China Zhongji Investment's government-guided fund business cooperation is steadily progressing
China Zhongji Investment was established in 2016 with the support of the Hebei Provincial Committee and Provincial Government, and initiated by the Provincial Federation of Industry and Commerce. Its successful establishment and growth are inseparable from the care and support of the government. In recent years, China Zhongji Investment's investment layout in high-end manufacturing (mainly aviation and automobiles), semiconductors, and the Greater Health industry has gradually yielded results. In 2020, the invested projects Jiang Hang Equipment and Jingyuan Environmental Protection were successfully listed on the STAR Market. In 2021, three projects, namely Yatong Group (automobiles), Pu'ai Medical, and Haiguang Information, have had their IPO applications accepted by the exchange, and several other projects are in the process of IPO application. Its equity investment capabilities have been recognized by the market and the government. In promoting economic development, the government increasingly emphasizes the leverage effect of industry-guiding funds, especially the role of venture capital in the early stages when "specialized, refined, distinctive, and new" SMEs lack credit financing capabilities. Because China Zhongji Investment possesses both government connections and market achievements, it has been favored by numerous government-guided funds. The cooperation with government-guided funds has expanded significantly in the past two or three years!
In 2019, Zhongji, leveraging its local background, partnered with Hebei Provincial and Tangshan Municipal guiding funds to establish the Hebei Zhongji Caifang Industrial Upgrading Fund in Tangshan, supporting Hebei's industrial development. Shortly after the fund's establishment, a number of high-quality projects were invested in, including Aibo Car, Leuven Instruments, Xin'ao Shares (additional issuance), Ji Heng Pharmaceutical, Xuanzhu Biology (agreement signed), and Zhitong Technology (agreement signed), receiving high praise from partners. Furthermore, based on the national Northeast Revitalization Strategy and the strong expectations of Liaoning Province and Shenyang City to accelerate the development of high-tech industries, China Zhongji Investment quickly established a presence in the Northeast region. In addition, from 2019 to the present, China Zhongji Investment has successively held talks on guiding fund cooperation with governments in Henan, Hubei, Anhui, Sichuan, Shanghai, Jiangsu, Zhejiang, and Shenzhen. Currently, the Shanghai fund has been established, and Chengdu and Nanjing have completed the decision-making process and are in the process of signing fund agreements. The total scale of government-guided funds that have been or are being established exceeds 2 billion yuan, with a cumulative investment scale of 5-6 billion yuan. The cooperation with guiding funds is proceeding steadily and orderly.
During the fund establishment process, China Zhongji Investment, in conjunction with the government's industrial development goals, has partnered with many excellent listed companies and large enterprise groups to jointly establish funds, achieving industrial-financial integration, accelerating industrial development, and improving investment effectiveness. For example, in the promotion of the Chengdu automobile industry fund, China Zhongji Investment and Arte have joined forces, combining China Zhongji Investment's professional capabilities with Arte's industrial advantages as a leading domestic automobile design listed company, receiving high recognition and support from the government.
Excellent private equity fund management institutions need to possess comprehensive capabilities in fundraising, investment, management, and exit. Although China Zhongji Investment has a short history, thanks to shareholder support and team efforts, the company is rapidly transitioning from an asset management institution primarily investing its own funds to one primarily managing funds. China Zhongji Investment will integrate its own funds, capabilities, partners, and invested enterprises to promote China's industrial upgrading, support local economic development, and realize its dream of contributing to the nation's industrial development!
