Zhongyi ZHAO Concentrates on Agriculture
2009-07-20
Most of traditional industries have not been monopolized, which would be quickly achieved and huge investment opportunities appear, which is Zhongyi ZHAO’s investment logic.
“The reason why few investors can succeed although a large number of them keep their eyes on agricultural industry is it’s very hard to control risks. We begin to invest based on our judgment about the laws and prospects of traditional industries,” Zhongyi ZHAO told reporters on 16th, June.
Since the financial crisis, Jiuding Capital has begun to invest in traditional agricultural industries, including Jiangsu Huifeng, Guangxi Tianyuan and Sichuan Gifore, Billions Chemicals (China’s second largest titanium dioxide manufacturer) and Qingdao Sanchuan.
Jiuding Capital, founded in October 2007, has become a black horse in private investment institutions through acquiring six funds worth 2 billion yuan.
Put all assets into investment
Zhongyi ZHAO, together with his partner and team, is very passionate about investment, and even puts all his assets into this career.
“We must make efforts to succeed and stimulate myself and my team. What we are engaged in is not only a business, but also a career,” said Zhongyi ZHAO.
He has set his foot in investment after he got his master's degree in economics in 2001 and set up Far East Securities in 2002.
“At that time, we were interested in United State’s VC and PE businesses and investigated the markets to know that the securities companies’ business pattern has been well established with few innovative spaces but equity investment is worth to try. When Chinese government proposed equity division reform and negotiable institutional shares in 2005, I saw the chance and then began to invest with Xiaojie HUANG. In retrospect, it was a right choice. At present, no matter PE or VC has a huge market space in China,” said Zhongyi ZHAO.
Zhongyi ZHAO has experienced a lot during investment. “I think some experiences can be shared, such as the discovering chances, judging corporate value and scheduling capital withdrawal.”
Thanks to his accumulation of industrial experience, Zhongyi ZHAO expressed his opinion: “The industries many people are flocking into are little valued, but those underemphasized sectors with huge growth spaces are worth investing.”
After four years of effort, he has got the meaning of investment and been determined. “Investment is a work to control capital by brains and a process of taking companies as businesses as well as exhibiting technology and art. There are no existing laws, businesses and costs to follow, because everything is changeable and challengeable. I like the career,” he said.
Involved in traditional industries
From the first limited partner fund established in October 2007 to the sixth fund in May 2009, Jiuding Capital has developed very fast. It understood China’s national conditions with particular perception and thought, “China is different with the USA. In the USA, most industries have become mature and monopolized. It’s hard for other companies to break this monopolized pattern, so investors should find some new requirements brought by new technologies and materials; in China, most traditional industries are not monopolized and immature, so there are huge opportunities at the stage.”
“We want to enter into pesticide sector because Chinese government has limited the access enterprises and it’s not easy to cross over the threshold. During investment, we only choose those industrial or regional leaders or those with leader potentials.”