New Trends in Capital Market and Corporate Capital Strategy—16th JD Capital Business School Started

2016-08-18

China’s economy is undergoing profound adjustment, and the capital market shows new trends;NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Registration system reform is suspended, and new regulations on major shareholders reducing shares are implemented;NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

M&A is facing new regulatory restrictions;NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

How should entrepreneurs recognize the changes in the current regulatory environment?NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

How should enterprises develop with the power of capital under the new situation?NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

On 16th August, the 16th session of JD Capital Business School started up in Shanghai, with courses in Beijing, Shenzhen and Chengdu following in the month.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Themed New Trends in the Capital Market and the Corporate Capital Strategy, JD Capital gathered representatives from enterprises with existing investment and intended investment, to discuss corporate management, interpret new trends in the capital market, debate corporate capital strategies in the M&A era, and share leading enterprises’ key to success.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

New Insights on CapitalNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

At the Business School, Mr. Cai Lei, Chairman of JD Capital, delivered a speech named New Insights on Capital. In his speech, he gave a profound analysis on the capital strategies of Chinese enterprises from both perspectives of capital and enterprises, and shared the thoughts and practices of JD Capital in the past nine years.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Excellent enterprises come from nothing but the combination between excellent entrepreneurs and capital. Though differing greatly in characteristics, all great entrepreneurs need capital support.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Generally speaking, the corporate financing strategy includes debt financing and equity financing. From the view of JD Capital, while their financing strategies may differ, enterprises at different stages all need financing. In particular, JD Capital believes that the most ideal way for enterprises to realize equity financing is initial public offering (IPO).NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

IPO, in its essence, means equity retail, namely selling shares in the open market. For investors, equity retail may bring liquidity, which enables shares to be sold at any time when investors are faced with market risks. Whereas for enterprises, equity with liquidity enjoys high premium in most situations, which helps reduce their financing costs. In other words, enterprises are able to gain the largest amount of capital with the minimum equity diluted.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In short, only when capital is combined with entrepreneurs can enterprises be developed. This is the capital strategy of Chinese enterprises.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

JD Capital’s Capital Strategy: To Become A World-Class Investment and Asset Management InstitutionNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

JD Capital is a specialized institution in equity investment. In 2015, it was fully securitized after acquiring A-share listed companies and is now one of China’s largest PE institutions.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

According to Cai Lei, for JD Capital, capital is both a tool and a basic operational means. To become a trillion-scale investment and asset management institution, JD Capital not only has to own sufficient capital base, but also to continuously expand the size of managed assets through self-evolution and close cooperation with market institutions and partners.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

M&A Investment to Become the Core of JD Capital’s BusinessNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

The three major businesses of JD Capital are PE, VC and real estate, among which PE is the key business, and M&A investment, in turn, lies at the core of the PE business.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

On one hand, JD Capital put forward its “Leadership Plan” to cooperate with China’s most outstanding industrial leaders, and help enterprises realize M&A along the industry chain and at the global scale, and achieve continuous development.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

On the other hand, faced with less concentrated and securitized industries in China, JD Capital shall take full advantage of the opportunities in China’s capital market. By integrating enterprises throughout China in fields of health care, education, tourism and public utilities, JD Capital strives to promote the transformation and upgrading of different industries with joint efforts.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Besides, JD Capital is also promoting the “City Cooperation Plan” based on regional economy to contribute to the prosperity of local economy.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


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Post-investment Services Enter Into the Brand New 2.0 EraNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

For invested enterprises, JD Capital provided a complete set of post-investment services through daily management, agreement implementation and exit management in its courses of development. Now, JD Capital believes that post-investment services have entered into the brand new 2.0 era. Apart from normal services, JD Capital also has to provide various kinds of financing and M&A-focused, post-investment services for invested enterprises, so as to take its advantage and assist more excellent leading enterprises to realize leapfrog development.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Financing and M&A PracticesNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In the discussion session, Mr. He Qiang, CEO of JD Capital, and Vice President Mr. Gou Xingyu, had in-depth discussions with invested enterprises, themed Corporate Financing Modes and Corporate M&A Modes respectively.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

First, Mr. He systematically introduced feasible corporate financing modes at the five stages of startup, pre-IPO, examination, NEEQ listing and main board listing, and compared their fund sizes, periods, risks and exit mechanisms.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Senior executive representatives of invested enterprises, including Han Shuren, Chairman of Qunfeng Guopin, Huang Le, Chairman of Mychebao, Chen Ken, Chairman of 91 Wutong, and Yang Hong, Chairman Secretary of Puleshi, shared their experiences of corporate financing based on the practices of their enterprises.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Subsequently, Gou Xingyu illustrated the trends of domestic and foreign M&A transactions by Chinese enterprises in recent years. Faced with such an increasingly rising trend of M&A, JD Capital, guided by industrial giant M&A and integrative M&A and based on its own industrial resources and capital advantages, shall provide all-round professional services and corresponding support for partner enterprises.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Other representatives of invested enterprises, including Lin Qi, General Manager of Rongtai, Qiu Weiying, Chairman of Boram, Ren Zhengyong, Chairman Secretary of Jiuding New Material, and Liu Kaifeng, Investment Director of China Net Center, were also deeply engaged in the discussion and shared their experiences and achievements.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Besides, Mr. Wei Gang as the specialized lecturer, Head of Shanghai Stock Exchange and Director of the Offering and Listing Department, gave a speech themed Regulatory Goals, Issues and Policy Choices. In this speech, he deeply analyzed the goals and orientation of regulatory bodies from the professional aspects of policy and capital market, as well as their future policy choice and focus under the current market conditions.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Wei Gang pointed out that the core objective of regulation is price. Only if the pricing function of the capital market functions normally, can a series of regulative objectives be realized, including safeguarding economic security, maintaining market stability, protecting investors’ rights and preventing systematic financial risks. In the future, regulatory bodies shall tighten backdoor listing, M&A and share reduction of major shareholders for cash, as well as strictly implement delisting provisions, strengthen management of private placement fund usage, and increase IPO quota, which shall be their focuses.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司


NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

About JD Business SchoolNgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In early 2011, JD Capital created the first “Business School” in the PE industry, which was dedicated to cultivating the most excellent entrepreneurs in China with best business courses and lecturers at home.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

JD Business School built a learning and communication platform for high-level people. Courses available include capital market strategy, corporate strategy and innovation, president leadership, brand marketing, Chinese classics, risk management and human resources, etc.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

All students at JD Business School are major senior executives from invested companies. So far, over a thousand corporate senior executives have participated in communications and training of the past 15 sessions.NgS九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

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