Introduction

Everbright-IDG Industrial Fund (“the Fund”) is one of the leading funds of its kind in the China market. Our ultimate mission is to create the country’s largest, most influential industrial fund by helping foster industry-wide advances and sharing in significant profits with investors. We are also well placed to seize historic investment opportunities afforded by the current developments in China’s M&A industry through a razor-sharp focus on making value investments.

The Fund is a joint initiative of the cross-border asset management platform of China Everbright Limited (“CEL”), a leading enterprise with state-owned background, and IDG Capital Partners (“IDG Capital”), a quality management company for international equity investments. By bringing the strengths and best investment teams of both firms to the table, CEL and IDG Capital are able to build an attractive fund with high potential. The Fund has total committed capital of not less than RMB20 billion.

The Fund’s focus is on first-tier industry projects, cross-border M&As, top companies, sector leaders, and enterprises with the potential to become sector leaders. CEL and IDG Capital connect them with the Chinese capital market; develop strategies for investment, financing, M&A, industry consolidation and management incentives; and provide value-added services across the value chain, including post-investment management and divestment.

CEL and IDG Capital have established an experienced investment team to manage this enormous Industrial fund. Featuring talent from top global investment firms and financial institutions, as well as highly esteemed Chinese and multinational companies. The team has considerable expertise in investment and asset management. It also has solid understanding of financial markets, M&As, corporate management and industries, and wide-ranging experience in hands-on operations. By focusing on long-term strategic investment and capitalising on industry trends, the Fund promises to generate substantial investment returns.

Investment Strategy

The Fund is firmly committed to value investment. We are not just a financial investor; rather, we see the importance of being involved with our investees across the value chain. By actively leveraging capital and our extensive management experience, we can judge the direction the industry is heading and offer our investees a platform of broad market prospects and unprecedented opportunities for rapid growth.

Given China’s economic transformation and changing consumption patterns, we have set our sights on the many dynamic IPO, M&A, restructuring and spin-off opportunities that are arising in emerging sectors. The Fund’s key portfolio covers Fintech, leisure and entertainment, high technology and new consumption.

Focusing on Industry Leaders, Connecting with Capital Markets

Traditional industries in China are undergoing profound change because of the internet and shifting consumer bases, resulting in a wave of M&As and consolidation. The Fund is therefore focusing its unrivalled resources on first-tier, sector-leading projects, both in China and overseas, that have clear competitive edges, exceptional, mature business models, stable profits and high potential. The projects that the Fund focuses on demonstrate a remarkable leading advantages, high profitability and high growth. These rare gems in China’s capital market typically command a price premium. For sector-leading listed companies, our team works with them at the intra-group level to help achieve corporate IPO or management buyouts. The Fund pursues M&A and industry consolidation opportunities in and outside of China, providing enterprises in the invested sectors as well as upstream and downstream enterprises with access to capital markets, in the light of building listed companies at the industry platform level.

Identifying Winners with High Growth Potential

We seek exceptional, fast-growing companies with the potential to become sector leaders. As strategic investors, we help these companies rapidly connect with capital markets. Also, by actively exporting management expertise, and by relying on the Fund’s highly experienced team and strong backing, we help our investees exploit upstream and downstream resources across the value chain, and provide them with operational experience in the mature capital market. Our goal is to help these companies realise their potential and become bona fide industry champions.

Investment Advantages

Strong Management Teams that Complement Each Other

The Fund combines the robust resources of CEL and IDG Capital. CEL has capitalised on China Everbright Group’s full license advantage and market influence for more than 20 years to garner substantial investment experience. With an international management platform and dozens of established funds, CEL and overseas investors have identified and developed many Chinese enterprises with high growth potential. The company aims to be the best cross-border asset management platform in China.

IDG Capital was the first international professional investment company to enter the Chinese market. It boasts considerable resources and investment experience in areas such as TMT and hi-tech manufacturing. It has also invested in companies that have played important roles in the development of the internet, such as Baidu, Tencent, Sohu and Xiaomi.

The collaboration between CEL and IDG Capital combines and maximises both companies’ rich experience and sizeable resources in investment and capital operations, within and outside China. The joining of these two powerful market players has also created the largest and most influential industrial fund in China, one that shares with investors the historic opportunities offered by the transformation and enhancement of the Chinese economy and the stable growth of the capital market.

A Fully Committed Star Investment Team

The Fund’s elite investment team, which includes members from both CEL and IDG Capital, is fully committed to day-to-day investment policies and project management. It has achieved stellar investment results in areas like the internet and hi-tech manufacturing, as well as in Chinese and overseas capital market operations. Team members also have extensive resources across the industry.

Outstanding Post-investment Management Capabilities

The Fund’s investment team has managed more than 30 equity investment funds in total. Over more than 10 years of investing, they have nurtured the growth of many flagship companies across various sectors and provided stable investment returns to investors in a complex economic environment.

CEL is a fully licensed cross-border capital management platform with a proven track record in investment management. The company currently manages HK$290 billion in funds. IDG Capital was the first international professional investment company to enter the Chinese market, and it has considerable resources and investment experience in areas such as TMT and hi-tech manufacturing. Both companies have accumulated a wealth of resources after many years of involvement in TMT and related industries. The Fund’s excellent investment record also includes capital injection and restructuring. The opportunities we offer up and down the value chain, along with our excellent post-investment management, promises substantial synergistic benefits for the Fund and its investors.

Everbright Investment Team

IDG Capital Investment Team