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Standing at the starting point of the new decade | 2021 New Year's Speech by Chairman Minwen Wu

Dear friends and fellows of Sensegain:


2020 is an extreme year when a rare epidemic in human history casts a heavy haze on the whole world, unprecedented opportunities in the capital market also accompany it. Fear and greed are happening simultaneously overnight.


We are thankful to everyone, we are in the same boat in the fight against the epidemic, and we are united in seizing market opportunities.


This year, China's economy, under the impact of the pandemic and the suppression of the United States, has bucked the trend and is resilient, becoming a global growth engine. A proactive fiscal policy and a prudent monetary policy have escorted economic development, the new "dual cycle" pattern has accelerated, and technological innovation has added new momentum to high-quality development. Nothing is invincible for all efforts; nothing is impossible for all wisdom.


This year, China's capital market was established in its thirtieth year and lived up to its prime. The new "Securities Law" was officially implemented, the registration system was steadily advanced, and the reform of the capital market moved from incremental to stock. There were a total of 395 A-share IPO companies in the year, with a total of 470 billion yuan in IPO funds, the highest in ten years. The number of IPOs on the Shanghai Stock Exchange ranks first in the world, with 145 listed on the Science and Technology Innovation Board, with a total of 222.6 billion yuan in funds raised, accounting for 47% of the total A-share IPO funds raised. There are 4140 A-share listed companies with a total market value of over 80 trillion yuan. The Growth Enterprise Market Index rose by as much as 65%, leading the world.


This year, equity investment entered a new era, and the Matthew effect in the private equity industry intensified. The structural changes in the allocation of social wealth and the institutional optimization of the investment of various market entities have brought in the source of water for equity investment. The reform of the capital market has improved the efficiency of equity investment. Up to now, the total scale of assets under the management of private equity institutions has reached nearly 16 trillion yuan. Become the most active force to promote economic development. The trend of heading, specialization, and standardization of the private equity industry is becoming more and more obvious, and the competition of comprehensive strength in all aspects is cruelly going on.


This year, Sensegain continued to explore and forge ahead. We adhere to the simultaneous development of innovative assets, core assets, and distressed assets, and continue to deepen value creation capabilities based on value discovery. We have further cultivated the industry, selected ten tracks from the original four Chinese industrial layouts, and built an industrial investment and research team of "upstream and downstream, first and second levels, domestic and foreign", and realized the transformation from equity participation to holding, from angel investment To the acquisition of listed companies, the leap from A shares to US stocks. In the first-level business, we invested in high-quality domestic and foreign projects such as Yuannian Technology, Guoke Group, Synaptive, etc.; among the projects that have been invested, WiMi Hologram, EFORT Intelligent Equipment, Shanxi Huaxiang, Palantir, Chengda Biotechnology (STAR Market, in the registration stage of the China Securities Regulatory Commission) has successively landed in domestic and foreign capital markets. Nearly 20 projects are withdrawing through transfers and other means. Over 10 projects are in the IPO substantive preparation stage. In addition, CloudWalk Technology, Tencent Trusted Doctor, Telink Microelectronics, etc. The project successfully completed the next round of financing. In the secondary business, we acquired the control of Kangyue Technology, a listed company, and invested with the vision of the industry. We are building a big health industry platform through mergers and acquisitions and reorganizations; we focus on the rescue business of listed companies and focus on intensive cultivation.


The fear in early 2020 has disappeared, but the scene of the whole company's colleagues working together to fight the epidemic is still vivid. Together with portfolio companies such as Changjiang Pharmaceutical, Carefree, Kyee, Senyint International, TRANSN IOL Technology, and IIE Star Entertainment, we are working hard to assume corporate social responsibility in different roles and in different ways. From the global search for protective equipment to the front lines to overtime production of anti-epidemic materials, to careful preparation of vaccine production, everyone's efforts have merged into the tide of the times. Every time I remember this, I can't help crying. We are powerless to stop all the sudden emergence, nor can we avoid short-term wandering struggles, but with hope, we must go far.




2021 is the starting point for the next decade of China's capital market. In the process of marketization, legalization, and internationalization, recovery, reform and opportunities are the keywords. Unprecedented liquidity easing, the US election dust has landed, the new crown vaccine has achieved a breakthrough, and the uncertainty of the global economy is gradually decreasing. China is ushering in the historical convergence period of the "two centuries" and is relying on reforms to respond to changes and open up new situations. During the period of the "14th Five-Year Plan" strategic opportunity, the process of forging and making up for the weaknesses of the industrial chain will give birth to numerous opportunities. The Chinese stock market has entered a bull market, and the golden decade of equity investment has arrived. Innovative assets will continue to change, core assets will diverge, and distressed assets will gradually deepen.


The golden decade of investment has come, innovative assets will continue to change, core assets will diverge, and distressed assets will gradually deepen. At the starting point of the Golden Decade, we will continue to build our core competitiveness and comprehensively improve fundraising, investment, management, and retirement. In terms of fundraising, we will actively seize the policy opportunities of long-term capital entering the market, and join hands with commercial banks, insurance companies, local governments, industrial capital, etc., to successively launch the Prosperity China Technology, Intelligent Manufacturing, Health, Consumer Industry Fund and Fixed Growth Fund, further Promote the landing of new local government funds. In terms of investment, we will further deepen the industry chain, do more solid research along the established track, look for small giants in the new blue ocean with a mid to long term perspective, and explore new core assets in the future from innovative assets. The upgrade of all investment models is based on the industry, and grasping assets with "vitality" is where our "vitality" lies.


We will also continue to deepen the business of rescued mergers and acquisitions by listed companies, ride the wind and waves, overcome obstacles, and achieve decisive progress in key projects as soon as possible. In terms of post-investment management, we will do our utmost to continue to be responsible for investors, empower the invested companies, provide professional support to companies in business development, talent incentives, securitization arrangements, etc., and actively inject new ideas into old partners. Energetic, fortunate to walk together, and sincerely treat. In terms of exit, the long-awaited IPO registration system and the relaxation of mergers and acquisitions and reorganizations have come as scheduled. We should ride the express train of the times to help investee companies grow bigger and stronger through the capital market as soon as possible, and achieve rapid growth in investor wealth.


Talents are the foundation of a career, and cadres are the key to success. We will more closely integrate first- and second-level, domestic and foreign teams, and warmly welcome ideal partners to join, and the right people, walk the right way and do the right thing.


Dear fellows, in the big cycle of the capital market, we have experienced ups and downs, missed them, misunderstood them, we had to ask for it, and we had to give up. To achieve business success, we must continue to innovate, not forget the past, live up to the present, and embrace the future.


In the field of hope, let us move towards our ideals together, run hard through the mud, and pursue our own answers.

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