Abstract The new material industry and capital's "love, hate and hate" drama is constantly being staged. Behind this, China's new materials industry is developing at a compound annual growth rate of 25% per year. The capital of each channel is not to be outdone, and it is frequently used to build new...
The new material industry and capital's "love, hate and hate" drama is constantly being staged. Behind this, China's new materials industry is developing at a compound annual growth rate of 25% per year. The capital of each channel is not to be outdone, and it is frequently used to build a new material industry. This is a “big ship†that is heading for the distant blue ocean. .
On September 13th, Nanjing, “2016·Nanjing New Materials Capital Technology Summit†new material project road show special.
On the stage, more than 30 new materials projects were launched one by one to carry out financing promotion; under the stage, hundreds of senior management and investment managers from major domestic investment institutions, representatives of new materials listed companies and major new materials industrial parks were responsible. People are concentrating on listening and listening, and they are afraid to miss a new material project with great investment value.
The roadshow guests of each new material project received a lot of business cards from investment institutions without exception. The venue has become a new material project trading market.
When the coffee break time arrives, the guests of several roadshow projects have been surrounded by many investors. Consult the project technology and progress, and some investors even directly ask about the investment amount required for the project.
"Our new material project is technically comparable to similar products outside the US, but the cost is about half lower than that of foreign products." A new material project leader who just showed the road, told the new material online.
Despite the bright future, the person in charge is facing difficulties at the moment. “The product will be piloted, it will require a lot of money, and it will be connected to downstream application companies.â€
The competition of various capitals for the new materials industry will undoubtedly solve many problems faced by many new material start-ups like this person in charge.
“We can not only fund new materials companies and new materials technologies, solve financing problems, but also use the abundant resources in the new materials field to find downstream application customers for the project.†Qifu Capital Partners with rich investment experience in new materials fields Dr. Wang Changzhen said.
Lang has a sentimental, unintentional, and the scene of the collision between the new material industry and capital is erasing the beautiful fireworks.
New material for the Nuggets
With the acceleration of China's economic transformation and upgrading, the new materials industry is welcoming the historical golden period of development. Relevant statistics show that the whole new material industry maintains a good growth rate. In 2015, the operating income of new materials listed companies increased by 5.47% year-on-year, and the net profit of returning to mothers increased by 31.44% year-on-year; the operating income in the first quarter of 2016 increased by 9.95%. The net profit of returning to the mother increased by 6.10% year-on-year.
As a cornerstone of the manufacturing industry, the new materials industry has a high natural growth. This is being recognized by the market and capital.
At present, China's economy is in the stage of transformation and upgrading. As a leading industry for economic transformation and upgrading and a new strategic emerging industry, new materials are entering a period of rapid growth. Relevant data show that the output value of China's new materials industry reached 2.5 trillion in 2015.
“In 2012, the Ministry of Industry and Information Technology issued the 12th Five-Year Development Plan for New Materials. This is also the first five-year plan for new materials in China. In the plan, the concept of new materials was first clarified.†Director of the Division of Materials Division, Ministry of Industry and Information Technology Chang Guowu said at the “2016·Nanjing New Materials Capital Technology Summit†that in October 2016, the State Council issued a new orientation on accelerating the development of strategic emerging new materials, and including new materials as a national level. An independent industry promotion is of great significance to the development of new materials industry.
Just as in the book “China New Materials Industry Development Report (2015)†compiled by the National Development and Reform Commission, the Department of Materials Industry, the Ministry of Industry and Information Technology, and the China Society for Materials Research, the importance of the new materials industry was described. "The level of research and development of new materials and the scale of industrialization have become an important symbol of a country's economic and social development, scientific and technological progress and national defense strength. It is recognized as the most important and fastest-growing high-tech industry in the 21st century."
However, China's new materials industry still has shortcomings in key materials, innovation capabilities, policy support and many other aspects.
Chang Guowu believes that China's new materials industry is still in the cultivation stage, but the innovation chain is incomplete, the management system is not perfect, and the productivity is scattered. New materials have always been a very important factor restricting the manufacturing of the country. In the face of the current situation, innovative mechanisms and improvements are needed. Policies, vigorously promote the development of information materials innovation, so that they can play a role in providing support and guarantee for economic construction.
The connection with capital is undoubtedly an important booster for the development of new materials industry.
“In all stages of the development of the new materials industry, capital is involved and provides support and guarantee for the development of new materials.†Chang Guowu said that it is necessary to give priority to the development of new national materials, the role of expert committees, for industry planning, industrial policies, major projects. Provide consultation convenience, encourage the establishment of new material investment funds, support the promotion of new materials, guide the support of angel investors, innovative investment funds, private equity investment funds, support the development of new materials, financing domestic and overseas, issuing bonds.
With trillions of dollars in market size and huge and unpredictable application space, the new materials industry is being accelerated by various capitals.
Compete for the big show
2016 is the first year of the “Thirteenth Five-Year Plan†and the key year for the in-depth implementation of “Made in China 2025â€, and it is also the year of the reform of supply-side structural reform. In this context, the pair of new materials industry and capital market will become an innovation that breaks through the financing difficulties and financing bottlenecks faced by industrial transformation and development, and promotes the deep integration of capital and industry.
“Capital M&A is an important driving force for the development of international material industry giants. Under the new normal economic situation, M&A + refinancing has become an inevitable choice.†Dr. Zhao Wenfeng, CEO of New Materials Online, believes that compared with foreign giants, new domestic materials companies The obvious characteristics of small and scattered, its long product development cycle, high research and development costs, and high technology risks make the company invest cautiously, product innovation and update speed is slow, so capital means such as financing, mergers and acquisitions are domestic new material enterprises to do big Strong inevitable choice.
As the chairman of a new material company newly listed on the New Third Board said, “If the production scale of the enterprise is only dependent on the company’s own funds, then the production and operation will face a cash flow bottleneck, so it is necessary to expand financing channels, especially innovation. In the early days, equity financing was the most dynamic."
This has also been substantively endorsed by investment institutions and a number of new materials listed companies.
According to the incomplete statistics of new materials online, since 2014, more than 20 new material industry funds have been established by local government-led or investment institutions and new materials listed companies.
In June 2016, with the approval of the State Council, the Development and Reform Commission, the Ministry of Finance, and the Ministry of Industry and Information Technology took the lead. The United Nations Development and Investment Corporation, Industrial and Commercial Bank of China and other investment entities jointly funded the establishment of advanced manufacturing industry investment funds. 20 billion yuan, of which the central government invested 6 billion yuan to attract social capital investment, adopt a limited partnership system, and operate independently according to the principle of marketization. On the basis of the ten key areas of "Made in China 2025", further focus on the market potential of rail transit equipment, high-end ships and marine engineering equipment, industrial robots, new energy vehicles, modern agricultural machinery, high-end medical equipment and pharmaceuticals, new materials, etc. Key areas with good industrial base and in line with industrial development trends.
Huang Xiaorong, deputy director of the Yunnan Provincial Development and Reform Commission, said in an interview with Xinhua News Agency that by 2020, Yunnan’s province’s new material industry’s main business income will reach 200 billion yuan, with an added value of more than 60 billion yuan; main business income and added value. The average annual growth rate is about 20%.
In order to achieve this goal, Huang Xiaorong revealed that the establishment of the Yunnan New Materials Industry Fund. Under the key industry funds of Yunnan Province, through the targeted recruitment of financial institutions, investment institutions, key enterprises in the province, etc., the establishment of eight industrial sub-funds, merger funds, and international production cooperation funds to form a new material development of "8+2" The fund group supports the new materials industry through the sub-funds and promotes mergers and acquisitions at home and abroad.
In August last year, Gansu New Materials Industry Venture Capital Fund Co., Ltd. was officially unveiled.
It is understood that the Gansu New Materials Industry Venture Capital Fund is a closed-end fund jointly sponsored by the Central Finance, Gansu Provincial Finance Department, Gansu Power Investment Group, Lanzhou New Area Investment Holding Company and Baiyin Nonferrous Metals Group. The fund size is 250 million yuan, and the main investment is The field is a high-quality project in the field of new materials industry in Gansu Province. It operates in a market-oriented manner and supports innovative small and medium-sized enterprises in the new material industry in the early stage, early and middle stage through the equity investment model.
At the same time, a number of listed companies, including China Baoan, Silicon Bao Technology, Antai Technology, Jiuri New Materials, Hongyu New Materials, etc., have also participated in the establishment of new materials industry investment funds, with the intention of “taking the lead in this new material capital competitionâ€. ".
The capital competition for new materials is entering a fever.
"Love and Hatred"
“Not all new materials projects can be favored by capital. In our case, we prefer the mid-to-late projects, that is, we already have a certain scale of revenue. It is better to have a net profit.†One has a new The investment director of the investment company in the background of the listed company told the new material online that the initial project risk is too large. Although the valuation of the later project will be higher, the risk is much smaller.
This also makes the "love" drama of new materials and capital a bit more "hate."
Guo Jiaying, chairman of Kesheng Co., Ltd., who has successfully invested in a number of new materials companies and achieved a smooth exit, said that Kesheng has four screening criteria for new materials companies. "The first is that the technical barriers are high, and the market capacity is strong, that is, there are good brand operation capabilities and product sales capabilities, and the third is to have good operational capabilities. Finally, capital awareness is sufficient."
“Qifu Capital's new materials investment is based on innovative materials and import substitution as the main line of investment, focusing on new materials in the concept period, introduction period and growth period.†When talking about investors' concerns, Dr. Wang Changzhen believes that growth is an investment. soul.
The new material industry and capital should be a consortium of interests for common goals, but how to enable both parties to obtain mutual benefits, promote each other, and ultimately maximize the value of both parties, is a very delicate matter.
Capital has always been a double-edged sword. It can not only make the company embark on the golden avenue of rapid development, but it may also become the last straw to crush the camel.
It is not uncommon for capital to “kidnapped†entrepreneurs.
As Dr. Wang Changzhen said, “Enterprises are entrepreneurs. Investors should respect entrepreneurs. Investment is in fact a service, positioning a long-term pattern. In addition to capital injection, it should provide value-added services to allow capital and enterprises to grow together.â€
The withdrawal of capital has become a major problem faced by new material investors. IPO, the listing of new three boards, and the exit of mergers and acquisitions, IPO seems to be the favorite of new material investors and the most profitable exit means. .
However, domestic IPOs have many requirements for enterprises' revenues and managers. In addition, there are only a handful of investors who can withdraw through IPOs. The new three boards are also trading in a deserted state. M&A exit is undoubtedly the most feasible channel.
“In foreign countries, more than 60% of the investment is through the merger and acquisition to achieve profitable exit.†Some institutional investors told the new materials online, currently in China, this channel is not smooth.
For investors, how to choose the timing of M&A exit, how to choose the right buyer, how to manage the M&A process, etc., all test their wisdom.
Zhongguang Nuclear Juner, which invested in Kesheng, successfully achieved the exit of the curve through mergers and acquisitions.
Carbide Stone Cutting Tips,Stone Cutting Tips,Ss10 Carbide Tips,Carbide Tips For Stone Cutting
Zhuzhou Kerui Cemented Carbide Co., Ltd. , https://www.carbide-china.com