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Vol. 61 Jan-February 28th
, 2017
Latest Report
NEEQ Boasts 10,000+ Listed Companies; Private Placement Shows
Explosive Growth
By Robin Duan , Zero2IPO Research Center
According to PEdata under Zero2IPO Group, the number of listed enterprises on the NEEQ officially
surpassed 10 thousand, reaching 10,163 by the end of December 2016. There are 9,211 base-layer
enterprises, and 952 innovation-layer enterprises; 8,509 enterprises adopted contract transfer and 1,654
were traded through market makers. 413 companies went listed in December, a slightly drop from the
previous month, or a Q-o-Q decrease of 9.03%. Among all the listed enterprises, 74 were backed by
VC/PE firms, accounting for 17.92% of the total, a Q-o-Q decrease of 9.76%. By the end of December,
the total market cap of the NEEQ reached US$584.41B with an average P/E ratio of 28.71 times.
Figure 1 Month-on-month Comparison of NEEQ Listings in 2016
Source: PEdata, Jan. 2017 www.pedata.cn
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Review on Pilot Program of PE Market Making Business Concludes; 10 Enterprises Are
Shortlisted including Shenzhen Capital Group
On December 13, 2016, the National Equities Exchange and Quotations (NEEQ) released the
shortlisted PE firms for field acceptance of professional accreditation of market making business pilot
program, including Shenzhen Capital Group Co., Ltd., Shandong High-Tech Investment Corp.,
Guangdong China Science and Merchant Capital Management Co., Ltd., Fosun Capital, DH Fund
Management Co., Ltd., Jiangsu Add or Equity Investment Fund Management Co., Ltd., Sensegain
Asset Management Group Co.,Ltd., Rosefinch Investment, ZheShang Venture Capital Co., Ltd., and
Shenzhen Cowin Asset Management Co., Ltd.
The NEEQ claimed the top 10 PE firms enjoyed greater influence and higher popularity, with every
evaluation indicator far exceeding the average level. They not only cover all types of PE firms
including venture capital, private equity, securities investment, etc., but also involve both state-owned
and private capital background, which are very representative. According to the review plan, the top10
PE firms will enter the next stage for field acceptance, which signals substantial operation of the pilot
program of PE firms engaging in market making business.
Figure 2 Month-on-month Comparison of Trading Value on the NEEQ in 2016
Source: PEdata, Jan. 2017 www.pedata.cn
322,000 deals were concluded on the NEEQ with 5.05 billion shares traded, amounting to US$4.01B,
up 34.60% Q-o-Q. The growth momentum continued. Deals via contract transfer amounted
to US$2.54B, and market making deals US$1.48B, accounting for 36.80%. The NEEQ Composite
Index went upward in December and closed at 1243.61 points on December30. The NEEQ
Market-making Index corrected downward at the beginning of this month, closed at 1082.92 points on
http://www.pedata.cn/
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December 20, and then started going up and closed at 1112.11points on December 30, the highest in the
past four months.
The top 10 listed enterprises by trading amount in December were: Mobvista (NEEQ: 834299),
ChinaEquity Group (NEEQ: 833858), Thunip (NEEQ: 835956), Donghai Securities (NEEQ: 832970),
Yongan Futures (NEEQ: 833840), CertusNet (NEEQ: 832800), Lianxun Securities (NEEQ: 830899),
Wanjiang Financial Leasing (NEEQ: 834237), United Winners Laser (NEEQ: 833684),
HEAVEN-SENT Capital Management Group (NEEQ:833044). Specifically, UnitedWinners Laser and
Lianxun Securities adopted market making transfer, and the others were traded through contract
transfer.
Table 1 Part of VC/PE-backed Companies Listed on NEEQ in December
Company Industry Previous Investors
Biochem Group Special Instrument Industry Shunxi Capital
Handu E-commerce
Textiles & Clothing
New Access Capital, Greenwoods
Investment, Korea Investment Partners,
IDG Capital, Zhuhai Qianheng
24tidy Residential Services Oriza Holdings, Sequoia Capital, UVM
2 Venture ICH
Kidswant Retail Greenwoods Investment, Warburg
Pincus, CICCZhide
Fractalist Internet Marketing STAS Asset Management, Shuzi
Dianjing Investment,
Soochow Buyout Capital
Acer Building Material Junsan Capital, Chengshu Capital,
Zhonghui Jinjiu Investment
Kintor Pharmaceuticals Pharmaceuticals HighLight Capital, Bioventure,
Rongfeng Investment, Zhongyi
Mingyuan, Legend Star, Oriza Holdings
51welink Internet Marketing CSC Equity Investment, Chun Xin
Capital
Zhenhua New Material Power Supply Xintianyu Capital
Pionner Special Instrument Industry Zheke Venture Capital, Zhihui
Qianchao
Source: PEdata, Jan. 2017 www.pedata.cn
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With Clothing Care +Green Plant Order, 24tidy Gains Investment from VC/PE firms including
Sequoia Capital and Oriza Holdings
24tidy (NEEQ:839895) was officially listed on the NEEQ on December 16. 24tidy, established at the
end of 2012, is engaged in mobile Internet-based order of clothes washing and care as well as fresh
flowers. Currently, the company has two subsidiaries and 10 branches. Its online service of clothes
washing and care covers 10cities including Shanghai, Beijing and Suzhou, and its online green
plant service covers 11 cities. According to PEdata under Zero2IPO Group, investment firms such
as Sequoia Capital and Oriza Holdings had participated in the company’s previous financing.
24tidy disclosed the process of establishing and dismantling its red chip structure in the public transfer
statement. It first established Cayman 24tidy as the entity for overseas financing and to seek IPO
(registered in Cayman Islands). Cayman 24tidy established Hong Kong 24tidy which set up
ShangluTech., an exclusively foreign-owned enterprise in Chinese mainland. Cayman24tidy, Hong
Kong 24tidy, Shanglu Tech. and 24tidy Co., Ltd. set up VIE structure. During the process, Oriza
Holdings participated in A-round overseas financing of Cayman 24tidy as the affiliated party,Sequoia
Fund participated its B-round overseas financing, and Singapore's UOB Venture participated in B+
round financing via UVM2.At the end of 2015, 24tidy purchased Shanglu Tech, so the VIE
structure terminated. In February 2016, 24tidy conducted the 5th capital increase. Specifically, funds
under Sequoia Holdings invested US$8.40M, accounting for 24.28% of the total; Yuandian Zhengze
No.1 Venture Capital Fund under Oriza Holdings invested RMB8.00M (about US$1.24B);Singapore's
UOB Venture invested US$3.00M via UVM2.In August 2016, 24tidy signed an investment agreement
with ICH, specifying ICH invested US$5.00M to purchase 3.20% of 24tidy’s equities.
Korean Fashion Handu E-commerce Wins Support from VC/PE firms like IDG and Korea
Investment Partners
On December 28, 2016, Handu E-commerce (NEEQ: 838711) was listed on the NEEQ. Handu
E-commerce, a fast fashion retailer set up in 2013, is committed to providing fashionable clothes and
accessories for urban young people. Currently, it has nine holding subsidiaries, three joint stock
subsidiaries and one branch office in South Korea.
In February 2011, the company started to build the VIE structure. The founder established a company
in British Virgin Islands and a Cayman-based company HanduEsel as an entity for overseas listing. In
August 2011, the Cayman-based company introduced many investors including IDG Capital in its
A-round financing. In September 2014, Korea Investment Partners (KIP) was introduced in B-round
financing. At the end of 2013, the company gradually dismantled VIE structure. According to its
transfer statement, Handu E-commerce increased capital in September 2014, with Star VC partners
Huang Xiaoming and Li Bingbing each investing RMB5.00M, and Ren Zhenquan(Ren Quan)
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RMB3.00M. In August 2014, three funds under Greenwoods Investment invested RMB138M in Handu
E-commerce, followed by IDG Capital and funds under Korea Investment Partners.
Greenwoods Investment Reports Three Investee Listed on the NEEQ, JD Capital and Oriza
Holdings Two Each
Three enterprises invested by Greenwoods Investment landed on the NEEQ this month, including
manufacturer of capsules of Traditional Chinese medicine XianChiho (NEEQ: 839989), maternal and
children products supplier Kidswant (NEEQ: 839843), and fast fashion retailer Handu E-commerce
(NEEQ: 838711). JD Capital and Oriza Holdings had also participated in two enterprises’ historical
financings that went listed on the NEEQ this month. JD Capital invested in the software service
provider Flying soft (NEEQ: 870342) in document information resources management, and chemical
fiber fabric producer Chosion (NEEQ: 870001).Oriza Holdings invested in clothes washing and care
brand 24tidy (NEEQ: 839895) and Kintor Pharmaceuticals(NEEQ: 839419) engaged in R&D and
manufacturing of innovative drugs.
Figure 3Month-on-month Comparison of Private Placement on NEEQ in 2016
Source:PEdata, Jan. 2017 www. pedata.cn
Private Placement Deals See Spurt ; China Dragon Securities Completes Largest Deal in 2016
383 listed enterprises concluded private placement in December, totaling US$4.58B, up 127.49% from
the previous month. Here is a quick review of the whole-year performance of private placement market:
from January to April 2016, the funds raised stood above RMB10B (about US$1.44B); trade and
investment in the private placement market cooled down from May to October, with only
RMB5.10B (about US$0.74B) raised in October; the market started picking up in November, with the
fund raising amount skyrocketing to an interim peak.
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China Dragon Securities (NEEQ: 835337) completed one round of private placement, raising a total of
US$1.39B, the largest deal in 2016. The price was RMB2.61 per share. Beside the original shareholders,
33external investors subscribed the shares such as Shandong State-owned Asset Investment Holdings
Co., Ltd., Gansu State-owned Asset Investment Group Co., Ltd. and Qingdao Jinshi Haorui Investment
Co., Ltd. In addition, Capital Helicopter (NEEQ: 832494) and Wanjiang Financial Leasing (NEEQ:
834237) raised US$461.10M and US$281.27M respectively this month, ranking the second and third
places.
Table 2 Top 10 Private Placement Deals in December
Ranking Company Industry Amt. Raised
(US$M)
Shares Issued
(Million)
Issue
Price
(USD)
Date
1 China Dragon
Securities
Other Financial
Services 1,386.44 3,686.55 0.38 2016/12/30
2 Capital Helicopter Others 461.15 1,600.19 0.18 2016/12/26
3 Wanjiang
Financial Leasing
Other Financial
Services 281.27 1,600.00 0.18 2016/12/26
4 IRENA Group Sports 186.89 18.93 9.87 2016/12/30
5 NewMargin
Ventures Finance 174.13 3.54 49.17 2016/12/28
6 Baihe.com Internet Services 127.09 280.00 0.45 2016/12/13
7 Joyu Culture E-commerce 103.75 11.79 8.80 2016/12/21
8
Nantong Sanjian
Construction
Group
Construction of
Building & Civil
Engineering
93.66 44.80 2.09 2016/12/6
9 Jiuzhou Quantum
Technologies
Electronic
Equipment 57.88 17.33 3.34 2016/12/21
10 Sinovation
Ventures Other Services 51.87 4.35 11.92 2016/12/12
Source: PEdata, Jan. 2017 www.pedata.cn
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Industry Breakdown & Geographic Distribution
Figure 4 Industry Breakdown of NEEQ Listed Enterprises in December
Source:PEdata, Jan. 2017 www.pedata.cn
The listed enterprises on the NEEQ in December involved 27 Grade 1 industries. Machinery
manufacturing, IT, electronic & opto-electronics equipment ranked the top three places, with the
number of listed enterprises standing at 65, 55 and 38 respectively or 15.78%, 13.35% and 9.22%. In
particular 74 enterprises were backed by VC/PE firms. IT, electronic& opto-electronics equipment and
machinery manufacturing had the most listed enterprises of 14, 12 and nine respectively, or 18.92%,
16.22% and 12.16%.
Figure 5Geographic Distribution of NEEQ Listed Enterprises in December
Source:PEdata, Jan. 2017 www.pedata.cn
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The listed enterprises on the NEEQ in December are from 28 provinces. Guangdong,Beijing and
Jiangsu topped the list with 68,59 and 58 listed enterprises respectively, accounting for 16.46%,
14.29% and14.04%.Specifically, 74 enterprises were backed by VC/PE firms. Jiangsu, Beijing and
Guangdong were recorded 16, 14 and 12 VC/PE-backed ones, representing 21.62%, 18.92% and
16.22% respectively.
BPEA News
No.61st of BPEA monthly training held successfully.
On January 12th, 2017, No.61st of BPEA monthly training held successfully in the meeting room of
Dacheng law office. This training was focused on risk management of private equity fund. Ms. Liu
Linsen, a senior partner of Beijing Dacheng law office shared her experiences with the attendees.
>Read more
The first monthly activity of “BPEA LP committee” held successfully
On January 13th, 2017, the first monthly activity of “BPEA LP committee” hosted by BPEA LP
committee and Beijing E-town international investment & Development Co., Ltd held successfully in
Beijing. This activity was aimed to strengthen the communication and cooperation between members
of LP committee. Many leading cadres and CEO attended this activity. >Read more
No. 49th
of "SmartMatch roadshow"- A special roadshow of the New Material Projects
successfully held in BPEA
No. 49th of SmartMatch roadshow – a special roadshow of the New Material Project successfully took
place in Beijing on January 13th, 2017. The founder of Beijing Green Energy company and the CEO of
Liuwan science and technology company introduced their main products and business models to
investment professionals who attended this meeting. >Read more
The first media communication meeting of CAPE&BPEA held successfully.
The first media communication meeting of CAPE&BPEA held successfully in our meeting room on
January 17th, 2017. At the beginning, Ms.Yan Xiaolu, secretary-general of CAPE made a welcome
speech to all the attendance. Then, chairman assistant of CAPE and deputy secretary-general of BPEA
Mr. Li Ming introduced the history of CAPE and BPEA, he also made a work review of 2016 and a
prospect of 2017. Chief editors and senior journalist from People’s daily online, Economic daily, China
financial information network, Caixin Media and other 10 financial medias attend this meeting.
http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19650http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19652http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19651
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>Read more
The first special event of BPEA Cultural Investment committee successfully held.
The first special event of BPEA Cultural Investment committee successfully held on January 18th,
2017. In this event, we organize more than 20 institutions to visit Beijing Cultural Center fund. Dr.
Teng Zhenghui, deputy secretary-general of CAPE hosted this event. >Read more
The first special events of BPEA Cross-border Investment and Financing committee succes
sfully held.
The first special events of BPEA Cross-border Investment and Financing committee successfully took
place in Beijing on January 22th, 2017. Ms. Yan Xiaolu, secretary-general of CAPE, hosted this event.
The theme of this symposium was the expectation of 2017’s merger and acquisition market. Since
December 2016, the outbound capital flow was restricted. Therefore, the challenge of cross-border
investment projects became the hot issue in this activity. Professionals from banks, law firms and
investment institutions attend this event and made a warm discussion. >Read more
No. 10th
activity of BPEA NEEQ committee held successfully.
On February 15th, 2017, No. 10th activity of BPEA NEEQ committee successfully held in our meeting
room. The theme of this lecture was “investment decision and disposition management”. Professor
Zhao Yue, from HKUST Business school, shared his ideas to attendees. >Read more
No.62nd
of BPEA monthly training held successfully.
No.62nd of BPEA monthly training successfully held on February 23rd, 2017. Mr. Jili, senior
director of Zero2IPO research center was specially invited to share his view about the private equity in
2016. More than 20 investment professionals attend this activity. >Read more
http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19653http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19654http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19655http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19656http://www.bpea.net.cn/index.php?m=newscon&id=497&aid=19657
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BPEA Upcoming Events
Nordic Fundraising Summit 2017
March 8th and 9, 2017 | Deloitte | Weidekampsgade 6, 2300 Copenhagen S, Denmark
The Danish Venture Capital and Private Equity Association (DVCA), in association with NVP,
ESTVCA, LTVCA, IVCA, CAPE, SECA, NVCA, BVA, BVK, PSIK, BVCA, FVCA and SVCA, is
proud to present the 9th Nordic Fundraising Summit in Copenhagen on March 8th and 9, 2017.
This conference will bring together some of the most important LPs worldwide. The objective is clear:
to pair them with some of the most successful venture and buyout funds from all over Europe.
Along with an exciting programme and general networking, meetings between LPs and GPs are
possible from 9:30 - 18:00 on March 8th and from 09:00-15.00 on March 9th.
Speed dating takes place in dedicated meeting rooms with optimum privacy.
Registration and questions:
Participation fee for GPs and associated members of the CAPE is 495 € pr. person.
(Non-members of CAPE may also participate for 995 € pr. person.)
Contact DVCA’s Viktoria Kanto, [email protected] to register.
Please note that the number of participants is limited to 150 persons.
For more information, please also consult: www.nordicfundraisingsummit.com
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协会主要成员:BPEA main members include:
吴尚志 创始人、董事长鼎晖投资
Wu Shangzhi,Chairman of CDH Investments
邵秉仁 原国家经济体制改革委员会副主任
Shao Bingren, Former Deputy Director of the State Economic System Reform Commission
方风雷 董事长厚朴投资
Fang Fenglei, Chairman of HOPU Investment
赵令欢 弘毅投资总裁联想控股有限公司常务副总裁
John Zhao,CEO of Hony Capital,Executive Vice President of Legend Holdings
北京股权投资基金协会成立于2008 年 6 月 20 日
协会服务中心 :为会员及相关从业人士提供 : 专业咨询、辅
导,基金注册,商务会议、培训等服务。
协会致力于:促进行业环境建设 建立自律监管机制
维护会员合法权益 研究行业发展动向
培养相关专业人员 组织内外交流合作
BPEA committed to:Promote the issuance of preferential policies for PE industryBuild the self-regulatory discipline of PE industrySafeguard the legitimate rights of membersResearch development trends of PE industryTrain relevant professional individualsCooperate with domestic and overseas institutions
BPEA Service Center:BPEA provides services for members and relevant industrial individuals: professional consultation and guidance, fund registration and recording, business conference,training and so on.
Beijing Private Equity Association (BPEA) was established on Jun 20, 2008
田溯宁 创始合伙人、董事长宽带资本
Edward Suning Tian, Founder and Chairman of CBC Capital
刘澄伟 总裁苏州元禾控股股份有限公司
Lin ChengWei, President of ORIZA HOLDINGS
单祥双 创始人、董事长兼总裁中科招商集团
Shan Xiangshuang, Founder,Chairman and President of CSC GROUP
倪泽望 董事长深圳市创新投资集团
Ni Zewang, Chairman of Shenzhen Capital Group Co.Ltd
邓锋 创始人、董事总经理北极光创投
Feng Deng, Founder and Managing Director of NLVC
刘乐飞 首席执行官 中信产业基金
Liu Lefei,CEO of CITIC Private Equity Funds Management Co., Ltd.
熊晓鸽 创始合伙人IDG 资本
Hugo Shong , Founding General Partner of IDG Capital Partners
李爱庆 董事长北京科桥投资
Li Aiqing, Chairman of Beijing Co-Bridge Investment Advisor Ltd.
何小锋 教授、博导北京大学经济学院金融系
He Xiaofeng,Professor and Doctoral Advisor of the Finance Department of theEconomics School at Peking University
沈南鹏 全球执行合伙人红杉资本中国基金
Neil Shen, Founding Managing Partner of Sequoia Capital China
张懿宸 董事长、首席执行官中信资本
Zhang Yichen, Chairman and CEO of CITIC Capital
于剑鸣 管理合伙人 新天域资本
Yu Jianming, Managing Partner of New Horizon
杨向东 董事总经理凯雷投资集团凯雷亚洲基金联席主管Xiang-Dong (X.D.)Yang,Managing Director and Co-Head of Carlyle Asia Partners ("CAP")
熊焰 董事长国富资本
Xiong Yan, Chairman of Wealth Capital
宋斌 合伙人云月投资
Robin Song, Partner of Lunar Capital Management
王晓波 总经理亦庄国投
Wang Xiaobo, General Manager of E-Town Capital
李昊 董事长江铜有邻 Harry LI, Chairman of JCC ASSET MANAGEMENT CO.LTD
姬连强 总裁文化中心基金
Ji Lianqiang, President of BCCF
游文丽 董事总经理首钢基金
You Wenli, Managing Director ofBeijing Shougang Fund Co.,Ltd
联系方式:电 话:86-10-88087061 88087229 邮 编:100080 传 真:86-10-88086229 邮 箱:[email protected] 地 址:北京市海淀区彩和坊路 11 号华一控股 13 层网 址:www.bpea.net.cn
Contact us:Tel:86-10-88087061 88087229 Zip:100080Fax:86-10-88086229 Email:[email protected], Huayi Holdings Mansion, No.11 Caihefang Road, Haidian District, Beijing Website:www.bpea.net.cn