Beauty PE Chen Wenjiang'S 12 Years

She did not have the actual operation experience of enterprises, but promoted many projects to be listed successfully.

12 years of PE and VC career experience, every day to contact new projects, dealing with different types of entrepreneurs, she said the challenge is to attract her to adhere to the charm.

"This is a particularly rare and wonderful platform, which is always dealing with business elites and will never feel mechanical repetition". Chen Wenjiang, executive director of CDH venture capital, shares with us her 12 year career sentiment.

After graduating from many years of work, the beautiful woman who has invested in the university has remained enthusiastic and persistent in her career.

"It is very difficult to find such a platform, sharing with them so many elites, their entrepreneurial stories, management concepts and experience that there is no better learning opportunity, which is actually the best business school."

Chen Wenjiang's excellent platform is known as the best investment agency in China.

In the past few years, CDH has invested in more than 40 enterprises, including Mengniu, Lining, Zhong min, Hang Mei, Shuanghui, Yongle, BELLE, Seville solar energy and Joyoung household appliances. Among them, more than 10 are listed companies at home and abroad. Their PE success rate is almost 100%, and the total investment return rate is ahead of the industry.

From the first CDH Growth Fund in 2002 to US $100 million, and now to the $1 billion 600 million of the third funds, plus the CDH venture capital fund set up in 2005, CDH now manages over $3 billion 500 million of assets.

"It is the steady investment style that has been formed over the years, bringing CDH to today."

Chen Wenjiang summed up this.

In May 28th, 2008, the first Chinese A share listing project since May 28th, the Joyoung shares (002242.SZ) landed in the small and medium sized board of the Hong Kong stock exchange, the first public offering of 67 million shares, and the increase was 104.13% on the same day.

Joyoung shares is mainly engaged in the R & D, production and marketing of small household electrical appliances, and its soybean milk machine has a market share of more than 80%.

This is a landmark project in the history of Ding Hui, and the manipulator behind it is Chen Wenjiang.

"This list is absolutely beautiful, and the investment value of Joyoung shares is very large."

A senior investment manager commented.

After another success, Chen Wen Jiang said frankly that investing will sometimes be very tiring and painstaking. Especially for women, because they are in contact with new projects every day, studying and learning new industries, new business models, and dealing with different types of entrepreneurs require high learning ability.

"However, such a great challenge is exactly the charm that appeals to me."

"Joyoung is not looking for us because it is short of money. It is looking for a long-term partner."

The "digital business age" (hereinafter referred to as DT): Joyoung is the first company to be listed in A shares after 2002. We are interested in why you decided to place Joyoung's listing target in A shares instead of other markets like Hongkong or NASDAQ.

Chen Wenjiang: there are several factors in this respect: first, Joyoung is the brand of domestic consumer goods, the main body is the mainland market. Its main product Joyoung soya bean milk machine has Chinese cultural characteristics. If it is listed on A shares, it will greatly help its brand promotion, consumer awareness and marketing promotion.

Second, A share market after the split share structure reform, the shares have been fully circulated. For investors like us, A shares have also become a way to exit.

Local enterprises are more likely to be recognized by investors in the local capital market, and should be recognized by investors as a good platform.

DT: How did you find a Joyoung?

Chen Wenjiang: there are also origins and fate. It seems that we really invested in Joyoung for a long time. But we met Joyoung people 8 years ago.

We are not strangers to meet, they hit it off. It's not that simple.

DT: did CDH begin to focus on Joyoung long ago because it was a very good business prototype?

Chen Wenjiang: from the point of view of Joyoung, I think it has many points that are quite good and unique.

The first is Joyoung's team. The founders have been together for more than 10 years. They have been concentrating on the products of China's soybean milk consumption culture and healthy consumption culture, and have been working hard to cultivate the market.

When they grow up, there may be various temptations in the market. They can do something else with a certain amount of money, but they still focus on kitchen appliances.

This team's dedication and dedication make us very optimistic.

There are also some other things that we value very much. For example, Joyoung has almost no credit. It is cash withdrawal and payment to the company. The cash flow of the company is very benign.

There are also Joyoung self built flat channels and unique on-site demonstration interactive marketing.

DT: How did you view the risks of the project?

Have you ever thought of such a small household appliance company, will it not be approved by the market?

How do you avoid the risk of investment?

Chen Wenjiang: in fact, investment is always risky.

For investment, it is a match between risk and reward.

I think Joyoung will also have some potential risks, or the potential competition needs to face, because it makes the soya bean milk machine today such a big market plate, the income profit is so good, the market share of a family is so high (the current market share of Joyoung soya bean milk machine is over 80%), there will be more people jump in to do this thing, this is all people can think of.

Joyoung is also aware of this very early, so we discuss with the company the measures to deal with, how can we quickly enhance the brand and strength, respond to potential competitors, and extend to the upstream and downstream, enhance their competitive barriers, these are ways to deal with the risks of the business.

DT: for Joyoung, apart from capital, does CDH provide any other value-added services?

Chen Wenjiang: of course there are many. We and Joyoung management discuss Future Ltd's development strategy and industrial structure, which has many constructive help for Joyoung.

In addition, in the whole process of Joyoung's share reform and A share listing, Ding Hui, as a professional investment company, has provided many professional services and assistance.

If it's just for money, Joyoung actually doesn't need any investment.

In 2006, there were hundreds of millions of cash in the company's books.

Many entrepreneurs in China will worry about introducing their investors to dilute their shares. If they are short of money, they can understand that if they are not short of money, what will they do for you?

So it's not looking for us for money.

Joyoung is looking for a long-term partner. After we become one of its shareholders, we can discuss and discuss the long-term development strategy and how to improve the internal management of the company.

DT: so far, what help has CDK already provided for Joyoung?

Chen Wenjiang: after the launch of Joyoung, a leader of the Shenzhen Stock Exchange said that the timetable for Joyoung's listing was too miraculous. In August last year, only a share reform was made. It was listed in May this year.

From this you can see that it is impossible for any knowledgeable shareholder to help.

Because most entrepreneurs focus on the operation of their industries and companies, but for the listing of such capital operation is everything new, everything has to start from scratch, including accounting, lawyers, brokerages, investment banks communication, each other's language is not in a category, many are learning process.

So companies with backgrounds like ours can help them understand the various aspects of listing and docking with capital markets, which will speed up its listing process faster.

DT: when do you plan to quit Joyoung?

Chen Wenjiang: we plan to make a long line.

In Joyoung's prospectus, we promised a three year lock up period. In fact, three years later, we did not necessarily quit.

The business philosophy of CDH is that we hope to hold long-term investment in the enterprises we invest in, because we are very optimistic about the development of China's macro-economy. Besides, the enterprises we invest in are all the leading enterprises in the carefully selected industries, and they are well aware of the fundamentals of these enterprises.

If you quit, you have to go to the next Joyoung, but if the industry itself has room for appreciation, why should it quit early?

The investment of CDH has never been a short-term behavior.

"CDH has a tradition of not investing in industries unknown to us or completely unaware of."

DT: as you mentioned just now, Wu Shangzhi, chairman of CDH, said last year that price is not the most important indicator of withdrawal, but also the mentality of working with enterprises.

For exit, especially in the current global capital market, what kind of options do CDH have?

Chen Wenjiang: as I mentioned just now, CDH is optimistic about the Chinese market, and the enterprises we invest in are all excellent enterprises that are selected by thousands of companies. Therefore, we will grow together with enterprises and maximize the value of the company in a benign environment. Then the value of shareholders can be maximized.

The capital market is always ups and downs, and there is no market that has been rising.

For financial investors like us, it is normal to choose the most appropriate point of capital market to quit.

DT: how do you handle this exit point?

Chen Wenjiang: for us, we should consider our proper investment return.

The ups and downs of the capital market are all short-term. If in the long run, what kind of company, what kind of industry, what kind of growth company, and the capital market should have certain rules for valuation, so we will hold the company's shares in a long-term and steady way, and then choose the appropriate exit point according to the valuation of the industry in the capital market.

Exiting at a relatively high point is of course idealized, but no one can always be at the absolute highest point.

In fact, the appropriate exit point is only a good factor to ensure the return on investment, and more importantly, a reasonable entry into the price.

DT: we found that the industry of CDH investment is very extensive. It involves almost all the fast growing industries in China, such as consumer goods, IT, medicine, education, Internet and hotel chains.

What is the investment tendency of CDH?

Do you know what the criteria are for enterprises to invest?

Chen Wenjiang: CDH is rooted in China's investment companies. We choose to invest in fast-growing enterprises in the context of China's rapid economic growth.

But this is easier said than done.

But there is a tradition in CDH, which does not invest in industries unknown to us or completely unknown to us.

No matter which industry is relatively mature or new industry, we must try our best to understand it before investing.

We will not pursue the current hot spot. If we do not understand, we are not good at it. We will not do it.

Our attitude is that the professional field is done by professional talents. For example, we have four funds: venture capital fund, growth fund, hedge fund and real estate fund.

Why do we need to set up specialized real estate funds?

It is because the investment in real estate is different from that in ordinary industries, and it needs professional talents to operate.

DT: you have invested in the industry for 12 years. What are the principles and standards that enterprises are not worth investing in?

I remember you told other media that sometimes you feel the same way with your intuition. Is that so?

Chen Wenjiang: sometimes it may be interlaced like mountains, for example, many entrepreneurs ask us, "what do we do, then you will vote for us?"

Probably many investors' answers are almost the same. They all say that there are good teams, great potential market size and potential to become the leading enterprises in the industry.

How can we predict that the company will become a leading company?

This may be a matter of personal judgement.

Today Mengniu is already the leader of the industry. When Ding Hui threw it, it was the situation of bright, three yuan and Erie three giants. Mengniu was still very small, but why did he throw it?

This is a judgement. Everyone's interpretation is different, and judgment will be different.

In fact, my so-called intuition is the ability to judge people and things comprehensively after years of dealing with people.

"We must persist in rational investment and not change because of the market's trouble, and do not drift with the tide."

DT: Ding Hui is regarded as the best investment organization in China. What do you think of CDH's investment compared with other investment institutions?

Chen Wenjiang: I think the most essential thing is that CDH can really stick to rational investment.

It may be very empty. Everyone else thinks that everyone wants to be rational.