Jiuding Capital Invests Three Agricultural Projects within One Year
With the structural adjustment of agricultural industry in China and the strengthening of governmental support against agriculture, agriculture has become the most favorite industry for VC and PE. Jiuding Capital is one of the pioneers attaching highly on this industry, which invested 200 million yuan in three agricultural projects last year.
Jiuding Capital eyed on agricultural industry again in the end of 2008 and invested 80 million yuan in Tianyuan. Founded in 2001 in Nanning City, Tianyuan is China’s second pesticide pharmaceutical enterprise. It achieved sales amounts of 800 million yuan in 2008, and maintaining a CAGR of 48%.
Ren Hongwei, Secretary of the Board of Tianyuan, said that Jiuding Capital’s investment of 80 million yuan would significantly solve its capital bottleneck and help shrink the gap with the industrial leader NPS, which was listed in Shenzhen Small and Medium Enterprises Board last year.
Tianyuan is the third agricultural project of Jiuding Capital in 2008. In March of the same year, Jiuding Capital invested 30 million yuan in Qingdao Sanchuan Juice and 70 million yuan in Jiangsu Huifeng.
“Based on cautious working style, we have invested in agricultural industries which cover the whole industrial chain. We have investigated other companies and planned to invest more. Tianyuan has a stable market in China, and is integrating under the guideline of policies. Jiuding Capital will help it integrate via merger to become an industrial leader,” Zheng Liangliang, Researcher of Jiuding Capital said.
Jiuding Capital, a native venture capitalist with funds of 2 billion yuan under management, has invested through its fund subsidiaries in China’s industrial leaders such as Gold Cup Electric, Henan Billions Chemicals and Linoya Electronic, most of which have begun broadening its go-to-market efforts.