Zhongyi ZHAO Spoke on The 1st China Modern Agriculture Industry Investment Summit
The First China Modern Agriculture Industry Investment Summit 2010 was closed on 18th June, 2o10 in Beijing Marriott Hotel Northeast. Themed by low-carbon agriculture and green economy, the summit was organized by Partner Capital. Lots of famous investors, government leaders and corporate managers attended the summit and commonly discussed the 5 topics of “Real Meaning and Policy Discussion about Developing Low-carbon Agriculture in China”, “New Investment Opportunities Under Low-carbon Agriculture and Green Economy”, “Replacing Low-carbon Agriculture VS High-Carbon Agriculture”, “Analyzing the GEM and Cultivating New Agricultural Block” and “How does the PE fund promote the development of China’s agricultural enterprises.”
The summit was hosted by Partner Capital’s Deputy President Ms. Xiong Yun. Mr. Cao Yue, Partner Capital’s Founder and President, Mr. Song Shuyou, former Deputy Minister of the Ministry of Agriculture, and Mr. Yu Xiaodong, Director of PNDC, delivered opening addresses to express their warm congratulations.
According to data, China’s leading agricultural industrialization enterprises including national and provincial levels have reached 81,500 by the end of 2008, among which, 894 are national key labor enterprises, over 6,000 provincial key labor enterprises and 6,852 with annual sales exceeding 100 million yuan. The total fixed assets of these leading enterprises have reached 1.42 trillion yuan, total sales of 3.83 trillion yuan and total net profits of more than 200 billion yuan.
However, there are still common problems like difficulty in financing although the agricultural industrialization has developed very fast. Huang Yanxin, Deputy Director of Department of Policy and Regulations of the Ministry of Agriculture, pointed out that it was because there were few investment funds (industrial funds and PE funds) to provide financing for SMEs, and enterprises knew little about financing tools. SMEs should be good at using investment funds to be financed, such as PE that usually invests in those to-be-listed enterprises with higher growth potential and provides wide development platforms by IPO or MA.
Low-carbon agriculture has been focused by investors for years. Xie Tao, President of Agria Corporation, said that investment institutions preferred to invest in those enterprises with clear profit models, diversified management teams and specialized sectors.
Jiuding Capital’s Partner Zhongyi ZHAO gave a speech of “how did agricultural enterprises realize great-leap-forward development based on capital markets”. He said agricultural industry was featured as follows: traditional agriculture was speeding up to develop into modern agriculture, with centralized industrial structure; SMEs should develop by its own strength and by merging.
What’s more, other investment institutions proposed their own ideas in face of scattered resources, disorder industry, small scale, etc.
More than 400 people from governments, VCs, agricultural enterprises, authoritative financial and industrial media attended the summit to exchanged ideas and upgraded their thinking afterwards. ON Capital’s partner Yushan WANG, EY China Climate Change and Sustainable Development Department’s Managing Partner Tang Jiaxin, New Hope Group’s Director and Vice President Wang Hang, and influential investment institutions and entrepreneurs attended the summit, too.