Focus On Hard Technology And Digital Technology: Rongyi Investment Enables Industrial Investment With Professional Advantages

In the past two years, due to the reduction of mobile Internet dividends and the support of policies such as the science and technology innovation board to the underlying scientific and technological innovation, hard technology investment, especially chip investment, has set off an upsurge in China. Not only have many new hard science and technology funds been established, but many large-scale comprehensive funds have also increased their investment in the field of hard science and technology.

The Rongyi investment team, with the background of ZTE and Huawei, has formed an industrial investment advantage in the field of hard science and technology with its professional ability accumulated in the industrial chain. Since 2015, Rongyi investment has successively invested in a large number of leading enterprises in chip semiconductor and digital industry, including Lante optics, nan'en automobile, rongpai semiconductor, Zhisheng micro, minglue technology, Hengwei technology, HengAn Jiaxin, Detuo information, Chengyun technology, etc. Among them, Lante optics and HENGWEI technology have been listed, and nearly 10 invested enterprises such as HengAn Jiaxin, Detuo and Chengyun technology are applying for IPO.

"The core of investment is to think and study the future, which requires investors to be highly professional and have a deep understanding of the industry itself. For the Rongyi team, the accumulation of 20 years in the communication industry chain has enabled the team to form a professional advantage in hard technology fields such as 5g and chips. " Huang Jinping, founder partner and chairman of Rongyi investment, told the 21st century economic report.

At the same time, Huang Jinping also stressed the need for a rational view of the current situation of high valuations of some head projects under the boom of hard science and technology investment. Professional investment institutions should be ahead of the market and invest in projects that have not yet become the hot spots in the market with a more forward-looking perspective. Instead of always following the market and looking for opportunities in the already overheated or even frothy track.

After nearly 20 years of industrial accumulation, it has transformed into industrial investment and optimized the investment "algorithm" through project practice

Before the establishment of Rongyi investment, Huang Jinping worked in ZTE for 17 years, and successively served as the director and chief engineer of ZTE Research Institute. Huang Jinping recalled that he joined ZTE as soon as he graduated from graduate school. At that time, the wireless communication industry was just starting, which was innovative business for ZTE and Huawei. With more than ten years' unremitting efforts, ZTE and Huawei have gradually occupied a place in the global market.

"This career experience is very similar to that in a start-up company. We almost went through a process from 0 to 1. It is also very valuable for us to learn how to transform technology into mature products, how to expand customers in the market, and how to do international business to compete with the best companies in the world. " He said.

In 2010, Huawei and ZTE's wireless communication business has been able to occupy 30% of the global market share. At that time, Huang Jinping and Liu Hongchun (another founding partner of Rongyi investment) realized the problem of industry ceiling and began to look for industries with broader development space, such as chip devices in the upstream of communication and intelligent terminal industry chain, and Internet and mobile Internet applications in the downstream.

From 2011 to 2014, Huang Jinping transferred from ZTE wireless communication division to ZTE venture capital to be responsible for investment, realizing the transformation from industry to industrial investment. In order to pay more attention to industrial investment, Huang Jinping officially established Rongyi investment in 2015. "We hope that the accumulation in industry and investment over the past 20 years will be fully applied to the new industrial investment platform." Huang said.

As there is no endorsement of historical performance, Rongyi investment, as a new brand, has been in the precipitation and accumulation period in the initial three years. The fund management scale is not very large, and the Fund LP is mainly personal investors such as former colleagues and friends.

Until 2019, due to the change of international situation, domestic attention has been paid to 5g, chip and other hard technology fields. As a team with profound accumulation in wireless communication industry, Rongyi has been strongly supported by Zhejiang provincial government and Xiaoshan district government. In 2019, Rongteng 5g industrial fund with RMB 1 billion will be raised in just half a year. After the subsequent two rounds of capital increase, the scale of Rongteng 5g industrial fund has reached 1.2 billion, and the total management scale of Rongyi investment is close to 2 billion yuan.

From industry to industrial transformation, Huang Jinping said that Rongyi team applied a set of "algorithms" formed in the past when the company made business decisions. With the continuous accumulation of investment experience and the continuous training of each project practice, Rongyi gradually optimizes and forms a set of "algorithms" for investment, and the success rate of investment is also constantly improved.

"We also suffered some losses in the early days. Fortunately, our" algorithm "was constantly optimized and improved, and eventually formed the most valuable asset of the team." Huang said.

For example, in terms of investment and selection of founders, most of the team members worked in ZTE and Huawei after graduation from school, and their environment was relatively simple, and their judgment on people was relatively simple. However, the personnel contacted in the process of investment should be more complex. After a period of accumulation, a set of "algorithms" for judging high-quality founders is formed.

"We must choose founders who have a pattern, think about the future, and have a spirit of sharing. These basic characteristics are very precious. For such founders, even if they have disadvantages in marketing and company operation, they can also make up for their weaknesses with the help of Rongyi. " Huang said.

Continue to deepen hard science and technology and digital technology

At present, Rongyi investment focuses on two areas. One is the hard technology projects in the upstream of communication industry chain, including chip devices applied in 5g, communication and automobile upstream. Second, digital technology projects in the downstream of the communication industry chain, specifically involving 5g, artificial intelligence, big data and other industrial applications.

"In the field of hard technology and digital technology, we insist on looking for leading enterprises with obvious technical threshold in the subdivision industry, and then find the right opportunity to invest in it to help the company further develop." Huang said.

At the same time, as an investment team with deep technical background, Rongyi team will not myth the value of technology itself. "We believe that technology is a tool. If you want to use this tool to generate value and solve problems in the industry, customers will be willing to pay for it. This is the core of investment value. If the mythical technology is superior, but it can not be applied to the ground, this is not what we want, nor can it be accepted by the capital market in the end. " He said.

At this stage, Rongyi has formed its own ecosystem in this hard technology and digital technology. In the field of digital technology, Rongyi has invested in more than ten projects, 80% - 90% of which have obtained the next round of financing or entered the IPO stage. Among them, there are several projects that apply big data to smart city, digital government, public security, operators and other subdivision scenarios.

In the field of hard science and technology, Rongyi has invested in chip semiconductor enterprises such as Lante optics, nan'en automobile, rongpai semiconductor, Kunteng microelectronics and Zhisheng micro, focusing on the layout of chip devices in the upstream of communication, 5g and automobile. Specifically, in the upstream industry chain of automobile, Rongyi has deployed nearly 10 enterprises, involving key components of automobile layout, including Yudian electronics, visual control electronics, Lande electronics, etc.

After the investment project, Rongyi investment also established deep cooperation with the government and industrial enterprises, and explored a set of "Fund + base" multi win ecosystem mode in the investment practice. At present, with the support of local governments, Rongyi has established industrial base platforms in Hangzhou, Jiaxing and other places. For enterprises, they can get the support policy of the government in the industrial base. For the government, the introduction of excellent enterprises can form a good ecology in the local area. For Rongyi, it can also achieve a higher return on investment of the fund.

Talking about this year's investment plan, Huang Jinping said that Rongyi investment will continue to deepen its efforts in the hard science and digital technology sectors. For example, in terms of digital technology, Rongyi recently invested in a company in the field of coal mine digitization, which can help realize the replacement of machines in dangerous positions and the digitization of the whole mining process, greatly improving mining efficiency and reducing personnel costs. "The enterprise we invested in is already the leader of the industry segmentation. In the past two years, its performance has grown rapidly and its scale has also been very large. But its market share is still only about 5%, and there is still a lot of room for development in the future. " He said.

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