On November 12th, Shenzhen Capital Group Co., Ltd., known as “SCGC”, was excited to announce their 200th successful initial public offering (IPO) — a new record in China’s domestic venture capital industry. Shanghai Anlogic Information Technology Co., Ltd. (stock code: 688107), one of the invested companies in SCGC’s portfolio, was listed on the Science and Technology Innovation Board (STAR Market). The IPO of this leading domestic semiconductor and integrated circuit design enterprise, has once again witnessed SCGC’s success in acting as a discoverer and cultivator of innovational value-added companies.
Back in July 2015, the number of listed companies invested by SCGC had just reached 100; only six years later, this number has doubled, reaching 200.
So far, SCGC has invested in 1,185 companies with a cumulative investment amount of about 75.5 billion RMB. Of which, 380 projects have been successfully exited (including IPO Exit) and the invested companies are listed in 17 capital markets over 9 countries. Leveraging on its professional investment system and comprehensive post-investment services, SCGC has helped many great companies to grow, such as: CATL, Mindray Bio-Medical Electronics, Weichai Power, SMIC, Akeso, Yiheda, Western Superconducting Technologies, Fuzhou Rockchip Electronics, QI-ANXIN Technology, Bestechnic, Sunway Communication, Raytron Technology, Fudan Microelectronics, BGI, RemeGen, Montage Technology, Winner Medical, and so on.
According to SCGC Research Center, these listed companies have shown four patterns as follows:
1. High proportion of key & core technology — 80% of those companies are in the key & core technology sector such as information technology, smart manufacturing, biotech/healthcare, new material, new energy, etc. Among the 200 listed companies, 26 are listed on the STAR Market, accounting for about 7% of the total number of companies listed there.
2. Focusing on SMEs — SCGC mainly makes long-term investment in small and medium-sized enterprises (“SMEs”), especially self-innovative high-tech SMEs in emerging markets. According to the stage of companies’ business growth at the time of SCGC’s initial investment, the proportion of SMEs is over 90%.
3. Concentrating on early-stage projects with long-term strategy — 77.5% of the companies invested by SCGC are in early or growing stages. Insisting on value investment, SCGC intends to accompany its invested companies through multiple rounds of investment and provide these companies long-term value-added services.
4. Wide coverage in regions — the 200 listed companies are from 59 cities in 24 provinces in China and 5 cities outside of China, and 32% of the listed companies are from the Greater Bay Area.
Founded in 1999, SCGC is one of the first batch of venture capital firms set up in China. The growth of SCGC could be seen as a microcosm of China’s venture capital industry’s development. The development of SCGC is owing to the great opportunities brought about by China’s reform and opening up, accompanied by high economic growth, continuous improvement of capital market, and continuous emergence of innovative companies. At the same time, a new round of global technological revolution and industrial transformation, along with the progress of technology development in China, have also brought a lot of investment opportunities.
With the mission of discovering and cultivating great companies, and by leveraging on its professional investment capabilities and in-depth value-added services, SCGC has become a comprehensive investment conglomerate with core business in venture capital, and SCGC aims to become: a prime investor who knows entrepreneurs the best, the most forward-looking leader in key & core technology, and the most professional ecological operator in investment management systems.
Ni Zewang, the chairman of SCGC, stated that SCGC will focus on investment in new economy and cutting-edge technologies. Increasing investment in new energy, new materials, energy conservation and environmental protection industries, SCGC is trying to realize the green concept in investment practice, in order to accelerate achievements in carbon neutrality and peak carbon dioxide emissions. At the same time, SCGC will also focus on investing in seven strategic emerging industries, such as the new generation of electronic information, high-end manufacturing equipment and biomedical industry. In addition SCGC will bridge to eight future industries, such as quantum information, brain science and brain-like intelligence, visible light communication, optical computing, and aerospace technology, in order to cultivate more great enterprises contributing to the sustainable development of humankind.
SCGC will also increase investment in the Greater Bay Area to cultivate strategic emerging industries. Weighing the Greater Bay Area as a great opportunity, SCGC will integrate domestic and foreign resources, and actively promote the internationalization process, by strengthening international fundraising, project investment, project management and exit strategy. International capital is encouraged to participate in the investment process of innovative startups in China and share the growth value of great companies. SCGC is targeting high-quality projects around the world, striving to aid in the growth of cutting-edge technologies and innovative models to serve the welfare of human society.
About SCGC
Established in 1999, SCGC is one of the earliest venture capital investment institutions in China. With the mission of discovering and cultivating great companies, the company has developed into a comprehensive investment conglomerate with venture capital as its core business. It has managed over 100 funds totaling about 423.6 billion RMB. In the main field of venture capital investment, SCGC focuses on investing in SMEs, independent innovative high-tech enterprises and emerging industries, covering the whole life cycle of enterprises. In the past five years (2016-2020), SCGC has been ranked first among the local VC/PE institutions by Zero2IPO Group.
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Company Name: SCGC
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