Shanshan Stock: Prudent Listing Reserve, First Fix Venture Capital And Internal Strength

In March 2007, the A share market was booming, coupled with the news that the gem was about to launch. As a leading enterprise in the clothing industry, 600884.SH launched its own Vc firms, Ningbo Shanshan Venture Capital Co., Ltd.

An unnamed person from the board of directors of Shan Shan Shan said to the first financial daily that almost all projects of Shanshan venture were invested in 2007. From the second half of 2008, the venture capital management team, while looking at the project, waited for market opportunities and did not really launch. Therefore, even if the gem was launched on schedule this year, the listing resources of the venture capital listing of Shanshan venture company are still very limited.

This person said that although 2009 is a year full of opportunities, but for Shanshan venture, it is more important to see a good investment market, tap potential growth enterprises, and continuously accumulate strength.

It has its own funds to invest in venture capital projects. Shanshan venture capital is involved in high-tech and traditional projects. It mainly inspects the development potential of enterprises and the possibility of listing, and it does not necessarily have to be related to the business of Shanshan stock company. The investment income is allocated according to the proportion of shareholders' contributions.

According to people familiar with the matter, Shanshan venture capital has invested in its own capital and is facing pressure on investment cycle to some extent. This is also one of the reasons for not many investment projects.

Although the board of directors of the Shanshan stock company has considered setting up a private equity fund management company to raise VC funds from the private sector or other channels, the timing is not yet ripe.

In March 30, 2007, Shanshan Group and its subsidiary Shanghai Shanshan New Material Research Institute Co., Ltd. (hereinafter referred to as "Shanshan new material") invested 180 million yuan and 200 million yuan respectively to establish Shanshan Venture Capital Co., Ltd.

Statistics show that the registered capital of Shanshan venture was 200 million yuan, and it was 90% and 10% respectively from Shanshan stock and Shanshan new material.

Ningbo and Shanshan ventures jointly invested and built the special carbon company of Shanshan.

The latter has a registered capital of 9 million yuan, of which 2 million 250 thousand yuan is invested in the new material of fir, accounting for 25% of the registered capital; Shanshan invested 6 million 750 thousand yuan in capital investment, accounting for 75% of the registered capital.

In addition, Shanshan venture invested 50 thousand yuan in Ningbo Yinzhou District Hong Soft Information Technology Co., Ltd., accounting for 25% of its registered capital, and invested 20 million yuan in Ningbo global Light Co., Ltd., earning 15% of the latter.

It also made two capital increases, one of which was a 8 million 250 thousand yuan increase in Ningbo's new Limited by Share Ltd's mortgage pledge service, which increased the registered capital from 10 million yuan to 30 million yuan.

The other is to add 70 million yuan to Shanghai Guo Ji Electronic Materials Co., Ltd.

To strengthen venture capital business, after a year of investment practice in 2007, Shanshan stock company has decided to inject new vitality into its venture capital business.

In January 31, 2008, Shanshan venture accepted the 50 million capital increase of Shanghai long Tian Investment Co., Ltd. (hereinafter referred to as "Shanghai Tian Tian"), its registered capital increased from 200 million yuan to 250 million yuan, and an office was set up in Shanghai.

"This is to strengthen the team, more effectively inspect potential projects and manage investment projects," said a person on the board of the Shanshan stock company who did not want to be named.

After the completion of the capital increase, Shanghai dragon field Cci Capital Ltd holds 20% stake in Shanshan venture, and the shareholding ratio of Shanshan stock is reduced from 90% to 80%.

In the face of a few times earnings at that time, Shanshan venture was careful to set up a risk hedging mechanism for every investment, so the embarrassment of shrinking investment was not great.

An insider of Shan Shan venture said that the signing of the gambling agreement by investors and enterprises is the default industry practice, and the contents and forms of each bet are different from each other according to the actual situation of the enterprise. However, due to the fact that the two sides will sign a confidentiality agreement before making due diligence, they can not reveal more details.

In 2008, Shanshan stock also invested 150 million yuan in the "Langfang science and Technology Valley" project, accounting for 75% of the registered capital of the project.

According to the reporter, the focus of the project is independent innovation, technological incubation and industrialization of achievements. It is striving to be included in the national key science and Technology Industrial Park.

This year, Shanshan venture also invested 10 million yuan in Shandong blue ocean Limited by Share Ltd, with a shareholding ratio of 3.307%.

Although the investment income of listed companies such as Bank of Ningbo (002142.SZ), Xinhua media (600825.SH) and the lithium battery material industry has been invested, the contribution of venture capital to the net profit of Shanshan stock is not very obvious.

Facing the great temptation of the gem, the goal of Shanshan venture in 2009 may not be how many companies can be listed and how many shares can be withdrawn, but to actively cultivate enterprises with broad market potential and potential growth potential, and improve the management level and management ability of the invested enterprises through output management and value-added services.

Wang Xiaonan: editor in charge