Yida Capital: "Green Investment" Is Not Only A Social Significance, But Also A Sensible Investment.

The relationship between social contribution and economic benefits of green investment is not an either or a relationship, but a relationship of symbiosis, mutual prosperity and mutual achievement. Recently, Yida capital president and founding partner, Yim chin Bo, said in an interview with the twenty-first Century economic report.

Yida capital is a steadfast green investment practitioner. Its investments in the green sector these years also bring good economic benefits. It is understood that Yida capital management team has invested more than 40 enterprises in the field of green industry, with a total investment of more than 1 billion yuan. Among them, daiels new material, Yama, Zhongcai energy saving, Hong Baoli, Daqian ecology, Jixin technology, Kang Daxin material, Yangjie technology, wanders, re technology, ai Kang technology, Xingyuan material, Huichang technology and so on, nearly 20 enterprises have landed in the capital market.

"Green investment is not only meaningful to society, but also a sensible investment." You said. With the support of policies, the enhancement of people's awareness of environmental protection and the continuous growth of industrial space, these factors have prompted the green industry to become one of the key areas in the layout of venture capital institutions.

You Jin Bai. Data map

The long-term dividend of the garbage classification industry chain will be released.

Twenty-first Century: in the field of green investment, what are the main segments of Yida capital? What are the specific investment logic?

You: we started the investment layout in the green industry very early, especially in energy saving, environmental protection, clean energy and other industries closely related to the development trend of the world and the national economy and people's livelihood. Among them, water / solid waste disposal, soil and environmental remediation, air treatment, clean energy production and application, clean energy vehicles and other fields are all important investment directions.

Take the clean energy industry as an example, we can see that, first, with the decline of subsidies and gradual withdrawal, the industry will be reshuffled, the market structure will gradually become stable, and the investment opportunities in the primary market will be less and less. Second, the era of parity Internet will become a "giant game". We will focus on the opportunity of mergers and acquisitions and fixed growth of the industry's head listed companies. Third, pay close attention to new technology, especially investment opportunities of disruptive new technologies.

Twenty-first Century: what people feel most deeply about the green field may be the garbage classification implemented last year. This initiative began last year in Shanghai, and has now landed in more areas. Does Yida capital have investment layout in the relevant areas of garbage classification?

You: in addition to the rigid regulations, the government's responsibility and the people's practice, garbage disposal must rely on the power of science and technology. Garbage sorting is not only domestic waste, but also the entire waste disposal industry chain. Solid waste disposal and recycling of resources have always been the focus of the capital investment layout. In 2019 alone, Yida capital invested 6 projects in these areas, with a total investment of nearly 200 million yuan. Typical investment cases include Tong Yuan environment, Zhong Shun environmental protection, Feng Bei biology, Peng Da environmental protection and so on.

We believe that with the full implementation of garbage sorting in the future, input in front-end classification, mid terminal collection and transportation and terminal processing will increase and long-term dividends will be released. These areas are bound to generate a number of excellent companies, and will also bring more investment opportunities to venture capital institutions.

Green investment has social significance and can also achieve good economic returns.

Twenty-first Century: in recent years, Yida capital has achieved good results in the field of green investment. Can you talk about the investment process of a specific case, what social contribution and return on investment it brings?

Yu Jin Bai: for example, vaders, founded in 2007, is a comprehensive environmental protection high technology enterprise. The company has long been committed to garbage pollution reduction, garbage pollution remediation, and high difficulty wastewater treatment, especially in the field of landfill leachate treatment and landfill repair.

Yida capital was the earliest investment institution of vaders and completed its investment in January 2016. With the help of our investment, the business of vaders has been developing rapidly. From 2016 to 2019, vaders' business income increased from 146 million yuan to 774 million yuan, with a compound growth rate of 74.37%. In January 14, 2020, wanders landed on the Science Board. According to the latest market value, the investment capital of Yida capital is estimated to be more than 10 times.

It is worth mentioning that after the outbreak of the new crown pneumonia, Tangshan Hospital of the second hospital of Nanjing became a designated hospital for the treatment of new coronavirus pneumonia in Nanjing. With the reliability and safety of the technology, vaders environmental protection has constructed the sewage treatment items of the hospital. After the completion of the project, it has achieved continuous and stable operation.

Twenty-first Century: how do you anticipate the future trend of green investment? At the policy level, the Fund Industry Association issued a research report on China's listed companies' ESG evaluation system and green investment guidelines (Trial Implementation) in 2018. What's the impetus to VC/PE's green investment?

You: we think green investment is a big trend and trend. First of all, the long-term value investment concept advocated by green investment and ESG investment is in line with the long term investment mode of private equity venture capital itself. We can see that more and more investment institutions begin to implement green, coordinated and sustainable development by integrating relevant requirements in investment principles and business processes.

Secondly, green investment is the general trend and people's wishes. On the one hand, the policy of environmental protection is stricter, and people's awareness of environmental protection is constantly increasing. On the other hand, after the supply side reform, the advantages of the leading enterprises are gathered, and the payment ability of industrial enterprises in environmental protection is higher and higher. All these have brought a very broad space for green industry development.

From the industry data, in recent years, China's energy saving and environmental protection industry has basically increased its value added by an average annual growth rate of about 15%, and the clean energy industry is also growing. In 2019, China's total energy consumption amounted to 48.6 million tons of standard coal, of which clean energy consumption accounted for 23.4% of the total energy consumption, accounting for an increase year by year.

Third, green investment is not only meaningful to society, but also a sensible investment. The experience of Yida capital also proves that investing in green industry can also achieve good economic returns.

Yida capital is a steadfast green investment practitioner. We have built a negative list of investments, such as one vote veto system for projects that may have environmental risks and moral risks. In the investment practice of every project, besides paying attention to the financial indicators of enterprises, they also attach great importance to environmental protection, social contribution and good corporate governance in investment decisions and investment behaviors.

As a venture capital organization, in the future, on the one hand, we will continue to follow the requirements of the ESG report guidelines, do well in effective ESG management and information disclosure, and on the other hand, we will also guide other invested enterprises to focus on ESG management through investment.

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