Fosun Chuang Cong Yongzheng: EVC Investment, use the "Group Army" resources to achieve the efficiency of "scouts"

In the next 10 years, we must face increasing difficulties, which will make today's investment institutions turn the original "personal hero" to turn into a highly organized, institutionalized, and ecologicalization. overall. Future investment must be a systematic formal army group.

China in 2021, in a new pulse of the old casting, the national strength is unprecedentedly high. At the same time, 8.1%of economic growth has been achieved under the severe situation of world economic growth, increasing international economic and trade frictions, and the severe situation of the epidemic, and the Chinese economy still plays the role of the "leaders" of the world economic recovery.

From August 17-18, 2022, the 2022 (eighth) China Industrial Investment Summit co-organized by Rongzhong Media and co-organized by China, Rongzhong Finance, and Rongzhong Mother Fund Research Institute was grandly held. The summit focuses on industrial investment, chip semiconductors, integrated circuits, corporate services, specialized new, biomedicine, high -end manufacturing, new consumption, medical great health and other fields. The summit brings together many venture capital institutions, industrial capital, and governments to jointly analyze the depth of the industry and explore the trend of industrial investment. Stability of progress, keeping positive innovation, and proposing the reform and development of China's industries.

Cong Yongzheng, chairman and management partner of Fosun Global Partners, Zujun Chuangfu's rotating chairman and management partner, delivered a on -site keynote speech, deeply interpreting the system and practice of EVC investment.

He mentioned that in China, investment opportunities have become the speed of market consensus very fast. GP is also very rolled, it is difficult to achieve cyclical investment opportunities in the units of the year earlier than others. Good projects must have the ability to quickly win. Therefore, we must have the ethics and fast internal decision -making system for obtaining the subject. And the top -down recycling research capabilities have been constructed, and constantly updating the Fosun's complete investment system, which finally enables Fosun Chuangfu to do one thing -refers to wherever you hit, where you see where you have a chance, and wherever you see. This way of fighting is described by a metaphor -the resources of the group army achieve the efficiency of scouts.

Combined with Fosun's investment philosophy, investing in investment must do the right thing, rare things, and things that need time to accumulate, rather than blind capital expansion. The original personalization method should be transformed into organizational and ecological play. Future investment must be a systematic "group army" play.

The following is a wonderful content of the guests' on -site speech.

Cong Yongzheng: Good afternoon, my theme of my speech today is "The integration of the knowledge and action, the deeds to the far away -the system and practice of the EVC investment".

In the past year in the past year, we found that a very interesting phenomenon is that there are fewer and fewer differences in peers, and more and more consensus. In the past, during the business model investment period, there were sometimes controversial projects of "invisible, unable to understand, and unable to keep up", but everyone was more and more consistent with the quality of the project. For how to build an investment team, the idea is becoming more and more consistent.

At this time, "knowing" is no longer a big problem. "Xing" is the most difficult point in the real landing. Everyone saw the opportunity and the risk. How to re -adjust the organizational system of equity investment institutions under the opportunity and risk balance in the new period?

Faced with new opportunities, Fosun proposed an EVC play.

The so -called EVC refers to an industrial ecological equity investment module.

In the past ten years, the biggest opportunity is the mobile Internet. This wave has entered a stable period with the development of the demographic dividend. In the next ten years, it is more "early, small investment", and vote for "specialty new". However, in the past ten years, twenty or thirty projects have been invested in the fund portfolio, and one or two projects may be able to bring back the entire fund. Such opportunities will still exist in the next ten years, but the probability of it will gradually become lower.

For institutions, the pursuit is actually accuracy. It is necessary to continue to find more and more subdivided discipline investment with mainstream investment such as science and technology innovation, intelligent manufacturing, medical and health. This is very different from before.

For investors, the "10,000 -hour principle" that often said before may be built at 8,000 hours to build underlying capabilities, and the professional capabilities in the segments in 2000 hours. In the early days, we often see that the model of many companies may be the same, the stage is similar, and the technical barriers do not exist. Therefore, the key to institutions is to learn and understand more accurate tracks. For institutions, how to build a suitable team and organization to complete the big investment? This is a challenge facing all GP.

For Fosun, the way we choose is the system of building an industrial ecology, including the inner brain and the external brain.

Fosun has developed for 30 years today, involving the four major industrial sectors of "Happy, Health, Rich, and Intelligent Manufacturing", which involves health tracks, intelligent manufacturing, and finance. Fosun Chuangfu focuses on the intelligent manufacturing of new materials, digital economy and large consumption, big health and new generation of information technology, which has built our own industrial cluster, so that we have a good management and operation of investment targets. Empowerment ability.

First of all, the best reflection of the inner brain ability is to help enterprises do the industry.

Today, China's economic structure has strong regional attributes, and GP must have industrial landing capabilities. The essence of GP is a service agency. Our customers are actually two categories: one is the investment enterprise, and it is necessary to provide corporate services for it; the other is LP, and it is also necessary to provide corporate services. For the former, a series of services in enterprise development, personal growth of entrepreneurs, organizational growth, and industrial collaboration. For LP, such as the government, I also hope to help China Merchants and the industry. Fosun has come over for so many years and has always grabbed two "wheels": industrial operations and industrial investment, two -wheel drive.

For example, when entering an industry, judge the future space of the industry by investment. Once you enter, you must use the "operation" wheel to help the enterprise grow and deepen, and make the long -term value of the enterprise. At the same time, Fosun has deployed a number of listed companies in the four major tracks. In terms of industrial collaboration, it is possible to achieve the integration of knowledge and action. It's easy to talk about this, and it is not easy to do. Therefore, for many years, we have been trying to open the key points at the execution level by building the management method of industrial clusters.

From the perspective of the kernel, Fosun's investment capabilities are composed of four capabilities: 3 B and 1 i, respectively. 3 B are BUY (mergers and acquisitions), Born (incubation), BD (industrial empowerment and development), and Investment. For example, the intelligent manufacturing industry cluster, which currently involves industrial robots, autonomous driving, automotive electronics, new energy, including electrolytes and diaphragm materials. The investment was finally precipitated to Fosun Global Industrial Research Institute. This is a top -down investment research method.

In fact, Fosun has gradually constructed the management system of five industrial clusters since 2020, and simultaneously constructed Fosun Global Industrial Research Institute. What does Fosun Global Industrial Research Institute do? We are building three internal brains and a set of external brains.

The so -called inner brain is the three -layer research system:

The first -level research system is called a macro research system, including the future price trend of large commodities in the world, including macro research at the level of currency, interest rates, and exchange rates. For example, how does the US chip bill affect the entire global semiconductor company? These have a strong macro characteristics and have a certain understanding of the entire economic form.

The second floor, the research of the middle viewing industry, the industrial capacity of the clusters of various industries. For example, intelligent manufacturing and medical and health have accumulated a lot of expert system knowledge in industrial operations. This research system must be further precipitated to the research institute.

The third layer, a micro research system, research on the trails and specific target companies.

In this way, the top -down recycling research capabilities are constructed, and the complete investment system of Fosun has continuously updated, and eventually enables us to do one thing -which means to fight, not to play. When you see wherever you have a chance, you can run over, instead of finding a project, and find a research system based on the project, which is an inefficient research system.

The constructed play is described by a metaphor -the efficiency of "scouts" with the "Group Army" resources.

In China, a new investment opportunity has become a very fast speed of market consensus. The GP industry is very "volume", it is difficult to achieve the year -old unit or even quarterly, and earlier discovered new high -quality investment opportunities than others. Good projects must have the ability to quickly win. Therefore, we must have sufficient efficiency -to obtain the keen and internal decision -making system. However, the efficiency of decision -making is contradictory with the knowledge system and professional research depth. To balance this, we need to build a sufficiently strong ecology to increase our system that quickly gains knowledge and professional ability.

For Fosun, every industrial employee may help the investment team to discover the target and verify the target. In this way, investment has become an organic whole, and nearly a hundred investment staff of Fosun Chuangfu will help complete investment transactions. This incident needs to be opened from the incentive layer of Fosun. Everyone's common interests first, and everyone has the opportunity to get the project income of investment. In this way, we can dig a good project below the water earlier in order to have stronger empowerment capabilities, plus a diversified exit channel, and a better research system. Incubation and VC/PE methods to create a complete EVC investment system.

Finally, summarize Fosun's investment philosophy.

Fosun has been emphasizing one thing for 30 years: to do the right thing, difficult things, and what they need to accumulate. Because in the next 10 years, we must face increasing difficulties, which also makes today's investment institutions turn the original personal play into a highly organized, institutionalized, and ecological whole.

Future investment must be a systematic formal army group.

Fosun's assets are more than 800 billion yuan, and many of the listed companies, holding companies, and tens of thousands of employees have formed a solid "group army" base. At the same time, Fosun Chuangfu combined with the foreign brain expert system in the market to jointly build an organization, allowing us to better catch early high -quality targets in the market and grab the targets that can achieve greater returns. At the same time, through these targets, the needs of LP on the level of financial, industrial collaboration, and government investment.

Do the right thing, difficult things and time to accumulate. The above is also our sharing of EVC today, thank you all!

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