2017-投资界电子周刊No0544-英文版_14页_507kb

PEdaily E-Magazine Issue No. 544 Summary

Core Content

PEdaily E-Magazine is a weekly publication tailored for professionals in the private equity (PE) and venture capital (VC) sectors. Originally named Zero2ipo e-Weekly, it has been in operation since 2006 and is now hosted on pedaily.cn. The magazine provides in-depth market reports, industry insights, data analysis, and profiles of key players in the PE/VC ecosystem.

The issue focuses on the state of China's PE market during the first half of 2012, highlighting a notable cooling trend and a significant drop in fundraising. It also features several recent developments in the PE/VC industry, including successful IPOs, failed applications, and new fund launches.

Main Points and Key Information

1. China's PE Market Trends in H1'12

• Fundraising Decline: In H1'12, 71 PE funds were raised, totaling US$5.21B, marking a 77.1% decrease from H1'11 and a 67.6% drop from H2'11.
• Mainstream Fund Types: RMB funds and growth funds remained dominant in the market.
• Investment Activity: The investment market was less active compared to the previous year, with 252 PE investment deals totaling US$7.32B.
• Regional Shift: Investments were more distributed across regions, with increased focus on the central and western areas.
• Exit Deals: There were 84 exit deals in H1'12, including 75 IPO exits, 7 equity transfers, and 2 M&As.
• IPO Performance: The number of IPOs slightly increased, indicating some optimism in the market.

2. Notable Company Listings

• Hasee Computer: Approved for ChiNext listing, raising RMB1.499B for its Kunshan Laptop R&D Production Base Project. The company reported RMB5.696B in revenue and RMB297M in net profit in 2011.
• Taikong Panel: Listed on ChiNext on August 1, with an issue price of RMB16.8 per share and a P/E ratio of 30.27. Six PE institutions participated in its early investment.
• Zhongmei Coal Mine Equipment Manufacture: Listed on SZSE on July 31, with an issue price of RMB7.4 per share and a P/E ratio of 20. GF Xinde Investment Management was one of the early investors.
• Hebang Corporation: Listed on SSE on July 31, with an issue price of RMB17.5 per share and a P/E ratio of 21.6. Several PE institutions participated in its pre-IPO investment, including Haidilao, which invested RMB10M.

3. Failed IPO Attempt

• Lyfen: Its IPO application was rejected by the CSRC on July 27, 2012. The rejection followed quality safety issues in its "Preserved Fruit" product, which exposed problems in its supply chain and operations.

4. New Fund Launches

• Yunnan Chuangli Pharmaceutical Fund: The first pharmaceutical industry development fund in Kunming High-tech Industrial Development Zone, with a total asset scale of RMB1B and RMB215M raised so far. The fund aims to promote Yunnan's biomedicine industry using local biological resources.
• Haiziwang Investment Holding: Announced a US$55M equity investment from Warburg Pincus, aimed at accelerating business development and expanding store networks. Haiziwang operates as a maternal and infant retail chain with 9 stores in the Yangtze River Delta and Chongqing.
• Ping'an Innovation Capital: Established with a RMB1B scale to support sci-tech innovation and emerging industries, focusing on early-stage companies in financial technology, consumption, healthcare, automobiles, and new media.

5. Institutional Developments

• Sinolink Securities: Launched a direct investment subsidiary, Sinolink Dingxing Investment Co., Ltd., with RMB200M in registered capital. It also increased its investment in Sinolink Tongyong Fund Co., Ltd. by RMB58.8M, raising its registered capital to RMB280M.

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Conclusion

This issue of PEdaily E-Magazine provides a comprehensive overview of the Chinese PE/VC landscape in early 2012, highlighting both the challenges and opportunities in the market. It underscores the cooling trend in fundraising, the shift in investment focus, and the success of some companies in going public. Additionally, it reports on new fund launches and institutional expansions, reflecting the dynamic nature of the industry.