• Elefirst Science & Tech Co., Ltd. listed on ChiNext on September 9, 2012.
• It issued 21.67 million shares at RMB18.18 per share, with a PE ratio of 30.18.
• The funds will be used for expanding the power consumption information collection system.
• Hangzhou Yiming Venture Capital and Suzhou Alpha Investment had invested in the company prior to its listing, holding 3.6923% and 3.0769% of shares respectively.

3. Terra Firma Plans to Establish Energy Fund with China Development Bank

• The UK-based private equity firm Terra Firma, led by Guy Hands, plans to set up a USD3B–5B energy fund with China Development Bank.
• The fund aims to invest in renewable energy projects, indicating interest in green energy.
• Some market observers have cautioned against over-enthusiasm in this sector.

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Conclusion

This issue of PEdaily E-Magazine provides a comprehensive overview of the Chinese PE/VC industry in October 2012, highlighting IPO trends, major investments, and market dynamics. It underscores the challenges in the IPO market, the strategic importance of the seed and energy sectors, and the ongoing developments in the industry. The publication remains a valuable resource for industry insiders seeking timely and in-depth market insights.