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【Zero2IPO Insight】

ChiNext: A Touch of Warm Sunshine after the Cold Winter
On Oct. 30th, 2009, with the long-waiting ChiNext finally setting sail, the first batch of 28 ChiNext-listed companies will go public together on the Shenzhen Stock Exchange. After the cold winter of financial crisis, the launch of ChiNext brings a touch of warm sunshine to Chinese VC/PE industry. All of the Stock Prices of ChiNext-listed Enterprises in First Batch Soared at the Opening with Their Average Opening Price Rising 76.5% from Issue Price. From Oct. 30th, 28 stocks have been officially listed on ChiNext. In the first trading day, all of stock prices surged. There was an average increase of 76.5% in opening prices compared with issue prices, among which Huayi Brothers topped the competition with an opening price of RMB63.66, 122.7% higher than its issue price. In addition, five stocks enjoyed an increase of more than 100.0% in opening price, including Anke Biotechnology, Toread, EVE Battery, Lepu Medical and Huaxing Chuangye; five stocks saw opening price rising by 80.0%-100.0%, accounting for 17.9% of all, which were respectively Shenyang Siaxun, Dayu Water-saving, Gifore, Geeya Technology and Beijing Dinghan Technology; 15 stocks enjoyed an increase of 50.0%-80.0% in opening prices, accounting for 53.6%; and only two stocks were up below 50.0%.

Table 1 First Batch of 28 ChiNext-listed Enterprises

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Stock Code

Company Name

Headquarters

Grade-1 Industry

Issue Price

P/E Ratio

Shares Issued (10,000 shares)

Openin g Price

Growth Rate

VC/PE Institution

300027 300009 300005 300014 300003

Huayi Brothers Anke Biotechnolgoy Beijing Toread Eve Battery Lepu Medical

Beijing Anhui Beijing Guangdong (Excluding Shenzhen) Beijing

Services Bio/Health care Traditional Cleantech Bio/Health care

28.58 17.00 19.80 18.00 29.00

69.71 46.83 53.10 54.56 59.56

4,200 2,100 1,700 2,200 4,100

63.66 37.00 42.00 38.00 61.00

122.74% 117.65% 112.12% 111.11% 110.34%

China Equity Good VC Leading Investment CMTECH, Fortune VC Warburg Pincus

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300025 300024 300021 300022 300028

Huaxing Chuangye Shenyang Siaxun Dayu Water-saving Gifore Geeya Technology

Zhejiang Liaoning Gansu Sichuan Sichuan

Broad IT Broad IT Traditional Services Broad IT

19.66 39.80 14.00 17.75 11.30

45.18 62.90 53.85 57.26 45.20

1,000 1,550 1,800 2,240 3,700

40.00 74.00 25.60 32.25 20.50

103.46% 85.93% 82.86% 81.69% 81.42%

  Gold Stone Investment   Jiuding Capital Xinao VC, Hangyuanfu VC, Dehui Investment, Jiaze Investment, Florin Investmen, Fengze Investment, Jiuding Capital China Venture Capital Xingye VC Qingdao Laoshan Technology Investment IFC Fortune VC

300011

Beijing Dinghan Technology TGOOD Electric Aier Ophthalmology ChinaNetCenter

Beijing

Broad IT

37.00

82.22

1,362

66.70

80.27%

300001 300015

Shandong Hunan

Traditional Bio/Health care Broad IT

23.80 28.00

52.76 60.87

3,500 3,350

42.00 48.86

76.47% 74.50%

300017

Shanghai

24.00

63.16

2,300

41.50

72.92%

300002 300006

Ultrapower Lummy Pharmaceuticals

Beijing Chongqing

Broad IT Bio/Health care

58.00 16.50

68.80 47.83

3,160 2,300

100.10 27.45

72.59% 66.36%

CDF-Capital, Fortune VC, VIC, Fuwei VC SZVC, Fortune VC Huijinlifang and Gold Stone Chongqing Technology VC

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300023 300019 300007 300016

Bode Energy Equipment Chengdu Guibao Henan Hanwei Electronics Beilu

Shaanxi Sichuan Henan Beijing

Traditional Traditional Traditional Bio/Health care Bio/Health care Traditional

19.60 23.00 27.00 17.86

81.67 47.96 60.54 47.89

1,500 1,300 1,500 1,700

32.56 38.01 44.00 29.00

66.12% 65.26% 62.96% 62.37%

    Ningbo Junrun Investment Beijing Venture Capital Infotech TJVC Jinrong Investment Taihe Investment, Yiwen Venture Capital, Ninghe Investment China-Belgium Fund Shanghai Zichen Investment ZVC, Haitong Kaiyuan, Zhejiang Lanshan Intel Capital Tongying VC   China-Belgium Fund

300026 300013

Chase Sun Xinning Logistics

Tianjin Jiangsu

60.00 15.60

49.18 45.48

1,259 1,500

97.15 24.50

61.92% 57.05%

300010 300008 300020

Lanxum Bestway Marine Silver River

Beijing Shanghai Zhejiang

Broad IT Services Broad IT

18.00 27.80 20.00

51.49 40.12 52.63

2,650 1,260 2,000

28.10 43.15 31.00

56.11% 55.22% 55.00%

300004 300012 300018

Nanfang Venilator Center Testing International Zhongyuan Huadian

Guangdong (Excluding Shenzhen) Shenzhen Hubei

Traditional Traditional Traditional 2009.10

22.89 25.78 32.18

46.24 59.95 52.62

2,400 2,100 1,635

35.00 38.00 47.00

52.91% 47.40% 46.05%

Source: Zero2IPO Research Center

www.zero2ipo.com.cn

A Total of 46 VC/PE Institutions Once Invested in the 23 of the First-batch ChiNext-listed Enterprises.

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【Zero2IPO Insight】

The statistics of Zero2IPO Research Center show that in the 28 first-batch ChiNext-listed companies, 23 were supported by a total of 46 VC/PE institutions. Among them, four foreign VC/PE institutions accounted for 8.7%. They are Intel Products which had invested in Silver River, Warburg Pincus’s subsidiary Brook which had invested in Lepu Medical, IFC which had invested in Aier Ophthalmology; two joint venture VC/PE institutions taking up 4.3% of the total are respectively China Equity which had invested in Huayi Brothers, and China-Belgium Fund which had invested in Zhongyuan Huadian; A total of 40 local VC/PE institutions accounted for as high as 87.0%. Among them, Jiuding Capital and Gold Stone performed more prominently each with two investees landing on ChiNext in the first batch, while Fortune VC’s performance was undoubtedly the most eyecatching one with 3 investees initially listed on ChiNext.
Table 2 46 VC/PE Institutions with Investment in First Batch of ChiNext-listed Enterprises VC/PE Type No.of Enterprises Backed Company Name Stock Code Headquarte rs Industry (Grade 1) Industry (Grade 2) Shares Issued (10,000 shares) 2,200 3,350 2,300 2,240 3,700 3,160 1,550 3,500 Am. Financed in Plan(RMB10 0M) 2.06 3.40 2.42 1.98 1.85 5.03 2.79 4.00 Issue Price P/E Ratio

Fortune VC

Domestic

3

Eve Battery Aier Ophthalmology ChinaNetCenter

300014 300015 300017 300022 300028 300002 300024 300001

Guangdong (Excluding Shenzhen) Hunan Shanghai Sichuan Sichuan Beijing Liaoning Shandong

Clean-tech Bio/Healthcar e Broad IT Services Broad IT Broad IT Broad IT Traditional

Clean Energy Medical Services IT Services Retail Broadcasting (DTV) IT Services Other Electronics Products Electronic Equipment

18.00 28.00 24.00 17.75 11.30 58.00 39.80 23.80

54.56 60.87 63.16 57.26 45.20 68.80 62.90 52.76

Jiuding Capital

Domestic

2

Gifore Geeya Technology

Gold Stone

Domestic

2

Ultrapower Shenyang Siaxun

Qingdao Laoshan

Domestic

1

TGOOD Electric

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【Zero2IPO Insight】

Technology Investment Huijinlifang Guangdong Tongying VC Shanghai Leading Investment Chongqing Technology VC Ningbo Junrun Jiachuan Investment Zichen Investment Good Capital Gaoxin VC China Venture Capital Xingye VC Suzhou Jinrong Investment Yiwen VC Ninghe Investment Taihe Investment

Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Ultrapower Nanfang Venilator Beijing Toared Lummy Pharmaceuticals Hanwei Electronics Bestway Marine Bestway Marine Anke Biotechnology Lanxum Beijing Dinghan Technology Beijing Dinghan Technology Xinning Logistics Xinning Logistics Xinning Logistics Xinning Logistics

300002 300004 300005 300006 300007 300008 300008 300009 300010 300011 300011 300013 300013 300013 300013

Beijing Guangdong (Excluding Shenzhen) Beijing Chongqing Henan Shanghai Shanghai Anhui Beijing Beijing Beijing Jiangsu Jiangsu Jiangsu Jiangsu

Broad IT Traditional Traditional Bio/Healthcar e Traditional Services Services Bio/Healthcar e Broad IT Broad IT Broad IT Traditional Traditional Traditional Traditional

IT Services Machinery Manufacturin g Others Pharmaceuti cals/Health Products Electronic Equipment Consulting Consulting Bioengineering IT Services Other Electronics Products Other Electronics Products Logistics Logistics Logistics Logistics

3,160 2,400 1,700 2,300 1,500 1,260 1,260 2,100 2,650 1,362 1,362 1,500 1,500 1,500 1,500

5.03 2.88 2.20 1.44 1.80 1.21 1.21 1.66 2.76 2.16 2.16 1.40 1.40 1.40 1.40

58.00 22.89 19.80 16.50 27.00 27.80 27.80 17.00 18.00 37.00 37.00 15.60 15.60 15.60 15.60

68.80 46.24 53.10 47.83 60.54 40.12 40.12 46.83 51.49 82.22 82.22 45.48 45.48 45.48 45.48

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【Zero2IPO Insight】

CMTECH Beijing Technology VC Infotech Legend Capital CDF Capital Beijing Vision

Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Xinning Logistics Beilu Beilu ChinaNetCenter ChinaNetCenter ChinaNetCenter ChinaNetCenter ChinaNetCenter Silver River Silver River Silver River Shenyang Siaxun Shenyang Siaxun Chase Sun Geeya Technology Geeya Technology

300013 300016 300016 300017 300017 300017 300017 300017 300020 300020 300020 300024 300024 300026 300028 300028

Jiangsu Beijing Beijing Shanghai Shanghai Shanghai Shanghai Shanghai Zhejiang Zhejiang Zhejiang Liaoning Liaoning Tianjin Sichuan Sichuan

Traditional Bio/Healthcar e Bio/Healthcar e Broad IT Broad IT Broad IT Broad IT Broad IT Broad IT Broad IT Broad IT Broad IT Broad IT Bio/Healthcar e Broad IT Broad IT

Logistics Pharmaceuti cals/Health Products Pharmaceuti cals/Health Products IT Services IT Services IT Services IT Services IT Services Software Software Software Other Electronics Products Other Electronics Products Pharmaceuti cals/Health Products Broadcasting (DTV) Broadcasting (DTV)

1,500 1,700 1,700 2,300 2,300 2,300 2,300 2,300 2,000 2,000 2,000 1,550 1,550 1,259 3,700 3,700

1.40 1.83 1.83 2.42 2.42 2.42 2.42 2.42 1.70 1.70 1.70 2.79 2.79 2.68 1.85 1.85

15.60 17.86 17.86 24.00 24.00 24.00 24.00 24.00 20.00 20.00 20.00 39.80 39.80 60.00 11.30 11.30

45.48 47.89 47.89 63.16 63.16 63.16 63.16 63.16 52.63 52.63 52.63 62.90 62.90 49.18 45.20 45.20

Investment
SZVC Shenzhen Careall VC Zhejiang Technology VC Haitong Kaiyuan Zhejiang Lanshan

CAS Investment
Shenyang Sengmu Investment Tianjin VC Changsha Xinao Hangzhou Jiaze Investment

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【Zero2IPO Insight】

Shenzhen Hangyuan Fuchuang Hangzhou Dehui Investment Shanghai Florin Investment Shanghai Fengze Investment Intel Capital IFC Brook Warburg Pincus China Equity China-Belgium Fund

Domestic Domestic Domestic Domestic Foreign Foreign Foreign Foreign JVC JVC

1 1 1 1 1 1 1 1 1 1

Geeya Technology Geeya Technology Geeya Technology Geeya Technology Silver River Aier Ophthalmology Lepu Medical Lepu Medical Huayi Brothers Zhongyuan Huadian 2009.10

300028 300028 300028 300028 300020 300015 300003 300003 300027 300018

Sichuan Sichuan Sichuan Sichuan Zhejiang Hunan Beijing Beijing Beijing Hubei

Broad IT Broad IT Broad IT Broad IT Broad IT Bio/Healthcar e Bio/Healthcar e Bio/Healthcar e Services Traditional

Broadcasting (DTV) Broadcasting (DTV) Broadcasting (DTV) Broadcasting (DTV) Software Medical Services Medical Equipment Medical Equipment Media Electronic Equipment

3,700 3,700 3,700 3,700 2,000 3,350 4,100 4,100 4,200 1,635

1.85 1.85 1.85 1.85 1.70 3.40 5.17 5.17 6.20 1.85

11.30 11.30 11.30 11.30 20.00 28.00 29.00 29.00 28.58 32.18

45.20 45.20 45.20 45.20 52.63 60.87 59.56 59.56 69.71 52.62

Source: Zero2IPO Research Center

www.zero2ipo.com.cn

The First Batch of Listed Companies Is “Best of the Best”, in Which Beijing’s Enterprises Take the Majority. From the point of view of geographical breakdown, the first batch of 28 ChiNext-listed companies are scattered among 17 provinces and cities including Beijing, Sichuan, Shanghai, Guangdong (Excluding Shenzhen) and Zhejiang, among which Beijing had the most with seven enterprises-Ultrapower, Lepu Medical, Toread and so on; Sichuan is also at the forefront, contributing three ChiNext-listed companies, namely, Chengdu Guibao, Gifore and Geeya Technology; Shanghai, Guangdong (Excluding Shenzhen) and Zhejiang have respectively two companies listed on ChiNext; in addition, Shenzhen, Tianjin, Chongqing, Henan, Anhui, Hunan, Jiangsu, Hubei, Shandong, Liaoning, Shaanxi and Gansu also each have one enterprise listed.

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【Zero2IPO Insight】

Table 3 First Batch of 28 ChiNext-listed Enterprises (By Headquarters) Headquarters Stock Code Company Name Grade-1 Industry Issue Price P/E Ratio Shares Issued (10,000 shares) 3,160 4,100 1,700 Amt. Finance d in Plan(R MB100M ) 5.03 5.17 2.20 Gross Profit Rate in 2008 50.36% 78.58% 45.17% Net Profit Rate in 2008 23.21% 51.07% 12.03% Net Assets Income Ratio in 2008 51.58% 39.35% 27.95% VC/PE Institution Year Round Investme nt Stage

Beijing

300002 300003 300005

Ultrapower Lepu Medical Beijing Toread

Broad IT Bio/Health care Traditional

58.00 29.00 19.80

68.80 59.56 53.10

Huijinlifang, Gold Stone Warburg Pincus Beijing Leading

2009 2007 2008

A N/A A

Investmen t
Broad IT 18.00 51.49 2,650 2.76 30.09% 13.69% 32.65% Gaoxin

Expansion stage Expansion stage Expansion stage

300010

Lanxum

Investmen t
Developme nt China Venture Capital Xingye VC Qingdao Laoshan Technology Investment Infotech China Equity  

2008

A

Expansion stage

300011

Beijing Dinghan Technology Beilu

Broad IT

37.00

82.22

1,362

2.16

52.16%

21.21%

21.14%

2007 2009 1999

A B A

Expansion stage Expansion stage Early stage Late stage Expansion stage  

300016

Bio/Health care

17.86

47.89

1,700

1.83

41.84%

14.71%

19.57%

2008 2004  

B A  

300027 Sichuan 300019

Huayi Brothers Chengdu Guibao

Services Traditional

28.58 23.00

69.71 47.96

4,200 1,300

6.20 1.63

53.74% 40.61%

16.63% 18.81%

27.44% 34.07%

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【Zero2IPO Insight】

300022 300028

Gifore Geeya Technology

Services Broad IT

17.75 11.30

57.26 45.20

2,240 3,700

1.98 1.85

13.52% 47.13%

3.68% 25.47%

29.57% 20.22%

Jiuding Capital Xinao VC, Hangyuanfu VC, Dehui Investment, Jiaze Investment, Florin Investment, Fengze Investment, Jiuding Capital CDFCapital, Fortune VC, VIC, Fuwei VC SZVC, Fortune VC Shanghai Zichen Investment Tongying VC CMTECH, Fortune VC ZVC, Haitong Kaiyuan, Zhejiang Lanshan

2009 N/A

A N/A

Late stage Expansion stage

Shanghai

300017

ChinaNetCe nter

Broad IT

24.00

63.16

2,300

2.42

35.50%

15.51%

25.98%

2008

B

Late stage

2007 2007 2007 N/A N/A

A A A N/A A

300008 Guangdong( Excluding Shenzhen) Zhejiang 300004 300014 300020

Bestway Marine Nanfang Ventilator Eve Battery Silver River

Services Traditional Cleantech Broad IT

27.80 22.89 18.00 20.00

40.12 46.24 54.56 52.63

1,260 2,400 2,200 2,000

1.21 2.88 2.06 1.70

48.30% 30.30% 24.78% 25.41%

32.95% 15.13% 15.32% 9.02%

46.53% 26.43% 24.91% 19.34%

Expansion stage Expansion stage Late stage Expansion stage Expansion stage

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【Zero2IPO Insight】

Intel Capital 300025 Shenzhen Tianjin Chongqing Henan Anhui Shandong 300012 300026 300006 300007 300009 300001

2009     2008 2007 2008 2005 2009

B     A A A A A

Huaxing
Chuangye Center Testing International Chase Sun Lummy Henan Hanwei Electronics Anke Biotechnolog y

Broad IT Traditional Bio/Health care Bio/Health care Traditional Bio/Health care Traditional

19.66 25.78 60.00 16.50 27.00 17.00 23.80

45.18 59.95 49.18 47.83 60.54 46.83 52.76

1,000 2,100 1,259 2,300 1,500 2,100 3,500

1.18 2.75 2.68 1.44 1.80 1.66 4.00

45.17% 68.10% 76.38% 36.11% 59.03% 70.91% 35.52%

14.97% 21.87% 34.43% 12.40% 30.50% 23.05% 22.58%

29.60% 34.05% 51.30% 23.87% 32.53% 24.26% 58.65%

    TJVC, etc. Chongqing Technology VC Ningbo Junrun Investment Good VC Qingdao Laoshan Technology Investment Jinrong Investment Taihe Investment, Yiwen Venture Capital, Ninghe Investment IFC Fortune VC

Expansion stage     Late stage Expansion stage Late stage Late stage Expansion stage Expansion stage Expansion stage

TGOOD
Electric

Jiangsu

300013

Xinning Logistics

Traditional

15.60

45.48

1,500

1.40

50.83%

16.45%

23.71%

N/A 2007

A B

Hunan

300015

Aier Ophthalmolo gy

Bio/Health care Traditional

28.00

60.87

3,350

3.40

55.43%

13.59%

22.78%

2006 2007 2009

A B A

Hubei

300018

Zhongyua n Huadian

32.18

52.62

1,635

1.85

55.77%

39.38%

55.11%

ChinaBelgium Fund

Expansion stage Expansion stage Expansion stage

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【Zero2IPO Insight】

Gansu Shaanxi Liaoning

300021 300023 300024

Dayu Watersaving Bode Energy Equipment STASUN Robot & Automation

Traditional Traditional Broad IT

14.00 19.60 39.80

53.85 81.67 62.90

1,800 1,500 1,550

1.53 1.60 2.79

23.14% 21.06% 25.75%

9.27% 11.56% 11.93%

14.42% 38.72% 15.44%

    Gold Stone

    2008

    N/A

    Expansion stage

Source:Zero2IPO Research Center

2009.10

www.zero2ipo.com.cn

Through the first round of screening and counseling by all those brokerage firms, accountants, law firms before the listing, along with the successive checks made by the Issuance Examination Committee of China Securities Regulatory Commission for ChiNext, the first batch of 28 listed companies are of relatively good qualifications. Viewing from the financial indicators of enterprises landed on ChiNext in the first batch, 28 ChiNext-listed enterprises go even farther than those listed on the Main Board, while they all achieved profits in previous three consecutive years. It fully reflects the principle of “selecting best among the best” and prudent and conservative attitudes of regulatory authorities. On the other hand, viewing from the IPO P/E ratio, the average IPO P/E ratio of ChiNext was 56.6 times, the highest one, Beijing Dinghan Technology, was even 82.22 times. Compared with the average IPO P/E ratio of 25 times in A-share market and that of 40 times in Shenzhen SME Board, its high P/E ratios not only fully reflect investors’ expectation on the high growth of enterprises, but also make people full of worry in excitement. ChiNext’s Future In the long run, whether the qualifications of listed companies are excellent and the continued growth, innovation and competitiveness of enterprises can be demonstrated after being listed, as well as what kind of impact will be left on the overall development of ChiNext are affected by the following factors: (1) China's economic stability would to some extent affect the scale of ChiNext development. At present, our macro-economy has emerged with trends of leading the world’s economic recovery and stabilizing upwards. The pace of ChiNext listing progress will be smoother, and ChiNext’s scope will develop at a faster speed based on the favorable economic situation.

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【Zero2IPO Insight】

(2) Adequacy of the resources of backup enterprises for listing. As for the successful historical experiences abroad, whether the backup enterprises for listing are adequate determines the success to a certain extent: Taking NASDAQ as an example, the United States has numerous enterprise resources which are in line with the conditions of listing in its innovative economic environment, the abundance of its resources determines the success of NASDAQ; The success factors for KASDAQ of South Korea are similar to those of the United States. After the Asian financial crisis, economic system reforms and establishments were carried out in South Korea to encourage business startups, hence fostering a batch of excellent enterprise resources. However, the GEM of Hong Kong was not successful due to a lack of backup enterprise resources, which led to market liquidity shortage and a weaker confidence of investors. (3) Risk of excess liquidity. The launch of ChiNext will attract the attention of international speculators, resulting in the improper inflows of foreign "hot money"; moreover, it is unavoidable that a large number of short-term capital for the purpose of profit-chasing will be poured into the market domestically, which causes the stock market to rise suddenly and slump sharply, making the developing situation unstable in the overall market scope. (4) Rigorous and complete supervisory system is the basis for protecting the market’s normal operations. Only with the supervisory system of ChiNext completed step by step, can the sudden rises and slumps, as well as the malignant speculations of share market be prevented effectively. It will also strictly control the information disclosure of listed companies, preventing false information disclosure and even such problems as major shareholders occupying the interests of listed companies and so on, to maintain the competition orders of ChiNext. (5) With the “cascade effect” of the stock market, the ups and downs of A-share market will also affect the ChiNext’s trend more or less. While a bull or slow bull market appears in A-share market, the issuing and listing speed of ChiNext will be faster, but when A-share market is sluggish, ChiNext’s speed will be slowed down therewith. (6) Enterprises’ operations after the listing. ChiNext mainly consists of small and medium high-tech firms, while the high growth of high-tech enterprises accompanied with high risks at the same time, such as operation risk, faith risk, technology risk, market competition risk, financial risk, etc. They will all be determining factors in the growth of listed companies, thereby influencing the overall development of ChiNext. In addition, analyzing from the point of view of the stock prices for listed companies, the prices depend primarily on the two aspects, enterprises’

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fundamentals and investors’ confidence. In the initial stage of ChiNext, because of the better qualifications of the first listed companies, investors are full of confidence and market values are relatively high, while the stock prices fluctuating up and down with the value changes perform powerfully in this period; Then, as ChiNext gradually steps into maturity and rationality, numerous listed companies will show different growth potentials and competitiveness, there will be several layers appearing in their stock prices: Share prices for part of the companies with high growth, strong competitiveness and favorable fundamentals will gradually move up; other companies which face bottlenecks in development, decreased competitiveness or severe calamity will be sluggish; while individual listed companies will be knocked out from ChiNext if significant financial problems or false information disclosure and other incidents occur. All in all, the timely launch of ChiNext in China has great significance. From the perspective of the development of domestic small and medium-size enterprises (SMEs), it will shorten the timeframe from startups to listing for many national SMEs, allowing excellent new emerging enterprises which can hardly obtain financing stand out as soon as possible to achieve independent growth and expansion through breaking the monopoly of big enterprises. Secondly, as the barometer of innovations in business models and technologies, ChiNext can encourage more firms or individuals to utilize business opportunities and models similar to those of listed enterprises. From the point of view of domestic and foreign VC/PE institutions, the launch of ChiNext will bring more flexible and convenient exit options for them, thus motivating the investment enthusiasm of VC/PE agencies in China’s market. It will also promote the fund-raising of RMB funds, facilitating the industrial upgrades of VC investment, truly realizing the positive cycles of internal capital “domestically raised, invested and exited”. Here we would like to wish ChiNext and Chinese VC/PE industry make further progress and achieve more!

――――――― About Zero2IPO Research Center Founded in November 2001, Zero2IPO Research Center provides professional research reports and customized industry reports for VC and PE funds, government organizations, intermediaries and startup enterprises in Greater China Region. The center’s research scope covers VC, PE, IPO, M&A and high-tech industries. It has grown into the most professional and authoritative research institution in China. Statement on Republication:

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The article is publicly released to media by Zero2IPO Group. Any questions and suggestions on data and research, please contact Ms. Leaf Zhang by phone or email: Tel: +86 10 84580476 Email: research@zero2ipo.com.cn If in republication please mail two sample copies to: Nicole Meng Rm.1202/03, Tower A, Eagle Run Plaza, No.26, Xiaoyun Road, Chaoyang District, Beijing 100125 Or email the website link of your article to nicolemeng@zero2ipo.com. Thank you.

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