Quanzhou Tea Shoes And Clothing Three Industry Captured Venture Capital "Heart"

As a planner and founder of venture capital company, Zhang Fenggang has more than 25 years of experience in finance and venture capital, and his first branch office in Quanzhou, to some extent, indicates the future direction of venture capital.

To this end, the Morning Post reporter recently won an exclusive interview with Zhang Fenggang, invited him to analyze the future trend of capital.

    擴張選址：泉州“擠掉”北京

According to the original plan of "zhong an investment", the first branch was originally set up in Beijing instead of Quanzhou.

After several visits, the company changed its mind. The first stop was Quanzhou, followed by Xiamen and Beijing.

When it comes to such an arrangement, Zhang Fenggang thinks it is no exaggeration for the reason that "the gold content of Quanzhou industry is very high".

"Let's count, Shishi's textile, Jinjiang's shoe making, Anxi's tea, the umbrella industry of East stone, Nanan's stone, Huian's stone carving......"

Zhang Fenggang said, according to their research in recent years, Quanzhou is a region where private economy is very active, and has more than 20 relatively mature industrial clusters.

"Industrial maturity, having a certain professional scale, and having potential private capital market, all of these make us heartbeat."

Even in the national economic environment, Zhang Fenggang thinks Quanzhou is also a good choice for investment.

"Under the influence of multiple unfavorable factors such as high oil prices, depreciation of the US dollar, subprime mortgage crisis and tight money, Quanzhou enterprises have shown strong resilience, reflecting the stability of the economy."

According to statistics, tens of thousands of small and medium-sized enterprises have closed down this year. Compared with Wenzhou, Dongguan and other regions, Quanzhou has a much smaller number of businesses that fail. Zhang Fenggang believes that "this is the supporting role of Quanzhou brand". It is precisely because of "stability" that they have strengthened their confidence in locating Quanzhou.

"Although the enterprises in Quanzhou are not mainly technological enterprises, most of their industries are traditional industries, but their business is good, and most of them are commodity businesses. This is an important industry we are looking for."

Zhang Fenggang said that international investment banks have their own investment preferences when choosing investment targets, and they will have their own favorite industries, and the commodity industry is just one of their preferences over the years.

    投資方向：茶鞋服三產業

As early as 3 years ago, the team led by Zhang Fenggang came to Quanzhou for inspection. In the past two years, he has also had contacts with many Quanzhou enterprises.

There are 2 enterprises in Mengniu, CICC, China Ping An, Heng An, Nan Fu battery and so on, which have been successfully invested by Paul Hill, chairman of the board of directors, and Fujian Morgan Stanley Asia Limited, which is served by Paul Hill and Zhang Fenggang, is the sponsor of Anta's listing.

After setting up a branch in Quanzhou, "zhong an investment" has already locked 3 industries in Quanzhou, namely, tea industry, clothing and shoemaking.

"These 3 industries are viewed because they all have several advantages that other industries do not have."

According to Zhang Fenggang analysis, the first is to have the unique high-quality resource advantages of the whole country, such as the tea industry in Quanzhou, the advantage of Tieguanyin is very obvious, and has obvious geographical characteristics; the two is to have a batch of private enterprises and market share advantages of the largest production scale in the country; the three is to have the advantages of the most famous brand enterprises in the country.

Zhang Fenggang said that in the short term, the company's investment will not expand beyond these 3 industries, and will first look for projects in these three industries.

He expressed optimism about the prospects for development in Quanzhou: "according to the law of international investment and the current return on investment, if we invest in 10 enterprises, there are 7 failures, so we still make money, and we are 100% success."

Many years ago, there was no protection of venture capital policies and regulations. The company's investment in Fujian's Heng an international and South Fu batteries had been a great success. Moreover, venture capital has gained a lot of policy support.

We are looking for 'prey'.

    投資偏好：征服挫折的企業

In Zhang Fenggang's view, a complete and detailed project feasibility report can often get the favor of venture capital directly.

"Apart from the project, we are concerned about the financial data in the report first. Once the important data are adulterated, we will go back."

Zhang Fenggang believes that honesty is an important prerequisite for choosing an investment target.

Zhang Fenggang said frankly that he had intended to invest in an enterprise in Quanzhou, but because of a failure to solve the details, the final cooperation aborted.

"That is a well-known brand enterprise in Quanzhou. The data indicators are very good, and there are very bright prospects for development. But a few shareholders are entangled in equity, which shows that the team has no combat capability."

He said, "choosing an excellent management team means choosing success.

When we investigate the enterprise, we focus on the team composition of the enterprise.

The comprehensive quality of the team must be professional, management and market development. It is good at unity and user use, and has a strong sense of responsibility and execution.

Zhang Fenggang prefers leaders who admire, decision-making and leadership over years of growth: "enterprises that have failed have been more preferred, because no enterprise can encounter difficulties."

In addition, the ability of an enterprise to innovate and whether there is a good product is also the focus of Zhang Fenggang's inspection.

Zhang Fenggang believes that a good product has the ability of continuous innovation, such as BMW, Mercedes Benz and other famous enterprises, that is, constantly upgrading the quality products, so that investors can see the continuous innovation ability of products.

    投資目標：推動成功上市

Zhang Fenggang pointed out that once Vc firms has chosen to cooperate with enterprises, they are twin brothers, and must produce a tacit understanding that blood is thicker than water.

"Our investment in Quanzhou is mainly based on equity investment.

The first step is to invest large sums of money in the enterprise to acquire part of the equity, which is the investment of real gold and silver.

He said.

However, in his view, the first step of investment is just the beginning, and the latter part is the most critical.

"What is more important than the investment is the value-added services provided later."

Zhang Fenggang said that after investment and cooperation, venture capital and enterprises are one, and naturally help enterprises to further enhance their competitiveness.

"We will use professional knowledge, provide intermediary help, from sales to finance and so on every link, improve the insufficiency of enterprises, and maximize the advantages of enterprises."

For Vc firms, supporting the successful listing of enterprises is their ultimate goal.

"Only when enterprises are listed, can we achieve international operation and sustainable development, then we can achieve success."

Zhang Fenggang stated that after opening a branch office in Quanzhou, their goal is to "support the listing of an enterprise every year after 2 years".

    融資建議：不宜一味求大

Zhang Fenggang suggested that private enterprises in Quanzhou should not blindly pursue the best venture capital investment, otherwise they would easily lose some opportunities. "Just like being in love, they do not necessarily have to go to big money or find rich people, but give up some opportunities to marry with well-off families".

"Local enterprises should not blindly seek big ventures and big investment banks. Those small ventures may have more practical cooperation conditions and higher success rates."

He said, "especially for enterprises in the early stage of entrepreneurship, we can rely on such a capital to expand rapidly. After all, people can come up with a sum of money at once to help enterprises achieve expansion."